Newtek Business Services Corp. (“Newtek” or the “Company”)
(Nasdaq: NEWT), an internally managed business development company
(“BDC”), announced today its financial and operating results for
three months ended March 31, 2022.
First Quarter 2022 Financial Highlights
- Total investment income of $20.3 million for the three
months ended March 31, 2022; a decrease of (41.4)% over total
investment income of $34.7 million for the three months ended
March 31, 2021. First quarter 2021 financial results included
$24.2 million of fee income from the Paycheck Protection Program
("PPP") which, as previously disclosed, is not recurring.
- Net investment income of $1.0 million, or $0.04 per share,
for the three months ended March 31, 2022, which represents a
(94.1)% decrease, on a per share basis, compared to net investment
income of $15.2 million, or $0.68 per share, for the three months
ended March 31, 2021. First quarter 2021 financial results included
$24.2 million of fee income from the PPP which, as previously
disclosed, is not recurring.
- Adjusted net investment income ("ANII")1 of $17.3 million,
or $0.72 per share, for the three months ended March 31, 2022; a
decrease of (31.4)%, on a per share basis, compared to ANII of
$23.5 million, or $1.05 per share, for the three months ended
March 31, 2021. First quarter 2021 financial results included $24.2
million of fee income from the PPP which, as previously disclosed,
is not recurring.
- Debt-to-equity ratio of 1.17x at March 31, 2022; proforma
debt-to-equity ratio was 1.14x after taking into account the sales
of government-guaranteed portions of SBA 7(a) loans prior to March
31, 2022, which sales settled subsequent to the balance sheet
date.
- Total investment portfolio increased by 5.2% to
$764.1 million at March 31, 2022, from $726.1 million at
March 31, 2021.
- Net asset value (“NAV”) of $398.5 million, or $16.49 per
share, at March 31, 2022; a decrease of (1.4)% on a per share
basis, compared to NAV of $16.72 per share at December 31,
2021.
2022 Dividend Declarations &
Payments
- On March 31, 2022, the Company paid a first quarter 2022
cash dividend of $0.65 per share to shareholders of record as of
March 21, 2022, which represented a 30.0% increase over the
first quarter 2021 dividend of $0.50 per share.
- The Company's board of directors declared a second quarter 2022
dividend of $0.752 per share, which represents a 7.1% increase over
the second quarter 2021 dividend, and is payable on June 30,
2022 to shareholders of record on June 20, 2022.
- The Company has paid and declared dividends totaling $1.40 per
share for the first and second quarters of 2022, which represents a
16.7% increase over dividends paid in the first and second quarters
of 2021.
Lending Highlights
- Newtek Small Business Finance, LLC (“NSBF”) funded $163.3
million of SBA 7(a) loans during the three months ended March 31,
2022; a 56.5% increase over the $104.4 million of SBA 7(a) loans
funded for the three months ended March 31, 2021.
- NSBF forecasts funding approximately $750 million of SBA 7(a)
loans for the full year 2022, which represents a 33.8% increase
over $560.6 million of SBA 7(a) loans funded in 2021.
- Newtek Business Lending ("NBL"), a wholly owned portfolio
company closed $31.4 million SBA 504 loans during the three months
ended March 31, 2022; an increase of 67.0% over $18.8 million SBA
504 loans closed during the three months ended March 31, 2021.
- NBL forecasts closing approximately $150 million SBA 504 loans
for the full year 2022, which would represent a 66.5% increase over
$90.1 million of SBA 504 closings in 2021.
Additional First Quarter 2022
Highlights
- On January 28, 2022, Newtek's joint venture, Newtek
Conventional Lending LLC (“NCL”), closed a conventional commercial
loan securitization with the sale of $56.3 million of Class A Notes
("Notes"), NCL Business Loan Trust 2022-1, secured by a segregated
asset pool consisting primarily of conventional commercial business
loans. The Notes were rated “A” (sf) by DBRS Morningstar.
