# EDGAR Filing Document

**Accession Number:** 0001587987
**File Stem:** 0001587987-26-000004
**Filing Date:** 2026-5
**Character Count:** 391419
**Document Hash:** 3f378520bc81951254c8c1cba0bb380c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001587987-26-000004.hdr.sgml**: 20260508

**ACCESSION NUMBER**: 0001587987-26-000004

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 140

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260508

**DATE AS OF CHANGE**: 20260508

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NewtekOne, Inc.
- **CENTRAL INDEX KEY:** 0001587987
- **STANDARD INDUSTRIAL CLASSIFICATION:** NATIONAL COMMERCIAL BANKS [6021]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 463755188
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36742
- **FILM NUMBER:** 26958140

**BUSINESS ADDRESS:**
- **STREET 1:** 4800 T REX AVENUE
- **STREET 2:** SUITE 120
- **CITY:** BOCA RATON
- **STATE:** FL
- **ZIP:** 33431
- **BUSINESS PHONE:** 212-356-9500

**MAIL ADDRESS:**
- **STREET 1:** 4800 T REX AVENUE
- **STREET 2:** SUITE 120
- **CITY:** BOCA RATON
- **STATE:** FL
- **ZIP:** 33431

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Newtek Business Services Corp.
- **DATE OF NAME CHANGE:** 20130930

?xml version='1.0' encoding='ASCII'? newt-20260331

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q** 

&nbsp;&nbsp;&nbsp;&nbsp;

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended March 31, 2026

OR

□ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from _____to____**_**

**Commission file number: 814-01035**

**NEWTEKONE, INC.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Maryland** | **46-3755188** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| **4800 T Rex Avenue, Suite 120, Boca Raton, Florida** | **33431** |
| (Address of principal executive offices) | (Zip Code) |

---

**<u>(212) 356-9500</u>**

(Registrant's telephone number, including area code)

**<u>Not Applicable</u>**

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.02 per share | NEWT | Nasdaq Global Market LLC |
| 8.00% Notes due 2028 | NEWTI | Nasdaq Global Market LLC |
| 8.50% Notes due 2029 | NEWTG | Nasdaq Global Market LLC |
| 8.625% Notes due 2029 | NEWTH | Nasdaq Global Market LLC |
| 8.50% Notes due 2031 | NEWTO | Nasdaq Global Market LLC |
| Depositary Shares, each representing a 1/40th interest in a share of 8.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B | NEWTP | Nasdaq Global Market LLC |

---

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ⌧ No ◻

------

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | □ | Accelerated Filer | ⌧ |
| Non-accelerated filer | □ | Smaller reporting company | □ |
| | | Emerging growth company | □ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial or accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ◻ No ⌧

As of May 7, 2026, there were 28,858,921 shares outstanding of the registrant's Common Stock, par value $0.02 per share.

------

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **<u>Page</u>** |
| | <u>[Defined Terms](#i2582aed425bc4584a92e9573cb32abee_31)</u> | [4](#i2582aed425bc4584a92e9573cb32abee_31) |
| **<u>[PART I - FINANCIAL INFORMATION](#i2582aed425bc4584a92e9573cb32abee_1039)</u>** | **<u>[PART I - FINANCIAL INFORMATION](#i2582aed425bc4584a92e9573cb32abee_1039)</u>** | **<u>[PART I - FINANCIAL INFORMATION](#i2582aed425bc4584a92e9573cb32abee_1039)</u>** |
| Item 1. | <u>[Financial Statements:](#i2582aed425bc4584a92e9573cb32abee_1042)</u> |  |
|  | <u>[Consolidated Statements of Financial Condition as of March 31, 2026 (Unaudited) and December 31, 2025](#i2582aed425bc4584a92e9573cb32abee_526)</u> | [7](#i2582aed425bc4584a92e9573cb32abee_526) |
|  | <u>[Consolidated Statements of Income for the three](#i2582aed425bc4584a92e9573cb32abee_529)[mont](#i2582aed425bc4584a92e9573cb32abee_529)[hs](#i2582aed425bc4584a92e9573cb32abee_529)[ended](#i2582aed425bc4584a92e9573cb32abee_529)[March 31, 2026](#i2582aed425bc4584a92e9573cb32abee_529)[and 202](#i2582aed425bc4584a92e9573cb32abee_529)[5](#i2582aed425bc4584a92e9573cb32abee_529)</u> <u>[(Unaudited)](#i2582aed425bc4584a92e9573cb32abee_529)</u> | [9](#i2582aed425bc4584a92e9573cb32abee_529) |
|  | <u>[Consolidated Statements of Comprehensive Income for the three](#i2582aed425bc4584a92e9573cb32abee_532)[months ended](#i2582aed425bc4584a92e9573cb32abee_532)[March 31, 2026](#i2582aed425bc4584a92e9573cb32abee_532)[and 202](#i2582aed425bc4584a92e9573cb32abee_532)[5](#i2582aed425bc4584a92e9573cb32abee_532)[(Unaudited)](#i2582aed425bc4584a92e9573cb32abee_532)</u> | [10](#i2582aed425bc4584a92e9573cb32abee_532) |
|  | <u>[Consolidated Statements of Changes in Shareholders' Equity for the three months ended March 31, 2026 and 2025](#i2582aed425bc4584a92e9573cb32abee_1024)</u> (<u>[(Unaudited)](#i2582aed425bc4584a92e9573cb32abee_1024)</u> | [11](#i2582aed425bc4584a92e9573cb32abee_1024) |
|  | <u>[Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025](#i2582aed425bc4584a92e9573cb32abee_544)</u> <u>[(Unaudited)](#i2582aed425bc4584a92e9573cb32abee_544)</u> | [13](#i2582aed425bc4584a92e9573cb32abee_544) |
|  | <u>[Notes to Consolidated Financial Statements (Unaudited)](#i2582aed425bc4584a92e9573cb32abee_547)</u> | [15](#i2582aed425bc4584a92e9573cb32abee_547) |
| Item 2. | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i2582aed425bc4584a92e9573cb32abee_166)</u> | [61](#i2582aed425bc4584a92e9573cb32abee_166) |
| Item 3. | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i2582aed425bc4584a92e9573cb32abee_445)</u> | [89](#i2582aed425bc4584a92e9573cb32abee_445) |
| Item 4. | <u>[Controls and Procedures](#i2582aed425bc4584a92e9573cb32abee_463)</u> | [92](#i2582aed425bc4584a92e9573cb32abee_463) |
| **<u>[PART II - OTHER INFORMATION](#i2582aed425bc4584a92e9573cb32abee_1147)</u>** | **<u>[PART II - OTHER INFORMATION](#i2582aed425bc4584a92e9573cb32abee_1147)</u>** | **<u>[PART II - OTHER INFORMATION](#i2582aed425bc4584a92e9573cb32abee_1147)</u>** |
| Item 1. | <u>[Legal Proceedings](#i2582aed425bc4584a92e9573cb32abee_139)</u> | [93](#i2582aed425bc4584a92e9573cb32abee_139) |
| Item 1A. | <u>[Risk Factors](#i2582aed425bc4584a92e9573cb32abee_1150)</u> | [93](#i2582aed425bc4584a92e9573cb32abee_1150) |
| Item 2. | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i2582aed425bc4584a92e9573cb32abee_151)</u> | [93](#i2582aed425bc4584a92e9573cb32abee_151) |
| Item 3. | <u>[Defaults Upon Senior Securities](#i2582aed425bc4584a92e9573cb32abee_1153)</u> | [93](#i2582aed425bc4584a92e9573cb32abee_1153) |
| Item 4. | <u>[Mine Safety Disclosures](#i2582aed425bc4584a92e9573cb32abee_142)</u> | [93](#i2582aed425bc4584a92e9573cb32abee_142) |
| Item 5. | <u>[Other Information](#i2582aed425bc4584a92e9573cb32abee_475)</u> | [93](#i2582aed425bc4584a92e9573cb32abee_475) |
| Item 6. | <u>[Exhibits](#i2582aed425bc4584a92e9573cb32abee_1156)</u> | [94](#i2582aed425bc4584a92e9573cb32abee_1156) |
|  | <u>[Signatures](#i2582aed425bc4584a92e9573cb32abee_508)</u> | [95](#i2582aed425bc4584a92e9573cb32abee_508) |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**Defined Terms**

We have used "we," "us," "our," "our company," and "the Company" to refer to NewtekOne, Inc. and its subsidiaries in this report. We also have used several other terms in this report, which are explained or defined below:

---

| | |
|:---|:---|
| **Terms** | |
| 1940 Act | Investment Company Act of 1940, as amended |
| 2021-1 Trust | Newtek Small Business Loan Trust, Series 2021-1 |
| 2022-1 Trust | Newtek Small Business Loan Trust, Series 2022-1 |
| 2023-1 Trust | Newtek Small Business Loan Trust, Series 2023-1 |
| 2025-1 Trust | NALP Business Loan Trust, Series 2025-1 |
| 2026-1 Trust | NALP Business Loan Trust, Series 2026-1 |
| Unconsolidated Trusts | Collectively, the 2025-1 Trust and 2026-1 Trust |
| 2024 Notes | 5.75% Notes due 2024, matured August 1, 2024 |
| 2025 5.00% Notes | 5.00% Notes due 2025, matured March 31, 2025 |
| 2025 8.125% Notes | 8.125% Notes due 2025, exchanged for 2027 Notes |
| 2025 Notes | Collectively, the 2025 5.00% Notes and 2025 8.125% Notes |
| 2026 Notes | 5.50% Notes due 2026, matured February 1, 2026 |
| 2027 Notes | 8.125% Notes due 2027 |
| 2028 Notes | 8.00% Notes due 2028 |
| 2029 8.50% Notes | 8.50% Notes due 2029 |
| 2029 8.625% Notes | 8.625% Notes due 2029 |
| 2029 Notes | Collectively, the 2029 8.50% Notes and 2029 8.625% Notes |
| 2030 Notes | 8.375% Notes due 2030 |
| 2031 Notes | 8.50% Notes due 2031 |
| 2033 Notes | 8.375% Notes due 2033 |
| ABL | Asset based lending |
| ACL | Allowance for credit losses |
| Acquisition | The Company's Acquisition of NBNYC, pursuant to which the Company acquired from the NBNYC shareholders all of the issued and outstanding stock of NBNYC |
| ALP | Alternative Lending Program |
| ASC | Accounting Standards Codification, as issued by the FASB |
| ASU | Accounting Standards Updates, as issued by the FASB |
| Original ATM Equity Distribution Agreement | The Original ATM Equity Distribution Agreement, dated November 17, 2023, by and among the Company and the placement agents |
| Amended and Restated Equity Distribution Agreement | The Amended and Restated Equity Distribution Agreement, dated June 6, 2025, by and among the Company and the placement agents |
| BDC | Business Development Company under the 1940 Act |
| BHCA | Bank Holding Company Act of 1956 |
| Board | The Company's board of directors |
| Capital One | Capital One Bank, National Association |
| C&I | Conventional commercial and industrial loans |
| C&I LA | Long amortizing C&I loans, also known as ALP loans |
| Code | Internal Revenue Code of 1986, as amended |
| CODM | Chief Operating Decision Maker |
| CRE | Commercial real estate |
| Deutsche Bank | Deutsche Bank AG |
| EBITDA | Earnings before interest, taxes, depreciation and amortization |
| ESPP | Employee Stock Purchase Plan |
| Exchange Act | Securities Exchange Act of 1934, as amended |
| FASB | Financial Accounting Standards Board |
| Federal Reserve | Board of Governors of the Federal Reserve System |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | |
|:---|:---|
| FDIC | Federal Deposit Insurance Corporation |
| FV | Fair Value |
| HFI | Held for investment |
| HFS | Held for sale |
| LCM | Lower of amortized cost basis or fair value |
| LTV | Loan-to-Value |
| NAV | Net Asset Value |
| NBNYC | National Bank of New York City, renamed Newtek Bank, National Association |
| NOO | Non-owner occupied |
| OCC | Office of the Comptroller of the Currency |
| PCD | Purchased Financial Assets with Credit Deterioration |
| PLP | Preferred Lenders Program, as authorized by the SBA |
| RIC | Regulated investment company under the Code |
| S&P | Standard and Poor's |
| SBA | United States Small Business Administration |
| SEC | U.S. Securities and Exchange Commission |
| SMB | Small-and-medium sized businesses; revenue from $1.0 million to $100.0 million |
| SOFR | Secured Overnight Financing Rate |
| Trustee | U.S. Bank, National Association |
| TSO II | TSO II Booster Aggregator, L.P. |
| U.S. GAAP or GAAP | Generally accepted accounting principles in the United States |
| VIE | Variable Interest Entity |
| Webster | Webster Bank, N.A. |
| **Bank borrowings** | **Collectively, the below facilities:** |
| NMS Goldman Facility | Revolving Credit and Guaranty Agreement between NMS and its wholly-owned subsidiary, Mobil Money, LLC, together with NBSH Holding, LLC, the direct sole member of NMS |
| SPV I Capital One Facility | Revolving Credit and Security Agreement between NBL SPV I, LLC, a wholly-owned subsidiary of NALH, and Capital One (terminated March 25, 2026) |
| SPV II Deutsche Bank Facility | Revolving Credit and Security Agreement between NBL SPV II, LLC, a wholly-owned subsidiary of NALH, and Deutsche Bank |
| SPV III One Florida Bank Facility | Revolving Credit and Security Agreement between NBL SPV III, LLC, a wholly-owned subsidiary of NALH, and One Florida Bank |
| **Consolidated Subsidiaries, Joint Ventures and Other Investments** | **Consolidated Subsidiaries, Joint Ventures and Other Investments** |
| NSBF | Newtek Small Business Finance, LLC |
| NCL | Newtek Commercial Lending, Inc., a former wholly-owned subsidiary of NewtekOne Inc., merged into NALH on May 13, 2025 |
| Newtek Bank | Newtek Bank, National Association |
| NALH or Newtek ALP Holdings  | Newtek Business Services Holdco 6, Inc. |
| NMS | Newtek Merchant Solutions, LLC, a wholly-owned subsidiary of NBC |
| Mobil Money | Mobil Money, LLC, a wholly-owned subsidiary of NMS |
| NTS | Newtek Technology Solutions, Inc., a former wholly-owned subsidiary of the Company, sold to IPM on January 2, 2025 |
| NBC | CDS Business Services, Inc. dba Newtek Business Credit Solutions |
| SBL | Small Business Lending, LLC, a wholly-owned subsidiary of Newtek Bank |
| PMT | PMTWorks Payroll, LLC, dba Newtek Payroll and Benefits Solutions |
| NIA | Newtek Insurance Agency, LLC |
| TAM | Titanium Asset Management, LLC |
| POS | POS on Cloud, LLC, dba Newtek Payment Systems, a 95.49% owned consolidated subsidiary |
| NCL JV | Newtek Conventional Lending, LLC, a former 50% owned joint venture, 100% Company owned as of August 27, 2025 and dissolved on September 30, 2025 |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | |
|:---|:---|
| TSO JV | Newtek-TSO II Conventional Credit Partners, LP, a 50% owned joint venture |
| IPM | Intelligent Protection Management Corp., formerly Paltalk, Inc. |
| IPM Preferred Stock | 4.0 million shares of IPM Series A Non-Voting Common Equivalent Stock |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**PART I—FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS.**

---

| | | |
|:---|:---|:---|
| **NEWTEKONE, INC. AND SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION<br>(In Thousands, except for Per Share Data)** | **NEWTEKONE, INC. AND SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION<br>(In Thousands, except for Per Share Data)** | **NEWTEKONE, INC. AND SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION<br>(In Thousands, except for Per Share Data)** |
| | **March 31, 2026** | **December 31, 2025** |
| | **(Unaudited)** | |
| **ASSETS** | | |
| &nbsp;&nbsp;Cash and due from banks | $5222 | $4196 |
| &nbsp;&nbsp;Restricted cash (amounts related to VIEs of $6.3 million and $6.3 million, respectively) | 22195 | 26477 |
| &nbsp;&nbsp;Interest bearing deposits in banks | 375599 | 279618 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cash and cash equivalents | 403016 | 310291 |
| &nbsp;&nbsp;Debt securities available-for-sale, at fair value | 15843 | 16829 |
| &nbsp;&nbsp;Loans held for sale, at fair value | 769225 | 971837 |
| &nbsp;&nbsp;Loans held for sale, at LCM | 20395 | 26532 |
| &nbsp;&nbsp;Loans held for investment, at fair value (amounts related to VIEs of $187.0 million and $198.4 million, respectively) | 264011 | 281198 |
| &nbsp;&nbsp;Loans held for investment, at amortized cost, net of deferred fees and costs | 988269 | 896689 |
| &nbsp;&nbsp;Allowance for credit losses | (46721) | (45226) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans held for investment, at amortized cost, net | 941548 | 851463 |
| &nbsp;&nbsp;Federal Home Loan Bank and Federal Reserve Bank stock | 4572 | 4234 |
| &nbsp;&nbsp;Settlement receivable | 51512 | 438 |
| &nbsp;&nbsp;Residuals in securitizations, at fair value | 197501 | 76701 |
| &nbsp;&nbsp;Joint ventures and other investments, at fair value (cost of $36,294 and $36,692), respectively | 43213 | 47719 |
| &nbsp;&nbsp;Goodwill and intangibles | 14561 | 14597 |
| &nbsp;&nbsp;Right of use assets | 2683 | 2790 |
| &nbsp;&nbsp;Deferred tax asset, net | 6270 |  |
| &nbsp;&nbsp;Servicing assets, at fair value | 13622 | 15358 |
| &nbsp;&nbsp;Servicing assets, at LCM | 41698 | 29564 |
| &nbsp;&nbsp;Other assets | 97097 | 95268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2886767 | $2744819 |

---

See accompanying notes to consolidated financial statements.

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | | |
|:---|:---|:---|
| **NEWTEKONE, INC. AND SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION<br>(In Thousands, except for Per Share Data)** | **NEWTEKONE, INC. AND SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION<br>(In Thousands, except for Per Share Data)** | **NEWTEKONE, INC. AND SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION<br>(In Thousands, except for Per Share Data)** |
| | **March 31, 2026** | **December 31, 2025** |
| | **(Unaudited)** | |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** | | |
| Liabilities: |  |  |
| &nbsp;&nbsp;Deposits: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing | $71629 | $53873 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing | 1787244 | 1364535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 1858873 | 1418408 |
| &nbsp;&nbsp;Borrowings (including borrowings of VIEs of $113.9 million and $127.1 million, respectively) | 550471 | 819888 |
| &nbsp;&nbsp;Lease liabilities | 2760 | 2874 |
| &nbsp;&nbsp;Deferred tax liabilities, net |  | 10728 |
| &nbsp;&nbsp;Due to participants | 27455 | 52389 |
| &nbsp;&nbsp;Accounts payable, accrued expenses and other liabilities | 42517 | 42962 |
| &nbsp;&nbsp;Liabilities directly associated with assets held for sale |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2482076 | 2347249 |
| Commitment and contingencies (Note 13) |  |  |
| &nbsp;&nbsp;Shareholders' Equity: |  |  |
| &nbsp;&nbsp;Series B Preferred stock (par value $0.02 per share; 54 authorized, 50 issued and outstanding) | 48181 | 48181 |
| &nbsp;&nbsp;Common stock (par value $0.02 per share; 199,980 authorized, 28,846 and 28,658 issued and outstanding, respectively) | 577 | 573 |
| &nbsp;&nbsp;Retained earnings | 101838 | 94990 |
| &nbsp;&nbsp;Additional paid-in capital | 254101 | 253830 |
| &nbsp;&nbsp;Accumulated other comprehensive loss, net of income taxes | (6) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 404691 | 397570 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $2886767 | $2744819 |

---

See accompanying notes to consolidated financial statements.

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | | |
|:---|:---|:---|
| **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** |
| **CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)** |
| **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** |
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| **Interest income** |  |  |
| &nbsp;&nbsp;Debt securities available-for-sale | $216 | $276 |
| &nbsp;&nbsp;Loans and fees on loans | 37702 | 34483 |
| &nbsp;&nbsp;Other interest earning assets | 8323 | 3131 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 46241 | 37890 |
| **Interest expense** |  |  |
| &nbsp;&nbsp;Deposits | 15270 | 9845 |
| &nbsp;&nbsp;Notes and securitizations | 9402 | 10974 |
| &nbsp;&nbsp;Bank and FHLB borrowings | 4343 | 3138 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 29015 | 23957 |
| &nbsp;&nbsp;Net interest income | 17226 | 13933 |
| &nbsp;&nbsp;Provision for credit losses | 9608 | 13505 |
| &nbsp;&nbsp;Net interest income after provision for credit losses | 7618 | 428 |
| **Noninterest income** |  |  |
| &nbsp;&nbsp;Dividend income | 450 | 1686 |
| &nbsp;&nbsp;Net loss on loan servicing assets | (6197) | (3652) |
| &nbsp;&nbsp;Servicing income | 6385 | 5525 |
| &nbsp;&nbsp;Net gains on sales of loans | 26682 | 12961 |
| &nbsp;&nbsp;Net gain on residuals in securitizations | 56144 |  |
| &nbsp;&nbsp;Net (loss) gain on loans under the fair value option | (49578) | 18077 |
| &nbsp;&nbsp;Electronic payment processing income | 10404 | 10609 |
| &nbsp;&nbsp;Other noninterest income | 9441 | 7192 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | 53731 | 52398 |
| **Noninterest expense** |  |  |
| &nbsp;&nbsp;Salaries and employee benefits expense | 23096 | 21316 |
| &nbsp;&nbsp;Electronic payment processing expense | 4121 | 4447 |
| &nbsp;&nbsp;Professional services expense | 2603 | 3435 |
| &nbsp;&nbsp;Other loan origination and maintenance expense | 6227 | 4417 |
| &nbsp;&nbsp;Technology expense | 2953 | 2728 |
| &nbsp;&nbsp;Other general and administrative costs | 5263 | 4834 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 44263 | 41177 |
| **Net income before taxes** | 17086 | 11649 |
| Income tax expense | 3685 | 2282 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net income** | 13401 | 9367 |
| Dividends to preferred shareholders | (1063) | (400) |
| Net income available to common shareholders | $12338 | $8967 |
| **Earnings per Common Share:** |  |  |
| Basic | $0.43 | $0.36 |
| Diluted | $0.43 | $0.35 |

---

See accompanying notes to consolidated financial statements.

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | | |
|:---|:---|:---|
| **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** |
| **CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)** |
| **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Net income | $13401 | $9367 |
| Other comprehensive income (loss) before tax: |  |  |
| &nbsp;&nbsp;Net unrealized (loss) gain on debt securities available-for-sale during the period | (2) | 28 |
| Other comprehensive (loss) income before tax | (2) | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense (benefit) |  | (2) |
| Other comprehensive (loss) income net of tax | (2) | 30 |
| Comprehensive income | $13399 | $9397 |

---

See accompanying notes to consolidated financial statements.

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** |
| **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** |
| **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** |
| | **Series B** <br>**Preferred stock** | **Series B** <br>**Preferred stock** | **Common stock** | **Common stock** | **Retained earnings** | **Additional paid-in capital** | **Accumulated other comprehensive income (loss), net of income taxes** | **Total shareholders' equity** |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Retained earnings** | **Additional paid-in capital** | **Accumulated other comprehensive income (loss), net of income taxes** | **Total shareholders' equity** |
| **Balance at December 31, 2025** | 50 | 48181 | 28658 | $573 | $94990 | $253830 | $(4) | $397570 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense, net of forfeitures |  |  |  |  |  | 557 |  | 557 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends declared related to RSA, net of accrued dividends forfeited |  |  | 7 |  | (77) | 77 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of vested stock for employee payroll tax withholding |  |  | (30) | (1) |  | (432) |  | (433) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock awards, net of forfeitures |  |  | 204 | 5 |  | (8) |  | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;ESPP issuances |  |  | 7 |  |  | 77 |  | 77 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends declared common shares ($0.19/share) |  |  |  |  | (5413) |  |  | (5413) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends declared preferred shares ($21.25/share) |  |  |  |  | (1063) |  |  | (1063) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 13401 |  |  | 13401 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss, net of tax |  |  |  |  |  |  | (2) | (2) |
| **Balance at March 31, 2026** | 50 | $48181 | 28846 | $577 | $101838 | $254101 | $(6) | $404691 |

---

See accompanying notes to consolidated financial statements.

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** |
| **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)** |
| **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** | **(In Thousands, except for Per Share Data)** |
| | **Series A** <br>**Preferred stock** | **Series A** <br>**Preferred stock** | **Common stock** | **Common stock** | **Retained earnings** | **Additional paid-in capital** | **Accumulated other comprehensive income (loss), net of income taxes** | **Total shareholders' equity** |
| | **Shares** | **Amount** | **Shares** | **Amount** | **Retained earnings** | **Additional paid-in capital** | **Accumulated other comprehensive income (loss), net of income taxes** | **Total shareholders' equity** |
| **Balance at December 31, 2024** | 20 | $19738 | 26291 | $526 | $57773 | $218266 | $(21) | $296282 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense, net of forfeitures |  |  |  |  |  | 1828 |  | 1828 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends declared related to RSA, net of accrued dividends forfeited |  |  | 35 | 1 | (367) | 366 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of vested stock for employee payroll tax withholding |  |  | (3) |  |  | (46) |  | (46) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock awards, net of forfeitures |  |  | 15 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;ESPP issuances |  |  | 4 |  |  | 54 |  | 54 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends declared common shares ($0.19/share) |  |  |  |  | (4835) |  |  | (4835) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends declared preferred shares ($20.00/share) |  |  |  |  | (400) |  |  | (400) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  |  | 9367 |  |  | 9367 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income, net of tax |  |  |  |  |  |  | 30 | 30 |
| **Balance at March 31, 2025** | 20 | $19738 | 26342 | $527 | $61538 | $220468 | $9 | $302280 |

---

&nbsp;&nbsp;&nbsp;&nbsp;

See accompanying notes to consolidated financial statements.

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | | |
|:---|:---|:---|
| **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** |
| **CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)** |
| **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| &nbsp;&nbsp;&nbsp;Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $13401 | $9367 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized depreciation (appreciation) on joint ventures and other investments | 2523 | (1110) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain (loss) on loans accounted for under the fair value option | 49578 | (18077) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on residuals in securitizations | (56144) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss on loan servicing assets | 6197 | 3652 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized (appreciation) depreciation on warrants and derivative transactions | (249) | 1724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on sales of loans | (26682) | (12961) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net accretion of premium/discount on debt securities available-for-sale and loans | 400 | (905) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs and deferred loan fees and costs | 1420 | 983 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses | 9608 | 13505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lower of cost or market adjustment on loans held for sale | (24) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt expense, net of recoveries | (107) | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense | 565 | 1834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax (benefit) expense | (16996) | 2791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 36 | 146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of loans held for sale | 118869 | 142933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of loans held for sale | (22179) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funding of loans held for sale | (267951) | (247439) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal received on loans held for sale | 4707 | 2797 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | (186) | (266) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement receivable | (51074) | 46376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (3856) | (19170) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to participants | (24934) | 14049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, accrued expenses and other liabilities | 5618 | (1018) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (257460) | (60704) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Principal received on loans held for investment, at fair value | 15119 | 18607 |
| &nbsp;&nbsp;&nbsp;Repurchases of loans held for investment, at fair value | (2987) | (905) |
| &nbsp;&nbsp;&nbsp;Net increase in loans held for investment, at cost | (100083) | (110671) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of Biller Genie and Newtek Technology Solutions, Inc. | 1983 | 4000 |
| &nbsp;&nbsp;&nbsp;Return of capital from joint ventures and other investments |  | 14 |
| &nbsp;&nbsp;&nbsp;Purchase of fixed assets | (89) | (37) |
| &nbsp;&nbsp;&nbsp;Sales of Federal Home Loan Bank and Federal Reserve Bank stock | 23 | 158 |
| &nbsp;&nbsp;&nbsp;Purchases of Federal Home Loan Bank and Federal Reserve Bank stock | (361) | (435) |
| &nbsp;&nbsp;&nbsp;Purchases of available-for-sale securities | (8367) | (1976) |
| &nbsp;&nbsp;&nbsp;Maturities of available-for-sale securities | 9500 | 12000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (85262) | (79245) |

---

See accompanying notes to consolidated financial statements.

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | | |
|:---|:---|:---|
| **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** | **NEWTEKONE, INC. AND SUBSIDIARIES** |
| **CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)** | **CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)** |
| **(In Thousands)** | **(In Thousands)** | **(In Thousands)** |
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowing on bank notes payable | 9852 | 129000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment on bank notes payable | (193973) | (43822) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in deposits | 439462 | (7001) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of Federal Home Loan Bank advances | (561) | (3500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from 2033 8.375% Notes | 15000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maturity of 2026 5.50% Notes | (87123) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maturity of 2025 5.00% Notes |  | (30000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from 2030 Notes |  | 30000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on Notes Payable - Securitization Trusts | (13287) | (16027) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds related to residuals in securitizations | 273074 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends paid, net of dividend reinvestment plan | (6476) | (5233) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of deferred financing costs | (158) | (710) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from common stock issued under ESPP, net of discount | 70 | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of vested stock for employee payroll tax withholding | (433) | (46) |
| Net cash provided by financing activities | 435447 | 52709 |
| Net increase (decrease) in cash and restricted cash | 92725 | (87240) |
| Cash and restricted cash—beginning of period (NOTE 2) | 310291 | 381374 |
| Cash and restricted cash—end of period (NOTE 2) | $403016 | $294134 |
| **Non-cash operating, investing and financing activities:** |  |  |
| Foreclosed real estate acquired | $3703 | $705 |
| Dividends declared but not paid during the period | $— | $5235 |
| IPM stock acquired | $— | $8200 |
| IPM earn-out | $— | $2268 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Interest paid | $29775 | $24788 |
| Income taxes paid | $232 | $4 |

---

See accompanying notes to consolidated financial statements.

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**NEWTEKONE, INC. AND SUBSIDIARIES** <br>**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**<br>

**NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:**

The Company is a financial holding company that is a leading provider of business and financial solutions to independent business owners (SMBs) and provides SMBs with the following Newtek® branded business and financial solutions: Newtek Banking, Newtek Lending, Newtek Payments, Newtek Insurance and Newtek Payroll.

NewtekOne reports on a consolidated basis the financial condition and results of operations for the following consolidated subsidiaries: Newtek Bank; NSBF; NMS (and its subsidiary Mobil Money); NBC; PMT; NIA; TAM; POS; and NALH.

Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data.

The accompanying notes to the consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed on March 10, 2026 (the "2025 Form 10-K"). The unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and footnotes necessary for a fair presentation of the consolidated financial statements in accordance with U.S. GAAP. In the opinion of management, the consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. The annualized results of operations for the three months ended March 31, 2026, are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. The December 31, 2025 consolidated statements of financial condition has been derived from the audited financial statements as of that date. All intercompany balances and transactions have been eliminated in consolidation.

***Consolidation***

The consolidated financial statements include the accounts of NewtekOne, its subsidiaries and certain VIEs. Significant intercompany balances and transactions have been eliminated. The Company consolidates a subsidiary if the Company has a controlling financial interest in the entity as a result of holding a majority of the voting rights. VIEs are consolidated if NewtekOne has the power to direct the activities of the VIE that significantly impact financial performance and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE (i.e., NewtekOne is the primary beneficiary). The determination of whether the Company is the primary beneficiary of a VIE is reassessed on an ongoing basis. Investments in companies which are not VIEs, but in which the Company has more than minor influence over the operating and financial policies, are accounted for using the equity method of accounting. Investments in VIEs where NewtekOne is not the primary beneficiary of a VIE are accounted for using the equity method of accounting. The maximum potential exposure to losses relative to investments in VIEs is generally limited to the investment balance. Refer to NOTE 3—SECURITIZATIONS AND VARIABLE INTEREST ENTITIES.

***Reclassifications***

Certain prior period amounts, which are normal and reoccurring in nature, to the extent comparable, have been reclassified to conform to the current period presentation.

The previous net presentation of cash flows from investing and financing activities within the consolidated statements of cash flows has been revised to reflect a gross presentation of repayments and borrowings, principal received on and repurchases of loans held for investment, purchases and redemptions of Federal Home Loan Bank stock and Federal Reserve Bank stock, contributions and return of capital on joint venture investments, as well as purchases, sales and maturities of available-for-sale securities for all comparative periods.

These reclassifications did not result in any changes to previously reported net income, shareholder's equity or net cash used in investing or financing activities.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**NOTE 2—SIGNIFICANT ACCOUNTING POLICIES:**

A more detailed description of our accounting policies is included in the Company's 2025 Form 10-K, which accounting policies remain significantly unchanged. There have been no other significant changes to our accounting policies, or the estimates made pursuant to those policies as described in our 2025 Form 10-K.

***Cash and due from banks***

The Company considers all highly liquid instruments with maturities of three months or less when purchased to be cash equivalents. Invested cash is held exclusively at financial institutions of high credit quality. As of March 31, 2026, cash deposits in excess of insured amounts totaled $119.5 million. The Company has not experienced any losses with respect to cash balances in excess of insured amounts and management does not believe there was a significant concentration of risk with respect to cash balances as of March 31, 2026.

***Restricted cash***

Restricted cash includes amounts due on SBA loan-related remittances to third parties, cash reserves established as part of agreements with the SBA, cash reserves associated with consolidated securitization transactions, and cash margin as collateral for derivative instruments.

***Interest bearing deposits in banks***

The Company's interest bearing deposits in banks reflects cash held at other financial institutions that earn interest.

The following table provides a reconciliation of cash, restricted cash, and interest bearing deposits in banks as of March 31, 2026 and 2025 and December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2025** | **December 31, 2025** |
| Cash and due from banks | $5222 | $10201 | $4196 |
| Restricted cash | 22195 | 24151 | 26477 |
| Interest bearing deposits in banks | 375599 | 259782 | 279618 |
| Total cash and cash equivalents | $403016 | $294134 | $310291 |

---

---

| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2025** | **December 31, 2025** |
| Cash held at Federal Reserve Bank<sup>1</sup> | $374400 | $259343 | $277828 |
| Cash held at other financial institutions | 28616 | 34791 | 32463 |
| Total cash and cash equivalents | $403016 | $294134 | $310291 |

---

<sup>1</sup> Subject to changes in the Federal Funds rate set by the Federal Open Market Committee

***Allowance for Credit Losses – Loans HFI at amortized cost***

Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL") approach requires an estimate of the credit losses expected over the life of a loan (or pool of loans). The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net, lifetime amount expected to be collected on the loans. Loan losses are charged off against the allowance when management believes a loan balance is uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, which generally includes larger non-accruing loans.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

Regression analysis of historical internal and peer data is used to determine suitable loss drivers to utilize when modeling lifetime probability of default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes various economic indicators such as changes in unemployment rates, gross domestic product, real estate values, and other relevant factors as loss drivers. For all DCF models, management has determined that due to historic volatility in economic data, four quarters currently represents a reasonable and supportable forecast period, followed by a four-quarter reversion to historical mean levels for each of the various economic indicators.

The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Specific instrument effective yields are calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value ("NPV"). An allowance is established for the difference between the instrument's NPV and amortized cost basis.

The allowance evaluation also considers various qualitative factors, such as: (i) changes to lending policies, underwriting standards and/or management personnel performing such functions, (ii) delinquency and other credit quality trends, (iii) credit risk concentrations, if any, (iv) changes to the nature of the Company's business impacting the loan portfolio, and (v) other external factors, that may include, but are not limited to, results of internal loan reviews, stress testing, examinations by bank regulatory agencies, or other events such as a natural disaster. Significant management judgment is required at each point in the measurement process.

Arriving at an appropriate level of allowance involves a high degree of judgment. The determination of the adequacy of the allowance and provisioning for estimated losses is evaluated regularly based on review of loans, with particular emphasis on non-performing and other loans that management believes warrant special consideration. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. The Company's historical credit loss experience provides the basis for the estimation of expected credit losses, supplemented with peer loss information, and results in expected probabilities of default and expected losses given default. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, production metrics, property values, or other relevant factors.

Expected losses are applied to loans grouped in portfolio segments, which are pools of loans aggregated based on type of borrower and collateral, generally based upon federal call report segmentation. Portfolio segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled. These portfolio segments are as follows:

*CRE:* ***&nbsp;&nbsp;&nbsp;&nbsp;***The CRE portfolio is comprised of loans to borrowers on small offices, owner-occupied commercial buildings, industrial/warehouse properties, income producing/investor real estate properties, and multi-family loans secured by first mortgages. The Company's underwriting standards generally target a loan-to-value ratio of 75%, depending on the type of collateral, and requires debt service coverage of a minimum of 1.2 times.

