0001587987-24-000054 | 10-K | XBRL Viewer

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SERVICING ASSETS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	$ 39,725	$ 30,268		$ 38,291	$ 36,238	$ 33,679
Servicing income	18,300	13,700
SBA 7(a)
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	1,800,000
ALP Loans
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	63,500
Non-affiliate
Servicing Assets at Fair Value [Line Items]
Servicing income	$ 18,289	$ 13,698	$ 11,307

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITES (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Loan related remittances due to SBA and participants	$ 3,577				$ 70
Accrued payroll and related expenses	1,349				3,051
Accrued interest	4,114				2,846
Funds in process to PMT's payroll customers	5,060				0
Loan processing, servicing and other loan related expenses	3,793				2,059
SBA repair & denial reserve	3,063				0
Good faith deposits	893				0
Other	15,451				13,398
Total accounts payable, accrued expenses and other liabilities	$ 37,300	$ 36,671	$ 37,674	$ 44,912	$ 21,424

REGULATORY CAPITAL (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Tier 1 Capital (to Average Assets)
Actual	$ 180,829
Actual, Ratio	0.136
For Capital Adequacy Purposes	$ 53,363
For Capital Adequacy Purposes, Ratio	0.040
Common Equity Tier 1 (to Risk-Weighted Assets)
Actual	$ 180,829
Actual, Ratio	0.162
For Capital Adequacy Purposes	$ 50,153
For Capital Adequacy Purposes, Ratio	0.045
Tier 1 Capital (to Risk-Weighted Assets)
Actual	$ 180,829
Actual, Ratio	0.162
For Capital Adequacy Purposes	$ 66,870
For Capital Adequacy Purposes, Ratio	0.060
Total Capital (to Risk-Weighted Assets)
Actual	$ 213,141
Actual, Ratio	0.191
For Capital Adequacy Purposes	$ 89,160
For Capital Adequacy Purposes, Ratio	0.080
Newtek Bank
Tier 1 Capital (to Average Assets)
Actual	$ 99,253
Actual, Ratio	0.166
For Capital Adequacy Purposes	$ 23,893
For Capital Adequacy Purposes, Ratio	0.040
For Consideration as Well-Capitalized	$ 30,026
For Consideration as Well-Capitalized, Ratio	0.050
Common Equity Tier 1 (to Risk-Weighted Assets)
Actual	$ 99,253
Actual, Ratio	0.215
For Capital Adequacy Purposes	$ 20,787
For Capital Adequacy Purposes, Ratio	0.045
For Consideration as Well-Capitalized	$ 46,193
For Consideration as Well-Capitalized, Ratio	0.065
Tier 1 Capital (to Risk-Weighted Assets)
Actual	$ 99,253
Actual, Ratio	0.215
For Capital Adequacy Purposes	$ 27,716
For Capital Adequacy Purposes, Ratio	0.060
For Consideration as Well-Capitalized	$ 36,955
For Consideration as Well-Capitalized, Ratio	0.080
Total Capital (to Risk-Weighted Assets)
Actual	$ 105,105
Actual, Ratio	0.228
For Capital Adequacy Purposes	$ 36,954
For Capital Adequacy Purposes, Ratio	0.080
For Consideration as Well-Capitalized	$ 29,866
For Consideration as Well-Capitalized, Ratio	0.100

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

NOTE 8—GOODWILL AND INTANGIBLE ASSETS:

Goodwill

The following table summarizes changes in the carrying amount of goodwill:


	December 31, 2023		December 31, 2022
Banking	$	271	$	—
Payments	13,814		$	—
Technology	11,800		$	—
Total goodwill	$	25,885	$	—

The Company did not have any goodwill as of December 31, 2022 as a BDC. On January 6, 2023, the Company consolidated its previously unconsolidated portfolio companies and completed the Acquisition, which resulted in goodwill of $25.6 million and $0.3 million, respectively. The goodwill in the payments and technology segments was generated from acquisitions prior to 2022 by the legal entities within those segments.

Intangible Assets

The following table summarizes intangible assets:


	At December 31, 2023						At December 31, 2022
	Gross carrying Amount		Accumulated Amortization		Net Carrying amount		Gross carrying Amount		Accumulated Amortization		Net Carrying amount
Core Deposits	$	1,040	$	(197)	$	843	$	—	$	—	$	—
Payments Customer Lists	8,575		(8,562)		13		—		—		—
Technology Customer Lists	6,525		(3,146)		3,379		—		—		—
Total intangible assets	$	16,140	$	(11,905)	$	4,235	$	—	$	—	$	—

The Company did not have any intangible assets as of December 31, 2022 as a BDC. On January 6, 2023, the Company consolidated its previously unconsolidated portfolio companies and completed the Acquisition, which resulted in intangible assets. As of December 31, 2023, the Company had $3.4 million of intangible assets relating to previously unconsolidated portfolio companies and $0.8 million on core deposits at Newtek Bank.

Amortization expense for the year ended December 31, 2023 was $1.5 million and is included in Depreciation and amortization on the Consolidated Statements of Income. There was no amortization expense for the years ended December 31, 2022 and

2021 since there were no intangible assets prior to the Acquisition.

The remaining estimated aggregate future amortization expense for intangible assets as of December 31, 2023 is as follows:


	Amortization Expense
2024	$	655
2025	622
2026	601
2027	580
2028	560
Thereafter	1,217
Total	$	4,235

INVESTMENTS - Investment Portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Non-Control Investments
Debt Securities, Available-for-Sale [Line Items]
Cost	$ 796	$ 1,360
Fair Value	728	1,360
Controlled Investments
Debt Securities, Available-for-Sale [Line Items]
Cost	0	131,495
Fair Value	0	259,217
Joint Ventures
Debt Securities, Available-for-Sale [Line Items]
Cost	37,864	23,314
Fair Value	40,859	23,022
Debt securities available-for-sale, at fair value
Debt Securities, Available-for-Sale [Line Items]
Cost	32,372	0
Fair Value	32,171	0
Federal Home Loan Bank and Federal Reserve Bank stock
Debt Securities, Available-for-Sale [Line Items]
Cost	3,635	0
Fair Value	3,635	0
Equity \| Controlled Investments
Debt Securities, Available-for-Sale [Line Items]
Cost	0	99,195
Fair Value	0	241,113
Debt \| Controlled Investments
Debt Securities, Available-for-Sale [Line Items]
Cost	0	32,300
Fair Value	0	18,104
Total investments
Debt Securities, Available-for-Sale [Line Items]
Cost	74,667	156,169
Fair Value	$ 77,393	$ 283,599

SEGMENTS

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENTS

NOTE 22—SEGMENTS:

The Company's management reporting process measures the performance of its operating segments based on internal operating structure, which is subject to change from time to time. Accordingly, the Company operates four reportable segments for management reporting purposes as discussed below:

Banking - Newtek Bank originates, services and sells SBA 7(a) loans in a similar manner to NSBF’s historic business model (see Non-Bank Lending below) and originates and services SBA 504 loans, C&I loans, CRE loans and ABL loans. In addition, Newtek Bank offers depository services.

NSBF - relates to NSBF’s legacy portfolio held outside Newtek Bank, no new originating activity takes place. NSBF’s legacy portfolio consists of SBA 7(a) Loans, a material portion of which reside in securitization trusts.

Payments - Includes NMS, POS and Mobil Money. NMS markets credit and debit card processing services, check approval services, processing equipment, and software and:

–Assist merchants with initial installation of equipment and on-going service, as well as any other special processing needs that they may have.

–Handles payment processing for Mobil Money’s merchant portfolio of taxi cabs and related licensed payment processing software.

–POS is a provider of a cloud based Point of Sale (POS) system for a variety of restaurant, retail, assisted living, parks and golf course businesses, which provides not only payments and purchase technology solutions, but also inventory, customer management, reporting, employee time clock, table and menu layouts, and ecommerce solutions as the central operating system for an SMB.

Technology - NTS provides website hosting, web design and development, dedicated server hosting, cloud hosting, internet marketing, ecommerce, 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 a result of commitments made to the Federal Reserve, the Company will divest or otherwise terminate the activities conducted by NTS within two years of becoming a financial holding company, subject to any extension of the two-year period.

Corporate and Other - The information provided under the caption “Corporate and Other” represents operations not considered to be reportable segments and/or general operating expenses of the Company, and includes the parent company, other non-bank subsidiaries including Newtek Insurance and Newtek Payroll, and elimination adjustments to reconcile the results of the operating segments to the condensed consolidated financial statements prepared in conformity with GAAP.

The following table provide financial information for the Company's segments:


As of and for the year ended December 31, 2023
	Banking		Technology		NSBF		Payments		Corporate and Other		Eliminations		Consolidated
Interest income	$	34,349	$	—	$	50,823	$	2,087	$	11,625	$	(4,511)	$	94,373
Interest expense	16,625		246		26,796		3,577		25,006		(4,511)		67,739
Net interest income/(loss)	17,724		(246)		24,027		(1,490)		(13,381)		—		26,634
Provision for loan credit losses	11,704		—		—		—		—		—		11,704
Net interest income after provision for loan credit losses	6,020		(246)		24,027		(1,490)		(13,381)		—		14,930
Noninterest income	92,129		31,692		25,142		46,422		92,059		(110,672)		176,772
Noninterest expense	58,375		29,850		32,108		31,600		29,265		(34,869)		146,329
Income before taxes	39,774		1,596		17,061		13,332		49,413		(75,803)		45,373
Income tax expense (benefit)	11,647		229		—		1,178		(15,010)		—		(1,956)
Net income	28,127		1,367		17,061		12,154		64,423		(75,803)		47,329
Assets	$	683,202	$	23,404	$	633,207	$	51,819	$	726,002	$	(688,121)	$	1,429,513

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Audit Information [Abstract]
Auditor Firm ID	49
Auditor Name	RSM US LLP
Auditor Location	Hartford, Connecticut