Barry Sloane, Chairman, President and Chief Executive Officer
said, “We believe that Newtek’s performance in the first quarter
demonstrated continued growth in our business model and performance
metrics. One must keep in mind that the pandemic influenced
business results in 2020 and 2021, and our goal in 2022 is to
replace approximately $50 million in PPP fee income we earned in
2021, which equates to an excess of $2.00 of revenue per share. As
we have stated many times, we believe that the flexibility of our
business model and our ability to be nimble and to adjust to
changing business climates is one of our trademark assets.
Indeed, last year, while funding approximately $730 million of PPP
loans to over 15,000 borrowers, we funded a Company record of
$560.6 million of SBA 7(a) loans, which we believe clearly
illustrates the flexibility and adaptability of our business
model.”
Mr. Sloane continued, “We experienced strong year-over-year
comparisons across key metrics in the first quarter of 2022. Our
first quarter 2022 SBA 7(a) loan fundings of $163.3 million was a
Company record for first quarter SBA 7(a) loan fundings and an
increase of 56.5% over first quarter 2021 SBA 7(a) loan fundings of
$104.4 million. This is our highest ever quarter-over-quarter
comparison on a percentage basis in a first quarter. Additionally,
the dividends that the Company has paid or declared for the first
six months of 2022 total $1.40 per share, which represents a 16.7%
increase over dividends paid in the first and second quarters of
2021. We are particularly proud of this six month year-over-year
dividend growth considering that there will be no PPP income in
2022 versus $50 million of PPP fee income received in 2021.
Finally, and I believe worth noting, is that even though we
experienced a slight decrease in NAV at March 31, 2022 over
December 31, 2021, due to a number of factors, including a widening
of credit spreads and an increase in cost of capital, we did
experience a solid increase in NAV from December 31, 2020 to
December 31, 2021 of 8.2%.”
Commenting further on first quarter 2022 SBA 7(a) loan fundings,
Mr. Sloane said, “We are extremely proud of accomplishing this
strong year-over-year quarterly growth in SBA 7(a) fundings,
particularly in light of the fact that we have historically
experienced lower funding amounts in the first quarter as the SBA
7(a) pipeline is diminished at year end as we start fresh at the
beginning of the year. Moreover, we are proud of the fact
that NSBF has maintained its positions as second largest SBA 7(a)
lender, including banks, by loan approval dollar volume as of March
31, 2022, and the largest non-bank SBA 7(a) lender, while the
SBA7(a) program experienced flat growth year over year. We
attribute this outstanding performance and strong comparisons to
changes that we implemented to our lending business as well as how
we source our lending business. We made technological
improvements to our NewTracker(R) platform which enables us to
transfer data from borrowers to our lending process in a more
seamless and frictionless manner. In addition, managerial
additions and adjustments at the senior management level under
Peter Downs, NSBF's President and the Company's Chief Lending
Officer, during the two pandemic-laden years, has been a hugely
successful. Not only has management enhanced its buy-in to our
business methodology, but staff turnover created a huge opportunity
to add to our team of experienced professionals who are readily
adopting our way of business, Furthermore, our historic utilization
of our NewTracker® platform which is still receiving and tracking
close to 100,000 referrals per quarter, on average across all
business lines, gives us the advantage of pairing borrowers with
loans from our SBA 7(a), SBA 504, secured lines of credit and
non-conforming conventional loan businesses. NewTracker® enables us
to remotely originate all business opportunities beyond lending
through strategic alliance partnerships without the traditional use
of branches, brokers, business development officers, and frequent
salesforce contact, and historically has proven to be a winning
strategy. We will elaborate on all of this in more depth on
tomorrow’s conference call.”
Mr. Sloane further stated, “Some people mistakenly view Newtek
solely as an SBA 7(a) lender. Although it’s been a flagship
product for the Company during our 22-year history as a public
company, we like to remind our investors that it was our technology
solutions and payment processing businesses that carried Newtek
through many years, including the 2008-2009 lending crisis. We
believe that our portfolio companies' performance has improved and
Newtek Technology Solutions, Newtek Merchant Solutions, Newtek
Business Lending and Newtek Conventional Lending made meaningful
contributions to our first quarter 2022 dividend of $0.65 per
share. In our technology solutions and payment processing
businesses, David Simon and Jared Mills are both demonstrating
great leadership and results in guiding their business units
through 2022. We are also finally seeing improvements from our
payroll processing and insurance agency businesses under the
leadership of Shannon Vestal, Samantha Razon, Kyle Sloane, and
Melissa Walker, and expect to see continued improvements in future
quarters.”
Mr. Sloane concluded, “On Monday, May 2, 2022, the Company filed
it definitive proxy statement seeking shareholder approval of a
proposal authorizing the Company's Board of Directors to
discontinue the Company's election to be regulated under the
Investment Company Act of 1940 (subject to certain regulatory
approvals and other conditions described in the proxy statement).
The proxy statement is being distributed to shareholders at the
time of this press release. In addition, the Company has been
developing the NewtekOne Dashboard™ as well as additional ways to
market and unlock benefits from the NewTracker(R) and other
technologies that the Company has created and, most importantly,
utilized for over two decades, which is an exciting development
that we believe we can achieve. We want to highlight the fact that
if shareholders authorize the discontinuance of our regulation
under the 1940 Act and we receive the required regulatory approvals
to close the acquisition of the National Bank of New York, we
expect to be the same company, in the same businesses, just in a
different corporate and financial structure. As set forth more
fully in the proxy statement, we believe that as a bank holding
company we will be able to unlock value that can improve Newtek’s
existing client experience, open the organization to new clients
and importantly can create benefits to the Company by lowering
dependence on selling shares for capital, and utilizing the bank’s
balance sheet for financing and diversifying the loan book of
business to reduce risk. We encourage shareholders to review
our Proxy Statement dated May 2, 2022 and the accompanying
materials carefully. We look forward to discussing the performance
of each of our businesses and updating the market in a more
granular basis on our call tomorrow morning at 8:30 a.m. ET. The
accompanying PowerPoint will be available for review on our website
by 4:45 p.m. ET today.”
First Quarter 2022 Conference Call and
Webcast
A conference call to discuss first quarter 2022 results will be
hosted by Barry Sloane, President, Chairman and Chief Executive
Officer, and Nicholas Leger, Chief Accounting Officer, tomorrow,
Thursday, May 5, 2022 at 8:30 a.m. ET. The live conference
call can be accessed by dialing (346) 248-7799 using the Meeting
ID: 96364580000 and passcode 456097.
In addition, a live audio webcast of the call with the
corresponding presentation will be available in the ‘Events &
Presentations’ section of the Investor Relations portion of
Newtek’s website
at http://investor.newtekbusinessservices.com/events-and-presentations.
A replay of the webcast with the corresponding presentation
will be available on Newtek’s website shortly following the live
presentation and will remain available for 90 days.
1Use of Non-GAAP Financial Measures -
Newtek Business Services Corp. and Subsidiaries
In evaluating its business, Newtek considers and uses ANII as a
measure of its operating performance. ANII includes short-term
capital gains from the sale of the guaranteed portions of SBA 7(a)
loans and conventional loans, and beginning in 2016, capital gain
distributions from controlled portfolio companies, which are
reoccurring events. The Company defines ANII as Net investment
income (loss) plus Net realized gains recognized from the sale of
guaranteed portions of SBA 7(a) loan investments, less realized
losses on non-affiliate investments, plus the net realized gains on
controlled investments, plus or minus the change in fair value of
contingent consideration liabilities, plus loss on extinguishment
of debt, plus or minus an adjustment for gains or losses on
derivative transactions.