*C&I:* &nbsp;&nbsp;&nbsp;&nbsp;The C&I portfolio consists of loans made for general business purposes consisting of short-term working capital loans, equipment loans and unsecured business lines.

*SBA 7(a):* &nbsp;&nbsp;&nbsp;&nbsp;The SBA 7(a) portfolio includes loans originated under the federal Section 7(a) loan program (the "SBA 7(a) Program"), i.e., SBA 7(a) loans. The SBA is an independent government agency that facilitates one of the nation's largest sources of SMB financing by providing credit guarantees for its loan programs. SBA 7(a) loans are partially guaranteed by the SBA, with SBA guarantees typically ranging between 50% and 90% of the principal and interest due. Under the SBA 7(a) Program, a bank or other lender licensed by the SBA may underwrite loans between $5.0 thousand and $5.0 million for a variety of general business purposes based on the SBA 7(a) Program requirements. The Company applies the zero loss expectation exemption under CECL to the guaranteed portion of the SBA 7(a) loans. The unguaranteed portion of the SBA 7(a) loans that are held on balance sheet at amortized cost are subject to an ACL. In the context of CECL, these SBA 7(a) loans are held at Newtek Bank.

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*Individually Evaluated Loans.* Loans that do not share risk characteristics with existing pools are evaluated on an individual basis. Management defines these loans as nonaccrual loans with exposure above $100 thousand. In the first quarter of 2025, management began evaluating the remaining PCD loans individually, regardless of accrual status. For loans that are individually evaluated and collateral dependent, financial loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and management expects repayment of the financial asset to be provided substantially through the sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral or going concern, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral. When repayment is expected to be from the sale of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset.

*Accrued Interest.* Upon the Acquisition and adoption of CECL, the Company made the following elections regarding accrued interest receivable: (1) presented accrued interest receivable balances separately within other assets balance sheet line item; (2) excluded interest receivable that is included in amortized cost of financing receivables from related disclosures requirements and (3) continued our policy to write off accrued interest receivable by reversing interest income. For loans, write off typically occurs upon becoming over 90 to 120 days past due. Generally, accrued interest is reversed when a loan is placed on non-accrual or is written-off. Current year accrued interest is reversed through interest income while accrued interest from prior years is written-off through the ACL. Historically, the Company has not experienced uncollectible accrued interest receivable on investment securities.

*Allowance for off-balance sheet credit exposures.* The exposure is a component of other liabilities in the consolidated balance sheet and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include unused portions of lines of credit and standby and commercial letters of credit. The process used to determine the allowance for these exposures is consistent with the process for determining the allowance for loans, as adjusted for estimated funding probabilities or loan equivalency factors. A charge (credit) to provision for credit losses on the consolidated statements of income is made to account for the change in the allowance on off-balance sheet exposures between reporting periods.

***Allowance for Credit Losses – Available-for Sale ("AFS") Debt Securities***

The impairment model for AFS debt securities differs from the CECL approach utilized for financial instruments measured at amortized cost because AFS debt securities are measured at fair value. For AFS debt securities in an unrealized loss position, Newtek Bank first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities AFS that do not meet the aforementioned criteria, in making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, failure of the issuer of the debt security to make scheduled interest or principal payments, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. The cash flows should be estimated using information relevant to the collectability of the security, including information about past events, current conditions and reasonable and supportable forecasts. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the AFS security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. As of March 31, 2026 and 2025, the Company determined that the unrealized loss positions in the AFS securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded.

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***Settlement Receivable***

Settlement receivable represents amounts due from third parties for guaranteed portions of SBA 7(a) loans which have been sold at period-end but have not yet settled. The guaranteed portion of SBA 7(a) loan principal balances that have been sold but not yet settled as of March 31, 2026 and December 31, 2025, was $46.8 million and $0.4 million, respectively. The settlement receivable also includes $4.7 million and $41.0 thousand of premiums, which have been recognized in Net Gains on Sales of Loans as of March 31, 2026 and December 31, 2025, respectively.

***Variable Interest Entities***

A variable interest entity ("VIE") is an entity in which equity investors lack the characteristics of a controlling financial interest, do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support, or substantially all of the activities of the entity are conducted on behalf of an investor with disproportionally few voting rights. VIEs are consolidated by the primary beneficiary, which is the party who has the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and who has an obligation to absorb losses of the VIE or a right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of a VIE upon initial involvement with a VIE and reassesses whether it is the primary beneficiary of a VIE on an ongoing basis. The determination of whether an entity is a VIE and whether the Company is the primary beneficiary of a VIE is based upon the facts and circumstances for the VIE and requires significant judgments such as whether the Company's interest in a VIE is a variable interest, whether the Company controls the activities that most significantly impact the economic performance of the VIE, and whether the Company has the obligation to absorb losses or the right to receive benefits of the VIE that could be significant to the VIE. A VIE is consolidated if management determines the Company, is the primary beneficiary.

***Residuals in Securitizations, at Fair Value***

The residuals in securitizations, at fair value, arise from the NALP Business Loan Trust 2025-1 and 2026-1 ALP securitizations that the Company closed on April 23, 2025 and January 21, 2026, respectively. Residuals in securitizations were $197.5 million and $76.7 million as of March 31, 2026 and December 31, 2025, respectively. Both the 2025-1 and 2026-1 Trusts (collectively "the Unconsolidated Trusts") meet the definition of a VIE. The Company holds a variable interest in the VIE, however, the Company is not considered the primary beneficiary of the VIE, because the power over the activities that have the most significant impact on the economic performance of the Unconsolidated Trusts is held by the owners of the Class C Notes issued by the respective Unconsolidated Trust, and therefore, the Company is not required to consolidate the Unconsolidated Trusts. The Company's beneficial interest in the Unconsolidated Trusts is evidenced by NALH's sole ownership of the Ownership Certificates and its beneficial interest in the credit risk of the securitized ALP Loans. As the Sponsor (NALH) is a wholly owned subsidiary of the Company, the Company effectively owns 100% of the equity interest in the Unconsolidated Trusts. Refer to NOTE 3—SECURITIZATIONS AND VARIABLE INTEREST ENTITIES in the accompanying notes to the consolidated financial statements for additional information.

***Derivative Instruments***

The Company uses derivative instruments primarily to economically manage the fair value variability of fixed rate assets and liabilities caused by interest rate fluctuations. Derivative instruments consist of interest rate futures and are held at fair value on the balance sheet. Collateral posted with our futures counterparties is segregated in the Company's books and records. Interest rate futures are centrally cleared by the Chicago Mercantile Exchange ("CME") through a futures commission merchant. Interest rate futures that are governed by an ISDA agreement provide for bilateral collateral pledging based on the counterparties' market value. The counterparties have the right to re-pledge the collateral posted but have the obligation to return the pledged collateral, or, if the Company agrees, substantially the same collateral as the market value of the interest rate futures change.

The Company is required to post initial margin and daily variation margin for interest rate futures that are centrally cleared by CME. CME determines the fair value of our centrally cleared futures, including daily variation margin. Effective January 3, 2017, CME amended its rulebooks to legally characterize daily variation margin payments for centrally cleared interest rate futures as settlement rather than collateral. As a result of this rule change, variation margin pledged on the Company's centrally cleared interest rate futures is settled against the realized results of these futures.

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***Income Taxes***

Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. See NOTE 17—INCOME TAXES**.**

Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management's best assessment of estimated current and future taxes to be paid. We are subject to income taxes in the United States and its political subdivisions. Significant judgments and estimates are required in determining the consolidated income tax expense.

The Company's U.S. federal and state income tax returns prior to fiscal year 2022 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. Interest and penalties assessed by tax jurisdictions for income tax matters are presented as income tax expense on the consolidated statements of income.

***Recently Adopted Accounting Pronouncements***

*Debt—Debt with Conversion and Other Options (Subtopic 470-20) Induced Conversions of Convertible Debt Instruments (ASU 2024-04):* In November 2024, the FASB issued ASU 2024-04, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as induced conversions rather than as debt extinguishments. This update is effective for annual periods beginning after December 15, 2025, including interim periods within those fiscal years, though early adoption is permitted. The Company adopted this guidance as of January 1, 2026 and the adoption of the standard did not have a material impact on its consolidated financial statements.

*Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets:* In July 2025, the FASB issued ASU No. 2025-05, which provides a practical expedient when estimating expected credit losses on current accounts receivable and/or current contract assets arising from Transactions under Topic 606, including those assets acquired in a transaction accounted for under Topic 805, Business Combinations. The amendments require that an entity may elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. ASU 2025-05 is effective for the Company's annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-05 is required to be applied prospectively. The Company adopted this guidance as of January 1, 2026 and the adoption of the standard did not have a material impact on its consolidated financial statements.

***New Accounting Standards***

*Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (ASU 2024-03):* In November 2024, the FASB issued ASU 2024-03, and in January 2025, the FASB issued ASU 2025-01, *Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures: Clarifying the Effective Date (ASU 2025-01).* ASU 2024-03 requires public business entities to disclose, on an annual and interim basis, disaggregated information about certain income statement expense line items in the notes to the financial statements. Public business entities are required to apply the guidance prospectively and may elect to apply it retrospectively. ASU 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not anticipate it will have a material impact on its consolidated financial statements.

*Business Combinations (Topic 805) and Consolidation (Topic 810)—Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity (ASU 2025-03):* In May 2025, the FASB issued ASU No. 2025-03, which revises current guidance for determining the accounting acquirer for a transaction effected primarily by exchanging equity interests in which the legal acquiree is a variable interest entity that meets the definition of a business. The amendments require that an entity consider the same factors that are currently required for determining which entity is the accounting acquirer in other acquisition transactions. ASU 2025-03 is effective for the Company's annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-03 is required to be applied prospectively. The Company is evaluating adoption timing and the impact ASU 2025-03 will have on its financial statements and related disclosures.

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*Compensation—Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606)—Clarifications to Share-Based Consideration Payable to a Customer(ASU 2025-04):* In May 2025, the FASB issued ASU 2025-04, to reduce diversity in practice and improve the decision usefulness and operability of the guidance for share-based consideration payable to a customer in conjunction with selling goods or services. This update is effective for annual reporting periods (including interim reporting periods within annual reporting periods) beginning after December 15, 2026, though early adoption is permitted. The Company has not engaged in providing share-based compensation to a customer and does not presently anticipate doing so.

*Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.* In September 2025, the FASB issued ASU No. 2025-06, which modernizes the accounting for internal-use software costs under ASC 350-40 by aligning it with current development practices, especially agile and iterative methods. It clarifies when to begin capitalizing costs, improves operability across different development approaches, and enhances disclosure requirements. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, and for interim periods within those annual reporting periods, with early adoption permitted. The Company is evaluating adoption timing and the impact ASU 2025-06 will have on its consolidated financial statements and, at this time, does not anticipate it will have a material impact.

*Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract.* In September 2025, the FASB issued ASU No. 2025-07, which refines the scope of derivative accounting under Topic 815 and clarifies the treatment of share-based noncash consideration under ASC 606. This update is effective for annual periods beginning after December 15, 2025, including interim periods within those annual periods, with early adoption permitted. Entities may apply the amendments prospectively to new contracts or retrospectively with a cumulative-effect adjustment. The Company is evaluating adoption timing and the impact ASU 2025-07 will have on its consolidated financial statements and, at this time, does not anticipate it will have a material impact.

*Financial Instruments—Credit Losses (Topic 326): Purchased Loans.* In November 2025, the FASB issued ASU 2025-08 which amended guidance related to the accounting for purchased loans. Under this new guidance, loans acquired without credit deterioration and deemed "seasoned" will be considered purchased seasoned loans and accounted for using the gross-up approach at acquisition (i.e., record the loan at its purchase price and separately record an allowance for expected credit losses). Seasoned loans include all loans acquired in a business combination, that do not have "more-than-insignificant" deterioration of credit quality since origination, as well as loans purchased at least 90 days after origination, where the purchaser was not involved in the origination of the loans. This new guidance is effective for annual and interim periods beginning after December 15, 2026 with early adoption permitted. This guidance will be applied using a prospective transition approach. The Company is in the process of analyzing the impact of the ASU on its consolidated financial statements and related disclosures.

*Derivatives and Hedging (Topic 815): Hedge Accounting Improvements.* In November 2025, the FASB issues ASU 2025-09, which includes amendments to more closely align hedge accounting with the economics of an entities risk management activities. This new guidance is effective for fiscal years beginning after December 15, 2026 and interim periods within those fiscal years, with early adoption permitted, and should be applied prospectively. The Company is currently evaluating the ASU to determine its impact on the Company's consolidated financial statements and related disclosures.

*Interim Reporting (Topic 270): Narrow-Scope Improvements.* In December 2025, the FASB issued ASU 2025-11, relating to interim disclosure requirements. The amendments in this update clarify certain interim disclosure requirements and provide a comprehensive list of required interim disclosures. The ASU also incorporates a disclosure principle that requires entities to disclose events that occur after the end of the last annual reporting period. The ASU is effective for interim periods within annual periods beginning after December 15, 2027, though early adoption is permitted. The Company is in the process of analyzing the impact of the ASU on its consolidated financial statements and related disclosures.

*Codification Improvements:* In December 2025, the FASB issued ASU 2025-12, to address suggestions received from stakeholders on the Accounting Standards Codification and to make other incremental improvements to U.S. GAAP. The updates represents changes to the Codification that (1) clarity, (2) correct errors, or (3) make minor improvements. The amendments make the Codification easier to understand and apply. The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The Company will adopt this guidance in fiscal 2027 and does not expect the adoption to have a material impact on its consolidated financial statements and related disclosures.

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**NOTE 3—SECURITIZATIONS AND VARIABLE INTEREST ENTITIES:**

*SBA 7(a) Loan Securitizations*

From 2010 through June 2023, NSBF engaged in thirteen (13) securitizations of the unguaranteed portions of its SBA 7(a) loans. In each of these SBA 7(a) loan securitizations, the unguaranteed portions of the SBA 7(a) loans were transferred to a special purpose vehicle (a "Trust"), which in turn issued notes against the Trust's assets in private placements. The Trust's primary source of income for repaying the securitization notes is the cash flows generated from the unguaranteed portion of SBA 7(a) loans owned by the Trust. A Trust is considered to be a VIE.

Assets owned by the securitization Trusts, which are VIEs, have been included in the Company's consolidated financial statements as a result of the Company concluding that it is (or was) the primary beneficiary of the Trust. The Company therefore consolidated the entities using the carrying amounts of the Trusts' assets and liabilities and reflects the assets in Restricted cash and Loans held for investment, at fair value and reflects the associated financing in Borrowings on the Consolidated Statements of Financial Condition. The creditors or other beneficial interest holders of Trusts for which the Company is the primary beneficiary generally have recourse only to the assets and cash flows of the Trust and do not have recourse to the Company.

Three (3) of these NSBF 7(a) loan securitizations remain consolidated as of March 31, 2026. Risks associated with the Company's involvement with the consolidated Trusts includes potential losses of residual interests in the Trusts.

The following table presents the total assets and total liabilities associated with the Company's variable interests in consolidated Trusts, as classified in the consolidated statements of financial condition:

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| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Restricted cash | $6303 | $6303 |
| Loans held for investment, at fair value | 186965 | 198434 |
| Total assets | $193268 | $204737 |
| Borrowings | $113944 | $127050 |
| Total liabilities | $113944 | $127050 |

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*ALP Loan Securitizations*

Assets owned by securitization Trusts, which are VIEs, are not included in the Company's consolidated financial statements when the Company has concluded that it is not the primary beneficiary of the Trust and the transfer of the financial assets meet the sale criteria of ASC 860. As the beneficial interests in these securitizations meet the definition of a debt security, pertain to securitized financial assets and based on other criteria met, it falls under the scope of ASC 325-40. This guidance also permits an entity to elect to account for the beneficial interests under the fair value option. The Company has made the irrevocable decision to measure the beneficial interests using the fair value option under ASC 825 with changes in fair value recognized in earnings each reporting period.

On April 23, 2025, the Company's subsidiary Newtek ALP Holdings closed a securitization pursuant to which it sold $155.9 million of Class A Notes, $23.8 million of Class B Notes, and $4.3 million of a Class C Note (collectively, the "2025-1 Notes") issued by NALP Business Loan Trust 2025-1 (the "Securitization Trust"). The 2025-1 Notes were backed by $216.6 million of collateral, consisting of Newtek ALP Holdings originated ALP loans. The Class A Notes received a Morningstar DBRS rating of "A (low) (sf)" and were priced at a yield of 6.338%; the Class B Notes received a Morningstar DBRS rating of "BBB (sf)" and were priced at a yield of 7.838%; and the Class C Note received a Morningstar DBRS rating of "BB (sf)" and was priced at a yield of 10.338%. The 2025-1 Notes had a weighted average yield of 6.62% and an 85% advance rate.

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On January 21, 2026, Newtek ALP Holdings closed a securitization pursuant to which it sold $251.9 million of Class A Notes, $35.9 million of Class B Notes, and $6.8 million of a Class C Note (collectively, the "2026-1 Notes") issued by NALP Business Loan Trust 2026-1. The Notes were backed by $341.8 million of collateral, consisting of $284.4 million of Company originated ALP loans and a prefunding account to acquire additional ALP loans originated by the Company. The Class A Notes received a Morningstar DBRS rating of "A (low) (sf)" and were priced at a yield of 5.796%; the Class B Notes received a Morningstar DBRS rating of "BBB (sf)" and were priced at a yield of 7.296%; and the Class C Note received a Morningstar DBRS rating of "BB (sf)" and was priced at a yield of 10.146%. The 2026-1 Notes had a weighted average yield of 6.08% and an 86% advance rate.

Both the 2025-1 and 2026-1 Trusts (collectively "the Unconsolidated Trusts") meet the definition of a VIE and the Company holds a variable interest in the Unconsolidated Trusts, however, the Company is not considered the primary beneficiary of the Unconsolidated Trusts, because the power over the activities that have the most significant impact on the economic performance of each Securitization Trust is held by a single noteholder who has the unilateral ability to remove the Company, without cause, as decision maker over the activities that most significantly impact the economic performance of the Unconsolidated Trusts. Consequently the Company is not required to consolidate the Unconsolidated Trusts. The Company's beneficial interest in the Unconsolidated Trusts is evidenced by sole ownership of the Ownership Certificates and its beneficial interest in the credit risk of the securitized ALP Loans. Newtek ALP Holdings, the sponsor of the Securitization Trusts, is a wholly owned subsidiary of the Company, therefore the Company effectively owns 100% of the equity interest in the Unconsolidated Trusts.

The Company's continuing involvement with and exposure to loss from the VIEs includes the carrying value of the retained interest, and obligations under representations and warranties contained in the loan sale agreements. Creditors of the Unconsolidated Trusts have no recourse to the Company's assets or general credit. The underlying performance of the ALP loans transferred to the Unconsolidated Trusts have a direct impact on the fair values and cash flows of the beneficial interests held and the servicing asset recognized.

The Company's investments in the Unconsolidated Trusts are accounted for using the fair value option under ASC 825, with changes in fair value recognized in earnings each reporting period, and is classified in Residuals in securitizations, at fair value in the Company's consolidated statements of financial condition, and consisted of the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Carrying Value** | **Carrying Value** | **Maximum Exposure to Loss** | **Total Assets in VIE** |
| | **Assets** | **Liabilities** | **Maximum Exposure to Loss** | **Total Assets in VIE** |
| **Transfer of loans - sale treatment** | | | | |
| &nbsp;&nbsp;Retained interests | $197501 | $— | $197501 | $512420 |

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| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Carrying Value** | **Carrying Value** | **Maximum Exposure to Loss** | **Total Assets in VIE** |
| | **Assets** | **Liabilities** | **Maximum Exposure to Loss** | **Total Assets in VIE** |
| **Transfer of loans - sale treatment** | | | | |
| &nbsp;&nbsp;Retained interests | $76701 | $— | $76701 | $202015 |

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**NOTE 4—INVESTMENTS:**

Investments consisted of the following at:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| | **Cost** | **Fair Value** | **Cost** | **Fair Value** |
| Residuals in securitizations, at fair value (NOTE 3) | $79657 | $197501 | $32481 | $76701 |
| Joint ventures and other investments | 36294 | 43213 | 36692 | 47719 |
| Debt securities available-for-sale, at fair value | 15850 | 15843 | 16836 | 16829 |
| Federal Home Loan Bank and Federal Reserve Bank stock | 4572 | 4572 | 4234 | 4234 |
| Total investments | $136374 | $261129 | $90243 | $145483 |

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**The Company's Investments in Joint Ventures (JV) and Other Investments**

NCL JV: On May 20, 2019, the Company and its joint venture partner launched NCL JV to provide ALP loans to U.S. middle-market companies and small businesses. NCL JV was a 50/50 joint venture between NCL, a wholly-owned subsidiary of the Company, and Conventional Lending TCP Holding, LLC ("TCP"), a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (Nasdaq: TCPC). On January 28, 2022, NCL JV closed a securitization with the sale of $56.3 million of Class A Notes, NCL Business Loan Trust 2022-1, Business Loan-Backed Notes, Series 2022-1, secured by a segregated asset pool consisting primarily of NCL JV's portfolio of ALP loans secured by liens on commercial or residential mortgaged properties, originated by NCL JV and NBL. The Notes were rated "A" (sf) by DBRS Morningstar. The Notes were priced at a yield of 3.209%. On August 25, 2025, the Class A Noteholders were re-paid in full, the assets owned by the NCL Business Loan Trust 2022-1 were distributed to NCL JV and the NCL Business Loan Trust 2022-1 was subsequently terminated. On August 27, 2025, NALH entered into an interest purchase agreement with TCP to acquire TCP's 50% ownership interest in NCL JV for $15.75 million, resulting in NALH owning 100% of NCL JV. Since the assets acquired did not meet the definition of a business under ASC 805-10-55, the transaction was accounted for as an asset acquisition under ASC 805-50. On September 30, 2025, NALH dissolved NCL JV.

TSO JV: On August 5, 2022, NCL and TSO II Booster Aggregator, L.P. ("TSO II") entered into a joint venture, TSO JV, and began making investments in ALP loans during the fourth quarter of 2022. NCL and TSO II each committed to contribute an equal share of equity funding to the TSO JV and each have equal voting rights on all material matters. On July 23, 2024, TSO JV closed a securitization backed by ALP loans, selling $137.2 million of Class A Notes and $17.2 million of Class B Notes (collectively, the "TSO Notes") issued by NALP Business Loan Trust 2024-1. The TSO Notes were backed by $190.5 million of collateral, consisting of Company originated ALP loans. The Class A and Class B Notes received Morningstar DBRS ratings of "A (sf)" and "BBB (high) (sf)," respectively. TSO JV ceased investing in new ALP loans in July 2023.

**Intelligent Protection Management Corp.**

On January 2, 2025, the Company completed the sale of its wholly owned subsidiary Newtek Technology Solutions, Inc. ("NTS") to Paltalk, Inc. (subsequently renamed Intelligent Protection Management Corp. ("IPM")) (Nasdaq: IPM) (the "NTS Sale"). In connection with the NTS Sale, the Company received the Closing Consideration consisting of $4.0 million Cash Consideration and 4.0 million shares of IPM Preferred Stock. Upon the occurrence of certain specified transfers of the IPM Preferred Stock, each share of IPM Preferred Stock will automatically convert into one share of common stock of IPM, subject to certain anti-dilution adjustments. In addition to the Closing Consideration, the Company may be entitled to receive an earn-out in an amount of up to $5.0 million, payable in cash, IPM Preferred Stock, or a combination thereof (as determined in IPM's discretion), based on IPM's achievement of certain cumulative average Adjusted EBITDA thresholds for the 2025 and 2026 fiscal years. The Company assesses the likelihood of the earn-out being achieved on a quarterly basis and records the resulting fair value, as disclosed in the table below. As of March 31, 2026, the Company has determined the fair value of the earn-out to be $837 thousand. The Company is entitled to appoint one representative to the IPM board of directors. Barry Sloane, the Company's Chief Executive Officer serves on the IPM board of directors as the Company's representative. The Company has accounted for its investment in IPM under ASC 321 beginning in the first quarter of 2025 and as such management measured the equity investment at fair value and the carrying amount will be remeasured at each reporting period with changes in fair value recorded in earnings.

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

Investments related to our joint ventures and other investments for the three months ended March 31, 2026 and 2025 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
|<br>**Company** | **Cost** | **Fair Value** | **Cost** | **Fair Value** |
| Joint Ventures |  |  |  |  |
| &nbsp;&nbsp;TSO JV | 25520 | 35950 | 25520 | 37250 |
| &nbsp;&nbsp;Other Investments |  |  |  |  |
| &nbsp;&nbsp;EMCAP Loan Holdings, LLC | $306 | $306 | $306 | $306 |
| &nbsp;&nbsp;Biller Genie Software, LLC |  |  | 398 | 1983 |
| &nbsp;&nbsp;Intelligent Protection Management Corp. |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;IPM Earnout |  | 837 |  | 1300 |
| &nbsp;&nbsp;&nbsp;&nbsp;IPM Stock<sup>1</sup> | 10468 | 6120 | 10468 | 6880 |
| Total Other Investments | $10774 | $7263 | $11172 | $10469 |
| Total | $36294 | $43213 | $36692 | $47719 |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Four million shares of IPM Preferred Stock with net gains/(losses) calculated based on a closing price of $1.53 and $1.72 on March 31, 2026 and December 31, 2025, respectively.

**Debt Securities Available-for-Sale** 

The following tables summarize the amortized cost and fair value of debt securities available-for-sale by major type as of March 31, 2026 and December 31, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Amortized**<br>**Cost** | **Unrealized**<br>**Gains** | **Unrealized**<br>**Losses** | **Fair**<br>**Value** | **Amortized**<br>**Cost** | **Unrealized**<br>**Gains** | **Unrealized**<br>**Losses** | **Fair**<br>**Value** |
| U.S. Treasury notes | $15850 | $— | $7 | $15843 | $16836 | $— | $7 | $16829 |

---

As of March 31, 2026 and December 31, 2025, there was no accrued interest receivable on available-for-sale securities included in Other assets in the accompanying Consolidated Statements of Financial Condition.

During the three months ended March 31, 2026, and 2025, securities sold or settled were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** | **2025** |
| | # of Securities | $# of Securities | $ |
| Securities sold or settled | two settled | four settled | $(10024) |

---

*Unrealized Losses* 

The following tables summarize the gross unrealized losses and fair value of debt securities available-for-sale by length of time each major security type has been in a continuous unrealized loss position:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | Less Than 12 Months | Less Than 12 Months | 12 Months or More | 12 Months or More | Total | Total | Total |
| | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Number of Holdings | Fair Value | Unrealized Losses |
| U.S. Treasury notes | $15843 | $7 | $— | $— | 3 | $15843 | $7 |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | Less Than 12 Months | Less Than 12 Months | 12 Months or More | 12 Months or More | Total | Total | Total |
| | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Number of Holdings | Fair Value | Unrealized Losses |
| U.S. Treasury notes | $16829 | $7 | $— | $— | 3 | $16829 | $7 |

---

Management evaluates debt securities available-for-sale debt to determine whether the unrealized loss is due to credit-related factors or non-credit-related factors. The evaluation considers the extent to which the security's fair value is less than cost, the financial condition and near-term prospects of the issuer, and intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. These unrealized losses are primarily the result of non-credit-related volatility in the market and market interest rates. Since none of the unrealized losses relate to marketability of the securities or the issuers' ability to honor redemption obligations and the Company has the intent and ability to hold the securities for a sufficient period of time to recover unrealized losses, none of the losses have been recognized in the Company's Consolidated Statements of Income.

***Contractual Maturities***

The following table summarizes the amortized cost and fair value of debt securities available-for-sale by contractual maturity:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **At December 31, 2025** | **At December 31, 2025** |
| | Amortized Cost | Fair Value | Amortized Cost | Fair Value |
| Maturing within 1 year | $15850 | $15843 | $16836 | $16829 |
| After 1 year through 5 years |  |  |  |  |
| After 5 through 10 years |  |  |  |  |
| After 10 years |  | **—** |  |  |
| Total | $15850 | $15843 | $16836 | $16829 |

---

***Other information***

The following table summarizes Newtek Bank's debt securities available-for-sale pledged for deposits, borrowings, and other purposes:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Pledged for deposits | $— | $— |
| Pledged for borrowings and other: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;FRB borrowings | 7446 | 7383 |
| &nbsp;&nbsp;&nbsp;&nbsp;FHLB borrowings | 8397 | 9446 |
| Total pledged | $15843 | $16829 |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**NOTE 5—LOANS**:

**Loans held for investment (HFI), at fair value**

Loans HFI, at fair value, includes SBA 7(a) loans originated by NSBF. On occasion, NSBF has distributed loans to NewtekOne that were originated as SBA 7(a) loans by NSBF and where the SBA guarantee has been subsequently repurchased by NSBF. The following table shows the Company's loan portfolio by collateral type for loans HFI, at fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Loans HFI, at Fair Value** | **Loans HFI, at Fair Value** | **Loans HFI, at Fair Value** | **Loans HFI, at Fair Value** |
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| | **Cost** | **Fair Value** | **Cost** | **Fair Value** |
| CRE | $125322 | $131328 | $131015 | $138110 |
| Residential Real Estate | 47750 | 46474 | 52229 | 50539 |
| Machinery and Equipment¹ | 44149 | 40936 | 46552 | 43266 |
| Accounts Receivable and Inventory | 41866 | 35317 | 43944 | 38670 |
| Unsecured | 4013 | 4047 | 4295 | 4259 |
| Other² | 7885 | 5909 | 8619 | 6354 |
| Total | $270985 | $264011 | $286654 | $281198 |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Machinery and Equipment includes one loan at NewtekOne at $4.7 million Cost and $4.7 million Fair value as of March 31, 2026, and $4.7 million Cost and $4.7 million Fair Value as of December 31, 2025.

<sup>2&nbsp;&nbsp;&nbsp;&nbsp;</sup>Other includes one loan at NewtekOne at $1.0 million Cost and $0.2 million Fair Value as of March 31, 2026, and one loan at $1.0 million Cost and $0.2 million Fair Value as of December 31, 2025.

**Loans HFI, at amortized cost, net of deferred fees and costs**

Loans HFI, at amortized cost, net of deferred fees and costs, includes unguaranteed portions of SBA 7(a) loans, guaranteed portions of SBA 7(a) loans repurchased from the secondary market, CRE, and C&I loans originated and held by Newtek Bank. The following table shows the Company's loan portfolio by loan type for loans HFI, at amortized cost:

---

| | | |
|:---|:---|:---|
| | **Loans HFI, at Amortized Cost** | **Loans HFI, at Amortized Cost** |
| | **March 31, 2026** | **December 31, 2025** |
| SBA | $582944 | $539746 |
| CRE | 302738 | 274194 |
| C&I | 100215 | 80380 |
| Total Loans | 985897 | 894320 |
| Deferred fees and costs, net | 2372 | 2369 |
| Loans held for investment, at amortized cost, net of deferred fees and costs | $988269 | $896689 |

---

**Past Due and Non-Accrual Loans HFI**

***Loans HFI, at fair value***

The following tables summarize the aging of accrual and non-accrual loans HFI, at fair value by class:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** |
| | **Past Due and Accruing** | **Past Due and Accruing** | **Past Due and Accruing** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Accounted for Under the FV Option** |
| | **30-59 Days** | **60-89 Days** | **90+ Days** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Accounted for Under the FV Option** |
| SBA, at fair value | $11198 | $8388 | $7870 | $70719 | $98175 | $165836 | $264011 |
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
|  | **Past Due and Accruing** | **Past Due and Accruing** | **Past Due and Accruing** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Accounted for Under the FV Option** |
|  | **30-59 Days** | **60-89 Days** | **90+ Days** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Accounted for Under the FV Option** |
| SBA, at fair value | $10843 | $5903 | $2732 | $72543 | $92021 | $189177 | $281198 |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

***Loans HFI, at amortized cost, net of deferred fees and costs***

The following tables summarize the aging of accrual and non-accrual loans HFI, at amortized cost by class:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** |
| | **Past Due and Accruing** | **Past Due and Accruing** | **Past Due and Accruing** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Carried at Amortized Cost** |
| | **30-59 Days** | **60-89 Days** | **90+ Days** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Carried at Amortized Cost** |
| *At amortized cost* |  |  |  |  |  |  |  |
| SBA | $18808 | $7000 | $— | $83342 | $109150 | $473794 | $582944 |
| CRE |  |  |  | 2809 | 2809 | 299929 | 302738 |
| C&I | 323 | 241 |  | 1302 | 1866 | 98349 | 100215 |
| Total, at amortized cost | $19131 | $7241 | $— | $87453 | $113825 | $872072 | $985897 |
| Deferred fees and costs |  |  |  |  |  |  | 2372 |
| Total, at amortized cost net of deferred fees and costs | Total, at amortized cost net of deferred fees and costs | Total, at amortized cost net of deferred fees and costs |  |  |  |  | $988269 |
| Allowance for credit losses |  |  |  |  |  |  | (46721) |
| Total, at amortized cost, net |  |  |  |  |  |  | $941548 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| | **Past Due and Accruing** | **Past Due and Accruing** | **Past Due and Accruing** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Carried at Amortized Cost** |
| | **30-59 Days** | **60-89 Days** | **90+ Days** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Carried at Amortized Cost** |
| *At amortized cost* |  |  |  |  |  |  |  |
| SBA | $9740 | $5628 | $— | $74008 | $89376 | $450370 | $539746 |
| CRE |  |  |  | 2976 | 2976 | 271218 | 274194 |
| C&I | 5089 | 98 |  | 1830 | 7017 | 73363 | 80380 |
| Total, at amortized cost | $14829 | $5726 | $— | $78814 | $99369 | $794951 | $894320 |
| Deferred fees and costs |  |  |  |  |  |  | 2369 |
| Total, at amortized cost net of deferred fees and costs | Total, at amortized cost net of deferred fees and costs | Total, at amortized cost net of deferred fees and costs |  |  |  |  | $896689 |
| Allowance for credit losses |  |  |  |  |  |  | (45226) |
| Total, at amortized cost, net |  |  |  |  |  |  | $851463 |

---

***Credit Quality Indicators***

The Company uses internal loan reviews to assess the performance of individual loans. In addition, an independent review of the loan portfolio is performed annually by an external firm. The goal of the Company's annual review of each borrower's financial performance is to validate the adequacy of the risk grade assigned.

The Company uses a grading system to rank the quality of each loan. The grade is periodically evaluated and adjusted as performance dictates. Loan grades 1 through 4 are passing grades and grade 5 is special mention. Collectively, grades 6 through 7 represent classified loans in Newtek Bank's portfolio. The following guidelines govern the assignment of these risk grades:

Exceptional (1 Rated): These loans are of the highest quality, with strong, well-documented sources of repayment. These loans will typically have multiple demonstrated sources of repayment with no significant identifiable risk to collection, exhibit well-qualified management, and have liquid financial statements relative to both direct and indirect obligations.

Quality (2 Rated): These loans are of very high credit quality, with strong, well-documented sources of repayment. These loans exhibit very strong, well defined primary and secondary sources of repayment, with no significant identifiable risk of collection and have internally generated cash flow that more than adequately covers current maturities of long-term debt.

Satisfactory (3 Rated): These loans exhibit satisfactory credit risk and have excellent sources of repayment, with no significant identifiable risk of collection. These loans have documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. They have adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor.

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

Acceptable (4 Rated): These loans show signs of weakness in either adequate sources of repayment or collateral but have demonstrated mitigating factors that minimize the risk of delinquency or loss. These loans may have unproved, insufficient or marginal primary sources of repayment that appear sufficient to service the debt at this time. These loans also include loans underwritten using projected and/or proforma financial information provided by the borrower. Repayment weaknesses may be due to minor operational issues, financial trends, or reliance on projected performance. They may also contain marginal or unproven secondary sources to liquidate the debt, including combinations of liquidation of collateral and

liquidation value to the net worth of the borrower or guarantor.

Special mention (5 Rated): These loans show signs of weaknesses in either adequate sources of repayment or collateral. These loans may contain underwriting guideline tolerances and/or exceptions with no mitigating factors; and/or instances where adverse economic conditions develop subsequent to origination that do not jeopardize liquidation of the debt but substantially increase the level of risk.

Substandard (6 Rated): Loans graded Substandard are inadequately protected by current sound net worth, paying capacity of the obligor, or pledged collateral. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These loans are consistently not meeting the repayment schedule.

Doubtful (7 Rated): Loans graded Doubtful have all the weaknesses inherent in those classified as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. The ability of the borrower to service the debt is extremely weak, overdue status is constant, the debt has been placed on non-accrual status, and no definite repayment schedule exists. Once the loss position is determined, the amount is charged off.

