NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that provides various business and financial solutions under the Newtek and NewtekOne brands to the small- and medium-sized business market.
In addition to the company’s bank subsidiary, Newtek Bank and its consolidated subsidiary, Small Business Lending, LLC (SBL), the following are its consolidated non-bank direct and indirect subsidiaries: Newtek Small Business Finance, LLC (NSBF); Newtek Merchant Solu...
NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that provides various business and financial solutions under the Newtek and NewtekOne brands to the small- and medium-sized business market.
In addition to the company’s bank subsidiary, Newtek Bank and its consolidated subsidiary, Small Business Lending, LLC (SBL), the following are its consolidated non-bank direct and indirect subsidiaries: Newtek Small Business Finance, LLC (NSBF); Newtek Merchant Solutions, LLC (NMS) and its subsidiary Mobil Money, LLC; CDS Business Services, Inc., doing business as, Newtek Business Credit Solutions (NBC); PMTWorks Payroll, LLC, doing business as, Newtek Payroll and Benefits Solutions (PMT); Newtek Insurance Agency, LLC (NIA); Titanium Asset Management LLC (TAM); Newtek ALP Holdings; Newtek Commercial Lending, Inc. (NCL); Newtek Technology Solutions, Inc. (NTS) and POS on Cloud, LLC, doing business as, Newtek Payment Systems (POS). As a result of commitments made to the Federal Reserve, the company divested of NTS on January 2, 2025, by selling NTS to Paltalk, Inc. (‘Paltalk’), known as Intelligent Protection Management Corp. (‘IPM’).
The company’s target market is owners and prospective owners of SMBs, and its services are offered online and, in some cases, delivered and fulfilled by its staff via video and voice calls. The company offers lending products, FDIC insured deposit products and services, payments processing, payroll services and insurance brokerage services. The company sources its business through the company’s alliance partner network and its marketing database, which is facilitated through the company’s NewTracker platform.
The company’s loan products include SBA 7(a), ALP, SBA 504, and traditional C&I and CRE bank loans. The company’s deposit products primarily include consumer high yield savings accounts, high yield certificates of deposit, zero-fee business checking, and business money market accounts.
NewTracker
NewTracker is the company’s primary tool for acquiring business referrals without traditional bankers, bank branches, brokers, or business development officers.
Through the company’s NewTracker platform, it has historically received hundreds of unique referrals a day from alliance partners which include large commercial banks, community banks, credit unions, trade associations, accounting firms, law firms, and small business client aggregators. The company processes these referrals using non-traditional bankers that it refers to as Business Service Specialists (BSS). By utilizing NewTracker, the company provides complete transparency to its alliance partners who can track and view the processing of their referral through the close of the transaction, whether it is a loan, the opening of a merchant processing account or payroll account, or an insurance policy. In addition, the company leverages software with to extract, process and exchange information from borrowers and businesses in need of a business or financial solution.
The company’s platform also allows it to track the efficiency of the company’s staff by analyzing, among other things, customer connect rates, close rates, and the number of transactions that each BSS can process with a client daily, weekly, monthly and quarterly.
The company regularly contacts and prospectives clients in its database through email, videos and outbound calling efforts, and the company is in the early stages of a digital and social media campaign. By connecting with clients in its database regularly and consistently, on camera and with educational videos, webinars, and podcasts, the company has developed an efficient way to grow its sales and marketing plan and improve Newtek brand awareness and recognition.
NewtekOne and its subsidiaries provide independent business owners with the following Newtek branded business and financial solutions: Newtek Banking, Newtek Lending, Newtek Payments, Newtek Insurance and Newtek Payroll. In addition, since the divestiture of Newtek Technology Solutions, Inc. (NTS) to Intelligent Protection Management Corp. (IPM), the company offers its clients the Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting and Web Services) provided by Intelligent Protection Management Corp. (IPM.com) (formerly known as NTS).
Newtek Banking
The company has centralized its Newtek Lending Platform within Newtek Bank, the company's commercial bank, except for its ALP lending business. Newtek Bank originates, services and sells SBA 7(a) loans in a similar manner to NSBF’s historic business model and originates and services SBA 504 loans, C&I loans (including ABL), and owner occupied CRE and investor CRE loans.
