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NewtekOne Inc. (NEWT-7.15%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details NewtekOne's operations as a financial holding company, following its conversion from a business development company (BDC) on January 6, 2023. The company now operates Newtek Bank, a national bank that provides a range of business and financial solutions to small and medium-sized businesses (SMBs).
For the fiscal year 2024, NewtekOne reported net income of $50.9 million, or $1.97 per basic share, compared to $47.3 million, or $1.89 per basic share, in the previous year. The increase in net income was driven by higher noninterest income, particularly gains on sales of loans.
Total assets as of December 31, 2024, were $2.1 billion, a 44.1% increase from the previous year. This increase was primarily due to higher balances of loans held for sale and loans held for investment.
The company's total liabilities increased by 49.4% to $1.8 billion, driven by a significant rise in deposits, which totaled $973.1 million at year-end 2024.
Net interest income after provision for credit losses was $14.1 million for 2024, a slight decrease from $14.9 million in 2023. The provision for credit losses increased to $26.2 million, reflecting higher net charge-offs and specific reserves on impaired loans.
The company's noninterest income rose by 22.9% to $217.3 million, mainly due to increased net gains on sales of loans, which amounted to $97.2 million for the year.
Noninterest expenses for 2024 were $162.7 million, up from $146.3 million in 2023, primarily due to higher salaries and employee benefits expenses, which increased by 18.6% due to headcount growth and increased benefits costs.
NewtekOne's liquidity position includes $6.9 million in unrestricted cash and $346.2 million in interest-bearing deposits at banks. The company also maintains several lines of credit and has access to additional liquidity through its bank subsidiary.
The filing details NewtekOne's regulatory capital ratios, which indicate that both the company and Newtek Bank are well-capitalized under applicable regulatory requirements.
NewtekOne continues to focus on its Alternative Lending Program (ALP), originating loans with the intent to securitize them. The company has also engaged in joint ventures to support its ALP loan origination activities.
The filing includes a discussion of risk factors, highlighting the company's exposure to economic conditions, regulatory changes, and competition in the financial services industry.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the NewtekOne Inc. annual 10-K report dated March 17, 2025. To report an error, please email earnings@qz.com.