Loss (8 Rated): Loss rated loans are considered uncollectible and of such little value that their continuance as assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this credit even though partial recovery may be affected in the future.

The following tables present asset quality indicators by portfolio class and origination year at March 31, 2026 and December 31, 2025:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **<u>March 31, 2026</u>** | **Term Loans HFI by Origination Year** | **Term Loans HFI by Origination Year** | **Term Loans HFI by Origination Year** | **Term Loans HFI by Origination Year** | **Term Loans HFI by Origination Year** | **Term Loans HFI by Origination Year** | **Term Loans HFI by Origination Year** |
|  | **2026** | **2025** | **2024** | **2023** | **2022** | **Prior** | **Total** |
| **SBA, at fair value** |  |  |  |  |  |  |  |
| Risk Grades 1-4 | $— | $— | $— | $15696 | $71415 | $98600 | $185711 |
| Risk Grades 5-6 |  |  |  | 4441 | 20322 | 53512 | 78275 |
| Risk Grade 7 |  |  |  |  |  |  |  |
| Risk Grade 8 |  |  |  |  | 25 |  | 25 |
| Total | $— | $— | $— | $20137 | $91762 | $152112 | $264011 |
| **SBA, at amortized cost, net of deferred fees and costs** | **SBA, at amortized cost, net of deferred fees and costs** | **SBA, at amortized cost, net of deferred fees and costs** | **SBA, at amortized cost, net of deferred fees and costs** |  |  |  |  |
| Risk Grades 1-4 | $51550 | $179264 | $147811 | $65006 | $— | $— | $443631 |
| Risk Grades 5-6 | 222 | 12755 | 58672 | 36204 |  |  | 107853 |
| Risk Grade 7 |  | 2409 | 10608 | 8736 |  |  | 21753 |
| Risk Grade 8 |  | 455 | 2771 | 6481 |  |  | 9707 |
| Total | $51772 | $194883 | $219862 | $116427 | $— | $— | $582944 |
| **CRE, at amortized cost, net of deferred fees and costs** | **CRE, at amortized cost, net of deferred fees and costs** | **CRE, at amortized cost, net of deferred fees and costs** | **CRE, at amortized cost, net of deferred fees and costs** |  |  |  |  |
| Risk Grades 1-4 | $40986 | $93451 | $44530 | $25344 | $30334 | $53740 | $288385 |
| Risk Grades 5-6 |  | 8814 | 849 |  | 1733 | 2957 | 14353 |
| Risk Grade 7 |  |  |  |  |  |  |  |
| Total | $40986 | $102265 | $45379 | $25344 | $32067 | $56697 | $302738 |
| **C&I, at amortized cost, net of deferred fees and costs** | **C&I, at amortized cost, net of deferred fees and costs** | **C&I, at amortized cost, net of deferred fees and costs** | **C&I, at amortized cost, net of deferred fees and costs** |  |  |  |  |
| Risk Grades 1-4 | $25928 | $54362 | $11366 | $2403 | $— | $— | $94059 |
| Risk Grades 5-6 |  | 796 | 5113 | 32 |  |  | 5941 |
| Risk Grade 7 |  |  | 215 |  |  |  | 215 |
| Total | $25928 | $55158 | $16694 | $2435 | $— | $— | $100215 |
| **Total** | $118686 | $352306 | $281935 | $164343 | $123829 | $208809 | $1249908 |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **<u>December 31, 2025</u>** | **Term Loans HFI by Origination Year** | **Term Loans HFI by Origination Year** | **Term Loans HFI by Origination Year** | **Term Loans HFI by Origination Year** | **Term Loans HFI by Origination Year** | **Term Loans HFI by Origination Year** | **Term Loans HFI by Origination Year** |
|  | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Total** |
| **SBA, at fair value** |  |  |  |  |  |  |  |
| Risk Grades 1-4 | $— | $— | $17823 | $78437 | $27409 | $82954 | $206623 |
| Risk Grades 5-6 |  |  | 3861 | 19677 | 7498 | 43431 | 74467 |
| Risk Grade 7 |  |  | 33 | 50 |  |  | 83 |
| Risk Grade 8 |  |  |  | 25 |  |  | 25 |
| Total | $— | $— | $21717 | $98189 | $34907 | $126385 | $281198 |
| **SBA, at amortized cost, net of deferred fees and costs** | **SBA, at amortized cost, net of deferred fees and costs** | **SBA, at amortized cost, net of deferred fees and costs** | **SBA, at amortized cost, net of deferred fees and costs** |  |  |  |  |
| Risk Grades 1-4 | $189147 | $168558 | $74500 | $— | $— | $— | $432205 |
| Risk Grades 5-6 | 3454 | 39769 | 35032 |  |  |  | 78255 |
| Risk Grade 7 | 332 | 11069 | 10205 |  |  |  | 21606 |
| Risk Grade 8 | 46 | 2371 | 5263 |  |  |  | 7680 |
| Total | $192979 | $221767 | $125000 | $— | $— | $— | $539746 |
| **CRE, at amortized cost, net of deferred fees and costs** | **CRE, at amortized cost, net of deferred fees and costs** | **CRE, at amortized cost, net of deferred fees and costs** | **CRE, at amortized cost, net of deferred fees and costs** |  |  |  |  |
| Risk Grades 1-4 | $100724 | $52167 | $25429 | $30508 | $15753 | $42090 | $266671 |
| Risk Grades 5-6 | 1800 | 885 |  | 1742 |  | 3096 | 7523 |
| Risk Grade 7 |  |  |  |  |  |  |  |
| Total | $102524 | $53052 | $25429 | $32250 | $15753 | $45186 | $274194 |
| **C&I, at amortized cost, net of deferred fees and costs** | **C&I, at amortized cost, net of deferred fees and costs** | **C&I, at amortized cost, net of deferred fees and costs** | **C&I, at amortized cost, net of deferred fees and costs** |  |  |  |  |
| Risk Grades 1-4 | $58284 | $12367 | $3315 | $— | $— | $— | $73966 |
| Risk Grades 5-6 | 711 | 5383 | 36 |  |  |  | 6130 |
| Risk Grade 7 |  | 284 |  |  |  |  | 284 |
| Total | $58995 | $18034 | $3351 | $— | $— | $— | $80380 |
| **Total** | $354498 | $292853 | $175497 | $130439 | $50660 | $171571 | $1175518 |

---

***Allowance for Credit Losses***

See NOTE 2—SIGNIFICANT ACCOUNTING POLICIES for a description of the methodologies used to estimate the ACL.

The following table details activity in the ACL for the three months ended March 31, 2026 and 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
| | CRE | C&I | SBA | Total | CRE | C&I | SBA | Total |
| Beginning balance | $1873 | $3282 | $40071 | $45226 | $1430 | $315 | $28488 | $30233 |
| Charge offs | (130) | (584) | (7794) | (8508) |  |  | (5131) | (5131) |
| Recoveries |  | 487 | 186 | 673 |  |  | 5 | 5 |
| Provision for (recovery of) credit losses<sup>1</sup> | 437 | (13) | 8906 | 9330 | 407 | 294 | 12841 | 13542 |
| Total  | $2180 | $3172 | $41369 | $46721 | $1837 | $609 | $36203 | $38649 |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Excludes $278 thousand and $(37) thousand of Provision for credit losses relating to unfunded commitments for the three months ended March 31, 2026 and 2025, respectively, which is recorded within Accounts payable, accrued expenses and other liabilities in accordance with ASC 326.

The following table presents the individually evaluated and collectively evaluated ACL by segment:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| ACL | CRE | C&I | SBA | Total | CRE | C&I | SBA | Total |
| Individually Evaluated | $— | $393 | $11164 | $11557 | $— | $1328 | $12311 | $13639 |
| Collectively Evaluated | 2180 | 2779 | 30205 | 35164 | 1873 | 1954 | 27760 | 31587 |
| Total | $2180 | $3172 | $41369 | $46721 | $1873 | $3282 | $40071 | $45226 |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

The following table presents the recorded investment in loans individually evaluated and collectively evaluated by segment:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| Recorded Investment | CRE | C&I | SBA | Total | CRE | C&I | SBA | Total |
| Individually Evaluated<sup>1</sup> | $17765 | $1302 | $83342 | $102409 | $18487 | $1827 | $74008 | $94322 |
| Collectively Evaluated | 284973 | 98913 | 499602 | 883488 | 255707 | 78553 | 465738 | 799998 |
| Total | $302738 | $100215 | $582944 | $985897 | $274194 | $80380 | $539746 | $894320 |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Recorded at FV on a non-recurring basis

The amortized cost basis of loans on nonaccrual status and the associated ACL are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Nonaccrual without Allowance** | **Nonaccrual with Allowance** | **ACL** | **Nonaccrual without Allowance** | **Nonaccrual with Allowance** | **ACL** |
| SBA | $48358 | $34984 | $11164 | $34058 | $39950 | $12311 |
| CRE | 2809 |  |  | 2979 |  |  |
| C&I | 647 | 655 | 393 | 419 | 1408 | 1328 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total  | $51814 | $35639 | $11557 | $37456 | $41358 | $13639 |

---

The unpaid contractual principal balance and recorded investment for the loans individually assessed is shown in the table below by type:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Real Estate Collateral** | **Non-Real Estate Collateral** | **Total** | **ACL** | **Real Estate Collateral** | **Non-Real Estate Collateral** | **Total** | **ACL** |
| SBA | $53412 | $29930 | $83342 | $11164 | $44066 | $29942 | $74008 | $12311 |
| CRE | 17765 |  | 17765 |  | 18487 |  | 18487 |  |
| C&I | 1115 | 187 | 1302 | 393 | 419 | 1408 | 1827 | 1328 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $72292 | $30117 | $102409 | $11557 | $62972 | $31350 | $94322 | $13639 |

---

Accrued interest on loans totaled $24.7 million and $22.4 million as of March 31, 2026 and December 31, 2025, respectively, and is excluded from the estimate of credit losses. The Company writes off accrued interest receivable by reversing interest income and typically occurs upon loans becoming 90 to 120 days past due.

***Loan Modifications Made to Borrowers Experiencing Financial Difficulty***

During the three months ended March 31, 2026, the Company executed 1 loan modification involving borrowers experiencing financial difficulty. No loan modifications to borrowers experiencing financial difficulty were executed during the three months ended March 31, 2025. The following table summarizes the amortized cost basis of loans that were modified:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| | **Other-Than-Insignificant Payment Delay** | **Term Extension** | **Interest Rate Reduction** | **Principal Forgiveness** | **% of Total Class of Financing Receivable** |
| SBA | $111 | $— | $— | $— | $— |
| CRE |  |  |  |  |  |
| C&I |  |  |  |  |  |
| Total Modifications | $111 | $— | $— | $— | $— |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

There were no modifications for borrowers experiencing financial difficulty that subsequently defaulted within twelve months of the modification date in the first three months of 2026 or 2025.

As of March 31, 2026, the amortized cost basis of modified loans was $111 thousand.

**Loans held for sale, at fair value**

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| SBA 504 First Lien | $234298 | $201013 |
| SBA 504 Second Lien | 35369 | 31207 |
| SBA 7(a) | 380769 | 324469 |
| C&I LA<sup>1</sup> | 98551 |  |
| ALP | 20238 | 415148 |
| Loans held for sale, at fair value | $769225 | $971837 |

---

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;C&I LA loans originated by Newtek Bank, which began during the first quarter of 2026.

The following tables summarize the aging of accrual and non-accrual loans HFS, at fair value by class:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** |
| | **Past Due and Accruing** | **Past Due and Accruing** | **Past Due and Accruing** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Accounted for Under the FV Option** |
| | **30-59 Days** | **60-89 Days** | **90+ Days**<sup>1</sup> | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Accounted for Under the FV Option** |
| SBA, at fair value | $3658 | $3274 | $16680 | $29877 | $53489 | $596946 | $650435 |
| C&I LA, at fair value<sup>2</sup> |  |  |  |  |  | 98552 | 98552 |
| ALP, at fair value |  |  |  | 9990 | 9990 | 10248 | 20238 |
| Total | $3658 | $3274 | $16680 | $39867 | $63479 | $705746 | $769225 |

---

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Loans are well collateralized and in the process of collection.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;C&I LA loans originated by Newtek Bank, which began during the first quarter of 2026.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| | **Past Due and Accruing** | **Past Due and Accruing** | **Past Due and Accruing** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Accounted for Under the FV Option** |
| | **30-59 Days** | **60-89 Days** | **90+ Days** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Accounted for Under the FV Option** |
| SBA, at fair value | $21441 | $5018 | $8713 | $12580 | $47752 | $508937 | $556689 |
| ALP, at fair value | 9049 |  |  | 11634 | 20683 | 394465 | 415148 |
| Total | $30490 | $5018 | $8713 | $24214 | $68435 | $903402 | $971837 |

---

**Loans held for sale, at LCM**

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| SBA 504 First Lien | $15898 | $19075 |
| SBA 504 Second Lien | 4497 | 7457 |
| Loans held for sale, at LCM | $20395 | $26532 |

---

The following tables summarize the aging of accrual and non-accrual loans HFS, at LCM by class:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** |
| | **Past Due and Accruing** | **Past Due and Accruing** | **Past Due and Accruing** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Carried at Amortized Cost** |
| | **30-59 Days** | **60-89 Days** | **90+ Days** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Carried at Amortized Cost** |
| SBA | $— | $— | $— | $2435 | 2435 | $17960 | $20395 |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| | **Past Due and Accruing** | **Past Due and Accruing** | **Past Due and Accruing** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Carried at Amortized Cost** |
| | **30-59 Days** | **60-89 Days** | **90+ Days** | **Non- accrual** | **Total Past Due and Non-accrual** | **Current** | **Total Carried at Amortized Cost** |
| SBA | $— | $— | $— | $2435 | $2435 | $24097 | $26532 |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**NOTE 6—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:**

**Due to/from affiliated companies**

The following table summarizes the amounts due to and due from affiliated companies as of March 31, 2026 and December 31, 2025:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Due from affiliated companies<sup>1</sup> | 100 | 100 |
| Due to affiliated companies<sup>2</sup> |  |  |
| Total due to/due from affiliated companies, net | $100 | $100 |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Included within Other assets

<sup>2&nbsp;&nbsp;&nbsp;&nbsp;</sup>Included within Accounts payable, accrued expenses, and other liabilities

**Transactions with joint ventures and other investments**

Refer to NOTE 4—INVESTMENTS for a schedule of transactions with our joint ventures and other equity investments.

The following table summarizes the income earned from our joint ventures and other investments for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Servicing income | $296 | $494 |
| Dividend income | 450 | 1687 |
| &nbsp;&nbsp;Total income | $746 | $2181 |

---

There were no expenses related to our joint ventures and other investments for the three months ended March 31, 2026 and 2025.

**Newtek Bank Deposits**

In the normal course of business, Newtek Bank holds FDIC insured deposits from certain of the Company's officers, directors and their associated companies. The following table summarizes the amounts due of deposits from related parties and their affiliated companies as of March 31, 2026 and December 31, 2025:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| FDIC insured deposits | $3875 | $4054 |
| Non-FDIC insured deposits | 330 | 322 |
| Total deposits from related parties and their affiliated companies | $4205 | $4376 |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**NOTE 7—SERVICING ASSETS:**

Servicing assets held by NSBF are measured at fair value and the Company performs valuations on a quarterly basis. Servicing assets held by Newtek Bank, including Newtek Bank's subsidiary SBL, and Newtek ALP Holdings are measured at lower of cost or market where the assets are initially recorded at fair value, then subsequently amortized, and assessed for impairment each reporting period.

The Company earns servicing fees from the guaranteed portions of SBA 7(a) loans it originates and sells, for the unguaranteed portions of SBA 7(a) loans in the NSBF sponsored securitizations, for SBA 504 loans sold where servicing is retained, and for the loan portfolios held by the TSO JV sponsored securitization and Newtek ALP Holdings and its sponsored securitizations.

The following table summarizes the unpaid principal balance of loans serviced at March 31, 2026 and December 31, 2025:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| SBA 7(a) | $1684414 | $1698866 |
| ALP  | 650946 | 345856 |
| 504 | 48216 | 48302 |
| Total loans serviced | $2383576 | $2093024 |

---

The following table summarizes the fair value and valuation assumptions related to servicing assets at March 31, 2026 and December 31, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | | | **Range** | **Range** | | | **Range** | **Range** |
|<br>**Unobservable Input** |<br>**Amount** | **Weighted**<br>**Average** | **Minimum** | **Maximum** |<br>**Amount** | **Weighted**<br>**Average** | **Minimum** | **Maximum** |
| Servicing assets at FV: | $13622 |  |  |  | $15358 |  |  |  |
| Discount factor<sup>1</sup> |  | 11.25% | 11.25% | 11.25% |  | 11.25% | 11.25% | 11.25% |
| Cumulative prepayment rate |  | 22.50% | 22.50% | 22.50% |  | 22.50% | 22.50% | 22.50% |
| Average cumulative default rate |  | 21.00% | 21.00% | 21.00% |  | 21.00% | 21.00% | 21.00% |
| Servicing assets at LCM: | 41698 |  |  |  | 29564 |  |  |  |
| Discount factor<sup>1</sup> |  | 10.66% | 10.25% | 11.25% |  | 11.27% | 10.75% | 12.00% |
| Cumulative prepayment rate |  | 33.04% | 22.50% | 50.00% |  | 33.72% | 22.50% | 50.00% |
| Average cumulative default rate |  | 17.26% | 5.00% | 21.00% |  | 16.95% | 5.00% | 21.00% |
| Total | $55320 |  |  |  | $44922 |  |  |  |

---

<sup>1</sup> Determined based on risk spreads and observable secondary market transactions.

Refer to NOTE 9—FAIR VALUE MEASUREMENTS for a rollforward of servicing assets, at fair value. The following tables show a rollforward of servicing assets, at LCM for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
| **Servicing Assets, at LCM** | **March 31, 2026** | **March 31, 2025** |
| Balance at beginning of the period | $29564 | $24195 |
| Amortization<sup>1</sup> | (4461) | (1805) |
| Additions<sup>2</sup> | 16595 | 2020 |
| Impairment assessment |  |  |
| Balance at end of the period | $41698 | $24410 |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Included within Net loss on loan servicing assets in the Consolidated Statements of Income

<sup>2&nbsp;&nbsp;&nbsp;&nbsp;</sup>Included within Net gains on sales of loans in the Consolidated Statements of Income

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

Servicing income earned for the three months ended March 31, 2026 and 2025 was as follows:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Servicing income | $6385 | $5525 |

---

**NOTE 8—GOODWILL AND INTANGIBLE ASSETS:**

**Goodwill**

In accordance with U.S. GAAP, the Company performs an annual test as of October 1 to identify potential impairment of goodwill, or more frequently if events or circumstances indicate a potential impairment may exist. If the carrying amount of a reporting unit, including goodwill, exceeds its fair value, an impairment loss is recognized in an amount equal to that excess up to the amount of the recorded goodwill. The Company performed its annual test based upon market data as of October 1, 2025 and estimates and assumptions that the Company believes most appropriate for the analysis. Based on the qualitative analysis performed in accordance with ASC 350, the Company determined it more likely than not that goodwill was not impaired as of October 1, 2025. Changes in certain assumptions used in the Company's assessment could result in significant differences in the results of the impairment test. Should market conditions or management's assumptions change significantly in the future, an impairment to goodwill is possible.

The Company considers the following to be some examples of indicators that may trigger an impairment review outside of its annual impairment review: (i) significant under-performance or loss of key contracts acquired in an acquisition relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of the acquired assets or in the Company's overall strategy with respect to the manner or use of the acquired assets or changes in the Company's overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company's fair value for a sustained period of time; and (vi) regulatory changes. In assessing the recoverability of the Company's goodwill and customer merchant accounts, the Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. These include estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company, the period over which cash flows will occur, and determination of the Company's cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and conclusions on impairment.

The following table summarizes the carrying amount of goodwill:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Banking | $271 | $271 |
| Payments | 13814 | 13814 |
| Total goodwill | $14085 | $14085 |

---

*Banking:* The goodwill in the banking segment was generated from the Acquisition, representing the excess of the purchase price over the fair value of the net assets acquired.

*Payments:* The goodwill in the payments segment was generated from acquisitions by the legal entities within this segment prior to the consolidation of those entities into NewtekOne following the Acquisition.

**Intangible Assets**

The following table summarizes intangible assets:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **At March 31, 2026** | **At March 31, 2026** | **At March 31, 2026** | **At December 31, 2025** | **At December 31, 2025** | **At December 31, 2025** |
| | Gross carrying Amount | Accumulated Amortization | Net Carrying amount | Gross carrying Amount | Accumulated Amortization | Net Carrying amount |
| Banking - Core Deposits | $1040 | $564 | $476 | $1040 | $528 | $512 |

---

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

***Core Deposits Intangible.*** CDI is a measure of the value of non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts that are acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding, relative to an alternative source of funding. The CDI relating to the NBNYC Acquisition will be amortized over an estimated useful life of 10 years using the sum of years digits depreciation method. The Company evaluates such identifiable intangibles for impairment when an indication of impairment exists.

Amortization expense for the three months ended March 31, 2026 and 2025 is as follows, and is included in Depreciation and amortization on the Consolidated Statements of Income:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Amortization expense | $36 | $41 |

---

The remaining estimated aggregate future amortization expense for intangible assets as of March 31, 2026 is as follows:

---

| | |
|:---|:---|
| | **Amortization Expense** |
| 2026 | $99 |
| 2027 | 114 |
| 2028 | 94 |
| 2029 | 73 |
| 2030 | 52 |
| Thereafter | 44 |
| Total | $476 |

---

------

**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**NOTE 9—FAIR VALUE MEASUREMENTS:**

The following tables present fair value measurements of certain of the Company's assets and liabilities measured at fair value and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values as of March 31, 2026 and December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value Measurements at March 31, 2026** | **Fair Value Measurements at March 31, 2026** | **Fair Value Measurements at March 31, 2026** | **Fair Value Measurements at March 31, 2026** | **Fair Value Measurements at March 31, 2026** |
| | **Total** | **Level 1** | | **Level 2** | **Level 3** |
| **Assets:** | | | | | |
| Debt securities available-for-sale, at fair value |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury notes | $15843 | $15843 |  | $— | $— |
| Loans held for sale, at fair value<sup>3</sup> | 769225 |  |  | 380768 | 388457 |
| Loans held for investment, at fair value<sup>3</sup> | 264011 |  |  |  | 264011 |
| Other real estate owned, at LCM<sup>1,2</sup> | 7896 |  |  |  | 7896 |
| Residuals in securitizations, at fair value<sup>3</sup> | 197501 |  |  |  | 197501 |
| Servicing assets, at fair value<sup>3</sup> | 13622 |  |  |  | 13622 |
| Joint ventures and other investments, at fair value<sup>3</sup> | 43213 | 6119 | <sup>5</sup> |  | 37094 |
| Derivative instruments<sup>2,3</sup> | 978 |  |  | 978 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets measured at fair value | $1312289 | $21962 |  | $381746 | $908581 |
| **Liabilities:** |  |  |  |  |  |
| Equity warrants<sup>3,4</sup> | $73 | $— |  | $— | $73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities measured at fair value | $73 | $— |  | $— | $73 |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Non-recurring.

<sup>2&nbsp;&nbsp;&nbsp;&nbsp;</sup>Included in Other assets on the Consolidated Statements of Financial Condition.

<sup>3&nbsp;&nbsp;&nbsp;&nbsp;</sup>Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.

<sup>4&nbsp;&nbsp;&nbsp;&nbsp;</sup>Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.

<sup>5&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes four million shares of IPM Preferred Stock valued at the closing price per share of IPM common stock of $1.53 on March 31, 2026.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Fair Value Measurements at December 31, 2025** | **Fair Value Measurements at December 31, 2025** | **Fair Value Measurements at December 31, 2025** | **Fair Value Measurements at December 31, 2025** | **Fair Value Measurements at December 31, 2025** | **Fair Value Measurements at December 31, 2025** |
| | **Total** | **Level 1** | | **Level 2** | | **Level 3** |
| **Assets:** | | | | | | |
| Debt securities available-for-sale |  |  |  |  |  |  |
| &nbsp;&nbsp;U.S. Treasury notes | $16829 | $16829 |  | $— |  | $— |
| Loans held for sale, at fair value<sup>3</sup> | 971837 |  |  | 324467 |  | 647370 |
| Loans held for investment, at fair value<sup>3</sup> | 281198 |  |  |  |  | 281198 |
| Other real estate owned, at LCM<sup>1,2</sup> | 1286 |  |  |  |  | 1286 |
| Residuals in securitizations, at fair value<sup>3</sup> | 76701 |  |  |  |  | 76701 |
| Servicing assets, at fair value<sup>3</sup> | 15358 |  |  |  |  | 15358 |
| Joint ventures and other investments<sup>3</sup> | 47719 | 6880 | <sup>5</sup> | 1983 | <sup>6</sup> | 38856 |
| Derivative instruments<sup>2,3</sup> | 737 |  |  | 737 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets measured at fair value | $1411665 | $23709 |  | $327187 |  | $1060769 |
| **Liabilities:** |  |  |  |  |  |  |
| Equity warrants<sup>3,4</sup> | $81 | $— |  | $— |  | $81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities measured at fair value | $81 | $— |  | $— |  | $81 |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Non-recurring.

<sup>2&nbsp;&nbsp;&nbsp;&nbsp;</sup>Included in Other assets on the Consolidated Statements of Financial Condition.

<sup>3&nbsp;&nbsp;&nbsp;&nbsp;</sup>Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.

<sup>4</sup>&nbsp;&nbsp;&nbsp;&nbsp;Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.

<sup>5&nbsp;&nbsp;&nbsp;&nbsp;</sup>Includes four million shares of IPM Preferred Stock valued at the closing price per share of IPM common stock of $1.72 on December 31, 2025.

<sup>6</sup> &nbsp;&nbsp;&nbsp;&nbsp;Includes the Biller Genie investment valued at the price that settled in January 2026.

------

**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

The following tables represents the changes in the assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three months ended March 31, 2026 and 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
| | **Loans HFI, <br>at FV** | **Loans HFS, <br>at FV** | **Joint Ventures and Other Investments** | **Residuals in Securitizations, at FV** | **Servicing Assets, <br>at FV** | **Equity Warrants**<sup>1</sup> |
| Fair value, December 31, 2025 | $281198 | $647370 | $38856 | $76701 | $15358 | $81 |
| Sales | 98 | (345340) |  |  |  |  |
| Principal payments received | (15119) | (3903) |  |  |  |  |
| Foreclosed real estate acquired | (1178) |  |  |  |  |  |
| SBA loans, funded |  | 35580 |  |  |  |  |
| C&I LA loans, funded<sup>3</sup> |  | 85700 |  |  |  |  |
| Purchases and repurchases of loans | 2987 | 22179 |  |  |  |  |
| Residuals in securitizations, notional |  |  |  | 47176 |  |  |
| Change in valuation due to: |  |  |  |  |  |  |
| &nbsp;&nbsp;Changes in valuation inputs or assumptions | 1629 | (53129) | (1762) | 73624 |  | (8) |
| &nbsp;&nbsp;Other factors | (5604) |  |  |  | (1736) |  |
| Fair value, March 31, 2026 | $264011 | $388457 | $37094 | $197501 | $13622 | $73 |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.

<sup>2&nbsp;&nbsp;&nbsp;&nbsp;</sup>Included in Other assets on the Consolidated Statements of Financial Condition.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;Newtek Bank began originating C&I LA loans, also known as ALP loans, during the first quarter of 2026.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
| | **Loans HFI, at FV** | **Loans HFS, <br>at FV** | **Joint Ventures and Other Investments** | **Servicing Assets,<br>at FV** | **Equity Warrants**<sup>1</sup> |
| Fair value, December 31, 2024 | $369746 | $372286 | $57678 | $22062 | $133 |
| Reclass between loans at FV and LCM |  | 20949 |  |  |  |
| Reclass between loans HFS and HFI |  | (2550) |  |  |  |
| Sales | 33 | (109246) |  |  |  |
| Principal payments received | (18606) | (1667) |  |  |  |
| Foreclosed real estate acquired | (705) |  |  |  |  |
| SBA loans, funded |  | 177030 |  |  |  |
| ALP loans, funded |  | 68500 |  |  |  |
| Additions<sup>3</sup> |  |  | 3508 |  |  |
| Purchases and repurchases of loans | 905 |  |  |  |  |
| Capital contributions/(distributions) |  |  | (14) |  |  |
| Change in valuation due to: |  |  |  |  |  |
| &nbsp;&nbsp;Changes in valuation inputs or assumptions | (24) | 22656 | 1110 |  | (31) |
| &nbsp;&nbsp;Other factors | (4555) |  |  | (1847) |  |
| Fair Value, March 31, 2025 | $346794 | $547958 | $62282 | $20215 | $102 |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition. 

<sup>2&nbsp;&nbsp;&nbsp;&nbsp;</sup>Included in Other assets on the Consolidated Statements of Financial Condition.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;Investment in IPM.

------

**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

The following tables provide a summary of quantitative information about the Company's Level 3 fair value measurements as of March 31, 2026 and December 31, 2025. In addition to the inputs noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The tables below are not intended to be all-inclusive but rather provide information on the significant Level 3 inputs as they relate to the Company's fair value measurements at March 31, 2026 and December 31, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Range** | **Range** |
| | **Fair Value as of**<br>**March 31, 2026** |<br>**Unobservable Input** | **Weighted**<br>**Average** | **Minimum** | **Maximum** |
| **Assets:** | | | | | |
| Loans HFI, at FV - accrual | $193292 | Market yields | 6.05% | 6.05% | 6.05% |
|  |  | Cumulative prepayment rate | 22.50% | 22.50% | 22.50% |
|  |  | Average cumulative default rate | 21.00% | 21.00% | 21.00% |
| Loans HFI, at FV - non-accrual | $70719 | Market yields | 7.00% | 7.00% | 7.00% |
|  |  | Average cumulative default rate | 30.00% | 30.00% | 30.00% |
| Loans HFS, at FV | $388457 | Market yields | 7.04% | 6.62% | 8.32% |
|  |  | Cumulative prepayment rate | 53.06% | 50.00% | 60.00% |
|  |  | Average cumulative default rate | 8.06% | 5.00% | 15.00% |
| Joint ventures and other investments | $37094 | Market yields | 7.87% | 7.82% | 8.32% |
|  |  | Cost of equity | 14.00% | 12.00% | 16.00% |
|  |  | Weighted average cost of capital | 8.00% | 6.00% | 10.00% |
| Residuals in securitizations, at FV | $197501 | Market yields | 7.82% | 7.82% | 7.82% |
|  |  | Cost of equity | 14.00% | 12.00% | 16.00% |
|  |  | Weighted average cost of capital | 8.00% | 6.00% | 10.00% |
| Servicing assets, at FV<sup>1</sup> | $13622 | Market yields | 11.25% | 11.25% | 11.25% |
|  |  | Cumulative prepayment rate | 22.50% | 22.50% | 22.50% |
|  |  | Average cumulative default rate | 21.00% | 21.00% | 21.00% |
| **Liabilities:** |  |  |  |  |  |
| Equity warrants | $73 | Expected volatility | 45.00% | 45.00% | 45.00% |
|  |  | Dividend yield | 6.70% | 6.70% | 6.70% |
|  |  | Risk free rate | 3.95% | 3.95% | 3.95% |

---

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;$13.6 million of servicing assets held at FV and $41.7 million of servicing assets held at LCM. Refer to NOTE 7—SERVICING ASSETS.

------

**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Range** | **Range** |
| | **Fair Value as of**<br>**December 31, 2025** |<br>**Unobservable Input** | **Weighted**<br>**Average** | **Minimum** | **Maximum** |
| **Assets:** | | | | | |
| Loans HFI, at FV - accrual | $208655 | Market yields | 6.55% | 6.55% | 6.55% |
|  |  | Cumulative prepayment rate | 22.50% | 22.50% | 22.50% |
|  |  | Average cumulative default rate | 21.00% | 21.00% | 21.00% |
| Loans HFI, at FV - non-accrual | $72543 | Market yields | 7.00% | 7.00% | 7.00% |
|  |  | Average cumulative default rate | 30.00% | 30.00% | 30.00% |
| Loans HFS, at FV | $647370 | Market yields | 7.19% | 6.43% | 8.13% |
|  |  | Cumulative prepayment rate | 56.17% | 50.00% | 60.00% |
|  |  | Average cumulative default rate | 11.17% | 5.00% | 15.00% |
| Joint ventures and other investments | $38856 | Market yields | 7.40% | 6.71% | 12.49% |
|  |  | Cost of equity | 14.00% | 12.00% | 16.00% |
|  |  | Weighted average cost of capital | 9.00% | 7.00% | 11.00% |
| Residuals in securitizations, at FV | $76701 | Market yields | 7.58% | 7.58% | 7.58% |
|  |  | Cost of equity | 14.00% | 12.00% | 16.00% |
|  |  | Weighted average cost of capital | 9.00% | 7.00% | 11.00% |
| Servicing assets, at FV<sup>1</sup> | $15358 | Market yields | 11.25% | 11.25% | 11.25% |
|  |  | Cumulative prepayment rate | 22.50% | 22.50% | 22.50% |
|  |  | Average cumulative default rate | 21.00% | 21.00% | 21.00% |
| **Liabilities:** |  |  |  |  |  |
| Equity warrants | $81 | Expected volatility | 45.00% | 45.00% | 45.00% |
|  |  | Dividend yield | 6.70% | 6.70% | 6.70% |
|  |  | Risk free rate | 3.95% | 3.95% | 3.95% |

---

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;$15.4 million of servicing assets held at FV and $29.6 million of servicing assets held at LCM. Refer to NOTE 7—SERVICING ASSETS.

------

**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

***<u>Estimated Fair Value of Other Financial Instruments</u>***

GAAP also requires disclosure of the fair value of financial instruments carried at book value on the Consolidated Statements of Financial Condition. The carrying amounts and estimated fair values of the Company's financial instruments not measured at fair value on a recurring or non-recurring basis are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| | **Carrying Amount** | **Fair Value Amount by Level:** | **Fair Value Amount by Level:** | **Fair Value Amount by Level:** | **Total Fair Value** |
| | **Carrying Amount** | **Level 1** | **Level 2** | **Level 3** | **Total Fair Value** |
| **Financial Assets:** | | | | | |
| &nbsp;&nbsp;Cash and due from banks | $5222 | $5222 | $— | $— | $5222 |
| &nbsp;&nbsp;Restricted cash | 22195 | 22195 |  |  | 22195 |
| &nbsp;&nbsp;Interest bearing deposits in banks | 375599 | 375599 |  |  | 375599 |
| &nbsp;&nbsp;Loans HFS, at LCM | 20395 |  |  | 20395 | 20395 |
| &nbsp;&nbsp;Loans HFI, at amortized cost, net of deferred fees and costs | 988269 |  |  | 1113501 | 1113501 |
| &nbsp;&nbsp;Federal Home Loan Bank and Federal Reserve Bank stock | 4572 |  | 4572 |  | 4572 |
| **Financial Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;Time deposits | 496910 |  | 497642 |  | 497642 |
| &nbsp;&nbsp;Borrowings | 550471 |  | 194207 | 361719 | 555926 |
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Carrying Amount** | **Fair Value Amount by Level:** | **Fair Value Amount by Level:** | **Fair Value Amount by Level:** | **Total Fair Value** |
|  | **Carrying Amount** | **Level 1** | **Level 2** | **Level 3** | **Total Fair Value** |
| **Financial Assets:** |  |  |  |  |  |
| &nbsp;&nbsp;Cash and due from banks | $4196 | $4196 | $— | $— | $4196 |
| &nbsp;&nbsp;Restricted cash | 26477 | 26477 |  |  | 26477 |
| &nbsp;&nbsp;Interest bearing deposits in banks | 279618 | 279618 |  |  | 279618 |
| &nbsp;&nbsp;Loans HFS, at LCM | 26532 |  |  | 26532 | 26532 |
| &nbsp;&nbsp;Loans HFI, at amortized cost, net of deferred fees and costs | 896689 |  |  | 1012200 | 1012200 |
| &nbsp;&nbsp;Federal Home Loan Bank and Federal Reserve Bank stock | 4234 |  | 4234 |  | 4234 |
| **Financial Liabilities:** |  |  |  |  |  |
| &nbsp;&nbsp;Time deposits | 439805 |  | 440688 |  | 440688 |
| &nbsp;&nbsp;Borrowings | 819888 |  | 283999 | 543999 | 827998 |

---

------

**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

The fair values of the components of Borrowings are included in the chart below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| | Closing Price | Fair Value | Closing Price | Fair Value |
| Public Parent Company Notes<sup>1</sup>: |  |  |  |  |
| &nbsp;&nbsp;2026 Notes (5.50%)<sup>2</sup> | $— | $— | $25.19 | $95722 |
| &nbsp;&nbsp;2028 Notes (8.00%) | 25.05 | 40080 | 25.20 | 40320 |
| &nbsp;&nbsp;2029 Notes (8.50%) | 24.67 | 70860 | 25.16 | 72267 |
| &nbsp;&nbsp;2029 Notes (8.625%) | 25.13 | 75390 | 25.23 | 75690 |
| &nbsp;&nbsp;2031 Notes (8.50%) | 25.00 | 7877 |  |  |
| Subtotal (Level 2) |  | $194207 |  | $283999 |
| Private Parent Company Notes<sup>3</sup> |  | $117998 |  | $102758 |
| Securitizations<sup>4</sup> |  | 113944 |  | 127050 |
| FHLB Borrowings<sup>4</sup> |  | 6832 |  | 7349 |
| Other Bank Borrowings<sup>4</sup> |  | 122945 |  | 306842 |
| Subtotal (Level 3) |  | $361719 |  | $543999 |
| Total Borrowings |  | $555926 |  | $827998 |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Fair values are based on the closing public share price on the date of measurement.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;On February 1, 2026, the 2026 Notes matured.