We do not designate derivatives as hedges to qualify for hedge
accounting and therefore any net payments under, or fluctuations in
the fair value of, our derivatives are recognized currently in our
GAAP income statement. However, fluctuations in the fair value of
the related assets are not included in our income statement. We
consider the gain or loss on our hedging positions related to
assets that we still own as of the reporting date to be “open
hedging positions.” While recognized for GAAP purposes, we exclude
the results on the hedges from ANII until the related asset is sold
and/or the hedge position is “closed,” whereupon they would then be
included in ANII in that period. These are reflected as “Adjustment
for realized gain/(loss) on derivatives” for purposes of computing
ANII for the period. We believe that excluding these specifically
identified gains and losses associated with the open hedging
positions adjusts for timing differences between when we recognize
changes in the fair values of our assets and changes in the fair
value of the derivatives used to hedge such assets.
The term ANII is not defined under U.S. generally accepted
accounting principles, or U.S. GAAP, and is not a measure of
operating income, operating performance or liquidity presented in
accordance with U.S. GAAP. ANII has limitations as an analytical
tool and, when assessing the Company’s operating performance,
investors should not consider ANII in isolation, or as a substitute
for net investment income, or other consolidated income statement
data prepared in accordance with U.S. GAAP. Among other
things, ANII does not reflect the Company’s actual cash
expenditures. Other companies may calculate similar measures
differently than Newtek, limiting their usefulness as comparative
tools. The Company compensates for these limitations by
relying primarily on its GAAP results supplemented by ANII.
2 Note Regarding Dividend
PaymentsAmount and timing of dividends, if any, remain
subject to the discretion of the Company's Board of Directors. The
Company's Board of Directors expects, while a BDC and regulated
investment company (RIC), to maintain a dividend policy with the
objective of making quarterly distributions in an amount that
approximates 90 - 100% of the Company's annual taxable income. The
determination of the tax attributes of the Company's distributions
is made annually as of the end of the Company's fiscal year based
upon its taxable income for the full year and distributions paid
for the full year.
Newtek Business Services Corp., Your Business Solutions
Company®, is an internally managed BDC, which along with its
controlled portfolio companies, provides a wide range of business
and financial solutions under the Newtek® brand to the small- and
medium-sized business (“SMB”) market. Since 1999, Newtek has
provided state-of-the-art, cost-efficient products and services and
efficient business strategies to SMB relationships across all 50
states to help them grow their sales, control their expenses and
reduce their risk.
Newtek’s and its portfolio companies’ products and services
include: Business Lending, SBA Lending Solutions, Electronic
Payment Processing, Technology Solutions (Cloud Computing, Data
Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts
Receivable Financing & Inventory Financing, Insurance
Solutions, Web Services, and Payroll and Benefits Solutions.
Newtek® and Your Business Solutions Company®,
are registered trademarks of Newtek Business Services Corp.
Note Regarding Forward Looking
Statements
This press release contains certain
forward-looking statements. Words such as “believes,” “intends,”
“expects,” “projects,” “anticipates,” “forecasts,” “goal” and
“future” or similar expressions are intended to identify
forward-looking statements. All forward-looking statements involve
a number of risks and uncertainties that could cause actual results
to differ materially from the plans, intentions and expectations
reflected in or suggested by the forward-looking statements. Such
risks and uncertainties include, among others, include our ability
to close the pending acquisition of the National Bank of New York
City (the “Acquisition”), obtain required regulatory approvals for
the pending Acquisition and obtain shareholder approval to withdraw
our election as a BDC, as well as projections concerning or
considering the pending Acquisition, our ability to originate new
investments, achieve certain margins and levels of profitability,
the availability of additional capital and the ability to maintain
certain debt to asset ratios, intensified competition, operating
problems and their impact on revenues and profit margins,
anticipated future business strategies and financial performance,
anticipated future number of customers, business prospects,
legislative developments and similar matters. Risk factors,
cautionary statements and other conditions, which could cause
Newtek’s actual results to differ from management’s current
expectations, are contained in Newtek’s filings with the Securities
and Exchange Commission and available through http://www.sec.gov/.
Newtek cautions you that forward-looking statements are not
guarantees of future performance and that actual results or
developments may differ materially from those projected or implied
in these statements.
SOURCE: Newtek Business Services Corp.
Investor Relations & Public
RelationsContact: Jayne Cavuoto Telephone: (212) 273-8179
/ jcavuoto@newtekone.com
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF ASSETS AND
LIABILITIES(In Thousands, except for Per Share
Data) |
|
March 31, 2022 |
|
December 31, 2021 |
ASSETS |
(Unaudited) |
|
|
Investments, at fair value |
|
|
|
SBA unguaranteed non-affiliate investments (cost of $449,551 and
$431,970, respectively; includes $333,659 and $344,266,
respectively, related to securitization trusts) |
$ |
440,005 |
|
|
$ |
424,417 |
|
SBA guaranteed non-affiliate investments (cost of $65,425 and
$16,964, respectively) |
|
71,939 |
|
|
|
72,970 |
|
Controlled investments (cost of $150,048 and $138,891,
respectively) |
|
251,133 |
|
|
|
260,398 |
|
Non-control investments (cost of $1,000 and $1,000,
respectively) |
|
1,000 |
|
|
|
1,000 |
|
Total
investments at fair value |
|
764,077 |
|
|
|
758,785 |
|
Cash |
|
4,911 |
|
|
|
2,397 |
|
Restricted cash |
|
158,543 |
|
|
|
184,463 |
|
Broker
receivable |
|
16,725 |
|
|
|
44,537 |
|
Due from
related parties |
|
4,812 |
|
|
|
4,395 |
|
Servicing assets, at fair value |
|
28,855 |
|
|
|
28,008 |
|
Right of
use assets |
|
7,005 |
|
|
|
7,310 |
|
Other
assets |
|
24,384 |
|
|
|
26,666 |
|
Total assets |
$ |
1,009,312 |
|
|
$ |
1,056,561 |
|
|
|
|
|
LIABILITIES AND NET ASSETS |
|
|
|
Liabilities: |
|
|
|
Bank notes payable |
$ |
50,000 |
|
|
$ |
50,000 |
|
Notes due 2024 (par: $38,250 and $38,250 as of March 31, 2022 and
December 31, 2021) |
|
37,734 |
|
|
|
37,679 |
|
Notes due 2025 (par: $30,000 and $15,000 as of March 31, 2022 and
December 31, 2021) |
|
29,124 |
|
|
|
14,545 |
|
Notes due 2026 (par: $115,000 and $115,000 as of March 31, 2022 and
December 31, 2021) |
|
112,307 |
|
|
|
112,128 |
|
Notes payable - Securitization trusts (par: $232,606 and $249,750
as of March 31, 2022 and December 31, 2021) |
|
229,354 |
|
|
|
246,250 |
|
Notes payable - related parties |
|
— |
|
|
|
11,450 |
|
Due to related parties |
|
582 |
|
|
|
1,490 |
|
Lease liabilities |
|
8,696 |
|
|
|
9,056 |
|
Deferred tax liabilities |
|
13,676 |
|
|
|
12,733 |
|
Due to participants |
|
117,459 |
|
|
|
146,225 |
|
Derivative instruments |
|
— |
|
|
|
183 |
|
Accounts payable, accrued expenses and other liabilities |
|
11,900 |
|
|
|
10,935 |
|
Total liabilities |
|
610,832 |
|
|
|
652,674 |
|
|
|
|
|
Commitment and contingencies |
|
|
|
Net
assets: |
|
|
|
Preferred stock (par value $0.02 per share; authorized 1,000
shares, no shares issued and outstanding) |
|
— |
|
|
|
— |
|
Common stock (par value $0.02 per share; authorized 200,000 shares,
24,161 and 24,159 issued and outstanding, respectively) |
|
483 |
|
|
|
483 |
|
Additional paid-in capital |
|
368,299 |
|
|
|
367,663 |
