0001587987-25-000050 | 10-K | XBRL Viewer

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INVESTMENTS - Investment Portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Joint Ventures and Other Non-Control Investments
Debt Securities, Available-for-Sale [Line Items]
Cost	$ 44,039	$ 38,660
Fair Value	57,678	41,587
Debt securities available-for-sale, at fair value
Debt Securities, Available-for-Sale [Line Items]
Cost	23,934	32,372
Fair Value	23,916	32,171
Federal Home Loan Bank and Federal Reserve Bank stock
Debt Securities, Available-for-Sale [Line Items]
Cost	3,585	3,635
Fair Value	3,585	3,635
Total investments
Debt Securities, Available-for-Sale [Line Items]
Cost	71,558	74,667
Fair Value	$ 85,179	$ 77,393

- Definition

Cost of the investment.

+ References

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+ Details

- Definition

Fair value of investment in security owned.

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+ Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

INVESTMENTS - Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	$ 23,934	$ 32,372
Unrealized Gains	11	0
Unrealized Losses	29	201
Fair Value	23,916	32,171
Total pledged	23,916	30,730
U.S. Treasury notes
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	23,934	29,372
Unrealized Gains	11	0
Unrealized Losses	29	67
Fair Value	23,916	29,305
Government agency debentures
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	0	3,000
Unrealized Gains	0	0
Unrealized Losses	0	134
Fair Value		2,866
Pledged for deposits
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Total pledged	0	0
Pledged for borrowings and other
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Total pledged	$ 23,916	$ 30,730

BENEFIT PLANS - ESPP Information (Details) - Employee Stock Purchase Plan - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	2 Months Ended		5 Months Ended	6 Months Ended	12 Months Ended
	Dec. 15, 2024	Dec. 15, 2023	Mar. 15, 2024	Sep. 15, 2024	Dec. 31, 2024	Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares purchased (in shares)	5	4	5	10	20	4
Weighted average share price (in dollars per share)	$ 11.03	$ 13.05	$ 9.83	$ 10.21	$ 10.32	$ 13.05
Total purchased, net of discount	$ 55	$ 51	$ 51	$ 101	$ 207	$ 51

SHAREHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2024

Equity [Abstract]

Schedule of shares sold

The following table summarizes the total shares sold and net proceeds received under the 2023 ATM Equity Distribution Agreement:


	Year Ended December 31, 2024		Year Ended December 31, 2023		Year Ended December 31, 2022
Shares sold	1,100		—		—
Net weighted average price per share	$	12.56	$	—	$	—
Net proceeds	$	13,818	$	—	$	—
Placement agent fees paid	$	282	$	—	$	—

The following table summarizes the total shares sold and net proceeds received under the 2020 ATM Equity Distribution Agreement:


	Year Ended December 31, 2024		Year Ended December 31, 2023		Year Ended December 31, 2022
Shares sold	—		—		107
Net weighted average price per share	$	—	$	—	$	19.12
Net proceeds	$	—	$	—	$	2,054

Schedule of share repurchase program

The following table summarizes the total shares repurchased and net proceeds received under the stock repurchase program:


	Year Ended December 31, 2024		Year Ended December 31, 2023		Year Ended December 31, 2022
Shares repurchased	30		—		—
Net weighted average price per share	$	13.35	$	—	$	—
Net proceeds	$	402	$	—	$	—

Distribution of assets, liabilities and stockholders' equity

The following table summarizes dividend declarations and distributions on the Series A Preferred Stock during the years ended December 31, 2024 and 2023:


Date Declared	Record Date	Payment Date	Amount Per Share		Cash Distribution
Year ended December 31, 2024
March 18, 2024	March 28, 2024	April 1, 2024	$	20.00	$	400
June 26, 2024	June 28, 2024	July 1, 2024	$	20.00	$	400
September 16, 2024	September 30, 2024	October 1, 2024	$	20.00	$	400
December 31, 2024	January 1, 2025	January 2, 2025	$	20.00	$	400

Year ended December 31, 2023
April 13, 2023	March 20, 2023	April 14, 2023	$	12.44	$	249
June 27, 2023	June 27, 2023	July 1, 2023	$	20.00	$	400
September 27, 2023	September 27, 2023	October 2, 2023	$	20.00	$	400
December 25, 2023	December 27, 2023	January 2, 2024	$	20.00	$	400

The following table summarizes the Company’s dividend declarations and distributions, including DRIP shares and dividend shares issued on vested restricted stock awards, during the years ended December 31, 2024 and 2023:


	Record Date	Payment Date	Amount Per Share		Cash Distribution		DRIP Shares Issued			Dividend Shares Issued on Unvested RSAs
Date Declared							#	$		#	$
Year ended December 31, 2024
March 19, 2024	April 1, 2024	April 15, 2024	$	0.19	$	4,617	—	$	—	6	$	71
June 27, 2024	July 9, 2024	July 19, 2024	$	0.19	$	4,827	—	$	—	5	$	78
September 16, 2024	October 10, 2024	October 21, 2024	$	0.19	$	4,837	—	$	—	8	$	114
December 13, 2024	December 31, 2024	January 13, 2025	$	0.19	$	4,833	—	$	—	13	$	155

Year ended December 31, 2023
February 27, 2023	April 4, 2023	April 14, 2023	$	0.18	$	4,291	6	$	72	5	$	60
June 27, 2023	July 10, 2023	July 21, 2023	$	0.18	$	4,293	4	$	73	3	$	60
September 27, 2023	October 10, 2023	October 20, 2023	$	0.18	$	4,293	6	$	71	5	$	63
December 11, 2023	December 29, 2023	January 12, 2024	$	0.18	$	4,371	—	$	—	6	$	79

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Interest income
Debt securities available-for-sale	$ 1,482	$ 1,518	$ 0
Loans and fees on loans	110,892	84,001	35,696
Interest from affiliates	0	0	2,921
Other interest earning assets	9,044	8,854	0
Total interest income	121,418	94,373	38,617
Interest expense
Deposits	28,690	15,849	0
Total interest expense	81,113	67,739	26,325
Net interest income	40,305	26,634	12,292
Provision for credit losses	26,216	11,704	0
Net interest income after provision for credit losses	14,089	14,930	12,292
Noninterest income
Dividend income	1,519	1,757	24,657
Net loss on loan servicing assets	(12,665)	(4,282)	(10,095)
Servicing income	20,087	18,289	13,698
Net gains on sales of loans	97,183	51,467	56,901
Net gain (loss) on loans under the fair value option	5,200	18,008	(26,504)
Technology and IT support income	19,643	24,916	0
Electronic payment processing income	46,049	42,855	0
Other noninterest income	40,296	23,762	34,221
Total noninterest income	217,312	176,772	92,878
Noninterest expense
Salaries and employee benefits expense	77,931	65,708	20,186
Technology services expense	12,261	14,272	0
Electronic payment processing expense	19,878	18,327	0
Professional services expense	15,813	13,077	7,134
Other loan origination and maintenance expense	13,770	9,433	30,746
Depreciation and amortization	1,784	2,884	239
Loss on extinguishment of debt	0	271	417
Other general and administrative costs	21,272	22,357	7,673
Total noninterest expense	162,709	146,329	66,395
Net income before taxes	68,692	45,373	38,775
Income tax expense (benefit)	17,839	(1,956)	6,464
Net income	50,853	47,329	32,311
Dividends to preferred shareholders	(1,600)	(1,454)	0
Net income available to common shareholders	$ 49,253	$ 45,875	$ 32,311
Earnings per common share:
Basic (in dollars per share)	$ 1.97	$ 1.89	$ 1.34
Diluted (in dollars per share)	$ 1.96	$ 1.88	$ 1.34
Related Party
Interest expense
Notes payable related parties	$ 0	$ 0	$ 547
Notes and securitizations
Interest expense
Interest expense	45,454	40,217	21,780
Bank and FHLB borrowings
Interest expense
Interest expense	$ 6,969	$ 11,673	$ 3,998

SEGMENTS (Details) $ in Thousands	12 Months Ended
SEGMENTS (Details) $ in Thousands	Dec. 31, 2024 USD ($) segment	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment	5
Goodwill allocation percentage	100.00%
Interest income	$ 121,418	$ 94,373	$ 38,617
Interest expense	81,113	67,739	26,325
Net interest income	40,305	26,634	12,292
Provision for credit losses	26,216	11,704	0
Net interest income after provision for credit losses	14,089	14,930	12,292
Noninterest income	217,312	176,772	92,878
Technology services expense	12,261	14,272	0
Electronic payment processing expense	19,878	18,327	0
Salaries and employee benefits expense	77,931	65,708	20,186
Professional services expense	15,813	13,077	7,134
Other loan origination and maintenance expense	13,770	9,433	30,746
Loss on extinguishment of debt	0	271	417
Depreciation and amortization	1,784	2,884	239
Other general and administrative costs	21,272	22,357	7,673
Net income before taxes	68,692	45,373	38,775
Income tax expense (benefit)	17,839	(1,956)	6,464
Net income	50,853	47,329	32,311
Assets	2,059,912	1,429,513
Goodwill and intangibles	14,752	30,120
Amortization expense	$ 539	1,468	$ 0
Minimum
Segment Reporting Information [Line Items]
Equity capital allocation percentage	0.00%
Maximum
Segment Reporting Information [Line Items]
Equity capital allocation percentage	25.00%
Operating Segments \| Banking
Segment Reporting Information [Line Items]
Interest income	$ 69,576	34,349
Interest expense	29,855	16,625
Net interest income	39,721	17,724
Provision for credit losses	26,216	11,704
Net interest income after provision for credit losses	13,505	6,020
Noninterest income	136,080	92,129
Technology services expense	0	0
Electronic payment processing expense	0	0
Salaries and employee benefits expense	45,346	35,385
Professional services expense	3,941	2,903
Other loan origination and maintenance expense	20,385	9,373
Loss on extinguishment of debt		0
Depreciation and amortization	182	208
Other general and administrative costs	12,426	10,506
Net income before taxes	67,305	39,774
Income tax expense (benefit)	15,308	11,647
Net income	51,997	28,127
Assets	1,238,899	683,202
Goodwill and intangibles	938	1,114
Amortization expense	176	197
Operating Segments \| Alternative Lending
Segment Reporting Information [Line Items]
Interest income	15,073	8,198
Interest expense	3,539	4,035
Net interest income	11,534	4,163
Provision for credit losses	0	0
Net interest income after provision for credit losses	11,534	4,163
Noninterest income	55,824	12,278
Technology services expense	0	0
Electronic payment processing expense	0	0
Salaries and employee benefits expense	1,202	0
Professional services expense	165	294
Other loan origination and maintenance expense	6,095	2,222
Loss on extinguishment of debt		0
Depreciation and amortization	0	0
Other general and administrative costs	172	117
Net income before taxes	59,724	13,808
Income tax expense (benefit)	0	(150)
Net income	59,724	13,958
Assets	439,101	196,062
Goodwill and intangibles	0	0
Amortization expense	0	0
Operating Segments \| Technology
Segment Reporting Information [Line Items]
Interest income	6	0
Interest expense	0	246
Net interest income	6	(246)
Provision for credit losses	0	0
Net interest income after provision for credit losses	6	(246)
Noninterest income	27,020	31,692
Technology services expense	12,575	14,794
Electronic payment processing expense	0	0
Salaries and employee benefits expense	8,690	8,989
Professional services expense	678	468
Other loan origination and maintenance expense	38	11
Loss on extinguishment of debt		0
Depreciation and amortization	1,062	1,498
Other general and administrative costs	3,794	4,090
Net income before taxes	189	1,596
Income tax expense (benefit)	103	229
Net income	86	1,367
Assets	23,317	23,403
Goodwill and intangibles	0	15,179
Amortization expense	350	466
Operating Segments \| NSBF
Segment Reporting Information [Line Items]
Interest income	36,655	50,823
Interest expense	21,097	26,796
Net interest income	15,558	24,027
Provision for credit losses	0	0
Net interest income after provision for credit losses	15,558	24,027
Noninterest income	(23,410)	25,142
Technology services expense	0	0
Electronic payment processing expense	0	0
Salaries and employee benefits expense	219	973
Professional services expense	2,482	1,508
Other loan origination and maintenance expense	16,069	24,327
Loss on extinguishment of debt		271
Depreciation and amortization	114	123
Other general and administrative costs	1,948	4,906
Net income before taxes	(28,684)	17,061
Income tax expense (benefit)	0	0
Net income	(28,684)	17,061
Assets	479,896	633,206
Goodwill and intangibles	0	0
Amortization expense	0	0
Operating Segments \| Payments
Segment Reporting Information [Line Items]
Interest income	2,362	2,087
Interest expense	2,984	3,577
Net interest income	(622)	(1,490)
Provision for credit losses	0	0
Net interest income after provision for credit losses	(622)	(1,490)
Noninterest income	48,852	46,422
Technology services expense	0	0
Electronic payment processing expense	21,046	19,680
Salaries and employee benefits expense	7,188	7,152
Professional services expense	684	660
Other loan origination and maintenance expense	0	0
Loss on extinguishment of debt		0
Depreciation and amortization	356	1,021
Other general and administrative costs	2,757	3,087
Net income before taxes	16,199	13,332
Income tax expense (benefit)	0	1,178
Net income	16,199	12,154
Assets	60,347	51,819
Goodwill and intangibles	13,814	13,827
Amortization expense	13	805
Elim
Segment Reporting Information [Line Items]
Interest income	(1,867)	(2,380)
Interest expense	(3,898)	(4,034)
Net interest income	(2,233)	1,654
Provision for credit losses	0	0
Net interest income after provision for credit losses	(2,233)	1,654
Noninterest income	(55,061)	(75,028)
Technology services expense	0	0
Electronic payment processing expense	0	0
Salaries and employee benefits expense	3,041	0
Professional services expense	0	0
Other loan origination and maintenance expense	(95)	(71)
Loss on extinguishment of debt		0
Depreciation and amortization	0	0
Other general and administrative costs	(2,916)	(1,785)
Net income before taxes	(57,324)	(71,518)
Income tax expense (benefit)	15,411	0
Net income	(72,735)	(71,518)
Assets	(605,643)	(481,443)
Elim \| Banking
Segment Reporting Information [Line Items]
Interest income	(2)	0
Interest expense	(643)	(99)
Net interest income	641	99
Provision for credit losses	0	0
Net interest income after provision for credit losses	641	99
Noninterest income	(28,068)	(26,091)
Technology services expense	0	0
Electronic payment processing expense	0	0
Salaries and employee benefits expense	(2,531)	0
Professional services expense	0	0
Other loan origination and maintenance expense	(14,060)	(7,133)
Loss on extinguishment of debt		0
Depreciation and amortization	0	0
Other general and administrative costs	(2,548)	(2,266)
Net income before taxes	(8,288)	(16,593)
Income tax expense (benefit)	(15,308)	0
Net income	7,020	(16,593)
Assets	(29,932)	(29,136)
Elim \| Alternative Lending
Segment Reporting Information [Line Items]
Interest income	(12)	(3)
Interest expense	0	0
Net interest income	(12)	(3)
Provision for credit losses	0	0
Net interest income after provision for credit losses	(12)	(3)
Noninterest income	0	0
Technology services expense	0	0
Electronic payment processing expense	0	0
Salaries and employee benefits expense	(1,202)	0
Professional services expense	0	0
Other loan origination and maintenance expense	(4,044)	(1,469)
Loss on extinguishment of debt		0
Depreciation and amortization	0	0
Other general and administrative costs	0	0
Net income before taxes	5,234	1,466
Income tax expense (benefit)	0	0
Net income	5,234	1,466
Assets	(97,352)	(51,820)
Elim \| Technology
Segment Reporting Information [Line Items]
Interest income	(6)	0
Interest expense	0	(246)
Net interest income	(6)	246
Provision for credit losses	0	0
Net interest income after provision for credit losses	(6)	246
Noninterest income	(7,139)	(6,660)
Technology services expense	(314)	(522)
Electronic payment processing expense	0	0
Salaries and employee benefits expense	0	0
Professional services expense	0	0
Other loan origination and maintenance expense	0	0
Loss on extinguishment of debt		0
Depreciation and amortization	0	0
Other general and administrative costs	(271)	(236)
Net income before taxes	(6,560)	(5,656)
Income tax expense (benefit)	(103)	0
Net income	(6,457)	(5,656)
Assets	(1,393)	(884)
Elim \| NSBF
Segment Reporting Information [Line Items]
Interest income	(421)	(75)
Interest expense	0	0
Net interest income	(421)	(75)
Provision for credit losses	0	0
Net interest income after provision for credit losses	(421)	(75)
Noninterest income	0	0
Technology services expense	0	0
Electronic payment processing expense	0	0
Salaries and employee benefits expense	682	0
Professional services expense	0	0
Other loan origination and maintenance expense	(11,020)	(18,100)
Loss on extinguishment of debt		0
Depreciation and amortization	0	0
Other general and administrative costs	(11)	(24)
Net income before taxes	9,928	18,049
Income tax expense (benefit)	0	0
Net income	9,928	18,049
Assets	(55,488)	(97,683)
Elim \| Payments
Segment Reporting Information [Line Items]
Interest income	(2,310)	(2,053)
Interest expense	(77)	(132)
Net interest income	(2,233)	(1,921)
Provision for credit losses	0	0
Net interest income after provision for credit losses	(2,233)	(1,921)
Noninterest income	(2,028)	(2,893)
Technology services expense	0	0
Electronic payment processing expense	(1,168)	(1,353)
Salaries and employee benefits expense	11	0
Professional services expense	0	0
Other loan origination and maintenance expense	0	0
Loss on extinguishment of debt		0
Depreciation and amortization	0	0
Other general and administrative costs	(1,769)	(1,910)
Net income before taxes	(1,335)	(1,551)
Income tax expense (benefit)	0	0
Net income	(1,335)	(1,551)
Assets	(36,707)	(27,154)
Corporate & Other
Segment Reporting Information [Line Items]
Interest income	2,364	3,427
Interest expense	28,256	20,971
Net interest income	(25,892)	(17,544)
Provision for credit losses	0	0
Net interest income after provision for credit losses	(25,892)	(17,544)
Noninterest income	65,242	79,781
Technology services expense	0	0
Electronic payment processing expense	0	0
Salaries and employee benefits expense	15,285	13,209
Professional services expense	7,863	7,244
Other loan origination and maintenance expense	402	273
Loss on extinguishment of debt		0
Depreciation and amortization	70	34
Other general and administrative costs	7,690	5,872
Net income before taxes	8,040	35,605
Income tax expense (benefit)	2,428	(14,860)
Net income	5,612	50,465
Assets	644,867	529,941
Goodwill and intangibles	0	0
Amortization expense	$ 0	$ 0

BORROWINGS

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

BORROWINGS

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


	December 31, 2024				December 31, 2023
	Closing Price		Fair Value		Closing Price		Fair Value
Public Parent Company Notes1:
2024 Notes (5.75%)	$	—	$	—	$	24.99	$	38,235
2026 Notes (5.50%)	25.21		115,966		23.75		109,250
2028 Notes (8.00%)	25.28		40,448		25.04		40,070
2029 Notes (8.50%)	25.32		72,795		—		—
2029 Notes (8.625%)	25.78		77,340		—		—
Subtotal (Level 2)			$	306,549			$	187,555

Private Parent Company Notes2			$	80,926			$	79,179
Securitizations3			186,635				292,112
FHLB Borrowings3			15,330				23,184
Bank Borrowings3			130,927				59,764
Subtotal (Level 3)			$	413,818			$	454,239

Total Borrowings			$	720,367			$	641,794

1 Fair values are based on the closing public share price on the date of measurement.

2 Not recorded at fair value on a recurring basis. The fixed rate private Notes are held at par as of December 31, 2024 and December 31, 2023. Fair value calculations are performed based on implied treasury rates as of year end.

3 Fair value is calculated as the Borrowings Outstanding. Refer to NOTE 13—BORROWINGS.

NOTE 13—BORROWINGS:

At December 31, 2024 and December 31, 2023, the Company had borrowings composed of the following:


	December 31, 2024						December 31, 2023
	Commitments		Borrowings Outstanding		Weighted Avg Interest Rate		Commitments		Borrowings Outstanding		Weighted Avg Interest Rate
Bank Borrowings1:
NMS Webster Note	$	54,871	$	32,688	7.30	%	$	54,871	$	36,628	7.94	%
SPV I Capital One Facility	60,000		21,192		7.22	%	60,000		16,080		8.20	%
SPV II Deutsche Bank Facility	120,000		54,036		7.57	%	50,000		6,799		10.04	%
SPV III One Florida Bank Facility	30,000		23,011		8.50	%	30,000		257		9.50	%
FHLB Advances2	20,000		15,330		2.19	%	113,891		23,184		2.13	%
Parent Company Notes1:
2024 Notes3	—		—		—	%	38,250		38,124		5.75	%
2025 Notes	30,000		29,913		5.00	%	30,000		29,563		5.00	%
2025 Notes4	—		—		—	%	50,000		49,433		8.125	%
2026 Notes	115,000		114,282		5.50	%	115,000		113,564		5.50	%
2027 Notes4	50,000		49,944		8.125	%	—		—		—	%
2028 Notes	40,000		38,726		8.00	%	40,000		38,378		8.00	%
2029 Notes	71,875		69,622		8.50	%	—		—		—	%
2029 Notes	75,000		72,662		8.625	%	—		—		—	%
Notes payable - Securitization Trusts5	189,231		186,635		7.32	%	296,223		292,112		7.84	%
Total borrowings	$	855,977	$	708,041	7.22	%	$	878,235	$	644,122	7.04	%

1 Net of deferred financing costs.

2 At December 31, 2024 and December 31, 2023, the carrying amount of Newtek Bank’s FHLB borrowings includes a $0.04 million and $0.2 million purchase accounting adjustment, respectively.

3 On August 1, 2024, the 2024 Notes matured.

4 Effective December 11, 2024, the Company extended the maturity date of the 8.125% Senior Notes due 2025 from February 1, 2025 to the new maturity date of February 1, 2027. The notes are 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.

5 At December 31, 2024 and December 31, 2023, the net assets of the consolidated Trusts totaled $8.9 million and $14.8 million, respectively.

Outstanding borrowings that are presented net of deferred financing costs, which include the bank borrowings, the Parent Company Notes, and the Notes payable - Securitization Trusts, consisted of the following:


	December 31, 2024						December 31, 2023
	Principal balance		Unamortized deferred financing costs		Net carrying amount1		Principal balance		Unamortized deferred financing costs		Net carrying amount1
Bank Borrowings:
NMS Webster Note	$	32,894	$	(206)	$	32,688	$	36,881	$	(253)	$	36,628
SPV I Capital One Facility	21,300		(108)		21,192		16,300		(220)		16,080
SPV II Deutsche Bank Facility	54,800		(764)		54,036		6,900		(101)		6,799
SPV III One Florida Bank Facility	23,075		(64)		23,011		375		(118)		257
Parent Company Notes:
2024 Notes (5.75%)	—		—		—		38,250		(126)		38,124
2025 Notes (5.00%)	30,000		(87)		29,913		30,000		(437)		29,563
2025 Notes (8.125%)2	—		—		—		50,000		(567)		49,433
2026 Notes (5.50%)	115,000		(718)		114,282		115,000		(1,436)		113,564
2027 Notes (8.125%)2	50,000		(56)		49,944		—		—		—
2028 Notes (8.00%)	40,000		(1,274)		38,726		40,000		(1,622)		38,378
2029 Notes (8.50%)	71,875		(2,253)		69,622		—		—		—
2029 Notes (8.625%)	75,000		(2,338)		72,662		—		—		—
Notes Payable - Securitization Trusts	189,231		(2,596)		186,635		296,223		(4,111)		292,112

1 Net of deferred financing costs.

2 Effective December 11, 2024, the Company extended the maturity date of the 8.125% Senior Notes due 2025 from February 1, 2025 to the new maturity date of February 1, 2027. The notes are 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.

Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the years ended December 31, 2024, 2023 and 2022 were as follows:


	Year Ended December 31,
		2024		2023		2022
Total interest expense		$	52,423	$	51,890	$26,325

2029 Notes

On May 30, 2024, the Company completed a registered offering of $71.9 million in aggregate principal amount of its 8.50% 2029 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 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 December 31, 2024, the Company was in compliance with all covenants related to the 2029 8.50% Notes.

On September 16, 2024, the Company completed a public offering of $75.0 million aggregate principal amount of 8.625% notes due 2029. The Notes will mature on October 15, 2029. The Company received $72.8 million in proceeds, before expenses, from the sale of the 2029 Notes. The 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 December 31, 2024, 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, which includes the underwriters’ exercise of the option granted by the Company to purchase an additional $5.0 million in aggregate principal amount of the 2028 Notes. The Company received $38.0 million in proceeds, before expenses, from the sale of the 2028 Notes. The Company intends to use the net proceeds from the sale of the Notes for general corporate purposes. 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 December 31, 2024, the Company was in compliance with all covenants related to the 2028 Notes.

For the years ended December 31, 2024 and 2023, interest expense including amortization of related deferred financing costs was $3.5 million and $1.2 million, respectively. No interest expense was incurred during the year ended December 31, 2022.

2026 Notes

In January 2021, the Company closed a public offering of $115.0 million aggregate principal amount of 5.50% Notes due 2026, including $15.0 million in aggregate principal amount sold pursuant to a fully-exercised overallotment option. The sale of the 2026 Notes generated proceeds of approximately $111.3 million, net of underwriter's fees and expenses. The 2026 Notes will 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 on or after February 1, 2022. 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.”

For the years ended December 31, 2024, 2023 and 2022, interest expense including amortization of related deferred financing costs was $7.0 million, $7.0 million and $7.0 million, respectively.

2025 Notes

On November 27, 2020, the Company closed an exempt offering of $5.0 million in aggregate principal amount of its 2025 6.85% Notes. The offering was consummated pursuant to the terms of a purchase agreement dated November 27, 2020 among the Company and an accredited investor. The purchase agreement provided for the 2025 6.85% Notes 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 2025 6.85% Notes were scheduled to mature on November 30, 2025 and could be redeemed in whole or in part at any time. The 2025 6.85% Notes bear interest at a rate of 6.85% per year payable quarterly on February 28, May 31, August 31 and November 30, of each year, beginning February 28, 2021. Total net proceeds received after deducting structuring fees and estimated offering expenses was $4.8 million. The Company exercised its option to issue up to $10.0 million of additional 2025 6.85% Notes to the purchaser, and issued $10.0 million in additional 2025 6.85% Notes to the purchaser in an exempt offering in January 2021.

On March 31, 2022, the Company caused notices to be issued to the holder of its 2025 6.85% Notes regarding the Company’s exercise of its option to redeem all $15.0 million in aggregate principal amount of the Notes on May 2, 2022. The Notes were redeemed on May 2, 2022 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from February 28, 2022 through, but excluding, May 2, 2022.

No interest expense was incurred during the years ended December 31, 2024 and 2023. For the year ended December 31, 2022, interest expense including amortization of related deferred financing costs was $0.4 million.

On January 23, 2023 we 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.

2024 Notes

On July 25, 2019, the Company closed a public offering of $55.0 million in aggregate principal amount of its 2024 Notes. The 2024 Notes will mature on August 1, 2024 and may be redeemed in whole or in part at any time or from time to time at Newtek’s option on or after August 1, 2021. The 2024 Notes bear interest at a rate of 5.75% per year payable quarterly on August 1, November 1, February 1 and May 1, of each year, beginning November 1, 2019. Total net proceeds received after deducting underwriters’ discount and expenses was $53.3 million. The 2024 Notes are listed on the Nasdaq Global Market under the trading symbol “NEWTL” and were rated “A-“ by Egan-Jones. In August 2019, the underwriters exercised their option to purchase an additional $8.25 million in aggregate principal amount of the 2024 Notes resulting in an additional $8.0 million in net proceeds.

On February 16, 2021 and May 20, 2021, the Company issued an additional $5.0 million and $10.0 million in aggregate principal amount of its 2024 Notes, respectively. The new 2024 Notes are treated as a single series with the prior 2024 Notes and have the same terms as the prior 2024 Notes. The existing 2024 Notes have the same CUSIP number and are fungible and rank equally with the prior 2024 Notes.

On December 29, 2021, the Company redeemed $40.0 million in aggregate principal amount of the $78.25 million in aggregate principal amount of the Notes on the redemption date of December 29, 2021 at 100% of their principal amount ($25 per Note), plus the accrued and unpaid interest thereon from November 1, 2021, through, but excluding, the redemption date. As a result of the partial redemption of the 2024 Notes, the Company recorded a $0.6 million loss on extinguishment of debt during the year ended December 31, 2021, equivalent to the redeemed portion of the remaining balance of unamortized deferred financing costs as of the redemption date.

For the years ended December 31, 2024, 2023 and 2022, interest expense including amortization of related deferred financing costs was $1.4 million, $2.4 million, and $2.4 million, respectively.

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 Notes Payable - Securitization trusts on the Consolidated Statements of Financial Condition.

In December 2017, NSBF completed its eighth securitization which resulted in the transfer of $76.2 million of unguaranteed portions of SBA loans to the 2017-1 Trust. The 2017-1 Trust in turn issued securitization notes for the par amount of $75.4 million, consisting of $58.1 million Class A notes and $17.3 million of 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, with a final maturity date of the notes is February 2043. On February 27, 2023, the 2017-1 Trust was terminated as a result of NSBF purchasing the 2017-1 Trust assets, with the 2017-1 Trust’s noteholders receiving the redemption price.

In November 2018, NSBF completed its ninth securitization which resulted in the transfer of $108.6 million of unguaranteed portions of SBA loans to the 2018-1 Trust. The 2018-1 Trust in turn issued securitization notes for the par amount of $108.6 million, consisting of $82.9 million Class A notes and $25.7 million of 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 February 2044. In October 2024, the 2018-1 Trust was terminated as a result of NSBF purchasing the 2018-1 Trust assets, with the 2018-1 Trust’s noteholders receiving the redemption price.

In October 2019, NSBF completed its tenth securitization which resulted in the transfer of $118.9 million of unguaranteed portions of SBA loans to the 2019-1 Trust, The 2019-1 Trust in turn issued securitization notes for the par amount of $118.9 million, consisting of $93.5 million of Class A notes and $25.4 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. In October 2024, the 2019-1 Trust was terminated as a result of NSBF purchasing the 2019-1 Trust assets, with the 2019-1 Trust’s noteholders receiving the redemption price.

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.

For the years ended December 31, 2024, 2023 and 2022, interest expense including amortization of related deferred financing costs and discount was $21.1 million, $23.5 million, and $10.6 million, respectively.

At December 31, 2024 and 2023, the assets of the consolidated Trusts totaled $8.9 million and $14.8 million, respectively. The liabilities of the consolidated Trusts totaled $189.2 million and $296.2 million, respectively.

NSBF Capital One Facility

Prior to October 2023, NSBF maintained a $150 million Capital One facility to finance the origination of the unguaranteed and guaranteed portions of SBA 7(a) loans NSBF originated. The portion of the facility collateralized by the government guaranteed portion of SBA 7(a) loans was Prime minus 0.75% and the interest rate on the portion of the facility collateralized by the non-guaranteed portion of SBA 7(a) loans was Prime plus 0.25%. The facility provided for a 55% advance rate on the non-guaranteed portions of the SBA 7(a) loans NSBF originates and a 90% advance rate on the guaranteed portions of SBA 7(a) loans NSBF originated. The NSBF Capital One facility was paid off and terminated in October of 2023.

No interest expense was incurred during the year ended December 31, 2024. For the years ended December 31, 2023 and 2022, interest expense including amortization of related deferred financing costs was $11.0 million and $4.0 million, respectively.

Note Payable - Related Parties

In June 2015, the Company entered into the Related Party RLOC. Maximum borrowings under the Related Party RLOC were $38.0 million.

In June 2017, the Related Party RLOC was amended to increase maximum borrowings to $50.0 million. The outstanding balance had an interest rate equal to 1 month LIBOR (with a floor of 0.50%) plus 6.0% or a rate equal to the greater of the Prime Rate or 3.5% plus 5.0%. In November 2018, the Related Party RLOC was amended to reduce the interest rate to the lesser of 1 month LIBOR plus 2.5% or the Prime Rate plus 1.5%.

For the years ended December 31, 2024 and 2023, interest expense was eliminated in the consolidated financial statements on related party notes payable. Interest expense for the year ended December 31, 2022 was $0.5 million.

Total expected principal repayments on the Company’s borrowings for the next five fiscal years and thereafter are as follows:


Year Ending December 31,	Borrowings
2025	$	86,344
2026	123,075
2027	132,980
2028	40,000
2029	146,875
Thereafter	189,231
	$	718,505

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

SUPPLEMENTAL FINANCIAL DATA	12 Months Ended
SUPPLEMENTAL FINANCIAL DATA	Dec. 31, 2024
Investment Company [Abstract]
SUPPLEMENTAL FINANCIAL DATA	NOTE 23—SUPPLEMENTAL FINANCIAL DATA: During the year ended December 31, 2022 when we operated as a BDC, in accordance with the SEC’s Regulation S-X and GAAP, we were not permitted to consolidate any subsidiary or other entity that is not an investment company, including those in which we have a controlling interest. We had two unconsolidated subsidiaries that met at least one of the significance conditions under Rule 1-02(w) of Regulation S-X during certain periods presented for which we were previously required, pursuant to Rule 3-09 of Regulation S-X, to attach separate financial statements as exhibits to the Form 10-K for the year ended December 31, 2022. Refer to our 2022 Form 10-K filed March 15, 2023 and exhibits thereto.

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Narrative (Details) - Annual Compensation - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
CEO Nephew
Related Party Transaction [Line Items]
Annual compensation	$ 125	$ 125	$ 125
CAO Sister
Related Party Transaction [Line Items]
Annual compensation	$ 125	$ 125

LOANS - Investment Portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	$ 371,146	$ 482,563
Fair Value	369,746	469,801
CRE \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	162,894	203,882
Fair Value	175,353	218,334
Residential Real Estate \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	69,667	94,877
Fair Value	67,474	88,051
Machinery and Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	4,700	5,000
Fair Value	4,600	3,600
Machinery and Equipment \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	60,460	74,691
Fair Value	56,454	67,069
Accounts Receivable and Inventory \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	59,449	80,746
Fair Value	54,267	74,596
Unsecured \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	5,643	6,851
Fair Value	5,644	6,898
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	2,000	2,100
Fair Value	1,100	1,100
Other \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	13,033	21,516
Fair Value	$ 10,554	$ 14,853

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Transactions with Joint Ventures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Related Party Transaction [Line Items]
Servicing income	$ 20,087	$ 18,289	$ 13,698
Dividend income	1,519	1,757	24,657
Noninterest income	217,312	176,772	92,878
Joint Ventures \| Related Party
Related Party Transaction [Line Items]
Servicing income	1,997	1,240	840
Dividend income	1,503	1,641	339
Noninterest income	$ 3,500	$ 2,881	$ 1,179

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net income	$ 50,853	$ 47,329	$ 32,311

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482689/260-10-45-60B

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483499/205-20-50-7

Reference 34: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 230
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482740/230-10-45-28

Reference 35: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482790/220-10-45-1A

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482790/220-10-45-1B

Reference 37: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478524/942-220-S99-1

+ Details

SERVICING ASSETS - Loans Serviced (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Servicing Assets at Fair Value [Line Items]
Total loans serviced	$ 2,179,032	$ 1,850,752
SBA 7(a)
Servicing Assets at Fair Value [Line Items]
Total loans serviced	1,996,715	1,787,258
ALP
Servicing Assets at Fair Value [Line Items]
Total loans serviced	169,842	63,494
504
Servicing Assets at Fair Value [Line Items]
Total loans serviced	$ 12,475	$ 0

BENEFIT PLANS - ESPP Activity (Details) - Employee Stock Purchase Plan - shares shares in Thousands	2 Months Ended		5 Months Ended	6 Months Ended	12 Months Ended
	Dec. 15, 2024	Dec. 15, 2023	Mar. 15, 2024	Sep. 15, 2024	Dec. 31, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Available for Future Issuance [Roll Forward]
ESPP shares authorized under the plan					200
Shares purchased (in shares)	(5)	(4)	(5)	(10)	(20)	(4)
Available for future purchases, December 31, 2024					176	200

LOANS - Individually and Collectively Evaluated (Details) $ in Thousands	Dec. 31, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan	Dec. 31, 2022 USD ($)
ACL
Individually Evaluated	$ 7,019	$ 102
Collectively Evaluated	23,214	12,472
Total	$ 30,233	$ 12,574	$ 0
Recorded Investment
Number of loans individually evaluated \| loan	145	5
CRE, at amortized cost, net of deferred fees and costs
ACL
Individually Evaluated	$ 0	$ 0
Collectively Evaluated	1,430	1,408
Total	1,430	1,408	0
Recorded Investment
Individually Evaluated	2,635	4,621
Collectively Evaluated	189,196	159,182
Total	191,831	163,803
C&I
ACL
Individually Evaluated	0	0
Collectively Evaluated	315	314
Total	315	314	$ 0
Recorded Investment
Individually Evaluated	0	0
Collectively Evaluated	47,558	8,191
Total	47,558	8,191
SBA
ACL
Individually Evaluated	7,019	102
Collectively Evaluated	21,469	10,750
Total	28,488	10,852
Recorded Investment
Individually Evaluated	21,706	727
Collectively Evaluated	359,275	163,191
Total	380,981	163,918
Total Loans
Recorded Investment
Individually Evaluated	24,341	5,348
Collectively Evaluated	596,029	330,564
Total	$ 620,370	$ 335,912

BUSINESS COMBINATIONS (Tables)

12 Months Ended

Dec. 31, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of business acquisitions

The following table summarizes the allocation of consideration paid for the fair value of assets acquired and liabilities assumed from NBNYC:


Purchase price consideration	$	21,281
Fair value of assets acquired:
Cash and due from banks	29,138
Interest-bearing deposits in banks	3,284
Total cash and cash equivalents	32,422

Available-for-sale securities (at fair value)	5,004
Other investments	1,226
Loans receivable	159,155
Federal Reserve Bank stock, at cost	54
Federal Home Loan Bank stock, at cost	1,470
Accrued interest receivable	353
Deferred income taxes	495
Goodwill	271
Core deposit intangible	1,040
Other assets	399
Total assets	$	201,889
Fair value of liabilities assumed:
Deposits:
Demand	$	21,878
Savings and NOW and Money Market	10,975
Certificates of deposit	104,162
Total deposits	137,015
Advances from the Federal Home Loan Bank	27,817
Accrued expenses and other liabilities	15,776
Total liabilities	$	180,608

The following table provides a summary of loans and leases purchased as part of the NBNYC Acquisition with credit deterioration and associated credit loss reserve at acquisition:


Par value (unpaid principal balance)	$	42,443
ACL at acquisition	(870)
Non-credit (discount)	(1,559)
Fair Value	$	40,014

NEWTEKONE, INC. - PARENT COMPANY ONLY

12 Months Ended

Dec. 31, 2024

Condensed Financial Information Disclosure [Abstract]

NEWTEKONE, INC. - PARENT COMPANY ONLY

NOTE 24—NEWTEKONE, INC. - PARENT COMPANY ONLY:

The following statement of financial condition, statement of income and statement of cash flows are for NewtekOne, Inc. and should be read in conjunction with the consolidated financial statements and the notes thereto.

Statement of Financial Condition


	As of December 31,
	2024		2023
Assets
Cash and balances due from depository institutions:	$	19,123	$	13,871
Loans and lease financing receivable	5,715		4,786
Investments in and receivables due from subsidiaries and associated companies	699,059		392,519
Premises and fixed assets (including capitalized leases)	—		64
Other assets	9,617		20,159
Total assets	733,514		431,399

Liabilities and shareholders' equity
Borrowings with a remaining maturity of one year or less:	79,856		38,124
Other borrowed money with a remaining maturity of more than one year	325,418		253,888
Other liabilities	22,083		13,163
Balances due to subsidiaries and related institutions	9,876		46,332
Total liabilities	437,233		351,507

Preferred stock	19,738		19,493
Common stock	525		490
Additional paid in capital	218,266		314,187
Accumulated other comprehensive income	(21)		(148)
Retained earnings	57,773		(254,130)
Total shareholders’ equity	296,281		79,892
Total liabilities and shareholder's equity	$	733,514	$	431,399

Statement of Income


	For the year ended December 31,
	2024		2023
Interest income	$	1,851	$	2,319
Interest expense	26,647		18,797
Net interest loss	(24,796)		(16,478)
Noninterest income:
Dividends	42,107		60,317
All other operating income (loss)	2,970		(2,345)
Total noninterest income	45,077		57,972
Noninterest expense:
Salaries and employee benefits	10,476		9,365
Other expenses	13,627		10,962
Total noninterest expense	24,103		20,327
Net Income (loss) before equity in undistributed income of subsidiaries	(3,822)		21,167
Income tax expense (benefit)	2,428		(14,837)
Income (loss) before undistributed income of subsidiaries	(6,250)		36,004
Equity in undistributed income of subsidiaries and associated companies:	57,103		26,813
Net income	$	50,853	$	62,817

Statement of Cash Flows


	For the year ended December 31,
	2024		2023
Cash flows from operating activities:
Net income	$	50,853	$	62,817
Provisions for deferred income taxes	13,110		(5,814)
Gain (loss) on sale of assets	(1,135)		539
Equity in Undistributed (earnings) losses of subs	(57,103)		(26,813)
Net change in other liabilities	(35,489)		(40,414)
Net change in other asset	5,215		(10,759)
Other, net	6,634		7,570
Net cash (used in) operating activities	(17,915)		(12,874)

Cash flow from investing activities
Purchases of held-to-maturity and available-for-sale securities	(19,899)		—
Sales and maturities of held-to-maturity and available-for-sale securities	20,000		—
Payments for investments in and advances to subsidiaries	(176,333)		(96,265)
Sale or repayment of investments in and advances to subsidiaries	95,543		—
Outlays for business acquisitions	—		(21,322)
Other, net	39		14
Net cash (used in) investing activities	(80,650)		(117,573)

Cash flow from financing activities
Proceeds from issuance of long-term debt	154,050		90,000
Repayment of long-term debt	(38,250)		—
Proceeds from issuance of common stock	14,036		—
Proceeds from issuance of preferred stock	—		19,493
Payment to repurchase common stock	(711)		—
Dividends paid	(20,252)		(14,147)
Other, net	(5,056)		(2,826)
Net cash provided by financing activities	103,817		92,520

Net (decrease) increase in cash and restricted cash	5,252		(37,927)
Cash and restricted cash - beginning of period	13,871		51,798
Cash and restricted cash - end of period	$	19,123	$	13,871

Borrowings and Maturities

Refer to NOTE 13—BORROWINGS for a schedule of borrowings that includes the notes issued by the parent company. Refer to the Liquidity and Capital Resources section of the MD&A under the Contractual Obligations section for a schedule of maturities.

Guarantees

The Company is a guarantor on the SPV I Capital One Facility. Maximum borrowings under the SPV I Facility are $60.0 million. The lender’s commitments terminate in May 2025, with all amounts due under the SPV I Facility maturing in November 2025. At December 31, 2024, total principal owed by SPV I was $21.3 million. At December 31, 2024, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is a guarantor on the SPV II Deutsche Bank Facility. Maximum borrowings under the SPV II Deutsche Bank Facility are $120.0 million. The Deutsche Bank Facility matures in December 2027. At December 31, 2024, total principal owed by SPV II was $54.8 million. At December 31, 2024, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is a guarantor on the SPV III One Florida Bank Facility. Maximum borrowings under the SPV III One Florida Bank Facility are $30.0 million. The One Florida Bank Facility matures in May 2025. At December 31, 2024, total principal owed by SPV III was $23.1 million. At December 31, 2024, the Company determined that it is not probable that payments would be required to be made under the guarantee. On April 27, 2023, the SPV III One Florida Bank Facility was amended to increase maximum borrowings under the line to $30.0 million.

The Company is a guarantor on the Webster Facility, a term loan facility between NMS with Webster Bank with an aggregate principal amount up to $54.9 million. The Webster Facility matures in November 2027. At December 31, 2024, total principal outstanding was $32.7 million. At December 31, 2024, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is 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 restricted cash account at Newtek Bank to secure these potential obligations.

SERVICING ASSETS

12 Months Ended

Dec. 31, 2024

Transfers and Servicing [Abstract]

SERVICING ASSETS

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, 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 and for the portfolios of ALP loans SBL services for NCL JV and TSO JV.

The following table summarizes the unpaid principle balance of loans serviced at December 31, 2024 and 2023:


	December 31, 2024		December 31, 2023
SBA 7(a)	$	1,996,715	$	1,787,258
ALP	169,842		63,494
504	12,475		—
Total loans serviced	$	2,179,032	$	1,850,752

The following table summarizes the fair value and valuation assumptions related to servicing assets at December 31, 2024 and 2023:


	December 31, 2024								December 31, 2023
			Weighted		Range						Weighted		Range
Unobservable Input	Amount		Average		Minimum		Maximum		Amount		Average		Minimum		Maximum
Servicing assets at FV:	$	22,062							$	29,336
Discount factor1			12.00	%	12.00	%	12.00	%			13.50	%	13.50	%	13.50	%
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	%			19.00	%	19.00	%	19.00	%
Servicing assets at LCM:	24,195								10,389
Discount factor1			12.97	%	12.00	%	13.50	%			13.50	%	13.50	%	13.50	%
Cumulative prepayment rate			34.65	%	22.50	%	75.00	%			29.76	%	22.50	%	75.00	%
Average cumulative default rate			18.90	%	5.00	%	20.00	%			19.14	%	19.00	%	20.00	%
Total	$	46,257							$	39,725

1 Determined based on risk spreads and observable secondary market transactions.

Refer to NOTE 10—FAIR VALUE MEASUREMENTS for a rollforward of servicing assets at fair value. The following tables show a rollforward of servicing assets measured at LCM for the years ended December 31, 2024 and 2023:


Servicing Assets, at LCM	December 31, 2024
December 31, 2023	$	10,389
Amortization1	(5,378)
Additions2	19,184
Impairment assessment	—
December 31, 2024	$	24,195

1 Included within Net loss on loan servicing assets in the Consolidated Statements of Income

2 Included within Net gains on sales of loans in the Consolidated Statements of Income


Servicing Assets, at LCM	December 31, 2023
December 31, 2022	$	—
Additions/(removal) of entities consolidating after Conversion to BHC	486
Amortization1	(733)
Additions2	10,636
Impairment assessment	—
December 31, 2023	$	10,389

1 Included within Net loss on loan servicing assets in the Consolidated Statements of Income

2 Included within Net gains on sales of loans in the Consolidated Statements of Income

Servicing fee income earned for the years ended December 31, 2024, 2023 and 2022 was as follows:


	Year Ended December 31,
		2024	2023	2022
Servicing fee income		$20,087	$18,289	$13,698

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

+ Details

SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Schedule of segments

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


As of and for the year ended December 31, 2024
	Banking				Alternative Lending				Technology				NSBF				Payments				Corporate & Other				Consolidated
	Segment		Elim		Segment		Elim		Segment		Elim		Segment		Elim		Segment		Elim		Segment		Elim
Interest income	$	69,576	$	(2)	$	15,073	$	(12)	$	6	$	(6)	$	36,655	$	(421)	$	2,362	$	(2,310)	$	2,364	$	(1,867)	$	121,418
Interest expense	29,855		(643)		3,539		—		—		—		21,097		—		2,984		(77)		28,256		(3,898)		81,113
Net interest income/(loss)	39,721		641		11,534		(12)		6		(6)		15,558		(421)		(622)		(2,233)		(25,892)		(2,233)		40,305
Provision for loan credit losses	26,216		—		—		—		—		—		—		—		—		—		—		—		26,216
Net interest income after provision for loan credit losses	13,505		641		11,534		(12)		6		(6)		15,558		(421)		(622)		(2,233)		(25,892)		(2,233)		14,089
Noninterest income	136,080		(28,068)		55,824		—		27,020		(7,139)		(23,410)		—		48,852		(2,028)		65,242		(55,061)		217,312
Technology services expense	—		—		—		—		12,575		(314)		—		—		—		—		—		—		12,261
Electronic payment processing expense	—		—		—		—		—		—		—		—		21,046		(1,168)		—		—		19,878
Salaries and employee benefits expense	45,346		(2,531)		1,202		(1,202)		8,690		—		219		682		7,188		11		15,285		3,041		77,931
Professional services expense	3,941		—		165		—		678		—		2,482		—		684		—		7,863		—		15,813
Other loan origination and maintenance expense	20,385		(14,060)		6,095		(4,044)		38		—		16,069		(11,020)		—		—		402		(95)		13,770
Depreciation and amortization	182		—		—		—		1,062		—		114		—		356		—		70		—		1,784
Other general and administrative costs	12,426		(2,548)		172		—		3,794		(271)		1,948		(11)		2,757		(1,769)		7,690		(2,916)		21,272
Income before taxes	67,305		(8,288)		59,724		5,234		189		(6,560)		(28,684)		9,928		16,199		(1,335)		8,040		(57,324)		68,692
Income tax expense (benefit)	15,308		(15,308)		—		—		103		(103)		—		—		—		—		2,428		15,411		17,839
Net income	$	51,997	$	7,020	$	59,724	$	5,234	$	86	$	(6,457)	$	(28,684)	$	9,928	$	16,199	$	(1,335)	$	5,612	$	(72,735)	$	50,853

Other Segment Disclosures:
Assets	$	1,238,899	$	(29,932)	$	439,101	$	(97,352)	$	23,317	$	(1,393)	$	479,896	$	(55,488)	$	60,347	$	(36,707)	$	644,867	$	(605,643)	$	2,059,912
Goodwill & intangible assets	$	938			$	—			$	—			$	—			$	13,814			$	—			$	14,752
Amortization of intangible assets	$	176			$	—			$	350			$	—			$	13			$	—			$	539


As of and for the year ended December 31, 2023
	Banking				Alternative Lending				Technology				NSBF				Payments				Corporate & Other				Consolidated
	Segment		Elim		Segment		Elim		Segment		Elim		Segment		Elim		Segment		Elim		Segment		Elim
Interest income	$	34,349	$	—	$	8,198	$	(3)	$	—	$	—	$	50,823	$	(75)	$	2,087	$	(2,053)	$	3,427	$	(2,380)	$	94,373
Interest expense	16,625		(99)		4,035		—		246		(246)		26,796		—		3,577		(132)		20,971		(4,034)		67,739
Net interest income/(loss)	17,724		99		4,163		(3)		(246)		246		24,027		(75)		(1,490)		(1,921)		(17,544)		1,654		26,634
Provision for loan credit losses	11,704		—		—		—		—		—		—		—		—		—		—		—		11,704
Net interest income after provision for loan credit losses	6,020		99		4,163		(3)		(246)		246		24,027		(75)		(1,490)		(1,921)		(17,544)		1,654		14,930
Noninterest income	92,129		(26,091)		12,278		—		31,692		(6,660)		25,142		—		46,422		(2,893)		79,781		(75,028)		176,772
Technology services expense	—		—		—		—		14,794		(522)		—		—		—		—		—		—		14,272
Electronic payment processing expense	—		—		—		—		—		—		—		—		19,680		(1,353)		—		—		18,327
Salaries and employee benefits expense	35,385		—		—		—		8,989		—		973		—		7,152		—		13,209		—		65,708
Professional services expense	2,903		—		294		—		468		—		1,508		—		660		—		7,244		—		13,077
Other loan origination and maintenance expense	9,373		(7,133)		2,222		(1,469)		11		—		24,327		(18,100)		—		—		273		(71)		9,433
Loss on extinguishment of debt	—		—		—		—		—		—		271		—		—		—		—		—		271
Depreciation and amortization	208		—		—		—		1,498		—		123		—		1,021		—		34		—		2,884
Other general and administrative costs	10,506		(2,266)		117		—		4,090		(236)		4,906		(24)		3,087		(1,910)		5,872		(1,785)		22,357
Income before taxes	39,774		(16,593)		13,808		1,466		1,596		(5,656)		17,061		18,049		13,332		(1,551)		35,605		(71,518)		45,373
Income tax expense (benefit)	11,647		—		(150)		—		229		—		—		—		1,178		—		(14,860)		—		(1,956)
Net income	$	28,127	$	(16,593)	$	13,958	$	1,466	$	1,367	$	(5,656)	$	17,061	$	18,049	$	12,154	$	(1,551)	$	50,465	$	(71,518)	$	47,329

Other Segment Disclosures:
Assets	$	683,202	$	(29,136)	$	196,062	$	(51,820)	$	23,403	$	(884)	$	633,206	$	(97,683)	$	51,819	$	(27,154)	$	529,941	$	(481,443)	$	1,429,513
Goodwill & intangible assets	$	1,114			$	—			$	15,179			$	—			$	13,827			$	—			$	30,120
Amortization of intangible assets	$	197			$	—			$	466			$	—			$	805			$	—			$	1,468

GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Goodwill [Line Items]
Total goodwill	$ 14,085	$ 25,885
Banking
Goodwill [Line Items]
Total goodwill	271	271
Payments
Goodwill [Line Items]
Total goodwill	13,814	13,814
Technology
Goodwill [Line Items]
Total goodwill	$ 0	$ 11,800

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

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- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

DEPOSITS - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Deposit Liability [Line Items]
Aggregate amount of deposit accounts that exceeded the FDIC limit	$ 140,679	$ 66,511
Certificates of Deposit
Deposit Liability [Line Items]
Aggregate amount of deposit accounts that exceeded the FDIC limit	$ 99,231	$ 20,070

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 25—SUBSEQUENT EVENTS: Sale of NTS On January 2, 2025, the Company completed the previously announced sale of its wholly owned subsidiary Newtek Technology Solutions, Inc. (“NTS”) to Paltalk, Inc. (“Paltalk,” subsequently renamed Intelligent Protection Management Corp, (Nasdaq: IPM) (the “NTS Sale”), pursuant to the Agreement and Plan of Merger (the “Agreement”), dated as of August 11, 2024, by and among Paltalk, PALT Merger Sub 1, Inc., PALT Merger Sub 2, LLC, NTS and the Company. As previously disclosed, in connection with the Company’s acquisition of Newtek Bank and transition to a financial holding company, the Company made a commitment to the Board of Governors of the Federal Reserve System to divest or terminate the activities of NTS. Under the terms of the Agreement, at the closing of the NTS Sale, Paltalk acquired NTS for a combination of $4.0 million in cash, subject to certain purchase price adjustments (the “Cash Consideration”), and 4.0 million shares of a newly created series of Paltalk non-voting preferred stock, the Series A Non-Voting Common Equivalent Stock (the “Preferred Stock”) (the “Stock Consideration” and together with the Cash Consideration, the “Closing Consideration”). Upon the occurrence of certain specified transfers of the Preferred Stock, each share of Preferred Stock will automatically convert into one share of common stock of Paltalk, subject to certain anti-dilution adjustments. In addition to the Closing Consideration, the Company may be entitled to receive an earn-out amount of up to $5.0 million, payable in cash, Preferred Stock, or a combination thereof (as determined in Paltalk’s discretion), based on Paltalk's achievement of certain cumulative average Adjusted EBITDA thresholds for the 2025 and 2026 fiscal years. Pursuant to the Agreement, the Company is entitled to appoint one representative to the Paltalk board of directors. The Company will account for our investment in Paltalk under ASC 321 beginning in the first quarter of 2025.

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITES

12 Months Ended

Dec. 31, 2024

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITES

NOTE 12—ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITES:

The following table details the components of accounts payable, accrued expenses and other liabilities at December 31, 2024 and December 31, 2023:


	December 31, 2024		December 31, 2023
Loan related remittances due to SBA and participants	$	2,203	$	3,577
Accrued payroll and related payables	332		1,349
Accrued interest	6,035		4,114
Funds in process to PMT's payroll customers	5,700		5,060
Loan processing, servicing and other loan related payables	3,185		3,793
SBA repair & denial reserve1	3,573		3,063
Good faith deposits	1,499		893
Other	18,279		15,451
Total accounts payable, accrued expenses and other liabilities	$	40,806	37,300

1 The Company may be exposed to repair and denial liability to the SBA for SBA 7(a) loans in its portfolio. The Company established a loss contingency reserve in accordance with ASC 450-20. To determine the reserve the Company utilizes probability of default and loss given default rates, which are consistent with the assumptions used in its cash flow projections when estimating the fair value of loans. These factors are applied to the outstanding balances of guaranteed SBA 7(a) loans as well as a rate of repurchase based on historical experience.

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	12 Months Ended
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	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 Alternative Lending, Newtek Technology, 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; NALH; NCL; and NTS. Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data. 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 considers a voting rights entity to be a subsidiary and consolidates it if the Company has a controlling financial interest in the entity. 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 4—INVESTMENTS. NTS Sale As a result of the Company’s entry into the NTS Sale Agreement and its completion of the NTS Sale on January 2, 2025, the Company reported NTS as Held for Sale as of December 31, 2024. See NOTE 25—SUBSEQUENT EVENTS: Sale of NTS. In addition, as of the date of the NTS Sale, the Company has concluded that the assets, liabilities and operations of NTS do not qualify for Discontinued Operations as of December 31, 2024. See NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE. Reclassifications and Restatements Certain prior period amounts, to the extent comparable, have been reclassified to conform to the current period presentation. The supplemental disclosure of cash flow information for interest paid was restated for December 31, 2023 and 2022 as a result of the previously disclosed material weaknesses and restatements described in the 2023 Annual Report on Form 10-K.

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	Dec. 31, 2024
Weighted Avg Interest Rate	7.22%
2025 5.00% Notes \| Medium-term Notes
Weighted Avg Interest Rate	5.00%
2025 8.125% Notes \| Medium-term Notes
Weighted Avg Interest Rate	8.125%
8.00% Notes due 2028 \| Medium-term Notes
Weighted Avg Interest Rate	8.00%
2025 6.85% Notes \| Medium-term Notes
Weighted Avg Interest Rate	6.85%
2029 8.50% Notes \| Medium-term Notes
Weighted Avg Interest Rate	8.50%
2029 8.625% Notes \| Medium-term Notes
Weighted Avg Interest Rate	8.625%

LOANS (Tables)

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

Investment holdings, schedule of investments

Investments consisted of the following at:


	December 31, 2024				December 31, 2023
	Cost		Fair Value		Cost		Fair Value
Joint ventures and other non-control investments, at fair value	$	44,039	$	57,678	$	38,660	$	41,587
Debt securities available-for-sale, at fair value	23,934		23,916		32,372		32,171
Federal Home Loan Bank and Federal Reserve Bank stock	3,585		3,585		3,635		3,635
Total investments	$	71,558	$	85,179	$	74,667	$	77,393

The following table shows the Company’s loan portfolio by collateral type for loans HFI, at fair value:


	Loans HFI, at Fair Value
	December 31, 2024				December 31, 2023
	Cost		Fair Value		Cost		Fair Value
CRE	$	162,894	$	175,353	$	203,882	$	218,334
Residential Real Estate	69,667		67,474		94,877		88,051
Machinery and Equipment¹	60,460		56,454		74,691		67,069
Accounts Receivable and Inventory	59,449		54,267		80,746		74,596
Unsecured	5,643		5,644		6,851		6,898
Other²	13,033		10,554		21,516		14,853
Total	$	371,146	$	369,746	$	482,563	$	469,801

1 Machinery and Equipment includes one loan at NewtekOne of $4.7 million Cost and $4.6 million Fair value as of December 31, 2024, and $5.0 million Cost and $3.6 million Fair Value as of December 31, 2023.

2 Other includes one loan at NewtekOne of $2.0 million Cost and $1.1 million Fair Value as of December 31, 2024, and two loans at $2.1 million Cost and $1.1 million Fair Value as of December 31, 2023.

Schedule of loans and leases

The following table shows the Company’s loan portfolio by loan type for loans HFI, at amortized cost:


	Loans HFI, at Amortized Cost
	December 31, 2024		December 31, 2023
SBA	$	380,981	$	163,918
CRE	191,831		163,803
C&I	47,558		8,191
Total Loans	620,370		335,912
Deferred fees and costs, net	1,281		393
Loans held for investment, at amortized cost, net of deferred fees and costs	$	621,651	$	336,305

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


	As of December 31, 2024
	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		90-119 Days		120+ Days
SBA, at fair value	$	23,158	$	18,400	$	9,268	$	—	$	67,304	$	118,130	$	251,616	$	369,746

	As of December 31, 2023
	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		90-119 Days		120+ Days
SBA, at fair value	$	20,380	$	16,075	$	—	$	—	$	48,174	$	84,629	$	385,172	$	469,801

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


	As of December 31, 2024
	Past Due and Accruing								Non- accrual		Total Past Due and Non-accrual		Current		Total Carried at Amortized Cost
	30-59 Days		60-89 Days		90-119 Days		120+ Days
At amortized cost
SBA	$	11,264	$	9,046	$	—	$	—	$	21,706	$	42,016	$	338,965	$	380,981
CRE	—		—		—		—		2,635		2,635		189,196		191,831
C&I	275		—		—		—		—		275		47,283		47,558
Total, at amortized cost	$	11,539	$	9,046	$	—	$	—	$	24,341	$	44,926	$	575,444	$	620,370
Deferred fees and costs															1,281
Total, at amortized cost net of deferred fees and costs															$	621,651
Allowance for credit losses															(30,233)
Total, at amortized cost, net															$	591,418


	As of December 31, 2023
		Past Due and Accruing								Non- accrual		Total Past Due and Non-accrual		Current		Total Carried at Amortized Cost
		30-59 Days		60-89 Days		90-119 Days		120+ Days
At amortized cost
SBA		$	3,637	$	311	$	—	$	—	$	752	$	4,700	$	159,218	$	163,918
CRE		948		—		—		—		4,621		5,569		158,234		163,803
C&I		—		—		—		—		—		—		8,191		8,191
Total, at amortized cost		$	4,585	$	311	$	—	$	—	$	5,373	$	10,269	$	325,643	$	335,912
Deferred fees and costs																393
Total, at amortized cost net of deferred fees and costs																$	336,305
Allowance for credit losses																(12,574)
Total, at amortized cost, net																$	323,731

Credit quality indicators

The following tables present asset quality indicators by portfolio class and origination year at December 31, 2024 and December 31, 2023:


December 31, 2024	Term Loans HFI by Origination Year
	2024		2023		2022		2021		2020		Prior		Total
SBA, at fair value
Risk Grades 1-4	$	—	$	24,061	$	112,058	$	40,641	$	20,379	$	102,569	$	299,708
Risk Grades 5-6	—		3,469		18,592		5,365		3,188		39,225		69,839
Risk Grade 7	—		—		—		—		—		—		—
Risk Grade 8	—		—		144		17		22		16		199
Total	$	—	$	27,530	$	130,794	$	46,023	$	23,589	$	141,810	$	369,746
SBA, at amortized cost, net of deferred fees and costs
Risk Grades 1-4	$	224,958	$	110,735	$	—	$	—	$	—	$	—	$	335,693
Risk Grades 5-6	7,475		32,753		—		—		—		—		40,228
Risk Grade 7	588		4,132		—		—		—		—		4,720
Risk Grade 8	85		255		—		—		—		—		340
Total	$	233,106	$	147,875	$	—	$	—	$	—	$	—	$	380,981
CRE, at amortized cost, net of deferred fees and costs
Risk Grades 1-4	$	51,889	$	25,697	$	33,235	$	15,763	$	395	$	60,614	$	187,593
Risk Grades 5-6	—		—		—		—		883		3,355		4,238
Risk Grade 7	—		—		—		—		—		—		—
Total	$	51,889	$	25,697	$	33,235	$	15,763	$	1,278	$	63,969	$	191,831
C&I, at amortized cost, net of deferred fees and costs
Risk Grades 1-4	$	44,251	$	1,532	$	—	$	—	$	—	$	1,500	$	47,283
Risk Grades 5-6	—		275		—		—		—		—		275
Risk Grade 7	—		—		—		—		—		—		—
Total	$	44,251	$	1,807	$	—	$	—	$	—	$	1,500	$	47,558
Total	$	329,246	$	202,909	$	164,029	$	61,786	$	24,867	$	207,279	$	990,116


December 31, 2023	Term Loans HFI by Origination Year
	2023		2022		2021		2020		2019		Prior		Total
SBA, at fair value
Risk Grades 1-4	$	34,289	$	151,929	$	53,998	$	27,870	$	52,175	$	94,751	$	415,012
Risk Grades 5-6	349		8,968		5,813		1,257		11,764		25,727		53,878
Risk Grade 7	—		—		—		—		—		—		—
Risk Grade 8	—		149		17		22		16		707		911
Total	$	34,638	$	161,046	$	59,828	$	29,149	$	63,955	$	121,185	$	469,801
SBA, at amortized cost, net of deferred fees and costs
Risk Grades 1-4	$	161,263	$	—	$	—	$	—	$	—	$	—	$	161,263
Risk Grades 5-6	2,655		—		—		—		—		—		2,655
Risk Grade 7	—		—		—		—		—		—		—
Risk Grade 8	—		—		—		—		—		—		—
Total	$	163,918	$	—	$	—	$	—	$	—	$	—	$	163,918
CRE, at amortized cost, net of deferred fees and costs
Risk Grades 1-4	$	53,567	$	28,224	$	14,590	$	—	$	8,888	$	49,771	$	155,040
Risk Grades 5-6	—		—		948		910		2,284		4,621		8,763
Risk Grade 7	—		—		—		—		—		—		—
Total	$	53,567	$	28,224	$	15,538	$	910	$	11,172	$	54,392	$	163,803
C&I, at amortized cost, net of deferred fees and costs
Risk Grades 1-4	$	6,174	$	—	$	—	$	—	$	—	$	2,017	$	8,191
Risk Grades 5-6	—		—		—		—		—		—		—
Risk Grade 7	—		—		—		—		—		—		—
Total	$	6,174	$	—	$	—	$	—	$	—	$	2,017	$	8,191
Total	$	258,297	$	189,270	$	75,366	$	30,059	$	75,127	$	177,594	$	805,713

Allowance for credit losses

The following table details activity in the ACL for the years ended December 31, 2024 and December 31, 2023:


	December 31, 2024								December 31, 2023
	CRE		C&I		SBA		Total		CRE		C&I		SBA		Total
Beginning balance	$	1,408	$	314	$	10,852	$	12,574	$	—	$	—	$	—	$	—
Adjustment to beginning balance due to PCD marks1	—		—		—		—		774		96		—		870
Charge offs	(236)		—		(7,836)		(8,072)		—		—		—		—
Recoveries	—		—				—		—		—		—		—
Provision for credit losses2	258		1		25,472		25,731		634		218		10,852		11,704
Ending balance	$	1,430	$	315	$	28,488	$	30,233	$	1,408	$	314	$	10,852	$	12,574

1 Given the January 6, 2023 transition to a financial holding company, the Company established an ACL with the beginning balance representing the purchased credit deteriorated loans acquired through the NBNYC Acquisition.

2 Excludes $0.5 million of Provision for credit losses relating to unfunded commitments for the year ended December 31, 2024, 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:


	December 31, 2024								December 31, 2023
ACL	CRE		C&I		SBA		Total		CRE		C&I		SBA		Total
Individually Evaluated	$	—	$	—	$	7,019	$	7,019	$	—	$	—	$	102	$	102
Collectively Evaluated	1,430		315		21,469		23,214		1,408		314		10,750		12,472
Total	$	1,430	$	315	$	28,488	$	30,233	$	1,408	$	314	$	10,852	$	12,574

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


	December 31, 2024								December 31, 2023
Recorded Investment	CRE		C&I		SBA		Total		CRE		C&I		SBA		Total
Individually Evaluated	$	2,635	$	—	$	21,706	$	24,341	$	4,621	$	—	$	727	$	5,348
Collectively Evaluated	189,196		47,558		359,275		596,029		159,182		8,191		163,191		330,564
Total	$	191,831	$	47,558	$	380,981	$	620,370	$	163,803	$	8,191	$	163,918	$	335,912

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


	December 31, 2024				December 31, 2023

	Real Estate Collateral		Non-Real Estate Collateral		Total		ACL		Real Estate Collateral		Non-Real Estate Collateral		Total		ACL
SBA	$	19,586	$	2,120	$	21,706	$	7,019	$	625	$	102	$	727	$	102
CRE	2,635		—		2,635		—		4,621		—		4,621		—







Total	$	22,221	2,120		24,341		7,019		$	5,246	102		5,348		102

Past due loans

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


	December 31, 2024						December 31, 2023
	Nonaccrual without Allowance		Nonaccrual with Allowance		ACL		Nonaccrual without Allowance		Nonaccrual with Allowance		ACL
SBA	$	7,264	$	14,444	$	7,019	$	625	$	102	$	102
CRE	2,635		—		—		4,621		—		—








Total	$	9,899	$	14,444	$	7,019	$	5,246	$	102	$	102

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


	As of December 31, 2024
	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		90-119 Days		120+ Days
SBA, at fair value	$	29,119	$	13,367	$	—	$	—	$	250	$	42,736	$	117,052	$	159,788
ALP, at fair value	—		2,492		—		—		—		2,492		210,006		212,498
Total	$	29,119	$	15,859	$	—	$	—	$	250	$	45,228	$	327,058	$	372,286

	As of December 31, 2023
	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		90-119 Days		120+ Days
SBA, at fair value	$	8,796							$	250	$	9,046	$	78,464	$	87,510
ALP, at fair value	—		—		—		—		—		—		31,357		31,357
Total	$	8,796	$	—	$	—	$	—	$	250	$	9,046	$	109,821	$	118,867

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


	As of December 31, 2024
	Past Due and Accruing								Non- accrual		Total Past Due and Non-accrual		Current		Total Carried at Amortized Cost
	30-59 Days		60-89 Days		90-119 Days		120+ Days
At LCM
SBA	$	2,164	$	1,099	$	—	$	—	$	—	3,263		$	55,540	$	58,803


Total, at LCM	$	2,164	$	1,099	$	—	$	—	$	—	$	3,263	$	55,540	$	58,803


	As of December 31, 2023
		Past Due and Accruing								Non- accrual		Total Past Due and Non-accrual		Current		Total Carried at Amortized Cost
		30-59 Days		60-89 Days		90-119 Days		120+ Days
At LCM
SBA		$	—	$	—	$	—	$	—	$	—	$	—	$	56,607	$	56,607


Total, at LCM		$	—	$	—	$	—	$	—	$	—	$	—	$	56,607	$	56,607

Held for sale


	December 31, 2024		December 31, 2023
SBA 504 First Lien	$	128,255	$	66,387
SBA 504 Second Lien	26,678		20,757
SBA 7(a)	4,855		262
SBA 7(a) Partials	—		104
ALP	212,498		31,357
Loans held for sale, at fair value	$	372,286	$	118,867

Loans held for sale, at LCM


	December 31, 2024		December 31, 2023
SBA 504 First Lien	$	36,783	$	39,565
SBA 504 Second Lien	8,203		5,741
SBA 7(a)	—		64
SBA 7(a) Partials	13,817		11,237

Loans held for sale, at LCM	58,803		56,607

SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Feb. 03, 2023	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Nov. 01, 2024	Nov. 17, 2023	Jul. 20, 2022
Subsidiary, Sale of Stock [Line Items]
Preferred stock, par value (in dollars per share)		$ 0.02	$ 0.02
Issuance of common stock, net of offering costs		$ 13,389	$ 20,000	$ 2,019
Warrants issued (in shares)	47,540
Price of warrant (in dollars per share)	$ 21.03
Exercisable term	10 years
Shares available for repurchase (in shares)					1,000,000
Series A Convertible Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Issuance of stock (in shares)	20,000
Preferred stock, par value (in dollars per share)	$ 0.02
Issuance of common stock, net of offering costs	$ 20,000
Issuance price (in dollars per share)	$ 1,000.0
Convertible shares (in shares)	47.54
2023 ATM Equity Distribution
Subsidiary, Sale of Stock [Line Items]
Common stock authorized for sale (in shares)						3,000,000.0
2020 ATM Equity Distribution
Subsidiary, Sale of Stock [Line Items]
Common stock authorized for sale (in shares)							6,400,000

SHAREHOLDERS' EQUITY - ATM Equity Distribution (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Subsidiary, Sale of Stock [Line Items]
Stock-based compensation expense	$ 4,062	$ 2,828	$ 2,511
2023 ATM Equity Distribution
Subsidiary, Sale of Stock [Line Items]
Shares sold (in shares)	1,100,000	0	0
Net weighted average price per share	$ 12.56	$ 0	$ 0
Net proceeds	$ 13,818	$ 0	$ 0
Stock-based compensation expense	$ 282	$ 0	$ 0
2020 ATM Equity Distribution
Subsidiary, Sale of Stock [Line Items]
Shares sold (in shares)	0	0	107,000
Net weighted average price per share	$ 0	$ 0	$ 19.12
Net proceeds	$ 0	$ 0	$ 2,054

BORROWINGS - Capital One Facility (Details) - Capital One Facilities - Line of Credit - USD ($)	1 Months Ended		12 Months Ended
	Sep. 30, 2023	May 31, 2017	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Capital One, Guaranteed and Unguaranteed
Debt Instrument [Line Items]
Line of credit	$ 150,000,000
Interest expense			$ 0	$ 11,000,000.0	$ 4,000,000.0
Capital One, Guaranteed
Debt Instrument [Line Items]
Interest rate, basis spread	0.75%
Advance rate	90.00%
Capital One, Unguaranteed
Debt Instrument [Line Items]
Interest rate, basis spread	0.25%
Advance rate		55.00%

INVESTMENTS - Transaction with Affiliated Companies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Investment Owned, Fair Value [Roll Forward]
Net Gains/(Losses)	$ 10,712	$ 3,219	$ 24,321
Affiliate Investments
Investment Owned, Fair Value [Roll Forward]
Fair Value	41,587	24,382
Proceeds from sale of loans held for sale	25,680	14,550
Return of Investment, Operating Activity	(20,301)	(564)
Net Gains/(Losses)	10,712	3,219
Fair Value	57,678	41,587	24,382
Dividend Income	1,519	1,757
Joint Ventures
Investment Owned, Fair Value [Roll Forward]
Fair Value	40,859	23,022
Proceeds from sale of loans held for sale	25,642	14,550
Return of Investment, Operating Activity	(20,185)	0
Net Gains/(Losses)	10,584	3,287
Fair Value	56,900	40,859	23,022
Dividend Income	1,503	1,641
Other Non-Control Investments
Investment Owned, Fair Value [Roll Forward]
Fair Value	728	1,360
Proceeds from sale of loans held for sale	38	0
Return of Investment, Operating Activity	(116)	(564)
Net Gains/(Losses)	128	(68)
Fair Value	778	728	1,360
Dividend Income	16	116
Investment, Identifier [Axis]: Biller Genie Software, LLC
Investment Owned, Fair Value [Roll Forward]
Fair Value	360	360
Proceeds from sale of loans held for sale	38	0
Return of Investment, Operating Activity	0	0
Net Gains/(Losses)	60	0
Fair Value	458	360	360
Dividend Income	0	0
Investment, Identifier [Axis]: EMCAP Loan Holdings, LLC
Investment Owned, Fair Value [Roll Forward]
Fair Value	368	1,000
Proceeds from sale of loans held for sale	0	0
Return of Investment, Operating Activity	(116)	(564)
Net Gains/(Losses)	68	(68)
Fair Value	320	368	1,000
Dividend Income	16	116
Investment, Identifier [Axis]: Newtek Conventional Lending, LLC
Investment Owned, Fair Value [Roll Forward]
Fair Value	19,400	16,587
Proceeds from sale of loans held for sale	0	248
Return of Investment, Operating Activity	0	0
Net Gains/(Losses)	(600)	2,565
Fair Value	18,800	19,400	16,587
Dividend Income	1,503	1,641
Investment, Identifier [Axis]: Newtek TSO II Conventional Credit Partners, LP
Investment Owned, Fair Value [Roll Forward]
Fair Value	21,459	6,435
Proceeds from sale of loans held for sale	25,642	14,302
Return of Investment, Operating Activity	(20,185)	0
Net Gains/(Losses)	11,184	722
Fair Value	38,100	21,459	$ 6,435
Dividend Income	$ 0	$ 0

REGULATORY CAPITAL (Details) $ in Thousands	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Banking Regulation, Tier 1 Risk-Based Capital [Abstract]
Actual	$ 231,899	$ 180,829
Actual, Ratio	0.133	0.136
For Capital Adequacy Purposes	$ 69,727	$ 53,363
For Capital Adequacy Purposes, Ratio	0.040	0.040
For Consideration as Well-Capitalized		$ 50,246
For Consideration as Well-Capitalized, Ratio		0.050
Banking Regulation, Common Equity Tier 1 Risk-Based Capital [Abstract]
Actual	$ 231,899	$ 180,829
Actual, Ratio	0.170	0.162
For Capital Adequacy Purposes	$ 61,492	$ 50,153
For Capital Adequacy Purposes, Ratio	0.045	0.045
For Consideration as Well-Capitalized		$ 55,107
For Consideration as Well-Capitalized, Ratio		0.065
Banking Regulation, Tier 1 Leverage Capital [Abstract]
Actual	$ 231,899	$ 180,829
Actual, Ratio	0.170	0.162
For Capital Adequacy Purposes	$ 81,990	$ 66,870
For Capital Adequacy Purposes, Ratio	0.060	0.060
For Consideration as Well-Capitalized		$ 67,823
For Consideration as Well-Capitalized, Ratio		0.080
Banking Regulation, Total Capital [Abstract]
Actual	$ 268,887	$ 213,141
Actual, Ratio	0.197	0.191
For Capital Adequacy Purposes	$ 109,320	$ 89,160
For Capital Adequacy Purposes, Ratio	0.080	0.080
For Consideration as Well-Capitalized		$ 84,779
For Consideration as Well-Capitalized, Ratio		0.100
Newtek Bank
Banking Regulation, Tier 1 Risk-Based Capital [Abstract]
Actual	$ 120,078	$ 99,253
Actual, Ratio	0.119	0.166
For Capital Adequacy Purposes	$ 40,197	$ 23,893
For Capital Adequacy Purposes, Ratio	0.040	0.040
For Consideration as Well-Capitalized		$ 29,866
For Consideration as Well-Capitalized, Ratio		0.050
Banking Regulation, Common Equity Tier 1 Risk-Based Capital [Abstract]
Actual	$ 120,078	$ 99,253
Actual, Ratio	0.142	0.215
For Capital Adequacy Purposes	$ 38,151	$ 20,787
For Capital Adequacy Purposes, Ratio	0.045	0.045
For Consideration as Well-Capitalized		$ 30,026
For Consideration as Well-Capitalized, Ratio		0.065
Banking Regulation, Tier 1 Leverage Capital [Abstract]
Actual	$ 120,078	$ 99,253
Actual, Ratio	0.142	0.215
For Capital Adequacy Purposes	$ 50,868	$ 27,716
For Capital Adequacy Purposes, Ratio	0.060	0.060
For Consideration as Well-Capitalized		$ 36,955
For Consideration as Well-Capitalized, Ratio		0.080
Banking Regulation, Total Capital [Abstract]
Actual	$ 130,924	$ 105,105
Actual, Ratio	0.154	0.228
For Capital Adequacy Purposes	$ 67,824	$ 36,954
For Capital Adequacy Purposes, Ratio	0.080	0.080
For Consideration as Well-Capitalized		$ 46,193
For Consideration as Well-Capitalized, Ratio		0.100

REGULATORY CAPITAL (Tables)

12 Months Ended

Dec. 31, 2024

Equity [Abstract]

Schedule of capital amounts

Capital amounts and ratios for NewtekOne, Inc. as of December 31, 2024 and 2023 are presented in the table below:


	Actual				For Capital Adequacy Purposes1				For Consideration as Well-Capitalized
NewtekOne, Inc. - December 31, 2024	Amount		Ratio		Amount		Ratio		Amount	Ratio
Tier 1 Capital (to Average Assets)	$	231,899	13.3	%	69,727		4.0	%	N/A	N/A
Common Equity Tier 1 (to Risk-Weighted Assets)	231,899		17.0	%	61,492		4.5	%	N/A	N/A
Tier 1 Capital (to Risk-Weighted Assets)	231,899		17.0	%	81,990		6.0	%	N/A	N/A
Total Capital (to Risk-Weighted Assets)	268,887		19.7	%	109,320		8.0	%	N/A	N/A
NewtekOne, Inc. - December 31, 2023
Tier 1 Capital (to Average Assets)	$	180,829	13.6	%	$	53,363	4.0	%	N/A	N/A
Common Equity Tier 1 (to Risk-Weighted Assets)	180,829		16.2	%	50,153		4.5	%	N/A	N/A
Tier 1 Capital (to Risk-Weighted Assets)	180,829		16.2	%	66,870		6.0	%	N/A	N/A
Total Capital (to Risk-Weighted Assets)	213,141		19.1	%	89,160		8.0	%	N/A	N/A

1 Exclusive of the capital conservation buffer of 2.5% of risk-weighted assets.

Capital amounts and ratios for Newtek Bank as of December 31, 2024 and 2023, are presented in the table below. As of December 31, 2024 and 2023, Newtek Bank was categorized as “well-capitalized” under the prompt corrective action measures and met the capital conservation buffer requirements.


	Actual				For Capital Adequacy Purposes1				For Consideration as Well-Capitalized
Newtek Bank - December 31, 2024	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 Capital (to Average Assets)	$	120,078	11.9	%	$	40,197	4.0	%	50,246		5.0	%
Common Equity Tier 1 (to Risk-Weighted Assets)	120,078		14.2	%	38,151		4.5	%	55,107		6.5	%
Tier 1 Capital (to Risk-Weighted Assets)	120,078		14.2	%	50,868		6.0	%	67,823		8.0	%
Total Capital (to Risk-Weighted Assets)	130,924		15.4	%	67,824		8.0	%	84,779		10.0	%
Newtek Bank - December 31, 2023
Tier 1 Capital (to Average Assets)	$	99,253	16.6	%	23,893		4.0	%	$	29,866	5.0	%
Common Equity Tier 1 (to Risk-Weighted Assets)	99,253		21.5	%	20,787		4.5	%	30,026		6.5	%
Tier 1 Capital (to Risk-Weighted Assets)	99,253		21.5	%	27,716		6.0	%	36,955		8.0	%
Total Capital (to Risk-Weighted Assets)	105,105		22.8	%	36,954		8.0	%	46,193		10.0	%

1 Exclusive of the capital conservation buffer of 2.5% of risk-weighted assets.

BUSINESS COMBINATIONS

12 Months Ended

Dec. 31, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

BUSINESS COMBINATIONS

NOTE 3—BUSINESS COMBINATIONS:

Acquisition of NBNYC

On January 6, 2023, the Company completed the Acquisition of NBNYC, a national bank regulated and supervised by the OCC, pursuant to which the Company acquired from the NBNYC shareholders all of the issued and outstanding stock of NBNYC for $20 million, in an all-cash transaction. The Company also agreed to pay the seller’s acquisition costs of approximately $1.3 million. NBNYC was renamed Newtek Bank and became a wholly owned subsidiary of the Company. In connection with the completion of the Acquisition, the Company contributed to Newtek Bank $31 million of cash and two of the Company’s subsidiaries, NBL and SBL (NBL was subsequently merged into SBL). Upon the consummation of the Acquisition, Newtek Bank entered into an operating agreement with the OCC concerning certain matters including capital, liquidity and concentration limits, and memorializing the business plan submitted to the OCC.

The NBNYC transaction was accounted for in accordance with ASC 805, Business Combinations, and the Company performed a purchase price allocation under the acquisition method. Under ASC 805, if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report in its financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, which shall not exceed one year from the acquisition date, the acquirer shall adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date.

The purchase price, including costs incurred by the Company on behalf of the seller directly associated with the Acquisition, was preliminarily allocated to net assets acquired. Final allocation was obtained and the purchase allocations finalized at December 31, 2023. The following table summarizes the allocation of consideration paid for the fair value of assets acquired and liabilities assumed from NBNYC:


Purchase price consideration	$	21,281
Fair value of assets acquired:
Cash and due from banks	29,138
Interest-bearing deposits in banks	3,284
Total cash and cash equivalents	32,422

Available-for-sale securities (at fair value)	5,004
Other investments	1,226
Loans receivable	159,155
Federal Reserve Bank stock, at cost	54
Federal Home Loan Bank stock, at cost	1,470
Accrued interest receivable	353
Deferred income taxes	495
Goodwill	271
Core deposit intangible	1,040
Other assets	399
Total assets	$	201,889
Fair value of liabilities assumed:
Deposits:
Demand	$	21,878
Savings and NOW and Money Market	10,975
Certificates of deposit	104,162
Total deposits	137,015
Advances from the Federal Home Loan Bank	27,817
Accrued expenses and other liabilities	15,776
Total liabilities	$	180,608

In connection with the Acquisition, the Company recorded $0.3 million of goodwill, which represents the excess of the purchase price over the fair value of the net assets acquired. Goodwill is an asset representing the acquired future economic benefits such as synergies that are not individually identified and separately recognized (i.e., it is measured as a residual). The amount of goodwill recognized is also impacted by measurement differences resulting from certain assets and liabilities not being recorded at fair value (e.g., income taxes, employee benefits). In accordance with ASC 805-30-30-1, the measurement of goodwill occurs on the Acquisition Date and, other than qualifying measurement period adjustments, no adjustments are made to goodwill recognized as of the Acquisition Date until and unless it becomes impaired.

ASC 805 provides for a period of time during which the acquirer may adjust provisional amounts recognized at the acquisition date to their subsequently determined acquisition-date fair values, referred to as the “measurement period.” Adjustments during the measurement period are not limited to just those relating to assets acquired and liabilities assumed but apply to all aspects of business combination accounting (e.g., the consideration transferred). Measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. Prior period information is not revised, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. In accordance with ASC 805, the Company recorded a measurement period adjustment and decreased goodwill by $1.0 million related to the finalization of the consideration transferred.

Information regarding the allocation of goodwill to the Company’s reportable segments, as well as the carrying amounts and amortization of the core deposit intangible, can be found within NOTE 8—GOODWILL AND INTANGIBLE ASSETS. None of the goodwill is tax deductible. Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed in the NBNYC Acquisition.

Cash and cash equivalents. The estimated fair values of cash and cash equivalents approximate their stated face amounts, as these financial instruments are either due on demand or have short-term maturities.

Investment securities available-for-sale. Quoted market prices for the securities acquired were used to determine their fair values. If quoted market prices were not available for a specific security, then quoted prices for similar securities in active markets were used to estimate the fair value.

Loans. Each loan was assessed individually. The fair values for loans were estimated using a discounted cash flow methodology that considered factors including the type of loan and the related collateral, classification status, fixed or variable interest rate, remaining term, amortization status, and current discount rates. In addition, the probability of default, loss given default, and prepayment assumptions that were derived based on loan characteristics, historical loss experience, comparable market data, and current and forecasted economic conditions were used to estimate expected credit losses. The discount rates used for loans and leases were based on current market rates for new originations or comparable loans and leases and include adjustments for liquidity. The discount rate did not include credit losses as that was included as a reduction to the estimated cash flows. We determined the fair value of the PCD loans using the asset and income approach. We used the income approach for PCD loans where there was evidence that the borrower may be able to continue to service the loan and more likely than not continue to pay. We used the asset approach for PCD loans when the loan is on non-accrual status. Acquired loans were marked to fair value and adjusted for any PCD gross up as of the Acquisition Date.

Core Deposit 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.

Deposit Liabilities. The fair values used for the demand and savings deposits by definition equal the amount payable on demand at the Acquisition date. The fair values for time deposits were estimated using a discounted cash flow methodology that applies interest rates currently being offered to the contractual interest rates on such time deposits.

Borrowings. The estimated fair value of borrowed funds is based on bid quotations received from securities dealers or the discounted value of contractual cash flows with interest rates currently in effect for borrowed funds with similar maturities.

PCD loans. Purchased loans that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. For PCD loans and leases, the initial estimate of expected credit losses is recognized in the ACL on the date of acquisition using the same methodology as other loans and leases held-for-investment. The following table provides a summary of loans and leases purchased as part of the NBNYC Acquisition with credit deterioration and associated credit loss reserve at acquisition:


Par value (unpaid principal balance)	$	42,443
ACL at acquisition	(870)
Non-credit (discount)	(1,559)
Fair Value	$	40,014

Transaction costs describe the broad category of costs the Company incurs in connection with signed and/or closed acquisitions. Transaction costs include expenses associated with legal, accounting, regulatory, and other transition services rendered in connection with acquisition, travel expense, and other non-recurring direct expenses associated with acquisitions.

The Company incurred transaction costs related to the NBNYC Acquisition during the years ended December 31, 2023 and 2022 of $0.2 million and $2.3 million, respectively. These costs have been included in the Consolidated Statement of Operations in Professional services expense.

SERVICING ASSETS (Tables)

12 Months Ended

Dec. 31, 2024

Transfers and Servicing [Abstract]

Schedule of servicing assets

The following table summarizes the unpaid principle balance of loans serviced at December 31, 2024 and 2023:


	December 31, 2024		December 31, 2023
SBA 7(a)	$	1,996,715	$	1,787,258
ALP	169,842		63,494
504	12,475		—
Total loans serviced	$	2,179,032	$	1,850,752

The following tables show a rollforward of servicing assets measured at LCM for the years ended December 31, 2024 and 2023:


Servicing Assets, at LCM	December 31, 2024
December 31, 2023	$	10,389
Amortization1	(5,378)
Additions2	19,184
Impairment assessment	—
December 31, 2024	$	24,195

1 Included within Net loss on loan servicing assets in the Consolidated Statements of Income

2 Included within Net gains on sales of loans in the Consolidated Statements of Income


Servicing Assets, at LCM	December 31, 2023
December 31, 2022	$	—
Additions/(removal) of entities consolidating after Conversion to BHC	486
Amortization1	(733)
Additions2	10,636
Impairment assessment	—
December 31, 2023	$	10,389

1 Included within Net loss on loan servicing assets in the Consolidated Statements of Income

2 Included within Net gains on sales of loans in the Consolidated Statements of Income

Fair value and valuation assumption

The following table summarizes the fair value and valuation assumptions related to servicing assets at December 31, 2024 and 2023:


	December 31, 2024								December 31, 2023
			Weighted		Range						Weighted		Range
Unobservable Input	Amount		Average		Minimum		Maximum		Amount		Average		Minimum		Maximum
Servicing assets at FV:	$	22,062							$	29,336
Discount factor1			12.00	%	12.00	%	12.00	%			13.50	%	13.50	%	13.50	%
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	%			19.00	%	19.00	%	19.00	%
Servicing assets at LCM:	24,195								10,389
Discount factor1			12.97	%	12.00	%	13.50	%			13.50	%	13.50	%	13.50	%
Cumulative prepayment rate			34.65	%	22.50	%	75.00	%			29.76	%	22.50	%	75.00	%
Average cumulative default rate			18.90	%	5.00	%	20.00	%			19.14	%	19.00	%	20.00	%
Total	$	46,257							$	39,725

1 Determined based on risk spreads and observable secondary market transactions.

The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of December 31, 2024 and December 31, 2023. 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 December 31, 2024 and December 31, 2023.


	Fair Value as of			Weighted		Range
	December 31, 2024		Unobservable Input	Average		Minimum		Maximum
Assets:
Loans HFI, at FV - accrual	$	302,442	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	$	67,304	Market yields	7.30	%	7.30	%	7.30	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Loans HFS, at FV	$	372,286	Market yields	7.62	%	7.08	%	8.18	%
			Cumulative prepayment rate	59.78	%	50.00	%	70.00	%
			Average cumulative default rate	9.89	%	5.00	%	15.00	%
Joint ventures and other non-control investments	$	57,678	Market yields	8.40	%	8.00	%	12.00	%
			Cost of equity	11.00	%	8.00	%	14.00	%
			Weighted average cost of capital	7.72	%	6.00	%	23.98	%
Servicing assets, at FV1	$	22,062	Market yields	12.00	%	12.00	%	12.00	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	21.00	%	21.00	%	21.00	%
Assets held for sale	$	21,308	Present value factor	90.70	%	89.50	%	93.20	%
			Discount rate	10.23	%	7.27	%	11.71	%
Other real estate owned	$	3,764	Appraised value	N/A		N/A		N/A

Liabilities:
Equity warrants	$	133	Expected volatility	48.00	%	48.00	%	48.00	%
			Dividend yield	6.00	%	6.00	%	6.00	%
			Risk free rate	4.52	%	4.52	%	4.52	%

1 $22.1 million of servicing assets at held at FV and $24.2 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.


	Fair Value as of			Weighted		Range
	December 31, 2023		Unobservable Input	Average		Minimum		Maximum
Assets:
Loans HFI, at FV - accrual	$	421,627	Market yields	7.75	%	7.75	%	7.75	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Loans HFI, at FV - non-accrual	$	48,174	Market yields	7.39	%	7.39	%	7.39	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Loans HFS, at FV	$	118,867	Market yields	6.85	%	6.50	%	7.75	%
			Cumulative prepayment rate	61.03	%	55.60	%	75.00	%
			Average cumulative default rate	20.00	%	20.00	%	20.00	%
Joint ventures and other non-control investments	$	41,227	Market yields	8.02	%	8.00	%	12.00	%
			Cost of equity	12.00	%	10.00	%	14.00	%
			Weighted average cost of capital	8.50	%	7.50	%	9.50	%
	$	360	Cost	N/A		N/A		N/A
Servicing assets, at FV1	$	29,336	Market yields	13.50	%	13.50	%	13.50	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Other real estate owned	$	1,110	Appraised value	N/A		N/A		N/A

Liabilities:
Equity warrants	$	141	Expected volatility	43.00	%	43.00	%	43.00	%
			Dividend yield	5.20	%	5.20	%	5.20	%
			Risk free rate	3.88	%	3.88	%	3.88	%

1 $29.3 million of servicing assets held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS

Schedule of servicing fee income

Servicing fee income earned for the years ended December 31, 2024, 2023 and 2022 was as follows:


	Year Ended December 31,
		2024	2023	2022
Servicing fee income		$20,087	$18,289	$13,698

SERVICING ASSETS - Fair Value and Valuation Assumptions (Details) $ in Thousands	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	$ 46,257	$ 39,725
Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	22,062	29,336
Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	$ 24,195	$ 10,389	$ 0
Weighted Average \| Discount rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1200	0.1350
Weighted Average \| Discount rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1297	0.1350
Weighted Average \| Cumulative prepayment rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Weighted Average \| Cumulative prepayment rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.3465	0.2976
Weighted Average \| Average cumulative default rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2100	0.1900
Weighted Average \| Average cumulative default rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1890	0.1914
Minimum \| Discount rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1200	0.1350
Minimum \| Discount rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1200	0.1350
Minimum \| Cumulative prepayment rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum \| Cumulative prepayment rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum \| Average cumulative default rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2100	0.1900
Minimum \| Average cumulative default rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.0500	0.1900
Maximum \| Discount rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1200	0.1350
Maximum \| Discount rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350	0.1350
Maximum \| Cumulative prepayment rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Maximum \| Cumulative prepayment rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.7500	0.7500
Maximum \| Average cumulative default rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2100	0.1900
Maximum \| Average cumulative default rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2000	0.2000

BORROWINGS - Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 11, 2024	Sep. 16, 2024	May 30, 2024	Dec. 31, 2023	Aug. 31, 2023	Jan. 23, 2023	Dec. 29, 2021	Jan. 31, 2021	Jul. 25, 2019
Debt Instrument [Line Items]
Commitments - Notes	$ 718,505
Total	855,977				$ 878,235
Borrowings	$ 708,041				$ 644,122
Weighted Avg Interest Rate	7.22%				7.04%
Collateralized deposit	$ 2,059,912				$ 1,429,513
Valuation adjustment, FHLB	40				200
Securitization Trusts
Debt Instrument [Line Items]
Collateralized deposit	8,900				14,800
Line of Credit \| Webster Note - MWI
Debt Instrument [Line Items]
Commitments - Notes	54,871				54,871
Borrowings	$ 32,688				$ 36,628
Weighted Avg Interest Rate	7.30%				7.94%
Line of Credit \| Capital One Facilities \| Capital One, SP1
Debt Instrument [Line Items]
Commitments - line of credit	$ 60,000				$ 60,000
Borrowings Outstanding - line of credit	$ 21,192				$ 16,080
Weighted Avg Interest Rate	7.22%				8.20%
Line of Credit \| Deutsche Bank Line of Credit
Debt Instrument [Line Items]
Commitments - line of credit	$ 120,000				$ 50,000
Borrowings Outstanding - line of credit	$ 54,036				$ 6,799
Weighted Avg Interest Rate	7.57%				10.04%
Line of Credit \| One Florida line of credit - SP3
Debt Instrument [Line Items]
Commitments - line of credit	$ 30,000				$ 30,000
Borrowings Outstanding - line of credit	$ 23,011				$ 257
Weighted Avg Interest Rate	8.50%				9.50%
Secured Debt \| FHLB Advances
Debt Instrument [Line Items]
Commitments - Notes	$ 20,000				$ 113,891
Borrowings	$ 15,330				$ 23,184
Weighted Avg Interest Rate	2.19%				2.13%
Secured Debt \| Securitization Trusts
Debt Instrument [Line Items]
Commitments - Notes	$ 189,231				$ 296,223
Borrowings	$ 186,635				$ 292,112
Weighted Avg Interest Rate	7.32%				7.84%
Medium-term Notes \| 2024 Notes
Debt Instrument [Line Items]
Commitments - Notes					$ 38,250
Borrowings					$ 38,124			$ 78,250
Weighted Avg Interest Rate	5.75%				5.75%					5.75%
Medium-term Notes \| 2025 5.00% Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 30,000				$ 30,000
Borrowings	$ 29,913				$ 29,563
Weighted Avg Interest Rate	5.00%				5.00%
Medium-term Notes \| 2025 8.125% Notes
Debt Instrument [Line Items]
Commitments - Notes					$ 50,000
Borrowings					$ 49,433
Weighted Avg Interest Rate	8.125%	8.125%			8.125%		8.125%
Medium-term Notes \| 2026 Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 115,000				$ 115,000
Borrowings	$ 114,282				$ 113,564
Weighted Avg Interest Rate	5.50%				5.50%				5.50%
Medium-term Notes \| 2027 Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 50,000
Borrowings	$ 49,944
Weighted Avg Interest Rate	8.125%
Medium-term Notes \| 2028 Notes (8.00%)
Debt Instrument [Line Items]
Commitments - Notes	$ 40,000				$ 40,000
Borrowings	$ 38,726				$ 38,378
Weighted Avg Interest Rate	8.00%				8.00%	8.00%
Medium-term Notes \| 2029 8.50% Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 71,875
Borrowings	$ 69,622
Weighted Avg Interest Rate	8.50%			8.50%	8.50%
Medium-term Notes \| 2029 8.625% Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 75,000
Borrowings	$ 72,662
Weighted Avg Interest Rate	8.625%		8.625%		8.625%

LOANS - Allowance for Credit Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 12,574	$ 0
Adjustment to Beginning Balance due to PCD marks		0	$ 870
Charge offs	(8,072)	0
Recoveries	0	0
Provision for Credit Losses	25,731	11,704
Ending balance	30,233	12,574
Provision for credit losses relating to unfunded commitments	500
CRE, at amortized cost, net of deferred fees and costs
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,408	0
Adjustment to Beginning Balance due to PCD marks		0	774
Charge offs	(236)	0
Recoveries	0	0
Provision for Credit Losses	258	634
Ending balance	1,430	1,408
C&I
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	314	0
Adjustment to Beginning Balance due to PCD marks		0	96
Charge offs	0	0
Recoveries	0	0
Provision for Credit Losses	1	218
Ending balance	315	314
SBA 7(a)
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	10,852	0
Adjustment to Beginning Balance due to PCD marks		0	$ 0
Charge offs	(7,836)	0
Recoveries		0
Provision for Credit Losses	25,472	10,852
Ending balance	$ 28,488	$ 10,852

SEGMENTS

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

SEGMENTS

NOTE 22—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 the Corporate & Other segment.

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 five reportable segments for management reporting purposes with their operating and financials 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 five 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 Non-Bank Lending below) and originates and services SBA 504 loans, C&I loans, CRE loans and ABL loans. In addition, Newtek Bank offers depository services.

Alternative Lending

Alternative Lending includes NALH and its subsidiaries as well as NH6. The Company has originated loans under its alternative lending program since 2019. Prior to July 1, 2024, the Company originated ALP loans with the intent to sell to a JV. While the Company continues to source JV partners to participate in this program, the Company could also originate ALP loans designated as HFI. The Company does not expect any significant changes to the underwriting or terms of loans in its ALP.

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 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.

Technology

NTS provides website hosting, web design and development, dedicated server hosting, cloud hosting, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services including consulting and implementing technology solutions for enterprise and commercial clients across the U.S. As a result of commitments made to the Federal Reserve in connection with the Acquisition, the Company has divested of NTS on January 2, 2025. As a result of the Company’s entry into the NTS Sale Agreement and the Company’s completion of the NTS Sale, the Company has reported NTS as Held for Sale as of December 31, 2024 and will not be reported as a segment in future filings given the sale of NTS. See NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE. See NOTE 25—SUBSEQUENT EVENTS: Sale of NTS.

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.

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


As of and for the year ended December 31, 2024
	Banking				Alternative Lending				Technology				NSBF				Payments				Corporate & Other				Consolidated
	Segment		Elim		Segment		Elim		Segment		Elim		Segment		Elim		Segment		Elim		Segment		Elim
Interest income	$	69,576	$	(2)	$	15,073	$	(12)	$	6	$	(6)	$	36,655	$	(421)	$	2,362	$	(2,310)	$	2,364	$	(1,867)	$	121,418
Interest expense	29,855		(643)		3,539		—		—		—		21,097		—		2,984		(77)		28,256		(3,898)		81,113
Net interest income/(loss)	39,721		641		11,534		(12)		6		(6)		15,558		(421)		(622)		(2,233)		(25,892)		(2,233)		40,305
Provision for loan credit losses	26,216		—		—		—		—		—		—		—		—		—		—		—		26,216
Net interest income after provision for loan credit losses	13,505		641		11,534		(12)		6		(6)		15,558		(421)		(622)		(2,233)		(25,892)		(2,233)		14,089
Noninterest income	136,080		(28,068)		55,824		—		27,020		(7,139)		(23,410)		—		48,852		(2,028)		65,242		(55,061)		217,312
Technology services expense	—		—		—		—		12,575		(314)		—		—		—		—		—		—		12,261
Electronic payment processing expense	—		—		—		—		—		—		—		—		21,046		(1,168)		—		—		19,878
Salaries and employee benefits expense	45,346		(2,531)		1,202		(1,202)		8,690		—		219		682		7,188		11		15,285		3,041		77,931
Professional services expense	3,941		—		165		—		678		—		2,482		—		684		—		7,863		—		15,813
Other loan origination and maintenance expense	20,385		(14,060)		6,095		(4,044)		38		—		16,069		(11,020)		—		—		402		(95)		13,770
Depreciation and amortization	182		—		—		—		1,062		—		114		—		356		—		70		—		1,784
Other general and administrative costs	12,426		(2,548)		172		—		3,794		(271)		1,948		(11)		2,757		(1,769)		7,690		(2,916)		21,272
Income before taxes	67,305		(8,288)		59,724		5,234		189		(6,560)		(28,684)		9,928		16,199		(1,335)		8,040		(57,324)		68,692
Income tax expense (benefit)	15,308		(15,308)		—		—		103		(103)		—		—		—		—		2,428		15,411		17,839
Net income	$	51,997	$	7,020	$	59,724	$	5,234	$	86	$	(6,457)	$	(28,684)	$	9,928	$	16,199	$	(1,335)	$	5,612	$	(72,735)	$	50,853

Other Segment Disclosures:
Assets	$	1,238,899	$	(29,932)	$	439,101	$	(97,352)	$	23,317	$	(1,393)	$	479,896	$	(55,488)	$	60,347	$	(36,707)	$	644,867	$	(605,643)	$	2,059,912
Goodwill & intangible assets	$	938			$	—			$	—			$	—			$	13,814			$	—			$	14,752
Amortization of intangible assets	$	176			$	—			$	350			$	—			$	13			$	—			$	539


As of and for the year ended December 31, 2023
	Banking				Alternative Lending				Technology				NSBF				Payments				Corporate & Other				Consolidated
	Segment		Elim		Segment		Elim		Segment		Elim		Segment		Elim		Segment		Elim		Segment		Elim
Interest income	$	34,349	$	—	$	8,198	$	(3)	$	—	$	—	$	50,823	$	(75)	$	2,087	$	(2,053)	$	3,427	$	(2,380)	$	94,373
Interest expense	16,625		(99)		4,035		—		246		(246)		26,796		—		3,577		(132)		20,971		(4,034)		67,739
Net interest income/(loss)	17,724		99		4,163		(3)		(246)		246		24,027		(75)		(1,490)		(1,921)		(17,544)		1,654		26,634
Provision for loan credit losses	11,704		—		—		—		—		—		—		—		—		—		—		—		11,704
Net interest income after provision for loan credit losses	6,020		99		4,163		(3)		(246)		246		24,027		(75)		(1,490)		(1,921)		(17,544)		1,654		14,930
Noninterest income	92,129		(26,091)		12,278		—		31,692		(6,660)		25,142		—		46,422		(2,893)		79,781		(75,028)		176,772
Technology services expense	—		—		—		—		14,794		(522)		—		—		—		—		—		—		14,272
Electronic payment processing expense	—		—		—		—		—		—		—		—		19,680		(1,353)		—		—		18,327
Salaries and employee benefits expense	35,385		—		—		—		8,989		—		973		—		7,152		—		13,209		—		65,708
Professional services expense	2,903		—		294		—		468		—		1,508		—		660		—		7,244		—		13,077
Other loan origination and maintenance expense	9,373		(7,133)		2,222		(1,469)		11		—		24,327		(18,100)		—		—		273		(71)		9,433
Loss on extinguishment of debt	—		—		—		—		—		—		271		—		—		—		—		—		271
Depreciation and amortization	208		—		—		—		1,498		—		123		—		1,021		—		34		—		2,884
Other general and administrative costs	10,506		(2,266)		117		—		4,090		(236)		4,906		(24)		3,087		(1,910)		5,872		(1,785)		22,357
Income before taxes	39,774		(16,593)		13,808		1,466		1,596		(5,656)		17,061		18,049		13,332		(1,551)		35,605		(71,518)		45,373
Income tax expense (benefit)	11,647		—		(150)		—		229		—		—		—		1,178		—		(14,860)		—		(1,956)
Net income	$	28,127	$	(16,593)	$	13,958	$	1,466	$	1,367	$	(5,656)	$	17,061	$	18,049	$	12,154	$	(1,551)	$	50,465	$	(71,518)	$	47,329

Other Segment Disclosures:
Assets	$	683,202	$	(29,136)	$	196,062	$	(51,820)	$	23,403	$	(884)	$	633,206	$	(97,683)	$	51,819	$	(27,154)	$	529,941	$	(481,443)	$	1,429,513
Goodwill & intangible assets	$	1,114			$	—			$	15,179			$	—			$	13,827			$	—			$	30,120
Amortization of intangible assets	$	197			$	—			$	466			$	—			$	805			$	—			$	1,468

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

BUSINESS COMBINATIONS - Purchase Price (Details) - USD ($) $ in Thousands	Jan. 06, 2023	Dec. 31, 2024	Dec. 31, 2023
Fair value of assets acquired:
Goodwill		$ 14,085	$ 25,885
NBNYC
Business Acquisition [Line Items]
Purchase price consideration	$ 21,281
Fair value of assets acquired:
Cash and due from banks	29,138
Interest-bearing deposits in banks	3,284
Total cash and cash equivalents	32,422
Available-for-sale securities (at fair value)	5,004
Other investments	1,226
Loans receivable	159,155
Federal Reserve Bank stock, at cost	54
Federal Home Loan Bank stock, at cost	1,470
Accrued interest receivable	353
Deferred income taxes	495
Goodwill	271
Core deposit intangible	1,040
Other assets	399
Total assets	201,889
Deposits:
Demand	21,878
Savings and NOW and Money Market	10,975
Certificates of deposit	104,162
Total deposits	137,015
Advances from the Federal Home Loan Bank	27,817
Accrued expenses and other liabilities	15,776
Total liabilities	$ 180,608

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 6,941	$ 15,398
Restricted cash	28,226	30,919
Interest bearing deposits in banks	346,207	137,689
Total cash and cash equivalents	381,374	184,006
Debt securities available-for-sale, at fair value	23,916	32,171
Loans held for sale, at fair value	372,286	118,867
Loans held for sale, at LCM	58,803	56,607
Loans held for investment, at fair value	369,746	469,801
Loans held for investment, at amortized cost, net of deferred fees and costs	621,651	336,305
Allowance for credit losses	(30,233)	(12,574)
Loans held for investment, at amortized cost, net	591,418	323,731
Federal Home Loan Bank and Federal Reserve Bank stock	3,585	3,635
Settlement receivable	52,465	62,230
Goodwill and intangibles	14,752	30,120
Right of use assets	5,688	5,701
Deferred tax asset, net	0	5,230
Servicing assets, at fair value	22,062	29,336
Servicing assets, at LCM	24,195	10,389
Other assets	60,636	56,102
Assets held for sale	21,308	0
Total assets	2,059,912	1,429,513
Deposits:
Noninterest-bearing	11,142	10,053
Interest-bearing	961,910	453,452
Total deposits	973,052	463,505
Borrowings	708,041	644,122
Dividends payable	5,233	4,792
Lease liabilities	6,498	6,952
Deferred tax liabilities, net	2,244	0
Due to participants	21,532	23,796
Accounts payable, accrued expenses and other liabilities	40,806	37,300
Liabilities directly associated with assets held for sale	6,224	0
Total liabilities	1,763,630	1,180,467
Commitment and contingencies (Note 15)
Shareholders' Equity:
Preferred stock (par value $0.02 per share; authorized 20 shares, 20 shares issued and outstanding)	19,738	19,738
Common stock (par value $0.02 per share; authorized 199,980 shares, 26,291 and 24,680 shares issued and outstanding, respectively)	526	492
Additional paid-in capital	218,266	200,913
Retained earnings	57,773	28,051
Accumulated other comprehensive income (loss), net of income taxes	(21)	(148)
Total shareholders' equity	296,282	249,046
Total liabilities and shareholders' equity	2,059,912	1,429,513
Joint Ventures and Other Non-Control Investments
ASSETS
Investments	$ 57,678	$ 41,587

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Commitments to Extend Credit
Other Commitments [Line Items]
Commitment	$ 107,132	$ 125,415
SBA investment
Other Commitments [Line Items]
Commitment	25,032	20,365
504
Other Commitments [Line Items]
Commitment	72,557	81,023
ALP
Other Commitments [Line Items]
Commitment	0	10,877
C&I
Other Commitments [Line Items]
Commitment	$ 9,542	$ 13,150

DERIVATIVE INSTRUMENTS - Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Appreciation/(Depreciation)	$ 1,344	$ (699)	$ 183
Realized Gain/(Loss)			$ 445
Foreign Exchange Future
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Appreciation/(Depreciation)	1,344	(699)
Realized Gain/(Loss)	$ (51)	$ 834

- Definition

The net change in the difference between the fair value and the carrying value, or in the comparative fair values, of derivative instruments, including options, swaps, futures, and forward contracts, held at each balance sheet date, that was included in earnings for the period.

+ References + Details

BENEFIT PLANS

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

BENEFIT PLANS

NOTE 20—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.

For the years ended December 31, 2024, 2023 and 2022, the Company matched 50% of the first 2% of employee contributions, resulting in $0.5 million, $0.4 million and $0.1 million in expense, respectively.

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.

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 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 2015 Stock Incentive Plan, which was terminated by the Board in April 2023. The following table summarizes the restricted stock issuances under the 2015 and 2023 Stock Incentive Plans, net of shares forfeited, if any:


	2023 Plan2	2015 Plan
Restricted Stock authorized under the plan1	3.0 million	1.5 million
Net restricted stock (granted)/forfeited during:
Year ended December 31, 2020 and prior	—	(223)
Year ended December 31, 2021	—	(215)
Year ended December 31, 2022	—	(251)
Year ended December 31, 2023	(82)	28
Year ended December 31, 2024	(497)	—
Total net restricted stock (granted)/forfeited	(579)	(661)

1 No stock options were granted under the 2015 or 2023 Stock Incentive Plans.

2 The 2023 Stock Incentive Plan provides for an initial share reserve of up to 3.0 million shares of Common Stock.

Awards of restricted stock granted under the 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 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 December 31, 2024 and December 31, 2023 are outlined below:


	December 31, 2024	December 31, 2023
Shares outstanding related to grants of restricted stock awards	771	345
Weighted average grant date fair value of awards	$14.51	$19.18
Additional shares outstanding related to dividends on awards	59	44

As of December 31, 2024 and December 31, 2023, the Company’s total unrecognized compensation expense related to unvested shares of restricted stock granted was as follows.

December 31, 2024

December 31, 2023

Unrecognized compensation expense on unvested awards

$5,929

$3,610

Weighted-average period of unrecognized compensation expense

1.0 year

1.7 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 of Directors, 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.

The following table summarizes the Company’s ESPP activity from inception through December 31, 2024:


	Year Ended December 31, 2024								Year Ended December 31, 2023
	Offering Period						Total		Offering Period		Total
Commencement date	10/1/2024		4/1/2024		10/1/2023				10/1/2023
End date	12/15/2024		9/15/2024		3/15/2024				12/15/2023
Shares purchased	5		10		5		20		4		4
Weighted average share price	$	11.03	$	10.21	$	9.83	$	10.32	$	13.05	$	13.05
Total purchased, net of discount	$	55	$	101	$	51	$	207	$	51	$	51

The ESPP share activity is as follows:


						Shares
ESPP shares authorized under the plan						200
ESPP shares purchased during:
Year ended December 31, 2023						(4)
Year ended December 31, 2024						(20)
Available for future purchases, December 31, 2024						176

The Company’s total stock-based compensation expense included within Salaries and employee benefits expense in the Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022 is summarized below:


	Year Ended December 31,
		2024		2023		2022
Restricted stock awards		$	4,040	$	2,828	$	2,511
ESPP		22		—		—
Total compensation cost recognized for stock-based compensation plans		$	4,062	$	2,828	$	2,511

ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE

NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE:

The net assets of our technology segment, which consisted of NTS, are represented as held-for-sale as of December 31, 2024 as a result of our entry into the NTS Sale Agreement and our divestiture of NTS on January 2, 2025 (consistent with our commitments to the Federal Reserve). Refer to “NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION” - Sale of NTS.

The following tables present the assets classified as held for sale and the liabilities directly associated with assets classified as held for sale as of December 31, 2024:


ASSETS			LIABILITIES
Held for Sale			Directly Associated with Assets Held for Sale
Cash and due from banks	$	325	Lease liabilities	$	685
Goodwill	11,800		Deferred tax liabilities, net	2,975
Intangibles	3,030		Accounts payable, accrued expenses and other liabilities	2,564
Right of use assets	619
Other assets	6,150
Valuation allowance1	(616)
	$	21,308		$	6,224

1 The associated expense is included in Other general and administrative costs in the consolidated statements of operations for the year ended December 31, 2024.

Goodwill

The goodwill in the technology segment was generated from acquisitions by the legal entities within that segment prior to the consolidation of the those entities into NewtekOne following the 2023 Acquisition.

Intangibles

The intangible asset for customer lists within the technology segment existed prior to the consolidation of the technology segment into NewtekOne following the Acquisition.


	As of December 31, 2024
	Gross carrying Amount		Accumulated Amortization		Net Carrying amount
Technology Customer Lists	$	6,525	$	(3,495)	$	3,030

Right of use assets and lease liabilities

Under ASC 842, operating lease expense is generally recognized on a straight-line basis over the term of the lease. The Company has entered into operating lease agreements for office space with remaining contractual terms up to 0.7 year, some of which include renewal options. These renewal options are not considered in the remaining lease term unless it is reasonably certain the Company will exercise such options. The operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As the rate implicit in the leases generally is not readily determinable for our operating leases, the discount rates used to determine the present value of our lease liability are based on our incremental borrowing rate at the lease commencement date and commensurate with the remaining lease term. Our incremental borrowing rate for a lease is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are excluded from our weighted-average remaining lease term.

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

NOTE 8—GOODWILL AND INTANGIBLE ASSETS:

Goodwill

The following table summarizes changes in the carrying amount of goodwill:


	December 31, 2024		December 31, 2023
Banking	$	271	$	271
Payments	13,814		13,814
Technology1	—		11,800
Total goodwill	$	14,085	$	25,885

1 The technology goodwill is classified as Held for Sale in anticipation of the NTS Sale, which was completed on January 2, 2025. Refer to NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE.

Banking:

Payments and Technology:

The goodwill in the payments and technology segments was generated from acquisitions by the legal entities within those segments prior to the consolidation of the those entities into NewtekOne following the Acquisition.

Intangible Assets

The following table summarizes intangible assets:


	At December 31, 2024						At December 31, 2023
	Gross carrying Amount		Accumulated Amortization		Net Carrying amount		Gross carrying Amount		Accumulated Amortization		Net Carrying amount
Banking - Core Deposits	$	1,040	$	(373)	$	667	$	1,040	$	(197)	$	843
Payments - Customer Lists	—		—		—		8,575		(8,562)		13
Technology - Customer Lists¹	—		—		—		6,525		(3,146)		3,379
Total intangible assets	$	1,040	$	(373)	$	667	$	16,140	$	(11,905)	$	4,235

1 The technology customer lists are classified as Held for Sale in anticipation of the NTS Sale, which was completed on January 2, 2025. Refer to NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE.

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.

Customer Lists. The intangible asset for customer lists were within the technology and payments segments and existed prior to the consolidation of those segments into NewtekOne following the Acquisition. The payments customer list has been disposed of. The technology customer lists are classified as Assets held for sale as of December 31, 2024.

Amortization expense for the years ended December 31, 2024, 2023, and 2022 is as follows and is included in Depreciation and amortization on the Consolidated Statements of Income. There was no amortization expense for the year ended December 31, 2022 since there were no intangible assets prior to the Acquisition.


	Years Ended December 31,
		2024	2023	2022
Amortization expense		$539	$1,468	$—

The remaining estimated aggregate future amortization expense for intangible assets as of December 31, 2024 is as follows:


	Amortization Expense
2025	$	156
2026	135
2027	114
2028	94
2029	73
Thereafter	95
Total	$	667

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The following table summarizes changes in the carrying amount of goodwill:


	December 31, 2024		December 31, 2023
Banking	$	271	$	271
Payments	13,814		13,814
Technology1	—		11,800
Total goodwill	$	14,085	$	25,885

Schedule of intangible assets

The following table summarizes intangible assets:


	At December 31, 2024						At December 31, 2023
	Gross carrying Amount		Accumulated Amortization		Net Carrying amount		Gross carrying Amount		Accumulated Amortization		Net Carrying amount
Banking - Core Deposits	$	1,040	$	(373)	$	667	$	1,040	$	(197)	$	843
Payments - Customer Lists	—		—		—		8,575		(8,562)		13
Technology - Customer Lists¹	—		—		—		6,525		(3,146)		3,379
Total intangible assets	$	1,040	$	(373)	$	667	$	16,140	$	(11,905)	$	4,235


	Years Ended December 31,
		2024	2023	2022
Amortization expense		$539	$1,468	$—

Intangible asset amortization schedule

The remaining estimated aggregate future amortization expense for intangible assets as of December 31, 2024 is as follows:


	Amortization Expense
2025	$	156
2026	135
2027	114
2028	94
2029	73
Thereafter	95
Total	$	667

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-2

+ Details

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2024

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 18—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.


	Year Ended December 31,
		2024		2023		2022

		Financial Holding Company		Financial Holding Company		Investment Company
Basic earnings per share:
Net income available to common shareholders		$	49,253	$	45,875	$	32,311
Weighted-average basic shares outstanding		24,945		24,263		24,198
Basic earnings per share		$	1.97	$	1.89	$	1.34
Diluted earnings per share:
Net income, for diluted earnings per share		$	49,253	$	45,875	$	32,311
Add: Preferred dividends on dilutive Series A convertible preferred stock¹		—		—		—
Net income, for diluted earnings per share		49,253		45,875		32,311
Total weighted-average basic shares outstanding		24,945		24,263		24,198
Add effect of dilutive restricted stock awards²		241		85		—

Total weighted-average diluted shares outstanding³		25,186		24,348		24,198
Diluted earnings per share		$	1.96	$	1.88	$	1.34
Anti-dilutive warrants, restricted stock awards, and Series A convertible preferred stock		998		1,153		—

1 For periods presented, the Series A convertible preferred stock was antidilutive and, therefore, the preferred dividends have not been added back to the numerator of Net income, for diluted earnings per share.

2 Incremental diluted shares from restricted stock awards under the treasury stock method.

3 For the year ended ended December 31, 2024 and December 31, 2023, the Warrants were not included in the diluted share count because the results would have been anti-dilutive under the if-converted method.

BUSINESS COMBINATIONS - Loans Purchased (Details) - NBNYC $ in Thousands	Jan. 06, 2023 USD ($)
Business Acquisition [Line Items]
Par value (unpaid principal balance)	$ 159,155
Financial Asset Acquired with Credit Deterioration
Business Acquisition [Line Items]
Par value (unpaid principal balance)	42,443
ACL at acquisition	(870)
Non-credit (discount)	(1,559)
Fair Value	$ 40,014

NEWTEKONE, INC. - PARENT COMPANY ONLY - Cash Flow Statement (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net income	$ 49,253	$ 45,875	$ 32,311
Provisions for deferred income taxes	10,403	(4,800)	6,464
Net change in other liabilities	0	0	6
Net change in other asset	(13,660)	7,432	1,816
Net cash used in operating activities	(153,014)	(169,219)	(62,418)
Cash flows from investing activities:
Purchases of held-to-maturity and available-for-sale securities	(33,021)	(27,167)	0
Sales and maturities of held-to-maturity and available-for-sale securities	41,460	0	0
Net increase in loans held for investment, at cost	(278,539)	(169,003)	0
Net cash used in investing activities	(209,051)	(172,235)	(11)
Cash flows from financing activities:
Proceeds from issuance of common stock	13,818	0	2,019
Proceeds from issuance of preferred stock	0	19,493	0
Payment to repurchase common stock	(402)	0	0
Dividends paid	(20,252)	(14,147)	(64,544)
Net cash provided by financing activities	560,897	344,974	1,175
Net (decrease) increase in cash and restricted cash	198,832	3,520	(61,254)
Cash and restricted cash—beginning of period (Note 2)	184,006	125,606	186,860
Cash and restricted cash—end of period (Note 2)	381,374	184,006	125,606
Parent Company
Cash flows from operating activities:
Net income	50,853	62,817
Provisions for deferred income taxes	13,110	(5,814)
Gain (loss) on sale of assets	(1,135)	539
Equity in Undistributed (earnings) losses of subs	(57,103)	(26,813)
Net change in other liabilities	(35,489)	(40,414)
Net change in other asset	5,215	(10,759)
Other, net	6,634	7,570
Net cash used in operating activities	(17,915)	(12,874)
Cash flows from investing activities:
Purchases of held-to-maturity and available-for-sale securities	(19,899)	0
Sales and maturities of held-to-maturity and available-for-sale securities	20,000	0
Payments for investments in and advances to subsidiaries	(176,333)	(96,265)
Net increase in loans held for investment, at cost	95,543	0
Outlays for business acquisitions	0	(21,322)
Other, net	39	14
Net cash used in investing activities	(80,650)	(117,573)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	154,050	90,000
Repayment of long-term debt	(38,250)	0
Proceeds from issuance of common stock	14,036	0
Proceeds from issuance of preferred stock	0	19,493
Payment to repurchase common stock	(711)	0
Dividends paid	(20,252)	(14,147)
Retirement of common shares	(5,056)	(2,826)
Net cash provided by financing activities	103,817	92,520
Net (decrease) increase in cash and restricted cash	5,252	(37,927)
Cash and restricted cash—beginning of period (Note 2)	13,871	51,798
Cash and restricted cash—end of period (Note 2)	$ 19,123	$ 13,871	$ 51,798

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 10—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 December 31, 2024 and December 31, 2023:


	Fair Value Measurements at December 31, 2024
	Total		Level 1		Level 2		Level 3
Assets:
Debt securities available-for-sale
U.S. Treasury notes	$	23,916	$	23,916	$	—	$	—

Loans held for sale, at fair value	372,286		—		—		372,286
Loans held for investment, at fair value	369,746		—		—		369,746
Other real estate owned 1	3,764		—		—		3,764
Servicing assets2	22,062		—		—		22,062
Joint ventures and other non-control investments	57,678		—		—		57,678
Assets held for sale3	21,308		—		—		21,308
Derivative instruments1,4	715		—		715		—
Total assets measured at fair value	$	871,475	$	23,916	$	715	$	846,844
Liabilities:
Equity warrants4	$	133	$	—	$	—	$	133
Total liabilities measured at fair value	$	133	$	—	$	—	$	133

1 Included in Other assets on the Consolidated Statements of Financial Condition.

2 $22.1 million of servicing assets at held at FV and $24.2 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.

3 Non-recurring

4 Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.


	Fair Value Measurements at December 31, 2023
	Total		Level 1		Level 2		Level 3
Assets:
Debt securities available-for-sale
U.S. Treasury notes	$	29,305	$	29,305	$	—	$	—
Government agency debentures	2,866		—		2,866		—
Loans held for sale, at fair value	118,867		—		—		118,867
Loans held for investment, at fair value	469,801		—		—		469,801
Other real estate owned 1	1,110		—		—		1,110
Servicing assets, at fair value2	29,336		—		—		29,336
Joint ventures and other non-control investments	41,587		—		—		41,587
Total assets measured at fair value	$	692,872	$	29,305	$	2,866	$	660,701
Liabilities:
Equity warrants3	$	141	$	—	$	—	$	141
Derivative instruments3,4	630		—		630		—
Total liabilities measured at fair value	$	771	$	—	$	630	$	141

1 Included in Other assets on the Consolidated Statements of Financial Condition.

2 $29.3 million of servicing assets held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS

3 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.

4 Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.

The following tables represents the changes in the investments, servicing assets and liabilities measured at fair value using Level 3 inputs for the years ended December 31, 2024 and 2023:


	Year Ended December 31, 2024
	Loans HFI, at FV		Loans HFS, at FV		Joint Ventures and Other Non-Control Investments		Servicing Assets, at FV		Assets HFS		Warrant Liabilities1		Other Real Estate Owned2
Fair value, December 31, 2023	$	469,801	$	118,867	$	41,587	$	29,336	$	—	$	141	$	1,110
Reclasses between loans at FV and LCM	263		4,077		—		—		—		—		—
Reclasses between loans HFS and HFI	—		(599)		—		—		—		—		—
Sales	(2,586)		(179,949)		—		—		—		—		(1,446)
Principal payments received	(71,791)		(16,178)		—		—		—		—		—
Foreclosed real estate acquired	(4,569)		—		—		—		—		—		4,569
SBA loans, funded	122		26,863		—		—		—		—		—
ALP loans, funded	—		283,822		—		—		—		—		—
Mortgage loans, funded	—		103,838		—		—		—		—		—
Additions	—		—		—		14		21,924		—		—
Purchases and repurchases of loans	4,851		—		—		—		—		—		—
Capital contributions/(distributions)	—		—		5,379		—		—		—		—
Change in valuation due to:
Changes in valuation inputs or assumptions	597		31,569		10,712		924		(616)		(8)		(469)
Other factors	(26,942)		(23)		—		(8,212)		—		—		—
Fair value, December 31, 2024	$	369,746	$	372,287	$	57,678	$	22,062	$	21,308	$	133	$	3,764

1 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.

2 Included in Other assets on the Consolidated Statements of Financial Condition.


	Year Ended December 31, 2023
	Loans HFI, at FV		Loans HFS, at FV		Controlled Investments		Joint Ventures and Other Non-Control Investments		Servicing Assets, at FV		Warrant Liabilities1		Other Real Estate Owned2
Fair value, December 31, 2022	$	505,268	$	19,171	$	259,217	$	24,382	$	30,268	$	—	$	3,529
Additions/(removal) of entities consolidating after Conversion to BHC	—		69,745		(259,217)		—		—		—		—
Reclasses between loans at FV and LCM	5,879		(28,513)		—		—		—		—		—
Sales	(23,783)		(180,784)		—		—		—		—		(4,248)
Principal payments received	(77,966)		(6,233)		—		—		—		—		—
Foreclosed real estate acquired	(2,978)				—		—		—		—		2,978
SBA loans, funded	38,889		167,124		—		—		—		—		—
ALP loans, funded	—		69,835		—		—		—		—		—
Additions	—		—		—		—		2,617		311		—
Purchases and repurchases of loans	9,728		5,279		—		—		—		—		—
Capital contributions/(distributions)	—		—		—		13,986		—		—		—
Change in valuation due to:
Changes in valuation inputs or assumptions	13,515		3,931		—		3,219		1,847		(170)		—
Other factors	1,249		(688)		—		—		(5,396)		—		(1,149)
Fair Value, December 31, 2023	$	469,801	$	118,867	$	—	$	41,587	$	29,336	$	141	$	1,110

1 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.

2 Included in Other assets on the Consolidated Statements of Financial Condition.


	Fair Value as of			Weighted		Range
	December 31, 2024		Unobservable Input	Average		Minimum		Maximum
Assets:
Loans HFI, at FV - accrual	$	302,442	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	$	67,304	Market yields	7.30	%	7.30	%	7.30	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Loans HFS, at FV	$	372,286	Market yields	7.62	%	7.08	%	8.18	%
			Cumulative prepayment rate	59.78	%	50.00	%	70.00	%
			Average cumulative default rate	9.89	%	5.00	%	15.00	%
Joint ventures and other non-control investments	$	57,678	Market yields	8.40	%	8.00	%	12.00	%
			Cost of equity	11.00	%	8.00	%	14.00	%
			Weighted average cost of capital	7.72	%	6.00	%	23.98	%
Servicing assets, at FV1	$	22,062	Market yields	12.00	%	12.00	%	12.00	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	21.00	%	21.00	%	21.00	%
Assets held for sale	$	21,308	Present value factor	90.70	%	89.50	%	93.20	%
			Discount rate	10.23	%	7.27	%	11.71	%
Other real estate owned	$	3,764	Appraised value	N/A		N/A		N/A

Liabilities:
Equity warrants	$	133	Expected volatility	48.00	%	48.00	%	48.00	%
			Dividend yield	6.00	%	6.00	%	6.00	%
			Risk free rate	4.52	%	4.52	%	4.52	%

1 $22.1 million of servicing assets at held at FV and $24.2 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.


	Fair Value as of			Weighted		Range
	December 31, 2023		Unobservable Input	Average		Minimum		Maximum
Assets:
Loans HFI, at FV - accrual	$	421,627	Market yields	7.75	%	7.75	%	7.75	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Loans HFI, at FV - non-accrual	$	48,174	Market yields	7.39	%	7.39	%	7.39	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Loans HFS, at FV	$	118,867	Market yields	6.85	%	6.50	%	7.75	%
			Cumulative prepayment rate	61.03	%	55.60	%	75.00	%
			Average cumulative default rate	20.00	%	20.00	%	20.00	%
Joint ventures and other non-control investments	$	41,227	Market yields	8.02	%	8.00	%	12.00	%
			Cost of equity	12.00	%	10.00	%	14.00	%
			Weighted average cost of capital	8.50	%	7.50	%	9.50	%
	$	360	Cost	N/A		N/A		N/A
Servicing assets, at FV1	$	29,336	Market yields	13.50	%	13.50	%	13.50	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Other real estate owned	$	1,110	Appraised value	N/A		N/A		N/A

Liabilities:
Equity warrants	$	141	Expected volatility	43.00	%	43.00	%	43.00	%
			Dividend yield	5.20	%	5.20	%	5.20	%
			Risk free rate	3.88	%	3.88	%	3.88	%

1 $29.3 million of servicing assets held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS

Estimated Fair Value of Other Financial Instruments

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:


	December 31, 2024
	Carrying Amount		Fair Value Amount by Level:						Total Fair Value
			Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	6,941	$	6,941	$	—	$	—	$	6,941
Restricted cash	28,226		28,226		—		—		28,226
Interest bearing deposits in banks	346,207		346,207		—		—		346,207
Debt securities available-for-sale, at FV	23,916		23,916		—		—		23,916
Loans HFS, at FV	372,286		—		—		372,286		372,286
Loans HFS, at LCM	58,803		—		—		58,856		58,856
Loans HFI, at FV	369,746		—		—		369,746		369,746
Loans HFI, at amortized cost, net of deferred fees and costs	621,651		—		—		668,687		668,687
Federal Home Loan Bank and Federal Reserve Bank stock	3,585		—		3,585		—		3,585
Joint ventures and other non-control investments, at FV	57,678		—		—		57,678		57,678
Financial Liabilities:
Time deposits	409,251		—		410,442		—		410,442
Borrowings	708,041		—		306,549		413,818		720,367

	December 31, 2023
	Carrying Amount		Fair Value Amount by Level:						Total Fair Value
			Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	15,398	$	15,398	$	—	$	—	$	15,398
Restricted cash	30,919		30,919		—		—		30,919
Interest bearing deposits in banks	137,689		137,689		—		—		137,689
Debt securities available-for-sale, at FV	32,171		29,305		2,866		—		32,171
Loans HFS, at FV	118,867		—		—		118,867		118,867
Loans HFS, at LCM	56,607		—		—		56,733		56,733
Loans HFI, at FV	469,801		—		—		469,801		469,801
Loans HFI, at amortized cost, net of deferred fees and costs	336,305		—		—		337,133		337,133
Federal Home Loan Bank and Federal Reserve Bank stock	3,635		—		3,635		—		3,635
Joint ventures and other non-control investments, at FV	41,587		—		—		41,587		41,587
Financial Liabilities:
Time deposits	167,041		—		168,542		—		168,542
Borrowings	644,122		—		187,555		454,239		641,794

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details

DEPOSITS - Maturities (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Banking and Thrift, Interest [Abstract]
Year one	$ 351,906
Year two	36,347
Year three	20,180
Year four	680
Year five	138
Thereafter	0
Total time deposits	$ 409,251

SHAREHOLDERS' EQUITY - Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Subsidiary, Sale of Stock [Line Items]
Shares repurchased (in shares)	30	0	0
Net weighted average price per share (in dollars per share)	$ 13.35	$ 0	$ 0
Net proceeds	$ 402	$ 0	$ 0

- Definition

Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

- Definition

Equity impact of the value of stock that has been repurchased during the period and has not been retired and is not held in treasury. Some state laws may mandate the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

BORROWINGS - Securitization Trusts (Details) - USD ($) $ in Thousands	1 Months Ended			12 Months Ended
	Jun. 30, 2023	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Oct. 31, 2019	Nov. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Assets				$ 2,059,912	$ 1,429,513
Liabilities				1,763,630	1,180,467
Securitization Trusts
Debt Instrument [Line Items]
Assets				8,900	14,800
Liabilities				189,200	296,200
Securitization Trusts \| Secured Debt
Debt Instrument [Line Items]
Transfer amount	$ 103,900	$ 116,200	$ 103,400				$ 118,900	$ 108,600	$ 76,200
Loans			$ 103,400	189,231	296,223		118,900	108,600	75,400
Interest expense				$ 21,100	$ 23,500	$ 10,600
Percent of principal amount	20.00%	20.00%	20.00%
Securitization Trusts, Class A \| Secured Debt
Debt Instrument [Line Items]
Loans	$ 84,300	$ 95,400	$ 79,700				93,500	82,900	58,100
Securitization Trusts, Class A \| Secured Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate, basis spread		2.97%
Securitization Trusts, Class A \| Secured Debt \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Interest rate, basis spread	3.24%		1.92%
Securitization Trusts, Class B \| Secured Debt
Debt Instrument [Line Items]
Loans	$ 19,600	$ 20,800	$ 23,800				$ 25,400	$ 25,700	$ 17,300
Securitization Trusts, Class B \| Secured Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate, basis spread		2.97%
Securitization Trusts, Class B \| Secured Debt \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Interest rate, basis spread	3.24%		1.92%

DERIVATIVE INSTRUMENTS - Derivatives Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Asset	$ 715
Liability		$ 630
Foreign Exchange Future
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional		(27,869)
Asset	715	0
Liability	$ 0	$ 630
Remaining Maturity	3 months	3 months
Foreign Exchange Future \| Short
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional	$ (153,049)

- Definition

Fair value, after the effects of master netting arrangements, of a financial asset or other contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset. Includes assets not subject to a master netting arrangement and not elected to be offset.

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+ Details

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2024
Accounting Policies [Abstract]
Reclassifications and Restatements	Reclassifications and Restatements Certain prior period amounts, to the extent comparable, have been reclassified to conform to the current period presentation. The supplemental disclosure of cash flow information for interest paid was restated for December 31, 2023 and 2022 as a result of the previously disclosed material weaknesses and restatements described in the 2023 Annual Report on Form 10-K.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are complete. Actual results could differ from those estimates.
Cash and due from banks and Restricted cash	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 December 31, 2024, cash deposits in excess of insured amounts totaled $30.3 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 December 31, 2024. Restricted cash Restricted cash includes amounts due on SBA loan-related remittance s 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. As of December 31, 2024 and 2023, total restricted cash was $28.2 million and $30.9 million, respectively.
Interest bearing deposits in banks	Interest bearing deposits in banks The Company’s interest bearing deposits in banks reflects cash held at other financial institutions that earn interest.
Debt securities, available for sale, at fair value	Debt securities, available for sale, at fair value The Company’s securities portfolio primarily consists of available for sale debt securities held by Newtek Bank that are classified as “available for sale” and carried at their estimated fair value, with any unrealized gains or losses, net of taxes, reported as accumulated other comprehensive income or loss in stockholders’ equity. The fair values of our instruments are affected by changes in market interest rates and credit spreads. In general, as interest rates rise and/or credit spreads widen, the fair value of instruments will decline. As interest rates fall and/or credit spreads tighten, the fair value of instruments will rise. The Company evaluates available-for-sale instruments in unrealized loss positions at least quarterly to determine if an allowance for credit losses is required. Purchases and sales of debt securities are accounted for on a trade-date basis.
Loans and Loan Interest Income Recognition and Changes in Fair Value	Loans Held for Investment Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are classified as held for investment. At amortized cost, net of deferred fees and costs: Loans are reported at their principal amount outstanding, net of charge-offs, deferred origination costs and fees and purchase premiums and discounts. Loan origination and commitment fees and certain direct and indirect costs incurred in connection with loan originations are deferred and amortized to income over the life of the related loans as an adjustment to yield. Premiums or discounts on purchased portfolios are amortized or accreted to income using the level yield method over the remaining period to contractual maturity. Currently, all LHI at amortized cost, net of deferred fees and costs, are originated and carried at Newtek Bank and have a weighted average life of five years. Newtek Bank originates SBA 7(a) loans, under its PLP status, and typically sells the guaranteed portions and holds the unguaranteed portions for investment. Newtek Bank also holds CRE and C&I loans for investment. At fair value: 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. 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.) Refer to the “Fair Value and the Fair Value Option” section below for further information on loans HFI carried at FV under the FV option. Held for Sale Management designates loans as HFS based on its intent to sell loans, or portions of loans, in established secondary markets or to participant banks and credit unions. Salability requirements of government guaranteed portions include, but are not limited to, full disbursement of the loan commitment amount. The Company occasionally transfers loans between the HFS and HFI classifications based on its intent and ability to hold or sell loans. Management’s intent to sell may be impacted by secondary market conditions, loan credit quality, or other factors. At lower of amortized cost basis or fair value: Both mortgage and non-mortgage loans classified as HFS are carried at the LCM. If the amortized cost basis of a loan exceeds FV, a valuation allowance should be established for the difference. Currently, HFS loans at LCM are carried at Newtek Bank. This includes the government guaranteed portion of SBA 7(a) loans and SBA 504 loans. Management may also make a determination to market for sale certain CRE and C&I loans on a loan by loan basis. At fair value: The Company originates ALP loans (formerly referred to as our nonconforming conventional loans), which are either HFS or HFI, via its nonbank subsidiary and joint ventures. ALP loans are carried at FV. The Company also 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. ALP loans are held at NALH, NCL JV, and TSO JV and are also accounted for under the FV option. Additionally, the existing government guaranteed portion of SBA 7(a) loans held at NSBF are also HFS at FV. Refer to the “Fair Value and the Fair Value Option” section below for further information on loans HFS carried at FV under the FV option. Loan Interest Income Recognition and Changes in Fair Value Held for Investment At Amortized Cost, net of deferred loan fees and costs: Interest on loans is generally recognized on a daily accrual basis at the applicable interest rate. Interest is not accrued on loans that are more than 90 days delinquent on payments, and any interest that was accrued but unpaid on such loans is reversed from interest income at that time, or when deemed to be uncollectible. Interest subsequently received on such loans is recorded as interest income or alternatively as a reduction in the amortized cost of the loan if there is significant doubt as to the collectability of the unpaid principal balance. Loans are returned to accrual status when principal and interest amounts contractually due are brought current and future payments are reasonably assured. At FV: In accordance with accounting standards, any loans for which FV was previously elected continue to be measured as such. Interest income is recognized in the same manner on loans reported at FV as on non-FV loans, except in regard to origination fees and costs which are recognized immediately upon FV election. The changes in FV of loans are reported within noninterest income as Net gain (loss) on loans accounted for under the fair value option. FV of loans includes adjustments for historical credit losses, market liquidity, and economic conditions. The Company values performing accrual loans on a pool basis. Loans that have experienced credit deterioration are valued individually based on resolution plans developed by the Company based on timing and amount of expected future cash flows from all sources of repayment, including both cash flows of the borrower as a going concern as well as the liquidation of collateral and pursuit of personal guarantees. Held for Sale At LCM: Net unrealized losses, if any, on loans without a FV election, are recognized through a valuation allowance and recorded as a charge to Other noninterest income. The cost basis of loans HFS includes unamortized loan origination fees and costs. The pro-rata portion, based on the percent of the total loan sold, of the remaining deferred fees and costs are recognized as an adjustment to the gain on sale. Not electing FV generally results in a larger discount being recorded on the origination date. This discount will subsequently be accreted into interest income over the underlying loan’s remaining term using the effective interest method. Management made this change of election in alignment with its ongoing effort to reduce volatility and drive more predictable revenue. If the transfer is accounted for as a sale, the loans are derecognized from the Company’s consolidated balance sheet and a gain or loss is recognized in net gains on sales of loans line item on the consolidated statements of income. The gain on sale recognized in income is the sum of the premium on the guaranteed loan and the FV of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan retained. If the transfer does not satisfy the aforementioned control criteria, the transaction is recorded as a secured borrowing with the transferred loans remaining on the Company’s consolidated balance sheet and proceeds recognized as a liability. At FV: In accordance with accounting standards, any loans for which FV was previously elected continue to be measured as such. Interest income is recognized in the same manner on loans reported at FV as on non-FV loans, except in regard to origination fees and costs which are recognized immediately upon FV election. The changes in FV of loans are reported within noninterest income as Net gain (loss) on loans accounted for under the fair value option. FV of loans includes adjustments for historical credit losses, market liquidity, and economic conditions.
Fair Value and the Fair Value Option	Fair Value and the Fair Value Option 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. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). The levels of the fair value hierarchy are as follows: Level 1Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets. Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, derivative contracts and loans held-for-sale. Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing assets, warrant liabilities, joint ventures, guaranteed loans held at fair value, and highly structured or long-term derivative contracts. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company assesses the levels of assets and liabilities at each measurement date. There were no transfers to or from Level 3 of the fair value hierarchy for assets and liabilities during the year ended December 31, 2024 or 2023. Level 1 investments were valued using quoted market prices. Level 2 investments were valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. The Company has two joint venture investments, TSO JV and NCL JV. The Company uses a discounted cash flow methodology and adjusts the NAV of the entity by a fair value adjustment for the fixed rate debt liability. Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded. The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded. In addition recent changes in inflation and base interest rates, supply chain disruptions, significant market volatility, risk of recession, recent economic and market events, unrelated bank failures and declines in depositor confidence in depository institutions, the ongoing war between Russia and Ukraine and general uncertainty surrounding the financial and political stability of the United States, United Kingdom, the European Union and China could further negatively impact the fair value of the Company’s investments after December 31, 2024, in addition to other circumstances and events that are not yet known. The Company applies fair value accounting to certain of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurement (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions reflect those that management believe market participants would use in pricing the financial instrument at the measurement date. The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value was greatest for financial instruments classified as Level 3. Any changes to the valuation methodology are reviewed by management to confirm that the changes are appropriate. As markets change, new products develop and the pricing for products becomes more or less transparent, the Company will continue to refine its valuation methodologies. See further description of fair value methodology in NOTE 10—FAIR VALUE MEASUREMENTS. Loans for which the FV option were elected are measured at FV and classified as either HFS or HFI, as outlined above. Not electing FV generally results in a larger discount being recorded on the date of the sale. This discount will subsequently be accreted into interest income over the underlying loan’s remaining term using the effective interest method. Management made this election in alignment with its ongoing effort to reduce volatility and drive more predictable revenue. In accordance with accounting standards, any loans for which FV was previously elected continue to be measured as such. Interest income is recognized in the same manner on loans reported at FV as on non-FV loans, except in regard to origination fees and costs which are recognized immediately upon FV election. The changes in FV of loans are reported in noninterest income as Net gain (loss) on loans accounted for under the fair value option. FV of loans includes adjustments for historical credit losses, market liquidity, and economic conditions. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, reflecting assumptions that a market participant would use when pricing an asset or liability. In some cases, the estimation of fair values requires management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and are subject to change.
Allowance for Credit Losses – Loans and Allowance for Credit Losses – Available-for Sale (“AFS”) Debt Securities - Allowance for Doubtful Accounts	Allowance for Credit Losses – Loans 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 commercial loans. The discounted cash flow (“DCF”) method is used to estimate expected credit losses for all loan portfolio segments measured on a collective (pool) basis. For each loan segment, cash flow projections are generated at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, probability of default, and loss given default. The modeling of prepayment speeds is based on a combination of historical internal data and peer data. 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: 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: 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): The SBA 7(a) portfolio includes loans originated under the federal SBA 7(a) Program. 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’s 7(a) lending 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’s loan program requirements. The guaranteed portion of the loans are HFS and carried at LCM and therefore are not subject to CECL. The unguaranteed portion of the loans that are held on balance sheet at amortized cost are subject to CECL. In the context of CECL, these SBA 7(a) loans are held at Newtek Bank. 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 $50 thousand. 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 December 31, 2024 and 2023, 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.
Settlement Receivable	Settlement Receivable Settlement receivable represents amounts due from third parties for guaranteed portions of SBA 7(a) loans which have been sold at year-end but have not yet settled. The guaranteed portion of SBA 7(a) principal balances that have been sold but not yet settled as of December 31, 2024 and 2023 was $47.4 million and $56.5 million, respectively. The settlement receivable also includes $5.0 million and $5.7 million of premiums, which have been recognized in Net Gains on Sales of Loans as of December 31, 2024 and 2023, respectively.
Assets Held for Sale and Liabilities Directly Associated with Assets Held for Sale	Assets Held for Sale and Liabilities Directly Associated with Assets Held for Sale The Company classifies assets and related liabilities as held for sale when: (i) management has committed to a plan to sell the disposal group, (ii) the disposal group is available for immediate sale, (iii) there is an active program to locate a buyer, (iv) the sale and transfer of the disposal group is probable within one year, (v) the disposal group is being actively marketed for sale at price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes will be made to the plan to sell the disposal group. Assets and liabilities held for sale are presented separately within the consolidated balance sheets with any adjustments necessary to measure the disposal group at the lower of its carrying value or fair value less costs to sell. Depreciation of property and equipment and amortization of intangible and right-of-use assets are not recorded while these assets are classified as held for sale. For each period the disposal group remains classified as held for sale, its recoverability is reassessed and any necessary adjustments are made to its carrying value. Refer to NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE for a discussion of assets and liabilities associated with assets held for sale at December 31, 2024.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill is an indefinite lived asset, which is not amortized and is instead subject to impairment testing, at least annually. Intangible assets, which are the banking core deposits intangibles, have finite lives are amortized over an estimated useful life of 120 months. (See NOTE 8—GOODWILL AND INTANGIBLE ASSETS.) 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.
Leases - Right of use assets and lease liabilities	Leases - Right of use assets and lease liabilities Under ASC 842, operating lease expense is generally recognized on a straight-line basis over the term of the lease. The Company has entered into operating lease agreements for office space with remaining contractual terms up to fifteen years, some of which include renewal options that extend the leases for up to 10 years. These renewal options are not considered in the remaining lease term unless it is reasonably certain the Company will exercise such options. The operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As the rate implicit in the leases generally is not readily determinable for our operating leases, the discount rates used to determine the present value of our lease liability are based on our incremental borrowing rate at the lease commencement date and commensurate with the remaining lease term. Our incremental borrowing rate for a lease is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are excluded from our weighted-average remaining lease term.
Transfers and Servicing of Financial Assets	Transfers and Servicing of Financial Assets For a transfer of financial assets to be considered a sale, the transfer must meet the sale criteria of ASC 860, which, at the time of the transfer, requires that the transferred assets qualify as recognized financial assets and the Company surrender control over the assets. Such surrender requires that the assets be isolated from the Company, even in bankruptcy or other receivership, the purchaser have the right to pledge or sell the assets transferred and the Company not have an option or obligation to reacquire the assets. Assets related to transactions that do not meet ASC Topic 860 — Transfers and Servicing (“ASC Topic 860”) requirements for accounting sale treatment are reflected in the Company’s consolidated statements of assets and liabilities as investments and the sale proceeds are recognized as a liability. Assets owned by securitization trusts are included in the Company’s consolidated financial statements. The creditors of the special purpose entities have received security interests in such assets and such assets are not intended to be available to the creditors of the Company. From 2010 through December 31, 2024, NSBF engaged in thirteen (13) securitizations of the unguaranteed portions of its SBA 7(a) loans. A securitization uses a special purpose entity (the “Trust”), which is considered a variable interest entity (VIE). 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 vehicles, based on its power to direct activities through its role as servicer for the Trusts and its obligation to absorb losses and right to receive benefits, it needed to consolidate the Trusts. The Company therefore consolidates the entities using the carrying amounts of the Trusts’ assets and liabilities and reflects the assets in SBA 7(a) Unguaranteed Loans and reflects the associated financing in Notes Payable - Securitization trusts on the Consolidated Statements of Assets and Liabilities. The Company accounts 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 from the guaranteed portions of SBA 7(a) loans they originate and sell. The Company has also recorded servicing assets/liabilities on loans sold where the Company retained an obligation to service the loan sold. 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 initially measured at FV and subsequently 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.
Derivative Instruments	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.
Due to Participants	Due to Participants Due to participants represents amounts due to third party investors in the SBA guaranteed portion of SBA 7(a) and PPP loans. When the Company receives principal payments, including PPP loan forgiveness, after the loan has been either partially or fully sold to the participant, the remittances received by the Company are either owed in part or in full to the participant and amounts are recorded as a liability on the consolidated statements of financial condition.
Dividends to Shareholders	Dividends to Shareholders Dividends and distributions to the Company's stockholders are recorded on the declaration date. The timing and amount to be paid out as a dividend or distribution is determined by the Company's Board each quarter.
Non-Interest Income	Non-Interest Income Dividend income Dividend income is recognized on an accrual basis for equity securities to the extent that such amounts are expected to be collected or realized. In determining the amount of dividend income to recognize, if any, from cash distributions on equity securities, we assess many factors, including the joint ventures’ and other non-controlled equity investments’ cumulative undistributed income and operating cash flow. Cash distributions from equity securities received in excess of such undistributed amounts are recorded first as a reduction of our investment and then as a realized gain on investment. Servicing income The Company earns servicing income related to the guaranteed portions of SBA 7(a) and ALP loans sold into the secondary market. These recurring servicing fees are earned and recorded daily. Servicing income is earned for the full term of the loan or until the loan is repaid. Technology and IT support income Our technology segment (NTS) sells a range of services and goods, including managed IT services, product and procurement services, professional services, webhosting, secure private cloud hosting, and backup and disaster recovery. Our technology segment sells hardware and software products on both a stand-alone basis without any services and as solutions bundled with services. When our technology segment provides a combination of hardware and software products with the provision of services, it separately identifies its performance obligations under its contract with the customer as the distinct goods (hardware and/or software products) or services that will be provided. The total transaction price for an arrangement with multiple performance obligations is allocated at contract inception to each distinct performance obligation in proportion to its stand-alone selling price. The stand-alone selling price is the price at which it would sell a promised good or service separately to a customer. Our technology segment estimates the price based on observable inputs, including direct labor hours and allocatable costs, or uses observable stand-alone prices when they are available. Our technology segment’s professional services include the design and implementation of a wide range of IT products and services. Such services are typically provided by us or third-party sub-contractor vendors on a stand-alone basis. Revenue is measured based on the consideration specified in a contract with a customer. Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. When a cloud-based service includes both on-premises software licenses and cloud services, judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the cloud service and recognized over time. Certain cloud services depend on a significant level of integration, interdependency, and interrelation between the desktop applications and cloud services, and are accounted for together as one performance obligation. Revenue from such cloud services is recognized ratably over the period in which the cloud services are provided. We otherwise recognize revenue when it satisfies a performance obligation by transferring control of a product or service or by arranging for the sale of a vendor’s products or service to a customer. We recognize revenue from sale of services as we perform the underlying services, typically based on time and materials basis based upon hours incurred for the performance completed to date for which we have the right to consideration. We recognize revenue on sales of goods at a point in time when customer takes control of goods, which typically occurs when title and risk of loss have passed to the customer. We recognize revenue on a gross basis for each of its services and product offerings principally because it is primarily responsible for fulfilling the promise to provide specified goods or service and it has discretion in establishing the price of specified good or service. We classify our right to consideration in exchange for deliverables as either a receivable or a contract asset (unbilled receivable). A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). For example, we recognize a receivable for revenue related to our transaction or volume-based contracts when earned regardless of whether amounts have been billed. We present such receivables in accounts receivable, net in our consolidated balance sheets We maintain an allowance for credit losses to provide for the estimated amount of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables, judgment, and other applicable factors. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets are presented in current and other assets in our consolidated balance sheets and primarily relate to unbilled amounts on fixed-price contracts utilizing the output method of revenue recognition. Our contract assets and liabilities are reported at the end of each reporting period. The difference between the opening and closing balances of our contract assets and deferred revenue primarily results from the timing difference between our performance obligations and the customer’s payment. We receive payments from customers based on the terms established in our contracts, which may vary generally by contract type. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. The difference between the opening and closing balances of our contract assets and deferred revenue primarily results from the timing difference between our performance obligations and the customer’s payment. We receive payments from customers based on the terms established in our contracts, which may vary generally by contract type. On January 2, 2025, the Company completed the NTS Sale to Paltalk. Refer to “NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION” - Sale of NTS. Electronic payment processing income Revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To achieve this core principle, the Company applies the following five steps: 1. Identify the contract with a customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when or as the Company satisfies a performance obligation Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities. NMS’s revenue is primarily derived from electronic payment processing and related fee income. Electronic payment processing and fee income is derived from NMS’s electronic processing of credit and debit card transactions that are authorized and captured through third-party networks. Typically, merchants are charged for these processing services by applying a percentage to the dollar amount of each transaction plus a flat fee per transaction. Certain merchant customers are charged miscellaneous fees, including fees for handling charge-backs or returns, monthly minimum fees, statement fees and fees for other miscellaneous services. Revenues derived from the electronic processing of MasterCard®, Visa®, American Express® and Discover® sourced credit and debit card transactions are reported net of certain transaction-related costs. NMS's performance obligations are to stand ready to provide holistic electronic payment processing services consisting of a series of distinct elements that are substantially the same and have the same pattern of transfer over time. NMS’s promise to its customers is to perform an unknown or unspecified quantity of tasks and the consideration received is contingent upon the customers’ use (i.e., number of payment transactions processed, number of cards on file, etc.); as such, the total transaction price is variable. The Company allocates the variable fees charged to the day in which it has the contractual right to bill under the contract. ASU 2014-09, "Revenues from Contracts with Customers (“Topic 606”)" (“ASC 606”) requires that the Company determine for each customer arrangement whether revenue should be recognized at a point in time or over time. For the years ended December 31, 2024 and and 2023, substantially all of the Company’s revenues were recognized at a point in time. ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations; however, as permitted by ASC 606, the Company has elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. As described above, the Company’s most significant performance obligations consist of variable consideration under a stand-ready series of distinct days of service. Such variable consideration meets the specified criteria for the disclosure exclusion; therefore, the majority of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied is variable consideration that is not required for this disclosure. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material. Receivable fees: Receivable fees are derived from the funding (purchase) of receivables from the Company’s finance clients. The Company recognizes revenue on the date receivables are purchased at a percentage of face value as agreed to by the client. The Company also has arrangements with certain of its clients whereby it purchases the client’s receivables and charges a fee at a specified rate based on the amount of funds advanced against such receivables. The funds provided are collateralized and the income is recognized as earned which occurs as time passes. Realized gains or losses on joint ventures: Realized gains or losses on joint ventures are measured by the difference between the net proceeds from the disposition and the cost basis of investment, without regard to unrealized gains or losses previously recognized. The Company reports current period changes in the fair value of joint venture investments as a component of the net change in unrealized appreciation (depreciation) on joint ventures in the consolidated statements of operations.
Electronic Payment Processing Costs	Electronic Payment Processing Costs Electronic payment processing costs consist principally of costs directly related to the processing of merchant sales volume, bank processing fees, amounts paid to NMS’ sponsoring banks and costs paid to third-party processing networks. Such costs are recognized at the time the merchant transactions are processed or when the services are performed. In addition to costs directly related to the processing of merchant sales volume, electronic payment processing costs also include residual expenses. Residual expenses represent fees paid to third-party sales referral sources. Residual expenses are paid in accordance with contracted terms. These are generally linked to revenues derived from merchants successfully referred to the Company and that begin using the Company for merchant processing services. Such residual expenses are recognized in the Company’s consolidated statements of income.
Technology Services Expenses	Technology Services Expenses Costs of services and goods sold include product costs, outbound and inbound freight costs, and direct time and materials in delivering service and goods to customers. Selling and administrative expenses include salaries and wages for staff who are not directly associated with delivering services, bonuses and incentives, employee-related expenses, facility-related expenses, marketing and advertising expense, depreciation of property and equipment, professional fees, amortization of intangible assets, provisions for losses on accounts receivable and other operating expenses.
Stock-Based Compensation	Stock – Based Compensation The Company accounts for its equity-based compensation plans using the fair value method, as prescribed by ASC Topic 718 – Stock Compensation. Accordingly, for restricted stock awards, the Company measures the grant date fair value based upon the market price of the Company’s Common Stock on the date of the grant and amortizes this fair value to salaries and benefits ratably over the requisite service period or vesting term on a straight line basis. Forfeitures are recognized as incurred.
Income Taxes	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 21—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 2021 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 statement of income. Formerly, as a RIC ending with the Company’s December 31, 2022 fiscal year end, the Company was not subject to corporate level income tax. Beginning on January 1, 2023 with the start of the 2023 fiscal year, the Company no longer qualifies as a RIC and is subject to corporate level income tax. See NOTE 21—INCOME TAXES.
Segments	Segments Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management has determined that the Company has five reportable operating segments: Banking, NALH, Non-Bank SBA 7(a) Lending, Technology, and Payments as discussed more fully in NOTE 22—SEGMENTS. In determining the appropriateness of a segment definition, the Company considers the criteria of FASB ASC 280, Segment Reporting.
Business Combinations	Business Combinations Business combinations are accounted for under the acquisition method, in which the identifiable assets acquired and liabilities assumed are generally measured and recognized at fair value as of the acquisition date, with the excess of the purchase price over the fair value of the net assets acquired recognized as goodwill. Items such as acquired income-tax related balances are recognized in accordance with other applicable GAAP, which may result in measurements that differ from fair value. Business combinations are included in the consolidated financial statements from the respective dates of acquisition. Historical reporting periods reflect only the results of legacy Company operations. Acquisition-related costs are expensed in the period incurred and presented within the applicable non-interest expense category. Additional information regarding the Company’s acquisitions can be found within NOTE 3—BUSINESS COMBINATIONS, which relates to the 2023 acquisition of NBNYC. There were no acquisitions during 2024.
Recently Adopted Accounting Pronouncements and New Accounting Standards	Recently Adopted Accounting Pronouncements Current Expected Credit Losses (Topic 326): In June 2016, FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments (Topic 326) and in April 2019, the FASB issued ASU 2019-04 Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (collectively, “CECL”). CECL changed how entities measure potential credit losses for most financial assets and certain other instruments that are not measured at fair value. CECL replaced the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost. While ASU 2016-13 does not require any particular method for determining the CECL allowance, it does specify the allowance should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. CECL was effective for the Company beginning January 1, 2023; however, the Company continues to measure NSBF’s SBA 7(a) loan portfolio at fair value and intends to do so until the portfolio is completely runoff. Following the Acquisition on January 6, 2023, the Company owns and consolidates Newtek Bank, which applies CECL. Fair Value Measurement (ASU 2022-03): In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820), which clarifies the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. ASU 2022-03 is effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. An entity that qualifies as an investment company under Topic 946 should apply the amendments in ASU No. 2022-03 to an investment in an equity security subject to a contractual sale restriction that is executed or modified on or after the date of adoption. The impact of these amendments was not material. Improvements to Reportable Segment Disclosures (ASU 2023-07): In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The purpose of this guidance is to improve reportable segment disclosure, primarily through enhanced disclosures about significant segment expenses. This ASU requires that an entity disclose, on an interim and annual basis, significant segment expenses that are regularly provided to the CODM and are included within the reported measure of segment profit or loss. This ASU also requires an entity to disclose, on an interim and annual basis, other segment items by reportable segment, including a qualitative description of the composition of those items. This “other” category is defined as the difference between segment profit or loss and segment revenue less significant segment expenses. Entities are also required to disclose the title and position of the individual, or the name of the group or committee, identified as the CODM. The amendments are effective on January 1, 2024, for annual reporting, and January 1, 2025, for interim reporting, with early adoption permitted. The amendments must be applied using a retrospective approach. The Company adopted this guidance as of January 1, 2024 which resulted in enhanced disclosures of segment expenses within the consolidated financial statements beginning with its December 31, 2024 Form 10-K. New Accounting Standards Improvements to Income Tax Disclosures (ASU 2023-09): In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The purpose of this guidance is to enhance the rate reconciliation and income taxes paid disclosures. This ASU requires that an entity disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. For the state and local income tax category of the rate reconciliation, entities must disclose a qualitative description of the states and local jurisdictions that make up the majority (greater than 50 percent) of the category. For the income taxes paid disclosures, entities will be required to disclose, on an annual basis, the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes. The amendments are effective on January 1, 2025, with early adoption permitted. The amendments must be applied using either a prospective or retrospective approach. Management does not expect the impact of these amendments to be material. Compensation—Stock Compensation (ASU 2024-01): In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This standard is effective for fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is 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. Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (ASU 2024-03): In November 2024, the FASB issued ASU 2024-03, which 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. This ASU is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. 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. 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 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.

GOODWILL AND INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 539	$ 1,468	$ 0

INVESTMENTS

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

NOTE 4—INVESTMENTS:

Investments consisted of the following at:


	December 31, 2024				December 31, 2023
	Cost		Fair Value		Cost		Fair Value
Joint ventures and other non-control investments, at fair value	$	44,039	$	57,678	$	38,660	$	41,587
Debt securities available-for-sale, at fair value	23,934		23,916		32,372		32,171
Federal Home Loan Bank and Federal Reserve Bank stock	3,585		3,585		3,635		3,635
Total investments	$	71,558	$	85,179	$	74,667	$	77,393

The Company’s Investments in Joint Ventures (JV) and Other Non-Control Investments

NCL JV: On May 20, 2019, the Company and its joint venture partner launched NCL JV to provide ALP loans (formerly referred to as non-conforming conventional commercial and industrial term loans) to U.S. middle-market companies and small businesses. NCL JV is a 50/50 joint venture between NCL a wholly-owned subsidiary of the Company, and Conventional Lending TCP Holding, LLC, a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (Nasdaq: TCPC). NCL JV ceased funding new ALP loans during 2020. 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%. The proceeds of the securitization were used, in part, to repay NCL JV’s credit facility and return capital to the NCL JV partners.

The following tables show certain summarized financial information for NCL JV:


Selected Statements of Assets and Liabilities Information (Unaudited)	December 31, 2024		December 31, 2023
Cash	$	587	$	612
Restricted cash	5,513		3,298
Loans, at FV (amortized cost of $52,751 and $68,404, respectively)	53,895		70,083
Other assets	1,737		1,614
Total assets	$	61,732	$	75,607

Securitization notes payable	$	25,322	$	38,805
Other liabilities	867		905
Total liabilities	26,189		39,710
Net assets	35,543		35,897
Total liabilities and net assets	$	61,732	$	75,607


Selected Statements of Operations Information (Unaudited)	Year Ended December 31,
		2024		2023		2022
Interest and other income		$	4,984	$	6,160	$	6,966
Total expenses		1,797		2,524		2,916
Net investment income		3,187		3,636		4,050
Unrealized (depreciation) appreciation on investments		(536)		1,869		(4,494)
Net increase in net assets resulting from operations		$	2,651	$	5,505	$	(444)

TSO JV: On August 5, 2022, NCL and TSO II Booster Aggregator, L.P. (“TSO II”) entered into a joint venture, TSO JV, governed by the Amended and Restated Limited Partnership Agreement for the TSO JV. TSO JV 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.

The following tables show certain summarized financial information for TSO JV:


Selected Statements of Assets and Liabilities Information (Unaudited)	December 31, 2024		December 31, 2023
Cash	$	1,780	$	4,401
Restricted cash	18,399		1,183
Loans, at FV (amortized cost of $173,654 and $62,695, respectively)	183,084		66,689
Other assets	5,112		1,374
Total assets	$	208,375	$	73,647

Bank notes payable	$	—	$	29,636
Securitization notes payable	140,224		—

Other liabilities	427		1,092
Total liabilities	140,651		30,728
Net assets	67,724		42,919
Total net assets	$	208,375	$	73,647


Selected Statements of Operations Information (Unaudited)	Year Ended December 31,
		2024		2023		2022
Interest and other income		$	17,964	$	3,823	$	101
Total expenses		9,813		4,430		385
Net investment income		8,151		(607)		(284)
Unrealized appreciation (depreciation) on investments		5,438		2,580		1,412
Realized loss on investments		—		(16)		—
Realized gain (loss) on derivative transactions		(391)		399		—
Unrealized (loss) gain on derivative transactions		694		(911)		218
Net increase in net assets resulting from operations		$	13,892	$	1,445	$	1,346

Transactions with Affiliated Companies

An affiliated company is an unconsolidated entity in which the Company has an ownership of 5% or more of its voting securities. Transactions related to our joint ventures and other non-controlled investments for the years ended December 31, 2024 and 2023 were as follows:


Company	Fair Value at December 31, 2023		Purchases (Cost)		Return of Investment		Net Gains/(Losses)		Fair Value at December 31, 2024		Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC	$	19,400	$	—	$	—	$	(600)	$	18,800	$	1,503
Newtek TSO II Conventional Credit Partners, LP	21,459		25,642		(20,185)		11,184		38,100		—
Total Joint Ventures	$	40,859	$	25,642	$	(20,185)	$	10,584	$	56,900	$	1,503

Other Non-Control Investments
EMCAP Loan Holdings, LLC	$	368	$	—	$	(116)	$	68	$	320	$	16
Biller Genie Software, LLC	360		38		—		60		458		—
Total Other Non-Control Investments	$	728	$	38	$	(116)	$	128	$	778	$	16

Total Joint Ventures and Other Non-Control Investments	$	41,587	$	25,680	$	(20,301)	$	10,712	$	57,678	$	1,519


Company	Fair Value at December 31, 2022		Purchases (Cost)		Return of Investment		Net Gains/(Losses)		Fair Value at December 31, 2023		Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC	$	16,587	$	248	$	—	$	2,565	$	19,400	$	1,641
Newtek TSO II Conventional Credit Partners, LP	6,435		14,302		—		722		21,459		—
Total Joint Ventures	$	23,022	$	14,550	$	—	$	3,287	$	40,859	$	1,641

Other Non-Control Investments
EMCAP Loan Holdings, LLC	$	1,000	$	—	$	(564)	$	(68)	$	368	$	116
Biller Genie Software, LLC	360		—		—		—		360		—
Total Other Non-Control Investments	$	1,360	$	—	$	(564)	$	(68)	$	728	$	116

Total Joint Ventures and Other Non-Control Investments	$	24,382	$	14,550	$	(564)	$	3,219	$	41,587	$	1,757

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 December 31, 2024 and 2023:


	December 31, 2024								December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. Treasury notes	$	23,934	$	11	$	29	$	23,916	$	29,372	$	—	$	67	$	29,305
Government agency debentures	—		—		0				3,000		—		134		2,866
Total	$	23,934	$	11	$	29	$	23,916	$	32,372	$	—	$	201	$	32,171

As of December 31, 2024 and December 31, 2023, there was $30.4 thousand and $0.2 million of accrued interest receivable on available-for-sale securities, respectively, included in Other assets in the accompanying Consolidated Statements of Financial Condition.

During the years ended December 31, 2024 and 2023, securities sold or settled were as follows:


	Year Ended December 31,
		2024		2023
			#	$	#	$
Securities sold or settled			5	$42,500	—	$—

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:


	December 31, 2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Holdings		Fair Value		Unrealized Losses
U.S. Treasury notes	$	12,061	$	27	$	—	$	—	2		$	12,061	$	27
Government agency debentures	—		—		—		—		—		—		—
Total	$	12,061	$	27	$	—	$	—	$	2	$	12,061	$	27


	December 31, 2023
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Holdings	Fair Value		Unrealized Losses
U.S. Treasury notes	$	29,304	$	67	$	—	$	—	1	$	29,304	$	67
Government agency debentures	2,867		134		—		—		2	2,867		134
Total	$	32,171	$	201	$	—	$	—	3	$	32,171	$	201

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:


	December 31, 2024				At December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing within 1 year	$	15,833	$	15,838	$	32,372	$	32,171
After 1 year through 5 years	8,101		8,078		—		—


Total	$	23,934	$	23,916	$	32,372	$	32,171

Other information

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


	December 31, 2024		December 31, 2023
Pledged for deposits	$	—	$	—
Pledged for borrowings and other	23,916		30,730
Total pledged	$	23,916	$	30,730

- Definition

The entire disclosure for investments owned by investment company.

+ References + Details

EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Basic earnings per share:
Net income available to common shareholders	$ 49,253	$ 45,875	$ 32,311
Weighted-average basic shares outstanding (in shares)	24,945	24,263	24,198
Basic earnings per share (in dollars per share)	$ 1.97	$ 1.89	$ 1.34
Diluted earnings per share:
Net income available to common shareholders	$ 49,253	$ 45,875	$ 32,311
Add: Preferred dividends on dilutive Series A convertible preferred stock	0	0	0
Net income, for diluted earnings per share	$ 49,253	$ 45,875	$ 32,311
Weighted-average basic shares outstanding (in shares)	24,945	24,263	24,198
Add effect of dilutive restricted stock awards	241	85	0
Total weighted-average diluted shares outstanding (in shares)	25,186	24,348	24,198
Diluted earnings per share (in dollars per share)	$ 1.96	$ 1.88	$ 1.34
Anti-dilutive warrants, restricted stock awards, and Series A convertible preferred stock (in shares)	$ 998	$ 1,153	$ 0

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net income	$ 50,853	$ 47,329	$ 32,311
Adjustments to reconcile net income to net cash used in operating activities:
Net unrealized (appreciation) depreciation on investments	(10,712)	(3,219)	(24,321)
Net (gain) loss on loans accounted for under the fair value option	(5,200)	(18,008)	26,504
Loan servicing asset revaluation	12,665	4,282	10,095
Net unrealized (appreciation) depreciation on derivative transactions	(1,344)	699	(183)
Unrealized loss on assets classified as held for sale	616	0	0
Net gain on sales of loans	(97,183)	(51,467)	(56,901)
Net accretion of premium/discount	(836)	(675)	0
Loss on extinguishment of debt	0	271	417
Amortization of deferred financing costs	4,564	4,052	2,494
Provision for credit losses	26,216	11,704	0
Lower of cost or market adjustment on loans held for sale	(73)	0	0
Bad debt expense, net of recoveries	1,059	3,637	0
Stock compensation expense	4,062	2,828	0
Deferred income tax expense (benefit)	10,403	(4,800)	6,464
Depreciation and amortization	1,784	2,884	239
Proceeds from sale of loans held for sale	817,869	695,461	691,219
Purchase of loans held for sale	0	0	(2,404)
Sale (purchase) of loans held for sale from affiliate	140,009	(5,279)	0
Funding of loans held for sale	(1,125,131)	(783,035)	(775,577)
Principal received on loans held for sale	18,898	12,235	74,287
Principal received on investments	0	0	6,970
Return of investments from controlled investments	0	0	48,709
Other, net	(230)	0	3,257
Changes in operating assets and liabilities:
Settlement receivable	9,765	(62,230)	44,537
Income tax payable	19	(4,040)	0
Dividends receivable	0	493	0
Due to/from related parties	(91)	(165)	2,778
Other assets	(13,660)	7,432	1,816
Assets classified as held for sale	(1,497)	0	0
Liabilities directly associated with assets classified as held for sale	(174)	0	0
Dividends payable	441	4,776	0
Due to participants	(2,264)	(11,832)	(110,598)
Accounts payable, accrued expenses and other liabilities	6,158	(22,552)	9,021
Other, net	0	0	6
Net cash used in operating activities	(153,014)	(169,219)	(62,418)
Cash flows from investing activities:
Net decrease in loans held for investment, at fair value	66,817	29,349	0
Net increase in loans held for investment, at cost	(278,539)	(169,003)	0
Contributions to joint ventures and other non-control investments	(25,680)	(14,550)	0
Return of capital from joint ventures and other non-control investments	20,301	564	0
Purchase of fixed assets	(439)	(458)	(11)
Net decrease (increase) in Federal Home Loan Bank and Federal Reserve Bank stock	50	(2,112)	0
Purchases of available-for-sale securities	(33,021)	(27,167)	0
Purchases of available-for-sale securities	41,460	0	0
Acquisitions, net of cash acquired	0	11,142	0
Net cash used in investing activities	(209,051)	(172,235)	(11)
Cash flows from financing activities:
Net borrowings (paydowns) on bank notes payable	71,613	(78,663)	5,885
Net increase in deposits	508,577	324,705	0
Repayment of Federal Home Loan Bank advances	(7,959)	(4,895)	0
Proceeds from common shares sold, net of offering costs	13,818	0	2,019
Proceeds from preferred stock, net of offering costs	0	19,493	0
Net repayments under related party line of credit	0	0	12,800
Payments on Notes Payable - Securitization Trusts	(106,992)	(90,780)	(82,817)
Issuance of Notes Payable - Securitization Trusts	0	103,860	116,210
Dividends paid, net of dividend reinvestment plan	(20,252)	(14,147)	(64,544)
Payments of deferred financing costs	(6,039)	(4,650)	(2,552)
Proceeds from common stock issued under ESPP	207	51
Purchase of vested stock for employee payroll tax withholding	(299)	0	(826)
Retirement of common shares	(402)	0	0
Net cash provided by financing activities	560,897	344,974	1,175
Net increase in cash and restricted cash	198,832	3,520	(61,254)
Cash and restricted cash—beginning of period (Note 2)	184,006	125,606	186,860
Consolidation/(deconsolidation) of cash and restricted cash from controlled investments related to business combinations and dispositions, net of cash paid	(1,464)	54,880	0
Cash and restricted cash—end of period (Note 2)	381,374	184,006	125,606
Non-cash operating, investing and financing activities:
Foreclosed real estate acquired	4,569	2,978	3,466
Dividends declared but not paid during the period	5,237	4,363	2,118
Issuance of common shares under dividend reinvestment plan	0	219	1,614
Supplemental disclosure of cash flow information:
Interest paid	79,192	66,471	25,348
Income taxes paid	7,429	6,884	0
2025 5.00% Notes
Cash flows from financing activities:
Proceeds from Notes	0	0	30,000
2025 8.125% Notes
Cash flows from financing activities:
Proceeds from Notes	0	50,000	0
8.00% Notes due 2028
Cash flows from financing activities:
Proceeds from Notes	0	40,000	0
2024 Notes
Cash flows from financing activities:
Redemption of Notes	(38,250)	0	0
2025 6.85% Notes
Cash flows from financing activities:
Redemption of Notes	0	0	(15,000)
2029 8.50% Notes
Cash flows from financing activities:
Proceeds from Notes	71,875	0
2029 8.625% Notes
Cash flows from financing activities:
Proceeds from Notes	75,000	0
Controlled Investments
Adjustments to reconcile net income to net cash used in operating activities:
Funding of investments	0	0	(53,198)
Other Non-Control Investments
Adjustments to reconcile net income to net cash used in operating activities:
Net unrealized (appreciation) depreciation on investments	(128)	68
Funding of investments	$ 0	$ 0	$ (360)

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITES (Tables)

12 Months Ended

Dec. 31, 2024

Payables and Accruals [Abstract]

Schedule of accounts payable and accrued liabilities

The following table details the components of accounts payable, accrued expenses and other liabilities at December 31, 2024 and December 31, 2023:


	December 31, 2024		December 31, 2023
Loan related remittances due to SBA and participants	$	2,203	$	3,577
Accrued payroll and related payables	332		1,349
Accrued interest	6,035		4,114
Funds in process to PMT's payroll customers	5,700		5,060
Loan processing, servicing and other loan related payables	3,185		3,793
SBA repair & denial reserve1	3,573		3,063
Good faith deposits	1,499		893
Other	18,279		15,451
Total accounts payable, accrued expenses and other liabilities	$	40,806	37,300

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared common shares (in dollars per share)	$ 0.38	$ 0.54
Dividends declared preferred shares (in dollars per share)	$ 80.00	$ 72.44

INCOME TAXES

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 21—INCOME TAXES:

The Company elected to be treated as a RIC under the Code beginning with the 2015 tax year and, through the year ended December 31, 2022, operated in a manner so as to continue to qualify for the tax treatment applicable to RICs. The Company filed its final RIC tax return for the year ended December 31, 2022. Beginning with 2023, the Company no longer qualifies as a RIC and instead will file a consolidated U.S. federal income tax return. Financial holding companies are subject to federal and state income taxes in essentially the same manner as other corporations.

One of the Company’s wholly owned subsidiaries is undergoing a federal income tax audit for the fiscal year ended December 31, 2022.

Effective Tax Rate and Net Operating Losses

The effective tax rate was 25.97% for the year ended December 31, 2024. The effective tax rate differs from the federal tax rate of 21% for the year ended December 31, 2024, due primarily to the addition of estimated state tax.

The components of income tax expense for the years ended December 31, 2024 and 2023, were as follows:


	Years ended December 31,
		2024		2023
Current income tax expense/(benefit):
Federal		$	4,637	$	1,251
State		2,799		1,593
Total current expense/(benefit)		7,436		2,844
Deferred income tax expense/(benefit):
Federal		9,076		(4,318)
State		1,327		(482)
Total deferred expense/(benefit)		10,403		(4,800)
Total income tax expense/(benefit)		$	17,839	$	(1,956)

For the years ended December 31, 2024 and 2023, income taxes for financial reporting purposes differ from the amount computed by applying the statutory federal income tax rate of 21% as shown in the following table:


	Years ended December 31,
		2024			2023
Tax on income computed at statutory federal income tax rate		$	14,425		9,528
Increase (decrease) in taxes resulting from:
State income tax, net of federal tax effect		3,538			911
Non-deductible expenses		(148)			788
Realization of net operating loss carryforwards		—			(7,430)
DTA realization due to change in taxpayer status		—			(5,550)
Other, net		24			(203)
Income tax expense/(benefit)		$	17,839		(1,956)
Effective tax rate		25.97		%	(4.31)	%

Significant components of the Company’s net deferred tax asset at December 31, 2024 and 2023 are listed below:


	December 31, 2024		December 31, 2023
Deferred tax assets:
Allowance for Credit Losses	$	7,914	$	3,313
Lease Liabilities	1,737		1,832
Other	2,757		1,669
Purchase Accounting, net	183		331
Stock Compensation	1,134		396
Loans	—		2,677
Goodwill and Intangible Assets	217		—
Federal and state net operating losses, net of federal tax effect	201		2,428
Total deferred tax assets	14,143		12,646
Deferred tax liabilities:
Investments	2,481		650
Servicing Rights	6,234		2,737
Right of Use Assets	1,488		1,502
Goodwill and Intangible Assets	—		2,330
Loans	6,069		—
Other	115		197
Total deferred tax liabilities	16,387		7,416
Net deferred tax asset (liability)	$	(2,244)	$	5,230

At December 31, 2024, the Company has $4.1 million of state net operating loss carryforwards. Of the $4.1 million, $4.0 million is expected to expire at various dates through 2043 with the remainder of the net operating losses having indefinite lives. If substantial changes in the Company’s ownership occur, there would be an annual limitation on the amount of carryforward(s) that can be utilized.

The Company continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. The Company files tax returns in federal and certain state and local jurisdictions. The periods subject to examination are generally for tax years ended in 2020 and beyond, including the following major jurisdictions: U.S. Federal, New York, and Florida. However, the Company’s net operating losses continue to be subject to review by tax authorities in the period utilized notwithstanding origination in closed periods.

As of December 31, 2024, the Company had no uncertain tax positions. The Company has elected to recognize interest and penalties related to income tax matters as a component of income tax expense, of which no interest or penalties were recorded for the years ended December 31, 2024 and 2023.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

NOTE 14—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 December 31, 2024 and December 31, 2023:


	December 31, 2024							December 31, 2023
			Fair Value				Remaining			Fair Value				Remaining
Contract Type	Notional1		Asset2		Liability		Maturity (years)	Notional1		Asset		Liability3		Maturity (years)
5-year Treasury Futures	$	(153,049)	$	715	$	—	0.25 years	$	(27,869)	$	—	$	630	0.25 years

1 Shown as a negative number when the position is sold short.

2 Shown in Other assets in the accompanying Consolidated Statements of Financial Condition.

3 Shown in Accounts payable, accrued expenses, and other liabilities in the accompanying Consolidated Statements of Financial Condition.

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 operations for the years ended December 31, 2024, 2023 and 2022:


	Year Ended
		December 31, 2024	December 31, 2023				December 31, 2022
Contract Type			Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)		Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)		Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)
5-year Treasury Futures			$	1,344	$	(51)	$	(699)	$	834	$	183	$	445

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.

GOODWILL AND INTANGIBLE ASSETS - Future Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Year one	$ 156
Year two	135
Year three	114
Year four	94
Year five	73
Thereafter	95
Total	$ 667	$ 4,235

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Investment holdings, schedule of investments

Investments consisted of the following at:


	December 31, 2024				December 31, 2023
	Cost		Fair Value		Cost		Fair Value
Joint ventures and other non-control investments, at fair value	$	44,039	$	57,678	$	38,660	$	41,587
Debt securities available-for-sale, at fair value	23,934		23,916		32,372		32,171
Federal Home Loan Bank and Federal Reserve Bank stock	3,585		3,585		3,635		3,635
Total investments	$	71,558	$	85,179	$	74,667	$	77,393

The following table shows the Company’s loan portfolio by collateral type for loans HFI, at fair value:


	Loans HFI, at Fair Value
	December 31, 2024				December 31, 2023
	Cost		Fair Value		Cost		Fair Value
CRE	$	162,894	$	175,353	$	203,882	$	218,334
Residential Real Estate	69,667		67,474		94,877		88,051
Machinery and Equipment¹	60,460		56,454		74,691		67,069
Accounts Receivable and Inventory	59,449		54,267		80,746		74,596
Unsecured	5,643		5,644		6,851		6,898
Other²	13,033		10,554		21,516		14,853
Total	$	371,146	$	369,746	$	482,563	$	469,801

Investment company, nonconsolidated subsidiary, summarized financial information

The following tables show certain summarized financial information for NCL JV:


Selected Statements of Assets and Liabilities Information (Unaudited)	December 31, 2024		December 31, 2023
Cash	$	587	$	612
Restricted cash	5,513		3,298
Loans, at FV (amortized cost of $52,751 and $68,404, respectively)	53,895		70,083
Other assets	1,737		1,614
Total assets	$	61,732	$	75,607

Securitization notes payable	$	25,322	$	38,805
Other liabilities	867		905
Total liabilities	26,189		39,710
Net assets	35,543		35,897
Total liabilities and net assets	$	61,732	$	75,607


Selected Statements of Operations Information (Unaudited)	Year Ended December 31,
		2024		2023		2022
Interest and other income		$	4,984	$	6,160	$	6,966
Total expenses		1,797		2,524		2,916
Net investment income		3,187		3,636		4,050
Unrealized (depreciation) appreciation on investments		(536)		1,869		(4,494)
Net increase in net assets resulting from operations		$	2,651	$	5,505	$	(444)

The following tables show certain summarized financial information for TSO JV:


Selected Statements of Assets and Liabilities Information (Unaudited)	December 31, 2024		December 31, 2023
Cash	$	1,780	$	4,401
Restricted cash	18,399		1,183
Loans, at FV (amortized cost of $173,654 and $62,695, respectively)	183,084		66,689
Other assets	5,112		1,374
Total assets	$	208,375	$	73,647

Bank notes payable	$	—	$	29,636
Securitization notes payable	140,224		—

Other liabilities	427		1,092
Total liabilities	140,651		30,728
Net assets	67,724		42,919
Total net assets	$	208,375	$	73,647


Selected Statements of Operations Information (Unaudited)	Year Ended December 31,
		2024		2023		2022
Interest and other income		$	17,964	$	3,823	$	101
Total expenses		9,813		4,430		385
Net investment income		8,151		(607)		(284)
Unrealized appreciation (depreciation) on investments		5,438		2,580		1,412
Realized loss on investments		—		(16)		—
Realized gain (loss) on derivative transactions		(391)		399		—
Unrealized (loss) gain on derivative transactions		694		(911)		218
Net increase in net assets resulting from operations		$	13,892	$	1,445	$	1,346

Investments in and advances to affiliates

Transactions related to our joint ventures and other non-controlled investments for the years ended December 31, 2024 and 2023 were as follows:


Company	Fair Value at December 31, 2023		Purchases (Cost)		Return of Investment		Net Gains/(Losses)		Fair Value at December 31, 2024		Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC	$	19,400	$	—	$	—	$	(600)	$	18,800	$	1,503
Newtek TSO II Conventional Credit Partners, LP	21,459		25,642		(20,185)		11,184		38,100		—
Total Joint Ventures	$	40,859	$	25,642	$	(20,185)	$	10,584	$	56,900	$	1,503

Other Non-Control Investments
EMCAP Loan Holdings, LLC	$	368	$	—	$	(116)	$	68	$	320	$	16
Biller Genie Software, LLC	360		38		—		60		458		—
Total Other Non-Control Investments	$	728	$	38	$	(116)	$	128	$	778	$	16

Total Joint Ventures and Other Non-Control Investments	$	41,587	$	25,680	$	(20,301)	$	10,712	$	57,678	$	1,519


Company	Fair Value at December 31, 2022		Purchases (Cost)		Return of Investment		Net Gains/(Losses)		Fair Value at December 31, 2023		Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC	$	16,587	$	248	$	—	$	2,565	$	19,400	$	1,641
Newtek TSO II Conventional Credit Partners, LP	6,435		14,302		—		722		21,459		—
Total Joint Ventures	$	23,022	$	14,550	$	—	$	3,287	$	40,859	$	1,641

Other Non-Control Investments
EMCAP Loan Holdings, LLC	$	1,000	$	—	$	(564)	$	(68)	$	368	$	116
Biller Genie Software, LLC	360		—		—		—		360		—
Total Other Non-Control Investments	$	1,360	$	—	$	(564)	$	(68)	$	728	$	116

Total Joint Ventures and Other Non-Control Investments	$	24,382	$	14,550	$	(564)	$	3,219	$	41,587	$	1,757

The following table summarizes the amounts due to and due from affiliated companies as of December 31, 2024 and 2023:


	December 31, 2024		December 31, 2023
Due to affiliated companies1	$	242	$	158
Due from affiliated companies2	—		7
Total due to/due from affiliated companies	$	242	$	151

1 Included within Accounts payable, accrued expenses, and other liabilities

2 Included within Other assets

The following table summarizes the income earned from our joint ventures for the years ended December 31, 2024, 2023 and 2022:


	Year Ended December 31,
		2024		2023		2022
Servicing income		$	1,997	$	1,240	$	840
Dividend income		1,503		1,641		339
Total income		$	3,500	$	2,881	$	1,179

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 December 31, 2024 and 2023:


	December 31, 2024		December 31, 2023
FDIC insured deposits	$	4,732	$	4,388
Non-FDIC insured deposits	1,098		1,167
Total deposits from related parties and their affiliated companies	$	5,830	$	5,555

Schedule of available-for-sale securities

The following tables summarize the amortized cost and fair value of debt securities available-for-sale by major type as of December 31, 2024 and 2023:


	December 31, 2024								December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. Treasury notes	$	23,934	$	11	$	29	$	23,916	$	29,372	$	—	$	67	$	29,305
Government agency debentures	—		—		0				3,000		—		134		2,866
Total	$	23,934	$	11	$	29	$	23,916	$	32,372	$	—	$	201	$	32,171

Schedule of available for sale debt securities sold or settled

During the years ended December 31, 2024 and 2023, securities sold or settled were as follows:


	Year Ended December 31,
		2024		2023
			#	$	#	$
Securities sold or settled			5	$42,500	—	$—

Debt securities, unrealized losses


	December 31, 2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Holdings		Fair Value		Unrealized Losses
U.S. Treasury notes	$	12,061	$	27	$	—	$	—	2		$	12,061	$	27
Government agency debentures	—		—		—		—		—		—		—
Total	$	12,061	$	27	$	—	$	—	$	2	$	12,061	$	27


	December 31, 2023
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Holdings	Fair Value		Unrealized Losses
U.S. Treasury notes	$	29,304	$	67	$	—	$	—	1	$	29,304	$	67
Government agency debentures	2,867		134		—		—		2	2,867		134
Total	$	32,171	$	201	$	—	$	—	3	$	32,171	$	201

Available-for-sale maturity and other information

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


	December 31, 2024				At December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing within 1 year	$	15,833	$	15,838	$	32,372	$	32,171
After 1 year through 5 years	8,101		8,078		—		—


Total	$	23,934	$	23,916	$	32,372	$	32,171

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


	December 31, 2024		December 31, 2023
Pledged for deposits	$	—	$	—
Pledged for borrowings and other	23,916		30,730
Total pledged	$	23,916	$	30,730

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

DEPOSITS - Deposits by Type (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Banking and Thrift, Interest [Abstract]
Noninterest-bearing	$ 11,142	$ 10,053
Interest-bearing:
Checking	103,978	11,456
Money market	62,001	15,803
Savings	386,680	259,152
Time deposits	409,251	167,041
Interest-bearing	961,910	453,452
Total deposits from related parties and their affiliated companies	973,052	463,505
Time deposits, money market, and interest-bearing checking obtained through brokers	27,100	53,548
Aggregate amount of deposit accounts that exceeded the FDIC limit	140,679	66,511
Demand deposit overdrafts reclassified as loan balances	$ 17	$ 53

BORROWINGS - Interest Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Medium-term Notes
Debt Instrument [Line Items]
Interest expense	$ 52,423	$ 51,890	$ 26,325

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

SUBSEQUENT EVENTS (Details) - Subsequent Event - Newtek Technology Solutions, Inc. - Disposal Group, Disposed of by Sale, Not Discontinued Operations shares in Millions, $ in Millions	Jan. 02, 2025 USD ($) shares
Subsequent Event [Line Items]
Consideration	$ 4.0
Consideration (in shares) \| shares	4.0
Earn-out receivable	$ 5.0

INVESTMENTS - Securities Settled or Sold (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Investments, Debt and Equity Securities [Abstract]
Securities sold or settled, number \| loan	5	0
Securities sold or settled \| $	$ 42,500	$ 0

LEASES - Operating Lease Liability Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Leases [Abstract]
Year one	$ 2,383
Year two	2,355
Year three	798
Year four	242
Year five	249
Thereafter	2,237
Total	8,264
Less: Imputed interest	(1,766)
Present value of future minimum lease payments	$ 6,498	$ 6,952

NEWTEKONE, INC. - PARENT COMPANY ONLY - Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Other assets	$ 60,636	$ 56,102
Total assets	2,059,912	1,429,513
LIABILITIES AND SHAREHOLDERS’ EQUITY
Balances due to subsidiaries and related institutions	21,532	23,796
Total liabilities	1,763,630	1,180,467
Preferred stock	19,738	19,738
Common stock	526	492
Additional paid-in capital	218,266	200,913
Accumulated other comprehensive income (loss), net of income taxes	(21)	(148)
Retained earnings	57,773	28,051
Total shareholders’ equity	296,282	249,046	$ 375,358	$ 403,887
Total liabilities and shareholders' equity	2,059,912	1,429,513
Parent Company
ASSETS
Cash and balances due from depository institutions:	19,123	13,871
Loans and lease financing receivable	5,715	4,786
Investments	699,059	392,519
Premises and fixed assets (including capitalized leases)	0	64
Other assets	9,617	20,159
Total assets	733,514	431,399
LIABILITIES AND SHAREHOLDERS’ EQUITY
Borrowings with a remaining maturity of one year or less:	79,856	38,124
Other borrowed money with a remaining maturity of more than one year	325,418	253,888
Other liabilities	22,083	13,163
Balances due to subsidiaries and related institutions	9,876	46,332
Total liabilities	437,233	351,507
Preferred stock	19,738	19,493
Common stock	525	490
Additional paid-in capital	218,266	314,187
Accumulated other comprehensive income (loss), net of income taxes	(21)	(148)
Retained earnings	57,773	(254,130)
Total shareholders’ equity	296,281	79,892
Total liabilities and shareholders' equity	$ 733,514	$ 431,399

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2024	Mar. 14, 2025	Jun. 30, 2024
Document Information [Line Items]
Document Type	10-K
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2024
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Securities Act File Number	814-01035
Entity Registrant Name	NEWTEKONE, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	46-3755188
Entity Address, Address Line One	4800 T Rex Avenue
Entity Address, Address Line Two	Suite 120
Entity Address, City or Town	Boca Raton
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33431
City Area Code	212
Local Phone Number	356-9500
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Document Financial Statement Error Correction [Flag]	false
Entity Public Float			$ 303.9
Entity Common Stock, Shares Outstanding (in shares)		26,290,668
Entity Central Index Key	0001587987
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Common Stock, par value $0.02 per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.02 per share
Trading Symbol	NEWT
Security Exchange Name	NASDAQ
5.50% Notes due 2026
Document Information [Line Items]
Title of 12(b) Security	5.50% Notes due 2026
Trading Symbol	NEWTZ
Security Exchange Name	NASDAQ
8.00% Notes due 2028
Document Information [Line Items]
Title of 12(b) Security	8.00% Notes due 2028
Trading Symbol	NEWTI
Security Exchange Name	NASDAQ
2029 8.50% Notes
Document Information [Line Items]
Title of 12(b) Security	8.50% Notes due 2029
Trading Symbol	NEWTG
Security Exchange Name	NASDAQ
2029 8.625% Notes
Document Information [Line Items]
Title of 12(b) Security	8.625% Notes due 2029
Trading Symbol	NEWTH
Security Exchange Name	NASDAQ

INVESTMENTS - Joint Venture Summarized Financial Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Investment Company, Balance Sheet Items [Abstract]
Cash	$ 6,941	$ 15,398
Restricted cash	28,226	30,919
Other assets	60,636	56,102
Total assets	2,059,912	1,429,513
Total liabilities	1,763,630	1,180,467
Net assets	296,282	249,046	$ 375,358	$ 403,887
Total liabilities and shareholders' equity	2,059,912	1,429,513
Investment Company, Income and Expense [Abstract]
Net investment income (loss)			(6,476)
Unrealized appreciation (depreciation) on investments	10,712	3,219	24,321
Realized gain (loss) on derivative transactions			445
Unrealized (loss) gain on derivative transactions	1,344	(699)	183
Net increase in net assets resulting from operations	50,853	47,329	32,311
Newtek Conventional Lending, LLC
Investment Company, Balance Sheet Items [Abstract]
Cash	587	612
Restricted cash	5,513	3,298
Investments in loans, at fair value	53,895	70,083
Cost	52,751	68,404
Other assets	1,737	1,614
Total assets	61,732	75,607
Securitization notes payable	25,322	38,805
Other liabilities	867	905
Total liabilities	26,189	39,710
Net assets	35,543	35,897
Total liabilities and shareholders' equity	61,732	75,607
Investment Company, Income and Expense [Abstract]
Interest and other income	4,984	6,160	6,966
Total expenses	1,797	2,524	2,916
Net investment income (loss)	3,187	3,636	4,050
Unrealized appreciation (depreciation) on investments	(536)	1,869	(4,494)
Net increase in net assets resulting from operations	2,651	5,505	(444)
Newtek-TSO JV
Investment Company, Balance Sheet Items [Abstract]
Cash	1,780	4,401
Restricted cash	18,399	1,183
Investments in loans, at fair value	183,084	66,689
Cost	173,654	62,695
Other assets	5,112	1,374
Total assets	208,375	73,647
Bank notes payable	0	29,636
Securitization notes payable	140,224	0
Other liabilities	427	1,092
Total liabilities	140,651	30,728
Net assets	67,724	42,919
Total liabilities and shareholders' equity	208,375	73,647
Investment Company, Income and Expense [Abstract]
Interest and other income	17,964	3,823	101
Total expenses	9,813	4,430	385
Net investment income (loss)	8,151	(607)	(284)
Unrealized appreciation (depreciation) on investments	5,438	2,580	1,412
Realized loss on investments	0	(16)	0
Realized gain (loss) on derivative transactions	(391)	399	0
Unrealized (loss) gain on derivative transactions	694	(911)	218
Net increase in net assets resulting from operations	$ 13,892	$ 1,445	$ 1,346

BORROWINGS - Outstanding Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 11, 2024	Sep. 16, 2024	May 30, 2024	Dec. 31, 2023	Aug. 31, 2023	Jan. 23, 2023	Dec. 31, 2021	May 20, 2021	Feb. 16, 2021	Jan. 31, 2021	Oct. 31, 2019	Jul. 25, 2019	Nov. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Weighted Avg Interest Rate	7.22%				7.04%
Webster Note - MWI \| Line of Credit
Debt Instrument [Line Items]
Principal balance	$ 32,894				$ 36,881
Unamortized deferred financing costs	(206)				(253)
Net carrying amount	$ 32,688				$ 36,628
Weighted Avg Interest Rate	7.30%				7.94%
Capital One Facilities \| Line of Credit
Debt Instrument [Line Items]
Principal balance	$ 21,300				$ 16,300
Unamortized deferred financing costs	(108)				(220)
Net carrying amount	21,192				16,080
Deutsche Bank Line of Credit \| Line of Credit
Debt Instrument [Line Items]
Principal balance	54,800				6,900
Unamortized deferred financing costs	(764)				(101)
Net carrying amount	$ 54,036				$ 6,799
Weighted Avg Interest Rate	7.57%				10.04%
One Florida line of credit - SP3 \| Line of Credit
Debt Instrument [Line Items]
Principal balance	$ 23,075				$ 375
Unamortized deferred financing costs	(64)				(118)
Net carrying amount	$ 23,011				$ 257
Weighted Avg Interest Rate	8.50%				9.50%
2024 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 0				$ 38,250				$ 10,000	$ 5,000			$ 55,000
Unamortized deferred financing costs	0				(126)
Net carrying amount	$ 0				$ 38,124
Weighted Avg Interest Rate	5.75%				5.75%								5.75%
2025 5.00% Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 30,000				$ 30,000
Unamortized deferred financing costs	(87)				(437)
Net carrying amount	$ 29,913				$ 29,563
Weighted Avg Interest Rate	5.00%				5.00%
2025 8.125% Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance					$ 50,000		$ 50,000
Unamortized deferred financing costs					(567)
Net carrying amount					$ 49,433
Weighted Avg Interest Rate	8.125%	8.125%			8.125%		8.125%
2026 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 115,000				$ 115,000						$ 115,000
Unamortized deferred financing costs	(718)				(1,436)
Net carrying amount	$ 114,282				$ 113,564
Weighted Avg Interest Rate	5.50%				5.50%						5.50%
2027 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 50,000
Unamortized deferred financing costs	(56)
Net carrying amount	$ 49,944
Weighted Avg Interest Rate	8.125%
2028 Notes (8.00%) \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 40,000				$ 40,000	$ 40,000
Unamortized deferred financing costs	(1,274)				(1,622)
Net carrying amount	$ 38,726				$ 38,378
Weighted Avg Interest Rate	8.00%				8.00%	8.00%
2029 8.50% Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 71,875			$ 71,900
Unamortized deferred financing costs	(2,253)
Net carrying amount	$ 69,622
Weighted Avg Interest Rate	8.50%			8.50%	8.50%
2029 8.625% Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 75,000		$ 75,000
Unamortized deferred financing costs	(2,338)
Net carrying amount	$ 72,662
Weighted Avg Interest Rate	8.625%		8.625%		8.625%
Securitization Trusts \| Secured Debt
Debt Instrument [Line Items]
Principal balance	$ 189,231				$ 296,223			$ 103,400				$ 118,900		$ 108,600	$ 75,400
Unamortized deferred financing costs	(2,596)				(4,111)
Net carrying amount	$ 186,635				$ 292,112
Weighted Avg Interest Rate	7.32%				7.84%

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2024

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES:

Use of Estimates in the Preparation of Financial Statements

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are complete. Actual results could differ from those estimates.

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 December 31, 2024, cash deposits in excess of insured amounts totaled $30.3 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 December 31, 2024.

Restricted cash

Restricted cash includes amounts due on SBA loan-related remittance s 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. As of December 31, 2024 and 2023, total restricted cash was $28.2 million and $30.9 million, respectively.

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 and due from banks, restricted cash, and interest bearing deposits in banks as of December 31, 2024 and 2023:


	December 31, 2024		December 31, 2023
Cash and due from banks	$	6,941	$	15,398
Restricted cash	28,226		30,919
Interest bearing deposits in banks	346,207		137,689
Total cash and cash equivalents	$	381,374	$	184,006


	December 31, 2024		December 31, 2023
Cash held at Federal Reserve Bank1	$	345,680	$	137,434
Cash held at other financial institutions	35,694		46,572
Total cash and cash equivalents	$	381,374	$	184,006

1 Subject to changes in the Federal Funds rate set by the Federal Open Market Committee

Debt securities, available for sale, at fair value

The Company’s securities portfolio primarily consists of available for sale debt securities held by Newtek Bank that are classified as “available for sale” and carried at their estimated fair value, with any unrealized gains or losses, net of taxes, reported as accumulated other comprehensive income or loss in stockholders’ equity. The fair values of our instruments are affected by changes in market interest rates and credit spreads. In general, as interest rates rise and/or credit spreads widen, the fair value of instruments will decline. As interest rates fall and/or credit spreads tighten, the fair value of instruments will rise. The Company evaluates available-for-sale instruments in unrealized loss positions at least quarterly to determine if an allowance for credit losses is required.

Purchases and sales of debt securities are accounted for on a trade-date basis.

Loans

Held for Investment

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are classified as held for investment.

At amortized cost, net of deferred fees and costs: Loans are reported at their principal amount outstanding, net of charge-offs, deferred origination costs and fees and purchase premiums and discounts. Loan origination and commitment fees and certain direct and indirect costs incurred in connection with loan originations are deferred and amortized to income over the life of the related loans as an adjustment to yield. Premiums or discounts on purchased portfolios are amortized or accreted to income using the level yield method over the remaining period to contractual maturity. Currently, all LHI at amortized cost, net of deferred fees and costs, are originated and carried at Newtek Bank and have a weighted average life of five years. Newtek Bank originates SBA 7(a) loans, under its PLP status, and typically sells the guaranteed portions and holds the unguaranteed portions for investment. Newtek Bank also holds CRE and C&I loans for investment.

At fair value: 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. 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.) Refer to the “Fair Value and the Fair Value Option” section below for further information on loans HFI carried at FV under the FV option.

Held for Sale

Management designates loans as HFS based on its intent to sell loans, or portions of loans, in established secondary markets or to participant banks and credit unions. Salability requirements of government guaranteed portions include, but are not limited to, full disbursement of the loan commitment amount. The Company occasionally transfers loans between the HFS and HFI classifications based on its intent and ability to hold or sell loans. Management’s intent to sell may be impacted by secondary market conditions, loan credit quality, or other factors.

At lower of amortized cost basis or fair value: Both mortgage and non-mortgage loans classified as HFS are carried at the LCM. If the amortized cost basis of a loan exceeds FV, a valuation allowance should be established for the difference. Currently, HFS loans at LCM are carried at Newtek Bank. This includes the government guaranteed portion of SBA 7(a) loans and SBA 504 loans. Management may also make a determination to market for sale certain CRE and C&I loans on a loan by loan basis.

At fair value: The Company originates ALP loans (formerly referred to as our nonconforming conventional loans), which are either HFS or HFI, via its nonbank subsidiary and joint ventures. ALP loans are carried at FV. The Company also 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. ALP loans are held at NALH, NCL JV, and TSO JV and are also accounted for under the FV option. Additionally, the existing government guaranteed portion of SBA 7(a) loans held at NSBF are also HFS at FV. Refer to the “Fair Value and the Fair Value Option” section below for further information on loans HFS carried at FV under the FV option.

Fair Value and the Fair Value Option

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. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). The levels of the fair value hierarchy are as follows:

Level 1Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets.

Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, derivative contracts and loans held-for-sale.

Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing assets, warrant liabilities, joint ventures, guaranteed loans held at fair value, and highly structured or long-term derivative contracts.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company assesses the levels of assets and liabilities at each measurement date. There were no transfers to or from Level 3 of the fair value hierarchy for assets and liabilities during the year ended December 31, 2024 or 2023.

Level 1 investments were valued using quoted market prices. Level 2 investments were valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities.

The Company has two joint venture investments, TSO JV and NCL JV. The Company uses a discounted cash flow methodology and adjusts the NAV of the entity by a fair value adjustment for the fixed rate debt liability.

Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded.

The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded. In addition recent changes in inflation and base interest rates, supply chain disruptions, significant market volatility, risk of recession, recent economic and market events, unrelated bank failures and declines in depositor confidence in depository institutions, the ongoing war between Russia and Ukraine and general uncertainty surrounding the financial and political stability of the United States, United Kingdom, the European Union and China could further negatively impact the fair value of the Company’s investments after December 31, 2024, in addition to other circumstances and events that are not yet known.

The Company applies fair value accounting to certain of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurement (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions reflect those that management believe market participants would use in pricing the financial instrument at the measurement date.

The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value was greatest for financial instruments classified as Level 3.

Any changes to the valuation methodology are reviewed by management to confirm that the changes are appropriate. As markets change, new products develop and the pricing for products becomes more or less transparent, the Company will continue to refine its valuation methodologies. See further description of fair value methodology in NOTE 10—FAIR VALUE MEASUREMENTS.

Loans for which the FV option were elected are measured at FV and classified as either HFS or HFI, as outlined above. Not electing FV generally results in a larger discount being recorded on the date of the sale. This discount will subsequently be accreted into interest income over the underlying loan’s remaining term using the effective interest method. Management made this election in alignment with its ongoing effort to reduce volatility and drive more predictable revenue. In accordance with accounting standards, any loans for which FV was previously elected continue to be measured as such. Interest income is recognized in the same manner on loans reported at FV as on non-FV loans, except in regard to origination fees and costs which are recognized immediately upon FV election. The changes in FV of loans are reported in noninterest income as Net gain (loss) on loans accounted for under the fair value option. FV of loans includes adjustments for historical credit losses, market liquidity, and economic conditions.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, reflecting assumptions that a market participant would use when pricing an asset or liability. In some cases, the estimation of fair values requires management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and are subject to change.

Allowance for Credit Losses – Loans

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 commercial loans.

The discounted cash flow (“DCF”) method is used to estimate expected credit losses for all loan portfolio segments measured on a collective (pool) basis. For each loan segment, cash flow projections are generated at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, probability of default, and loss given default. The modeling of prepayment speeds is based on a combination of historical internal data and peer data.

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: 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: 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): The SBA 7(a) portfolio includes loans originated under the federal SBA 7(a) Program. 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’s 7(a) lending 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’s loan program requirements. The guaranteed portion of the loans are HFS and carried at LCM and therefore are not subject to CECL. The unguaranteed portion of the loans that are held on balance sheet at amortized cost are subject to CECL. In the context of CECL, these SBA 7(a) loans are held at Newtek Bank.

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 $50 thousand. 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 December 31, 2024 and 2023, 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.

Settlement Receivable

Settlement receivable represents amounts due from third parties for guaranteed portions of SBA 7(a) loans which have been sold at year-end but have not yet settled. The guaranteed portion of SBA 7(a) principal balances that have been sold but not yet settled as of December 31, 2024 and 2023 was $47.4 million and $56.5 million, respectively. The settlement receivable also includes $5.0 million and $5.7 million of premiums, which have been recognized in Net Gains on Sales of Loans as of December 31, 2024 and 2023, respectively.

Assets Held for Sale and Liabilities Directly Associated with Assets Held for Sale

The Company classifies assets and related liabilities as held for sale when: (i) management has committed to a plan to sell the disposal group, (ii) the disposal group is available for immediate sale, (iii) there is an active program to locate a buyer, (iv) the sale and transfer of the disposal group is probable within one year, (v) the disposal group is being actively marketed for sale at price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes will be made to the plan to sell the disposal group.

Assets and liabilities held for sale are presented separately within the consolidated balance sheets with any adjustments necessary to measure the disposal group at the lower of its carrying value or fair value less costs to sell. Depreciation of property and equipment and amortization of intangible and right-of-use assets are not recorded while these assets are classified as held for sale. For each period the disposal group remains classified as held for sale, its recoverability is reassessed and any necessary adjustments are made to its carrying value. Refer to NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE for a discussion of assets and liabilities associated with assets held for sale at December 31, 2024.

Goodwill and Intangible Assets

Goodwill is an indefinite lived asset, which is not amortized and is instead subject to impairment testing, at least annually. Intangible assets, which are the banking core deposits intangibles, have finite lives are amortized over an estimated useful life of 120 months. (See NOTE 8—GOODWILL AND INTANGIBLE ASSETS.)

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.

Leases - Right of use assets and lease liabilities

Under ASC 842, operating lease expense is generally recognized on a straight-line basis over the term of the lease. The Company has entered into operating lease agreements for office space with remaining contractual terms up to fifteen years, some of which include renewal options that extend the leases for up to 10 years. These renewal options are not considered in the remaining lease term unless it is reasonably certain the Company will exercise such options. The operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Transfers and Servicing of Financial Assets

For a transfer of financial assets to be considered a sale, the transfer must meet the sale criteria of ASC 860, which, at the time of the transfer, requires that the transferred assets qualify as recognized financial assets and the Company surrender control over the assets. Such surrender requires that the assets be isolated from the Company, even in bankruptcy or other receivership, the purchaser have the right to pledge or sell the assets transferred and the Company not have an option or obligation to reacquire the assets.

Assets related to transactions that do not meet ASC Topic 860 — Transfers and Servicing (“ASC Topic 860”) requirements for accounting sale treatment are reflected in the Company’s consolidated statements of assets and liabilities as investments and the sale proceeds are recognized as a liability.

Assets owned by securitization trusts are included in the Company’s consolidated financial statements. The creditors of the special purpose entities have received security interests in such assets and such assets are not intended to be available to the creditors of the Company. From 2010 through December 31, 2024, NSBF engaged in thirteen (13) securitizations of the unguaranteed portions of its SBA 7(a) loans. A securitization uses a special purpose entity (the “Trust”), which is considered a variable interest entity (VIE). 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 vehicles, based on its power to direct activities through its role as servicer for the Trusts and its obligation to absorb losses and right to receive benefits, it needed to consolidate the Trusts. The Company therefore consolidates the entities using the carrying amounts of the Trusts’ assets and liabilities and reflects the assets in SBA 7(a) Unguaranteed Loans and reflects the associated financing in Notes Payable - Securitization trusts on the Consolidated Statements of Assets and Liabilities.

The Company accounts 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 from the guaranteed portions of SBA 7(a) loans they originate and sell. The Company has also recorded servicing assets/liabilities on loans sold where the Company retained an obligation to service the loan sold. 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 initially measured at FV and subsequently 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.

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.

Due to Participants

Due to participants represents amounts due to third party investors in the SBA guaranteed portion of SBA 7(a) and PPP loans. When the Company receives principal payments, including PPP loan forgiveness, after the loan has been either partially or fully sold to the participant, the remittances received by the Company are either owed in part or in full to the participant and amounts are recorded as a liability on the consolidated statements of financial condition.

Dividends to Shareholders

Dividends and distributions to the Company's stockholders are recorded on the declaration date. The timing and amount to be paid out as a dividend or distribution is determined by the Company's Board each quarter.

Loan Interest Income Recognition and Changes in Fair Value

Held for Investment

At Amortized Cost, net of deferred loan fees and costs: Interest on loans is generally recognized on a daily accrual basis at the applicable interest rate. Interest is not accrued on loans that are more than 90 days delinquent on payments, and any interest that was accrued but unpaid on such loans is reversed from interest income at that time, or when deemed to be uncollectible. Interest subsequently received on such loans is recorded as interest income or alternatively as a reduction in the amortized cost of the loan if there is significant doubt as to the collectability of the unpaid principal balance. Loans are returned to accrual status when principal and interest amounts contractually due are brought current and future payments are reasonably assured.

At FV: In accordance with accounting standards, any loans for which FV was previously elected continue to be measured as such. Interest income is recognized in the same manner on loans reported at FV as on non-FV loans, except in regard to origination fees and costs which are recognized immediately upon FV election. The changes in FV of loans are reported within noninterest income as Net gain (loss) on loans accounted for under the fair value option. FV of loans includes adjustments for historical credit losses, market liquidity, and economic conditions. The Company values performing accrual loans on a pool basis. Loans that have experienced credit deterioration are valued individually based on resolution plans developed by the Company based on timing and amount of expected future cash flows from all sources of repayment, including both cash flows of the borrower as a going concern as well as the liquidation of collateral and pursuit of personal guarantees.

Held for Sale

At LCM: Net unrealized losses, if any, on loans without a FV election, are recognized through a valuation allowance and recorded as a charge to Other noninterest income. The cost basis of loans HFS includes unamortized loan origination fees and costs. The pro-rata portion, based on the percent of the total loan sold, of the remaining deferred fees and costs are recognized as an adjustment to the gain on sale. Not electing FV generally results in a larger discount being recorded on the origination date. This discount will subsequently be accreted into interest income over the underlying loan’s remaining term using the effective interest method. Management made this change of election in alignment with its ongoing effort to reduce volatility and drive more predictable revenue.

If the transfer is accounted for as a sale, the loans are derecognized from the Company’s consolidated balance sheet and a gain or loss is recognized in net gains on sales of loans line item on the consolidated statements of income. The gain on sale recognized in income is the sum of the premium on the guaranteed loan and the FV of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan retained. If the transfer does not satisfy the aforementioned control criteria, the transaction is recorded as a secured borrowing with the transferred loans remaining on the Company’s consolidated balance sheet and proceeds recognized as a liability.

Non-Interest Income

Dividend income

Dividend income is recognized on an accrual basis for equity securities to the extent that such amounts are expected to be collected or realized. In determining the amount of dividend income to recognize, if any, from cash distributions on equity securities, we assess many factors, including the joint ventures’ and other non-controlled equity investments’ cumulative undistributed income and operating cash flow. Cash distributions from equity securities received in excess of such undistributed amounts are recorded first as a reduction of our investment and then as a realized gain on investment.

Servicing income

The Company earns servicing income related to the guaranteed portions of SBA 7(a) and ALP loans sold into the secondary market. These recurring servicing fees are earned and recorded daily. Servicing income is earned for the full term of the loan or until the loan is repaid.

Technology and IT support income

Our technology segment (NTS) sells a range of services and goods, including managed IT services, product and procurement services, professional services, webhosting, secure private cloud hosting, and backup and disaster recovery. Our technology segment sells hardware and software products on both a stand-alone basis without any services and as solutions bundled with services. When our technology segment provides a combination of hardware and software products with the provision of services, it separately identifies its performance obligations under its contract with the customer as the distinct goods (hardware and/or software products) or services that will be provided. The total transaction price for an arrangement with multiple performance obligations is allocated at contract inception to each distinct performance obligation in proportion to its stand-alone selling price. The stand-alone selling price is the price at which it would sell a promised good or service separately to a customer. Our technology segment estimates the price based on observable inputs, including direct labor hours and allocatable costs, or uses observable stand-alone prices when they are available. Our technology segment’s professional services include the design and implementation of a wide range of IT products and services. Such services are typically provided by us or third-party sub-contractor vendors on a stand-alone basis.

Revenue is measured based on the consideration specified in a contract with a customer. Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. When a cloud-based service includes both on-premises software licenses and cloud services, judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the cloud service and recognized over time. Certain cloud services depend on a significant level of integration, interdependency, and interrelation between the desktop applications and cloud services, and are accounted for together as one performance obligation. Revenue from such cloud services is recognized ratably over the period in which the cloud services are provided. We otherwise recognize revenue when it satisfies a performance obligation by transferring control of a product or service or by arranging for the sale of a vendor’s products or service to a customer. We recognize revenue from sale of services as we perform the underlying services, typically based on time and materials basis based upon hours incurred for the performance completed to date for which we have the right to consideration. We recognize revenue on sales of goods at a point in time when customer takes control of goods, which typically occurs when title and risk of loss have passed to the customer. We recognize revenue on a gross basis for each of its services and product offerings principally because it is primarily responsible for fulfilling the promise to provide specified goods or service and it has discretion in establishing the price of specified good or service.

We classify our right to consideration in exchange for deliverables as either a receivable or a contract asset (unbilled receivable). A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). For example, we recognize a receivable for revenue related to our transaction or volume-based contracts when earned regardless of whether amounts have been billed. We present such receivables in accounts receivable, net in our consolidated balance sheets We maintain an allowance for credit losses to provide for the estimated amount of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables, judgment, and other applicable factors.

A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets are presented in current and other assets in our consolidated balance sheets and primarily relate to unbilled amounts on fixed-price contracts utilizing the output method of revenue recognition. Our contract assets and liabilities are reported at the end of each reporting period. The difference between the opening and closing balances of our contract assets and deferred revenue primarily results from the timing difference between our performance obligations and the customer’s payment. We receive payments from customers based on the terms established in our contracts, which may vary generally by contract type.

Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. The difference between the opening and closing balances of our contract assets and deferred revenue primarily results from the timing difference between our performance obligations and the customer’s payment. We receive payments from customers based on the terms established in our contracts, which may vary generally by contract type.

On January 2, 2025, the Company completed the NTS Sale to Paltalk. Refer to “NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION” - Sale of NTS.

Electronic payment processing income

Revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To achieve this core principle, the Company applies the following five steps:

1. Identify the contract with a customer

2. Identify the performance obligations in the contract

3. Determine the transaction price

4. Allocate the transaction price to the performance obligations in the contract

5. Recognize revenue when or as the Company satisfies a performance obligation

Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities.

NMS’s revenue is primarily derived from electronic payment processing and related fee income.

Electronic payment processing and fee income is derived from NMS’s electronic processing of credit and debit card transactions that are authorized and captured through third-party networks. Typically, merchants are charged for these processing services by applying a percentage to the dollar amount of each transaction plus a flat fee per transaction. Certain merchant customers are charged miscellaneous fees, including fees for handling charge-backs or returns, monthly minimum fees, statement fees and fees for other miscellaneous services. Revenues derived from the electronic processing of MasterCard®, Visa®, American Express® and Discover® sourced credit and debit card transactions are reported net of certain transaction-related costs.

NMS's performance obligations are to stand ready to provide holistic electronic payment processing services consisting of a series of distinct elements that are substantially the same and have the same pattern of transfer over time. NMS’s promise to its customers is to perform an unknown or unspecified quantity of tasks and the consideration received is contingent upon the customers’ use (i.e., number of payment transactions processed, number of cards on file, etc.); as such, the total transaction price is variable. The Company allocates the variable fees charged to the day in which it has the contractual right to bill under the contract.

ASU 2014-09, "Revenues from Contracts with Customers (“Topic 606”)" (“ASC 606”) requires that the Company determine for each customer arrangement whether revenue should be recognized at a point in time or over time. For the years ended December 31, 2024 and and 2023, substantially all of the Company’s revenues were recognized at a point in time.

ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations; however, as permitted by ASC 606, the Company has elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. As described above, the Company’s most significant performance obligations consist of variable consideration under a stand-ready series of distinct days of service. Such variable consideration meets the specified criteria for the disclosure exclusion; therefore, the majority of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied is variable consideration that is not required for this disclosure. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material.

Receivable fees: Receivable fees are derived from the funding (purchase) of receivables from the Company’s finance clients. The Company recognizes revenue on the date receivables are purchased at a percentage of face value as agreed to by the client. The Company also has arrangements with certain of its clients whereby it purchases the client’s receivables and charges a fee at a specified rate based on the amount of funds advanced against such receivables. The funds provided are collateralized and the income is recognized as earned which occurs as time passes.

Realized gains or losses on joint ventures: Realized gains or losses on joint ventures are measured by the difference between the net proceeds from the disposition and the cost basis of investment, without regard to unrealized gains or losses previously recognized. The Company reports current period changes in the fair value of joint venture investments as a component of the net change in unrealized appreciation (depreciation) on joint ventures in the consolidated statements of operations.

Non-Interest Expense

Electronic Payment Processing Costs

Electronic payment processing costs consist principally of costs directly related to the processing of merchant sales volume, bank processing fees, amounts paid to NMS’ sponsoring banks and costs paid to third-party processing networks. Such costs are recognized at the time the merchant transactions are processed or when the services are performed.

In addition to costs directly related to the processing of merchant sales volume, electronic payment processing costs also include residual expenses. Residual expenses represent fees paid to third-party sales referral sources. Residual expenses are paid in accordance with contracted terms. These are generally linked to revenues derived from merchants successfully referred to the Company and that begin using the Company for merchant processing services. Such residual expenses are recognized in the Company’s consolidated statements of income.

Technology Services Expenses

Costs of services and goods sold include product costs, outbound and inbound freight costs, and direct time and materials in delivering service and goods to customers.

Selling and administrative expenses include salaries and wages for staff who are not directly associated with delivering services, bonuses and incentives, employee-related expenses, facility-related expenses, marketing and advertising expense, depreciation of property and equipment, professional fees, amortization of intangible assets, provisions for losses on accounts receivable and other operating expenses.

Stock – Based Compensation

The Company accounts for its equity-based compensation plans using the fair value method, as prescribed by ASC Topic 718 – Stock Compensation. Accordingly, for restricted stock awards, the Company measures the grant date fair value based upon the market price of the Company’s Common Stock on the date of the grant and amortizes this fair value to salaries and benefits ratably over the requisite service period or vesting term on a straight line basis. Forfeitures are recognized as incurred.

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 21—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 2021 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 statement of income.

Formerly, as a RIC ending with the Company’s December 31, 2022 fiscal year end, the Company was not subject to corporate level income tax. Beginning on January 1, 2023 with the start of the 2023 fiscal year, the Company no longer qualifies as a RIC and is subject to corporate level income tax. See NOTE 21—INCOME TAXES.

Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management has determined that the Company has five reportable operating segments: Banking, NALH, Non-Bank SBA 7(a) Lending, Technology, and Payments as discussed more fully in NOTE 22—SEGMENTS. In determining the appropriateness of a segment definition, the Company considers the criteria of FASB ASC 280, Segment Reporting.

Business Combinations

Business combinations are accounted for under the acquisition method, in which the identifiable assets acquired and liabilities assumed are generally measured and recognized at fair value as of the acquisition date, with the excess of the purchase price over the fair value of the net assets acquired recognized as goodwill. Items such as acquired income-tax related balances are recognized in accordance with other applicable GAAP, which may result in measurements that differ from fair value. Business combinations are included in the consolidated financial statements from the respective dates of acquisition. Historical reporting periods reflect only the results of legacy Company operations. Acquisition-related costs are expensed in the period incurred and presented within the applicable non-interest expense category. Additional information regarding the Company’s acquisitions can be found within NOTE 3—BUSINESS COMBINATIONS, which relates to the 2023 acquisition of NBNYC. There were no acquisitions during 2024.

Recently Adopted Accounting Pronouncements

Current Expected Credit Losses (Topic 326): In June 2016, FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments (Topic 326) and in April 2019, the FASB issued ASU 2019-04 Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (collectively, “CECL”). CECL changed how entities measure potential credit losses for most financial assets and certain other instruments that are not measured at fair value. CECL replaced the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost. While ASU 2016-13 does not require any particular method for determining the CECL allowance, it does specify the allowance should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. CECL was effective for the Company beginning January 1, 2023; however, the Company continues to measure NSBF’s SBA 7(a) loan portfolio at fair value and intends to do so until the portfolio is completely runoff. Following the Acquisition on January 6, 2023, the Company owns and consolidates Newtek Bank, which applies CECL.

Fair Value Measurement (ASU 2022-03): In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820), which clarifies the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. ASU 2022-03 is effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. An entity that qualifies as an investment company under Topic 946 should apply the amendments in ASU No. 2022-03 to an investment in an equity security subject to a contractual sale restriction that is executed or modified on or after the date of adoption. The impact of these amendments was not material.

Improvements to Reportable Segment Disclosures (ASU 2023-07): In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The purpose of this guidance is to improve reportable segment disclosure, primarily through enhanced disclosures about significant segment expenses. This ASU requires that an entity disclose, on an interim and annual basis, significant segment expenses that are regularly provided to the CODM and are included within the reported measure of segment profit or loss. This ASU also requires an entity to disclose, on an interim and annual basis, other segment items by reportable segment, including a qualitative description of the composition of those items. This “other” category is defined as the difference between segment profit or loss and segment revenue less significant segment expenses. Entities are also required to disclose the title and position of the individual, or the name of the group or committee, identified as the CODM. The amendments are effective on January 1, 2024, for annual reporting, and January 1, 2025, for interim reporting, with early adoption permitted. The amendments must be applied using a retrospective approach. The Company adopted this guidance as of January 1, 2024 which resulted in enhanced disclosures of segment expenses within the consolidated financial statements beginning with its December 31, 2024 Form 10-K.

New Accounting Standards

Improvements to Income Tax Disclosures (ASU 2023-09): In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The purpose of this guidance is to enhance the rate reconciliation and income taxes paid disclosures. This ASU requires that an entity disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. For the state and local income tax category of the rate reconciliation, entities must disclose a qualitative description of the states and local jurisdictions that make up the majority (greater than 50 percent) of the category. For the income taxes paid disclosures, entities will be required to disclose, on an annual basis, the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes. The amendments are effective on January 1, 2025, with early adoption permitted. The amendments must be applied using either a prospective or retrospective approach. Management does not expect the impact of these amendments to be material.

Compensation—Stock Compensation (ASU 2024-01): In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This standard is effective for fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is 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.

Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (ASU 2024-03): In November 2024, the FASB issued ASU 2024-03, which 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. This ASU is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. 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.

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 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.

LOANS - Aging Status (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	$ 369,746	$ 469,801
Total Carried at Amortized Cost	621,651	336,305
Non- accrual	14,444	102
Deferred fees and costs	1,281	393
Allowance for credit losses	(30,233)	(12,574)	$ 0
Loans held for investment, at amortized cost, net	591,418	323,731
SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	380,981	163,918
Non- accrual	14,444	102
Allowance for credit losses	(28,488)	(10,852)
CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	191,831	163,803
Non- accrual	0	0
Allowance for credit losses	(1,430)	(1,408)	0
C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	47,558	8,191
Allowance for credit losses	(315)	(314)	$ 0
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	620,370	335,912
Performing \| 30-59 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	23,158	20,380
Performing \| 30-59 Days \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	11,264	3,637
Performing \| 30-59 Days \| CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	948
Performing \| 30-59 Days \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	275	0
Performing \| 30-59 Days \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	11,539	4,585
Performing \| 60-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	18,400	16,075
Performing \| 60-89 Days \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	9,046	311
Performing \| 60-89 Days \| CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 60-89 Days \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 60-89 Days \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	9,046	311
Performing \| 90-119 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	9,268	0
Performing \| 90-119 Days \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 90-119 Days \| CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 90-119 Days \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 90-119 Days \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 120+ Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	0	0
Performing \| 120+ Days \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 120+ Days \| CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 120+ Days \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 120+ Days \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| Total Past Due and Non-accrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	118,130	84,629
Performing \| Total Past Due and Non-accrual \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	42,016	4,700
Performing \| Total Past Due and Non-accrual \| CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	2,635	5,569
Performing \| Total Past Due and Non-accrual \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	275	0
Performing \| Total Past Due and Non-accrual \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	44,926	10,269
Performing \| Current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	251,616	385,172
Performing \| Current \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	338,965	159,218
Performing \| Current \| CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	189,196	158,234
Performing \| Current \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	47,283	8,191
Performing \| Current \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	575,444	325,643
Nonperforming
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	67,304	48,174
Nonperforming \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	21,706	752
Nonperforming \| CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	2,635	4,621
Nonperforming \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	0	0
Nonperforming \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	$ 24,341	$ 5,373

DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Breakdown of derivatives outstanding

The following is a breakdown of the derivatives outstanding as of December 31, 2024 and December 31, 2023:


	December 31, 2024							December 31, 2023
			Fair Value				Remaining			Fair Value				Remaining
Contract Type	Notional1		Asset2		Liability		Maturity (years)	Notional1		Asset		Liability3		Maturity (years)
5-year Treasury Futures	$	(153,049)	$	715	$	—	0.25 years	$	(27,869)	$	—	$	630	0.25 years

1 Shown as a negative number when the position is sold short.

2 Shown in Other assets in the accompanying Consolidated Statements of Financial Condition.

3 Shown in Accounts payable, accrued expenses, and other liabilities in the accompanying Consolidated Statements of Financial Condition.

Gains and losses on derivatives


	Year Ended
		December 31, 2024	December 31, 2023				December 31, 2022
Contract Type			Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)		Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)		Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)
5-year Treasury Futures			$	1,344	$	(51)	$	(699)	$	834	$	183	$	445

LEASES (Tables)

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Lease cost

The following table summarizes supplemental cash flow and other information related to our operating leases:


	Year Ended December 31,
		2024	2023	2022
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)		$2,874	$2,693	$1,886
Weighted-average remaining lease term - operating leases		5.87 years	2.88 years	4.41 years
Weighted-average discount rate - operating leases		5.94%	5.50%	4.73%
Total lease costs1		$3,115	$3,124	$1,000

1 Included in Other general and administrative costs on the consolidated statements of operations.

Lessee, operating lease, liability, maturity

The following table represents the maturity of the Company’s operating lease liabilities as of December 31, 2024:


Maturity of Lease Liabilities
2025	$	2,383
2026	2,355
2027	798
2028	242
2029	249
Thereafter	2,237
Total future minimum lease payments	$	8,264
Less: Imputed interest	(1,766)
Present value of future minimum lease payments	$	6,498

FAIR VALUE MEASUREMENTS - Fair Value Levels (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Assets:
Debt securities available-for-sale	$ 23,916	$ 32,171
Loans held for sale, at fair value	372,286	118,867
Loans held for investment, at fair value	369,746	469,801
Other real estate owned	3,764	1,110
Servicing asset	$ 22,062	29,336
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets
Asset	$ 715
Total assets measured at fair value	871,475	692,872
Liabilities:
Liabilities		$ 630
Derivative Liability, Statement of Financial Position [Extensible Enumeration]		Accounts payable, accrued expenses and other liabilities
Total liabilities measured at fair value	133	$ 771
Carrying Amount
Cash and due from banks	6,941	15,398
Restricted cash	28,226	30,919
Interest bearing deposits in banks	346,207	137,689
Debt securities available-for-sale, at fair value	23,916	32,171
Loans HFS, at FV	372,286	118,867
Loans held for sale, at LCM	58,803	56,607
Loans held for investment, at fair value	369,746	469,801
Loans held for investment, at amortized cost, net of deferred fees and costs	621,651	336,305
Federal Home Loan Bank and Federal Reserve Bank stock	3,585	3,635
Time deposits	409,251	167,041
Borrowings	708,041	644,122
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	23,916	32,171
Loans HFS, at FV	372,286	118,867
Loans HFS, at LCM	58,856	56,733
Loans HFI, at amortized cost, net of deferred fees and costs	668,687	337,133
Federal Home Loan Bank and Federal Reserve Bank stock	3,585	3,635
Time deposits	410,442	168,542
Borrowings	720,367	641,794
U.S. Treasury notes
Assets:
Debt securities available-for-sale	23,916	29,305
Government agency debentures
Assets:
Debt securities available-for-sale		2,866
Loans Held For Sale
Assets:
Loans held for sale, at fair value	372,286	118,867
Carrying Amount
Loans HFS, at FV	372,286	118,867
Loans Held for Investment
Assets:
Loans held for investment, at fair value	369,746	469,801
Carrying Amount
Loans held for investment, at fair value	369,746	469,801
Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	6,941	15,398
Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	28,226	30,919
Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	346,207	137,689
Equity warrants
Liabilities:
Equity warrants	133	141
Joint Ventures and Other Non-Control Investments
Assets:
Investments	57,678	41,587
Assets held for sale	21,308
Carrying Amount
Investments in loans, at fair value	57,678	41,587
Level 1
Assets:
Loans held for investment, at fair value	0	0
Other real estate owned	0	0
Servicing asset	0	0
Asset	0
Total assets measured at fair value	23,916	29,305
Liabilities:
Liabilities		0
Total liabilities measured at fair value	0	0
Carrying Amount
Loans held for investment, at fair value	0	0
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	23,916	29,305
Loans HFS, at FV	0	0
Loans HFS, at LCM	0	0
Loans HFI, at amortized cost, net of deferred fees and costs	0	0
Federal Home Loan Bank and Federal Reserve Bank stock	0	0
Time deposits	0	0
Borrowings	0	0
Level 1 \| U.S. Treasury notes
Assets:
Debt securities available-for-sale	23,916	29,305
Level 1 \| Government agency debentures
Assets:
Debt securities available-for-sale		0
Level 1 \| Loans Held For Sale
Assets:
Loans held for sale, at fair value	0	0
Carrying Amount
Loans HFS, at FV	0	0
Level 1 \| Loans Held for Investment
Assets:
Loans held for investment, at fair value	0	0
Carrying Amount
Loans held for investment, at fair value	0	0
Level 1 \| Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	6,941	15,398
Level 1 \| Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	28,226	30,919
Level 1 \| Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	346,207	137,689
Level 1 \| Equity warrants
Liabilities:
Equity warrants	0	0
Level 1 \| Joint Ventures and Other Non-Control Investments
Assets:
Investments	0	0
Assets held for sale	0
Carrying Amount
Investments in loans, at fair value	0	0
Level 2
Assets:
Loans held for investment, at fair value	0	0
Other real estate owned	0	0
Servicing asset	0	0
Asset	715
Total assets measured at fair value	715	2,866
Liabilities:
Liabilities		630
Total liabilities measured at fair value	0	630
Carrying Amount
Loans held for investment, at fair value	0	0
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	0	2,866
Loans HFS, at FV	0	0
Loans HFS, at LCM	0	0
Loans HFI, at amortized cost, net of deferred fees and costs	0	0
Federal Home Loan Bank and Federal Reserve Bank stock	3,585	3,635
Time deposits	410,442	168,542
Borrowings	306,549	187,555
Level 2 \| U.S. Treasury notes
Assets:
Debt securities available-for-sale	0	0
Level 2 \| Government agency debentures
Assets:
Debt securities available-for-sale		2,866
Level 2 \| Loans Held For Sale
Assets:
Loans held for sale, at fair value	0	0
Carrying Amount
Loans HFS, at FV	0	0
Level 2 \| Loans Held for Investment
Assets:
Loans held for investment, at fair value	0	0
Carrying Amount
Loans held for investment, at fair value	0	0
Level 2 \| Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	0	0
Level 2 \| Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	0	0
Level 2 \| Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	0	0
Level 2 \| Equity warrants
Liabilities:
Equity warrants	0	0
Level 2 \| Joint Ventures and Other Non-Control Investments
Assets:
Investments	0	0
Assets held for sale	0
Carrying Amount
Investments in loans, at fair value	0	0
Level 3
Assets:
Loans held for investment, at fair value	369,746	469,801
Other real estate owned	3,764	1,110
Servicing asset	22,062	29,336
Assets held for sale	21,308
Asset	0
Total assets measured at fair value	846,844	660,701
Liabilities:
Equity warrants	133	141
Liabilities		0
Total liabilities measured at fair value	133	141
Carrying Amount
Loans held for investment, at fair value	369,746	469,801
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	0	0
Loans HFS, at FV	372,286	118,867
Loans HFS, at LCM	58,856	56,733
Loans HFI, at amortized cost, net of deferred fees and costs	668,687	337,133
Federal Home Loan Bank and Federal Reserve Bank stock	0	0
Time deposits	0	0
Borrowings	413,818	454,239
Level 3 \| U.S. Treasury notes
Assets:
Debt securities available-for-sale	0	0
Level 3 \| Government agency debentures
Assets:
Debt securities available-for-sale		0
Level 3 \| Loans Held For Sale
Assets:
Loans held for sale, at fair value	372,286	118,867
Carrying Amount
Loans HFS, at FV	372,286	118,867
Level 3 \| Loans Held for Investment
Assets:
Loans held for investment, at fair value	369,746	469,801
Carrying Amount
Loans held for investment, at fair value	369,746	469,801
Level 3 \| Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	0	0
Level 3 \| Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	0	0
Level 3 \| Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	0	0
Level 3 \| Equity warrants
Liabilities:
Equity warrants	133	141
Level 3 \| Joint Ventures and Other Non-Control Investments
Assets:
Investments	57,678	41,587
Assets held for sale	21,308
Carrying Amount
Investments in loans, at fair value	$ 57,678	$ 41,587

BENEFIT PLANS - Narrative (Details) - USD ($) $ in Thousands, shares in Millions		12 Months Ended
	Jun. 14, 2023	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer match, percent		50.00%	50.00%	50.00%
Employer match of employee contributions, percent		0.02	0.02	0.02
Employer contribution		$ 500	$ 400	$ 100
Employee Stock Purchase Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares authorized (in shares)	0.2
Percentage of eligible compensation to withhold	15.00%
Fair market value of shares to be purchased	$ 25
Percentage of fair market value of common stock	85.00%

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2024
Audit Information [Abstract]
Auditor Firm ID	49
Auditor Name	RSM US LLP
Auditor Location	Hartford, Connecticut

LOANS - Nonaccrual Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual without Allowance	$ 9,899	$ 5,246
Nonaccrual with Allowance	14,444	102
ACL	7,019	102
SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual without Allowance	7,264	625
Nonaccrual with Allowance	14,444	102
ACL	7,019	102
CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual without Allowance	2,635	4,621
Nonaccrual with Allowance	0	0
ACL	$ 0	$ 0

BENEFIT PLANS - Unrecognized Compensation (Details) - Restricted Stock - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense	$ 5,929	$ 3,610
Remaining weighed-average period	1 year	1 year 8 months 12 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(02)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

+ Details

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	$ 1,040	$ 16,140
Accumulated Amortization	(373)	(11,905)
Total	667	4,235
Banking - Core Deposits
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	1,040	1,040
Accumulated Amortization	(373)	(197)
Total	667	843
Technology - Customer Lists¹ \| Payments
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	0	8,575
Accumulated Amortization	0	(8,562)
Total	0	13
Technology - Customer Lists¹ \| Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	0	6,525
Accumulated Amortization	0	(3,146)
Total	$ 0	$ 3,379

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 15—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 2027. Those office space leases which are for more than one year generally contain scheduled rent increases or escalation clauses. In addition, during 2024, the Company entered into one-year employment agreements with its named executive officers.

The following summarizes the Company’s obligations and commitments, as of December 31, 2024 for future minimum cash payments required under operating lease and employment agreements:


Year	Operating Leases		Employment Agreements1		Total
2025	$	2,383	$	902	$	3,285
2026	2,355		—		2,355
2027	798		—		798
2028	242		—		242
2029	249		—		249
Thereafter	2,237		—		2,237
Total	$	8,264	$	902	$	9,166

1 Employment agreements with certain of the Company’s named executive officers.

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.

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 December 31, 2024 and 2023, the Company had unfunded commitments as follows:


	December 31, 2024		December 31, 2023
SBA 7(a) loans	$	25,032	$	20,365
SBA 504 loans	72,557		81,023
C&I loans	9,542		13,150
ALP loans	—		10,877
Total unfunded commitments	$	107,132	$	125,415

The Company anticipates these commitments will be funded from the same sources it used to fund its other loan commitments.

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2024

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS

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 December 31, 2024 and 2023:


	December 31, 2024		December 31, 2023
Due to affiliated companies1	$	242	$	158
Due from affiliated companies2	—		7
Total due to/due from affiliated companies	$	242	$	151

1 Included within Accounts payable, accrued expenses, and other liabilities

2 Included within Other assets

Transactions with joint ventures and other non-control investments

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

The following table summarizes the income earned from our joint ventures for the years ended December 31, 2024, 2023 and 2022:


	Year Ended December 31,
		2024		2023		2022
Servicing income		$	1,997	$	1,240	$	840
Dividend income		1,503		1,641		339
Total income		$	3,500	$	2,881	$	1,179

Newtek Bank Deposits


	December 31, 2024		December 31, 2023
FDIC insured deposits	$	4,732	$	4,388
Non-FDIC insured deposits	1,098		1,167
Total deposits from related parties and their affiliated companies	$	5,830	$	5,555

Other Transactions with Related Parties

The nephew of the Chief Executive Officer of the Company is employed by one of the Company’s consolidated subsidiaries and earned annual compensation in excess of $125 thousand during 2024, 2023 and 2022. The sister of a Director and the Chief Admin Officer is employed by one of the Company’s consolidated subsidiaries and earned annual compensation in excess of $125 thousand during 2024 and 2023.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
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-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483326/850-10-50-1

+ Details

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Joint ventures, cost	$ 44,039	$ 38,660
Preferred stock, par value (in dollars per share)	$ 0.02	$ 0.02
Preferred stock, shares authorized (in shares)	20	20
Preferred stock, shares issued (in shares)	20	20
Preferred stock, shares outstanding (in shares)	20	20
Common stock, par value (in dollars per share)	$ 0.02	$ 0.02
Common stock, shares authorized (in shares)	199,980	199,980
Common stock, shares issued (in shares)	26,291	24,680
Common shares outstanding at end of period (in shares)	26,291	24,680

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITES (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Loan related remittances due to SBA and participants	$ 2,203	$ 3,577
Accrued payroll and related payables	332	1,349
Accrued interest	6,035	4,114
Funds in process to PMT's payroll customers	5,700	5,060
Loan processing, servicing and other loan related payables	3,185	3,793
SBA repair & denial reserve	3,573	3,063
Good faith deposits	1,499	893
Other	18,279	15,451
Total accounts payable, accrued expenses and other liabilities	$ 40,806	$ 37,300

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2024

Investments in and advances to affiliates

Transactions related to our joint ventures and other non-controlled investments for the years ended December 31, 2024 and 2023 were as follows:


Company	Fair Value at December 31, 2023		Purchases (Cost)		Return of Investment		Net Gains/(Losses)		Fair Value at December 31, 2024		Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC	$	19,400	$	—	$	—	$	(600)	$	18,800	$	1,503
Newtek TSO II Conventional Credit Partners, LP	21,459		25,642		(20,185)		11,184		38,100		—
Total Joint Ventures	$	40,859	$	25,642	$	(20,185)	$	10,584	$	56,900	$	1,503

Other Non-Control Investments
EMCAP Loan Holdings, LLC	$	368	$	—	$	(116)	$	68	$	320	$	16
Biller Genie Software, LLC	360		38		—		60		458		—
Total Other Non-Control Investments	$	728	$	38	$	(116)	$	128	$	778	$	16

Total Joint Ventures and Other Non-Control Investments	$	41,587	$	25,680	$	(20,301)	$	10,712	$	57,678	$	1,519


Company	Fair Value at December 31, 2022		Purchases (Cost)		Return of Investment		Net Gains/(Losses)		Fair Value at December 31, 2023		Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC	$	16,587	$	248	$	—	$	2,565	$	19,400	$	1,641
Newtek TSO II Conventional Credit Partners, LP	6,435		14,302		—		722		21,459		—
Total Joint Ventures	$	23,022	$	14,550	$	—	$	3,287	$	40,859	$	1,641

Other Non-Control Investments
EMCAP Loan Holdings, LLC	$	1,000	$	—	$	(564)	$	(68)	$	368	$	116
Biller Genie Software, LLC	360		—		—		—		360		—
Total Other Non-Control Investments	$	1,360	$	—	$	(564)	$	(68)	$	728	$	116

Total Joint Ventures and Other Non-Control Investments	$	24,382	$	14,550	$	(564)	$	3,219	$	41,587	$	1,757

The following table summarizes the amounts due to and due from affiliated companies as of December 31, 2024 and 2023:


	December 31, 2024		December 31, 2023
Due to affiliated companies1	$	242	$	158
Due from affiliated companies2	—		7
Total due to/due from affiliated companies	$	242	$	151

1 Included within Accounts payable, accrued expenses, and other liabilities

2 Included within Other assets

The following table summarizes the income earned from our joint ventures for the years ended December 31, 2024, 2023 and 2022:


	Year Ended December 31,
		2024		2023		2022
Servicing income		$	1,997	$	1,240	$	840
Dividend income		1,503		1,641		339
Total income		$	3,500	$	2,881	$	1,179


	December 31, 2024		December 31, 2023
FDIC insured deposits	$	4,732	$	4,388
Non-FDIC insured deposits	1,098		1,167
Total deposits from related parties and their affiliated companies	$	5,830	$	5,555

ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
ASSETS
Assets	$ 21,308	$ 0
LIABILITIES
Liabilities	6,224	$ 0
NTS \| Disposal Group, Held-for-Sale, Not Discontinued Operations
ASSETS
Cash and due from banks	325
Goodwill	11,800
Intangibles	3,030
Right of use assets	619
Other assets	6,150
Valuation adjustment	(616)
Assets	21,308
LIABILITIES
Lease liabilities	685
Deferred tax liabilities, net	2,975
Accounts payable, accrued expenses and other liabilities	2,564
Liabilities	6,224
Intangible Assets
Gross carrying Amount	6,525
Accumulated Amortization	(3,495)
Net Carrying amount	$ 3,030

INCOME TAXES - Income tax reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Tax on income computed at statutory federal income tax rate	$ 14,425	$ 9,528
State income tax, net of federal tax effect	3,538	911
Non-deductible expenses	(148)	788
Realization of net operating loss carryforwards	0	(7,430)
DTA realization due to change in taxpayer status	0	(5,550)
Other, net	24	(203)
Income tax expense (benefit)	$ 17,839	$ (1,956)	$ 6,464
Effective tax rate	25.97%	(4.31%)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.7)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-10

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(9))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477250/944-220-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section 45
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-SubTopic 20
-Topic 740
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482659/740-20-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h))
-SubTopic 10
-Topic 235
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

BORROWINGS - Repayments of Debt (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Debt Disclosure [Abstract]
2025	$ 86,344
2026	123,075
2027	132,980
2028	40,000
2029	146,875
Thereafter	189,231
Net carrying amount	$ 718,505

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Investments with Affiliates (Details) - Related Party - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Due to affiliated companies	$ 242	$ 158
Due from affiliated companies	0	7
Total due to/due from affiliated companies	$ 242	$ 151

- Definition

Amount of liabilities classified as other.

+ References + Details

FAIR VALUE MEASUREMENTS - Fair Value of Debt (Details) $ in Thousands	Dec. 31, 2024 USD ($) $ / shares	Sep. 16, 2024	May 30, 2024	Dec. 31, 2023 USD ($) $ / shares	Aug. 31, 2023	Jan. 31, 2021	Jul. 25, 2019
Debt Instrument [Line Items]
Borrowings	$ 720,367			$ 641,794
Weighted Avg Interest Rate	7.22%			7.04%
Level 2
Debt Instrument [Line Items]
Borrowings	$ 306,549			$ 187,555
Level 3
Debt Instrument [Line Items]
Borrowings	413,818			454,239
2024 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 0			$ 38,235
Weighted Avg Interest Rate	5.75%			5.75%			5.75%
2024 Notes \| Medium-term Notes \| Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) \| $ / shares	0			24.99
2026 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 115,966			$ 109,250
Weighted Avg Interest Rate	5.50%			5.50%		5.50%
2026 Notes \| Medium-term Notes \| Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) \| $ / shares	25.21			23.75
2028 Notes (8.00%) \| Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 40,448			$ 40,070
Weighted Avg Interest Rate	8.00%			8.00%	8.00%
2028 Notes (8.00%) \| Medium-term Notes \| Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) \| $ / shares	25.28			25.04
2029 8.50% Notes \| Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 72,795			$ 0
Weighted Avg Interest Rate	8.50%		8.50%	8.50%
2029 8.50% Notes \| Medium-term Notes \| Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) \| $ / shares	25.32			0
2029 8.625% Notes \| Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 77,340			$ 0
Weighted Avg Interest Rate	8.625%	8.625%		8.625%
2029 8.625% Notes \| Medium-term Notes \| Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) \| $ / shares	25.78			0
Private Parent Company Notes
Debt Instrument [Line Items]
Borrowings	$ 80,926			$ 79,179
Securitization Trusts
Debt Instrument [Line Items]
Borrowings	186,635			292,112
FHLB Borrowings
Debt Instrument [Line Items]
Borrowings	15,330			23,184
Bank Borrowings
Debt Instrument [Line Items]
Borrowings	$ 130,927			$ 59,764

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands	Jan. 06, 2023	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill		$ 14,085	$ 25,885
NBNYC
Business Acquisition [Line Items]
Acquisition consideration	$ 20,000
Acquisition costs	1,300
Contributions to subsidiary	31,000
Goodwill	271
Goodwill decrease	$ 1,000
Transaction costs			$ 200	$ 2,300
NBNYC \| Banking - Core Deposits
Business Acquisition [Line Items]
Intangible asset, useful life	10 years

SERVICING ASSETS - Servicing Fee Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Servicing Assets at Fair Value [Line Items]
Servicing income	$ 20,087	$ 18,289	$ 13,698
Non-affiliate
Servicing Assets at Fair Value [Line Items]
Servicing income	$ 20,087	$ 18,289

LOANS - Held-for-Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Financing Receivable, at Fair Value [Abstract]
Loans held for sale, at fair value	$ 372,286	$ 118,867
Financing Receivable, at Lower of Cost or Market [Abstract]
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	58,803	56,607
SBA 504 First Lien
Financing Receivable, at Fair Value [Abstract]
Financing receivable, held-for-sale, before deferred fees and costs	128,255	66,387
Financing Receivable, at Lower of Cost or Market [Abstract]
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	36,783	39,565
SBA 504 Second Lien
Financing Receivable, at Fair Value [Abstract]
Financing receivable, held-for-sale, before deferred fees and costs	26,678	20,757
Financing Receivable, at Lower of Cost or Market [Abstract]
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	8,203	5,741
SBA 7(a)
Financing Receivable, at Fair Value [Abstract]
Financing receivable, held-for-sale, before deferred fees and costs	4,855	262
Loans held for sale, at fair value	159,788	87,510
Financing Receivable, at Lower of Cost or Market [Abstract]
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	0	64
SBA 7(a) Partials
Financing Receivable, at Fair Value [Abstract]
Financing receivable, held-for-sale, before deferred fees and costs	0	104
Financing Receivable, at Lower of Cost or Market [Abstract]
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	13,817	11,237
ALP
Financing Receivable, at Fair Value [Abstract]
Financing receivable, held-for-sale, before deferred fees and costs	212,498	31,357
Loans held for sale, at fair value	$ 212,498	$ 31,357

SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2024

Equity [Abstract]

SHAREHOLDERS' EQUITY

NOTE 16—SHAREHOLDERS EQUITY:

Preferred Stock

On February 3, 2023, we 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 is convertible at the holder’s option into 47.54 shares of the Company’s Common Stock. The Company had not issued preferred stock prior to February 3, 2023.

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

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 2023 ATM Equity Distribution Agreement. The 2023 ATM Equity Distribution Agreement provides that the Company may offer and sell up to 3.0 million shares of Common Stock from time to time through the placement agents (the “ATM Program”). The Company may, subject to market conditions, engage in activity under the ATM Program.

The following table summarizes the total shares sold and net proceeds received under the 2023 ATM Equity Distribution Agreement:


	Year Ended December 31, 2024		Year Ended December 31, 2023		Year Ended December 31, 2022
Shares sold	1,100		—		—
Net weighted average price per share	$	12.56	$	—	$	—
Net proceeds	$	13,818	$	—	$	—
Placement agent fees paid	$	282	$	—	$	—

2020 ATM Program

On June 25, 2020, the Company entered into the 2020 ATM Equity Distribution Agreement. On July 20, 2022, the Company entered into Amendment No. 1 to the 2020 ATM Equity Distribution Agreement. The 2020 ATM Equity Distribution Agreement, as amended, provided that the Company may offer and sell up to 6.4 million shares of common stock from time to time through the placement agents. The ATM program was suspended as of January 6, 2023, when the Company did not have an effective shelf registration statement in place. The following table summarizes the total shares sold and net proceeds received under the 2020 ATM Equity Distribution Agreement:


	Year Ended December 31, 2024		Year Ended December 31, 2023		Year Ended December 31, 2022
Shares sold	—		—		107
Net weighted average price per share	$	—	$	—	$	19.12
Net proceeds	$	—	$	—	$	2,054

The Company used the net proceeds for funding investments in debt and equity securities in accordance with its investment objective and strategies.

Stock Repurchase Program

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. 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.

The following table summarizes the total shares repurchased and net proceeds received under the stock repurchase program:


	Year Ended December 31, 2024		Year Ended December 31, 2023		Year Ended December 31, 2022
Shares repurchased	30		—		—
Net weighted average price per share	$	13.35	$	—	$	—
Net proceeds	$	402	$	—	$	—

Dividends and Distributions

The following table summarizes dividend declarations and distributions on the Series A Preferred Stock during the years ended December 31, 2024 and 2023:


Date Declared	Record Date	Payment Date	Amount Per Share		Cash Distribution
Year ended December 31, 2024
March 18, 2024	March 28, 2024	April 1, 2024	$	20.00	$	400
June 26, 2024	June 28, 2024	July 1, 2024	$	20.00	$	400
September 16, 2024	September 30, 2024	October 1, 2024	$	20.00	$	400
December 31, 2024	January 1, 2025	January 2, 2025	$	20.00	$	400

Year ended December 31, 2023
April 13, 2023	March 20, 2023	April 14, 2023	$	12.44	$	249
June 27, 2023	June 27, 2023	July 1, 2023	$	20.00	$	400
September 27, 2023	September 27, 2023	October 2, 2023	$	20.00	$	400
December 25, 2023	December 27, 2023	January 2, 2024	$	20.00	$	400

The Company’s dividends and distributions on the Company’s common shares are recorded on the declaration date. Effective December 8, 2023, the Company terminated the DRIP. The following table summarizes the Company’s dividend declarations and distributions, including DRIP shares and dividend shares issued on vested restricted stock awards, during the years ended December 31, 2024 and 2023:


	Record Date	Payment Date	Amount Per Share		Cash Distribution		DRIP Shares Issued			Dividend Shares Issued on Unvested RSAs
Date Declared							#	$		#	$
Year ended December 31, 2024
March 19, 2024	April 1, 2024	April 15, 2024	$	0.19	$	4,617	—	$	—	6	$	71
June 27, 2024	July 9, 2024	July 19, 2024	$	0.19	$	4,827	—	$	—	5	$	78
September 16, 2024	October 10, 2024	October 21, 2024	$	0.19	$	4,837	—	$	—	8	$	114
December 13, 2024	December 31, 2024	January 13, 2025	$	0.19	$	4,833	—	$	—	13	$	155

Year ended December 31, 2023
February 27, 2023	April 4, 2023	April 14, 2023	$	0.18	$	4,291	6	$	72	5	$	60
June 27, 2023	July 10, 2023	July 21, 2023	$	0.18	$	4,293	4	$	73	3	$	60
September 27, 2023	October 10, 2023	October 20, 2023	$	0.18	$	4,293	6	$	71	5	$	63
December 11, 2023	December 29, 2023	January 12, 2024	$	0.18	$	4,371	—	$	—	6	$	79

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478448/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

+ Details

LOANS - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
SBA, at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	$ 0	$ 34,638
Year Two	27,530	161,046
Year Three	130,794	59,828
Year Four	46,023	29,149
Year Five	23,589	63,955
Prior	141,810	121,185
Total	369,746	469,801
SBA, at fair value \| Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	34,289
Year Two	24,061	151,929
Year Three	112,058	53,998
Year Four	40,641	27,870
Year Five	20,379	52,175
Prior	102,569	94,751
Total	299,708	415,012
SBA, at fair value \| Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	349
Year Two	3,469	8,968
Year Three	18,592	5,813
Year Four	5,365	1,257
Year Five	3,188	11,764
Prior	39,225	25,727
Total	69,839	53,878
SBA, at fair value \| Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	0	0
SBA, at fair value \| Risk Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	149
Year Three	144	17
Year Four	17	22
Year Five	22	16
Prior	16	707
Total	199	911
SBA, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	233,106	163,918
Year Two	147,875	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	380,981	163,918
SBA, at amortized cost, net of deferred fees and costs \| Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	224,958	161,263
Year Two	110,735	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	335,693	161,263
SBA, at amortized cost, net of deferred fees and costs \| Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	7,475	2,655
Year Two	32,753	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	40,228	2,655
SBA, at amortized cost, net of deferred fees and costs \| Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	588	0
Year Two	4,132	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	4,720	0
SBA, at amortized cost, net of deferred fees and costs \| Risk Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	85	0
Year Two	255	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	340	0
CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	51,889	53,567
Year Two	25,697	28,224
Year Three	33,235	15,538
Year Four	15,763	910
Year Five	1,278	11,172
Prior	63,969	54,392
Total	191,831	163,803
CRE, at amortized cost, net of deferred fees and costs \| Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	51,889	53,567
Year Two	25,697	28,224
Year Three	33,235	14,590
Year Four	15,763	0
Year Five	395	8,888
Prior	60,614	49,771
Total	187,593	155,040
CRE, at amortized cost, net of deferred fees and costs \| Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	948
Year Four	0	910
Year Five	883	2,284
Prior	3,355	4,621
Total	4,238	8,763
CRE, at amortized cost, net of deferred fees and costs \| Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	0	0
C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	44,251	6,174
Year Two	1,807	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	1,500	2,017
Total	47,558	8,191
C&I \| Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	44,251	6,174
Year Two	1,532	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	1,500	2,017
Total	47,283	8,191
C&I \| Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	275	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	275	0
C&I \| Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	0	0
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	329,246	258,297
Year Two	202,909	189,270
Year Three	164,029	75,366
Year Four	61,786	30,059
Year Five	24,867	75,127
Prior	207,279	177,594
Total	$ 990,116	$ 805,713

INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Deferred tax assets:
Allowance for Credit Losses	$ 7,914	$ 3,313
Lease Liabilities	1,737	1,832
Other	2,757	1,669
Purchase Accounting, net	183	331
Stock Compensation	1,134	396
Loans	0	2,677
Goodwill and Intangible Assets	217	0
Federal and state net operating losses, net of federal tax effect	201	2,428
Total deferred tax assets	14,143	12,646
Deferred tax liabilities:
Investments	2,481	650
Servicing Rights	6,234	2,737
Right of Use Assets	1,488	1,502
Goodwill and Intangible Assets	0	2,330
Loans	6,069	0
Other	115	197
Total deferred tax liabilities	16,387	7,416
Net deferred tax asset (liability)	$ (2,244)
Net deferred tax asset (liability)		$ 5,230

LOANS

12 Months Ended

Dec. 31, 2024

Receivables [Abstract]

LOANS

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 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
	December 31, 2024				December 31, 2023
	Cost		Fair Value		Cost		Fair Value
CRE	$	162,894	$	175,353	$	203,882	$	218,334
Residential Real Estate	69,667		67,474		94,877		88,051
Machinery and Equipment¹	60,460		56,454		74,691		67,069
Accounts Receivable and Inventory	59,449		54,267		80,746		74,596
Unsecured	5,643		5,644		6,851		6,898
Other²	13,033		10,554		21,516		14,853
Total	$	371,146	$	369,746	$	482,563	$	469,801

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

Loans HFI, at amortized cost, net of deferred fees and costs includes SBA 7(a) loans, 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
	December 31, 2024		December 31, 2023
SBA	$	380,981	$	163,918
CRE	191,831		163,803
C&I	47,558		8,191
Total Loans	620,370		335,912
Deferred fees and costs, net	1,281		393
Loans held for investment, at amortized cost, net of deferred fees and costs	$	621,651	$	336,305

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 December 31, 2024
	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		90-119 Days		120+ Days
SBA, at fair value	$	23,158	$	18,400	$	9,268	$	—	$	67,304	$	118,130	$	251,616	$	369,746

	As of December 31, 2023
	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		90-119 Days		120+ Days
SBA, at fair value	$	20,380	$	16,075	$	—	$	—	$	48,174	$	84,629	$	385,172	$	469,801

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


	As of December 31, 2024
	Past Due and Accruing								Non- accrual		Total Past Due and Non-accrual		Current		Total Carried at Amortized Cost
	30-59 Days		60-89 Days		90-119 Days		120+ Days
At amortized cost
SBA	$	11,264	$	9,046	$	—	$	—	$	21,706	$	42,016	$	338,965	$	380,981
CRE	—		—		—		—		2,635		2,635		189,196		191,831
C&I	275		—		—		—		—		275		47,283		47,558
Total, at amortized cost	$	11,539	$	9,046	$	—	$	—	$	24,341	$	44,926	$	575,444	$	620,370
Deferred fees and costs															1,281
Total, at amortized cost net of deferred fees and costs															$	621,651
Allowance for credit losses															(30,233)
Total, at amortized cost, net															$	591,418


	As of December 31, 2023
		Past Due and Accruing								Non- accrual		Total Past Due and Non-accrual		Current		Total Carried at Amortized Cost
		30-59 Days		60-89 Days		90-119 Days		120+ Days
At amortized cost
SBA		$	3,637	$	311	$	—	$	—	$	752	$	4,700	$	159,218	$	163,918
CRE		948		—		—		—		4,621		5,569		158,234		163,803
C&I		—		—		—		—		—		—		8,191		8,191
Total, at amortized cost		$	4,585	$	311	$	—	$	—	$	5,373	$	10,269	$	325,643	$	335,912
Deferred fees and costs																393
Total, at amortized cost net of deferred fees and costs																$	336,305
Allowance for credit losses																(12,574)
Total, at amortized cost, net																$	323,731

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.

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 December 31, 2024 and December 31, 2023:


December 31, 2024	Term Loans HFI by Origination Year
	2024		2023		2022		2021		2020		Prior		Total
SBA, at fair value
Risk Grades 1-4	$	—	$	24,061	$	112,058	$	40,641	$	20,379	$	102,569	$	299,708
Risk Grades 5-6	—		3,469		18,592		5,365		3,188		39,225		69,839
Risk Grade 7	—		—		—		—		—		—		—
Risk Grade 8	—		—		144		17		22		16		199
Total	$	—	$	27,530	$	130,794	$	46,023	$	23,589	$	141,810	$	369,746
SBA, at amortized cost, net of deferred fees and costs
Risk Grades 1-4	$	224,958	$	110,735	$	—	$	—	$	—	$	—	$	335,693
Risk Grades 5-6	7,475		32,753		—		—		—		—		40,228
Risk Grade 7	588		4,132		—		—		—		—		4,720
Risk Grade 8	85		255		—		—		—		—		340
Total	$	233,106	$	147,875	$	—	$	—	$	—	$	—	$	380,981
CRE, at amortized cost, net of deferred fees and costs
Risk Grades 1-4	$	51,889	$	25,697	$	33,235	$	15,763	$	395	$	60,614	$	187,593
Risk Grades 5-6	—		—		—		—		883		3,355		4,238
Risk Grade 7	—		—		—		—		—		—		—
Total	$	51,889	$	25,697	$	33,235	$	15,763	$	1,278	$	63,969	$	191,831
C&I, at amortized cost, net of deferred fees and costs
Risk Grades 1-4	$	44,251	$	1,532	$	—	$	—	$	—	$	1,500	$	47,283
Risk Grades 5-6	—		275		—		—		—		—		275
Risk Grade 7	—		—		—		—		—		—		—
Total	$	44,251	$	1,807	$	—	$	—	$	—	$	1,500	$	47,558
Total	$	329,246	$	202,909	$	164,029	$	61,786	$	24,867	$	207,279	$	990,116


December 31, 2023	Term Loans HFI by Origination Year
	2023		2022		2021		2020		2019		Prior		Total
SBA, at fair value
Risk Grades 1-4	$	34,289	$	151,929	$	53,998	$	27,870	$	52,175	$	94,751	$	415,012
Risk Grades 5-6	349		8,968		5,813		1,257		11,764		25,727		53,878
Risk Grade 7	—		—		—		—		—		—		—
Risk Grade 8	—		149		17		22		16		707		911
Total	$	34,638	$	161,046	$	59,828	$	29,149	$	63,955	$	121,185	$	469,801
SBA, at amortized cost, net of deferred fees and costs
Risk Grades 1-4	$	161,263	$	—	$	—	$	—	$	—	$	—	$	161,263
Risk Grades 5-6	2,655		—		—		—		—		—		2,655
Risk Grade 7	—		—		—		—		—		—		—
Risk Grade 8	—		—		—		—		—		—		—
Total	$	163,918	$	—	$	—	$	—	$	—	$	—	$	163,918
CRE, at amortized cost, net of deferred fees and costs
Risk Grades 1-4	$	53,567	$	28,224	$	14,590	$	—	$	8,888	$	49,771	$	155,040
Risk Grades 5-6	—		—		948		910		2,284		4,621		8,763
Risk Grade 7	—		—		—		—		—		—		—
Total	$	53,567	$	28,224	$	15,538	$	910	$	11,172	$	54,392	$	163,803
C&I, at amortized cost, net of deferred fees and costs
Risk Grades 1-4	$	6,174	$	—	$	—	$	—	$	—	$	2,017	$	8,191
Risk Grades 5-6	—		—		—		—		—		—		—
Risk Grade 7	—		—		—		—		—		—		—
Total	$	6,174	$	—	$	—	$	—	$	—	$	2,017	$	8,191
Total	$	258,297	$	189,270	$	75,366	$	30,059	$	75,127	$	177,594	$	805,713

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 years ended December 31, 2024 and December 31, 2023:


	December 31, 2024								December 31, 2023
	CRE		C&I		SBA		Total		CRE		C&I		SBA		Total
Beginning balance	$	1,408	$	314	$	10,852	$	12,574	$	—	$	—	$	—	$	—
Adjustment to beginning balance due to PCD marks1	—		—		—		—		774		96		—		870
Charge offs	(236)		—		(7,836)		(8,072)		—		—		—		—
Recoveries	—		—				—		—		—		—		—
Provision for credit losses2	258		1		25,472		25,731		634		218		10,852		11,704
Ending balance	$	1,430	$	315	$	28,488	$	30,233	$	1,408	$	314	$	10,852	$	12,574

The Company identified 145 and five loans as of December 31, 2024 and December 31, 2023, respectively, that did not share similar risk characteristics with the loan segments identified in NOTE 2—SIGNIFICANT ACCOUNTING POLICIES and evaluated them for impairment individually.

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


	December 31, 2024								December 31, 2023
ACL	CRE		C&I		SBA		Total		CRE		C&I		SBA		Total
Individually Evaluated	$	—	$	—	$	7,019	$	7,019	$	—	$	—	$	102	$	102
Collectively Evaluated	1,430		315		21,469		23,214		1,408		314		10,750		12,472
Total	$	1,430	$	315	$	28,488	$	30,233	$	1,408	$	314	$	10,852	$	12,574

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


	December 31, 2024								December 31, 2023
Recorded Investment	CRE		C&I		SBA		Total		CRE		C&I		SBA		Total
Individually Evaluated	$	2,635	$	—	$	21,706	$	24,341	$	4,621	$	—	$	727	$	5,348
Collectively Evaluated	189,196		47,558		359,275		596,029		159,182		8,191		163,191		330,564
Total	$	191,831	$	47,558	$	380,981	$	620,370	$	163,803	$	8,191	$	163,918	$	335,912

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


	December 31, 2024						December 31, 2023
	Nonaccrual without Allowance		Nonaccrual with Allowance		ACL		Nonaccrual without Allowance		Nonaccrual with Allowance		ACL
SBA	$	7,264	$	14,444	$	7,019	$	625	$	102	$	102
CRE	2,635		—		—		4,621		—		—








Total	$	9,899	$	14,444	$	7,019	$	5,246	$	102	$	102

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


	December 31, 2024				December 31, 2023

	Real Estate Collateral		Non-Real Estate Collateral		Total		ACL		Real Estate Collateral		Non-Real Estate Collateral		Total		ACL
SBA	$	19,586	$	2,120	$	21,706	$	7,019	$	625	$	102	$	727	$	102
CRE	2,635		—		2,635		—		4,621		—		4,621		—







Total	$	22,221	2,120		24,341		7,019		$	5,246	102		5,348		102

Accrued interest on loans totaled $15.5 million and $10.7 million as of December 31, 2024 and December 31, 2023, 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 91 to 120 days past due.

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

The Company did not make any loan modifications to borrowers experiencing financial difficulty that would require disclosure, such as principal forgiveness, term extension, or interest rate reductions during the years ended December 31, 2024 and 2023. Additionally there were no troubled debt restructurings under legacy U.S. GAAP during the years ended December 31, 2024 and 2023.

Loans held for sale, at fair value


	December 31, 2024		December 31, 2023
SBA 504 First Lien	$	128,255	$	66,387
SBA 504 Second Lien	26,678		20,757
SBA 7(a)	4,855		262
SBA 7(a) Partials	—		104
ALP	212,498		31,357
Loans held for sale, at fair value	$	372,286	$	118,867

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


	As of December 31, 2024
	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		90-119 Days		120+ Days
SBA, at fair value	$	29,119	$	13,367	$	—	$	—	$	250	$	42,736	$	117,052	$	159,788
ALP, at fair value	—		2,492		—		—		—		2,492		210,006		212,498
Total	$	29,119	$	15,859	$	—	$	—	$	250	$	45,228	$	327,058	$	372,286

	As of December 31, 2023
	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		90-119 Days		120+ Days
SBA, at fair value	$	8,796							$	250	$	9,046	$	78,464	$	87,510
ALP, at fair value	—		—		—		—		—		—		31,357		31,357
Total	$	8,796	$	—	$	—	$	—	$	250	$	9,046	$	109,821	$	118,867

Loans held for sale, at LCM


	December 31, 2024		December 31, 2023
SBA 504 First Lien	$	36,783	$	39,565
SBA 504 Second Lien	8,203		5,741
SBA 7(a)	—		64
SBA 7(a) Partials	13,817		11,237

Loans held for sale, at LCM	58,803		56,607

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


	As of December 31, 2024
	Past Due and Accruing								Non- accrual		Total Past Due and Non-accrual		Current		Total Carried at Amortized Cost
	30-59 Days		60-89 Days		90-119 Days		120+ Days
At LCM
SBA	$	2,164	$	1,099	$	—	$	—	$	—	3,263		$	55,540	$	58,803


Total, at LCM	$	2,164	$	1,099	$	—	$	—	$	—	$	3,263	$	55,540	$	58,803


	As of December 31, 2023
		Past Due and Accruing								Non- accrual		Total Past Due and Non-accrual		Current		Total Carried at Amortized Cost
		30-59 Days		60-89 Days		90-119 Days		120+ Days
At LCM
SBA		$	—	$	—	$	—	$	—	$	—	$	—	$	56,607	$	56,607


Total, at LCM		$	—	$	—	$	—	$	—	$	—	$	—	$	56,607	$	56,607

BORROWINGS - 2022, 2023, 2024, 2025, 2026, 2028 and 2029 Notes (Details)									1 Months Ended		12 Months Ended
	Sep. 16, 2024 USD ($)	May 30, 2024 USD ($)	Aug. 31, 2023 USD ($)	Jan. 23, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 29, 2021 USD ($)	Nov. 27, 2020 USD ($)	Jul. 25, 2019 USD ($)	Jan. 31, 2021 USD ($)	Aug. 31, 2019 USD ($)	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	May 20, 2021 USD ($)	Feb. 16, 2021 USD ($)
Debt Instrument [Line Items]
Interest rate											7.22%	7.04%
Aggregate principal amount											$ 708,041,000	$ 644,122,000
Loss on extinguishment of debt											0	271,000	$ 417,000
Medium-term Notes
Debt Instrument [Line Items]
Interest expense											52,423,000	$ 51,890,000	26,325,000
2029 8.50% Notes \| Medium-term Notes
Debt Instrument [Line Items]
Loans		$ 71,900,000									$ 71,875,000
Interest rate		8.50%									8.50%	8.50%
Additional principal purchased		$ 9,400,000
Proceeds before expenses		$ 69,600,000
Aggregate principal amount											$ 69,622,000
2029 8.625% Notes \| Medium-term Notes
Debt Instrument [Line Items]
Loans	$ 75,000,000										$ 75,000,000
Interest rate	8.625%										8.625%	8.625%
Proceeds before expenses	$ 72,800,000
Aggregate principal amount											$ 72,662,000
2028 Notes (8.00%)
Debt Instrument [Line Items]
Interest expense											3,500,000	$ 1,200,000	0
2028 Notes (8.00%) \| Medium-term Notes
Debt Instrument [Line Items]
Loans			$ 40,000,000								$ 40,000,000	$ 40,000,000
Interest rate			8.00%								8.00%	8.00%
Additional principal purchased			$ 5,000,000
Proceeds before expenses			$ 38,000,000
Aggregate principal amount											$ 38,726,000	$ 38,378,000
2026 Notes
Debt Instrument [Line Items]
Interest expense											7,000,000	7,000,000	7,000,000
2026 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Loans									$ 115,000,000		$ 115,000,000	$ 115,000,000
Interest rate									5.50%		5.50%	5.50%
Net proceeds									$ 111,300,000
Aggregate principal amount											$ 114,282,000	$ 113,564,000
2026 Notes, Overallotment Option \| Medium-term Notes
Debt Instrument [Line Items]
Loans									15,000,000
2025 Notes
Debt Instrument [Line Items]
Interest expense											0	0	400,000
2025 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Loans					$ 15,000,000		$ 5,000,000		10,000,000
Interest rate							6.85%
Net proceeds				$ 48,940,000			$ 4,800,000
Additional principal issuable									$ 10,000,000
Redemption price per note					25
2024 Notes
Debt Instrument [Line Items]
Interest expense											1,400,000	2,400,000	$ 2,400,000
2024 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Loans								$ 55,000,000			$ 0	$ 38,250,000			$ 10,000,000	$ 5,000,000
Interest rate								5.75%			5.75%	5.75%
Additional principal purchased										$ 8,250,000
Net proceeds								$ 53,300,000		$ 8,000,000
Redemption price per note						25
Principal redeemed						$ 40,000,000
Aggregate principal amount						$ 78,250,000						$ 38,124,000
Loss on extinguishment of debt														$ 600,000

BORROWINGS - Notes Payable Related Parties (Details) - USD ($) $ in Millions	1 Months Ended		12 Months Ended
	Nov. 30, 2018	Jun. 30, 2017	Dec. 31, 2022	Jun. 30, 2015
Related Party RLOC
Debt Instrument [Line Items]
Interest expense			$ 0.5
Notes payable - related parties \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 50.0		$ 38.0
Interest rate, floor		0.50%
Stated rate		3.50%
Notes payable - related parties \| Line of Credit \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate, basis spread	2.50%	6.00%
Notes payable - related parties \| Line of Credit \| Prime Rate
Debt Instrument [Line Items]
Interest rate, basis spread	1.50%	5.00%

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 50,853	$ 47,329	$ 32,311
Other comprehensive gain (loss) before tax:
Net unrealized gain (loss) on debt securities available-for-sale during the period	183	(201)	0
Other comprehensive gain (loss) before tax	183	(201)	0
Income tax (benefit) expense	(56)	53	0
Other comprehensive income (loss), net of tax	127	(148)	0
Comprehensive income	$ 50,980	$ 47,181	$ 32,311

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

FAIR VALUE MEASUREMENTS - Level III Rollforward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Net Gains/(Losses)
Debt and Equity Securities, Realized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Net gains on sales of loans
Loans Held for Investment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	$ 469,801	$ 505,268
Reclasses between loans at FV and LCM	263	5,879
Settlements	(71,791)	(77,966)
Purchases and repurchases of loans	4,851	9,728
Sales	(2,586)	(23,783)
Purchases	(4,569)	(2,978)
Fair value, ending balance	369,746	469,801
Loans Held for Investment \| SBA investment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	122	38,889
Loans Held for Investment \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	597	13,515
Loans Held for Investment \| Factors Other Than Changes in Valuation Inputs Or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(26,942)	1,249
Loans Held For Sale
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	118,867	19,171
Reclasses between loans at FV and LCM	4,077	(28,513)
Reclasses between loans HFS and HFI	(599)
Settlements	(16,178)	(6,233)
Purchases and repurchases of loans		5,279
Sales	(179,949)	(180,784)
Fair value, ending balance	372,287	118,867
Loans Held For Sale \| SBA investment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	26,863	167,124
Loans Held For Sale \| Conventional Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	283,822	69,835
Loans Held For Sale \| Mortgage Loan
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	103,838
Loans Held For Sale \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	31,569	3,931
Loans Held For Sale \| Factors Other Than Changes in Valuation Inputs Or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(23)	(688)
Loans Held For Sale \| Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Consolidation changes		69,745
Investments \| Controlled Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	0	259,217
Fair value, ending balance		0
Investments \| Controlled Investments \| Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Consolidation changes		(259,217)
Investments \| Joint Ventures and Other Non-Control Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	41,587	24,382
Gain (loss) included in earnings		3,219
Purchases	5,379	13,986
Fair value, ending balance	57,678	41,587
Investments \| Joint Ventures and Other Non-Control Investments \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	10,712
Servicing Assets, at FV
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	29,336	30,268
Consolidation changes		(5,396)
Gain (loss) included in earnings		1,847
Purchases	14	2,617
Fair value, ending balance	22,062	29,336
Servicing Assets, at FV \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	924
Servicing Assets, at FV \| Factors Other Than Changes in Valuation Inputs Or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(8,212)
Assets HFS
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	0
Purchases	21,924
Fair value, ending balance	21,308	0
Assets HFS \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(616)
Warrant Liabilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	141	0
Purchases		311
Fair value, ending balance	133	141
Warrant Liabilities \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(8)	(170)
Other Real Estate Owned
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	1,110	3,529
Consolidation changes		(1,149)
Sales	(1,446)	(4,248)
Purchases	4,569	2,978
Fair value, ending balance	3,764	$ 1,110
Other Real Estate Owned \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	$ (469)

INVESTMENTS - Narrative (Details) - USD ($)	Dec. 31, 2024	Jul. 23, 2024	Dec. 31, 2023	Jan. 28, 2022	May 20, 2019
Debt Securities, Available-for-Sale [Line Items]
Accrued interest receivable on available-for-sale securities	$ 30,400		$ 200,000
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Other assets		Other assets
Class A Notes
Debt Securities, Available-for-Sale [Line Items]
Notes sold		$ 137,200,000
Class B Notes
Debt Securities, Available-for-Sale [Line Items]
Notes sold		17,200,000
TSO Notes
Debt Securities, Available-for-Sale [Line Items]
Collateral		$ 190,500,000
Newtek Conventional Lending, LLC
Debt Securities, Available-for-Sale [Line Items]
Investment sale				$ 56,300,000
Yield percentage				3.209%
Newtek Conventional Lending, LLC \| Newtek Commercial Lending
Debt Securities, Available-for-Sale [Line Items]
Joint venture ownership percentage					50.00%
Newtek Conventional Lending, LLC \| Conventional Lending TCP Holding
Debt Securities, Available-for-Sale [Line Items]
Joint venture ownership percentage					50.00%

DEPOSITS

12 Months Ended

Dec. 31, 2024

Banking and Thrift, Interest [Abstract]

DEPOSITS

NOTE 11—DEPOSITS:

The following table summarizes deposits by type:


	December 31, 2024		December 31, 2023
Non-interest-bearing:
Demand	$	11,142	$	10,053
Interest-bearing:
Checking	103,978		11,456
Money market	62,001		15,803
Savings	386,680		259,152
Time deposits	409,251		167,041
Total interest-bearing	961,910		453,452
Total deposits	$	973,052	$	463,505

Time deposits, money market, and interest-bearing checking obtained through brokers	$	27,100	$	53,548
Aggregate amount of deposit accounts that exceeded the FDIC limit	$	140,679	$	66,511
Demand deposit overdrafts reclassified as loan balances	$	17	$	53
Certificates of deposit in excess of $0.25 million	$	99,231	$	20,070

The following table summarizes the scheduled maturities of time deposits:


2025	$	351,906
2026	36,347
2027	20,180
2028	680
2029	138
Thereafter	—
Total time deposits	$	409,251

REGULATORY CAPITAL

12 Months Ended

Dec. 31, 2024

Equity [Abstract]

REGULATORY CAPITAL

NOTE 17—REGULATORY CAPITAL:

The maintenance of appropriate levels of capital is a management priority and is monitored on a regular basis. The Company’s principal goals related to the maintenance of capital are the following: to provide adequate capital to support the Company’s risk profile consistent with the risk appetite approved by the Board of Directors; to provide financial flexibility to support future growth and client needs; comply with relevant laws, regulations, and supervisory guidance; to achieve optimal ratings for the Company and its subsidiaries; and to provide a competitive return to shareholders. Management regularly monitors the capital position of the Company on both a consolidated and bank level basis. Risk-based capital ratios, which include Tier 1 Capital, Total Capital and Common Equity Tier 1 Capital, are calculated based on regulatory guidance related to the measurement of capital and risk-weighted assets.

Regulatory capital rules adopted in July 2013 and fully phased in as of January 1, 2019, which are referred to as the Basel III rules, impose minimum capital requirements for bank holding companies and banks. The Basel III rules apply to all national and state banks and savings associations regardless of size and bank holding companies and savings and loan holding companies with consolidated assets of more than $3 billion. In order to avoid restrictions on capital distributions or discretionary bonus payments to executives, a covered banking organization must maintain the fully phased in “capital conservation buffer” of 2.5% on top of its minimum risk-based capital requirements. This buffer must consist solely of common equity Tier 1 risk-based capital, but the buffer applies to all three measurements (common equity Tier 1 risk-based capital, Tier 1 capital and total capital). The capital conservation is equal to 2.5% of risk-weighted assets.

Capital amounts and ratios for NewtekOne, Inc. as of December 31, 2024 and 2023 are presented in the table below:


	Actual				For Capital Adequacy Purposes1				For Consideration as Well-Capitalized
NewtekOne, Inc. - December 31, 2024	Amount		Ratio		Amount		Ratio		Amount	Ratio
Tier 1 Capital (to Average Assets)	$	231,899	13.3	%	69,727		4.0	%	N/A	N/A
Common Equity Tier 1 (to Risk-Weighted Assets)	231,899		17.0	%	61,492		4.5	%	N/A	N/A
Tier 1 Capital (to Risk-Weighted Assets)	231,899		17.0	%	81,990		6.0	%	N/A	N/A
Total Capital (to Risk-Weighted Assets)	268,887		19.7	%	109,320		8.0	%	N/A	N/A
NewtekOne, Inc. - December 31, 2023
Tier 1 Capital (to Average Assets)	$	180,829	13.6	%	$	53,363	4.0	%	N/A	N/A
Common Equity Tier 1 (to Risk-Weighted Assets)	180,829		16.2	%	50,153		4.5	%	N/A	N/A
Tier 1 Capital (to Risk-Weighted Assets)	180,829		16.2	%	66,870		6.0	%	N/A	N/A
Total Capital (to Risk-Weighted Assets)	213,141		19.1	%	89,160		8.0	%	N/A	N/A

1 Exclusive of the capital conservation buffer of 2.5% of risk-weighted assets.


	Actual				For Capital Adequacy Purposes1				For Consideration as Well-Capitalized
Newtek Bank - December 31, 2024	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 Capital (to Average Assets)	$	120,078	11.9	%	$	40,197	4.0	%	50,246		5.0	%
Common Equity Tier 1 (to Risk-Weighted Assets)	120,078		14.2	%	38,151		4.5	%	55,107		6.5	%
Tier 1 Capital (to Risk-Weighted Assets)	120,078		14.2	%	50,868		6.0	%	67,823		8.0	%
Total Capital (to Risk-Weighted Assets)	130,924		15.4	%	67,824		8.0	%	84,779		10.0	%
Newtek Bank - December 31, 2023
Tier 1 Capital (to Average Assets)	$	99,253	16.6	%	23,893		4.0	%	$	29,866	5.0	%
Common Equity Tier 1 (to Risk-Weighted Assets)	99,253		21.5	%	20,787		4.5	%	30,026		6.5	%
Tier 1 Capital (to Risk-Weighted Assets)	99,253		21.5	%	27,716		6.0	%	36,955		8.0	%
Total Capital (to Risk-Weighted Assets)	105,105		22.8	%	36,954		8.0	%	46,193		10.0	%

1 Exclusive of the capital conservation buffer of 2.5% of risk-weighted assets.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

SIGNIFICANT ACCOUNTING POLICIES - Cash and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Cash and due from banks	$ 6,941	$ 15,398
Restricted cash	28,226	30,919
Interest bearing deposits in banks	346,207	137,689
Cash held at Federal Reserve Bank	345,680	137,434
Cash held at other financial institutions	35,694	46,572
Total cash and cash equivalents	$ 381,374	$ 184,006	$ 125,606	$ 186,860

- Definition

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Excludes cash and cash equivalents within disposal group and discontinued operation.

+ References + Details

BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

At December 31, 2024 and December 31, 2023, the Company had borrowings composed of the following:


	December 31, 2024						December 31, 2023
	Commitments		Borrowings Outstanding		Weighted Avg Interest Rate		Commitments		Borrowings Outstanding		Weighted Avg Interest Rate
Bank Borrowings1:
NMS Webster Note	$	54,871	$	32,688	7.30	%	$	54,871	$	36,628	7.94	%
SPV I Capital One Facility	60,000		21,192		7.22	%	60,000		16,080		8.20	%
SPV II Deutsche Bank Facility	120,000		54,036		7.57	%	50,000		6,799		10.04	%
SPV III One Florida Bank Facility	30,000		23,011		8.50	%	30,000		257		9.50	%
FHLB Advances2	20,000		15,330		2.19	%	113,891		23,184		2.13	%
Parent Company Notes1:
2024 Notes3	—		—		—	%	38,250		38,124		5.75	%
2025 Notes	30,000		29,913		5.00	%	30,000		29,563		5.00	%
2025 Notes4	—		—		—	%	50,000		49,433		8.125	%
2026 Notes	115,000		114,282		5.50	%	115,000		113,564		5.50	%
2027 Notes4	50,000		49,944		8.125	%	—		—		—	%
2028 Notes	40,000		38,726		8.00	%	40,000		38,378		8.00	%
2029 Notes	71,875		69,622		8.50	%	—		—		—	%
2029 Notes	75,000		72,662		8.625	%	—		—		—	%
Notes payable - Securitization Trusts5	189,231		186,635		7.32	%	296,223		292,112		7.84	%
Total borrowings	$	855,977	$	708,041	7.22	%	$	878,235	$	644,122	7.04	%

1 Net of deferred financing costs.

2 At December 31, 2024 and December 31, 2023, the carrying amount of Newtek Bank’s FHLB borrowings includes a $0.04 million and $0.2 million purchase accounting adjustment, respectively.

3 On August 1, 2024, the 2024 Notes matured.

5 At December 31, 2024 and December 31, 2023, the net assets of the consolidated Trusts totaled $8.9 million and $14.8 million, respectively.


	December 31, 2024						December 31, 2023
	Principal balance		Unamortized deferred financing costs		Net carrying amount1		Principal balance		Unamortized deferred financing costs		Net carrying amount1
Bank Borrowings:
NMS Webster Note	$	32,894	$	(206)	$	32,688	$	36,881	$	(253)	$	36,628
SPV I Capital One Facility	21,300		(108)		21,192		16,300		(220)		16,080
SPV II Deutsche Bank Facility	54,800		(764)		54,036		6,900		(101)		6,799
SPV III One Florida Bank Facility	23,075		(64)		23,011		375		(118)		257
Parent Company Notes:
2024 Notes (5.75%)	—		—		—		38,250		(126)		38,124
2025 Notes (5.00%)	30,000		(87)		29,913		30,000		(437)		29,563
2025 Notes (8.125%)2	—		—		—		50,000		(567)		49,433
2026 Notes (5.50%)	115,000		(718)		114,282		115,000		(1,436)		113,564
2027 Notes (8.125%)2	50,000		(56)		49,944		—		—		—
2028 Notes (8.00%)	40,000		(1,274)		38,726		40,000		(1,622)		38,378
2029 Notes (8.50%)	71,875		(2,253)		69,622		—		—		—
2029 Notes (8.625%)	75,000		(2,338)		72,662		—		—		—
Notes Payable - Securitization Trusts	189,231		(2,596)		186,635		296,223		(4,111)		292,112

1 Net of deferred financing costs.

Schedule of carrying values and estimated fair values of debt instruments

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


	December 31, 2024				December 31, 2023
	Closing Price		Fair Value		Closing Price		Fair Value
Public Parent Company Notes1:
2024 Notes (5.75%)	$	—	$	—	$	24.99	$	38,235
2026 Notes (5.50%)	25.21		115,966		23.75		109,250
2028 Notes (8.00%)	25.28		40,448		25.04		40,070
2029 Notes (8.50%)	25.32		72,795		—		—
2029 Notes (8.625%)	25.78		77,340		—		—
Subtotal (Level 2)			$	306,549			$	187,555

Private Parent Company Notes2			$	80,926			$	79,179
Securitizations3			186,635				292,112
FHLB Borrowings3			15,330				23,184
Bank Borrowings3			130,927				59,764
Subtotal (Level 3)			$	413,818			$	454,239

Total Borrowings			$	720,367			$	641,794

1 Fair values are based on the closing public share price on the date of measurement.

3 Fair value is calculated as the Borrowings Outstanding. Refer to NOTE 13—BORROWINGS.

Schedule of debt interest expense

Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the years ended December 31, 2024, 2023 and 2022 were as follows:


	Year Ended December 31,
		2024		2023		2022
Total interest expense		$	52,423	$	51,890	$26,325

Schedule of maturities of long-term debt

Total expected principal repayments on the Company’s borrowings for the next five fiscal years and thereafter are as follows:


Year Ending December 31,	Borrowings
2025	$	86,344
2026	123,075
2027	132,980
2028	40,000
2029	146,875
Thereafter	189,231
	$	718,505

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(22))
-SubTopic 10
-Topic 210
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69B

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-Name Accounting Standards Codification
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-Paragraph 69E
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-URI https://asc.fasb.org/1943274/2147481568/470-20-55-69E

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-3

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482925/835-30-45-2

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-3

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 942
-SubTopic 470
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-7

+ Details

INCOME TAXES - Components of income tax expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Current income tax expense/(benefit):
Federal	$ 4,637	$ 1,251
State	2,799	1,593
Total current expense/(benefit)	7,436	2,844
Deferred income tax expense/(benefit):
Federal	9,076	(4,318)
State	1,327	(482)
Total deferred expense/(benefit)	10,403	(4,800)	$ 6,464
Income tax expense (benefit)	$ 17,839	$ (1,956)	$ 6,464

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

+ Details

SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2024 USD ($) loan segment	Dec. 31, 2023 USD ($)
Property, Plant and Equipment [Line Items]
Cash deposits in excess of insured amounts	$ 30,300
Restricted cash	$ 28,226	$ 30,919
Weighted average life	5 years
Loan-to-value ratio	75.00%
Debt service coverage, minimum	1.2
Remaining contractual term	15 years
Renewal term	10 years
Number of securitizations \| loan	13
Number of reportable segments \| segment	5
Maximum \| Customer Merchant Accounts
Property, Plant and Equipment [Line Items]
Intangible asset, useful life	120 months
SBA investment
Property, Plant and Equipment [Line Items]
Principal balances sold	$ 47,400	56,500
Premiums	$ 5,000	$ 5,700

NEWTEKONE, INC. - PARENT COMPANY ONLY (Tables)

12 Months Ended

Dec. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheet

Statement of Financial Condition


	As of December 31,
	2024		2023
Assets
Cash and balances due from depository institutions:	$	19,123	$	13,871
Loans and lease financing receivable	5,715		4,786
Investments in and receivables due from subsidiaries and associated companies	699,059		392,519
Premises and fixed assets (including capitalized leases)	—		64
Other assets	9,617		20,159
Total assets	733,514		431,399

Liabilities and shareholders' equity
Borrowings with a remaining maturity of one year or less:	79,856		38,124
Other borrowed money with a remaining maturity of more than one year	325,418		253,888
Other liabilities	22,083		13,163
Balances due to subsidiaries and related institutions	9,876		46,332
Total liabilities	437,233		351,507

Preferred stock	19,738		19,493
Common stock	525		490
Additional paid in capital	218,266		314,187
Accumulated other comprehensive income	(21)		(148)
Retained earnings	57,773		(254,130)
Total shareholders’ equity	296,281		79,892
Total liabilities and shareholder's equity	$	733,514	$	431,399

Condensed Income Statement

Statement of Income


	For the year ended December 31,
	2024		2023
Interest income	$	1,851	$	2,319
Interest expense	26,647		18,797
Net interest loss	(24,796)		(16,478)
Noninterest income:
Dividends	42,107		60,317
All other operating income (loss)	2,970		(2,345)
Total noninterest income	45,077		57,972
Noninterest expense:
Salaries and employee benefits	10,476		9,365
Other expenses	13,627		10,962
Total noninterest expense	24,103		20,327
Net Income (loss) before equity in undistributed income of subsidiaries	(3,822)		21,167
Income tax expense (benefit)	2,428		(14,837)
Income (loss) before undistributed income of subsidiaries	(6,250)		36,004
Equity in undistributed income of subsidiaries and associated companies:	57,103		26,813
Net income	$	50,853	$	62,817

Condensed Cash Flow Statement

Statement of Cash Flows


	For the year ended December 31,
	2024		2023
Cash flows from operating activities:
Net income	$	50,853	$	62,817
Provisions for deferred income taxes	13,110		(5,814)
Gain (loss) on sale of assets	(1,135)		539
Equity in Undistributed (earnings) losses of subs	(57,103)		(26,813)
Net change in other liabilities	(35,489)		(40,414)
Net change in other asset	5,215		(10,759)
Other, net	6,634		7,570
Net cash (used in) operating activities	(17,915)		(12,874)

Cash flow from investing activities
Purchases of held-to-maturity and available-for-sale securities	(19,899)		—
Sales and maturities of held-to-maturity and available-for-sale securities	20,000		—
Payments for investments in and advances to subsidiaries	(176,333)		(96,265)
Sale or repayment of investments in and advances to subsidiaries	95,543		—
Outlays for business acquisitions	—		(21,322)
Other, net	39		14
Net cash (used in) investing activities	(80,650)		(117,573)

Cash flow from financing activities
Proceeds from issuance of long-term debt	154,050		90,000
Repayment of long-term debt	(38,250)		—
Proceeds from issuance of common stock	14,036		—
Proceeds from issuance of preferred stock	—		19,493
Payment to repurchase common stock	(711)		—
Dividends paid	(20,252)		(14,147)
Other, net	(5,056)		(2,826)
Net cash provided by financing activities	103,817		92,520

Net (decrease) increase in cash and restricted cash	5,252		(37,927)
Cash and restricted cash - beginning of period	13,871		51,798
Cash and restricted cash - end of period	$	19,123	$	13,871

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of fair value, assets and liabilities measured on recurring basis


	Fair Value Measurements at December 31, 2024
	Total		Level 1		Level 2		Level 3
Assets:
Debt securities available-for-sale
U.S. Treasury notes	$	23,916	$	23,916	$	—	$	—

Loans held for sale, at fair value	372,286		—		—		372,286
Loans held for investment, at fair value	369,746		—		—		369,746
Other real estate owned 1	3,764		—		—		3,764
Servicing assets2	22,062		—		—		22,062
Joint ventures and other non-control investments	57,678		—		—		57,678
Assets held for sale3	21,308		—		—		21,308
Derivative instruments1,4	715		—		715		—
Total assets measured at fair value	$	871,475	$	23,916	$	715	$	846,844
Liabilities:
Equity warrants4	$	133	$	—	$	—	$	133
Total liabilities measured at fair value	$	133	$	—	$	—	$	133

1 Included in Other assets on the Consolidated Statements of Financial Condition.

2 $22.1 million of servicing assets at held at FV and $24.2 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.

3 Non-recurring

4 Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.


	Fair Value Measurements at December 31, 2023
	Total		Level 1		Level 2		Level 3
Assets:
Debt securities available-for-sale
U.S. Treasury notes	$	29,305	$	29,305	$	—	$	—
Government agency debentures	2,866		—		2,866		—
Loans held for sale, at fair value	118,867		—		—		118,867
Loans held for investment, at fair value	469,801		—		—		469,801
Other real estate owned 1	1,110		—		—		1,110
Servicing assets, at fair value2	29,336		—		—		29,336
Joint ventures and other non-control investments	41,587		—		—		41,587
Total assets measured at fair value	$	692,872	$	29,305	$	2,866	$	660,701
Liabilities:
Equity warrants3	$	141	$	—	$	—	$	141
Derivative instruments3,4	630		—		630		—
Total liabilities measured at fair value	$	771	$	—	$	630	$	141

1 Included in Other assets on the Consolidated Statements of Financial Condition.

2 $29.3 million of servicing assets held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS

3 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.

4 Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.

The following tables represents the changes in the investments, servicing assets and liabilities measured at fair value using Level 3 inputs for the years ended December 31, 2024 and 2023:


	Year Ended December 31, 2024
	Loans HFI, at FV		Loans HFS, at FV		Joint Ventures and Other Non-Control Investments		Servicing Assets, at FV		Assets HFS		Warrant Liabilities1		Other Real Estate Owned2
Fair value, December 31, 2023	$	469,801	$	118,867	$	41,587	$	29,336	$	—	$	141	$	1,110
Reclasses between loans at FV and LCM	263		4,077		—		—		—		—		—
Reclasses between loans HFS and HFI	—		(599)		—		—		—		—		—
Sales	(2,586)		(179,949)		—		—		—		—		(1,446)
Principal payments received	(71,791)		(16,178)		—		—		—		—		—
Foreclosed real estate acquired	(4,569)		—		—		—		—		—		4,569
SBA loans, funded	122		26,863		—		—		—		—		—
ALP loans, funded	—		283,822		—		—		—		—		—
Mortgage loans, funded	—		103,838		—		—		—		—		—
Additions	—		—		—		14		21,924		—		—
Purchases and repurchases of loans	4,851		—		—		—		—		—		—
Capital contributions/(distributions)	—		—		5,379		—		—		—		—
Change in valuation due to:
Changes in valuation inputs or assumptions	597		31,569		10,712		924		(616)		(8)		(469)
Other factors	(26,942)		(23)		—		(8,212)		—		—		—
Fair value, December 31, 2024	$	369,746	$	372,287	$	57,678	$	22,062	$	21,308	$	133	$	3,764

1 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.

2 Included in Other assets on the Consolidated Statements of Financial Condition.


	Year Ended December 31, 2023
	Loans HFI, at FV		Loans HFS, at FV		Controlled Investments		Joint Ventures and Other Non-Control Investments		Servicing Assets, at FV		Warrant Liabilities1		Other Real Estate Owned2
Fair value, December 31, 2022	$	505,268	$	19,171	$	259,217	$	24,382	$	30,268	$	—	$	3,529
Additions/(removal) of entities consolidating after Conversion to BHC	—		69,745		(259,217)		—		—		—		—
Reclasses between loans at FV and LCM	5,879		(28,513)		—		—		—		—		—
Sales	(23,783)		(180,784)		—		—		—		—		(4,248)
Principal payments received	(77,966)		(6,233)		—		—		—		—		—
Foreclosed real estate acquired	(2,978)				—		—		—		—		2,978
SBA loans, funded	38,889		167,124		—		—		—		—		—
ALP loans, funded	—		69,835		—		—		—		—		—
Additions	—		—		—		—		2,617		311		—
Purchases and repurchases of loans	9,728		5,279		—		—		—		—		—
Capital contributions/(distributions)	—		—		—		13,986		—		—		—
Change in valuation due to:
Changes in valuation inputs or assumptions	13,515		3,931		—		3,219		1,847		(170)		—
Other factors	1,249		(688)		—		—		(5,396)		—		(1,149)
Fair Value, December 31, 2023	$	469,801	$	118,867	$	—	$	41,587	$	29,336	$	141	$	1,110

1 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.

2 Included in Other assets 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:


	December 31, 2024
	Carrying Amount		Fair Value Amount by Level:						Total Fair Value
			Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	6,941	$	6,941	$	—	$	—	$	6,941
Restricted cash	28,226		28,226		—		—		28,226
Interest bearing deposits in banks	346,207		346,207		—		—		346,207
Debt securities available-for-sale, at FV	23,916		23,916		—		—		23,916
Loans HFS, at FV	372,286		—		—		372,286		372,286
Loans HFS, at LCM	58,803		—		—		58,856		58,856
Loans HFI, at FV	369,746		—		—		369,746		369,746
Loans HFI, at amortized cost, net of deferred fees and costs	621,651		—		—		668,687		668,687
Federal Home Loan Bank and Federal Reserve Bank stock	3,585		—		3,585		—		3,585
Joint ventures and other non-control investments, at FV	57,678		—		—		57,678		57,678
Financial Liabilities:
Time deposits	409,251		—		410,442		—		410,442
Borrowings	708,041		—		306,549		413,818		720,367

	December 31, 2023
	Carrying Amount		Fair Value Amount by Level:						Total Fair Value
			Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	15,398	$	15,398	$	—	$	—	$	15,398
Restricted cash	30,919		30,919		—		—		30,919
Interest bearing deposits in banks	137,689		137,689		—		—		137,689
Debt securities available-for-sale, at FV	32,171		29,305		2,866		—		32,171
Loans HFS, at FV	118,867		—		—		118,867		118,867
Loans HFS, at LCM	56,607		—		—		56,733		56,733
Loans HFI, at FV	469,801		—		—		469,801		469,801
Loans HFI, at amortized cost, net of deferred fees and costs	336,305		—		—		337,133		337,133
Federal Home Loan Bank and Federal Reserve Bank stock	3,635		—		3,635		—		3,635
Joint ventures and other non-control investments, at FV	41,587		—		—		41,587		41,587
Financial Liabilities:
Time deposits	167,041		—		168,542		—		168,542
Borrowings	644,122		—		187,555		454,239		641,794

Fair value and valuation assumption

The following table summarizes the fair value and valuation assumptions related to servicing assets at December 31, 2024 and 2023:


	December 31, 2024								December 31, 2023
			Weighted		Range						Weighted		Range
Unobservable Input	Amount		Average		Minimum		Maximum		Amount		Average		Minimum		Maximum
Servicing assets at FV:	$	22,062							$	29,336
Discount factor1			12.00	%	12.00	%	12.00	%			13.50	%	13.50	%	13.50	%
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	%			19.00	%	19.00	%	19.00	%
Servicing assets at LCM:	24,195								10,389
Discount factor1			12.97	%	12.00	%	13.50	%			13.50	%	13.50	%	13.50	%
Cumulative prepayment rate			34.65	%	22.50	%	75.00	%			29.76	%	22.50	%	75.00	%
Average cumulative default rate			18.90	%	5.00	%	20.00	%			19.14	%	19.00	%	20.00	%
Total	$	46,257							$	39,725

1 Determined based on risk spreads and observable secondary market transactions.


	Fair Value as of			Weighted		Range
	December 31, 2024		Unobservable Input	Average		Minimum		Maximum
Assets:
Loans HFI, at FV - accrual	$	302,442	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	$	67,304	Market yields	7.30	%	7.30	%	7.30	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Loans HFS, at FV	$	372,286	Market yields	7.62	%	7.08	%	8.18	%
			Cumulative prepayment rate	59.78	%	50.00	%	70.00	%
			Average cumulative default rate	9.89	%	5.00	%	15.00	%
Joint ventures and other non-control investments	$	57,678	Market yields	8.40	%	8.00	%	12.00	%
			Cost of equity	11.00	%	8.00	%	14.00	%
			Weighted average cost of capital	7.72	%	6.00	%	23.98	%
Servicing assets, at FV1	$	22,062	Market yields	12.00	%	12.00	%	12.00	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	21.00	%	21.00	%	21.00	%
Assets held for sale	$	21,308	Present value factor	90.70	%	89.50	%	93.20	%
			Discount rate	10.23	%	7.27	%	11.71	%
Other real estate owned	$	3,764	Appraised value	N/A		N/A		N/A

Liabilities:
Equity warrants	$	133	Expected volatility	48.00	%	48.00	%	48.00	%
			Dividend yield	6.00	%	6.00	%	6.00	%
			Risk free rate	4.52	%	4.52	%	4.52	%

1 $22.1 million of servicing assets at held at FV and $24.2 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.


	Fair Value as of			Weighted		Range
	December 31, 2023		Unobservable Input	Average		Minimum		Maximum
Assets:
Loans HFI, at FV - accrual	$	421,627	Market yields	7.75	%	7.75	%	7.75	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Loans HFI, at FV - non-accrual	$	48,174	Market yields	7.39	%	7.39	%	7.39	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Loans HFS, at FV	$	118,867	Market yields	6.85	%	6.50	%	7.75	%
			Cumulative prepayment rate	61.03	%	55.60	%	75.00	%
			Average cumulative default rate	20.00	%	20.00	%	20.00	%
Joint ventures and other non-control investments	$	41,227	Market yields	8.02	%	8.00	%	12.00	%
			Cost of equity	12.00	%	10.00	%	14.00	%
			Weighted average cost of capital	8.50	%	7.50	%	9.50	%
	$	360	Cost	N/A		N/A		N/A
Servicing assets, at FV1	$	29,336	Market yields	13.50	%	13.50	%	13.50	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Other real estate owned	$	1,110	Appraised value	N/A		N/A		N/A

Liabilities:
Equity warrants	$	141	Expected volatility	43.00	%	43.00	%	43.00	%
			Dividend yield	5.20	%	5.20	%	5.20	%
			Risk free rate	3.88	%	3.88	%	3.88	%

1 $29.3 million of servicing assets held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS

LOANS - Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	$ 621,651	$ 336,305
Deferred fees and costs	1,281	393
Loans held for investment, at amortized cost, net of deferred fees and costs	621,651	336,305
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	380,981	163,918
CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	191,831	163,803
C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	47,558	8,191
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	$ 620,370	$ 335,912

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2024

Accounting Policies [Abstract]

Reconciliation of cash

The following table provides a reconciliation of cash and due from banks, restricted cash, and interest bearing deposits in banks as of December 31, 2024 and 2023:


	December 31, 2024		December 31, 2023
Cash and due from banks	$	6,941	$	15,398
Restricted cash	28,226		30,919
Interest bearing deposits in banks	346,207		137,689
Total cash and cash equivalents	$	381,374	$	184,006


	December 31, 2024		December 31, 2023
Cash held at Federal Reserve Bank1	$	345,680	$	137,434
Cash held at other financial institutions	35,694		46,572
Total cash and cash equivalents	$	381,374	$	184,006

1 Subject to changes in the Federal Funds rate set by the Federal Open Market Committee

Reconciliation of restricted cash

The following table provides a reconciliation of cash and due from banks, restricted cash, and interest bearing deposits in banks as of December 31, 2024 and 2023:


	December 31, 2024		December 31, 2023
Cash and due from banks	$	6,941	$	15,398
Restricted cash	28,226		30,919
Interest bearing deposits in banks	346,207		137,689
Total cash and cash equivalents	$	381,374	$	184,006


	December 31, 2024		December 31, 2023
Cash held at Federal Reserve Bank1	$	345,680	$	137,434
Cash held at other financial institutions	35,694		46,572
Total cash and cash equivalents	$	381,374	$	184,006

1 Subject to changes in the Federal Funds rate set by the Federal Open Market Committee

BENEFIT PLANS - Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Stock-based compensation expense	$ 4,062	$ 2,828	$ 2,511
Employee Stock Purchase Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Stock-based compensation expense	22	0	0
Restricted Stock
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Stock-based compensation expense	$ 4,040	$ 2,828	$ 2,511

INVESTMENTS - Debt Securities, Unrealized Losses (Details) $ in Thousands	Dec. 31, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Debt Securities, Available-for-Sale [Line Items]
Less Than 12 Months, Fair Value	$ 12,061	$ 32,171
Less Than 12 Months, Unrealized Losses	27	201
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	$ 0	$ 0
Number of Holdings \| loan	2	3
Total, Fair Value	$ 12,061	$ 32,171
Total, Unrealized Losses	27	201
U.S. Treasury notes
Debt Securities, Available-for-Sale [Line Items]
Less Than 12 Months, Fair Value	12,061	29,304
Less Than 12 Months, Unrealized Losses	27	67
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	$ 0	$ 0
Number of Holdings \| loan	2	1
Total, Fair Value	$ 12,061	$ 29,304
Total, Unrealized Losses	27	67
Government agency debentures
Debt Securities, Available-for-Sale [Line Items]
Less Than 12 Months, Fair Value	0	2,867
Less Than 12 Months, Unrealized Losses	0	134
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	$ 0	$ 0
Number of Holdings \| loan	0	2
Total, Fair Value	$ 0	$ 2,867
Total, Unrealized Losses	$ 0	$ 134

SHAREHOLDERS' EQUITY - Dividends Declared and Distributed (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands									3 Months Ended
	Jan. 13, 2025	Oct. 21, 2024	Jul. 19, 2024	Apr. 15, 2024	Jan. 12, 2024	Oct. 20, 2023	Jul. 21, 2023	Apr. 14, 2023	Dec. 31, 2024	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Subsidiary, Sale of Stock [Line Items]
Amount Per Share									$ 0.19	$ 0.19	$ 0.19	$ 0.19	$ 0.18	$ 0.18	$ 0.18	$ 0.18
Cash Distribution									$ 4,833	$ 4,837	$ 4,827	$ 4,617	$ 4,371	$ 4,293	$ 4,293	$ 4,291
DRIP Shares Issued, Shares		0	0	0	0	6	4	6
DRIP Shares Issued, Value		$ 0	$ 0	$ 0	$ 0	$ 71	$ 73	$ 72
Subsequent Event
Subsidiary, Sale of Stock [Line Items]
DRIP Shares Issued, Shares	0
DRIP Shares Issued, Value	$ 0
Series A Convertible Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Amount Per Share									$ 20.00	$ 20.00	$ 20.00	$ 20.00	$ 20.00	$ 20.00	$ 20.00	$ 12.44
Cash Distribution									$ 400	$ 400	$ 400	$ 400	$ 400	$ 400	$ 400	$ 249
Unvested Restricted Stock
Subsidiary, Sale of Stock [Line Items]
DRIP Shares Issued, Shares		8	5	6	6	5	3	5
DRIP Shares Issued, Value		$ 114	$ 78	$ 71	$ 79	$ 63	$ 60	$ 60
Unvested Restricted Stock \| Subsequent Event
Subsidiary, Sale of Stock [Line Items]
DRIP Shares Issued, Shares	13
DRIP Shares Issued, Value	$ 155

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Components of income tax expense

The components of income tax expense for the years ended December 31, 2024 and 2023, were as follows:


	Years ended December 31,
		2024		2023
Current income tax expense/(benefit):
Federal		$	4,637	$	1,251
State		2,799		1,593
Total current expense/(benefit)		7,436		2,844
Deferred income tax expense/(benefit):
Federal		9,076		(4,318)
State		1,327		(482)
Total deferred expense/(benefit)		10,403		(4,800)
Total income tax expense/(benefit)		$	17,839	$	(1,956)

Schedule of effective income tax rate reconciliation


	Years ended December 31,
		2024			2023
Tax on income computed at statutory federal income tax rate		$	14,425		9,528
Increase (decrease) in taxes resulting from:
State income tax, net of federal tax effect		3,538			911
Non-deductible expenses		(148)			788
Realization of net operating loss carryforwards		—			(7,430)
DTA realization due to change in taxpayer status		—			(5,550)
Other, net		24			(203)
Income tax expense/(benefit)		$	17,839		(1,956)
Effective tax rate		25.97		%	(4.31)	%

Schedule of deferred tax assets and liabilities

Significant components of the Company’s net deferred tax asset at December 31, 2024 and 2023 are listed below:


	December 31, 2024		December 31, 2023
Deferred tax assets:
Allowance for Credit Losses	$	7,914	$	3,313
Lease Liabilities	1,737		1,832
Other	2,757		1,669
Purchase Accounting, net	183		331
Stock Compensation	1,134		396
Loans	—		2,677
Goodwill and Intangible Assets	217		—
Federal and state net operating losses, net of federal tax effect	201		2,428
Total deferred tax assets	14,143		12,646
Deferred tax liabilities:
Investments	2,481		650
Servicing Rights	6,234		2,737
Right of Use Assets	1,488		1,502
Goodwill and Intangible Assets	—		2,330
Loans	6,069		—
Other	115		197
Total deferred tax liabilities	16,387		7,416
Net deferred tax asset (liability)	$	(2,244)	$	5,230

LOANS - Individually Assessed (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 24,341	$ 5,348
ACL	7,019	102
Accrued interest	15,500	10,700
SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	21,706	727
ACL	7,019	102
CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2,635	4,621
ACL	0	0
Real Estate Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	22,221	5,246
Real Estate Collateral \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	19,586	625
Real Estate Collateral \| CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2,635	4,621
Non-Real Estate Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2,120	102
Non-Real Estate Collateral \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	2,120	102
Non-Real Estate Collateral \| CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 0	$ 0

BENEFIT PLANS - Shares Outstanding (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding (shares)	771	345
Weighted average grant date fair value (in dollars per share)	$ 14.51	$ 19.18
Unvested Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding (shares)	59	44

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

LOANS - Aging Status of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	$ 372,286	$ 118,867
Loans held for sale, at LCM	58,803	56,607
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	159,788	87,510
Loans held for sale, at LCM	58,803	56,607
ALP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	212,498	31,357
Performing \| Total Past Due and Non-accrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	45,228	9,046
Loans held for sale, at LCM	3,263	0
Performing \| Total Past Due and Non-accrual \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	42,736	9,046
Loans held for sale, at LCM	3,263	0
Performing \| Total Past Due and Non-accrual \| ALP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	2,492	0
Performing \| 30-59 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	29,119	8,796
Loans held for sale, at LCM	2,164	0
Performing \| 30-59 Days \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	29,119	8,796
Loans held for sale, at LCM	2,164	0
Performing \| 30-59 Days \| ALP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	0	0
Performing \| 60-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	15,859	0
Loans held for sale, at LCM	1,099	0
Performing \| 60-89 Days \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	13,367
Loans held for sale, at LCM	1,099	0
Performing \| 60-89 Days \| ALP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	2,492	0
Performing \| 90-119 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	0	0
Loans held for sale, at LCM	0	0
Performing \| 90-119 Days \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	0
Loans held for sale, at LCM	0	0
Performing \| 90-119 Days \| ALP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	0	0
Performing \| 120+ Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	0	0
Loans held for sale, at LCM	0	0
Performing \| 120+ Days \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	0
Loans held for sale, at LCM	0	0
Performing \| 120+ Days \| ALP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	0	0
Performing \| Current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	327,058	109,821
Loans held for sale, at LCM	55,540	56,607
Performing \| Current \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	117,052	78,464
Loans held for sale, at LCM	55,540	56,607
Performing \| Current \| ALP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	210,006	31,357
Nonperforming
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	250	250
Loans held for sale, at LCM	0	0
Nonperforming \| SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	250	250
Loans held for sale, at LCM	0	0
Nonperforming \| ALP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale, at fair value	$ 0	$ 0

NEWTEKONE, INC. - PARENT COMPANY ONLY - Income Statement (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Condensed Income Statements, Captions [Line Items]
Interest income	$ 121,418	$ 94,373	$ 38,617
Net interest income	40,305	26,634	12,292
Noninterest income
Dividends	1,519	1,757	24,657
All other operating income (loss)	40,296	23,762	34,221
Total noninterest income	217,312	176,772	92,878
Noninterest expense
Salaries and employee benefits	77,931	65,708	20,186
Other expenses	21,272	22,357	7,673
Total noninterest expense	162,709	146,329	66,395
Net income before taxes	68,692	45,373	38,775
Income tax expense (benefit)	17,839	(1,956)	6,464
Net income	50,853	47,329	32,311
Net income available to common shareholders	49,253	45,875	$ 32,311
Parent Company
Condensed Income Statements, Captions [Line Items]
Interest income	1,851	2,319
Interest expense	26,647	18,797
Net interest income	(24,796)	(16,478)
Noninterest income
Dividends	42,107	60,317
All other operating income (loss)	2,970	(2,345)
Total noninterest income	45,077	57,972
Noninterest expense
Salaries and employee benefits	10,476	9,365
Other expenses	13,627	10,962
Total noninterest expense	24,103	20,327
Net income before taxes	(3,822)	21,167
Income tax expense (benefit)	2,428	(14,837)
Net income	(6,250)	36,004
Equity in Undistributed (earnings) losses of subs	57,103	26,813
Net income available to common shareholders	$ 50,853	$ 62,817

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 06, 2023	Dec. 31, 2024	Dec. 31, 2023
Goodwill [Line Items]
Goodwill acquired during period	$ 300
Intangible assets		$ 667	$ 4,235
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]		Depreciation and amortization
Banking - Core Deposits
Goodwill [Line Items]
Intangible assets		$ 667	$ 843
NBNYC \| Banking - Core Deposits
Goodwill [Line Items]
Intangible asset, useful life	10 years

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

NEWTEKONE, INC. - PARENT COMPANY ONLY - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2024	Apr. 27, 2023
Other Commitments [Line Items]
Funded account	$ 10.0
NBL Capital One Facility \| Line of Credit \| Payment guarantee
Other Commitments [Line Items]
Guaranty liabilities	21.3
NBL Deutsche Bank Facility \| Line of Credit \| Payment guarantee
Other Commitments [Line Items]
Guaranty liabilities	54.8
NBL One Florida Bank Facility \| Line of Credit \| Payment guarantee
Other Commitments [Line Items]
Guaranty liabilities	23.1
Webster Facility \| Line of Credit \| Payment guarantee
Other Commitments [Line Items]
Guaranty liabilities	32.7
Newtek Business Lending, LLC \| NBL Capital One Facility \| Line of Credit
Other Commitments [Line Items]
Maximum borrowing capacity	60.0
Newtek Business Lending, LLC \| NBL Deutsche Bank Facility \| Line of Credit
Other Commitments [Line Items]
Maximum borrowing capacity	120.0
Newtek Business Lending, LLC \| NBL One Florida Bank Facility \| Line of Credit
Other Commitments [Line Items]
Maximum borrowing capacity	30.0	$ 30.0
Newtek Merchant Solutions, LLC \| Webster Facility \| Line of Credit
Other Commitments [Line Items]
Maximum borrowing capacity	$ 54.9

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Bank Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Total deposits from related parties and their affiliated companies	$ 973,052	$ 463,505
Officers and Directors
Related Party Transaction [Line Items]
FDIC insured deposits	4,732	4,388
Non-FDIC insured deposits	1,098	1,167
Total deposits from related parties and their affiliated companies	$ 5,830	$ 5,555

BENEFIT PLANS - Restricted Stock Activity (Details) - shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
2015 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted (in shares)	0
Restricted Stock \| 2023 and 2015 Stock Incentive Plan \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period	1 year
Restricted Stock \| 2023 and 2015 Stock Incentive Plan \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period	3 years
Restricted Stock \| 2023 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized (in shares)	3,000,000.0
Net restricted stock (granted)/forfeited (in shares)	(497,000)	(82,000)	0	0	0
Shares available for issuance (in shares)	(579,000)
Vesting period	1 year
Restricted Stock \| 2015 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized (in shares)	1,500,000
Net restricted stock (granted)/forfeited (in shares)	0	28,000	(251,000)	(215,000)	(223,000)
Shares available for issuance (in shares)	(661,000)

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Summary of obligations and commitments under operating lease and employment agreements

The following summarizes the Company’s obligations and commitments, as of December 31, 2024 for future minimum cash payments required under operating lease and employment agreements:


Year	Operating Leases		Employment Agreements1		Total
2025	$	2,383	$	902	$	3,285
2026	2,355		—		2,355
2027	798		—		798
2028	242		—		242
2029	249		—		249
Thereafter	2,237		—		2,237
Total	$	8,264	$	902	$	9,166

1 Employment agreements with certain of the Company’s named executive officers.

Schedule of unfunded commitments

At December 31, 2024 and 2023, the Company had unfunded commitments as follows:


	December 31, 2024		December 31, 2023
SBA 7(a) loans	$	25,032	$	20,365
SBA 504 loans	72,557		81,023
C&I loans	9,542		13,150
ALP loans	—		10,877
Total unfunded commitments	$	107,132	$	125,415

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2024

Earnings Per Share [Abstract]

Schedule of earnings per share


	Year Ended December 31,
		2024		2023		2022

		Financial Holding Company		Financial Holding Company		Investment Company
Basic earnings per share:
Net income available to common shareholders		$	49,253	$	45,875	$	32,311
Weighted-average basic shares outstanding		24,945		24,263		24,198
Basic earnings per share		$	1.97	$	1.89	$	1.34
Diluted earnings per share:
Net income, for diluted earnings per share		$	49,253	$	45,875	$	32,311
Add: Preferred dividends on dilutive Series A convertible preferred stock¹		—		—		—
Net income, for diluted earnings per share		49,253		45,875		32,311
Total weighted-average basic shares outstanding		24,945		24,263		24,198
Add effect of dilutive restricted stock awards²		241		85		—

Total weighted-average diluted shares outstanding³		25,186		24,348		24,198
Diluted earnings per share		$	1.96	$	1.88	$	1.34
Anti-dilutive warrants, restricted stock awards, and Series A convertible preferred stock		998		1,153		—

2 Incremental diluted shares from restricted stock awards under the treasury stock method.

ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE (Tables)

12 Months Ended

Dec. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Assets and liabilities held for sale

The following tables present the assets classified as held for sale and the liabilities directly associated with assets classified as held for sale as of December 31, 2024:


ASSETS			LIABILITIES
Held for Sale			Directly Associated with Assets Held for Sale
Cash and due from banks	$	325	Lease liabilities	$	685
Goodwill	11,800		Deferred tax liabilities, net	2,975
Intangibles	3,030		Accounts payable, accrued expenses and other liabilities	2,564
Right of use assets	619
Other assets	6,150
Valuation allowance1	(616)
	$	21,308		$	6,224

1 The associated expense is included in Other general and administrative costs in the consolidated statements of operations for the year ended December 31, 2024.

The intangible asset for customer lists within the technology segment existed prior to the consolidation of the technology segment into NewtekOne following the Acquisition.


	As of December 31, 2024
	Gross carrying Amount		Accumulated Amortization		Net Carrying amount
Technology Customer Lists	$	6,525	$	(3,495)	$	3,030

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-SubTopic 10
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

INVESTMENTS - Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Amortized Cost
Maturing within 1 year	$ 15,833	$ 32,372
After 1 year through 5 years	8,101	0
Total	23,934	32,372
Fair Value
Maturing within 1 year	15,838	32,171
After 1 year through 5 years	8,078	0
Total	$ 23,916	$ 32,171

LEASES

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

LEASES

NOTE 19—LEASES:

Under ASC 842, operating lease expense is generally recognized on a straight-line basis over the term of the lease. The Company has entered into operating lease agreements for office space with remaining contractual terms up to fifteen years, some of which include renewal options that extend the leases for up to 10 years. These renewal options are not considered in the remaining lease term unless it is reasonably certain the Company will exercise such options. The operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table summarizes supplemental cash flow and other information related to our operating leases:


	Year Ended December 31,
		2024	2023	2022
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)		$2,874	$2,693	$1,886
Weighted-average remaining lease term - operating leases		5.87 years	2.88 years	4.41 years
Weighted-average discount rate - operating leases		5.94%	5.50%	4.73%
Total lease costs1		$3,115	$3,124	$1,000

1 Included in Other general and administrative costs on the consolidated statements of operations.

The following table represents the maturity of the Company’s operating lease liabilities as of December 31, 2024:


Maturity of Lease Liabilities
2025	$	2,383
2026	2,355
2027	798
2028	242
2029	249
Thereafter	2,237
Total future minimum lease payments	$	8,264
Less: Imputed interest	(1,766)
Present value of future minimum lease payments	$	6,498

BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

Schedule of restricted stock issuances

The following table summarizes the restricted stock issuances under the 2015 and 2023 Stock Incentive Plans, net of shares forfeited, if any:


	2023 Plan2	2015 Plan
Restricted Stock authorized under the plan1	3.0 million	1.5 million
Net restricted stock (granted)/forfeited during:
Year ended December 31, 2020 and prior	—	(223)
Year ended December 31, 2021	—	(215)
Year ended December 31, 2022	—	(251)
Year ended December 31, 2023	(82)	28
Year ended December 31, 2024	(497)	—
Total net restricted stock (granted)/forfeited	(579)	(661)

1 No stock options were granted under the 2015 or 2023 Stock Incentive Plans.

2 The 2023 Stock Incentive Plan provides for an initial share reserve of up to 3.0 million shares of Common Stock.

The following table summarizes the Company’s ESPP activity from inception through December 31, 2024:


	Year Ended December 31, 2024								Year Ended December 31, 2023
	Offering Period						Total		Offering Period		Total
Commencement date	10/1/2024		4/1/2024		10/1/2023				10/1/2023
End date	12/15/2024		9/15/2024		3/15/2024				12/15/2023
Shares purchased	5		10		5		20		4		4
Weighted average share price	$	11.03	$	10.21	$	9.83	$	10.32	$	13.05	$	13.05
Total purchased, net of discount	$	55	$	101	$	51	$	207	$	51	$	51

The ESPP share activity is as follows:


						Shares
ESPP shares authorized under the plan						200
ESPP shares purchased during:
Year ended December 31, 2023						(4)
Year ended December 31, 2024						(20)
Available for future purchases, December 31, 2024						176

Investment company, changes in net assets

Details of the Company’s outstanding shares related to restricted stock awards as of December 31, 2024 and December 31, 2023 are outlined below:


	December 31, 2024	December 31, 2023
Shares outstanding related to grants of restricted stock awards	771	345
Weighted average grant date fair value of awards	$14.51	$19.18
Additional shares outstanding related to dividends on awards	59	44

Schedule of unrecognized compensation

As of December 31, 2024 and December 31, 2023, the Company’s total unrecognized compensation expense related to unvested shares of restricted stock granted was as follows.

December 31, 2024

December 31, 2023

Unrecognized compensation expense on unvested awards

$5,929

$3,610

Weighted-average period of unrecognized compensation expense

1.0 year

1.7 years


	Year Ended December 31,
		2024		2023		2022
Restricted stock awards		$	4,040	$	2,828	$	2,511
ESPP		22		—		—
Total compensation cost recognized for stock-based compensation plans		$	4,062	$	2,828	$	2,511

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	As Reported	Adjustment	Controlled Investments Adjustment	Common stock	Common stock As Reported	Common stock Adjustment	Preferred stock	Preferred stock As Reported	Preferred stock Controlled Investments Adjustment	Additional paid-in capital	Additional paid-in capital As Reported	Additional paid-in capital Adjustment	Additional paid-in capital Controlled Investments Adjustment	Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss) As Reported	Accumulated undistributed earnings	Accumulated undistributed earnings As Reported	Accumulated undistributed earnings Adjustment	Retained earnings	Retained earnings As Reported	Retained earnings Controlled Investments Adjustment
Beginning balance (in shares) at Dec. 31, 2021					24,159
Beginning balance at Dec. 31, 2021	$ 403,887				$ 483						$ 367,663						$ 35,741
Increase (Decrease) in Stockholders' Equity [Roll Forward]
DRIP shares issued (in shares)							95
DRIP shares issued			$ 1,614				$ 3						$ 1,611
Stock-based compensation expense, net of forfeitures	2,511										2,511
Dividends declared related to RSA, net of accrued dividends forfeited	0										646						(646)
Purchase of vested stock for employee payroll tax withholding (in shares)					(38)
Purchase of vested stock for employee payroll tax withholding	(826)										(826)
Restricted stock awards (in shares)					286
Restricted stock awards, net of forfeitures	0				$ 4						(4)
Issuance of stock (in shares)					107
Issuance of stock	2,019				$ 2						2,017
Dividends declared common shares	(66,158)																(66,158)
RIC tax reclassification	0										(19,375)						19,375
Dividends declared preferred shares	0
Other comprehensive income (loss), net of tax	0
Net investment income (loss)	(6,476)																(6,476)
Net realized gain on investments	57,346																57,346
Net unrealized depreciation on investments	(18,559)																(18,559)
Ending balance (in shares) at Dec. 31, 2022					24,609	24,609
Ending balance at Dec. 31, 2022	375,358	$ 375,358			$ 492	$ 492			$ 0		354,243	$ 354,243				$ 0	20,623	$ 20,623			$ 0
Ending balance, preferred stock (in shares) at Dec. 31, 2022									0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in presentation			0										20,623						$ (20,623)
Removal of fair value adjustments			(138,043)										(138,043)
Consolidation of controlled investments				$ (57,859)						$ 245				$ (57,961)								$ (143)
Reassessment of deferred tax assets and liabilities			19,266										19,266
DRIP shares issued (in shares)							16
DRIP shares issued			$ 216										$ 216
Stock-based compensation expense, net of forfeitures	2,828										2,828
Dividends declared related to RSA, net of accrued dividends forfeited (in shares)					16
Dividends declared related to RSA, net of accrued dividends forfeited	0										218									$ (218)
Purchase of vested stock for employee payroll tax withholding (in shares)					(17)
Purchase of vested stock for employee payroll tax withholding	(534)				$ (1)						(533)
Restricted stock awards (in shares)					52
Restricted stock awards, net of forfeitures	1				$ 1
ESPP issuances (in shares)					4
ESPP issuances	56										56
Issuance of stock (in shares)								20
Issuance of stock	$ 20,000							$ 20,000
Dividends and distributions declared per common share (in dollars per share)	$ 0.54
Preferred stock issuance costs	$ (507)							(507)
Dividends declared common shares	$ (17,463)																			(17,463)
Dividends declared preferred shares (in dollars per share)	$ 72.44
Dividends declared preferred shares	$ (1,454)																			(1,454)
Net income (loss)	47,329																			47,329
Other comprehensive income (loss), net of tax	$ (148)														$ (148)
Ending balance (in shares) at Dec. 31, 2023	24,680				24,680
Ending balance at Dec. 31, 2023	$ 249,046				$ 492			$ 19,738			200,913				(148)		$ 0			28,051
Ending balance, preferred stock (in shares) at Dec. 31, 2023	20							20
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense, net of forfeitures	$ 4,040										4,040
Dividends declared related to RSA, net of accrued dividends forfeited (in shares)					33
Dividends declared related to RSA, net of accrued dividends forfeited	0										420									(420)
Purchase of vested stock for employee payroll tax withholding (in shares)					(25)
Purchase of vested stock for employee payroll tax withholding	(299)										(299)
Restricted stock awards (in shares)					513
Restricted stock awards, net of forfeitures	12				$ 12
Retirement of common shares (in shares)					(30)
Retirement of common shares	(402)				$ (1)						(401)
ESPP issuances (in shares)					20
ESPP issuances	227										227
Issuance of stock (in shares)					1,100
Issuance of stock	$ 13,389				$ 23						13,366
Dividends and distributions declared per common share (in dollars per share)	$ 0.38
Dividends declared common shares	$ (19,111)																			(19,111)
Dividends declared preferred shares (in dollars per share)	$ 80.00
Dividends declared preferred shares	$ (1,600)																			(1,600)
Net income (loss)	50,853																			50,853
Other comprehensive income (loss), net of tax	$ 127														127
Ending balance (in shares) at Dec. 31, 2024	26,291				26,291
Ending balance at Dec. 31, 2024	$ 296,282				$ 526			$ 19,738			$ 218,266				$ (21)					$ 57,773
Ending balance, preferred stock (in shares) at Dec. 31, 2024	20							20

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
LEASES - Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)	$ 2,874	$ 2,693	$ 1,886
Weighted-average remaining lease term - operating leases	5 years 10 months 13 days	2 years 10 months 17 days	4 years 4 months 28 days
Weighted-average discount rate - operating leases	5.94%	5.50%	4.73%
Total lease costs	$ 3,115	$ 3,124	$ 1,000

SERVICING ASSETS - LOCOM (Details) - USD ($) $ in Thousands	12 Months Ended
SERVICING ASSETS - LOCOM (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 31, 2023
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Beginning value	$ 10,389
Additions/(removal) of entities consolidating after Conversion to BHC		$ 486
Amortization	(5,378)	(733)
Additions	19,184	10,636
Impairment assessment	0	0
Ending value	$ 24,195	$ 10,389

INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Investments, Owned, Federal Income Tax Note [Line Items]
Effective tax rate	25.97%	(4.31%)
Future Taxable Periods
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating losses	$ 4.1
Tax Years 2029 through 2037
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating losses	$ 4.0

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2024

Banking and Thrift, Interest [Abstract]

Deposit liabilities

The following table summarizes deposits by type:


	December 31, 2024		December 31, 2023
Non-interest-bearing:
Demand	$	11,142	$	10,053
Interest-bearing:
Checking	103,978		11,456
Money market	62,001		15,803
Savings	386,680		259,152
Time deposits	409,251		167,041
Total interest-bearing	961,910		453,452
Total deposits	$	973,052	$	463,505

Time deposits, money market, and interest-bearing checking obtained through brokers	$	27,100	$	53,548
Aggregate amount of deposit accounts that exceeded the FDIC limit	$	140,679	$	66,511
Demand deposit overdrafts reclassified as loan balances	$	17	$	53
Certificates of deposit in excess of $0.25 million	$	99,231	$	20,070

Time deposit maturities

The following table summarizes the scheduled maturities of time deposits:


2025	$	351,906
2026	36,347
2027	20,180
2028	680
2029	138
Thereafter	—
Total time deposits	$	409,251

- Definition

Tabular disclosure of type of deposit liability.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph e
-Publisher SEC

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph d
-Publisher SEC

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph c
-Publisher SEC

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (5)
-Publisher SEC

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (4)
-Publisher SEC

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (3)
-Publisher SEC

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (2)
-Publisher SEC

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (1)
-Publisher SEC

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Publisher SEC

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph f
-Subparagraph (1)
-Publisher SEC

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph f
-Subparagraph (2)
-Publisher SEC

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph f
-Subparagraph (2)(i)
-Publisher SEC

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph f
-Subparagraph (2)(iv)
-Publisher SEC

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph f
-Subparagraph (2)(iii)
-Publisher SEC

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph f
-Subparagraph (2)(ii)
-Publisher SEC

+ Details

FAIR VALUE MEASUREMENTS - Unobservable Units (Details) $ in Thousands	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset	$ 22,062	$ 29,336
Other real estate owned	3,764	1,110
Servicing assets at fair value	46,257	39,725
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets at fair value	22,062	29,336
Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets at fair value	24,195	10,389	$ 0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset	22,062	29,336
Assets held for sale	21,308
Other real estate owned	3,764	1,110
Equity warrants	133	141
Joint Ventures and Other Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	57,678	41,587
Assets held for sale	21,308
Joint Ventures and Other Non-Control Investments \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	57,678	41,587
Assets held for sale	21,308
Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	56,900	40,859	23,022
Other Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	778	728	$ 1,360
Unguaranteed Investments Accrual \| Non-affiliate \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	302,442	421,627
Unguaranteed Investments Non-Accrual \| Non-affiliate \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	67,304	48,174
Loans Held For Sale \| Non-affiliate \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 372,286	118,867
Market yields \| Joint Ventures and Other Non-Control Investments \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments		41,227
Cost \| Joint Ventures and Other Non-Control Investments \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments		$ 360
Weighted Average \| Market yields \| Joint Ventures and Other Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0840	0.0802
Weighted Average \| Market yields \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0655	0.0775
Weighted Average \| Market yields \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0730	0.0739
Weighted Average \| Market yields \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0762	0.0685
Weighted Average \| Market yields \| Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1200	0.1350
Weighted Average \| Cumulative prepayment rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Weighted Average \| Cumulative prepayment rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.3465	0.2976
Weighted Average \| Cumulative prepayment rate \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2250	0.2250
Weighted Average \| Cumulative prepayment rate \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0	0
Weighted Average \| Cumulative prepayment rate \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.5978	0.6103
Weighted Average \| Cumulative prepayment rate \| Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Weighted Average \| Average cumulative default rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2100	0.1900
Weighted Average \| Average cumulative default rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1890	0.1914
Weighted Average \| Average cumulative default rate \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2100	0.1900
Weighted Average \| Average cumulative default rate \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.3000	0.3000
Weighted Average \| Average cumulative default rate \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0989	0.2000
Weighted Average \| Average cumulative default rate \| Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2100	0.1900
Weighted Average \| Cost \| Joint Ventures and Other Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1100	0.1200
Weighted Average \| Weighted average cost of capital \| Joint Ventures and Other Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0772	0.0850
Weighted Average \| Present value factor
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset held for sale, measurement input	0.9070
Weighted Average \| Discount rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset held for sale, measurement input	0.1023
Weighted Average \| Discount rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1200	0.1350
Weighted Average \| Discount rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1297	0.1350
Weighted Average \| Expected volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.4800	0.4300
Weighted Average \| Dividend yield
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0600	0.0520
Weighted Average \| Risk free rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0452	0.0388
Minimum \| Market yields \| Joint Ventures and Other Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0800	0.0800
Minimum \| Market yields \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0655	0.0775
Minimum \| Market yields \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0730	0.0739
Minimum \| Market yields \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0708	0.0650
Minimum \| Market yields \| Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1200	0.1350
Minimum \| Cumulative prepayment rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum \| Cumulative prepayment rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum \| Cumulative prepayment rate \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2250	0.2250
Minimum \| Cumulative prepayment rate \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0	0
Minimum \| Cumulative prepayment rate \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.5000	0.5560
Minimum \| Cumulative prepayment rate \| Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum \| Average cumulative default rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2100	0.1900
Minimum \| Average cumulative default rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.0500	0.1900
Minimum \| Average cumulative default rate \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2100	0.1900
Minimum \| Average cumulative default rate \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.3000	0.3000
Minimum \| Average cumulative default rate \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0500	0.2000
Minimum \| Average cumulative default rate \| Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2100	0.1900
Minimum \| Cost \| Joint Ventures and Other Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0800	0.1000
Minimum \| Weighted average cost of capital \| Joint Ventures and Other Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0600	0.0750
Minimum \| Present value factor
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset held for sale, measurement input	0.8950
Minimum \| Discount rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset held for sale, measurement input	0.0727
Minimum \| Discount rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1200	0.1350
Minimum \| Discount rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1200	0.1350
Minimum \| Expected volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.4800	0.4300
Minimum \| Dividend yield
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0600	0.0520
Minimum \| Risk free rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0452	0.0388
Maximum \| Market yields \| Joint Ventures and Other Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1200	0.1200
Maximum \| Market yields \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0655	0.0775
Maximum \| Market yields \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0730	0.0739
Maximum \| Market yields \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0818	0.0775
Maximum \| Market yields \| Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1200	0.1350
Maximum \| Cumulative prepayment rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Maximum \| Cumulative prepayment rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.7500	0.7500
Maximum \| Cumulative prepayment rate \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2250	0.2250
Maximum \| Cumulative prepayment rate \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0	0
Maximum \| Cumulative prepayment rate \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.7000	0.7500
Maximum \| Cumulative prepayment rate \| Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Maximum \| Average cumulative default rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2100	0.1900
Maximum \| Average cumulative default rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2000	0.2000
Maximum \| Average cumulative default rate \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2100	0.1900
Maximum \| Average cumulative default rate \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.3000	0.3000
Maximum \| Average cumulative default rate \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1500	0.2000
Maximum \| Average cumulative default rate \| Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2100	0.1900
Maximum \| Cost \| Joint Ventures and Other Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1400	0.1400
Maximum \| Weighted average cost of capital \| Joint Ventures and Other Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2398	0.0950
Maximum \| Present value factor
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset held for sale, measurement input	0.9320
Maximum \| Discount rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset held for sale, measurement input	0.1171
Maximum \| Discount rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1200	0.1350
Maximum \| Discount rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1350	0.1350
Maximum \| Expected volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.4800	0.4300
Maximum \| Dividend yield
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0600	0.0520
Maximum \| Risk free rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0452	0.0388

LEASES - Narrative (Details)	Dec. 31, 2024
Leases [Abstract]
Remaining contractual term	15 years
Renewal term	10 years

COMMITMENTS AND CONTINGENCIES - Obligations and Commitments Under Operating Lease and Employment Agreements (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Operating Leases
Year one	$ 2,383
Year two	2,355
Year three	798
Year four	242
Year five	249
Thereafter	2,237
Total	8,264
Employment Agreement
Year one	902
Year two	0
Year three	0
Year four	0
Year five	0
After year five	0
Total	902
Total
Year one	3,285
Year two	2,355
Year three	798
Year four	242
Year five	249
Thereafter	2,237
Total	$ 9,166