Company: NEWTP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001587987-25-000141
Chunk: 114

Company: NewtekOne, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 114
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 under the fair value option for the three months ended June 30, 2025 and 2024 were as follows:

For the three months endedJune 30, 2025June 30, 2024ChangeSBA 7(a) Unguaranteed Loans$(2,767)$(3,788)$1,021 SBA 7(a) Guaranteed Loans10,631 13 10,618 SBA 504 and Non-SBA Loans(19,625)881 (20,506)Net Gain (Loss) on Loans Accounted for Under the Fair Value Option$(11,761)$(2,894)$(8,867)

Net unrealized gain (loss) on loans accounted for under the fair value option relates to the guaranteed portions of SBA loans made which the Company sells into a secondary market, the unguaranteed portions of SBA loans made which the Company holds, SBA 504 loans that are HFS, and ALP loans that are held for sale. This unrealized gain (loss) represents the fair value adjustment of loans. The amount of the unrealized gain (loss) is determined by the quantity of loans held for sale at quarter end, the change in secondary market pricing conditions, and the valuation of the loans that are not held for sale. 

During the three months ended June 30, 2025 and 2024, the Company recorded unrealized losses on SBA 7(a) unguaranteed loans accounted for under the fair value option as the portfolio paid down. During the three months ended June 30, 2024, the Company recorded unrealized gains on SBA 7(a) guaranteed loans accounted for under the fair value option primarily due to holding guaranteed portions of SBA 7(a) loans for longer periods of time.

The $20.5 million decrease in unrealized gain on loans accounted for under the fair value option from SBA 504 and Non-SBA loans is primarily volume driven from the reversal of the previous gains on ALP loans to consummate the NALP 2025-1 transaction as noted above.

Technology and IT Support Income

Technology and IT support income was $5.2 million for the three months ended June 30, 2024. There was no Technology and IT support income for the three months ended June 30, 2025, due to the sale of NTS. Refer to NOTE 4—INVESTMENTS: Intelligent Protection Management Corp.

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