<sup>3&nbsp;&nbsp;&nbsp;&nbsp;</sup>Not recorded at fair value on a recurring basis. The fixed rate private Notes are held at par as of March 31, 2026 and December 31, 2025. Fair value calculations are performed based on implied treasury rates as of year end.

<sup>4&nbsp;&nbsp;&nbsp;&nbsp;</sup>Fair value is calculated as the Borrowings Outstanding. Refer to NOTE 11—BORROWINGS.

------

**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**NOTE 10—DEPOSITS:**

The following table summarizes deposits by type:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Non-interest-bearing: |  |  |
| Demand | $71629 | $53873 |
| Interest-bearing: |  |  |
| Checking | 170871 | 150025 |
| Money market | 104092 | 93341 |
| Savings | 1015371 | 681364 |
| Time deposits | 496910 | 439805 |
| Total interest-bearing | 1787244 | 1364535 |
| Total deposits | $1858873 | $1418408 |

---

---

| | | |
|:---|:---|:---|
| Time deposits, money market, and interest-bearing checking obtained through brokers | $69465.0 | $70015.0 |
| Aggregate amount of deposit accounts that exceeded the FDIC limit | $424385.0 | $394346.0 |
| Deposit overdrafts reclassified as loan balances | $90.0 | $142.0 |
| Certificates of deposit in excess of $0.25 million | $108583.0 | $92372.0 |

---

The following table summarizes the scheduled maturities of time deposits:

---

| | |
|:---|:---|
| 2026 | $382411 |
| 2027 | 66671 |
| 2028 | 22268 |
| 2029 | 16691 |
| 2030 | 8725 |
| Thereafter | 144 |
| Total time deposits | $496910 |

---

------

**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**NOTE 11—BORROWINGS:**

At March 31, 2026 and December 31, 2025, the Company had borrowings composed of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Commitments** | **Borrowings Outstanding** | **Weighted Avg Interest Rate** | **Commitments** | **Borrowings Outstanding** | **Weighted Avg Interest Rate** |
| Secured Borrowings: |  |  |  |  |  |  |
| &nbsp;&nbsp;Notes payable - Securitization Trusts<sup>1,2</sup> | $115541 | $113944 | 6.27% | $128827 | $127050 | 6.42% |
| &nbsp;&nbsp;NMS Goldman Facility<sup>2</sup> | 95000 | 88201 | 9.17% | 95000 | 88352 | 9.42% |
| &nbsp;&nbsp;SPV I Capital One Facility<sup>2,3</sup> |  |  | —% | 100000 | 16085 | 6.59% |
| &nbsp;&nbsp;SPV II Deutsche Bank Facility<sup>2</sup> | 170000 | 4532 | 7.12% | 170000 | 169146 | 7.32% |
| &nbsp;&nbsp;SPV III One Florida Bank Facility<sup>2</sup> | 35000 | 30212 | 7.75% | 35000 | 33259 | 7.75% |
| &nbsp;&nbsp;FHLB Advances | 14000 | 6832 | 2.70% | 14000 | 7349 | 2.75% |
| Total Secured Borrowings | 429541 | 243721 | 7.42% | 542827 | 441241 | 7.82% |
| Unsecured Borrowings<sup>2</sup>: |  |  |  |  |  |  |
| &nbsp;&nbsp;2026 Notes<sup>4,6</sup> |  |  | —% | 95000 | 95000 | 5.50% |
| &nbsp;&nbsp;2027 Notes<sup>5</sup> | 50000 | 49975 | 8.125% | 50000 | 49967 | 8.125% |
| &nbsp;&nbsp;&nbsp;&nbsp;2028 Notes | 40000 | 39160 | 8.00% | 40000 | 39073 | 8.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;2029 Notes | 71808 | 70193 | 8.50% | 71808 | 70066 | 8.50% |
| &nbsp;&nbsp;2029 Notes  | 75000 | 73272 | 8.625% | 75000 | 73150 | 8.625% |
| &nbsp;&nbsp;2030 Notes<sup>4</sup> | 52000 | 51427 | 8.375% | 52000 | 51391 | 8.38% |
| &nbsp;&nbsp;2031 Notes<sup>6</sup> | 7877 | 7808 | 8.50% |  |  | —% |
| &nbsp;&nbsp;2033 Notes | 15000 | 14915 | 8.375% |  |  | —% |
| Total Unsecured Borrowings | 311685 | 306750 | 8.379% | 383808 | 378647 | 7.35% |
| Total Borrowings | $741226 | $550471 | 7.95% | $926635 | $819888 | 7.53% |

---

At March 31, 2026 and December 31, 2025, outstanding borrowings that are presented net of deferred financing costs consisted of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | **Principal balance** | **Unamortized deferred financing costs** | **Net carrying amount**<sup>1</sup> | **Principal balance** | **Unamortized deferred financing costs** | **Net carrying amount**<sup>1</sup> |
| Secured Borrowings: |  |  |  |  |  |  |
| &nbsp;&nbsp;Notes Payable - Securitization Trusts<sup>1,2</sup> | $115541 | $(1597) | $113944 | $128828 | $(1778) | $127050 |
| &nbsp;&nbsp;NMS Goldman Facility<sup>2</sup> | 89550 | (1349) | 88201 | 89775 | (1423) | 88352 |
| &nbsp;&nbsp;SPV I Capital One Facility<sup>2,3</sup> |  |  |  | 16600 | (515) | 16085 |
| &nbsp;&nbsp;SPV II Deutsche Bank Facility<sup>2</sup> | 5096 | (564) | 4532 | 169791 | (645) | 169146 |
| &nbsp;&nbsp;SPV III One Florida Bank Facility<sup>2</sup> | 30249 | (37) | 30212 | 33300 | (41) | 33259 |
| Unsecured Borrowings: |  |  |  |  |  |  |
| &nbsp;&nbsp;2026 Notes (5.50%)<sup>4,6</sup> |  |  |  | 95000 |  | 95000 |
| &nbsp;&nbsp;2027 Notes (8.125%)<sup>5</sup> | 50000 | (25) | 49975 | 50000 | (33) | 49967 |
| &nbsp;&nbsp;2028 Notes (8.00%) | 40000 | (840) | 39160 | 40000 | (927) | 39073 |
| &nbsp;&nbsp;2029 Notes (8.50%) | 71808 | (1615) | 70193 | 71808 | (1742) | 70066 |
| &nbsp;&nbsp;2029 Notes (8.625%)  | 75000 | (1728) | 73272 | 75000 | (1850) | 73150 |
| &nbsp;&nbsp;2030 Notes (8.375%)<sup>4</sup> | 52000 | (573) | 51427 | 52000 | (609) | 51391 |
| &nbsp;&nbsp;2031 Notes (8.50%)<sup>6</sup> | 7877 | (69) | 7808 |  |  |  |
| &nbsp;&nbsp;2033 Notes (8.375%) | 15000 | (85) | 14915 |  |  |  |

---

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;Non-recourse.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Net of deferred financing costs.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;On March 25, 2026 the SPV I Capital One Facility was fully repaid and terminated.

------

**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

<sup>4&nbsp;&nbsp;&nbsp;&nbsp;</sup>On October 21, 2025, the Company entered into agreements with two institutional investors that were existing holders of the Company's 2026 Notes to exchange $20.0 million in total principal amount of the Company's 2026 Notes held by such investors for an equal principal amount of the Company's 2030 Notes. One of the investors also agreed to purchase $2.0 million in newly issued additional principal amount of the Company's 2030 Notes. The transactions were conducted pursuant to exemptions from the registration requirements of the Securities Act. On February 1, 2026, the 2026 Notes matured.

<sup>5</sup>&nbsp;&nbsp;&nbsp;&nbsp;Effective December 11, 2024, the Company entered into the Amendment and Exchange Agreements with each of the holders of the 2025 8.125% Notes, pursuant to which the Company and the holders of the 2025 8.125% Notes agreed to exchange the 2025 8.125% Notes for the 2027 Notes, effecting amendments solely to (i) extend the February 1, 2025 maturity date of the 2025 8.125% Notes to the new maturity date of February 1, 2027 (the "New Maturity Date") and (ii) provide that the 2027 Notes will be redeemable in whole, but not in part, at any time, at the option of the Company, from November 1, 2026 to the New Maturity Date, at a redemption price of 100% of the outstanding principal amount being redeemed plus any accrued but unpaid interest, to but excluding the redemption date.

<sup>6&nbsp;&nbsp;&nbsp;&nbsp;</sup>On January 28, 2026, $7.9 million of 2026 Notes were tendered and exchanged for 2031 Notes in response to the Company's offer to exchange the 2026 Notes for newly issued 2031 Notes. The 2031 Notes bear interest at a rate of 8.50% per year payable quarterly on February 1, May 1, August 1 and November 1 of each year, will mature on February 1, 2031. On February 1, 2026, the Company repaid the remaining $87.1 million aggregate principal amount of 2026 Notes outstanding on the 2026 Notes maturity date.

***2033 Notes***

On February 18, 2026, the Company completed an exempt offering of $15.0 million aggregate principal amount of its 8.375% Notes due 2033 (the " 2033 Notes" and the "Offering"). The Offering was consummated pursuant to the terms of a purchase agreement (the "Purchase Agreement") dated February 17, 2026 between the Company and an institutional accredited investor (the "Purchaser"). The Purchase Agreement provided for the Note to be issued to the Purchaser in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"). The Company relied upon this exemption from registration based in part on representations made by the Purchaser. The 2033 Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The net proceeds from the sale of the 2033 Notes were approximately $14.9 million. The Company intends to use the net proceeds from the sale of the 2033 Notes for general corporate purposes.

The 2033 Notes will mature on March 1, 2033. The 2033 Notes may be redeemed by the Company, at its option, at a make-whole price at any time prior to January 1, 2033, or at a price equal to 100% of the principal amount of the 2033 Notes to be redeemed, plus accrued and unpaid interest, if any, thereafter. The 2033 Notes bear interest at a rate of 8.375% per year payable semiannually on February 1 and August 1 each year, beginning on August 1, 2026. The 2033 Notes will be the Company's direct unsecured obligation and ranks pari passu, or equal, with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The 2033 Notes will be effectively subordinated to the Company's existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness, and structurally subordinated to all existing and future indebtedness and other obligations of any of the Company's subsidiaries. At March 31, 2026, the Company was in compliance with all covenants related to the 2033 Notes.

***2031 Notes***

On January 28, 2026, the Company closed on its offer to exchange any and all of its 2026 Notes for its newly issued 2031 Notes, and thereby exchanged $7.9 million in aggregate principal amount of outstanding 2026 Notes for an equal principal amount of 2031 Notes. The 2031 Notes bear interest at a rate of 8.50% per year payable quarterly on February 1, May 1, August 1 and November 1 of each year, will mature on February 1, 2031, and may be redeemed at the Company's option, in whole or in part at any time or from time to time on or after February 1, 2028 at a redemption price of 100% of the outstanding principal amount of the 2031 Notes to be redeemed plus accrued and unpaid interest payments otherwise payable thereon for the then-current quarterly interest period accrued to, but excluding, the date fixed for redemption. The 2031 Notes trade on the Nasdaq Global Market under the trading symbol "NEWTO." At March 31, 2026, the Company was in compliance with all covenants related to the 2031 Notes.

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**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

***2026 Notes***

In January 2021, the Company closed a public offering of $115.0 million aggregate principal amount of 5.50% Notes due 2026. The sale of the 2026 Notes generated proceeds of approximately $111.3 million, net of underwriter's fees and expenses. On October 21, 2025, the Company entered into agreements with two institutional investors that were existing holders of the Company's 2026 Notes to exchange $20.0 million in total principal amount of the Company's 2026 Notes held by such investors for an equal principal amount of the Company's 2030 Notes. The transactions were conducted pursuant to exemptions from the registration requirements of the Securities Act. On January 28, 2026, $7.9 million of 2026 Notes were tendered and exchanged for 2031 Notes in response to the Company's offer to exchange the 2026 Notes for newly issued 2031 Notes. Refer to 2031 Notes above for further detail.

On February 1, 2026, the Company repaid the remaining $87.1 million aggregate principal amount of 2026 Notes outstanding on the 2026 Notes maturity date.

**SPV I Facility**

Newtek ALP Holdings' subsidiary (our indirect subsidiary) SPV I maintained a credit facility with a third party lender. SPV I had a Capital One facility with maximum borrowings of $60.0 million. Capital One's commitment was scheduled to terminate in July 2027, with all amounts due under the SPV I Facility maturing in August 2028. On March 25, 2026 the SPV I Capital One Facility was fully repaid and terminated.

Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the three months ended March 31, 2026 and 2025 were as follows:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2025** |
| Total interest expense | $13745 | $14112 |

---

**NOTE 12—DERIVATIVE INSTRUMENTS:**

The Company historically uses derivative instruments primarily to economically manage the fair value variability of certain fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. The following is a breakdown of the derivatives outstanding as of March 31, 2026 and December 31, 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | | **Fair Value** | **Fair Value** | | | **Fair Value** | **Fair Value** | |
|<br>**Contract Type** |<br>**Notional**<sup>1</sup> | **Asset**<sup>2</sup> | **Liability**<sup>3</sup> | **Remaining**<br>**Maturity (years)** |<br>**Notional**<sup>1</sup> | **Asset**<sup>2</sup> | **Liability**<sup>3</sup> | **Remaining**<br>**Maturity (years)** |
| 5-year Treasury Futures | $(107426) | $978 | $— | 0.25 years | $(211805) | $737 | $— | 0.25 years |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Shown as a negative number when the position is sold short.

<sup>2</sup> &nbsp;&nbsp;&nbsp;&nbsp;Shown in Other assets in the accompanying Consolidated Statements of Financial Condition.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;Shown in Accounts payable, accrued expenses, and other liabilities in the accompanying Consolidated Statements of Financial Condition.

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**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

The following table indicates the net realized gains (losses) and unrealized appreciation (depreciation) on derivatives as included in Other Noninterest Income in the consolidated statements of income for the three months ended March 31, 2026, and 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
|<br>**Contract Type** | **Unrealized Appreciation/(Depreciation)** | **Realized Gain/(Loss)** | **Unrealized Appreciation/(Depreciation)** | **Realized Gain/(Loss)** |
| 5-year Treasury Futures | $240 | $415 | $(1755) | $(869) |

---

Collateral posted with our futures counterparty is segregated in the Company's books and records. Historically, the Company's counterparty has held cash margin as collateral for derivatives, which is included in restricted cash in the consolidated balance sheets. Interest rate futures are centrally cleared by the Chicago Mercantile Exchange ("CME") through a futures commission merchant. The Company is required to post initial margin and daily variation margin for interest rate futures that are centrally cleared by CME. CME determines the fair value of our centrally cleared futures, including daily variation margin. Variation margin pledged on the Company's centrally cleared interest rate futures is settled against the realized results of these futures.

**NOTE 13—COMMITMENTS AND CONTINGENCIES:**

***Operating and Employment Commitments***

The Company leases office space and other office equipment in several states under operating lease agreements which expire at various dates through 2030. Those office space leases which are for more than one year generally contain scheduled rent increases or escalation clauses. In addition, during 2026, the Company entered into one-year employment agreements with its named executive officers.

***Lease Terminations***

On April 10, 2025, NSBF entered into a Lease Termination and Surrender Agreement with respect to office space leased at 1981 Marcus Avenue, Lake Success, NY 11042, which lease had an expiration date of March 31, 2027, to terminate the lease effective April 30, 2025. In addition, on April 11, 2025, NSBF entered into an Early Termination Agreement to terminate an additional lease for office space at 1985 Marcus Avenue, Lake Success, NY 11042, which lease had an expiration date of March 31, 2027, to terminate the lease effective April 11, 2025.

The following summarizes the Company's obligations and commitments, as of March 31, 2026 for future minimum cash payments required under operating leases and employment agreements with the Company's named executive officers:

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| | | | |
|:---|:---|:---|:---|
| **<u>Year</u>** | **Operating Leases** | **Employment Agreements** | **Total** |
| 2026 | $492 | $2106 | $2598 |
| 2027 | 552 | 702 | 1254 |
| 2028 | 476 |  | 476 |
| 2029 | 367 |  | 367 |
| 2030 | 225 |  | 225 |
| Thereafter | 2012 |  | 2012 |
| Total | $4124 | $2808 | $6932 |

---

***Legal Matters***

The Company and its subsidiaries are routinely subject to actual or threatened legal proceedings, including litigation and regulatory matters, arising in the ordinary course of business. Litigation matters range from individual actions involving a single plaintiff to class action lawsuits and can involve claims for substantial or indeterminate alleged damages or for injunctive or other relief. Regulatory investigations and enforcement matters may involve formal or informal proceedings and other inquiries initiated by various governmental agencies, law enforcement authorities, and self-regulatory organizations, and can result in fines, penalties, restitution, changes to the Company's business practices, and other related costs, including reputational damage. At any given time, these legal proceedings are at varying stages of adjudication, arbitration, or investigation, and may relate to a variety of topics.

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**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

Assessment of exposure that could result from legal proceedings is complex because these proceedings often involve inherently unpredictable factors, including, but not limited to, the following: whether the proceeding is in early stages; whether damages or the amount of potential fines, penalties, and restitution are unspecified, unsupported, or uncertain; whether there is a potential for punitive or other pecuniary damages; whether the matter involves legal uncertainties, including novel issues of law; whether the matter involves multiple parties and/or jurisdictions; whether discovery or other investigation has begun or is not complete; whether material facts may be disputed or unsubstantiated; whether meaningful settlement discussions have commenced; and whether the matter involves class allegations. As a result of these complexities, the Company may be unable to develop an estimate or range of loss.

The Company evaluates legal proceedings based on information currently available, including advice of counsel. The Company establishes accruals for those matters, pursuant to ASC 450, when a loss is considered probable and the related amount is reasonably estimable. While the final outcomes of legal proceedings are inherently unpredictable, management is currently of the opinion that the outcomes of pending and threatened matters will not have a material effect on the Company's business, consolidated financial position, results of operations or cash flows as a whole.

As available information changes, the matters for which the Company is able to estimate, as well as the estimates themselves, will be adjusted accordingly. The Company's estimates are subject to significant judgment and uncertainties, and the matters underlying the estimates will change from time to time. In the event of unexpected future developments, it is possible that an adverse outcome in any such matter could be material to the Company's business, consolidated financial position, results of operations, or cash flows as a whole for any particular reporting period of occurrence.

In addition. as a result of a litigation brought by the Federal Trade Commission (the "FTC") in October 2012, NMS voluntarily entered into, and continues to operate under, a permanent injunction with respect to certain of its business practices.

***Unfunded Commitments***

At March 31, 2026 and 2025, the Company had unfunded commitments as follows that the Company anticipates funding from the same sources it used to fund its other loan commitments:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2025** |
| SBA 7(a) loans | $43234 | $20766 |
| SBA 504 loans | 56904 | 70529 |
| C&I loans | 5657 | 5763 |
| Total unfunded commitments | $105795 | $97058 |

---

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**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**NOTE 14—SHAREHOLDERS EQUITY:**

**Preferred Stock**

***Series A Preferred Stock***

On February 3, 2023, the Company entered into a Securities Purchase Agreement (the "Securities Purchase Agreement") with Patriot Financial Partners IV, L.P., and Patriot Financial Partners Parallel IV, L.P. (collectively, "Patriot") in respect of 20 thousand shares of the Company's Series A Convertible Preferred Stock, par value $0.02 per share (the "Series A Preferred Stock"), in a private placement transaction. The aggregate purchase price was $20.0 million. Each share of Series A Preferred Stock was issued at a price of $1.0 thousand per share and was convertible at Patriot's option into 47.54 shares of the Company's Common Stock. The Company had not issued preferred stock prior to February 3, 2023.

On September 16, 2025, the Company entered into a Securities Purchase and Exchange Agreement (the "Purchase and Exchange Agreement") with Patriot, pursuant to which Patriot exchanged (i) the 20 thousand outstanding shares of the Company's Series A Preferred Stock originally issued to Patriot for an aggregate purchase price of $20.0 million and (ii) $10 million in cash, for 2,307,692 shares of the Company's Common Stock (the "Shares"). Patriot is subject to restrictions on transferring the Shares for two years following the date of the Purchase and Exchange Agreement without the Company's consent, subject to certain customary exceptions.

***Series B Preferred Stock***

On August 20, 2025, the Company closed an offering of 2,000,000 depository shares (the "Depository Shares"), each representing a 1/40th interest in a share of the Company's 8.50% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B (the "Series B Preferred Stock"), with a liquidation preference of $1,000 per share (equivalent to $25.00 per Depositary Share). The offering generated approximately $48.357 million in net proceeds to the Company. The newly issued Series B Preferred Stock will pay (and the holders of the Depository Shares will correspondingly receive) a non-cumulative 8.50% per annum cash dividend (payable quarterly when, as and if declared by the Company's Board, on January 1, April 1, July 1 and October 1 of each year, beginning on October 1, 2025) through October 1, 2030, at which time the dividend rate will reset based on the five-year US treasury rate on the relevant determination date plus a fixed spread and thereafter will reset on the fifth anniversary of the preceding reset date, with the dividend rate determined in the same manner. The Depository Shares are listed on the Nasdaq Global Market<sup>®</sup> under the ticker symbol "NEWTP." The Company has not subsequently issued any preferred stock.

**Warrants for Common Stock**

On February 3, 2023, pursuant to the Securities Purchase Agreement, the Company issued warrants to Patriot to purchase, in the aggregate, 47.54 thousand shares of Common Stock for $21.03 per share. The Warrants are exercisable in whole or in part until the ten year anniversary of the entry into the Securities Purchase Agreement and may be exercised for cash or on a "net share" basis, with the number of shares withheld determined based on the closing price of the Common Stock on the date of such exercise. Warrants are included in Accounts payable, accrued expenses and other liabilities on the Consolidated Statements of Financial Condition.

**Common Stock**

***Equity ATM Program***

The Company's shelf registration statement on Form S-3 was declared effective by the SEC on July 27, 2023. On November 17, 2023, the Company entered into an ATM equity distribution agreement (the "Original ATM Equity Distribution Agreement"), which provided that the Company may offer and sell up to 3.0 million shares of Common Stock from time to time through the placement agents thereunder (the "Equity ATM Program"). The Original ATM Equity Distribution Agreement was amended and restated on June 6, 2025 (the "Amended and Restated Equity Distribution Agreement") and provides that the Company may offer and sell up to 5.0 million shares of Common Stock from time to time through the placement agents thereunder (inclusive of shares of Common Stock sold under the Original ATM Distribution Agreement) and added certain additional placement agents. The Company may, subject to market conditions, engage in activity under the Equity ATM Program.

There was no activity under the Equity ATM Program during the three months ended March 31, 2026 and 2025.

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**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

***Debt ATM Program***

On March 13, 2026, the Company entered into a Securities Distribution Agreement (the "Securities Distribution Agreement"), by and among the Company and the Placement Agents defined therein. Pursuant to the Securities Distribution Agreement, the Company may offer and sell up to $50.0 million aggregate principal amount (with respect to the Notes (as defined below)) and liquidation preference (with respect to the Depositary Shares (as defined below)) of its 8.50% Fixed Rate Senior Notes due 2029 (the "8.50% 2029 Notes"), 8.625% Fixed Rate Senior Notes due 2029 (the "8.625% 2029 Notes") and/or 8.50% Fixed Rate Senior Notes due 2031 (the "2031 Notes," and, together with the 8.50% 2029 Notes and the 8.625% 2029 Notes, the "Notes") and its Depositary Shares, each representing a 1/40th interest in a share of 8.50% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock (the "Depositary Shares," and, together with the Notes, the "Securities") from time to time through the Placement Agents acting as its sales agents in "at the market offerings" as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on or through Nasdaq Global Market<sup>®</sup> or any other existing trading market in the United States for the Company's Securities, sales made to or through a market maker other than on an exchange or otherwise, directly to the Placement Agents as principals, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices and/or in any other method permitted by law. The Securities Distribution Agreement became effective as of March 12, 2026.

There was no activity under the Securities Distribution Agreement during the three months ended March 31, 2026.

**Stock and Debt Repurchase Programs**

On November 1, 2024, the Company's Board of Directors approved a new stock repurchase program granting the Company authority to repurchase up to 1.0 million shares of Company common stock during the following twelve months. On November 7, 2025, the Company's Board of Directors approved a twelve month extension of the stock repurchase program. The actual timing and amount of any repurchases under the plan will be determined by the Company in its discretion, and will depend on a number of factors, including market conditions, applicable legal requirements, the Company's capital needs and whether there is a better alternative use of capital. The Company has no obligation to repurchase any amount of its common stock under its new stock repurchase program.

There was no activity under the stock repurchase program during the three months ended March 31, 2026 and 2025.

In addition, on September 11, 2025, the Board approved a debt repurchase program granting the Company authority to repurchase up to $5.0 million aggregate principal amount of the Company's 2029 Notes during the following six months. The actual timing and amount of any repurchases under the plan will be determined by the Company in its discretion, and will depend on a number of factors, including market conditions, applicable legal requirements, the Company's capital needs and whether there is a better alternative use of capital. The Company has no obligation to repurchase any amount of its debt securities under this debt repurchase program.

On April 24, 2026, the Board approved a debt repurchase program granting the Company authority to repurchase up to $5.0 million aggregate principal amount of the Company's 2028 Notes and 2029 Notes during the following twelve months. Refer to NOTE 19—SUBSEQUENT EVENTS for additional information.

There was no activity under the debt repurchase program during the three months ended March 31, 2026.

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**<u>[Table of Content](#i2582aed425bc4584a92e9573cb32abee_1021)[s](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**Dividends and Distributions**

***Preferred Stock***

The Company's dividends and distributions on its Preferred Stock are recorded on the declaration date. The following table summarizes dividend declarations and distributions on the Series A and Series B Preferred Stock during the three months ended March 31, 2026 and 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Date Declared** | **Series**<sup>1</sup> | **Record Date** | **Payment Date** | **Amount Per Share** | **Cash Distribution** |
| **<u>Three months ended March 31, 2026</u>** | | | | | |
| March 24, 2026 | B | March 24, 2026 | April 1, 2026 | $21.25 | $1063 |
| **<u>Three months ended March 31, 2025</u>** |  |  |  |  |  |
| March 31, 2025 | A | March 30, 2025 | April 1, 2025 | $20.00 | $400 |

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<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Series A Preferred Stock exchanged for Common Stock and cash on September 16, 2025.<sup>&nbsp;&nbsp;&nbsp;&nbsp;</sup>

***Common Stock***

The Company's dividends and distributions on the Common Stock are recorded on the declaration date. The following table summarizes the Company's dividend declarations and distributions, including dividend shares issued on vested restricted stock awards, during the three months ended March 31, 2026 and 2025:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Record Date** | **Payment Date** | **Amount Per Share** | **Cash Distribution** | **Dividend Shares Issued on Unvested RSAs** | **Dividend Shares Issued on Unvested RSAs** |
|<br>**Date Declared** | **Record Date** | **Payment Date** | **Amount Per Share** | **Cash Distribution** | **#** | **$** |
| **<u>Three months ended March 31, 2026</u>** |  |  |  |  |  |  |
| March 13, 2026 | March 24, 2026 | April 1, 2026 | $0.19 | $5413 | 7 | $74 |
| **<u>Three months ended March 31, 2025</u>** |  |  |  |  |  |  |
| March 31, 2025 | April 15, 2025 | April 30, 2025 | $0.19 | $4835 | 35 | $367 |

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**NOTE 15—EARNINGS PER SHARE:**

Basic and diluted earnings per share are computed based on the weighted average number of shares outstanding during each period. Diluted earnings per share reflects the potential dilution that could occur upon the exercise of stock options, to the extent outstanding, or upon the vesting of restricted stock grants, any of which would result in the issuance of Common Stock that would then share in the net income of the Company.

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| | | |
|:---|:---|:---|
| | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** |
| | **2026** | **2025** |
| **Basic earnings per share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income available to common shareholders | $12338 | $8967 |
| Weighted-average basic shares outstanding | 28461 | 25156 |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic earnings per share | $0.43 | $0.36 |
| **Diluted earnings per share:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income, for diluted earnings per share<sup>1,2</sup> | $12338 | $8967 |
| Total weighted-average basic shares outstanding | 28461 | 25156 |
| &nbsp;&nbsp;&nbsp;&nbsp;Add effect of dilutive restricted stock awards<sup>3</sup> | 212 | 394 |
| Total weighted-average diluted shares outstanding<sup>4,5</sup> | 28673 | 25550 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted earnings per share | $0.43 | $0.35 |
| Anti-dilutive warrants, restricted stock awards, and Series A convertible preferred stock | 48 | 998 |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>For periods presented the Series A convertible preferred stock was anti-dilutive and, therefore, the preferred dividends have not been added back to the numerator of Net income, for diluted earnings per share.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Series A Preferred Stock exchanged for Common Stock and cash on September 16, 2025.

<sup>3&nbsp;&nbsp;&nbsp;&nbsp;</sup>Incremental diluted shares from restricted stock awards under the treasury stock method.

<sup>4</sup>&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended March 31, 2026 and 2025, the incremental diluted shares from Series A convertible preferred stock were not included in the diluted earnings per share count because the results would have been anti-dilutive under the treasury stock method.

<sup>5&nbsp;&nbsp;&nbsp;&nbsp;</sup>For the three months ended March 31, 2026 and 2025, the warrants were not included in the diluted share count because the results would have been anti-dilutive under the if-converted method.

**NOTE 16—BENEFIT PLANS:**

***Defined Contribution Plan***

The Company's employees participate in a defined contribution 401(k) plan (the "Plan") adopted in 2004 which covers substantially all employees based on eligibility. The Plan is designed to encourage savings on the part of eligible employees and qualifies under Section 401(k) of the Code. Under the Plan, eligible employees may elect to have a portion of their pay, including overtime and bonuses, reduced each pay period, as pre-tax contributions up to the maximum allowed by law. The Company may elect to make a matching contribution equal to a specified percentage of the participant's contribution, on their behalf as a pre-tax contribution.

***Stock-based Compensation Plans***

**Restricted Stock Awards**

The Company accounts for its stock-based compensation plan using the fair value method, as prescribed by ASC 718, Compensation—Stock Compensation. Accordingly, for restricted stock awards, the Company measures the grant date fair value based upon the market price of its Common Stock on the date of the grant and amortizes the fair value of the awards as stock-based compensation expense over the requisite service period, which is generally the vesting term.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

The Compensation, Corporate Governance and Nominating Committee of the Board approves the issuance of awards of restricted stock to employees and directors pursuant to the Company's 2023 Stock Incentive Plan, which was approved by the Board in April 2023 and the Company's shareholders on June 14, 2023. No new awards may be granted under the Company's 2015 Stock Incentive Plan, which was terminated by the Board in April 2023. The following table summarizes the restricted stock issuances under the Company's 2015 and 2023 Stock Incentive Plans, net of shares forfeited, if any:

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| | | |
|:---|:---|:---|
| | **2023 Plan**<sup>1</sup> | **2015 Plan** |
| Restricted Stock authorized under the plan<sup>2</sup> | 3.0 million | 1.5 million |
| Net restricted stock (granted)/forfeited during: |  |  |
| &nbsp;&nbsp;&nbsp;Year ended December 31, 2021 and prior |  | (438) |
| &nbsp;&nbsp;&nbsp;Year ended December 31, 2022 |  | (251) |
| &nbsp;&nbsp;&nbsp;Year ended December 31, 2023 | (82) | 28 |
| &nbsp;&nbsp;&nbsp;Year ended December 31, 2024 | (497) |  |
| &nbsp;&nbsp;&nbsp;Year ended December 31, 2025 | 18 | 25 |
| &nbsp;&nbsp;&nbsp;Three months ended March 31, 2026 | (202) |  |
| Total net restricted stock (granted)/forfeited | (763) | (636) |

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<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>The Company's 2023 Stock Incentive Plan provides for an initial share reserve of up to 3.0 million shares of Common Stock.

<sup>2&nbsp;&nbsp;&nbsp;&nbsp;</sup>No stock options were granted under the Company's 2015 or 2023 Stock Incentive Plans.

Awards of restricted stock granted under the Company's 2015 and 2023 Stock Incentive Plans generally vest over a one- to three-year periods from the grant date; awards of restricted stock granted under the Company's 2023 Stock Incentive Plan to non-employee directors generally vest over a one-year period. The grant date fair value is expensed over the service period, starting on the grant date.

Details of the Company's outstanding shares related to restricted stock awards as of March 31, 2026 and December 31, 2025 are outlined below:

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| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Shares outstanding related to grants of restricted stock awards | 370 | 245 |
| Weighted average grant date fair value of awards | $13.14 | $13.41 |
| Additional shares outstanding related to dividends on awards | 23 | 31 |

---

As of March 31, 2026 and December 31, 2025, the Company's total unrecognized compensation expense related to unvested shares of restricted stock granted was as follows:

---

| | | |
|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** |
| Unrecognized compensation expense on unvested awards | $4969 | $2680 |
| Weighted-average period of unrecognized compensation expense | 1.3 years | 1.3 years |

---

**Employee Stock Purchase Plan (ESPP)**

On June 14, 2023, the Company's stockholders approved the ESPP. The initial aggregate number of shares of Common Stock that may be purchased under the ESPP will not exceed 0.2 million shares. Under the terms of the ESPP, employees may authorize the withholding of up to 15% of their eligible compensation to purchase our shares of Common Stock, not to exceed $25 thousand of Common Stock for any calendar year. The purchase price per shares acquired under the ESPP will never be less than 85% of the fair market value of the lesser of our Common Stock on the offering date or purchase date. The Compensation, Corporate Governance and Nominating Committee of our Board, in its discretion, may terminate the ESPP at any time with respect to any shares for which options have not been granted and has the right to amend the ESPP with stockholder approval within 12 months before or after the adoption of the amendment. The difference between the Common Stock's fair value and the employee's discounted purchase price is expensed at the time of purchase.

