NewtekOne, Inc. [NEWTL] Filings

10-Q 1 newt-20230630.htm 10-Q newt-20230630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2023

o 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)

(212) 356-9500

(Registrant’s telephone number, including area code)

Not Applicable

(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

5.75% Notes due 2024

NEWTL

Nasdaq Global Market LLC

5.50% Notes due 2026

NEWTZ

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 x 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 x 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. o

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

As of August 4, 2023, there were 24,670,890 shares outstanding of the registrant’s Common Stock, par value $0.02 per share.

TABLE OF CONTENTS


		Page

	Defined Terms	4
PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements:

	Consolidated Statements of Financial Condition as of June 3 0 , 2023 (Unaudited) and December 31, 2022	7

	Consolidated Statements of Income for the three and six months ended June 3 0 , 2023 and 2022 (Unaudited)	9

	Consolidated Statements of Comprehensive Income for the three and six months ended June 3 0 , 2023 and 2022 (Unaudited)	10

	Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 3 0 , 2023 and 2022 (Unaudited)	12

	Consolidated Statements of Cash Flows for the s ix months ended June 3 0 , 2023 and 2022 (Unaudited)	16

	Notes to Consolidated Financial Statements (Unaudited)	18

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	59

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	95

Item 4.	Controls and Procedures	97

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	98

Item 1A.	Risk Factors	98

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	98

Item 3.	Defaults Upon Senior Securities	98

Item 4.	Mine Safety Disclosures	99

Item 5.	Other Information	99

Item 6.	Exhibits	99

	Signatures	100

Table of Contents

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

2016-1 Trust			Newtek Small Business Loan Trust, Series 2016-1, terminated in December 2021
2017-1 Trust			Newtek Small Business Loan Trust, Series 2017-1, terminated in February 2023
2018-1 Trust			Newtek Small Business Loan Trust, Series 2018-1
2019-1 Trust			Newtek Small Business Loan Trust, Series 2019-1
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
2022 Notes			7.50% Notes due 2022, redeemed in August 2019

2024 Notes			5.75% Notes due 2024
2025 6.85% Notes			6.85% Notes due 2025, redeemed in May 2022
2025 5.00% Notes			5.00% Notes due 2025
2025 8.125% Notes			8.125% Notes due 2025
2025 Notes			Collectively, the 2025 6.85% Notes, the 2025 5.00% Notes and the 8.125% Notes due 2025
2026 Notes			5.50% Notes due 2026
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
ASC			Accounting Standards Codification, as issued by the FASB
ASU			Accounting Standards Updates, as issued by the FASB
2020 ATM Equity Distribution Agreement			Equity Distribution Agreement, dated June 25, 2020 by and among the Company and the placement agents, as amended on July 20, 2022
BDC			Business Development Company under the 1940 Act
Board			The Company's board of directors
Capital One			Capital One Bank, National Association
C&I			Conventional commercial and industrial loans
Code			Internal Revenue Code of 1986, as amended
CRE			Conventional commercial real estate lending
Deutsche Bank			Deutsche Bank AG
DIF			Deposit Insurance Fund of the FDIC
DRIP			The Company's dividend reinvestment plan
EBITDA			Earnings before interest, taxes, depreciation and amortization
2015 Stock Incentive Plan			The Company's 2015 Stock Incentive Plan
2023 Stock Incentive Plan			The Company’s 2023 Stock Incentive 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
FDIC			Federal Deposit Insurance Corporation
LIBOR			London Interbank Offered Rate
NAV			Net Asset Value
SPV I Capital One Facility			Revolving Credit and Security Agreement between NBL SPV I, LLC, a wholly-owned subsidiary of Holdco 6, and Capital One
SPV II Deutsche Bank Facility			Revolving Credit and Security Agreement between NBL SPV II, LLC, a wholly-owned subsidiary of Holdco 6, and Deutsche Bank


