INVESTMENTS (Tables)
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12 Months Ended |
Dec. 31, 2024 |
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| Investments, Debt and Equity Securities [Abstract] |
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| 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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.
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| 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 | |
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| 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 | |
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| 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 | |
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| 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 | | — | $— | | | |
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| Debt securities, 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 | |
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| 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 | |
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