|
Accumulated undistributed earnings |
|
29,698 |
|
|
|
35,741 |
|
Total net assets |
|
398,480 |
|
|
|
403,887 |
|
Total liabilities and net assets |
$ |
1,009,312 |
|
|
$ |
1,056,561 |
|
Net
asset value per common share |
$ |
16.49 |
|
|
$ |
16.72 |
|
|
|
|
|
|
|
|
|
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) |
(In Thousands, except for Per Share Data) |
|
|
|
Three Months Ended March 31, |
|
|
2022 |
|
|
|
2021 |
|
Investment income |
|
|
|
From non-affiliate investments: |
|
|
|
Interest income - PPP loans |
$ |
— |
|
|
$ |
24,208 |
|
Interest income - SBA 7(a) loans |
|
7,079 |
|
|
|
5,949 |
|
Servicing income |
|
3,181 |
|
|
|
2,740 |
|
Other income |
|
1,579 |
|
|
|
1,114 |
|
Total
investment income from non-affiliate investments |
|
11,839 |
|
|
|
34,011 |
|
From non-control investments: |
|
|
|
Interest income |
|
— |
|
|
|
124 |
|
Dividend income |
|
22 |
|
|
|
26 |
|
Total
investment income from non-control investments |
|
22 |
|
|
|
150 |
|
From controlled investments: |
|
|
|
Interest income |
|
664 |
|
|
|
533 |
|
Dividend income |
|
7,824 |
|
|
|
— |
|
Total
investment income from controlled investments |
|
8,488 |
|
|
|
533 |
|
Total
investment income |
|
20,349 |
|
|
|
34,694 |
|
Expenses: |
|
|
|
Salaries and benefits |
|
5,109 |
|
|
|
4,450 |
|
Interest |
|
4,667 |
|
|
|
5,072 |
|
Depreciation and amortization |
|
63 |
|
|
|
85 |
|
Professional fees |
|
1,301 |
|
|
|
1,188 |
|
Origination and loan processing |
|
2,454 |
|
|
|
2,971 |
|
Origination and loan processing - related party |
|
4,029 |
|
|
|
3,143 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
955 |
|
Other general and administrative costs |
|
1,753 |
|
|
|
1,635 |
|
Total
expenses |
|
19,376 |
|
|
|
19,499 |
|
Net
investment income |
|
973 |
|
|
|
15,195 |
|
Net
realized and unrealized gains (losses): |
|
|
|
Net realized gain on non-affiliate investments - SBA 7(a)
loans |
|
15,295 |
|
|
|
7,393 |
|
Net realized gain (loss) on derivative transactions |
|
445 |
|
|
|
— |
|
Net unrealized appreciation (depreciation) on SBA guaranteed
non-affiliate investments |
|
(728 |
) |
|
|
4,393 |
|
Net unrealized appreciation (depreciation) on SBA unguaranteed
non-affiliate investments |
|
(1,990 |
) |
|
|
1,387 |
|
Net unrealized appreciation (depreciation) on controlled
investments |
|
(2,024 |
) |
|
|
2,375 |
|
Change in deferred taxes |
|
(943 |
) |
|
|
(633 |
) |
Net unrealized appreciation on non-control investments |
|
— |
|
|
|
527 |
|
Net unrealized appreciation on derivative transactions |
|
183 |
|
|
|
— |
|
Net unrealized depreciation on servicing assets |
|
(1,559 |
) |
|
|
(513 |
) |
Net
realized and unrealized gains |
$ |
8,679 |
|
|
$ |
14,929 |
|
Net
increase in net assets resulting from operations |
$ |
9,652 |
|
|
$ |
30,124 |
|
Net increase in net assets resulting from operations per share |
$ |
0.40 |
|
|
$ |
1.35 |
|
Net investment income per share |
$ |
0.04 |
|
|
$ |
0.68 |
|
Dividends and distributions declared per common share |