SPV III One Florida Bank Facility			Revolving Credit and Security Agreement between NBL SPV III, LLC, a wholly-owned subsidiary of Holdco 6, and One Florida Bank
NBNYC			National Bank of New York City, which has been renamed Newtek Bank, National Association
Receivable and Inventory Facility			Loan and Security Agreement between NBC and Webster, as successor by merger to Sterling National Bank, as lender, to fund accounts receivable and inventory financing arrangements.
Related Party RLOC			Unsecured revolving line of credit agreement between NMS as lender and Newtek as borrower
OCC			Office of the Comptroller of the Currency
PLP			Preferred Lenders Program, as authorized by the SBA
PPP			Paycheck Protection Program
RIC			Regulated investment company under the Code
S&P			Standard and Poor's
SBA			United States Small Business Administration
SBLC			Small Business Lending Company
SEC			U.S. Securities and Exchange Commission
SMB			Small-and-medium sized businesses
Stock Purchase Agreement			Stock Purchase Agreement dated August 2, 2021, between the Company, NBNYC and certain NBNYC shareholders to acquire all of the issued and outstanding stock of NBNYC, as amended through December 12, 2022

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
Webster			Webster Bank, N.A.

Subsidiaries and Joint Ventures
NSBF			Newtek Small Business Finance, LLC, a consolidated subsidiary
NBL			Newtek Business Lending, LLC, a wholly-owned subsidiary of Newtek Bank; NBL was merged into SBL on May 2, 2023
NCL			Newtek Commercial Lending, Inc, a consolidated subsidiary
NCL JV			Newtek Conventional Lending, LLC, a 50% owned joint venture
Newtek Bank			Newtek Bank, National Association
TSO JV			Newtek TSO II Conventional Credit Partners, LP, a 50% owned joint venture
Exponential			Exponential Business Development Co., Inc., a taxable subsidiary
NMS			Newtek Merchant Solutions, LLC (formerly Universal Processing Services of Wisconsin LLC), a consolidated subsidiary

Mobil Money			Mobil Money, LLC, a consolidated subsidiary
NTS			Newtek Technology Solutions, Inc., a consolidated subsidiary
IPM			International Professional Marketing, Inc., a former wholly-owned controlled portfolio company which merged into NTS on July 1, 2021
SIDCO			SIDCO, LLC dba Cloud Nine Services, a subsidiary of NTS
EWS			Excel WebSolutions, LLC, a consolidated subsidiary
NBC			CDS Business Services, Inc. dba Newtek Business Credit Solutions, a consolidated subsidiary
SBL			Small Business Lending, LLC, a wholly owned subsidiary of Newtek Bank
NPS or PMT			PMTWorks Payroll, LLC dba Newtek Payroll and Benefits Solutions, a consolidated subsidiary
NIA			Newtek Insurance Agency, LLC, a consolidated subsidiary
TAM			Titanium Asset Management LLC, a consolidated subsidiary
EMCAP			EMCAP Loan Holdings, LLC
POS			POS on Cloud, LLC, dba Newtek Payment Systems, a 59.7% consolidated subsidiary

Explanatory Note:

On January 6, 2023, the Company completed the Acquisition of NBNYC, a national bank regulated and supervised by the OCC. In addition, on January 6, 2023, the Company filed with the SEC a Form N-54C, Notification of Withdrawal of Election to be Subject to the 1940 Act, and has ceased to be a BDC effective as of January 6, 2023. As a result of the foregoing, the Company is now a financial holding company, no longer qualifies as a regulated investment company (RIC) for federal income tax purposes, and no longer qualifies for accounting treatment as an investment company. As a result, comparisons to periods prior to March 30, 2023 include adjustments made to reconcile prior investment company accounting to the current financial holding company accounting requirements. (See NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION)


NEWTEKONE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In Thousands, except for Per Share Data)
	June 30, 2023		December 31, 2022
ASSETS	Financial Holding Company Accounting (Unaudited)		Investment Company Accounting
Cash and due from banks	$	48,673	$	53,692
Restricted cash	66,741		71,914
Interest bearing deposits in banks	140,920		—
Total cash and cash equivalents	256,334		125,606
Debt securities available-for-sale, at fair value	32,907		—
Loans held for sale, at fair value	106,231		19,171
Loans held for sale, at amortized cost	41,641		—
Loans held for investment, at fair value	512,418		505,268
Loans held for investment, at amortized cost, net of deferred fees and costs	218,265		—
Allowance for credit losses	(4,764)		—
Loans held for investment, at amortized cost, net	213,501		—
Federal Home Loan Bank and Federal Reserve Bank stock	3,012		—
Settlement receivable	119,857		—
Joint ventures, at fair value (cost of $25,315 and $23,314), respectively	27,722		23,022
Controlled investments (cost of $0 and $131,495), respectively	—		259,217
Non-control investments (cost of $1,360 and $1,360), respectively	1,360		1,360
Goodwill and intangibles	27,595		—
Right of use assets	7,002		6,484
Derivative instruments	562		—
Deferred tax asset, net	4,622		—
Servicing assets	35,754		30,268
Other assets	48,593		28,506
Total assets	$	1,439,111	$	998,902

LIABILITIES AND NET ASSETS

Liabilities:
Deposits:
Noninterest-bearing	$	38,233	$	—
Interest-bearing	409,124		—
Total deposits	447,357		—
Borrowings	697,387		539,326

Dividends payable	4,766		—
Lease liabilities	8,552		7,973
Deferred tax liabilities, net	—		19,194
Due to participants	19,820		35,627
Accounts payable, accrued expenses and other liabilities	40,501		21,424
Total liabilities	1,218,383		623,544

Shareholders' Equity:
Preferred stock (par value $0.02 per share; authorized 20,000 shares, 20,000 and 20,000 shares issued and outstanding, respectively)	19,738		—
Common stock (par value $0.02 per share; authorized 199,980 shares, 24,615 and 24,609 shares issued and outstanding, respectively)	491		492


Additional paid-in capital	192,114		354,243
Retained earnings	9,075		20,623
Accumulated other comprehensive loss, net of income taxes	(203)		—
Total NewtekOne shareholders’ equity	221,215		375,358
Non-controlling interest	(487)		—
Total shareholders' equity	220,728		375,358
Total liabilities and shareholders' equity	$	1,439,111	$	998,902

See accompanying notes to consolidated financial statements.


NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In Thousands, except for Per Share Data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023 Financial Holding Company Accounting		2022 Investment Company Accounting		2023 Financial Holding Company Accounting		2022 Investment Company Accounting
Interest income
Loans and fees on loans	$	19,607	$	8,032	$	37,109	$	15,111
Debt securities available-for-sale	415		—		647		—
Interest from affiliates	—		670		—		1,334
Other interest earning assets	2,531		—		3,512		—
Total interest income	22,553		8,702		41,268		16,445
Interest expense
Notes and securitizations	9,083		4,809		17,801		8,945
Bank and FHLB borrowings	3,746		939		7,685		1,364
Notes payable related party	—		80		—		186
Deposits	4,051		—		5,526		—
Total interest expense	16,880		5,828		31,012		10,495
Net interest income	5,673		2,874		10,256		5,950
Provision for loan credit losses	2,575		—		3,893		—
Net interest income after provision for loan credit losses	3,098		2,874		6,363		5,950
Noninterest income
Dividend income	505		4,981		1,009		12,827
Loan servicing asset revaluation	(534)		(781)		385		(2,340)
Servicing income	4,299		3,175		8,702		6,356
Net gains on sales of loans	13,208		19,891		19,734		35,186
Net gain on derivative transactions	674		—		179		628
Net gain (loss) on loans accounted for under the fair value option	4,363		(5,789)		10,268		(8,507)
Net unrealized appreciation (depreciation) on joint ventures	698		(12)		2,700		(2,333)
Net unrealized appreciation on controlled investments	—		1,578		—		1,875


Technology and IT support income	6,459		—		13,168		—
Electronic payment processing income	10,676		—		21,004		—
Other noninterest income	6,080		2,368		12,066		3,947
Total noninterest income	46,428		25,411		89,215		47,639
Noninterest expense
Technology services expense	3,466		—		7,269		—
Electronic payment processing expense	4,838		—		9,342		—
Salaries and employee benefits expense	19,418		4,499		38,537		9,608
Professional services expense	3,156		1,512		6,596		2,813
Other loan origination and maintenance expense	3,559		7,121		6,386		13,604
Depreciation and amortization	832		60		1,705		123

