NewtekOne provides update on financial holding company transition, forecasts

On January 6, 2023, NewtekOne (NEWT) completed the acquisition of National Bank of New York City, withdrew its BDC election, and became a financial holding company. On January 13, 2023, Newtek Business Services Corp. changed its name to NewtekOne and NBNYC, the 59-year-old nationally chartered bank, was renamed Newtek Bank, National Association, a wholly owned subsidiary of NewtekOne. As a result, NewtekOne, a financial holding company, no longer qualifies as a regulated investment company for federal income tax purposes and will no longer qualify for accounting treatment as an investment company. Going forward, Newtek Bank, N.A. and NewtekOne’s former portfolio companies and other subsidiaries will be consolidated in the Company’s financial statements. As a result, NewtekOne’s financial reporting metrics will change beginning with the first quarter 2023 quarterly report. Barry Sloane, Chairman, President and CEO said, "Given the volatility in capital markets and banking deposit funding, we thought it would be useful to update the market on our transition to a financial holding company. Important to note, neither NewtekOne or its subsidiaries are borrowers or depositories with Silicon Valley Bank (SIVB) or Silvergate Bank (SI). In addition, Newtek Bank, N.A., as a depository, only accepts USD currency and has zero exposure to any depositor or borrower who wants to transact in crypto currency, and does not accept or recognize it as a form of currency or barter."