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The following table summarizes the Company's ESPP activity from inception through March 31, 2026:

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | | **2026** | **2026** | **2026** | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** | **2023** | **2023** | **2023** |
| Offering Period Dates | Offering Period Dates | Shares purchased | Weighted avg share price | Total purchased, net of discount | Shares purchased | Weighted avg share price | Total purchased, net of discount | Shares purchased | Weighted avg share price | Total purchased, net of discount | Shares purchased | Weighted avg share price | Total purchased, net of discount |
| Commencement | End | Shares purchased | Weighted avg share price | Total purchased, net of discount | Shares purchased | Weighted avg share price | Total purchased, net of discount | Shares purchased | Weighted avg share price | Total purchased, net of discount | Shares purchased | Weighted avg share price | Total purchased, net of discount |
| 10/1/2023 | 3/15/2024 |  | $— | $— |  | $— | $— | 5 | $9.83 | $51 | 4 | $13.05 | 51 |
| 4/1/2024 | 9/15/2024 |  | $— |  |  | $— |  | 10 | $10.21 | $101 |  | $— |  |
| 10/1/2024 | 3/15/2025 |  | $— | $— | 4 | $10.97 | $48 | 5 | $11.03 | $55 |  | $— |  |
| 4/1/2025 | 9/15/2025 |  | $— | $— | 14 | $9.95 | $142 |  | $— | $— |  | $— |  |
| 10/1/2025 | 3/15/2026 | 7 | $10.23 | $70 | 8 | $10.23 | $77 |  | $— |  |  | $— |  |
|  |  | 7 | $10.23 | $70 | 26 | $31.15 | $267 | 20 | $31.07 | $207 | 4 | $13.05 | $51 |

---

The ESPP share activity is as follows:

---

| | |
|:---|:---|
| | **Shares** |
| ESPP shares authorized under the plan | 200 |
| ESPP shares purchased during: |  |
| &nbsp;&nbsp;Year ended December 31, 2023 | (4) |
| &nbsp;&nbsp;Year ended December 31, 2024 | (20) |
| &nbsp;&nbsp;Year ended December 31, 2025 | (26) |
| &nbsp;&nbsp;Period ended March 31, 2026 | (7) |
| Available for future purchases, March 31, 2026 | 143 |

---

The Company's total stock-based compensation expense included within Salaries and employee benefits expense in the Consolidated Statements of Income for the three months ended March 31, 2026 and 2025 is summarized below:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Restricted stock awards | $557 | $1828 |
| ESPP | 8 | 6 |
| Total compensation cost recognized for stock-based compensation plans | $565 | $1834 |

---

**NOTE 17—INCOME TAXES:**

**Effective Tax Rate** 

The effective tax rate was 21.57% and 19.59% for the three months ended March 31, 2026 and March 31, 2025, respectively. The effective tax rate differs from the federal tax rate of 21% for the three months ended March 31, 2026, due to stock compensation and investments. The effective tax rate differs from the federal tax rate of 21% for the three months ended March 31, 2025, due primarily to the recognition of the difference in basis in the Company's investment in NTS.

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**NOTE 18—SEGMENTS:**

The Company's management reporting process measures the performance of its operating segments based on internal operating structure, which is subject to change from time to time. The Company's segment reporting process begins with the assignment of all loans directly to the segments where these products are originated and/or serviced. All deposit accounts are allocated to the Banking segment as our wholly owned FDIC insured depository is included within the Banking segment. Equity capital is assigned to each segment based on the risk profile of their assets and liabilities. With the exception of goodwill, which is assigned a 100% weighting, equity capital allocations ranged from 0% to 25% during the year. Any excess or deficient equity not allocated to segments based on risk is assigned to Corporate & Other.

Net interest income, provision for credit losses, and non-interest expense amounts are recorded in their respective segments to the extent the amounts are directly attributable to those segments. The net income amount for each reportable segment is further derived by the use of expense allocations. Certain expenses not directly attributable to a specific segment are allocated across all segments based on key metrics, such as number of employees. These types of expenses include information technology, operations, human resources, finance, risk management, credit administration, legal, and marketing.

The assignment and allocation methodologies used in the segment reporting process discussed above change from time to time as systems are enhanced, methods for evaluating segment performance or product lines change or as business segments are realigned.

The Company operates four reportable segments for management reporting purposes with their operating and financial results reviewed by the chief operating decision maker ("CODM"), which is the Chief Executive Officer of the Company. The CODM assesses overall segment performance based on pre-tax income and uses this metric to allocate resources for each segment, focusing on budgeting and forecasting. The Company has four segments, as discussed below:

***Banking*** 

Newtek Bank originates, services and sells SBA 7(a) loans in a similar manner to NSBF's historic business model (see NSBF below) and originates and services SBA 504 loans, C&I loans, CRE loans and ABL loans. Beginning in the first quarter of 2026, Newtek Bank began originating C&I LA Loans. In addition, Newtek Bank offers depository services.

***Alternative Lending***

Alternative Lending includes NALH (Newtek ALP Holdings) and its subsidiaries. The Company originated loans under its Alternative Lending Program (ALP) from 2019 to December 2025. Prior to July 1, 2024, the Company originated ALP loans with the intent to sell to a JV, and from 2024 until December 2025, NALH originated ALP loans HFS with the intent to securitize its ALP loan portfolio, e.g., the NALP Business Loan Trust 2025-1 securitization transaction that closed in April 2025 and the NALP Business Loan Trust 2026-1 securitization transaction that closed in January 2026.

***NSBF***

NSBF relates to NSBF's legacy portfolio of SBA 7(a) loans held outside Newtek Bank; no new loan origination activity takes place. A material portion of NSBF's legacy portfolio of SBA 7(a) loans reside in three securitization trusts.

***Payments*** 

Payments includes NMS, POS and Mobil Money. NMS markets credit and debit card processing services, check approval services, processing equipment, and software and:

–Assist merchants with initial installation of equipment and on-going service, as well as any other special processing needs that they may have.

–Handles payment processing for Mobil Money's merchant portfolio of taxi cabs and related licensed payment processing software.

–POS is a provider of a cloud based Point of Sale (POS) system for a variety of restaurant, retail, assisted living, parks and golf course businesses, which provides not only payments and purchase technology solutions, but also inventory, customer management, reporting, employee time clock, table and menu layouts, and ecommerce solutions as the central operating system for an SMB.

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***Corporate and Other***

The information provided under the caption "Corporate and Other" represents operations not considered to be reportable segments and/or general operating expenses of the Company, and includes the parent company, other non-bank subsidiaries including NIA and PMT, and elimination adjustments to reconcile the results of the operating segments to the condensed consolidated financial statements prepared in conformity with GAAP.

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The following tables provide financial information for the Company's segments:

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **As of and for the three months ended March 31, 2026** | **As of and for the three months ended March 31, 2026** | **As of and for the three months ended March 31, 2026** | **As of and for the three months ended March 31, 2026** | **As of and for the three months ended March 31, 2026** | **As of and for the three months ended March 31, 2026** | **As of and for the three months ended March 31, 2026** | **As of and for the three months ended March 31, 2026** | **As of and for the three months ended March 31, 2026** | **As of and for the three months ended March 31, 2026** | **As of and for the three months ended March 31, 2026** | **As of and for the three months ended March 31, 2026** |
|  | Banking | Banking | Alternative Lending | Alternative Lending | NSBF | NSBF | Payments | Payments | Corporate & Other | Corporate & Other | Consolidated |
|  | Segment | Elim | Segment | Elim | Segment | Elim | Segment | Elim | Segment | Elim |  |
| Interest income | $33545 | $(2) | $8567 | $(42) | $4201 | $(122) | $1801 | $(1801) | $222 | $(128) | $46241 |
| Interest expense | 15579 | (261) | 2150 |  | 2126 |  | 2146 |  | 9109 | (1834) | 29015 |
| &nbsp;&nbsp;Net interest income/(loss) | 17966 | 259 | 6417 | (42) | 2075 | (122) | (345) | (1801) | (8887) | 1706 | 17226 |
| Provision for loan credit losses | 9608 |  |  |  |  |  |  |  |  |  | 9608 |
| Net interest income after provision for loan credit losses | 8358 | 259 | 6417 | (42) | 2075 | (122) | (345) | (1801) | (8887) | 1706 | 7618 |
| Noninterest income | 48237 | (6459) | 3903 |  | (3586) |  | 10880 | (341) | 7026 | (5929) | 53731 |
| Salaries and employee benefits expense | 15243 | (1105) | 310 | (310) | 125 | (125) | 1868 | (356) | 5551 | 1895 | 23096 |
| Electronic payment processing expense |  |  |  |  |  |  | 4448 | (341) | 14 |  | 4121 |
| Professional services expense | 736 |  | 115 |  | 307 |  | 102 |  | 1343 |  | 2603 |
| Other loan origination and maintenance expense | 8124 | (3943) | 882 | (522) | 3642 | (1968) |  |  | 31 | (19) | 6227 |
| Technology expense | 1421 |  | 477 |  | 278 |  | 99 |  | 678 |  | 2953 |
| Other general and administrative costs | 3333 | (929) | 78 |  | 1607 |  | 384 | (72) | 245 | 617 | 5263 |
| Income before taxes | 27738 | (223) | 8458 | 790 | (7470) | 1971 | 3634 | (1373) | (9723) | (6716) | 17086 |
| Income tax expense (benefit) | 7534 | (7534) |  |  |  |  |  |  | (3849) | 7534 | 3685 |
| Net income | $20204 | $7311 | $8458 | $790 | $(7470) | $1971 | $3634 | $(1373) | $(5874) | $(14250) | $13401 |
| Assets | $2162070 | $(8624) | $359630 | $(13990) | $372445 | $(51219) | $124408 | $(103368) | $653089 | $(607674) | $2886767 |
| Goodwill & intangible assets | $747 |  | $— |  | $— |  | $13814 |  | $— |  | $14561 |
| Amortization of intangible assets | $36 |  | $— |  | $— |  | $— |  | $— |  | $36 |

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **As of and for the three months ended March 31, 2025** | **As of and for the three months ended March 31, 2025** | **As of and for the three months ended March 31, 2025** | **As of and for the three months ended March 31, 2025** | **As of and for the three months ended March 31, 2025** | **As of and for the three months ended March 31, 2025** | **As of and for the three months ended March 31, 2025** | **As of and for the three months ended March 31, 2025** | **As of and for the three months ended March 31, 2025** | **As of and for the three months ended March 31, 2025** | **As of and for the three months ended March 31, 2025** | **As of and for the three months ended March 31, 2025** |
|  | Banking | Banking | Alternative Lending | Alternative Lending | NSBF | NSBF | Payments | Payments | Corporate & Other | Corporate & Other | Consolidated |
|  | Segment | Elim | Segment | Elim | Segment | Elim | Segment | Elim | Segment | Elim |  |
| Interest income | $22878 | $(2) | $8077 | $(11) | $6960 | $(122) | $566 | $(553) | $511 | $(414) | $37890 |
| Interest expense | 10138 | (189) | 2421 |  | 3365 |  | 629 | (16) | 8507 | (898) | 23957 |
| &nbsp;&nbsp;Net interest income/(loss) | 12740 | 187 | 5656 | (11) | 3595 | (122) | (63) | (537) | (7996) | 484 | 13933 |
| Provision for loan credit losses | 13505 |  |  |  |  |  |  |  |  |  | 13505 |
| Net interest income after provision for loan credit losses | (765) | 187 | 5656 | (11) | 3595 | (122) | (63) | (537) | (7996) | 484 | 428 |
| Noninterest income | 32806 | (7309) | 20311 |  | (3248) |  | 11412 | (605) | 22945 | (23914) | 52398 |
| Salaries and employee benefits expense | 12849 | (787) | 406 | (406) | 87 | 171 | 1746 |  | 6228 | 1022 | 21316 |
| Electronic payment processing expense |  |  |  |  |  |  | 4801 | (354) |  |  | 4447 |
| Professional services expense | 743 |  | 67 |  | 602 |  | 38 |  | 1985 |  | 3435 |
| Other loan origination and maintenance expense | 6584 | (3786) | 1633 | (1137) | 3257 | (2360) |  |  | 248 | (22) | 4417 |
| Technology expense | 1193 |  | 638 |  | 283 |  | 179 |  | 435 |  | 2728 |
| Other general and administrative costs | 2551 | (92) | 94 | (43) | 1071 | (2) | 410 | (91) | 1089 | (153) | 4834 |
| Income before taxes | 8121 | (2457) | 23129 | 1575 | (4953) | 2069 | 4175 | (697) | 4964 | (24277) | 11649 |
| Income tax expense (benefit) | 2094 |  |  |  |  |  | (3) |  | 191 |  | 2282 |
| Net income | $6027 | $(2457) | $23129 | $1575 | $(4953) | $2069 | $4178 | $(697) | $4773 | $(24277) | $9367 |
| Other Segment Disclosures: | Other Segment Disclosures: | Other Segment Disclosures: | Other Segment Disclosures: | Other Segment Disclosures: | Other Segment Disclosures: | Other Segment Disclosures: | Other Segment Disclosures: | Other Segment Disclosures: | Other Segment Disclosures: | Other Segment Disclosures: | Other Segment Disclosures: |
| Assets | $1276432 | $(34974) | $542124 | $(116887) | $470702 | $(73817) | $73832 | $(50380) | $650581 | $(600876) | $2136737 |
| Goodwill & intangible assets | $898 |  | $— |  | $— |  | $13813 |  | $— |  | $14711 |
| Amortization of intangible assets | $41 |  | $— |  | $— |  | $— |  | $— |  | $41 |

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**NOTE 19—SUBSEQUENT EVENTS:**

***Debt Repurchase Program***

On April 24, 2026, the Board approved a debt repurchase program granting the Company authority to repurchase up to $5.0 million aggregate principal amount of the Company's 2028 Notes and 2029 Notes during the following twelve months. The actual timing and amount of any repurchases under the debt repurchase plan will be determined by the Company in its discretion, and will depend on a number of factors, including market conditions, applicable legal requirements, the Company's capital needs and whether there is a better alternative use of capital. The Company has no obligation to repurchase any amount of its debt securities under this debt repurchase program. The Company has not repurchased 2028 Notes or 2029 Notes under the debt repurchase program.

***D2 Facility***

On April 28, 2026, a wholly-owned subsidiary of the Company, Newtek Business Services Holdco 6, Inc. (the "NALH Borrower"), and its wholly-owned subsidiary NBL SPV IV, LLC (the "SPV Borrower", and together with the NALH Borrower, the "Borrowers"), together with the Company as a guarantor thereunder, entered into a Term Loan Agreement (the "Loan Agreement") with D2 Asset Based Credit Partners, LP, Inc. as the Initial Lender thereunder (the "Initial Lender") and D2 Asset Services, LLC, as Agent thereunder. Pursuant to the terms of the Loan Agreement, the Initial Lender extended a term loan to the Borrowers in the aggregate principal amount of $20,000,000 (the " D2 Loan"), which D2 Loan may be increased by an additional $10,000,000, subject to the satisfaction of certain conditions set forth in the Loan Agreement. As permitted under the Loan Agreement, NALH Borrower intends to distribute all or a portion of the proceeds of the Loan to the Company, which if received by the Company, would be used for general corporate purposes.

The D2 Loan will mature on April 28, 2029. The Loan Agreement also specifies certain events of default, the occurrence of which could require the immediate repayment of all outstanding amounts under the Loan Agreement. Pursuant to the terms of the Loan Agreement: (a) the SPV Borrower pledged certain loans owned by the SPV Borrower, and the NALH Borrower pledged its equity interests in the SPV Borrower, as security for the D2 Loan; and (b) the Company unconditionally guaranteed the prompt and unconditional payment of all of the Borrowers' obligations under the Loan Agreement.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.** 

***Forward-Looking Statements***

The matters discussed in this report, as well as in future oral and written statements by Company management that are forward-looking statements, are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our industry, our beliefs, and our assumptions. Words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or variations of these words and similar expressions are intended to identify forward-looking statements. Important assumptions include our ability to originate new investments, achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, including recent economic and market events and unrelated bank failures and declines in depositor confidence in certain types of depository institutions, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans or objectives will be achieved. The forward-looking statements contained in this report, including the documents we incorporate by reference, involve risks and uncertainties, including statements as to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our future operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our business prospects and the prospects of our subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our contractual arrangements and relationships with third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the dependence of our future success on the general economy and its impact on the industries in which we and our borrowers operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our business to achieve its objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of a protracted decline in the liquidity of credit markets on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the adequacy of our cash resources and working capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to operate as a financial holding company and our ability to operate our subsidiary Newtek Bank, a national bank regulated and supervised by the OCC, and the increased compliance and other costs associated with such operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to adequately manage liquidity, deposits, capital levels and interest rate risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing of cash flows, if any, from the operations of our subsidiaries;

These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in any and all of the forward-looking statements, including without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an economic downturn, which could impair our subsidiaries' ability to continue to operate or repay their borrowings, which could adversely affect our results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a contraction of available credit and/or an inability to access the equity markets could impair our lending and business activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• impacts to financial markets and the global macroeconomic and geopolitical environment, including higher inflation, tariffs and their impacts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• higher interest rates and the impacts on macroeconomic conditions and our funding costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes to the SBA 7(a) loan program, including recent revisions to SBA Standard Operating Procedure ("SOP") as well as the impact of the current Federal government shutdown on the SBA, including the SBA 7(a) Program and SBA 504 program, each of which are currently frozen as a result of the current Federal government shutdown and could materially and adversely affect Newtek Bank's lending business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risks, uncertainties and other factors we identify in "Risk Factors" and elsewhere in this report and in our filings with the SEC, including the documents we incorporate by reference.

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The following discussion should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this report. In addition to historical information, the following discussion and other parts of this report contain forward-looking information that involves risks and uncertainties. Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. Important assumptions include the ability of Newtek Bank to originate loans under the SBA 7(a) program, maintain PLP status, sell SBA guaranteed portions of SBA 7(a) loans at premiums and grow deposits; our ability to originate new loans; our subsidiaries' ability to generate revenue and obtain and maintain certain margins and levels of profitability; and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report, including the documents that we incorporate by reference herein, should not be regarded as a representation by us that our plans and objectives will be achieved. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under Part II "Item 1A. Risk Factors" of this quarterly report on Form 10-Q and "Item 1A. Risk Factors" of our 2025 Form 10-K, and in any subsequent filings we have made with the SEC that are incorporated by reference into this report.

You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report. And while we believe such information forms, or will form, a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely on these statements. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made, and the Company does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made, except as required by applicable law.

**Executive Overview**

We are a financial holding company owning Newtek Bank - a branchless OCC nationally chartered bank. Our target market is owners and prospective owners of SMBs and our services are offered online and in some cases delivered and fulfilled by our staff via video and voice calls. We offer lending products, FDIC insured deposit products and services, payments processing, payroll services and insurance brokerage services. We source our business through our NewtekOne.com and NewtekBank.com web sites, our alliance partner network and our marketing database, which is facilitated through our patented NewTracker® platform. Our loan products include SBA 7(a), ALP, SBA 504, and traditional C&I and CRE bank loans. Our deposit products primarily include consumer high yield savings accounts, high yield certificates of deposit, zero-fee business checking, and business money market accounts. We offer business and financial solutions under the Newtek<sup>®</sup> and NewtekOne<sup>®</sup> brands to the independent business owner (SMB) market.

Our process to extend credit to borrowers begins with technology, but finishes with credit committee approval. We record CECL reserves on loans held for investment at amortized cost, which for unguaranteed SBA 7(a) loans exceeds 6%. For SBA7(a) loans, we hold the unguaranteed portion and sell the portions guaranteed by the SBA, within approximately 180 days of origination (or we may hold guaranteed portions for longer periods), for premiums that have historically exceeded 10%, depending on loan characteristics and market conditions. Unlike traditional financial and bank holding companies, the majority of our income is driven and influenced by noninterest income, specifically gains on sales and market value adjustments on loans. We sell certain loans servicing retained, in which case we record a servicing asset that increases our gain on sale and provides a stream of future income to the extent the loan balance continues to be outstanding.

We fund our activities at Newtek Bank primarily through the aforementioned deposit products.

Prior to acquiring Newtek Bank in 2023, we originated SBA 7(a) loans through NSBF, our non-bank SBA 7(a) lender. In addition, prior to the first quarter of 2026 when we began originating C&I LA loans out of Newtek Bank, we offered ALP loans and SBA 504 loans originated by our non-bank subsidiary NALH; and our JVs offered ALP loans. These non-bank loans were initially funded with capital and lines of credit and hedged until a sufficient volume was attained at which time the loans were securitized. We are required by law to hold risk retention in securitization transactions, and the majority of our interests in securitizations are designed to absorb first loss on the loans held in the securitization trusts. Specifically, during the third quarter of 2024, we made the decision to originate with the intent to securitize ALP loans with our subsidiary NALH as the originator and sponsor. As of the first quarter of 2026, the Company began originating C&I LA loans (formerly referred to as ALP loans) at Newtek Bank and do not currently anticipate originating loans out of our non-bank subsidiaries.

We have also issued bonds in the public and private capital markets.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

We are subject to the regulation and supervision of the Federal Reserve and the Federal Reserve Bank of Atlanta. In addition Newtek Bank is regulated by the OCC and we are required to follow SBA rules and guidelines in the origination, servicing and sale of our SBA loans. Complying with this level of regulation requires investments in technology and process and personnel costs.

From 2012 through December 31, 2022, NSBF was consistently the largest non-bank SBA 7(a) lender in the U.S. based on dollar volume of loan approvals, and, as of December 31, 2022, was the third largest SBA 7(a) lender in the United States. Currently, Newtek Bank is ranked as the third largest SBA 7(a) lender based on dollar volume of loans approved. Historically, NSBF structured its loans so that it could sell the government guaranteed portions of SBA 7(a) loans originated and securitize the unguaranteed portions. This structure generally allowed NSBF to recover its capital and earn excess capital on each loan, typically within a year. Pursuant to the Wind-down Agreement described above, in April 2023 NSBF transitioned its SBA 7(a) loan originations to Newtek Bank and is in the process of winding down its operations and will continue to own the 7(a) Loans in its loan portfolio to maturity, liquidation, charge-off or, subject to SBA's prior written approval, sale or transfer.

Additionally, we and our subsidiaries provide a wide range of business and financial solutions to independent business owner relationships, including Business Lending, which includes SBA 7(a) loans, SBA 504 loans, C&I LA loans, CRE loans and ABL loans; Electronic Payment Processing, personal and commercial lines Insurance Services, and Payroll and Benefits Solutions to independent business owner relationships nationwide across all industries. With the divestiture of NTS, we no longer provide Managed Technology Solutions to our clients, however, we are currently referring our clients to IPM for its offering of Managed Technology Solutions and can earn a finder's fee pursuant to a referral promotion agreement. We support the operations of our subsidiaries by providing access to our proprietary and patented technology platform, including NewTracker<sup>®</sup>, our patented prospect management software. We have historically defined independent business owners (SMBs) as companies having revenues of $1 million to $100 million, and we have generally estimated the SMB market to be over 34 million businesses in the United States. We make loans and provide business and financial solutions to the SMB market through our bank and non-bank subsidiaries. In addition, we now offer the Newtek Advantage<sup>®</sup>, the One Dashboard for All of Your Business Needs<sup>®</sup>, which provides independent business owners with instant access to a team of NewtekOne business and financial solutions experts. Moreover, the Newtek Advantage provides our independent business owner clients with analytics on their businesses, as well as transactional capabilities, including free unlimited document storage, free real-time updated traffic analytics, free real-time credit card processing and chargeback batch information for merchant solutions clients and the ability for PMT's clients to make payroll directly from the Newtek Advantage business portal.

The Company originated loans under its ALP Program from 2019 until the December 2025, and beginning in the first quarter of 2026, now originates these loans out of Newtek Bank under its C&I LA program. These loans have terms between 10 and 25 years, bear fixed interest rates that reset every five years, and have prepayment penalties. The criteria evaluated in underwriting C&I LA loans and the terms of these loans have been generally consistent over the program's existence. Prior to July 1, 2024, the Company originated ALP loans with the intent to sell the loans to a JV, and during the third quarter of 2024, we made the decision to originate with the intent to securitize ALP loans with our subsidiary NALH as the originator and sponsor. During the second quarter of 2025, NALH closed a securitization backed by $216.6 million of ALP loans and in January 2026, closed the 2026-1 securitization pursuant to which NALH sold $251.9 million of Class A Notes, $35.9 million of Class B Notes, and $6.8 million of a Class C Note issued by NALP Business Loan Trust 2026-1.

Following the Acquisition, there can be no assurance regarding our continued lending prospects or operations as a financial holding company. See "ITEM 1A. RISK FACTORS – Risks Related to Operation as a Financial Holding Company – We are subject to extensive regulation and supervision as a financial holding company, which may adversely affect our business."

Our common shares are currently listed on the Nasdaq Global Market under the symbol "NEWT".

Newtek Bank is a national bank and, as a nationally licensed SBA lender under the SBA 7(a) Program, originates, sells and services SBA 7(a) loans. Newtek Bank has been granted PLP status and is authorized to place SBA guarantees on loans without seeking prior SBA review and approval. Being a national SBA 7(a) lender with PLP status allows Newtek Bank to expedite the origination of SBA 7(a) loans since Newtek Bank is not required to present applications to the SBA for concurrent review and approval. The loss of PLP status would adversely impact our marketing efforts and ultimately our loan origination volume, which would negatively impact our results of operations. See "ITEM 1A. RISK FACTORS - Risks Related to SBA Lending - There can be no guarantee that Newtek Bank will be able to maintain its SBA 7(a) lending license and PLP status." and "ITEM 1A. RISK FACTORS - Risks Related to SBA Lending - A governmental failure to fund the SBA could adversely affect Newtek Bank's SBA 7(a) loan originations and our results of operations." In addition to SBA 7(a) loans, Newtek Bank originates SBA 504 loans, C&I loans, C&I LA loans, CRE loans and ABL loans, and offers depository services.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**Economic Developments**

We have observed and continue to observe commodity inflation, rising interest rates, unrelated bank failures and declines in depositor confidence in certain types of depository institutions. In addition, the conflicts in the Middle East and the war between Russia and Ukraine, and resulting market volatility and impacts on energy prices, could adversely affect our business, financial condition and results of operations, as well as the financial condition of our borrowers. The ongoing conflicts have negatively affected the global economy and business activity and could have a material adverse effect on our business, financial condition, cash flows and results of operations, as well as those of our borrowers. The severity and duration of conflicts and their impact on global economic and market conditions are impossible to predict. In addition, beginning in 2025, the U.S. has imposed or increased tariffs, including on imports from China, and proposed imposing or increasing tariffs on U.S. trading partners, which could adversely affect markets, the business environment and our business. On July 4, 2025, federal legislation generally referred to as H.R. 1 - One Big Beautiful Bill Act (the "Act" or "OBBBA") was signed into law. The Act includes a variety of tax provisions including permanently extending and modifying certain key aspects of existing federal tax law. U.S. GAAP requires the effects of changes in tax laws and rates to be recognized in its financial statements in the period in which legislation is enacted. The Company evaluated the OBBBA and there is no material impact on its financial position or results of operations in the current year. Any of the above factors, including sanctions, export controls, tariffs, trade wars and other governmental actions, could have a material adverse effect on our business, financial condition, cash flows and results of operations and could cause the market value of our common shares and/or debt securities to decline. We monitor developments and seek to manage our investments in a manner consistent with achieving our investment objective, but there can be no assurance that we will be successful in doing so.

***Income***

For the quarterly period ended March 31, 2026, we generated income in the form of interest, net gains on the sales of loans originated (which primarily include sales of SBA 7(a) and ALP loans) and related servicing assets on such sales, dividends, electronic payment processing income, servicing income, and other fee income generated by loan originations and by our subsidiaries. We originated loans that typically have terms of 10 to 25 years and bear interest at prime plus a margin. In some instances, we received payments on our loans based on scheduled amortization of the outstanding balances. In addition, we received repayments of some of our loans prior to their scheduled maturity date. The frequency or volume of these repayments fluctuated significantly from period to period. Our portfolio activity for the quarterly period ended March 31, 2026, also reflects the proceeds of sales of guaranteed portions of SBA 7(a) loans we originated. In addition, we received servicing income related to the guaranteed portions of SBA 7(a) loans which we originated and sold into the secondary market as well as on the portfolios of ALP loans owned and then securitized by NCL JV (dissolved in September 2025), TSO JV and Newtek ALP Holdings. These recurring fees are outlined in servicing agreements and were recorded when earned. In addition, we generated revenue in the form of loan origination fees (packaging and legal fees) as well as loan prepayment and late fees. We recorded such fees related to loans held for sale as other income. Distributions of earnings from our joint ventures were evaluated to determine if the distribution was income, return of capital or realized gain.

We recognized realized gains or losses on loans based on the difference between (1) the net proceeds from the disposition and any servicing assets recognized and (2) the cost basis of the loan without regard to unrealized gains or losses previously recognized. We recorded current period changes in fair value of loans and assets that were measured at fair value as a component of the net change in unrealized appreciation (depreciation) on the loans or servicing assets, as appropriate, as well as amortization and impairment, if any, of LCM servicing rights in the consolidated statements of income.

***Expenses***

For the quarterly period ended March 31, 2026, our primary operating expenses were salaries and benefits, interest expense including interest on deposits, electronic payment processing expense, loan origination and servicing expenses, and other general and administrative costs, such as professional fees, marketing, referral fees, servicing costs and rent.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**Discussion and Analysis of Financial Condition**

*March 31, 2026 vs. December 31, 2025*

**ASSETS**

Total assets at March 31, 2026 were $2.9 billion, an increase of $141.9 million, or 5.2%, compared to total assets of $2.7 billion at December 31, 2025.

**Loans**

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| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** | **Change** |
| Loans held for sale, at fair value | $769225 | $971837 | $(202612) |
| Loans held for sale, at LCM | 20395 | 26532 | (6137) |
| Loans held for investment, at fair value | 264011 | 281198 | (17187) |
| Loans held for investment, at amortized cost, net of deferred fees and costs | 988269 | 896689 | 91580 |
| Allowance for credit losses | (46721) | (45226) | (1495) |
| Loans held for investment, at amortized cost, net | 941548 | 851463 | 90085 |
| **Total Loans** | $1995179 | $2131030 | $(135851) |

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***Loans held for sale***

Loans HFS, at fair value decreased $202.6 million during the three months ended March 31, 2026. The overall decrease was driven by a decrease of $394.9 million for ALP loans transferred to the NALP Business Loan Trust 2026-1 securitization transaction that closed in January 2026. The decrease was partially offset by holding $93.7 million of additional guaranteed portions of SBA 7(a) loans as of March 31, 2026, as well as $85.7 million in C&I LA loan fundings at Newtek Bank during the three months ended March 31, 2026, valued at $98.6 million as of March 31, 2026.

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| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** | **Change** |
| SBA 504 First Lien | $234298 | $201013 | $33285 |
| SBA 504 Second Lien | 35369 | 31207 | 4162 |
| SBA 7(a) | 380769 | 324469 | 56300 |
| Total SBA loans | 650436 | 556689 | 93747 |
| C&I LA<sup>1</sup> | 98551 |  | 98551 |
| ALP | 20238 | 415148 | (394910) |
| Loans HFS, at fair value | $769225 | $971837 | $(202612) |

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<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;C&I LA loans originated by Newtek Bank, which began during the first quarter of 2026.

Loans HFS, at LCM decreased $6.1 million during the same period. The overall decrease was primarily the result of loan sales that occurred in 2026.

---

| | | | |
|:---|:---|:---|:---|
| | **March 31, 2026** | **December 31, 2025** | **Change** |
| SBA 504 First Lien | $15898 | $19075 | $(3177) |
| SBA 504 Second Lien | 4497 | 7457 | (2960) |
| Loans HFS, at LCM | $20395 | $26532 | $(6137) |

---

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

***Loans held for investment***

*At Fair value:* Loans HFI, at fair value were $264.0 million at March 31, 2026 compared to $281.2 million at December 31, 2025. The balance consists primarily of SBA 7(a) loans as well as $5.7 million of loans that the Company owns 100% as a result of originating the loan and subsequently repurchasing the guaranteed portion from the SBA. As previously discussed, NSBF ceased originating loans during 2023, resulting in the decrease in the balance of loans held for investment from December 31, 2025 to March 31, 2026, primarily due to the principal payments of existing loans held by NSBF.

*At Amortized Cost:* Loans HFI, at amortized cost, consist of loans originated at or purchased by Newtek Bank. The $91.6 million increase in loans HFI, at amortized cost, is the result of an increase in originations for the three months ended March 31, 2026 over 2025.

*Credit Quality:* Overall credit quality remained stable during the year. The increase in nonperforming loans HFI is adequately covered by the allowance for credit losses and in line with the seasoning of the portfolio. The Company continues to focus on prudent underwriting and portfolio diversification across its lending activities. The following table presents an analysis of loans HFI with credit metrics, including a breakdown by days aged:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Credit Quality Ratios** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** |
| ***At Amortized Cost*** | | | | |
| Current | $872072 | 88.4% | $794951 | 88.9% |
| Past Due 30-89 Days and accruing | 26372 | 2.7% | 20555 | 2.3% |
| Past Due 90 and more Days and accruing |  | —% |  | —% |
| Nonaccrual loans | 87453 | 8.9% | 78814 | 8.8% |
| &nbsp;&nbsp;Total, at amortized cost | $985897 | 100.0% | $894320 | 100.0% |
| Deferred fees and costs | 2372 |  | 2369 |  |
| Total, at amortized cost, net of deferred fees and costs | $988269 |  | $896689 |  |
| Allowance for credit losses | $(46721) | 4.7% | $(45226) | 5.0% |
| ***At Fair Value*** |  |  |  |  |
| Current | $165836 | 62.8% | $189177 | 67.2% |
| Past Due 30-89 Days and accruing | 19586 | 7.4% | 16746 | 6.0% |
| Past Due 90 and more Days and accruing | 7870 | 3.0% | 2732 | 1.0% |
| Nonaccrual loans | 70719 | 26.8% | 72543 | 25.8% |
| &nbsp;&nbsp;Total | $264011 | 100.0% | $281198 | 100.0% |
| Past due and nonaccrual loans as % of Outstanding UPB | $98175 | 37.2% | $92021 | 32.7% |
| ***Nonperforming Assets, as a percentage of total assets*** |  |  |  |  |
| Loans HFI, at amortized cost | $87453 | 3.0% | $78814 | 2.9% |
| Loans HFI, at fair value | 70719 | 2.4% | 72543 | 2.6% |
| Other real estate owned | 13112 | 0.5% | 8856 | 0.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Nonperforming Assets | $171284 | 5.9% | $160213 | 5.8% |

---

***CRE exposure***

The Company's loan portfolio consists of loans to independent business owners (SMBs). The Company's Loans HFI at amortized cost and Loans HFS at LCM include a total of $368.4 million of loans, including unfunded commitments, backed by CRE and considered non-owner occupied as of March 31, 2026. The average loan-to-value for this CRE portfolio was 57.5%. The CRE portfolio is diversified by property type and geography, and management actively monitors concentration levels, loan to value ratios, and debt service coverage metrics as part of its ongoing credit risk management process. Furthermore, there is limited exposure to office space.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

The table below presents details of the loans considered non-owner occupied CRE that are not carried at fair value:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | HFI at amortized cost, net of deferred fees and costs | HFS at LCM | Total | LTV <br>by CRE type | HFI at amortized cost, net of deferred fees and costs | HFS at LCM | Total | LTV <br>by CRE type |
| Loans not backed by NOO CRE | $685529 | $— | $685529 |  | $622495 | $— | $622495 |  |
| Loans backed by NOO CRE | 302740 | 20395 | 323135 |  | 274194 | 26532 | 300726 |  |
| &nbsp;&nbsp;Total loans | $988269 | $20395 | $1008664 |  | $896689 | $26532 | $923221 |  |
| Loans backed by NOO CRE by type: | Loans backed by NOO CRE by type: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $57950 | $— | $57950 | 54.0% | $63013 | $— | $63013 | 54.0% |
| &nbsp;&nbsp;1-4 Family | 19273 |  | 19273 | 54.5% | 22187 |  | 22187 | 54.5% |
| &nbsp;&nbsp;Multifamily | 118455 |  | 118455 | 58.6% | 80263 |  | 80263 | 58.6% |
| &nbsp;&nbsp;Industrial | 34208 |  | 34208 | 50.5% | 34416 |  | 34416 | 50.5% |
| &nbsp;&nbsp;Office | 40492 |  | 40492 | 52.6% | 40638 |  | 40638 | 52.6% |
| &nbsp;&nbsp;Construction and land development<sup>1</sup> | 10287 | 15898 | 26185 | 63.7% | 12869 | 19075 | 31944 | 63.7% |
| &nbsp;&nbsp;Hotel | 9071 | 4497 | 13568 | 48.2% | 7709 | 7457 | 15166 | 48.2% |
| &nbsp;&nbsp;Other | 13004 |  | 13004 | 61.8% | 13099 |  | 13099 | 61.8% |
| &nbsp;&nbsp;Total NOO CRE | $302740 | $20395 | $323135 | 57.5% | $274194 | $26532 | $300726 | 57.5% |
| Unfunded Commitments |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Construction and land development<sup>1</sup> | $— | $45225 | $45225 |  | $— | $55149 | $55149 |  |
| &nbsp;&nbsp;Hotel |  |  |  |  |  |  |  |  |
| Total unfunded commitments |  | 45225 | 45225 |  |  | 55149 | 55149 |  |
| Total CRE Loans | $302740 | $65620 | $368360 |  | $274194 | $81681 | $355875 |  |

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<sup>1</sup> Construction and land development includes SBA 504 first and second lien loans. The LTV on first lien is generally 65%. Second liens are typically taken out by the SBA following project completion and occupancy by the borrower. The LTV calculated is based on total exposure.