Loss on extinguishment of debt	—		417		—		417
Other general and administrative costs	4,911		2,043		9,542		3,796
Total noninterest expense	40,180		15,652		79,377		30,361
Net income before taxes	9,346		12,633		16,201		23,228
Income tax expense (benefit)	2,524		(886)		(2,339)		57
Net income	6,822		13,519		18,540		23,171
Less: Net loss attributable to noncontrolling interests	(31)		—		(31)		—

See accompanying notes to consolidated financial statements.


NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Net income attributable to NewtekOne, Inc.	6,853		13,519		18,571		23,171
Dividends to preferred shareholders	(400)		—		(649)		—
NewtekOne net income available to common shareholders	$	6,453	$	13,519	$	17,922	$	23,171

Earnings per share:
Basic	$	0.26	$	0.56	$	0.72	$	0.96
Diluted	$	0.26	$	0.56	$	0.72	$	0.96

See accompanying notes to consolidated financial statements.


NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(In Thousands, except for Per Share Data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023 Financial Holding Company Accounting		2022 Investment Company Accounting		2023 Financial Holding Company Accounting		2022 Investment Company Accounting

Net income	$	6,822	$	13,519	$	18,540	$	23,171
Other comprehensive loss before tax:
Net unrealized loss on debt securities available-for-sale during the period	(197)		—		(310)		—
Other comprehensive loss before tax	(197)		—		(310)		—
Income tax benefit	76		—		107		—
Other comprehensive loss, net of tax	(121)		—		(203)		—
Total comprehensive income	6,701		13,519		18,337		23,171
Less: Comprehensive loss attributable to noncontrolling interests	(31)		—		(31)		—
Comprehensive income attributable to NewtekOne, Inc.	$	6,732	$	13,519	$	18,368	$	23,171

See accompanying notes to consolidated financial statements.


NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
(In Thousands, except for Per Share Data)

	Common stock			Preferred stock			Addition-al paid-in-capital		Accumul-ated other comprehe-nsive income		Accumul-ated undistrib-uted earnings		Retained earnings		Equity attributabl-e to non-controlling interest		Total equity
	Shares	Amount		Shares	Amount
Balance at March 31, 2023	24,609	$	491	20	$	19,738	$	191,316	$	(82)	$	—	$	7,047	$	(472)	$	218,038

Consolidation of controlled investments adjustment	—	—		—	—		—		—		—		—		16		16
DRIP shares issued	4	—		—	—		73		—		—		—		—		73
Stock-based compensation expense	—	—		—	—		685		—		—		—		—		685
Dividends declared related to RSA	3	—		—	—		59		—		—		(59)		—		—
Purchase of vested stock for employee payroll tax withholding	(2)	—		—	—		(19)		—		—		—		—		(19)





Dividends declared common shares ($0.18/share)	—	—		—	—		—		—		—		(4,366)		—		(4,366)
Dividends declared preferred shares ($12.27/share)	—	—		—	—		—		—		—		(400)		—		(400)
Net income (loss)	—	—		—	—		—		—		—		6,853		(31)		6,822
Other comprehensive loss, net of tax	—	—		—	—		—		(121)		—		—		—		(121)
Balance at June 30, 2023	24,614	$	491	20	$	19,738	$	192,114	$	(203)	$	—	$	9,075	$	(487)	$	220,728

See accompanying notes to consolidated financial statements.


NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
(In Thousands, except for Per Share Data)

	Common stock			Additional paid-in-capital			Accumulated undistributed earnings			Total equity
	Shares	Amount
Balance at March 31, 2022	24,161	$	483		$	368,299		$	29,698		$	398,480
DRIP shares issued	21	—			373			—			373
Stock-based compensation expense	—	—			467			—			467
Dividends Declared related to RSA	5	—			91			(91)			—
Purchase of vested stock for employee payroll tax withholding	(12)	—			(299)			—			(299)
Restricted stock awards	12	—			—			—			—
Dividends declared common shares ($0.75/share)	—	—			—			(18,008)			(18,008)
Net increase resulting from operations:	—	—			—			—			—
Net investment loss	—	—			—			(2,254)			(2,254)
Net realized gain on investments	—	—			—			19,891			19,891
Net unrealized depreciation on investments	—	—			—			(4,118)			(4,118)
Balance at June 30, 2022	24,187	$	483		$	368,931		$	25,118		$	394,532

See accompanying notes to consolidated financial statements.


NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
(In Thousands, except for Per Share Data)

	Common stock			Preferred stock			Addition-al paid-in-capital		Accumul-ated other comprehe-nsive income		Accumul-ated undistrib-uted earnings		Retained earnings		Non-controlling Interest		Total equity
	Shares	Amount		Shares	Amount
Balance at December 31, 2022	24,609	$	492	—	$	—	$	354,242	$	—	$	20,624	$	—	$	—	$	375,358
Conversion from BDC to Bank Holding Company Adjustments:																	—
Change in presentation	—	—		—	—		20,624		—		(20,624)		—		—		—
Removal of fair value adjustments	—	—		—	—		(138,044)		—		—		—		—		(138,044)
Consolidation of controlled investments	—	—		—	245		(65,215)		—		—		—		(456)		(65,426)
Reassessment of deferred tax assets and liabilities	—	—		—	—		19,266		—		—		—		—		19,266
DRIP shares issued	10	—		—	—		146		—		—		—		—		146
Stock-based compensation expense	—	—		—	—		1,423		—		—		—		—		1,423
Dividends declared related to RSA	8	—		—	—		119		—		—		(119)		—		—
Purchase of vested stock for employee payroll tax withholding	(13)	(1)		—	—		(447)		—		—		—		—		(448)
Restricted stock awards	—	—		—	—		—		—		—		—		—		—
Issuance of Preferred stock	—	—		20	20,000		—		—		—		—		—		20,000
Allocation of preferred stock proceeds to warrants	—	—		—	—		—		—		—		—		—		—
Preferred stock issuance costs	—	—		—	(507)		—		—		—		—		—		(507)
Allocation of issuance costs to warrants	—	—		—	—		—		—		—		—		—		—
Dividends declared common shares ($0.18/share)	—	—		—	—		—		—		—		(8,728)		—		(8,728)
Dividends declared preferred shares ($12.27/share)	—	—		—	—		—		—		—		(649)		—		(649)
Net income (loss)	—	—		—	—		—		—		—		18,571		(31)		18,540
Other comprehensive loss, net of tax	—	—		—	—		—		(203)		—		—		—		(203)
Balance at June 30, 2023	24,614	$	491	20	$	19,738	$	192,114	$	(203)	$	—	$	9,075	$	(487)	$	220,728

See accompanying notes to consolidated financial statements.


NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)
(In Thousands, except for Per Share Data)

	Common stock			Additional paid-in-capital			Accumulated undistributed earnings			Total equity
	Shares	Amount
Balance at December 31, 2021	24,159	$	483		$	367,663		$	35,741		$	403,887
DRIP shares issued	30	—			598			—			598
Stock-based compensation expense	—	—			1,248			—			1,248
Dividends Declared related to RSA	9	—			201			(201)			—
Purchase of vested stock for employee payroll tax withholding	(30)	—			(779)			—			(779)
Restricted stock awards	19	—			—			—			—
Dividends declared common shares	—	—			—			(33,593)			(33,593)
Net increase resulting from operations:	—	—			—			—			—
Net investment loss	—	—			—			(1,281)			(1,281)
Net realized gain on investments	—	—			—			35,631			35,631
Net unrealized depreciation on investments	—	—			—			(11,179)			(11,179)
Balance at June 30, 2022	24,187	$	483		$	368,931		$	25,118		$	394,532

See accompanying notes to consolidated financial statements.


NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
	Six Months Ended June 30,
	2023		2022
Cash flows from operating activities:	Financial Holding Company Accounting		Investment Company Accounting
Net income	$	18,571	$	23,171
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Net unrealized (appreciation) depreciation on joint ventures	(2,700)		2,333
Net unrealized appreciation on controlled investments	—		(1,875)
Net (gain) loss on loans accounted for under the fair value option	(10,268)		8,507
Net unrealized (appreciation) depreciation on servicing assets	(385)		2,340
Net unrealized appreciation on derivative transactions	(179)		(183)
Net gains on loans held for sale	(19,734)		(29,035)
Loss on extinguishment of debt	—		417
Amortization of deferred financing costs	1,927		1,250
Allowance for credit losses on loans	3,893		—
Stock compensation expense	1,436		1,248
Deferred income taxes	(2,339)		60
Depreciation and amortization	1,705		123
Proceeds from sale of loans held for sale	157,177		345,510
Purchase of loans from affiliate	(6,467)		—

Funding of loans held for sale	(199,744)		(363,904)
Funding of controlled investments	—		(19,750)




Principal received on loans held for sale	6,159		47,459
Principal received from controlled investments	—		2,026

Return of investment from controlled investments	—		9,741
Contributions to joint ventures	(2,000)		—
Other, net	(310)		275
Changes in operating assets and liabilities:

Settlement receivable	(119,857)		(34,184)
Capitalized servicing asset	(5,101)		(6,152)
Due to/from related parties	185		2,919
Other assets	4,976		1,767
Dividends payable	4,766		—
Due to participants	(15,807)		(63,175)
Accounts payable, accrued expenses and other liabilities	(22,504)		3,923
Other, net	1,748		8
Net cash used in operating activities	(204,852)		(65,181)
Cash flows from investing activities:
Net increase in loans held for investment, at fair value	(44,815)		—
Net increase in loans held for investment, at cost	(9,462)		—
Purchase of fixed assets	(129)		(11)
Net increase in Federal Home Loan Bank stock	(1,489)		—
Purchases of available-for-sale securities	(27,903)		—
Acquisitions, net of cash acquired	11,252		—
Net cash used in investing activities	(72,546)		(11)

See accompanying notes to consolidated financial statements.


NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
	Six Months Ended June 30,
	2023	2022
Cash flows from financing activities:
Net (paydowns) borrowings on bank notes payable	(38,219)	77,414
Net increase in deposits	310,342	—
Repayment of Federal Home Loan Bank advances	(3,887)	—

Proceeds from preferred stock, net of offering costs	19,493	—
Net repayments under rela

NewtekOne, Inc. [NEWTL] Filings
NewtekOne, Inc. [NEWT] Filings
NewtekOne, Inc. [NEWTI] Filings
NewtekOne, Inc. [NEWTZ] Filings
10-Q	[2023-08-07]
10-Q	[2023-05-11]
10-K	[2023-03-16]
10-Q	[2022-11-08]
10-Q	[2022-08-08]
10-Q	[2022-05-09]
10-K	[2022-03-01]
10-Q	[2021-11-12]
10-Q	[2021-08-13]
10-Q	[2021-05-13]
10-K	[2021-03-29]
10-Q	[2020-11-12]
10-Q	[2020-08-10]
10-Q	[2020-05-11]
10-K	[2020-03-16]
10-Q	[2019-11-12]
10-Q	[2019-08-09]
10-Q	[2019-05-03]
10-K	[2019-03-18]
10-Q	[2018-11-09]
10-Q	[2018-08-08]
10-Q	[2018-05-09]
10-K	[2018-03-16]
10-Q	[2017-11-07]
10-Q	[2017-08-07]
10-Q	[2017-05-08]
10-K	[2017-03-13]
10-Q	[2016-11-07]
10-Q	[2016-08-09]
10-Q	[2016-05-10]
10-K	[2016-03-15]
10-Q	[2015-11-05]
10-Q	[2015-08-04]
10-Q	[2015-05-13]
10-K	[2015-03-31]
10-Q	[2014-11-14]

NewtekOne, Inc. [NEWTL] Filings

NewtekOne, Inc. [NEWT] Filings

NewtekOne, Inc. [NEWTI] Filings

NewtekOne, Inc. [NEWTZ] Filings