Company: NEWTP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050582
Chunk: 173

Company: NewtekOne, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 173
---
 liabilities1,656,944 71,097 5.74 1,190,198 58,678 6.59 Noninterest-bearing deposits— 9,511 Noninterest-bearing liabilities80,167 64,675 Shareholders’ equity295,420 257,081 Total liabilities and shareholders' equity$2,032,531 $1,521,465 Net interest income and interest rate spread$42,405 2.44 %$29,013 2.21 %Net interest margin3.06 %2.91 %Ratio of average interest-earning assets to average interest bearing liabilities111.96 %111.84 %

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 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. The increase in the average balance of loans HFS was attributable to originations of SBA 504, SBA 7(a) and ALP loans, and the increase in the average outstanding accrual loan portfolio resulted from the origination of new SBA 7(a) loans period over period.

78

Rate/Volume Analysis

The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, increases or decreases attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.

Nine Months Ended September 30,2025 vs. 2024Increase (Decrease) Due toRateVolumeTotalInterest income:Other interest-earning assets$(2,074)$4,496 $2,422 Investment securities1 (479)(478)Loans held for sale(3,541)17,146 13,605