In addition, Newtek Bank offers depository services and solutions. Newtek Bank’s commercial banking clients can take advantage of the company’s full offerings of business and financial solutions via the Newtek Advantage business portal.
SBA 7(a) Lending
Newtek Bank’s Lending platform, which generates a material portion of the company’s revenues, includes loans originated under the federal Section 7(a) loan program (‘SBA 7(a) Program’), i.e., SBA 7(a) loans. Under the SBA 7(a) program, a bank, such as Newtek Bank, or a nonbank lender licensed by the SBA, such as NSBF.
As of February 10, 2025, Newtek Bank was the largest SBA 7(a) lender in the U.S. by dollar loan approval volume, approving over $1 billion of SBA 7(a) during the first 4.5 months of the SBA’s fiscal year 2025 according to SBA.gov statistics.
As of December 31, 2024 (the SBA’s first quarter of fiscal year 2025), Newtek Bank is the nation’s largest SBA 7(a) lender.
NewtekOne has a dedicated Senior Lending Team (as defined below) that is supporting Newtek Bank’s origination and servicing of SBA 7(a) loans to qualifying independent business owners. The company’s SBA 7(a) business model is to originate SBA 7(a) loans, sell the guaranteed portions of the SBA 7(a) loans, typically within thirty to forty-five days of origination, and retain the unguaranteed portions.
The company has a dedicated capital markets team that sells the guaranteed portions of its SBA 7(a) loans shortly after origination, and the company retains the unguaranteed portions. Historically, the company has sold SBA guaranteed portions of SBA 7(a) loans at premiums.
The company has focused on making smaller SBA 7(a) loans, approximately $1.0 million or less, to maintain a diversified pool of loans that are dispersed both geographically and among industries, with a goal of limiting its exposure to regional and industry-specific economic downturns. Specifically, as of December 31, 2024, the company’s SBA 7(a) loan portfolio consisted of 6,968 loans originated across 50 states in 81 different industries as defined by the North American Industry Classification System (‘NAICS’).
In addition to SBA 7(a) lending, the company’s Newtek Lending Platform includes the following loan products originated by Newtek Bank: SBA 504 loans, investor commercial real estate (CRE) and C&I loans (including ABL and owner occupied CRE); and ALP loans originated by its non-bank lender Newtek ALP Holdings and the company’s joint ventures; and SBA 504 loans originated by Newtek ALP Holdings.
SBA 504 Lending
Newtek Bank originates SBA 504 loans which provide long-term fixed rate financing for major fixed assets, such as real estate (including construction) or equipment.
C&I Lending, CRE Lending and ABL Lending
Newtek Bank also originates C&I loans to its commercial customers, which includes ABL loans and owner occupied CRE and investor CRE loans.
Third Party Loan Servicing and Loan Origination Services
SBL, Newtek Bank’s subsidiary, provides the company’s affiliates, subsidiaries and third parties, including banks, credit unions and government agencies, including the FDIC, with loan servicing for SBA and non-SBA loans. In addition, SBL provides the company’s affiliates, subsidiaries and third parties with outsourced solutions for the entire loan origination process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing. For example, SBL originates and services ALP and 504 loans for the company’s Newtek ALP Holdings subsidiary and ALP loans for its joint ventures.
Deposits and Depository Services
The company is focused on growing and retaining a stable deposit base and deepening relationships with Newtek Bank’s current and prospective deposit customers by leveraging Newtek Bank’s customer-direct, easy-to-use, digital account opening platform. Newtek Bank is a digital direct bank with no branch network that obtains retail deposits directly from customers. Newtek Bank has maintained strong customer acquisition and retention rates and expects to continue to drive growth in retail and business banking deposits. Additionally, the company implemented a suite of software solutions that facilitates gathering and servicing deposits from its existing and prospective independent business owner clients, further diversifying the company’s client base. The company supplements Newtek Bank’s customer deposit base with a series of wholesale funding options, which consist of product offerings to community banks and credit unions, as well as fundings in the brokered CD market.
