Company: NEWTP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050582
Chunk: 99

Company: NewtekOne, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 99
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 net income of $32.5 million, or $1.26 per basic and diluted share, for the nine months ended September 30, 2024. 

The net increase in net income before taxes was due to a $23.9 million increase of interest income on loans, and a $15.8 million increase in noninterest income, partially offset by a $13.6 million increase of provision for credit losses, a $10.3 million increase of interest expense on deposits. Below is a summary of changes in the components of Net income:

Nine Months Ended September 30,20252024ChangeNet interest income after provision for credit losses$12,071 $12,271 $(200)Noninterest income169,061 153,238 15,823 Noninterest expense125,645 120,570 5,075 Net income before taxes55,487 44,939 10,548 Income tax expense14,516 12,410 2,106 Net income$40,971 $32,529 $8,442 

Net Interest Income

Nine Months Ended September 30,20252024ChangeInterest incomeDebt securities available-for-sale$690 $1,168 $(478)Loans and fees on loans104,213 80,346 23,867 Other interest earning assets8,599 6,177 2,422 Total interest income113,502 87,691 25,811 Interest expenseDeposits30,081 19,755 10,326 Notes and securitizations32,592 33,427 (835)Bank and FHLB borrowings8,424 5,496 2,928 Total interest expense71,097 58,678 12,419 Net interest income42,405 29,013 13,392 Provision for credit losses30,334 16,742 13,592 Net interest income after provision for credit losses$12,071 $12,271 $(200)

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 $187.7 million as of September 30, 2025, as opposed to long-term investments. In addition, Newtek Bank management continues to closely monitor market conditions with