**Goodwill and Intangibles**

The table below presents detail of the Company's Goodwill and intangibles:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| | Goodwill | Intangible Assets | Total | Goodwill | Intangible Assets | Total |
| Banking segment | $271 | $476 | $747 | $271 | $512 | $783 |
| Payments segment | 13814 |  | 13814 | 13814 |  | 13814 |
| Total | $14085 | $476 | $14561 | $14085 | $512 | $14597 |

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The change in goodwill and intangible assets relates to amortization of intangible assets during the three months ended March 31, 2026.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**Residuals in Securitizations, at Fair Value**

The residuals in securitizations, at fair value arise from the NALP Business Loan Trust 2025-1 ALP securitization and the NALP Business Loan Trust 2026-1 ALP securitization that NALH closed on April 23, 2025 and January 21, 2026, respectively (collectively "the Unconsolidated Trusts"). Residuals in securitizations were $197.5 million as of March 31, 2026. The Unconsolidated Trusts meet the definition of a VIE. The Company's subsidiary NALH holds a variable interest in the VIEs, however, the Company is not considered the primary beneficiary of the VIEs, because the power over the activities that have the most significant impact on the economic performance of the Unconsolidated Trusts is held by the owners of the respective Class C Note issued by the Unconsolidated Trusts, and therefore, the Company is not required to consolidate the Unconsolidated Trusts. The Company's beneficial interest in the Unconsolidated Trusts is evidenced by NALH's sole ownership of the Ownership Certificates and its beneficial interest in the credit risk of the securitized ALP Loans. As the Sponsor (NALH) is a wholly owned subsidiary of the Company, the Company effectively owns 100% of the equity interest in the Unconsolidated Trusts. Refer to NOTE 3—SECURITIZATIONS AND VARIABLE INTEREST ENTITIES in the accompanying notes to the consolidated financial statements for additional information.

**Settlement Receivable**

Settlement receivables were $51.5 million as of March 31, 2026, an increase of $51.1 million compared to December 31, 2025. The settlement receivable arises from the guaranteed portions of SBA 7(a) loans that were traded in the period but did not settle during the current period end and the cash was not received from the purchasing broker during the current period; the amount varies depending on loan origination volume and timing of sales at period end.

**Deferred Taxes** 

The deferred tax asset, net, represents the cumulative timing differences between book and tax to the extent such assets or liabilities give rise to taxable income or expense in future periods. Within this balance is the deferred tax asset on net operating loss (NOL) carryforwards not expected to be utilized in the current year. The Company evaluated all NOLs for a valuation allowance and determined that none were required. The change in the Company's net deferred tax position during the quarter was primarily related to changes in deferred taxes associated with fair value adjustments, resulting in a net deferred tax asset as of March 31, 2026.

**LIABILITIES**

Total liabilities at March 31, 2026, were $2.5 billion, an increase of $134.8 million, or 5.7%, compared to total liabilities of $2.3 billion at December 31, 2025.

**Deposits**

Total deposits were $1.9 billion at March 31, 2026, consisting of $71.6 million in non-interest bearing deposits and $1.8 billion in interest bearing deposits, a $439.5 million increase from the balance as of December 31, 2025. The increase in deposits is a result of increases in all of our deposit products due to our competitive interest rates well above the risk free rate and what we view as the sticky deposit relationships we foster by providing value to our depositors via the Newtek Advantage. As of March 31, 2026 and December 31, 2025, insured deposits represent 77.8% and 80.3%, respectively, of deposits.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**Borrowings**

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| | | | |
|:---|:---|:---|:---|
| **Borrowings Outstanding** | **March 31, 2026** | **December 31, 2025** | **Change** |
| Secured Borrowings: |  |  |  |
| &nbsp;&nbsp;Notes Payable - Securitization Trusts<sup>1,2</sup> | $113944 | $127050 | $(13106) |
| &nbsp;&nbsp;NMS Goldman Facility<sup>2</sup> | 88201 | 88352 | (151) |
| &nbsp;&nbsp;SPV I Capital One Facility<sup>2,3</sup> |  | 16085 | (16085) |
| &nbsp;&nbsp;SPV II Deutsche Bank Facility<sup>2</sup> | 4532 | 169146 | (164614) |
| &nbsp;&nbsp;SPV III One Florida Bank Facility<sup>2</sup> | 30212 | 33259 | (3047) |
| &nbsp;&nbsp;FHLB Advances | 6832 | 7349 | (517) |
| Total Secured Borrowings | 243721 | 441241 | (197520) |
| Unsecured Borrowings<sup>2</sup>: |  |  |  |
| &nbsp;&nbsp;2026 Notes (5.50%)<sup>4,6</sup> |  | 95000 | (95000) |
| &nbsp;&nbsp;2027 Notes (8.125%)<sup>5</sup> | 49975 | 49967 | 8 |
| &nbsp;&nbsp;2028 Notes (8.00%) | 39160 | 39073 | 87 |
| &nbsp;&nbsp;2029 Notes (8.50%) | 70193 | 70066 | 127 |
| &nbsp;&nbsp;2029 Notes (8.625%) | 73272 | 73150 | 122 |
| &nbsp;&nbsp;2030 Notes (8.375%)<sup>4</sup> | 51427 | 51391 | 36 |
| &nbsp;&nbsp;2031 Notes (8.50%)<sup>6</sup> | 7808 |  | 7808 |
| &nbsp;&nbsp;2033 Notes (8.375%) | 14915 |  | 14915 |
| Total Unsecured Borrowings | 306750 | 378647 | (71897) |
| Total Borrowings | $550471 | $819888 | $(269417) |

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<sup>1 &nbsp;&nbsp;&nbsp;&nbsp;</sup>Non-recourse.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;Net of deferred financing costs.

<sup>3</sup> &nbsp;&nbsp;&nbsp;&nbsp;On March 25, 2026 the SPV I Capital One Facility was fully repaid and terminated.

<sup>4</sup>&nbsp;&nbsp;&nbsp;&nbsp;On October 21, 2025, the Company entered into agreements with two institutional investors that were existing holders of the 2026 Notes to exchange the $20.0 million in total principal amount of the 2026 Notes held by such investors for an equal principal amount of the 2030 Notes. On February 1, 2026, the 2026 Notes matured.

<sup>5</sup>&nbsp;&nbsp;&nbsp;&nbsp;Effective December 11, 2024, the Company entered into the Amendment and Exchange Agreements with each of the holders of the 2025 8.125% Notes, pursuant to which the Company and the holders of the 2025 8.125% Notes agreed to exchange the 2025 8.125% Notes for the 2027 Notes, effecting amendments solely to (i) extend the February 1, 2025 maturity date of the 2025 8.125% Notes to the new maturity date of February 1, 2027 (the "New Maturity Date") and (ii) provide that the 2027 Notes will be redeemable in whole, but not in part, at any time, at the option of the Company, from November 1, 2026 to the New Maturity Date, at a redemption price of 100% of the outstanding principal amount being redeemed plus any accrued but unpaid interest, to but excluding the redemption date.

<sup>6</sup>&nbsp;&nbsp;&nbsp;&nbsp;On January 28, 2026, $7.9 million of 2026 Notes were tendered and exchanged for 2031 Notes in response to the Company's offer to exchange the 2026 Notes for newly issued 2031 Notes. The 2031 Notes bear interest at a rate of 8.50% per year payable quarterly on February 1, May 1, August 1 and November 1 of each year, and will mature on February 1, 2031. On February 1, 2026, the Company repaid the remaining $87.1 million aggregate principal amount of 2026 Notes outstanding on the 2026 Notes maturity date.

Borrowings were $550.5 million at March 31, 2026, compared to $819.9 million at December 31, 2025. This decrease was primarily due to $183.7 million repayments of borrowings under the SPV I (facility was paid in full and terminated on March 25, 2026), II and III facilities, $95.0 million maturity of the 2026 Notes and $13.1 million reduction in the notes payable on securitization trusts. These decreases were partially offset by the $7.8 million and $14.9 million issuances of the 2031 Notes and 2033 Notes, respectively.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**<u>Results of Operations</u>**

Set forth below is a comparison of the results of operations for the three months ended March 31, 2026 and 2025.

**<u>Summary</u>**

For the three months ended March 31, 2026, the Company reported net income of $13.4 million, or $0.43 per basic and $0.43 per diluted share, compared to net income of $9.4 million, or $0.36 per basic and $0.35 diluted share, for the three months ended March 31, 2025.

The net increase in net income was attributable to the following items:

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | |
| | **2026** | **2025** |<br>**Change** |
| Net interest income after provision for credit losses | $7618 | $428 | $7190 |
| Noninterest income | 53731 | 52398 | 1333 |
| Noninterest expense | 44263 | 41177 | 3086 |
| Net income before taxes | 17086 | 11649 | 5437 |
| &nbsp;&nbsp;Income tax expense | 3685 | 2282 | 1403 |
| Net income | $13401 | $9367 | $4034 |

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**Net Interest Income**

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | |
| | **2026** | **2025** |<br>**Change** |
| **Interest income** |  |  |  |
| &nbsp;&nbsp;Debt securities available-for-sale | $216 | $276 | $(60) |
| &nbsp;&nbsp;Loans and fees on loans | 37702 | 34483 | 3219 |
| &nbsp;&nbsp;Other interest earning assets | 8323 | 3131 | 5192 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 46241 | 37890 | 8351 |
| **Interest expense** |  |  |  |
| &nbsp;&nbsp;Deposits | 15270 | 9845 | 5425 |
| &nbsp;&nbsp;Notes and securitizations | 9402 | 10974 | (1572) |
| &nbsp;&nbsp;Bank and FHLB borrowings | 4343 | 3138 | 1205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 29015 | 23957 | 5058 |
| **Net interest income** | 17226 | 13933 | 3293 |
| &nbsp;&nbsp;Provision for credit losses | 9608 | 13505 | (3897) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision for credit losses | $7618 | $428 | $7190 |

---

***Interest Income***

*Loans and fees on loans:* The $3.2 million increase in interest income on the Company's loan portfolio was attributable to an increase in the average outstanding accrual portfolio of loans held for investment increasing to $1.7 billion from $1.4 billion for the three months ended March 31, 2026 and 2025, respectively. The increase in the average outstanding accrual loan portfolio resulted from the origination of new SBA 7(a) loans period over period.

*Other interest earning assets:* The $5.2 million increase in interest income from other interest earnings assets was attributable to an increase in the average quarterly outstanding balance of interest-earning balances in other banks.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

***Interest Expense***

The following is a summary of interest expense by facility for the three months ended March 31, 2026 and 2025:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | |
| | **March 31, 2026** | **March 31, 2025** |<br>**Change** |
| Deposits | $15270 | $9845 | $5425 |
| Notes and securitizations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes payable - Securitization Trusts | 2126 | 3367 | (1241) |
| &nbsp;&nbsp;&nbsp;&nbsp;2025 5.00% Notes<sup>1</sup> |  | 462 | (462) |
| &nbsp;&nbsp;&nbsp;&nbsp;2026 Notes<sup>2,3</sup> | 432 | 1761 | (1329) |
| &nbsp;&nbsp;&nbsp;&nbsp;2027 Notes | 1022 | 1022 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;2028 Notes | 887 | 887 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;2029 8.50% Notes | 1653 | 1655 | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;2029 8.625% Notes | 1739 | 1739 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;2030 Notes<sup>2,5</sup> | 1278 | 81 | 1197 |
| &nbsp;&nbsp;&nbsp;&nbsp;2031 Notes<sup>3</sup> | 120 |  | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;2033 Notes<sup>4</sup> | 145 |  | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total notes and securitizations | 9402 | 10974 | (1572) |
| FHLB and Other Bank Borrowings: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other Bank Borrowings | 4296 | 3034 | 1262 |
| &nbsp;&nbsp;&nbsp;&nbsp;FHLB Advances | 47 | 104 | (57) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total bank and FHLB borrowings | 4343 | 3138 | 1205 |
| **Total interest expense** | $29015 | $23957 | $5058 |

---

<sup>1</sup>&nbsp;&nbsp;&nbsp;&nbsp;On March 31, 2025, the 2025 5.00% Notes matured.

<sup>2</sup>&nbsp;&nbsp;&nbsp;&nbsp;On October 21, 2025, the Company entered into agreements with two institutional investors that were existing holders of the Company's 2026 Notes to exchange $20.0 million in total principal amount of the Company's 2026 Notes held by such investors for an equal principal amount of the Company's 2030 Notes. One of the investors also agreed to purchase $2.0 million in newly issued additional principal amount of the Company's 2030 Notes. The transactions were conducted pursuant to exemptions from the registration requirements of the Securities Act. On February 1, 2026, the 2026 Notes matured.

<sup>3</sup>&nbsp;&nbsp;&nbsp;&nbsp;On January 28, 2026, $7.9 million of 2026 Notes were tendered and exchanged for 2031 Notes in response to the Company's offer to exchange the 2026 Notes for newly issued 2031 Notes. The 2031 Notes bear interest at a rate of 8.50% per year payable quarterly on February 1, May 1, August 1 and November 1 of each year, will mature on February 1, 2031. On February 1, 2026, the Company repaid the remaining $87.1 million aggregate principal amount of 2026 Notes outstanding on the 2026 Notes maturity date.

<sup>4</sup>&nbsp;&nbsp;&nbsp;&nbsp;On February 18, 2026, the Company completed an exempt offering of $15.0 million aggregate principal amount of its 8.375% Notes due 2033. The 2033 Notes will mature on March 1, 2033. The 2033 Notes may be redeemed by the Company, at its option, at a make-whole price at any time prior to January 1, 2033, or at a price equal to 100% of the principal amount of the 2033 Notes to be redeemed, plus accrued and unpaid interest, if any, thereafter. The 2033 Notes bear interest at a rate of 8.375% per year payable semiannually on February 1 and August 1 each year, beginning on August 1, 2026.

<sup>5</sup>&nbsp;&nbsp;&nbsp;&nbsp;On March 19, 2025, the Company completed an exempt offering of $30.0 million aggregate principal amount of notes due 2030. The Notes will mature on April 1, 2030. The Notes bear interest at a rate of 8.375% per year, payable semiannually on April 1 and October 1 each year, commencing on October 1, 2025.

The increase in interest expense period over period is primarily due to the Company's continued growth in deposits that increased interest expense by $5.4 million. In addition, there was additional interest expense on the 2030 Notes of $1.2 million and an increase in interest expense on bank and FHLB borrowings of $1.2 million. The increase was partially offset by a reduction in Notes payable - Securitization Trusts of $1.2 million, and a reduction of $1.3 million due to the exchange and maturity of the 2026 Notes.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**Provision for Credit Losses**

The provision for loan and lease credit losses represents the amount necessary to be charged against the current period's earnings to maintain the ACL on loans at a level that the Company believes is appropriate in relation to the estimated losses inherent in the loan portfolio.

For the three months ended March 31, 2026 and 2025, there was a provision for loan credit losses of $9.6 million and $13.5 million, respectively. The decrease was due to the stabilization of the ACL following three years of reserve build associated with the Company's adoption of CECL in 2023 and subsequent loan portfolio growth.

***Net Interest Income and Margin***

***Average Balances and Yields.*** The following table presents information regarding average balances for assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amount of interest expense on average interest-bearing liabilities, and the resulting average yields and costs. The yields and costs for the periods indicated are derived by dividing the income or expense by the average balances for assets or liabilities, respectively, for the periods presented and annualizing that result. Loan fees are included in interest income on loans.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2026** | **2026** | **2025** | **2025** | **2025** |
| | **Average Balance** | **Interest** | **Average Yield / Rate** | **Average Balance** | **Interest** | **Average Yield / Rate** |
| **Interest-earning assets:** |  |  |  |  |  |  |
| Other interest-earning assets | $601050 | $8323 | 5.62% | $292972 | $3131 | 4.33% |
| Investment securities | 16512 | 216 | 5.31 | 23462 | 276 | 4.77 |
| Loans held for sale | 750187 | 15619 | 8.44 | 493621 | 13961 | 11.47 |
| Loans held for investment | 1223601 | 22083 | 7.32 | 1050166 | 20522 | 7.93 |
| Total interest-earning assets | 2591350 | 46241 | 7.24 | 1860221 | 37890 | 8.26 |
| Less: Allowance for credit losses on loans | (45974) |  |  | (33140) |  |  |
| Noninterest earning assets | 233416 |  |  | 271244 |  |  |
| Total assets | $2778792 |  |  | $2098325 |  |  |
| **Interest-bearing liabilities:** |  |  |  |  |  |  |
| &nbsp;&nbsp;Demand | $224494 | $380 | 0.69% | $121157 | $403 | 1.35% |
| &nbsp;&nbsp;Savings and NOW | 920043 | 9443 | 4.16 | 402834 | 4278 | 4.31 |
| &nbsp;&nbsp;Money Market | 91284 | 828 | 3.68 | 36630 | 393 | 4.35 |
| &nbsp;&nbsp;Time | 439567 | 4619 | 4.26 | 407353 | 4771 | 4.75 |
| Total deposits | 1675388 | 15270 | 3.70 | 967974 | 9845 | 4.12 |
| Borrowings | 642618 | 13745 | 8.67 | 712518 | 14112 | 8.03 |
| Total interest-bearing liabilities | 2318006 | 29015 | 5.08 | 1680492 | 23957 | 5.78 |
| Noninterest-bearing deposits |  |  |  |  |  |  |
| Noninterest-bearing liabilities | 59768 |  |  | 118525 |  |  |
| Shareholders' equity | 401018 |  |  | 299308 |  |  |
| Total liabilities and shareholders' equity | $2778792 |  |  | $2098325 |  |  |
| Net interest income and interest rate spread |  | $17226 | 2.16% |  | $13933 | 2.48% |
| Net interest margin |  |  | 2.70% |  |  | 3.04% |
| Ratio of average interest-earning assets to average interest bearing liabilities |  |  | 111.79% |  |  | 110.70% |

---

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

***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.

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026 vs. 2025** | **2026 vs. 2025** | **2026 vs. 2025** |
| | **Increase (Decrease) Due to** | **Increase (Decrease) Due to** | **Increase (Decrease) Due to** |
| | **Rate** | **Volume** | **Total** |
| **Interest income:** | | | |
| Other interest-earning assets | $1900 | $3292 | $5192 |
| Investment securities | 22 | (82) | (60) |
| Loans held for sale | (5598) | 7256 | 1658 |
| Loans held for investment | (1828) | 3389 | 1561 |
| Total interest income | (5504) | 13855 | 8351 |
| **Interest expense:** |  |  |  |
| Demand | (367) | 344 | (23) |
| Savings and NOW | (329) | 5493 | 5164 |
| Money Market | (150) | 586 | 436 |
| Time | (529) | 377 | (152) |
| Borrowings | 1017 | (1384) | (367) |
| Total interest expense | (358) | 5416 | 5058 |
| Net interest income | $(5146) | $8439 | $3293 |

---

**Non-Interest Income**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **2026/2025 Increase/(Decrease)** | **2026/2025 Increase/(Decrease)** |
| | **2026** | **2025** | **Amount** | **Percent** |
| Dividend income | $450 | $1686 | $(1236) | (73.3)% |
| Net loss on loan servicing assets | (6197) | (3652) | (2545) | 69.7 |
| Servicing income | 6385 | 5525 | 860 | 15.6 |
| Net gains on sales of loans | 26682 | 12961 | 13721 | 105.9 |
| Net (loss) gain on residuals in securitizations | 56144 |  | 56144 | 100.0 |
| Net gain (loss) on loans under the fair value option | (49578) | 18077 | (67655) | (374.3) |
| Electronic payment processing income | 10404 | 10609 | (205) | (1.9) |
| Other noninterest income | 9441 | 7192 | 2249 | 31.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | $53731 | $52398 | $1333 | 2.5% |

---

***Dividend Income***

For the three months ended March 31, 2026 and 2025, dividend income was dependent on the earnings of our joint ventures.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

***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 (dissolved in September 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 Bank are measured at LCM and amortized based on their estimated life, and impairment is recorded to the extent the amortized cost exceeds the asset's FV. Net loss on loan servicing assets is shown net of amortization expense.

The larger loss in Net loss on loan servicing assets is due to the decrease in NSBF's total portfolio of loans during the wind-down.

***Servicing Income***

The increase in servicing income was related to an increase of $93.8 million in the average total loan portfolio for which we earn servicing income period over period.

***Net Gains on Sales of Loans***

Net gains on sales of loans for the three months ended March 31, 2026 and 2025 were as follows:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2025** |
| Gains recognized on sales of loans | $26781 | $13138 |
| Losses recognized on sales of loans | (99) | (177) |
| Net gains on sales of loans | $26682 | $12961 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** |
| | **# of Loans** | **$ Amount** | **# of Loans** | **$ Amount** |
| SBA loans originated | 898 | $202420 | 542 | $213381 |
| SBA guaranteed loans sold | 323 | 95878 | 335 | 100546 |
| Average sale price as a percent of principal balance<sup>1</sup> |  | 110.23% |  | 111.16% |

---

<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Realized gains greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains recognized above reflect amounts net of split with the SBA.

For the three months ended March 31, 2026, the average sale price on SBA 7(a) loans as a percent of principal balance was 110.23% compared to 111.16% for the prior period. The decrease in sales prices in 2026 resulted from lower demand. The increase in overall net gains on sales of loans resulted from the addition of $13.9 million servicing assets related to the 2026-1 Trust securitization partially offset by lower volumes of sales compared to the prior year at lower market premiums than the prior year. Additionally, the decrease in SBA 7(a) guaranteed loans sold is primarily due to management holding the loans for a longer period of time.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

The table below provides selected statistics on the historical net premiums on sales of guaranteed portions of SBA 7(a) loans realized by NewtekOne:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **SBA 7(a) Sales Price as Percent of Principal Balance (%)** | **SBA 7(a) Sales Price as Percent of Principal Balance (%)** | **SBA 7(a) Sales Price as Percent of Principal Balance (%)** | **SBA 7(a) Sales Price as Percent of Principal Balance (%)** |
| | **Average** | **High** | **Low** | **Median** |
| Year ended December 31, 2023 | 110.20% | 114.04% | 106.00% | 110.42% |
| Year ended December 31, 2024 | 110.97% | 114.80% | 107.18% | 111.19% |
| Year ended December 31, 2025 | 110.45% | 114.06% | 107.80% | 110.46% |
| Three months ended March 31, 2026 | 110.23% | 114.83% | 108.66% | 110.26% |
| Weighted Average | 110.56% | 114.83% | 107.18% | 110.74% |

---

***Net (Loss) Gain on Residuals in Securitizations***

Net (loss) gain on residuals in securitizations for the three months ended March 31, 2026 were $56.1 million. There were no net gains on residuals in securitizations for the three months ended March 31, 2025. This resulted from the Company's equity interest in the 2025-1 Securitization Trust and the 2026-1 Securitization Trusts which closed on April 23, 2025 and January 21, 2026, respectively. To consummate the 2026-1 transaction, $341.8 million of ALP loans held for sale at fair value were sold into the securitization trust at par. This resulted in $66.4 million of previously recorded gains on ALP loans under the fair value option to be reversed, which was a large driver of the change described in the section below. The residual in the securitization (represented by the ownership certificates) was then valued resulting in a gain that was netted against the transaction costs. Refer to NOTE 3—SECURITIZATIONS AND VARIABLE INTEREST ENTITIES in the accompanying notes to the consolidated financial statements for additional information.

***Net Gain (Loss) on Loans Accounted for Under the Fair Value Option***

Net gain (loss) on loans accounted for under the fair value option for the three months ended March 31, 2026 and 2025 were as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | |
| | **March 31, 2026** | **March 31, 2025** |<br>**Change** |
| SBA 7(a) Unguaranteed Loans | $(3976) | $(4579) | $603 |
| SBA 7(a) Guaranteed Loans | 7527 | 7965 | (438) |
| SBA 504 and Non-SBA Loans | (53129) | 14691 | (67820) |
| &nbsp;&nbsp;Net Gain (Loss) on Loans Accounted for Under the Fair Value Option | $(49578) | $18077 | $(67655) |

---

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 March 31, 2026 and 2025, 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 March 31, 2025, 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 $67.8 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 2026-1 transaction as noted above.

***Electronic Payment Processing Income***

The $0.2 million decrease in electronic payment processing revenue for the three months ended March 31, 2026 corresponded with the decrease in electronic payment processing expense of $0.3 million for the three months ended March 31, 2026.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

***Other Noninterest Income***

For the three months ended March 31, 2026 and 2025, other noninterest income related primarily to loan origination fees (legal and packaging) on loans sold or carried at fair value. Other items that contributed to the $2.2 million increase included an increase on prepayment and late fees earned from SBA 7(a) loans. The Company originated 898 of SBA 7(a) loans compared to 542 loans for the three months ended March 31, 2026 and 2025, respectively. Adding to the increase was $2.5 million of net unrealized losses on joint ventures and other investments for the three months ended March 31, 2026 compared to unrealized gains on joint ventures and other investments of $1.1 million in the prior period.

**Non-Interest Expense**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **2026/2025 Increase/(Decrease)** | **2026/2025 Increase/(Decrease)** |
| | **2026** | **March 31, 2025** | **Amount** | **Percent** |
| Salaries and employee benefits expense | $23096 | $21316 | $1780 | 8.4% |
| Electronic payment processing expense | 4121 | 4447 | (326) | (7.3) |
| Professional services expense | 2603 | 3435 | (832) | (24.2) |
| Other loan origination and maintenance expense | 6227 | 4417 | 1810 | 41.0 |
| Technology expense | 2953 | 2728 | 225 | 8.2 |
| Other general and administrative costs | 5263 | 4834 | 429 | 8.9 |
| Total noninterest expense | $44263 | $41177 | $3086 | 7.5% |

---

***Salaries and Employee Benefits Expense***

The increase in salaries and employee benefits was primarily attributable to higher benefit costs, including medical and other insurance expenses.

***Electronic Payment Processing Expense***

The $0.3 million decrease in electronic payment processing expense for the three months ended March 31, 2026 corresponded with the $0.2 million decrease in electronic payment processing revenue for the three months ended March 31, 2026.

***Professional Services Expense***

The decrease in professional fees period over period is primarily attributable to a decrease in audit and legal fees**.**

***Other Loan Origination and Maintenance Expense***

Other loan origination and maintenance expenses during the three months ended March 31, 2026, was $6.2 million compared to $4.4 million for the three months ended March 31, 2025. The increase was due to the increase in loans originated during the period.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**Results of Segment Operations**

The Company has four reportable segments Banking, Alternative Lending, NSBF, and Payments. A description of each segment and the methodologies used to measure financial performance is described in NOTE 18—SEGMENTS in the accompanying Notes to the Consolidated Financial Statements. Net income (loss) by operating segment is presented below:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **2026/2025 Increase/(Decrease)** | **2026/2025 Increase/(Decrease)** |
| | **2026** | **2025** | **Amount** | **Percent** |
| Banking | $20204 | $6027 | $14177 | 235% |
| Alternative Lending | 8458 | 23129 | (14671) | (63)% |
| NSBF | (7470) | (4954) | (2516) | 51% |
| Payments | 3634 | 4178 | (544) | (13)% |
| Corporate & Other | (5874) | 4774 | (10648) | (223)% |
| Eliminations | (5551) | (23787) | 18236 | (77)% |
| Consolidated net income | $13401 | $9367 | $4034 | 43% |

---

***Banking*** 

The banking segment includes Newtek Bank as well as its consolidated subsidiary SBL. The financial results include the origination, sale, and servicing of SBA 7(a) loans, SBA 504 loans, C&I loans, C&I LA loans, CRE loans and ABL loans. In addition, Newtek Bank offers depository services.

The results include $18.0 million of net interest income during the three months ended March 31, 2026 compared to $12.7 million of net interest income during the three months ended March 31, 2025.

***Alternative Lending***

Alternative Lending includes NALH (Newtek ALP Holdings) and its subsidiaries. The Company originated loans under its Alternative Lending Program (ALP) from 2019 to December 2025. Prior to July 1, 2024, the Company originated ALP loans with the intent to sell to a JV, and from 2024 until the December 2025, NALH originated ALP loans HFS with the intent to securitize its ALP loan portfolio.

Within the segment's results are $3.9 million of noninterest income for the three months ended March 31, 2026, compared to $20.3 million during the three months ended March 31, 2025. The net income also included $1.9 million and $2.8 million of noninterest expense for the three months ended March 31, 2026 and 2025, respectively. The reduction in income for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 resulted from loan originations no longer being originated by NALH subsequent to December 31, 2025. Beginning in the first quarter of 2026, the Company originated C&I LA loans (formerly ALP loans) from Newtek Bank as opposed to NALH. Therefore, the origination fees associated with C&I LA loans were recognized at Newtek Bank in the first quarter of 2026 instead of under the Alternative Lending segment.

***NSBF***

NSBF relates to NSBF's legacy portfolio of SBA 7(a) loans held outside Newtek Bank. The change in net income is due to the wind-down of NSBF's operations.

***Payments*** 

Payments includes NMS, POS and Mobil Money.

Within the segment's results are $10.9 million of noninterest income for the three months ended March 31, 2026, resulting from marketing credit and debit card processing services, check approval services, processing equipment, and software, compared to $11.4 million during the three months ended March 31, 2025. The net income also included $6.9 million and $7.2 million of noninterest expense for the three months ended March 31, 2026 and 2025, respectively.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

***Corporate and Other*** 

Corporate and Other represents operations not considered to be reportable segments and/or general operating expenses of the Company, and includes the parent company, other non-bank subsidiaries including NIA, PMT, and elimination adjustments to reconcile the results of the operating segments to the consolidated financial statements prepared in conformity with GAAP.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**Liquidity and Capital Resources**

**Overview**

The Company actively manages liquidity to support business operations and meet obligations through ongoing monitoring of deposit trends and funding sources. In addition, the Company performs stress testing designed to assess our ability to meet both expected and unexpected cash flow needs. Management believes current liquidity levels are sufficient to support planned operations and react to reasonably foreseeable market volatility.

Our liquidity and capital resources are derived from our deposits, Company notes, securitization transactions and earnings and cash flows from operations, including loan sales and repayments. The Company maintains a diversified deposit base across its customers. In the three months ended March 31, 2026, our primary use of funds from operations included originations of loans and payments of fees, interest, and other operating expenses we incurred. We may raise additional equity or debt capital through both registered offerings off of a shelf registration, including "at-the-market" (ATM), and private offerings of securities. On January 27, 2023, the Company submitted a Form S-3 with the SEC in order to commence the process of re-establishing an effective shelf registration statement. The registration statement on Form S-3 was declared effective by the SEC on July 27, 2023. On November 17, 2023, the Company entered into the Original ATM Equity Distribution Agreement, which was amended and restated on June 6, 2025. The Amended and Restated Equity Distribution Agreement provides that the Company may offer and sell up to 5,000,000 shares of Common Stock from time to time through the placement agents. On November 1, 2024, the Company's Board of Directors approved a new stock repurchase program granting the Company authority to repurchase up to 1.0 million shares of Company common stock during the next twelve months. On November 7, 2025, the Company's Board of Directors approved a twelve month extension of the stock repurchase program. In addition, on September 11, 2025, the Board approved a debt repurchase program granting the Company authority to repurchase up to $5.0 million aggregate principal amount of the Company's 2029 Notes during the following six months. On April 24, 2026, the Board approved a debt repurchase program granting the Company authority to repurchase up to $5.0 million aggregate principal amount of the Company's 2028 Notes and 2029 Notes during the following twelve months. Refer to NOTE 19—SUBSEQUENT EVENTS for additional information.

Based on management's assessment as of the reporting date, the Company has not identified trends or uncertainties related to credit quality, liquidity, or capital that are reasonably likely to have a material adverse effect on its financial condition or results of operations.

**Regulatory Capital**

The Company strives to maintain prudent capital levels to absorb risk and maximizing returns to shareholders. The Company and Newtek Bank are primarily constrained by the Total Capital and Leverage ratios given the mix of assets vis-a-vis capital. The Company and Newtek Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. The Company and the Bank manage their capital to comply with their internal planning targets and regulatory capital standards administered by federal banking agencies.

Capital amounts and ratios for the Company as of March 31, 2026 and 2025 are presented in the table below:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Actual** | **Actual** | **For Capital Adequacy Purposes**<sup>1</sup> | **For Capital Adequacy Purposes**<sup>1</sup> | **For Consideration as Well-Capitalized** | **For Consideration as Well-Capitalized** |
| **NewtekOne, Inc. - March 31, 2026** | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
| Tier 1 Capital (to Average Assets) | $356775 | 13.1% | $108939 | 4.0% | N/A | N/A |
| Common Equity Tier 1 (to Risk-Weighted Assets) | 308594 | 15.6% | 89018 | 4.5% | N/A | N/A |
| Tier 1 Capital (to Risk-Weighted Assets) | 356775 | 18.1% | 118268 | 6.0% | N/A | N/A |
| Total Capital (to Risk-Weighted Assets) | 381754 | 19.3% | 158240 | 8.0% | N/A | N/A |
| **NewtekOne, Inc. - March 31, 2025** |  |  |  |  |  |  |
| Tier 1 Capital (to Average Assets) | $251880 | 12.2% | $82707 | 4.0% | N/A | N/A |
| Common Equity Tier 1 (to Risk-Weighted Assets) | 251880 | 17.3% | 65527 | 4.5% | N/A | N/A |
| Tier 1 Capital (to Risk-Weighted Assets) | 251880 | 17.3% | 87369 | 6.0% | N/A | N/A |
| Total Capital (to Risk-Weighted Assets) | 290072 | 19.9% | 116492 | 8.0% | N/A | N/A |

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<sup>1</sup> Exclusive of the capital conservation buffer of 2.5% of risk-weighted assets.

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Under the applicable regulatory capital standards, Newtek Bank remained "well-capitalized" under the prompt corrective action measures as of the reporting date, with capital ratios exceeding minimum regulatory requirements and surpassing the capital conservation buffer requirements.

Capital amounts and ratios for Newtek Bank as of March 31, 2026, and 2025 are presented in the table below.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Actual** | **Actual** | **For Capital Adequacy Purposes**<sup>1</sup> | **For Capital Adequacy Purposes**<sup>1</sup> | **For Consideration as Well-Capitalized** | **For Consideration as Well-Capitalized** |
| **Newtek Bank - March 31, 2026** | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
| Tier 1 Capital (to Average Assets) | $170832 | 9.1% | $75091 | 4.0% | $93864 | 5.0% |
| Common Equity Tier 1 (to Risk-Weighted Assets) | 170832 | 11.1% | 69256 | 4.5% | 100037 | 6.5% |
| Tier 1 Capital (to Risk-Weighted Assets) | 170832 | 11.1% | 92342 | 6.0% | 123122 | 8.0% |
| Total Capital (to Risk-Weighted Assets) | 190451 | 12.4% | 122872 | 8.0% | 153590 | 10.0% |
| **Newtek Bank - March 31, 2025** |  |  |  |  |  |  |
| Tier 1 Capital (to Average Assets) | $126404 | 10.5% | 48317 | 4.0% | $60396 | 5.0% |
| Common Equity Tier 1 (to Risk-Weighted Assets) | 126404 | 13.4% | 42607 | 4.5% | 61544 | 6.5% |
| Tier 1 Capital (to Risk-Weighted Assets) | 126404 | 13.4% | 56810 | 6.0% | 75747 | 8.0% |
| Total Capital (to Risk-Weighted Assets) | 138576 | 14.6% | 75746 | 8.0% | 94683 | 10.0% |

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<sup>1</sup> Exclusive of the capital conservation buffer of 2.5% of risk-weighted assets.

**Public Offerings**

***Equity ATM Program***

The Company's shelf registration statement on Form S-3 was declared effective by the SEC on July 27, 2023. On November 17, 2023, the Company entered into the Original ATM Equity Distribution Agreement. The Original ATM Equity Distribution Agreement provided that the Company may offer and sell up to 3.0 million shares of Common Stock from time to time through the placement agents thereunder. The Original ATM Equity Distribution Agreement was amended and restated on June 6, 2025. The Amended and Restated Equity Distribution Agreement provides that the Company may offer and sell up to 5.0 million shares of Common Stock from time to time through the placement agents thereunder (inclusive of shares of Common Stock sold under the Original ATM Distribution Agreement) and added certain additional placement agents. The Company may, subject to market conditions, engage in activity under the ATM Program.

There was no activity under the ATM Program during the three months ended March 31, 2026 and 2025.