$ |
0.65 |
|
|
$ |
0.50 |
|
Weighted average number of shares outstanding |
|
24,156 |
|
|
|
22,337 |
|
|
|
|
|
|
|
|
|
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIESNON-GAAP FINANCIAL
MEASURES-ADJUSTED NET INVESTMENT INCOME
RECONCILIATION:
|
|
Three months ended |
|
|
|
Three months ended |
|
|
(in thousands, except per
share amounts) |
|
March 31, 2022 |
|
Per share |
|
March 31, 2021 |
|
Per share |
Net investment income |
|
$ |
973 |
|
|
$ |
0.04 |
|
|
$ |
15,195 |
|
|
$ |
0.68 |
|
Net realized gain on
non-affiliate investments - SBA 7(a) loans |
|
|
15,295 |
|
|
|
0.63 |
|
|
|
7,393 |
|
|
|
0.33 |
|
Adjustment for realized gain
on derivatives (1) |
|
|
1,010 |
|
|
|
0.04 |
|
|
|
— |
|
|
|
— |
|
Loss on debt
extinguishment |
|
|
— |
|
|
|
— |
|
|
|
955 |
|
|
|
0.04 |
|
Adjusted Net investment income |
|
$ |
17,278 |
|
|
$ |
0.72 |
|
|
$ |
23,543 |
|
|
$ |
1.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not foot due to rounding
(1) The following is a reconciliation of GAAP net realized
gain/(loss) on derivative transactions to our adjustment for
realized gain/(loss) on derivatives on closed transactions
presented in the computation of ANII in the preceding tables:
|
|
Three months ended |
|
|
|
Three months ended |
|
|
(in thousands, except per
share amounts) |
|
March 31, 2022 |
|
Per share |
|
March 31, 2021 |
|
Per share |
Net realized gain on derivatives |
|
$ |
445 |
|
|
$ |
0.02 |
|
|
$ |
— |
|
|
$ |
— |
|
Hedging realized adjustment on
hedging positions closed during current period |
|
|
565 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Adjustment for realized gain on derivatives |
|
$ |
1,010 |
|
|
$ |
0.04 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not foot due to rounding
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIESDEBT-TO-EQUITY RATIO - ACTUAL AT MARCH 31, 2022
(in
thousands): |
|
|
|
Actual Debt-to-Equity Ratio at March 31, 2022 |
|
|
|
Total senior debt |
|
$ |
465,856 |
|
|
Total
equity |
|
$ |
398,480 |
|
|
Debt-to-equity ratio - actual |
|
1.17x |
|
|
|
|
|
|
|
|
|
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIESDEBT-TO-EQUITY RATIO - PROFORMA AT MARCH 31, 2022
(in
thousands): |
|
|
|
Broker receivable, including premium income receivable |
|
$ |
16,725 |
|
|
Less:
realized gain on sale included in broker receivable |
|
|
(1,651 |
) |
|
Broker
receivable |
|
|
15,074 |
|
|
|
|
|
|
90%
advance rate on SBA guaranteed non-affiliate portions of loans
sold, not settled |
|
$ |
13,567 |
|
|
|
|
|
|
|
|
|
|
Proforma debt adjustments at March 31, 2022: |
|
|
|
Total
senior debt |
|
$ |
465,856 |
|
|
Proforma
adjustment for broker receivable |
|
|
(13,567 |
) |
|
Total
proforma debt |
|
$ |
452,289 |
|
|
|
|
|
|
|
|
|
|
Proforma Debt-to-Equity ratio at March 31,
2022: |
|
|
|
Total
proforma debt |
|
$ |
452,289 |
|
|
Total
equity |
|
$ |
398,480 |
|
|
Debt-to-equity ratio - proforma |
|
1.14x |
|
|
|
|
|
|
|
|
|
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