Company: NEWTP
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001587987-25-000084
Chunk: 160

Company: NewtekOne, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 160
---
$403 1.35 %$18,730 $29 0.62 %Savings and NOW402,834 4,278 4.31 251,766 3,163 5.05 Money Market36,630 393 4.35 16,868 198 4.72 Time407,353 4,771 4.75 177,985 2,186 4.94 Total deposits967,974 9,845 4.12 465,349 5,576 4.82 Borrowings712,518 14,112 8.03 636,523 12,585 7.95 Total interest-bearing liabilities1,680,492 23,957 5.78 1,101,872 18,161 6.63 Noninterest-bearing deposits— 202 Noninterest-bearing liabilities118,525 61,649 Shareholders’ equity299,308 237,831 Total liabilities and shareholders' equity$2,098,325 $1,401,554 Net interest income and interest rate spread$13,933 2.48 %$8,906 2.25 %Net interest margin3.04 %2.92 %Ratio of average interest-earning assets to average interest bearing liabilities110.70 %111.23 %

In response to market conditions and consistent with its business plan, Newtek Bank has been focused on increasing its liquidity position by raising additional deposits and maintaining a significant portion of its liquidity in the form of cash held at the Federal Reserve, approximately $259.3 million as of March 31, 2025, as opposed to long-term investments. In addition, Newtek Bank management continues to closely monitor market conditions with a focus on its asset liability management policies, as well as closely monitoring, among other things, capital levels, to ensure compliance with regulatory guidelines and the OCC Operating Agreement. The increase in the average balance of loans HFS was attributable to originations of SBA 504, SBA 7(a) and ALP loans, and the increase in the average outstanding accrual loan portfolio resulted from the origination of new SBA 7(a) loans period over period.

66

Rate/Volume Analysis

The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied