REGULATORY CAPITAL

12 Months Ended

Dec. 31, 2023

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, 2023 are presented in the table below:

	Actual				For Capital Adequacy Purposes1				For Consideration as Well-Capitalized
NewtekOne, Inc. - December 31, 2023	Amount		Ratio		Amount		Ratio		Amount	Ratio
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, 2023, are presented in the table below. As of December 31, 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, 2023	Amount		Ratio		Amount		Ratio		Amount		Ratio
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.