***Debt ATM Program***

On March 13, 2026, the Company entered into a Securities Distribution Agreement (the "Securities Distribution Agreement"), by and among the Company, B. Riley Securities, Inc., Compass Point Research and Trading, LLC and Roth Capital Partners, LLC (collectively, the "Placement Agents"). Pursuant to the Securities Distribution Agreement, the Company may offer and sell up to $50.0 million aggregate principal amount (with respect to the Notes (as defined below)) and liquidation preference (with respect to the Depositary Shares (as defined below)) of its 8.50% Fixed Rate Senior Notes due 2029 (the "8.50% 2029 Notes"), 8.625% Fixed Rate Senior Notes due 2029 (the "8.625% 2029 Notes") and/or 8.50% Fixed Rate Senior Notes due 2031 (the "2031 Notes," and, together with the 8.50% 2029 Notes and the 8.625% 2029 Notes, the "Notes") and its Depositary Shares, each representing a 1/40th interest in a share of 8.50% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock (the "Depositary Shares," and, together with the Notes, the "Securities") from time to time through the Placement Agents acting as its sales agents in "at the market offerings" as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on or through Nasdaq Global Market® or any other existing trading market in the United States for the Company's Securities, sales made to or through a market maker other than on an exchange or otherwise, directly to the Placement Agents as principals, in negotiated transactions at market prices prevailing at the time of sale or at prices related to such prevailing market prices and/or in any other method permitted by law. The Securities Distribution Agreement became effective as of March 12, 2026.

There was no activity under the Securities Distribution Agreement during the three months ended March 31, 2026.

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**Stock and Debt Repurchase Programs**

On November 1, 2024, the Company's Board approved a new stock repurchase program granting the Company authority to repurchase up to 1.0 million shares of Company common stock during the following twelve months. On November 7, 2025, the Company's Board of Directors approved a twelve month extension of the stock repurchase program. The actual timing and amount of any repurchases under the plan will be determined by the Company in its discretion, and will depend on a number of factors, including market conditions, applicable legal requirements, the Company's capital needs and whether there is a better alternative use of capital. The Company has no obligation to repurchase any amount of its common stock under its new stock repurchase program. In addition, on September 11, 2025, the Board approved a debt repurchase program granting the Company authority to repurchase up to $5.0 million aggregate principal amount of the Company's 2029 Notes during the following six months. On April 24, 2026, the Board approved a debt repurchase program granting the Company authority to repurchase up to $5.0 million aggregate principal amount of the Company's 2028 Notes and 2029 Notes during the following twelve months. Refer to NOTE 19—SUBSEQUENT EVENTS for additional information. The actual timing and amount of any repurchases under the debt repurchase plan will be determined by the Company in its discretion, and will depend on a number of factors, including market conditions, applicable legal requirements, the Company's capital needs and whether there is a better alternative use of capital. The Company has no obligation to repurchase any amount of its debt securities under this debt repurchase program.

There was no activity under the stock repurchase program during the three months ended March 31, 2026 and 2025.

There was no activity under the debt repurchase program during the three months ended March 31, 2026.

***2031 Notes***

On January 28, 2026, $7.9 million of 2026 Notes were tendered and exchanged for 2031 Notes in response to the Company's offer to exchange the 2026 Notes for newly issued 2031 Notes. The 2031 Notes bear interest at a rate of 8.50% per year payable quarterly on February 1, May 1, August 1 and November 1 of each year, will mature on February 1, 2031, and may be redeemed at the Company's option, in whole or in part at any time or from time to time on or after February 1, 2028 at a redemption price of 100% of the outstanding principal amount of the 2031 Notes to be redeemed plus accrued and unpaid interest payments otherwise payable thereon for the then-current quarterly interest period accrued to, but excluding, the date fixed for redemption. The 2031 Notes trade on the Nasdaq Global Market under the trading symbol "NEWTO." At March 31, 2026, the Company was in compliance with all covenants related to the 2031 Notes.

***2029 Notes***

On May 30, 2024, the Company completed a registered offering of $71.9 million in aggregate principal amount of its 2029 8.50% Notes, which includes the underwriters' exercise of the option granted by the Company to purchase an additional $9.4 million in aggregate principal amount of the 2029 8.50% Notes. The 2029 8.5% Notes will mature on June 1, 2029. The Company received $69.6 million in proceeds, before expenses, from the sale of the 2029 8.50% Notes. The 2029 8.50% Notes bear interest at a rate of 8.50% per year payable quarterly on March 1, June 1, September 1 and December 1 of each year, commencing on September 1, 2024, and trade on the Nasdaq Global Market under the trading symbol "NEWTG." At March 31, 2026, the Company was in compliance with all covenants related to the 2029 8.50% Notes.

On September 16, 2024, the Company completed a registered offering of $75.0 million aggregate principal amount of 2029 8.625% Notes. The 2029 8.625% Notes are scheduled to mature on October 15, 2029. The Company received $72.8 million in proceeds, before expenses, from the sale of the 2029 8.625% Notes. These Notes bear interest at a rate of 8.625% per year, payable quarterly on January 15, April 15, July 15, and October 15 each year, commencing on January 15, 2025, and trade on the Nasdaq Global Market under the trading symbol "NEWTH." At March 31, 2026, the Company was in compliance with all covenants related to the 2029 8.625% Notes.

***2028 Notes***

On August 31, 2023, the Company completed a registered offering of $40.0 million in aggregate principal amount of its 8.00% 2028 Notes. The 2028 Notes are scheduled to mature on September 1, 2028. The Company received $38.0 million in proceeds, before expenses, from the sale of the 2028 Notes. The 2028 Notes bear interest at a rate of 8.00% per year payable quarterly on March 1, June 1, September 1 and December 1 of each year, commencing on December 1, 2023, and trade on the Nasdaq Global Market under the trading symbol "NEWTI." At March 31, 2026, the Company was in compliance with all covenants related to the 2028 Notes.

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***2026 Notes***

In January 2021, the Company completed a registered offering of $115.0 million aggregate principal amount of 5.50% 2026 Notes. The sale of the 2026 Notes generated proceeds of approximately $111.3 million, net of underwriter's fees and expenses. The 2026 Notes are scheduled to mature on February 1, 2026 and may be redeemed in whole or in part at any time or from time to time at the Company's option upon not less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. The 2026 Notes bear interest at a rate of 5.50% per year payable quarterly on February 1, May 1, August 1 and November 1 of each year, commencing on May 1, 2021, and trade on the Nasdaq Global Market under the trading symbol "NEWTZ." At March 31, 2026, the Company was in compliance with all covenants related to the 2026 Notes. On October 21, 2025, the Company entered into agreements with two institutional investors that were existing holders of the Company's 2026 Notes to exchange $20.0 million in total principal amount of the Company's 2026 Notes held by such investors for an equal principal amount of the Company's 2030 Notes. The transactions were conducted pursuant to exemptions from the registration requirements of the Securities Act.

On January 28, 2026, $7.9 million of 2026 Notes were tendered and exchanged for 2031 Notes in response to the Company's offer to exchange the 2026 Notes for newly issued 2031 Notes. Refer to 2031 Notes above for further detail.

On February 1, 2026, the Company repaid the remaining $87.1 million aggregate principal amount of 2026 Notes outstanding on the 2026 Notes maturity date.

The 2031, 2029 and 2028 Notes are the Company's direct unsecured obligations and rank: (i) *pari passu* with the Company's other outstanding and future unsecured indebtedness; (ii) senior to any of the Company's future indebtedness that expressly provides it is subordinated to these Notes; (iii) effectively subordinated to all the Company's existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company's subsidiaries. The Base Indenture, and each supplemental indenture thereto, contains certain covenants. The Base Indenture provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding Notes may declare such Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period. In addition, the supplemental indenture for the 2026 Notes included covenants requiring the Company to comply with (regardless of whether it is subject to), amongst other things, the asset coverage requirements set forth in Section 18(a)(1)(A) of the 1940 Act as modified by Section 61(a) of the 1940 Act (or any successor provisions). At March 31, 2026, the Company was in compliance with all covenants related to the Notes.

**Private Placements**

***2033 Notes***

On February 18, 2026, the Company completed an exempt offering of $15.0 million aggregate principal amount of its 8.375% Notes due 2033 (the " 2033 Notes" and the "Offering"). The Offering was consummated pursuant to the terms of a purchase agreement (the "Purchase Agreement") dated February 17, 2026 between the Company and an institutional accredited investor (the "Purchaser"). The Purchase Agreement provided for the Note to be issued to the Purchaser in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"). The Company relied upon this exemption from registration based in part on representations made by the Purchaser. The 2033 Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration. The net proceeds from the sale of the 2033 Notes were approximately $14.9 million. The Company intends to use the net proceeds from the sale of the 2033 Notes for general corporate purposes.

The 2033 Notes will mature on March 1, 2033. The 2033 Notes may be redeemed by the Company, at its option, at a make-whole price at any time prior to January 1, 2033, or at a price equal to 100% of the principal amount of the 2033 Notes to be redeemed, plus accrued and unpaid interest, if any, thereafter. The 2033 Notes bear interest at a rate of 8.375% per year payable semiannually on February 1 and August 1 each year, beginning on August 1, 2026. The 2033 Notes will be the Company's direct unsecured obligation and ranks pari passu, or equal, with all outstanding and future unsecured unsubordinated indebtedness issued by the Company. The 2033 Notes will be effectively subordinated to the Company's existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness, and structurally subordinated to all existing and future indebtedness and other obligations of any of the Company's subsidiaries. At March 31, 2026, the Company was in compliance with all covenants related to the 2033 Notes.

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***2030 Notes***

On March 19, 2025, the Company closed an exempt offering of $30.0 million in aggregate principal amount of its 2030 Notes. The offering was consummated pursuant to the terms of a purchase agreement dated March 19, 2025 among the Company and 11 institutional accredited investors. The purchase agreement provided for the 2030 Notes to be issued to the Purchaser in a private placement in reliance on Section 4(a)(2) of the Securities Act. The 2030 Notes are scheduled to mature on April 1, 2030 and could be redeemed in whole or in part at any time. The 2030 Notes bear interest at a rate of 8.375% per year payable semiannually on April 1 and October 1 each year, beginning October 1, 2025. On October 21, 2025, the Company entered into agreements with two institutional investors that were existing holders of the Company's 2026 Notes to exchange $20.0 million in total principal amount of the Company's 2026 Notes held by such investors for an equal principal amount of the Company's 2030 Notes. One of the investors also agreed to purchase $2.0 million in newly issued additional principal amount of the Company's 2030 Notes. The transactions were conducted pursuant to exemptions from the registration requirements of the Securities Act.

***2027 Notes***

Effective December 11, 2024, the Company entered into the Amendment and Exchange Agreements with each of the holders of the 2025 8.125% Notes, pursuant to which the Company and the holders of the 2025 8.125% Notes agreed to exchange the 2025 8.125% Notes for the 2027 Notes, effecting amendments solely to (i) extend the February 1, 2025 maturity date of the 2025 8.125% Notes to the new maturity date of February 1, 2027 (the "New Maturity Date") and (ii) provide that the 2027 Notes will be redeemable in whole, but not in part, at any time, at the option of the Company, from November 1, 2026 to the New Maturity Date, at a redemption price of 100% of the outstanding principal amount being redeemed plus any accrued but unpaid interest, to but excluding the redemption date.

***2025 Notes***

On January 23, 2023 the Company completed a private placement offering of $50.0 million aggregate principal amount of 8.125% notes due 2025. The net proceeds from the sale of the notes were approximately $48.94 million, after deducting estimated offering expenses payable by the Company. Effective December 11, 2024, the Company entered into the Amendment and Exchange Agreements with each of the holders of the 2025 8.125% Notes, pursuant to which the Company and the holders of the 2025 8.125% Notes agreed to exchange the 2025 8.125% Notes for the 2027 Notes.

**NMS Webster Note**

On September 26, 2025, the Company's wholly-owned subsidiary NMS repaid in full all of the outstanding obligations under the Webster Credit Agreement, dated as of November 8, 2018. As a result, the Webster Credit Agreement and the other loan documents executed in connection therewith have been terminated, including the Parent Guaranty Agreement, dated as of November 8, 2018, by and between the Company and Webster Bank. No early termination penalties were incurred by the Company or the Loan Parties as a result of the termination. As a result of the termination, the Company recognized a $0.2 million loss on extinguishment of debt in the three and nine months ended September 2025.

**NMS Goldman Facility**

On September 26, 2025, NMS and its wholly-owned subsidiary, Mobil Money, LLC (collectively, the "Borrowers"), together with NBSH Holdings, LLC, the direct sole member of NMS, as guarantor, entered into a Credit and Guaranty Agreement (the "Goldman Credit Agreement"), with Private Credit at Goldman Sachs Alternatives ("Goldman") as Administrative Agent and Collateral Agent thereunder and the lenders party thereto from time to time (the "Lenders"). Pursuant to the terms of the Goldman Credit Agreement, the Lenders made available to the Borrowers term loans up to an aggregate principal amount of $90.0 million (the "Term Loans") and a revolving facility up to an aggregate principal amount of $5.0 million (together with the Term Loans, collectively the "Goldman Facility"). The Goldman Facility will mature on September 26, 2030. The Company incurred approximately $1.3 million of deferred financing costs in connection with the Goldman Facility.

On September 26, 2025, the Borrowers drew down the full $90.0 million in Term Loans and used the proceeds to repay in full the outstanding amounts under the Webster Facility and pay transaction expenses related to the closing of the Goldman Facility. In addition, the Borrowers intend to use the proceeds to fund $58.5 million of loans to the Company. The Company intends to use the proceeds of such loans to repay and reduce the Company's outstanding unsecured debt, repurchase Company common shares (subject to market conditions and the terms of existing or any future share repurchase authorizations by the Company's board of directors) and for other general corporate purposes.

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Pursuant to the terms of the guaranty under the Goldman Credit Agreement, NBSH has unconditionally guaranteed the prompt and unconditional payment of all of the Borrowers' obligations under the Goldman Credit Agreement.

**SPV I, II, and III Facilities**

Newtek ALP Holdings' subsidiaries (our indirect subsidiaries) SPV I, II, and III maintain credit facilities with third party lenders. SPV I had a Capital One facility with maximum borrowings of $60.0 million. Capital One's commitment was scheduled to terminate in July 2027, with all amounts due under the SPV I Facility maturing in August 2028. On March 25, 2026 the SPV I Capital One Facility was fully repaid and terminated. SPV II has a Deutsche Bank facility with maximum borrowings $170.0 million. The Deutsche Bank Facility matures in December 2027. At March 31, 2026, total principal owed by SPV II was $5.1 million. SPV III has a One Florida Bank facility with maximum borrowings of $35.0 million. One Florida Bank's facility matures in August 2028. At March 31, 2026, total principal owed by SPV III was $30.2 million.

**Notes Payable - Securitization Trusts**

Since 2010, NSBF has engaged in securitizations of the unguaranteed portions of its SBA 7(a) loans. In the securitization, it uses a special purpose entity (the "Trust") which is considered a variable interest entity. Applying the consolidation requirements for VIEs under the accounting rules in ASC Topic 860, Transfers and Servicing, and ASC Topic 810, Consolidation, which became effective January 1, 2010, the Company determined that as the primary beneficiary of the securitization vehicle, based on its power to direct activities through its role as servicer for the Trust and its obligation to absorb losses and right to receive benefits, it needed to consolidate the Trusts. NSBF therefore consolidated the entity using the carrying amounts of the Trust's assets and liabilities. NSBF reflects the assets in SBA 7(a) Unguaranteed Non-Affiliate Investments and reflects the associated financing in Borrowings on the Consolidated Statements of Financial Condition.

In December 2021, NSBF completed its eleventh securitization which resulted in the transfer of $103.4 million of unguaranteed portions of SBA loans to the 2021-1 Trust. The 2021-1 Trust in turn issued securitization notes for the par amount of $103.4 million, consisting of $79.7 million of Class A notes and $23.8 million Class B notes, against the assets in a private placement. The Class A and Class B notes received an "A" and "BBB-" rating by S&P, respectively, and the final maturity date of the notes is December 2044. The Class A and Class B notes bear interest at a rate of adjusted SOFR plus 1.92% across both classes. NSBF has the right to call the 2021-1 Class A and B notes at such time as the sum of the principal amount of the Class A Notes and the Class B Notes is less than or equal to 20.00% of the sum of the principal amount of the Class A Notes and Class B Notes as of the closing date of the transaction, with the prior written consent of the SBA.

In September 2022, NSBF completed its twelfth securitization which resulted in the transfer of $116.2 million of unguaranteed portions of SBA loans to the 2022-1 Trust. The 2022-1 Trust in turn issued securitization notes for the par amount of $116.2 million, consisting of $95.4 million of Class A notes and $20.8 million Class B notes, against the 2022-1 Trust assets in a private placement. The Class A and Class B notes received an "A-" and "BBB-" rating by S&P, respectively, and the final maturity date of the notes is October 2049. The Class A and Class B notes bear interest at an average rate of 30-day average compounded SOFR plus 2.97% across both classes. NSBF has the right to call the 2022-1 Class A and B notes at such time as the sum of the principal amount of the Class A Notes and the Class B Notes is less than or equal to 20.00% of the sum of the principal amount of the Class A Notes and Class B Notes as of the closing date of the transaction, with the prior written consent of the SBA.

In June 2023, NSBF completed its thirteenth securitization which resulted in the transfer of $103.9 million of unguaranteed portions of SBA loans to the 2023-1 Trust. The 2023-1 Trust in turn issued securitization notes for the par amount of $103.9 million, consisting of $84.3 million of Class A notes and $19.6 million Class B notes, against the 2023-1 Trust assets in a private placement. The Class A and Class B notes received an "A-" and "BBB-" rating by S&P, respectively, and the final maturity date of the notes is October 2049. The Class A and Class B notes bear interest at an average rate of 30-day average compounded SOFR plus 3.24% across both classes. NSBF has the right to call the 2023-1 Class A and B notes at such time as the sum of the principal amount of the Class A Notes and the Class B Notes is less than or equal to 20.00% of the sum of the principal amount of the Class A Notes and Class B Notes as of the closing date of the transaction, with the prior written consent of the SBA.

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***Cash Flows and Liquidity***

The following table summarizes the Company's available sources of liquidity as of March 31, 2026 and December 31, 2025:

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| | | |
|:---|:---|:---|
| | **Availability as of**  | **Availability as of**  |
| | **March 31, 2026** | **December 31, 2025** |
| Unrestricted cash | $5222 | $4196 |
| Lines of credit at other commercial banks<sup>1</sup> | 5314 | 9591 |
| Newtek Bank: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest bearing deposits in banks | 375599 | 279618 |
| &nbsp;&nbsp;&nbsp;&nbsp;FHLB borrowing availability<sup>1</sup> | 66311 | 63296 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lines of credit at other financial institutions | 20000 | 30000 |
| Total liquidity sources | $472446 | $386701 |

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<sup>1&nbsp;&nbsp;&nbsp;&nbsp;</sup>Availability as of March 31, 2026 and December 31, 2025 is based on collateral pledged as of that date.

The Company has restricted cash of $22.2 million as of March 31, 2026. NSBF holds $5.3 million of the Company's restricted cash, which includes reserves in the event payments are insufficient to cover interest and/or principal with respect to securitizations and loan principal and interest collected which are due to loan participants. In addition, the Company has funded a $10.0 million account to fund certain of NSBF's potential obligations to the SBA pursuant to the Wind-down Agreement. of which the Company is a guarantor. The majority of the Company's remaining restricted cash is held by the parent company.

The Company generated and used cash as follows:

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| | | |
|:---|:---|:---|
| | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
| | **2026** | **2025** |
| Net cash used in operating activities | $(257460) | $(60704) |
| Net cash used in investing activities | (85262) | (79245) |
| Net cash provided by financing activities | 435447 | 52709 |
| Net increase (decrease) in cash and restricted cash | 92725 | (87240) |
| Cash and restricted cash—beginning of period (NOTE 2) | 310291 | 381374 |
| Deconsolidation of cash and restricted cash from controlled investments related to business dispositions |  |  |
| Cash and restricted cash—end of period (NOTE 2) | $403016 | $294134 |

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During the three months ended March 31, 2026, operating activities used cash of $257.5 million, consisting primarily of (i) $268.0 million of funding loans held for sale and (ii) $51.1 million increase in settlement receivables. These uses of cash were partially offset by $118.9 million of proceeds from the sale of loans.

Cash used by investing activities was $85.3 million primarily comprised (i) $100.1 million in the net increase in loans held for investment, at cost and (ii) $8.4 million in purchases of available-for-sale securities. These uses were partially offset by (i) a $15.1 million principal received on loans held for investment, at fair value; and (ii) $9.5 million in maturities of available-for-sale securities.

Net cash provided by financing activities was $435.4 million consisting primarily of a (i) $439.5 million net increase in deposits; (ii) $273.1 million of proceeds related to residuals in securitizations; (iii) $15.0 million of proceeds from the 2033 Notes; and (iv) $9.9 million of borrowings on bank notes payable. These sources of cash were partially offset by (i) $87.1 million repayment of the 2026 5.50% Notes; (ii) $13.3 million of principal payments related to Notes Payable - Securitization Trusts; (iii) $194.0 million repayment of bank notes payable; and (iv) $6.5 million of dividends paid.

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**Contractual Obligations**

The Company's obligations and commitments representing required and potential cash outflows include demand deposits, time deposits, unsecured senior notes, notes payable - securitization trusts, short-term and long-term advances from FHLB, other bank borrowings, and operating leases and other commitments as of March 31, 2026. Refer to "NOTE 10—DEPOSITS," "NOTE 11—BORROWINGS," and "NOTE 13—COMMITMENTS AND CONTINGENCIES."

***Unfunded Commitments***

At March 31, 2026, the Company had $105.8 million of unfunded commitments consisting of $43.2 million in connection with its SBA 7(a) loans, $56.9 million in connection with its SBA 504 loans, and $5.7 million relating to commercial and industrial loans. The Company funds these commitments from the same sources it uses to fund its other loan commitments.

***Guarantees***

The Company is a guarantor on several warehouse lines of credit as noted in the above table under Contractual Obligations. Refer to NOTE 11—BORROWINGS to the consolidated financial statements for the amounts outstanding, line availability, and term. The Company is also a guarantor on an NMS term loan facility. At March 31, 2026, the Company determined that it is not probable that payments would be required to be made under the guarantees. The Company is also a guarantor on certain of NSBF's potential obligations to the SBA pursuant to the Wind-down Agreement. Specifically, pursuant to the Wind-down Agreement, the Company has guaranteed NSBF's obligations to the SBA for post-purchase repairs or denials on the guaranteed portion of 7(a) Loans sold by NSBF on the secondary market or servicing/liquidation post-purchase repairs or denial, and has funded a $10.0 million account to secure these potential obligations.

**Critical Accounting Policies and Estimates** 

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies for the quarterly period ended March 31, 2026.

***Valuation of Loans at Fair Value***

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, management used various valuation approaches. ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels for disclosure purposes. We consider our loans HFI, at fair value and HFS, at fair value to be Level 3, with the exception of the guaranteed portion of SBA 7(a) loans HFS at FV which we categorize as Level 2, within the fair value hierarchy as described in Note 10. Determining the fair value of the Level 3 loans held for sale and loans held for investment, which are measured at fair value requires management to make significant judgments about the valuation methodologies and inputs and assumptions used in the fair value calculation, including, but not limited to, historical credit losses, discounts for lack of marketability, underlying cash flows, and the impact of economic conditions.

On a quarterly basis, management determines the fair values of the retained unguaranteed portions of SBA 7(a) loans HFI, and unrealized changes in FV are recognized in the income statement. The loans within this portfolio were originated by NSBF and are currently originated by Newtek Bank. NSBF ceased originating new loans in April 2023 when all new SBA 7(a) loan originations were transitioned to Newtek Bank. (See *Historical Business Regulation and Taxation,* for a discussion of the wind-down of NSBF's operations.)

The Company originated SBA 504 loans HFS prior to the Acquisition through its nonbank subsidiaries. SBA 504 loans HFS held at NALH are accounted for under the FV option. Additionally, the existing government guaranteed portion of SBA 7(a) loans and certain SBA 504 loans held at Newtek Bank are also HFS at FV.

The Company also originates C&I LA loans (formerly referred to as ALP or nonconforming conventional loans), which are HFS. Historically, these were originated via our nonbank subsidiary but beginning in the first quarter of 2026 C&I LA loans are originated at Newtek Bank. C&I LA loans are carried at FV.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

***Allowance for Credit Losses***

The allowance for credit losses consists of the allowance for credit losses and the reserve for unfunded commitments. As a result of the Company's Acquisition the adoption of ASU 2016-13, *Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments* ("CECL") and its related amendments, we developed a methodology for estimating the reserve for credit losses. The standard replaced the "incurred loss" approach with an "expected loss" approach known as current expected credit loss. The CECL approach requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). It removes the incurred loss approach's threshold that delayed the recognition of a credit loss until it was "probable" a loss event was "incurred." The estimate of expected credit losses under the CECL approach is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. Finally, the Company considers forecasts about future economic conditions that are reasonable and supportable. The reserve for unfunded commitments represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments unconditionally cancellable by the Company. The reserve for unfunded commitments is determined by estimating future draws and applying the expected loss rates on those draws.

Management of the Company considers the accounting policy relating to the allowance for credit losses to be a critical accounting policy given the uncertainty in evaluating the level of the allowance required to cover management's estimate of all expected credit losses over the expected contractual life of our loan portfolio. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the then-existing loan portfolio and other financial assets to which CECL applies, in light of the factors then prevailing, may result in significant changes in the allowance for credit losses in those future periods. While management's current evaluation of the allowance for credit losses indicates that the allowance is appropriate, the allowance may need to be increased under adversely different conditions or assumptions. Going forward, the impact of utilizing the CECL approach to calculate the reserve for credit losses will be significantly influenced by the composition, characteristics, and quality of our loan portfolio, as well as the prevailing economic conditions and forecasts utilized. Material changes to these and other relevant factors may result in greater volatility in the reserve for credit losses, and therefore, greater volatility to our reported earnings.

Consideration of losses occurs when serious doubt regarding the repayment of the loan is present. For real estate loans, current appraisals will aid in determining the amount to be charged off. For commercial loans, collateral valuations and borrower guarantees should be considered; however, weight to these two sources should be limited. Once a deficiency in collateral is determined, a reserve equal to the deficiency should be made immediately to the Allowance for Credit Losses (ACL). A charge off should be made within 90 days if a full analysis confirms the deficiency cannot be covered via additional collateral or resources of the borrower or guarantors.

***Valuation of Servicing Assets***

For the quarterly period ended March 31, 2026, the Company accounted for servicing assets in accordance with ASC Topic 860-50 - Transfers and Servicing - Servicing Assets and Liabilities. The Company and Newtek Bank earn servicing fees primarily from the guaranteed portions of SBA 7(a), ALP, and SBA 504 loans they originate and sell. 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 Bank are measured at LCM and amortized based on their estimated life and impairment is recorded to the extent the amortized cost exceeds the asset's FV.

***Recently Adopted Accounting Pronouncements and New Accounting Standards***

Refer to NOTE 2—SIGNIFICANT ACCOUNTING POLICIES for information on recently adopted accounting pronouncements and new accounting standards.

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**Off Balance Sheet Arrangements**

In the normal course of business, the Company enters into various transactions to meet the financing needs of clients, which, in accordance with GAAP, are not included in the consolidated balance sheets. These transactions may include commitments to extend credit, standby letters of credit, and the construction phase of SBA 504 loans, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The SBA 504 loans are expected to partially draw, if not fully draw. All off-balance sheet commitments are included in the determination of the amount of risk-based capital that the Company and Newtek Bank are required to hold.

The Company's exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit, standby letters of credit, and commercial letters of credit is represented by the contractual or notional amount of those instruments. The Company manages risk of exposure to credit losses under these commitments by subjecting them to credit approval and monitoring procedures. The Company assesses the credit risk associated with certain commitments to extend credit and establishes a liability for credit losses.

Further information related to financial instruments can be found in NOTE 13—COMMITMENTS AND CONTINGENCIES.

***Residuals in Securitizations, at Fair Value***

On April 23, 2025, the Company's subsidiary Newtek ALP Holdings closed a securitization pursuant to which it sold $155.9 million of Class A Notes, $23.8 million of Class B Notes, and $4.3 million of a Class C Note (collectively, the "2025-1 Notes") issued by NALP Business Loan Trust 2025-1 (the "Securitization Trust"). The 2025-1 Notes were backed by $216.6 million of collateral, consisting of Newtek ALP Holdings originated ALP loans. The Class A Notes received a Morningstar DBRS rating of "A (low) (sf)" and were priced at a yield of 6.338%; the Class B Notes received a Morningstar DBRS rating of "BBB (sf)" and were priced at a yield of 7.838%; and the Class C Note received a Morningstar DBRS rating of "BB (sf)" and was priced at a yield of 10.338%. The 2025-1 Notes had a weighted average yield of 6.62% and an 85% advance rate.

On January 21, 2026, the Company's subsidiary Newtek ALP Holdings closed a securitization pursuant to which it sold $251.9 million of Class A Notes, $35.9 million of Class B Notes, and $6.8 million of a Class C Note (collectively, the "2026-1 Notes") issued by NALP Business Loan Trust 2026-1. The Notes are backed by $341.8 million of collateral, consisting of $284.4 million of Company originated ALP loans and a prefunding account to acquire additional ALP loans originated by the Company. The Class A Notes received a Morningstar DBRS rating of "A (low) (sf)" and were priced at a yield of 5.796%; the Class B Notes received a Morningstar DBRS rating of "BBB (sf)" and were priced at a yield of 7.296%; and the Class C Note received a Morningstar DBRS rating of "BB (sf)" and was priced at a yield of 10.146%. The 2026-1 Notes had a weighted average yield of 6.08% and an 86% advance rate.

The 2025-1 and the 2026-1 Trusts (collectively "the Unconsolidated Trusts") meet the definition of a VIE and the Company holds a variable interest in the Unconsolidated Trusts, however, the Company is not considered the primary beneficiary of the Unconsolidated Trusts, because the power over the activities that have the most significant impact on the economic performance of the Unconsolidated Trusts is held by a single noteholder who has the unilateral ability to remove the Company, without cause, as decision maker over the activities that most significantly impact the economic performance of the Unconsolidated Trusts. Consequently the Company is not required to consolidate the Unconsolidated Trusts. The Company's beneficial interest in the Unconsolidated Trusts is evidenced by NALH's sole ownership of the Ownership Certificates and its beneficial interest in the credit risk of the securitized ALP Loans. Newtek ALP Holdings, the sponsor of the Unconsolidated Trusts, is a wholly owned subsidiary of the Company, therefore the Company effectively owns 100% of the equity interest in the Unconsolidated Trusts.

Further information related to financial instruments can be found in NOTE 3—SECURITIZATIONS AND VARIABLE INTEREST ENTITIES.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**Recent Developments** 

***Debt Repurchase Program***

On April 24, 2026, the Board approved a debt repurchase program granting the Company authority to repurchase up to $5.0 million aggregate principal amount of the Company's 2028 Notes and 2029 Notes during the following twelve months. The actual timing and amount of any repurchases under the debt repurchase plan will be determined by the Company in its discretion, and will depend on a number of factors, including market conditions, applicable legal requirements, the Company's capital needs and whether there is a better alternative use of capital. The Company has no obligation to repurchase any amount of its debt securities under this debt repurchase program. The Company has not repurchased 2028 Notes or 2029 Notes under the debt repurchase program.

***D2 Facility***

On April 28, 2026, a wholly-owned subsidiary of the Company, Newtek Business Services Holdco 6, Inc. (the "NALH Borrower"), and its wholly-owned subsidiary NBL SPV IV, LLC (the "SPV Borrower", and together with the NALH Borrower, the "Borrowers"), together with the Company as a guarantor thereunder, entered into a Term Loan Agreement (the "Loan Agreement") with D2 Asset Based Credit Partners, LP, Inc. as the Initial Lender thereunder (the "Initial Lender") and D2 Asset Services, LLC, as Agent thereunder. Pursuant to the terms of the Loan Agreement, the Initial Lender extended a term loan to the Borrowers in the aggregate principal amount of $20.9 million (the " Loan"), which Loan may be increased by an additional $10.0 million, subject to the receipt of certain lender consent and the satisfaction of other conditions set forth in the Loan Agreement. As permitted under the Loan Agreement, NALH Borrower intends to distribute all or a portion of the proceeds of the Loan to the Company, which if received by the Company, would be used for general corporate purposes.

The Loan will mature on April 28, 2029. The Loan Agreement also specifies certain events of default, the occurrence of which could require the immediate repayment of all outstanding amounts under the Loan Agreement. Pursuant to the terms of the Loan Agreement: (a) the SPV Borrower pledged certain loans owned by the SPV Borrower, and the NALH Borrower pledged its equity interests in the SPV Borrower, as security for the Loans; and (b) the Company unconditionally guaranteed the prompt and unconditional payment of all of the Borrowers' obligations under the Loan Agreement, including all Loans extended under the Loan Agreement.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.** 

We consider the principal types of risk in our business activities to be fluctuations in interest rates, the ability to raise funds (deposits, debt, and or equity) to fund our operations, and the availability of the secondary market for our SBA loans. Risk management systems and procedures are designed to identify and analyze our risks, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs.

The Company's interest rate profile on loans is based on a mix of fixed and variable rates. The same is true for its sources of funding (deposits, warehouse lines of credit, securitization trust notes, public notes, etc.). Some of our assets and liabilities are match funded, meaning that the interest rate and duration profiles are closely linked. Managing interest rate risk with matched funding means that movements in interest rates are expected to largely offset between income from assets and expenses on liabilities. For the remainder of our balance sheet, we largely take a portfolio approach to managing interest rate and liquidity risk that is inherently imprecise.

The Company depends on the availability of secondary market purchasers of our loans held for sale, but primarily for the guaranteed portions of SBA loans and the premium received on such sales to support its lending operations. Sale prices for guaranteed portions of SBA 7(a) loans could be negatively impacted by market conditions, in particular a higher interest rate environment, which typically lead to higher prepayments during the period, resulting in lower sale prices in the secondary market. A reduction in the price of guaranteed portions of SBA 7(a) loans or disruptions in the markets to which we sell could negatively impact our business.

The Company has cash and cash equivalents, which includes cash and due from banks, restricted cash, and interest bearing deposits in banks, of $403.0 million. We do not purchase or hold derivative financial instruments for trading purposes. All of our transactions are conducted in U.S. dollars and we do not have any foreign currency or foreign exchange risk. We do not trade commodities or have any commodity price risk.

We believe that we have placed our cash investments and their equivalents, which include deposits at other institutions, with high credit-quality financial institutions. As of March 31, 2026, cash deposits in excess of insured amounts totaled approximately $119.5 million. The Company and its non-bank subsidiaries have deposit accounts at Newtek Bank that total $77.3 million, of which $72.9 million is uninsured.

Interest rate risk is a significant market risk and can result from timing and volume differences in the repricing of rate-sensitive assets and liabilities, widening or tightening of credit spreads, changes in the general level of market interest rates and changes in the shape and level of market yield curves. The Company manages the interest rate sensitivity of interest-bearing liabilities and interest-earning assets in an effort to minimize the adverse effects of changes in the interest rate environment balanced against maximizing profit. Management of interest rate risk is carried out primarily through strategies involving cash, loan portfolio, and available funding sources.

The Newtek Bank board of directors has established an Asset/Liability Committee (the "ALCO Committee") to oversee the implementation of an effective process for managing the risk profile inherent in Newtek Bank's balance sheet and related business activities as well as the ongoing monitoring and reporting thereon. Risks inherent in Newtek Bank's balance sheet include interest rate risk (i.e., the risk to liquidity and capital resulting from changes in interest rates), liquidity risk (the risk to the availability of funds to execute its business strategy and meet its obligations), and similar risks. The ALCO Committee, subject to Newtek Bank board approval, is responsible for establishing policies, risk limits and capital levels (collectively "ALM Policies") as well overseeing and monitoring compliance therewith. Newtek Bank's ALM Policies set forth a risk management framework relating to managing liquidity, managing fluctuations in interest rates, capital management, investments, and hedging and the use of derivatives. The ALCO Committee and Newtek Bank's board may implement additional policies and procedures relating to these areas in order to manage risk to an appropriate level.

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The matching of assets and liabilities may be analyzed by examining the extent to which such assets and liabilities are "interest rate sensitive." An asset or liability is said to be interest rate sensitive within a specific time period if it will mature or reprice within that time period. The Company analyzes interest rate sensitivity position to manage the risk associated with interest rate movements through the use of two simulation models: economic value of equity ("EVE") and net interest income ("NII") simulations. These simulations project both short-term and long-term interest rate risk under a variety of instantaneous parallel rate shocks applied to a static balance sheet. The EVE simulation provides a long-term view of interest rate risk because it analyzes all of the Company's future cash flows. EVE is defined as the present value of the Company's assets, less the present value of its liabilities, adjusted for any off-balance sheet items. The results show a theoretical change in the economic value of shareholders' equity as interest rates change.