Newtek Payments
NewtekOne’s business and financial solutions ecosystem also includes its Newtek Payments businesses, which includes the company’s subsidiaries Newtek Merchant Solutions, LLC (NMS), Mobil Money, LLC (Mobil Money, an NMS subsidiary) and POS on Cloud, LLC.
NMS
NMS markets credit and debit card processing services, check approval services, ACH services, processing equipment, and software. NMS utilizes a multi-pronged sales approach of both direct and indirect sales. NMS’ primary sales efforts focus on direct sales through the company’s Newtek and Your Business Solutions Company brands. The company’s indirect sales channels consist of alliance partners, principally financial institutions (banks, credit unions, insurance companies and other related businesses), and independent sales agents across the United States.
NMS maintains its principal customer service and sales support offices in the company’s Lake Success, New York office. NMS’s personnel assist merchants with initial installation of equipment and on-going service, as well as any other special processing needs that they may have.
NMS’ development and growth are focused on selling NMS’ services to internally generated referrals, merchant referrals identified by NewtekOne alliance partners and by independent sales representatives. NMS believes that its business model provides it with a competitive advantage by enabling it to acquire new merchant customers at a lower cost level for third-party commissions than the industry average. NMS’ business model allows it to own the customer as well as the stream of residual payments, as opposed to models which rely more heavily on independent sales agents.
Mobil Money
Mobil Money, a subsidiary of NMS, generates revenues from providing payment processing for a merchant portfolio of taxi cabs and related licensed payment processing software.
POS
POS is a majority owned subsidiary which sells its cloud-based Point of Sale system for a variety of restaurant, retail, assisted living, parks and golf course businesses. POS’ Point of Sale system provides not only payments and purchase technology solutions, but also inventory, customer management, accounting integrations, reporting, employee time clock, table and menu layouts, and e-commerce solutions as the central operating system for an independent business owner.
Newtek Technology
As disclosed in subsequent events herein, on January 2, 2025 the company completed its previously disclosed divestiture of Newtek Technology Solutions, Inc. (NTS), its wholly-owned subsidiary that provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, e-commerce, 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 well as SMBs, to IPM. NewtekOne intends to continue to offer its clients the Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting and Web Services) provided by IPM on a referral fee basis.
Newtek Payroll, Insurance, and Other
PMTWorks Payroll, LLC, is a wholly owned subsidiary which offers an array of industry standard and competitively priced payroll management, and related payment and tax reporting services to independent business owners.
Newtek Insurance Agency (NIA), a wholly owned subsidiary, is a retail and wholesale brokerage insurance agency licensed in all 50 states, specializing in the sale of commercial and health/benefits lines insurance products to independent business owners, as well as the sale of various personal lines of insurance.
In addition, the company’s subsidiary Titanium Asset Management, LLC (TAM) provides inbound and outbound calling services to all its affiliates. TAM’s client success and service specialists answer all inbound communications to the company’s 1-800 lines and connect with its clients who visit www.newtekone.com through video and digital chat. TAM has two primary initiatives: (1) telemarketing into the company’s existing database of NewtekOne referrals for the purpose of introducing its business and financial solutions, and (2) monitoring and improving client experience and ensuring any client issues or complaints are tracked and resolved. The company is focused on growing this unit over time and improving its productivity in selling its business and financial solutions directly to the company’s client database and creating warm referrals for its BSS in each vertical. The company requires that TAM’s client success and service specialists, as well as its BSS teams in each of the company’s businesses, appear on camera on all client interactions, either utilizing its licensed Glia technology or the company’s phone system. The company’s strategy of not using traditional bankers, brokers, business development officers or physical branches, and in their stead, using its client success and service specialists and BSS who are based in the United States and using a NewtekOne backdrop on camera to give all clients the experience with a live human being they can see and talk to 24/7/365.
Newtek and NewtekOne Branding
The company has developed its branded line of business and financial solutions to offer a full-service suite of business and financial solutions for independent business owners in the United States. The company reaches potential customers through its integrated multi-channel approach featuring direct, indirect and direct outbound solicitation efforts. The company continues to utilize and grow its primary marketing channel of strategic alliance partners as well as a direct marketing strategy to independent business owner customers through the company’s ‘go to market’ brand, Your Business Solutions Company and One Solution for All Your Business Needs. Through the company’s web presence, www.newtekone.com and newtekbank.com, it is establishing itself as a preferred ‘go-to provider for independent business owner financial and business solutions offered by NewtekOne and its subsidiaries, including Newtek Bank.
