XML 39 R28.htm IDEA: XBRL DOCUMENT v3.24.3
SEGMENTS
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENTS
NOTE 19—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. Accordingly, the Company operates four reportable segments for management reporting purposes 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.

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 will divest or otherwise terminate the activities conducted by NTS by January 6, 2025, subject to any extension. As a result of the Company’s entry into the NTS Sale Agreement and the Company’s anticipation to divest of NTS, the Company has reported NTS as Held for Sale as of September 30, 2024. See NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE.

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 nine months ended September 30, 2024
BankingTechnologyNSBFPaymentsCorporate and OtherEliminationsConsolidated
Interest income$48,884 $3 $28,894 $1,776 $11,628 $(3,494)$87,691 
Interest expense20,635 — 16,733 2,289 22,515 (3,494)58,678 
Net interest income/(loss)
28,249 3 12,161 (513)(10,887)— 29,013 
Provision for loan credit losses16,742 — — — — — 16,742 
Net interest income after provision for loan credit losses11,507 3 12,161 (513)(10,887)— 12,271 
Noninterest income100,326 19,701 (15,475)39,090 76,646 (67,050)153,238 
Noninterest expense61,358 19,755 14,647 24,404 28,290 (27,884)120,570 
Income before taxes
50,475 (51)(17,961)14,173 37,469 (39,166)44,939 
Income tax expense (benefit)15,136 — — — (2,726)— 12,410 
Net income
$35,339 $(51)$(17,961)$14,173 $40,195 $(39,166)$32,529 
Assets$935,357 $21,919 $535,935 $62,710 $988,402 $(870,153)$1,674,170 

As of and for the nine months ended September 30, 2023 (as restated)
BankingTechnologyNSBFPaymentsCorporate and OtherEliminationsConsolidated
Interest income$22,364 $— $38,841 $1,627 $8,673 $(3,501)$68,004 
Interest expense11,265 246 20,223 2,735 18,703 (3,501)49,671 
Net interest income/(loss)
11,099 (246)18,618 (1,108)(10,030)— 18,333 
Provision for loan credit losses7,339 — — — — — 7,339 
Net interest income after provision for loan credit losses3,760 (246)18,618 (1,108)(10,030)— 10,994 
Noninterest income58,887 23,683 26,500 34,982 75,863 (92,250)127,665 
Noninterest expense42,858 21,551 23,514 23,975 22,673 (26,451)108,120 
Income before taxes
19,789 1,886 21,604 9,899 43,160 (65,799)30,539 
Income tax expense (benefit)6,725 87 44 447 (13,244)— (5,941)
Net income
$13,064 $1,799 $21,560 $9,452 $56,404 $(65,799)$36,480 
Assets$603,766 $30,211 $659,822 $50,994 $697,408 $(648,706)$1,393,495 
As of and for the three months ended September 30, 2024
BankingTechnologyNSBFPaymentsCorporate and OtherEliminationsConsolidated
Interest income$18,820 $2 $8,871 $612 $4,122 $(1,156)$31,271 
Interest expense7,603 — 5,079 730 8,034 (1,156)20,290 
Net interest income11,217 2 3,792 (118)(3,912)— 10,981 
Provision for loan credit losses6,928 — — — — — 6,928 
Net interest income after provision for loan credit losses4,289 2 3,792 (118)(3,912)— 4,053 
Noninterest income35,423 5,494 (8,845)12,719 36,536 (29,476)51,851 
Noninterest expense20,467 5,395 5,738 7,296 9,814 (9,863)38,847 
Income before taxes
19,245 101 (10,791)5,305 22,810 (19,613)17,057 
Income tax expense (benefit)5,760 — — — (637)— 5,123 
Net income (loss)$13,485 $101 $(10,791)$5,305 $23,447 $(19,613)$11,934 
Assets$935,357 $21,919 $535,935 $62,710 $988,402 $(870,153)$1,674,170 

As of and for the three months ended September 30, 2023 (as restated)
BankingTechnologyNSBFPaymentsCorporate and OtherEliminationsConsolidated
Interest income$10,513 $— $12,868 $482 $3,848 $(975)$26,736 
Interest expense5,371 — 6,930 925 6,408 (975)18,659 
Net interest income5,142 — 5,938 (443)(2,560)— 8,077 
Provision for loan credit losses3,446 — — — — — 3,446 
Net interest income after provision for loan credit losses1,696 — 5,938 (443)(2,560)— 4,631 
Noninterest income26,360 7,283 188 12,173 41,283 (46,261)41,026 
Noninterest expense14,789 6,517 4,698 7,755 6,420 (8,859)31,320 
Income before taxes
13,267 766 1,428 3,975 32,303 (37,402)14,337 
Income tax expense (benefit)4,462 — 5 — (1,049)— 3,418 
Net income (loss)$8,805 $766 $1,423 $3,975 $33,352 $(37,402)$10,919 
Assets$603,766 $30,211 $659,822 $50,994 $697,408 $(648,706)$1,393,495