Company: NEWTP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001587987-25-000141
Chunk: 302

Company: NewtekOne, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 302
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30,20252024ChangeNet interest income after provision for credit losses$5,234 $8,218 $(2,984)Noninterest income108,673 101,387 7,286 Noninterest expense83,486 81,723 1,763 Net income before taxes30,421 27,882 2,539 Income tax expense7,351 7,287 64 Net income$23,070 $20,595 $2,475 

Net Interest Income

Six Months Ended June 30,20252024ChangeInterest incomeDebt securities available-for-sale$490 $834 $(344)Loans and fees on loans67,837 51,758 16,079 Other interest earning assets6,081 3,828 2,253 Total interest income74,408 56,420 17,988 Interest expenseDeposits19,202 12,441 6,761 Notes and securitizations21,882 21,945 (63)Bank and FHLB borrowings5,468 4,002 1,466 Total interest expense46,552 38,388 8,164 Net interest income27,856 18,032 9,824 Provision for credit losses22,622 9,814 12,808 Net interest income after provision for credit losses$5,234 $8,218 $(2,984)

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 $179.7 million as of June 30, 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.

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Interest Income

Loans and fees on loans: The $16.1 million increase in interest income on the Company’s loan portfolio was attributable to increases in the average balances of loans HFI and HFS, which increased $199.3 million and $167.3 million, respectively, as well as the average outstanding accrual portfolio of loans held for investment increasing to $1.4 billion from $1.