EVE and NII simulations are completed routinely on Newtek Bank's balance sheet and presented to the ALCO Committee. Other positions outside of Newtek Bank are typically match funded or hedged with instruments that have similar terms and/or interest rate features. The simulations provide an estimate of the impact of changes in interest rates on equity and net interest income under a range of assumptions. The numerous assumptions used in the simulation process are provided to the ALCO Committee on at least an annual basis. Changes to these assumptions can significantly affect the results of the simulation. The simulation incorporates assumptions regarding the potential timing in the repricing of certain assets and liabilities when market rates change and the changes in spreads between different market rates. The simulation analysis incorporates management's current assessment of the risk that pricing margins will change adversely over time due to competition or other factors. Simulation analysis is only an estimate of interest rate risk exposure at a particular point in time. The Company regularly models various forecasted rate projections with non-parallel shifts that are reflective of potential current rate environment outcomes. Under these scenarios, the Company's interest rate risk profile may increase in asset sensitivity, decrease in asset sensitivity, or depending on the scenario and timing of anticipated rate changes, may transition to a liability sensitive interest rate risk profile. Regular, robust modeling of various interest rate outcomes allows the Company to properly assess and manage potential risks from various rate shifts.

Estimated Changes in EVE and NII. The table below sets forth, as of March 31, 2026, the estimated changes in our (i) EVE that would result from the designated instantaneous changes in the forward rate curves; and (ii) NII that would result from the designated instantaneous changes in the U.S. Treasury yield curve, Prime Rate and the Secured Overnight Finance Rate. Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied on as indicative of actual results.

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| | | | |
|:---|:---|:---|:---|
| Basis Point ("bp") Change in | **Estimated Increase/Decrease in Net Interest Income** | **Estimated Increase/Decrease in Net Interest Income** | **Estimated Percentage Change in EVE** |
| Interest Rates | 12 Months Beginning March 31, 2026 | 12 Months Beginning March 31, 2027 | As of March 31, 2026 |
| +200 | 9.4% | 8.4% | 1.7% |
| +100 | 4.6 | 4.0 | 0.9 |
| -100 | (6.0) | (5.0) | (0.8) |
| -200 | (11.8) | (9.9) | (0.7) |

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Rates are increased instantaneously at the beginning of the projection. The Company is asset sensitive, as the Company's variable rate loan portfolio reprices the full amount of the assumed change in interest rates, while fixed-rate Company notes will reprice on maturity and the retail savings and short-term retail certificates of deposits portfolio will reprice with an assumed beta. Interest rates do not normally move all at once or evenly over time, but management believes that the analysis is useful to understanding the potential direction and magnitude of net interest income changes due to changing interest rates.

The EVE analysis shows that the Company would theoretically modestly increase market value in a rising rate environment. The EVE asset sensitivity results from the combination of fixed-rate debt and variable-rate debt which funds the variable-rate loan portfolio outside of Newtek Bank.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**ITEM 4. CONTROLS AND PROCEDURES.**

**(a) Evaluation of Disclosure Controls and Procedures:**

Our management, under the supervision and with the participation of the Chief Executive Officer (who is our principal executive officer) and Chief Financial Officer (who is our principal financial officer), evaluated the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as of March 31, 2026. The term "disclosure controls and procedures" means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of March 31, 2026, our disclosure controls and procedures were effective.

**Changes in Internal Control over Financial Reporting:**

There were no changes in the Company's internal control over financial reporting during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**PART II—OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS.** 

Refer to "NOTE 13—COMMITMENTS AND CONTINGENCIES" within the accompanying Notes to the Consolidated Financial Statements, which is incorporated by reference herein. While the final outcomes of legal proceedings are inherently unpredictable, management is currently of the opinion that the outcomes of pending and threatened matters will not have a material effect on the Company's business, consolidated financial position, results of operations or cash flows as a whole.

In addition, as a result of a litigation brought by the Federal Trade Commission (the "FTC") in October 2012, NMS voluntarily entered into, and is presently operating under, a permanent injunction with respect to certain of its business practices.

**ITEM 1A. RISK FACTORS.** 

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, "Item 1A. Risk Factors" in our 2025 Form 10-K, which could materially affect our business, financial condition and/or operating results. The risks described in our 2025 Form 10-K are not the only risks we face. Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. There have been no material changes from the risk factors set forth in our 2025 Form 10-K.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.** 

None.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES.**

None.

**ITEM 4. MINE SAFETY DISCLOSURES.** 

None.

**ITEM 5. OTHER INFORMATION.** 

None.

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**ITEM 6. EXHIBITS.**

---

| | |
|:---|:---|
| **<u>Number</u>** | **<u>Description</u>** |
| <u>[3.1](https://www.sec.gov/Archives/edgar/data/1587987/000119312514394101/d804521dex99a.htm)</u> | <u>[Amended and Restated Articles of Incorporation of Newtek Business Services Corp. (Previously filed in connection with Pre-Effective Amendment No. 3 to the Registration Statement on Form N-2 (File No. 333-191499) filed on November 3, 2014, and incorporated by reference herein).](https://www.sec.gov/Archives/edgar/data/1587987/000119312514394101/d804521dex99a.htm)</u> |
| <u>[3.2](https://www.sec.gov/Archives/edgar/data/1587987/000158798723000021/bylaws-01132023.htm)</u> | <u>[Amended Bylaws of NewtekOne, Inc. (Incorporated by reference to Exhibit 99.1 of NewtekOne, Inc's Current Report on Form 8-K, filed January 24, 2023).](https://www.sec.gov/Archives/edgar/data/1587987/000158798723000021/bylaws-01132023.htm)</u> |
| <u>[3.3](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001587987/000158798723000014/newt-20230117.htm)</u> | <u>[Articles of Amendment to Newtek Business Services Corp.'s Charter (Incorporated by reference to Exhibit 99.1 to Newtek's Current Report on Form 8-K filed January 17, 2025).](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001587987/000158798723000014/newt-20230117.htm)</u> |
| <u>[3.4](https://www.sec.gov/Archives/edgar/data/1587987/000158798725000157/exhibit31.htm)</u> | <u>[NewtekOne, Inc. Articles Supplementary, dated August 19, 2025. (Incorporated by reference to Exhibit 3.1 to Newtek's Current Report on Form 8-K, filed August 21, 2025).](https://www.sec.gov/Archives/edgar/data/1587987/000158798725000157/exhibit31.htm)</u> |
| <u>[3.5](https://www.sec.gov/Archives/edgar/data/1587987/000158798725000169/newtekone-september 2025a.htm)</u> | <u>[NewtekOne, Inc. Articles Supplementary, dated September 16, 2025. (Incorporated by reference to Exhibit 3.1 to Newtek's Current Report on Form 8-K, filed September 18, 2025).](https://www.sec.gov/Archives/edgar/data/1587987/000158798725000169/newtekone-september 2025a.htm)</u> |
| <u>[3.6](https://www.sec.gov/ix?doc=/Archives/edgar/data/1587987/000158798724000135/newt-20240618.htm)</u> | <u>[Articles of Amendment to the Amended and Restated Articles of Incorporation of NewtekOne, Inc. (Incorporated by reference to Exhibit 99.1 to Newtek's Current Report on Form 8-K, filed June 18, 2024).](https://www.sec.gov/ix?doc=/Archives/edgar/data/1587987/000158798724000135/newt-20240618.htm)</u> |
| <u>[14.1\*](newtekonecodeofbusinessc.htm)</u> | <u>[Code of](newtekonecodeofbusinessc.htm)[Business Con](newtekonecodeofbusinessc.htm)[duct &](newtekonecodeofbusinessc.htm)[Ethics](newtekonecodeofbusinessc.htm)[(revised)](newtekonecodeofbusinessc.htm)[.](newtekonecodeofbusinessc.htm)</u> |
| <u>[31.1\*](newt-33126xexh311.htm)</u> | <u>[Certification by Principal Executive Officer pursuant to Rules 13a-14 and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.](newt-33126xexh311.htm)</u> |
| <u>[31.2\*](newt-33126xexh312.htm)</u> | <u>[Certification by Principal Financial Officer pursuant to Rules 13a-14 and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, furnished herewith.](newt-33126xexh312.htm)</u> |
| <u>[32.1\*\*](newt-33126xexh321.htm)</u> | <u>[Certification by Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.](newt-33126xexh321.htm)</u> |
| <u>[32.2\*\*](newt-33126xexh322.htm)</u> | <u>[Certification by Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.](newt-33126xexh322.htm)</u> |
| 101 | Interactive Data Files Pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025; (ii) the Consolidated Statements of Income for the three months ended March 31, 2026 and 2025; (iii) the Consolidated Statements of Changes in Shareholders' Equity for the three months ended March 31, 2026 and 2025; (iv) the Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025; and (v) the Notes to the Consolidated Financial Statements. |
| 104 | Cover Page Interactive Data File (formatted in inline XBRL and contained in Exhibit 101) |

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\* Filed herewith

\*\* Furnished herewith

------

**<u>[**Table of Contents**](#i2582aed425bc4584a92e9573cb32abee_1021)</u>**

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | | |
|:---|:---|:---|
| | **NEWTEKONE, INC.** | **NEWTEKONE, INC.** |
| Date: May 8, 2026 | By: | /S/&nbsp;&nbsp;&nbsp;&nbsp;BARRY SLOANE&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |
|  |  | **Barry Sloane** |
|  |  | **Chief Executive Officer, President and Chairman of the Board<br>(Principal Executive Officer)** |
| Date: May 8, 2026 | By: | /S/&nbsp;&nbsp;&nbsp;&nbsp;FRANK M. DEMARIA&nbsp;&nbsp;&nbsp;&nbsp;  |
|  |  | **Frank M. DeMaria** |
|  |  | **Executive Vice President, Chief Financial Officer<br>(Principal Financial Officer and Principal Accounting Officer)** |

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## Exhibit 14.1

![](newtekonecodeofbusinessc001.jpg)

1 \| P a g e Revised April 2023 January 2023 NewtekOne, Inc. Code of Business Conduct and Ethics

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![](newtekonecodeofbusinessc002.jpg)

2 \| P a g e Revised April 2023 January 2023 Statement by the Chairman and Chief Executive Officer Ethics are important to NewtekOne, Inc. (the "Company") and its employees, directors, managers, consultants and independent contractors ("NewtekOne Personnel"). NewtekOne is committed to the highest ethical standards, as set forth in this Code of Business Conduct and Ethics (the "Code"), and to conducting its business with the highest level of integrity. Personally, this commitment is at the core of the values that make NewtekOne great. An uncompromising adherence to ethical excellence is integral to creating and sustaining our business of providing business and financial solutions to the small and medium-sized business market. It provides the necessary strong foundation on which our business is built and on which it can grow and prosper. All NewtekOne Personnel are responsible for the consequences of his or her actions. We must each be the guardian of NewtekOne's ethics. Leaders in NewtekOne have the extra responsibility of setting an example by their personal performance and an attitude that conveys our ethical values. That example leads us to treat everyone – employees, clients, prospects, vendors, alliance partners and competitors – with honesty and respect. The principles of the Code apply to all of us. You will be asked to acknowledge in writing that you have read the Code, understand it and agree to abide by it. If a situation arises that you think raises ethical concern and you are unsure of the appropriate action, take advantage of our open door, informal environment and raise your concerns with management or, if that is not satisfactory, follow the processes outlined in this Code. Sincerely, Barry Sloane Chairman, Chief Executive Officer and President NewtekOne, Inc.

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![](newtekonecodeofbusinessc003.jpg)

i \| P a g e revised April 2023 **TABLE OF CONTENTS** PURPOSE ............................................................................................................................... 1 GENERAL POLICY ............................................................................................................... 2 STANDARDS OF CONDUCT Compliance with Applicable Laws and Regulations .................................................. 2 Kickbacks and Bribes ................................................................................................. 3 Improper or Illegal Payments ..................................................................................... 3 Gifts and Entertainment.............................................................................................. 3 Conflicts of Interest .................................................................................................... 3 Protecting Confidential Information ........................................................................... 4 Accounting and Financial Records ............................................................................. 5 Retention of Records .................................................................................................. 6 Antitrust ..................................................................................................................... 6 Securities Laws and Insider Trading .......................................................................... 6 Use of Company Assets ............................................................................................. 7 IMPLEMENTATION AND ENFORCEMENT ..................................................................... 7 APPLICATION OF THE CODE/WAIVERS ......................................................................... 8 STATEMENT ACKNOWLEDGING RECEIPT AND ACCEPTANCE OF CODE ............. 9 APPENDIX I STATEMENT AND ATTESTATION

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page \| 1 CODE OF BUSINESS CONDUCT AND ETHICS PURPOSE NewtekOne has adopted this Code of Business Conduct and Ethics (as amended from time to time, this "Code") to communicate to all NewtekOne Personnel the ethical and legal standards that we expect you to observe when conducting the business of the Company, and in dealing with your colleagues, our business relations and our suppliers. We expect all NewtekOne Personnel to act ethically and obey all the laws and regulations applicable to the conduct of our business. When you encounter ethical or legal issues where you are not certain about the correct course of action, you should use the core values and principles described in this Code as guideposts in deciding how to proceed. We have adopted this Code to give you guidance for resolving these ethical and legal issues. In particular, this Code is intended to help you:  Recognize ethical issues and take appropriate steps to resolve those issues  Observe all laws and regulations  Deter ethical violations  Avoid conflicts of interest  Assist you in reporting any illegal or unethical conduct  Reaffirm our commitment to a corporate culture that values honesty and accountability Because rapid changes in our industry and in the law constantly present new issues, we cannot create guidelines that address all circumstances or constitute the definitive answer on every question. If after consulting this Code you remain in doubt about the correct or best course of action, you should always consult your manager or our Chief Legal Officer for guidance. If at any time there is a vacancy in the office of Chief Legal Officer, references in this Code to the Chief Legal Officer shall be read to be reference to the Chairman of our Audit Committee. The Audit Committee Chairman can be accessed through our Whistleblower Hotline 1-888-274-8360. We firmly believe that a strong commitment to ethical and legal conduct is essential for us to achieve our goals. We therefore require all NewtekOne Personnel to read, to understand and to comply with this Code. To help ensure this compliance, we have established a procedure for reporting suspected violations of the Code. Any violations of the Code may result in disciplinary action, including termination of employment. These matters are described in more detail at the end of this Code. Throughout this Code, we use the terms "NewtekOne Personnel," "NewtekOne People," "NewtekOne person," "you" and "your" to refer to all officers, directors, managers, employees, consultants and independent contractors of NewtekOne, Inc. and the terms "NewtekOne," the "Company," "we" and "our" refer to NewtekOne, Inc. and its Affiliates.1 1 Affiliates include Newtek Bank, National Association, Newtek Merchant Solutions, Newtek Small Business

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![](newtekonecodeofbusinessc005.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page \| 2 It is a condition of initial and continued employment or engagement, as applicable, that all NewtekOne Personnel certify receipt and review of the Code initially upon hire or engagement and upon any amendment thereof and in writing as required by Company policy. The Code is not a substitute for each individual's personal integrity. Nonetheless, the Code should be considered, in part, how the Company expects all NewtekOne Personnel to conduct themselves. GENERAL POLICY Your conduct with respect to other NewtekOne Personnel, clients, business partners, suppliers, shareholders, and one another should reflect the highest standards of professionalism, honesty, integrity, and fairness. You should also hold paramount the safety, health, and welfare of the public and your fellow NewtekOne Personnel in the performance of your duties. You must endeavor to deal fairly with our customers, suppliers and business partner sand any other companies or individuals with whom we do business or come into contact, including fellow employees and our competitors. You must not take unfair advantage of these or other parties by means of:  Manipulation  Concealment  Abuse of confidential or privileged information, or  Any other unfair-dealing practice. You should respect the right of all other NewtekOne Personnel to fair treatment and equal opportunity without regard to gender, gender expression, gender identity, race, religion, national origin, age, sexual orientation, color, physical or mental disability, pregnancy status, marital status, or veteran's status. The Company is determined to remain free from discrimination or harassment on the foregoing basis in all phases of employment and engagement, including recruitment, hiring or contracting, placement, promotion, transfer, contract renewal, compensation, benefits, training, educational, social and recreational programs, and the use of the Company facilities. This Code is not intended to cover every issue or situation that NewtekOne Personnel may encounter because, in addition to the Code, the Company maintains other policies that more specifically or fully address issues and circumstances that are and are not contemplated by the Code. For example, the Company also maintains a separate Insider Trading Policy. STANDARDS OF CONDUCT Compliance with Applicable Laws and Regulations Finance Newtek Technology Solutions, Newtek Small Business Lending, Newtek Business Credit Solutions, Newtek Insurance Agency, Newtek Payroll and Benefits Solutions, Newtek Payment Systems, Mobil Money, LLC, Excel Websolutions, LLC, Cloud Nine Services and Titanium.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page \| 3 It is the Company's policy to comply with the spirit and the letter of all laws and regulations governing its operations. Any violation of any law, regulation or other regulatory requirement applicable to the Company's operations, including, but not limited to, federal and state securities laws regarding insider trading, the Bank Holding Company Act, Sarbanes Oxley. U.S. Small Business Administration rules and regulations and the Federal bank bribery law, as further detailed below, by a NewtekOne person constitutes a material and serious breach of this Code and will constitute a ground for termination. In addition, you must promptly report ("Duty to Promptly Report") to the Company's Chief Legal Officer that you have been charged with, convicted of or under official investigation for, any violation of the law (excluding minor traffic or parking offenses not involving alcohol or drugs), whether or not such violations arise in any transactions to which the Company is a party, or any actual knowledge you gain that any employee, director, client, customer, consultant, servicer, contractor, subcontractor or anyone else doing business with or performing services for the Company has been charged with, convicted of or under official investigation for, any such violations of the law. Accepting Kickbacks and Bribes You are prohibited from soliciting or accepting for yourself or the Company any kickbacks, bribes, gratuities, rebates, or any form of improper payments, either directly or indirectly. You have a Duty to Promptly Report knowledge and information concerning any form of improper payments to the Company's Chief Legal Officer. Failure to fulfill in a reasonable manner the Duty to Promptly Report constitutes a material and serious breach of the Code and will constitute a ground for termination. Offering Improper or Illegal Payments It is the Company's policy that bribery in all forms is prohibited. You may not offer or make any payment or other benefit, directly or through an intermediary, to any government or corporate official or an official of any organization to influence actions, inactions or decisions, or to obtain any improper advantage with respect to that party or others they may influence. You may not make charitable contributions to organizations on behalf, or at the suggestion, of a customer, if that official can influence decisions concerning NewtekOne or the contribution is intended to enhance the Company's ability to obtain or retain business. You have a Duty to Promptly Report knowledge and information concerning illegal or improper payments to the Chief Legal Officer. Failure to fulfill in a reasonable manner the Duty to Promptly Report constitutes a material and serious breach of this Code and will constitute a ground for termination. Gifts and Entertainment You are prohibited from soliciting gifts of merchandise, personal services, or gratuities from, contractors, other NewtekOne Personnel, servicers, agents, or others with whom the Company does business. This is in addition to the restrictions imposed by the Bank Bribery Law, described below. Conflicts of Interest and Corporate Opportunities You must avoid situations where your personal interests could conflict or appear to conflict with the interest of the Company. Conflicts of interest may arise when your personal interest is inconsistent with

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page \| 4 that of the Company and could lead to your responsibilities to the Company being compromised. For example, a conflict of interest likely exists if:  you cause the Company to enter into business relationships with you or a member of your family, or invest in companies affiliated with you or a member of your family;  you, or a member of your family, receive improper personal benefits as a result of your position with us;  you use any non-public information about us, our customers or our other business partners for your personal gain, or the gain of a member of your family; or  you use or communicate confidential information obtained in the course of your work for your or another's personal benefit. In addition, each of us has a duty to advance the legitimate interests of the Company when the opportunity to do so presents itself. Therefore, you may not:  take for yourself personally opportunities, including business and investment opportunities, discovered through the use of your position with us, or through the use of our property or information;  use our property, information, or position for your personal gain or the gain of a family member; or  compete, or prepare to compete, with us. The Company is guided by federal law, and in connection with all lending activities, every NewtekOne Person should familiarize themselves with The Federal Bank Bribery Law (the "Bank Bribery Law")2. Pursuant to the Bank Bribery Law, it is a Federal crime for anyone to corruptly give anything of value to a director, officer, employee or agent with the intention of influencing that person. NewtekOne Personnel must neither solicit nor accept anything of value in exchange for any bank transaction or service or in exchange of any of NewtekOne's confidential information. Soliciting or accepting anything of value 2 For further information in complying with the Bank Bribery Law, please review the Guidelines for Compliance with Federal Bank Bribery Law made available by the FDIC at https://www.fdic.gov/regulations/laws/rules/fdic- interagency-statements.html. Section 215 of the Bank Bribery Law provides, in part, that "(a) Whoever-- (1) corruptly gives, offers, or promises anything of value to any person, with intent to influence or reward an officer, director, employee, agent, or attorney of a financial institution in connection with any business or transaction of such institution; or (2) as an officer, director, employee, agent, or attorney of a financial institution, corruptly solicits or demands for the benefit of any person, or corruptly accepts or agrees to accept, anything of value from any person, intending to be influenced or rewarded in connection with any business or transaction of such institution; shall be fined not more than $1,000,000 or three times the value of the thing given, offered, promised, solicited, demanded, accepted, or agreed to be accepted, whichever is greater, or imprisoned not more than 30 years, or both, but if the value of the thing given, offered, promised, solicited, demanded, accepted, or agreed to be accepted does not exceed $1,000, shall be fined under this title or imprisoned not more than one year, or both."

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page \| 5 either before or after a transaction is evidence of wrongdoing. This statute includes severe punishment including fines and/or imprisonment for those who violate it. There are, however, certain specific situations in which the acceptance of gifts or special benefits may be permissible. Such situations may include those that involve: (i) gifts or special benefits from relatives or close, personal friends when it is clear that the motivation for giving the gift or benefit is based upon the relationship rather than NewtekOne business; (ii) Gifts for commonly-recognized events or occasions, such as a promotion, retirement, holiday, wedding or birthday, as long the gifts are of reasonable value; (iii) advertising or promotional materials of reasonable value, such as pens, pencils, notepads, key chains, calendars and other reasonable value items; Benefits that are available to the general public under similar conditions; (iv) situations in which meals, refreshments, travel arrangements, accommodations or entertainment of reasonable value are provided in the course of a bona fide business meeting or similar business development event; (v) loans from other banks or financial institutions to finance, on customary terms, proper and usual activities of Company Personnel, such as residential mortgage loans, except where such loans are prohibited by law. It is also a crime for any person to offer, or for any employee to solicit for themselves or a third party, anything of value with the intention of being influenced, regardless of whether anything is actually received. In order to assist Company Personnel in complying with the Act, the Company has adopted the following rules: NewtekOne Personnel are required to report immediately any situation that they become aware of in which a member of the NewtekOne person's immediate family (spouse, child, parents, parents-in- law, siblings, grandparents, grandparents-in-law) has a personal or financial interest in any transaction directly or indirectly involving the Company, whether or not the transaction may be considered adverse to the Company. Protecting Confidential Information You should treat everything you learn about the Company and its business as a trade secret or confidential, unless it is obviously a matter of general public knowledge. A particular document or other material containing information does not need to be marked "trade secret" or "confidential" to be treated as such. Some examples of NewtekOne's confidential information or trade secrets include non-public financial results and information; customer lists; the terms, discount rates or fees offered to particular customers; prospective clients; marketing or strategic plans; and software, risk models, tools and other system developments. If you have any questions, you should contact the Chief Compliance Officer. You must not disclose confidential information regarding us, our affiliates, our portfolio companies, our lenders, our clients, or our other business partners, unless disclosure is authorized or required by law. Confidential information includes all non-public information that might be harmful to, or useful to the competitors of, the Company, its lenders, its clients, or its other business partners. Disclosure of confidential information may also cause NewtekOne to breach non-disclosure agreements entered into with various lenders, clients, or business partners. These obligations continue even after you leave the Company, until the information becomes publicly

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page \| 6 available or until NewtekOne no longer considers it a trade secret or proprietary information. Any documents, papers or records that contain trade secrets or proprietary information are the property of the Company, and must remain at the Company, unless you are specifically authorized to do otherwise. Third Party Information In the normal course of business, you will acquire information about other organizations, including affiliates and NewtekOne portfolio companies, clients, suppliers and competitors. You should not use information obtained from our business relations or suppliers in any way that harms them (other than in obtaining competitive advantages during our negotiations with such persons or entities) or violates our contractual obligations to them. We strive to protect the privacy of personal information of others. We will only collect, use, process, and disclose an individual's personal information in accordance with applicable law, our internal policies and our contractual obligations to our clients. Inadvertent Disclosure You should be careful to avoid the inadvertent disclosure of proprietary information. To avoid inadvertent disclosure, you should never discuss with any unauthorized person proprietary information that NewtekOne considers confidential or which we have not made public. You also should not discuss this information even with authorized NewtekOne Personnel if you are in locations where unauthorized people may overhear you, such as trade shows, airplanes or elevators, or when using non-secure electronic bulletin boards or databases. You should also not discuss this information with family members or with friends, because they may innocently or unintentionally pass the information on. In fact, you should not discuss internal NewtekOne matters with anyone outside of NewtekOne, except as clearly required in the performance of your job duties. If you have information regarding inadvertent disclosure of proprietary or confidential information, immediately contact the Chief Legal Officer. Press and Analyst Inquiries NewtekOne Personnel may from time to time receive inquiries concerning the Company or requests for information or statements concerning the Company from the news media, securities analysts or investors. All responses to such inquiries must be made only by our Chief Executive Officer (and individuals specifically designated by him or her). If you receive inquiries from these sources, you must refer them to the Chief Executive Officer or in his or her absence, the Chief Accounting Officer or Chief Legal Officer. Accounting and Financial Records We are required under U.S. securities and banking laws to keep books, records and accounts that accurately reflect all transactions and to provide an adequate system of internal accounting and controls. We expect you to ensure that those portions of our books, records and accounts for which you may have responsibility are valid, complete, accurate, supported by appropriate documentation in verifiable form and consistent with internal control procedures. You should not:  Improperly accelerate or defer expenses or revenues to achieve financial results or goals.  Maintain any undisclosed or unrecorded funds or "off the book" assets.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page \| 7  Establish or maintain improper, misleading, incomplete or fraudulent accounting documentation or financial reporting.  Record revenue for any project that has not fully complied with NewtekOne's revenue recognition guidelines.  Make any payment for purposes other than those described in the documents supporting the payment.  Submit or approve any expense report where you know or suspect that any portion of the underlying expenses were not incurred, are not accurate or are not in compliance with our Travel & Business Expense Reimbursement Policy, set forth in our Employee Handbook or Contractor Handbook, as applicable.  Sign or tender any documents believed to be inaccurate or untruthful. If you become aware of any questionable transaction or accounting practice concerning the Company or our assets, including our portfolio companies, we expect you to report the matter immediately to the Chief Legal Officer and Chairman of our Audit Committee through the Whistleblower Hotline. In addition, we expect you to report all material off-balance-sheet transactions, arrangements and obligations, contingent or otherwise, and other NewtekOne relationships with unconsolidated entities or other persons that may have material current or future effects on our financial condition or results of operations to the Chief Legal Officer or, through the Whistleblower Hotline, to Chairman of our Audit Committee. The Code in no way prohibits employees or former employees from voluntarily communicating with the SEC or other authorities regarding possible violations of law or from recovering a whistleblower award from the SEC. Retention of Documents Certain types of documents and records must by law be retained for specific periods of time, because of legal and regulatory requirements, or contractual obligations to our business relations and suppliers. These periods of time, and the types of documents and records covered, may vary. Whenever you become aware that documents or records of any type may be required in connection with a lawsuit or government investigation, you must follow the instructions of the Chief Legal Officer and preserve all possibly relevant documents. If you are uncertain whether documents or records under your control should be preserved because they might relate to a lawsuit or investigation, you should immediately contact a member of our Legal Department. The company has adopted a DOCUMENT RETENTION POLICY that all NewtekOne Personnel are subject to and which you should refer to for further information. Antitrust Antitrust laws generally prohibit agreements or actions that restrain trade or reduce competition and those with contracting authority are expected to observe the requirements to avoid anti-competitive arrangements. Securities Laws and Insider Trading

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page \| 8 The U.S. securities laws are built on the premise that a purchaser and a seller of securities should have equal access to material information regarding the company whose securities they are trading. Consequently, federal securities laws forbid the purchase or sale of securities based upon material "inside" information not available to the other party. The consequences of insider trading violations can be severe. NewtekOne Personnel who trade on inside information, or who communicate (or "tip") this information to others so that they may trade, may face a civil penalty of up to three times the profit gained (or loss avoided), a substantial criminal fine and a jail term of up to ten years. Additionally, if we or our senior officers do not take appropriate steps to prevent NewtekOne Personnel from insider trading, we may also face severe legal consequences, including, among other things, substantial criminal penalties. The Company has adopted an Insider Trading Policy and all NewtekOne Personnel are subject to it and must annually certify that they are in compliance with it. Use of Company Assets You are responsible for the proper use of the Company's physical resources and property, as well as its proprietary information. Our offices, equipment, supplies and other resources may not be used for activities which are not related to your employment or engagement with the Company, except for any activities that have been approved in writing, in advance by the Chief Executive Officer, or for personal usage that is minor in amount and reasonable. If you are found to be engaging in, or attempting, theft of any Company property, including documents, equipment, intellectual property, personal property of other employees, cash or any other items of value, you will be subject to disciplinary action, up to and including immediate termination of your employment or engagement with the Company, as applicable, and possible criminal proceedings. We expect you to report any theft or attempted theft to your manager and our Chief Legal Officer. You should avoid the unauthorized use of copyrighted or patented materials of others and should ask a member of the Legal Department if you have any questions regarding the permissibility of photocopying, excerpting, electronically copying or otherwise using copyrighted or patented materials. In addition, simply because material is available for copying (such as content or images downloaded from the Internet) does not mean that it is legal or permissible to copy or distribute. All copies of Company-related work that is authorized to be made available for ultimate distribution to the public (including all machine readable works) should bear the prescribed form of copyright notice. IMPLEMENTATION AND ENFORCEMENT All NewtekOne Personnel as a condition of employment will receive a copy of this Code and must acknowledge an understanding of the principles contained herein and annually thereafter. We reserve the right to monitor your continuing compliance with the provisions of this Code and to investigate any suspected violations. If substantiated, these violations could result in disciplinary action, as described more fully in the following sections. Anyone who has a concern about our conduct, the conduct of an officer of the Company or our accounting, internal accounting controls or auditing matters, may communicate that concern to the Audit

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page \| 9 Committee of the Board of Directors by direct communication with our Chief Legal Officer or by e-mail or in writing. All reported concerns shall be forwarded to the Audit Committee and will be simultaneously addressed by our Chief Legal Officer in the same way that other concerns are addressed by us. The status of all outstanding concerns forwarded to the Audit Committee will be reported on a quarterly basis by our Chief Legal Officer. The Audit Committee may direct that certain matters be presented to the full board and may also direct special treatment, including the retention of outside advisers or counsel, for any concern reported to it. All reports will be investigated and whenever possible, requests for confidentiality shall be honored. And, while anonymous reports will be accepted, please understand that anonymity may hinder or impede the investigation of a report. All cases of questionable activity or improper actions will be reviewed for appropriate action, discipline or corrective actions. Whenever possible, we will keep confidential the identity of employees, officers or directors who are accused of violations, unless or until it has been determined that a violation has occurred. If you are not comfortable revealing your identity when making a report, you can also make an anonymous report to the Chairman of our Audit Committee. In the case of a confidential, anonymous submission, employees should set forth their concerns in writing and forward them in a sealed envelope to the Chairperson of the Audit Committee, in care of our Chief Legal Officer, such envelope to be labeled with a legend such as: "To be opened by the Audit Committee only." For further details on this process, please consult the "Whistleblower Hotline" page on the Company's website, located at https://investor.newtekbusinessservices.com/whistleblower-hotline or call the Company's Whistleblower Hotline directly at 888-274-8360. Retaliation in any form against a NewtekOne Person who reports a violation of this Code (even if the report is mistaken but was submitted in the good faith belief it was correct) or who assists in the investigation of a reported violation is itself a serious violation of this Code. Acts of retaliation should be reported immediately and may result in severe disciplinary action. There will be no reprisal, retaliation or adverse action taken against any NewtekOne Person who, in good faith, reports or assists in the investigation of, a violation or suspected violation, or who makes an inquiry about the appropriateness of an anticipated or actual course of action, unless such party was a participant or assisted in the violation. The Code in no way prohibits employees or former employees from voluntarily communicating with the SEC or other authorities regarding possible violations of law or from recovering a whistleblower award from the SEC. OUR BOARD OF DIRECTORS AND THE CHIEF LEGAL OFFICER HAVE ULTIMATE RESPONSIBILITY FOR FINAL INTERPRETATION OF THIS CODE AND FOR DETERMINING WHETHER ANY VIOLATIONS OF THIS CODE HAVE OCCURRED. APPLICATION OF THE CODE/WAIVERS All officers, directors, managers, employees, consultants and independent contractors of the Company are subject to this Code. As far as other policies or procedures of the Company govern or purport to govern the behavior or activities of all persons who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page \| 10 Any amendment or waiver of the Code for an executive officer or member of our Board of Directors must be made by our Board of Directors and disclosed on a Current Report on Form 8-K filed with the Securities and Exchange Commission within four business days following such amendment or waiver. STATEMENT ACKNOWLEDGING RECEIPT AND ACCEPTANCE OF CODE After reviewing the Code, please execute the Statement and Attestation on the last page, detach the page, and forward it to the Chief Legal Officer and Human Resources. In executing the statement, you are acknowledging that you have received and reviewed this Code; that you will strictly comply with the Code; and that you are subject to disciplinary action for a violation thereof.

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![](newtekonecodeofbusinessc014.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACKNOWLEDGMENT REGARDING NEWTEKONE, INC. CODE OF BUSINESS CONDUCT AND ETHICS I have received a copy of the NewtekOne, Inc. Code of Business Conduct and Ethics (the "Code"), read it, and understand that the Code contains the expectations of NewtekOne, Inc. regarding employee conduct. I agree to observe the policies and procedures contained in the Code and have been advised that, if I have any questions or concerns relating to such policies or procedures I should direct them to my manager or the Chief Legal Officer; I understand that I have an obligation to report to the Audit Committee, the Chief Legal Officer or other such designated officer, any suspected violations of the Code of which I am aware. I also understand that the Code is issued for informational purposes and that it is not intended to create, nor does it represent, a contract of employment. I also understand that violation of the Code may be grounds for disciplinary action up to and including termination of employment. Employee's Name (Printed) Employee's Signature Date revised April 2023 This acknowledgment is to be signed and returned to our Chief Legal Officer and Human Resources Department and will be retained as part of your permanent personnel file. The failure to read and/or sign this acknowledgment in no way relieves you of your responsibility to comply with NewtekOne, Inc.'s Code of Business Conduct and Ethics.

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## Exhibit 31.1

**Exhibit 31.1**

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Barry Sloane, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of NewtekOne, Inc. (the "registrant").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 8, 2026 | /S/&nbsp;&nbsp;&nbsp;&nbsp;BARRY SLOANE&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |
| | **Barry Sloane** |
| | **Principal Executive Officer** |

---

## Exhibit 31.2

**Exhibit 31.2**

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Frank M. DeMaria, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of NewtekOne, Inc. (the "registrant").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: May 8, 2026 | /S/&nbsp;&nbsp;&nbsp;&nbsp; FRANK M. DEMARIA  |
| | **Frank M. DeMaria** |
| | **Principal Financial Officer** |

---

## Exhibit 32.1

**Exhibit 32.1**

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the period ended March 31, 2026 (the "Report") of NewtekOne Inc.(the "Company"), as filed with the Securities and Exchange Commission on the date hereof, I, Barry Sloane, as Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of the operations of the Company.

---

| | |
|:---|:---|
| Date: May 8, 2026 | /S/&nbsp;&nbsp;&nbsp;&nbsp;BARRY SLOANE&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |
| | **Barry Sloane,** |
| | **Principal Executive Officer** |

---

## Exhibit 32.2

**Exhibit 32.2**

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the period ended March 31, 2026 (the "Report") of NewtekOne, Inc. (the "Company"), as filed with the Securities and Exchange Commission on the date hereof, I, Frank M. DeMaria, as Principal Financial Officer of the Company, hereby certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of the operations of the Company.

---

| | |
|:---|:---|
| Date: May 8, 2026 | /S/&nbsp;&nbsp;&nbsp;&nbsp;FRANK M. DEMARIA |
| | **Frank M. DeMaria** |
| | **Principal Financial Officer** |

---

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