The company’s patented NewTracker system provides for transparency between NewtekOne and referring parties and has been material in its ability to obtain referrals from a wide variety of sources. The NewTracker system allows the company and its alliance partners to review in real time the status of any referral as well as to provide real time compliance oversight by the respective alliance partner, which it believes creates confidence among the referred business client, the referring alliance partner and the company. The company owns the NewTracker patent, as well as all trademarks and other patented intellectual property used by it and its subsidiaries. Additional referrals are obtained from individual professionals in geographic markets that has signed up to provide referrals and earn commissions through the company’s BizExec and TechExec Programs.
Securities
As of December 31, 2024, the company's securities were the U.S. treasury notes and government agency debentures.
Deposits
As of December 31, 2024, the company’s deposits included non- interest bearing, such as demand; interest -bearing, such as checking money market, savings, and time deposits.
Competition
The company’s electronic payment processing subsidiaries compete with entities, including Fiserv, Global Payments, Worldpay, Elavon, and Paymentech, L.P. Other companies, including Intuit, are bundling electronic payment processing and payroll services similar to its in offerings that compete in the same SMB market.
Regulation and Supervision
As a bank holding company electing financial holding company status, the company is subject to certain banking laws and regulations, including under the Bank Holding Company Act of 1956 (‘BHCA’), and to ongoing and comprehensive supervision, regulation, examination and enforcement by the Federal Reserve.
As a national bank, Newtek Bank is subject to ongoing and comprehensive supervision, regulation, examination and enforcement by the Office of the Comptroller of the Currency (OCC). The OCC charges fees to national banks, including Newtek Bank, in connection with its supervisory activities.
Newtek Bank’s deposits are insured by the Depositors Insurance Fund (DIF) up to applicable legal limits. As an Federal Deposit Insurance Corporation (FDIC)-insured depository institution, Newtek Bank is subject under certain circumstances to supervision, regulation and examination by the FDIC. The FDIC charges deposit insurance assessments to FDIC-insured institutions, including Newtek Bank, to fund and support the DIF.
The company is subject to the disclosure and regulatory requirements of the Securities Act and the Exchange Act, both as administered by the U.S. Securities and Exchange Commission (SEC).
Newtek Bank is subject to periodic examination under the CRA by the OCC, which will assign ratings based on the methodologies set forth in its regulations and guidance. Newtek Bank’s latest rating by the OCC under the Community Reinvestment Act (CRA) is ‘Satisfactory’.
The company is subject to a wide range of laws related to anti-money laundering, economic sanctions and prevention of financial crime, including the Bank Secrecy Act, the USA PATRIOT Act and economic sanctions programs. The company is required to, among other things, maintain an effective anti-money laundering and counter-terrorist compliance program, identify and file suspicious activity and currency transaction reports, and block transactions with sanctioned persons or jurisdictions. Compliance with these laws requires significant investment of management attention and resources. These laws are enforced by a number of regulatory authorities, including the Federal Reserve, OCC, Office of Foreign Assets Control, the Financial Crimes Enforcement Network, the U.S. Department of Justice, Drug Enforcement Administration, and Internal Revenue Service.
Newtek Bank is licensed by the SBA to make loans under the SBA 7(a) Program and the company’s wholly owned subsidiary, NSBF, is licensed by the SBA as an SBLC that originated loans through the SBA 7(a) Program.
In addition to loans originated under the SBA 7(a) program. The company’s Newtek Lending Platform includes the following loan products originated by Newtek Bank: SBA 504 loans, C&I loans (including ABL and owner occupied CRE and investor CRE).
The Sarbanes-Oxley Act of 2002 (the ‘Sarbanes-Oxley Act’) imposes a wide variety of regulatory requirements on publicly held companies and their insiders. Many of these requirements affect the company.
History
The company was founded in 1998. The company was incorporated in 2013. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in 2023.
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