v3.25.1
LOANS (Tables)
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Investment holdings, schedule of investments
Investments consisted of the following at:
December 31, 2024December 31, 2023
CostFair ValueCostFair 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, 2024December 31, 2023
CostFair ValueCostFair Value
CRE$162,894 $175,353 $203,882 $218,334 
Residential Real Estate69,667 67,474 94,877 88,051 
Machinery and Equipment¹60,460 56,454 74,691 67,069 
Accounts Receivable and Inventory59,449 54,267 80,746 74,596 
Unsecured5,643 5,644 6,851 6,898 
Other²13,033 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, 2024December 31, 2023
SBA$380,981 $163,918 
CRE191,831 163,803 
C&I47,558 8,191 
Total Loans620,370 335,912 
Deferred fees and costs, net1,281 393 
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
CurrentTotal 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
CurrentTotal 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
CurrentTotal 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&I275 — — — — 275 47,283 47,558 
Total, at amortized cost
$11,539 $9,046 $— $— $24,341 $44,926 $575,444 $620,370 
Deferred fees and costs1,281 
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
CurrentTotal 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 
CRE948 — — — 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 costs393 
Total, at amortized cost net of deferred fees and costs$336,305 
Allowance for credit losses(12,574)
Total, at amortized cost, net$323,731 
Credit quality indicators
The following tables present asset quality indicators by portfolio class and origination year at December 31, 2024 and December 31, 2023:
December 31, 2024Term Loans HFI by Origination Year
20242023202220212020PriorTotal
SBA, at fair value
Risk Grades 1-4$— $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 5-67,475 32,753 — — — — 40,228 
Risk Grade 7588 4,132 — — — — 4,720 
Risk Grade 885 255 — — — — 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, 2023Term Loans HFI by Origination Year
20232022202120202019PriorTotal
SBA, at fair value
Risk Grades 1-4$34,289 $151,929 $53,998 $27,870 $52,175 $94,751 $415,012 
Risk Grades 5-6349 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 5-62,655 — — — — — 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, 2024December 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, 2024December 31, 2023
ACL
CREC&ISBATotalCREC&ISBATotal
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, 2024December 31, 2023
Recorded Investment
CREC&ISBATotalCREC&ISBATotal
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, 2024December 31, 2023
Real Estate CollateralNon-Real Estate CollateralTotal
ACL
Real Estate Collateral
Non-Real Estate Collateral
Total
ACL
SBA$19,586 $2,120 $21,706 $7,019 $625 $102 $727 $102 
CRE2,635 — 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, 2024December 31, 2023
Nonaccrual without AllowanceNonaccrual with AllowanceACL
Nonaccrual without Allowance
Nonaccrual with AllowanceACL
SBA$7,264 $14,444 $7,019 $625 $102 $102 
CRE2,635 — — 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
CurrentTotal 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
CurrentTotal 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
CurrentTotal 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 $58,803 
As of December 31, 2023
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Carried at Amortized Cost
30-59 Days
60-89 Days
90-119 Days
120+ Days
At LCM
SBA$— $— $— $— $— $— $56,607 $56,607 
Total, at LCM
$— $— $— $— $— $— $56,607 $56,607 
Held for sale
December 31, 2024December 31, 2023
SBA 504 First Lien$128,255 $66,387 
SBA 504 Second Lien26,678 20,757 
SBA 7(a)4,855 262 
SBA 7(a) Partials— 104 
ALP212,498 31,357 
Loans held for sale, at fair value$372,286 $118,867 
Loans held for sale, at LCM
December 31, 2024December 31, 2023
SBA 504 First Lien$36,783 $39,565 
SBA 504 Second Lien8,203 5,741 
SBA 7(a)— 64 
SBA 7(a) Partials13,817 11,237 
Loans held for sale, at LCM
58,803 56,607