Company: NEWTP
Filing Date: 2025-08-15
Form Type: 424B2
Source: 0001587987-25-000152
Chunk: 14

Company: NewtekOne, Inc.
Filing Date: 2025-08-15
Form: 424B2
Chunk 14
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 result, its ability to pay dividends on the Preferred Stock (and therefore the ability of the holders of the depositary shares to receive corresponding distributions on their depositary shares) will depend primarily upon the receipt of dividends and other distributions from the Company’s subsidiaries. If the Company does not receive sufficient cash dividends and other distributions from its subsidiaries, it is unlikely that the Company will have sufficient funds to pay dividends on the Preferred Stock (and the holders of the depositary shares would not receive corresponding distributions on their depositary shares).

The Company’s subsidiaries are separate and distinct legal entities and the Preferred Stock is not guaranteed by any of the Company’s subsidiaries. As a result, the Preferred Stock will be structurally subordinated to all existing and future liabilities and obligations of the Company’s subsidiaries.

The Company’s subsidiaries have no obligation to pay any dividends on the Preferred Stock or to provide the Company with funds to pay dividends on the Preferred Stock, whether by dividends, distributions, loans or other payments and their ability to make any such dividends, distributions, loans or other payments is in the first instance dependent on their results of operations. In addition, the Company’s subsidiaries may incur indebtedness and the terms of such indebtedness may restrict such subsidiary’s ability to make, and/or require sufficient earnings prior to making, dividend payments, distributions, loans or advances to the Company. There are also various regulatory restrictions on the ability of Newtek Bank to pay dividends or make other payments to the Company, including those contained in Newtek Bank’s operating agreement with the OCC. See “Item 1. Business—Regulation and Supervision” in the Company’s 2024 Annual Report on Form 10-K incorporated by reference in this prospectus supplement for a discussion of regulatory and other restrictions on dividend declarations. These and other limitations on the Company’s ability to receive dividend payments, distributions, loans or advances from its subsidiaries could have a material adverse effect on its liquidity and its ability to pay dividends on the Preferred Stock (and therefore the ability of the holders of the depositary shares to receive corresponding distributions on their depositary shares).

Dividends on the Preferred Stock are non-cumulative and discretionary. If the Company does not declare dividends on the Preferred Stock, holders of the depositary shares will not be entitled to receive related distributions on their depositary shares.

Dividends on the Preferred Stock are non-cumulative and discretionary. Consequently, if the Board does not authorize and declare a dividend for any dividend period, holders of the Preferred Stock, and therefore the holders of the