Company: NEWTP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050582
Chunk: 105

Company: NewtekOne, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 105
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 months ended September 30,2025/2024 Increase/(Decrease)20252024AmountPercentDividend income$2,711 $1,128 $1,583 140.3 %Net loss on loan servicing assets(12,500)(5,383)(7,117)132.2 Servicing income17,655 14,922 2,733 18.3 Net gains on sales of loans38,050 68,531 (30,481)(44.5)Net gain on residuals in securitizations30,015 — 30,015 100.0 Net gain (loss) on loans under the fair value option35,566 (4,181)39,747 (950.7)Technology and IT support income— 14,255 (14,255)(100.0)Electronic payment processing income33,401 35,409 (2,008)(5.7)Other noninterest income24,163 28,557 (4,394)(15.4)  Total noninterest income$169,061 $153,238 $15,823 10.3 %

Dividend Income

For the nine months ended September 30, 2025 and 2024, dividend income was dependent on the earnings of our joint ventures.

79

Net Loss on Loan Servicing Assets

The Company accounts for servicing assets in accordance with ASC Topic 860-50 - Transfers and Servicing - Servicing Assets and Liabilities. The Company earns servicing fees from the guaranteed portions of SBA 7(a) loans it originates and sells, from the SBA 7(a) loan securitizations sponsored by NSBF, and from servicing the ALP portfolios in securitizations sponsored by NCL JV (terminated in August 2025), TSO JV and Newtek ALP Holdings. Servicing assets for loans originated by the Company’s nonbank subsidiaries are measured at FV at each reporting date and the Company reports changes in the FV of servicing assets in earnings in the period in which the changes occur. The valuation model for servicing assets incorporates assumptions including, but not limited to, servicing costs, discount rate, prepayment rate, and default rate. Considerable judgment is required to estimate the fair value of servicing assets and, as such, these assets are classified as Level 3 in our fair value hierarchy. Servicing assets for loans originated by Newtek