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 47,329	$ 32,311	$ 84,142
Other comprehensive loss before tax:
Net unrealized loss on debt securities available-for-sale during the period	(201)	0	0
Other comprehensive loss before tax	(201)	0	0
Income tax benefit	53	0	0
Other comprehensive loss, net of tax	(148)	0	0
Comprehensive income	$ 47,181	$ 32,311	$ 84,142

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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-Topic 280
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Reference 34: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2023

Banking and Thrift, Interest [Abstract]

Deposit liabilities

The following table summarizes deposits by type:


	December 31, 2023		December 31, 2022
Non-interest-bearing:
Demand	$	10,053	$	—
Interest-bearing:
Checking	11,456		—
Money market	15,803		—
Savings	259,152		—
Time deposits	167,041		—
Total interest-bearing	453,452		—
Total deposits	$	463,505	$	—

Time deposits, money market, and interest-bearing checking obtained through brokers	$	53,548	$	—
Aggregate amount of deposit accounts that exceeded the FDIC limit	$	66,511	$	—
Demand deposit overdrafts reclassified as loan balances	$	53	$	—

Time deposit maturities

The following table summarizes the scheduled maturities of time deposits:


2024	$	54,805
2025	63,402
2026	28,379
2027	19,710
2028	745
Thereafter	—
Total time deposits	$	167,041

- Definition

Tabular disclosure of type of deposit liability.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Publisher SEC

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (1)
-Publisher SEC

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (2)
-Publisher SEC

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (3)
-Publisher SEC

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (4)
-Publisher SEC

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (5)
-Publisher SEC

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (c)
-Publisher SEC

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (d)
-Publisher SEC

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (e)
-Publisher SEC

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (1)
-Publisher SEC

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)
-Publisher SEC

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)
-Publisher SEC

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(ii)
-Publisher SEC

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iii)
-Publisher SEC

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iv)
-Publisher SEC

+ Details

FAIR VALUE MEASUREMENTS - Fair Value Levels (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Assets:
Debt securities available-for-sale	$ 32,171
Loans held for sale, at fair value	118,867				$ 19,171
Loans held for investment, at fair value	469,801				505,268
Other real estate owned	1,110				3,529
Servicing asset	29,336				30,268
Total assets measured at fair value	692,872				841,835
Liabilities:
Liabilities	$ 630
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accounts payable, accrued expenses and other liabilities
Total liabilities measured at fair value	$ 771
Carrying Amount
Cash and due from banks	15,398	$ 223,692	$ 256,333	$ 197,143	53,692
Restricted cash	30,919				71,914
Interest bearing deposits in banks	137,689				0
Debt securities available-for-sale, at fair value	32,171				0
Loans held for sale, at fair value	118,867				19,171
Loans held for sale, at LCM	56,607				0
Loans held for investment, at fair value	469,801				505,268
Loans held for investment, at amortized cost, net of deferred fees and costs	336,305				0
Federal Home Loan Bank and Federal Reserve Bank stock	3,635				0
Time deposits	167,041				0
Borrowings	644,122				539,326
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	32,171
Loans held for sale, at fair value	118,867				19,171
Loans held for sale, at LCM	56,733
Total loans held for investment, at amortized cost, net of deferred fees and costs	337,133
Federal Home Loan Bank and Federal Reserve Bank stock	3,635
Time deposits	168,542
Borrowings	641,794				540,388
U.S. Treasury notes
Assets:
Debt securities available-for-sale	29,305
Government agency debentures
Assets:
Debt securities available-for-sale	2,866
Loans Held For Sale
Assets:
Loans held for sale, at fair value	118,867				19,171
Carrying Amount
Loans held for sale, at fair value	118,867				19,171
Loans Held for Investment
Assets:
Loans held for investment, at fair value	469,801				505,268
Carrying Amount
Loans held for investment, at fair value	469,801				505,268
Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	15,398				53,692
Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	30,919				71,914
Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	137,689
Equity warrants
Liabilities:
Equity warrants	141
Controlled Investments
Assets:
Investments	0				259,217
Carrying Amount
Investments in loans, at fair value	0				259,217
Joint Ventures
Assets:
Investments	40,859				23,022
Carrying Amount
Investments in loans, at fair value	40,859				23,022
Non-Control Investments
Assets:
Investments	728				1,360
Carrying Amount
Investments in loans, at fair value	728				1,360
Level 1
Assets:
Loans held for investment, at fair value	0				0
Other real estate owned	0				0
Servicing asset	0				0
Total assets measured at fair value	29,305				0
Liabilities:
Liabilities	0
Total liabilities measured at fair value	0
Carrying Amount
Loans held for investment, at fair value	0				0
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	29,305
Loans held for sale, at fair value	0				0
Loans held for sale, at LCM	0
Total loans held for investment, at amortized cost, net of deferred fees and costs	0
Federal Home Loan Bank and Federal Reserve Bank stock	0
Time deposits	0
Borrowings	0				0
Level 1 \| U.S. Treasury notes
Assets:
Debt securities available-for-sale	29,305
Level 1 \| Government agency debentures
Assets:
Debt securities available-for-sale	0
Level 1 \| Loans Held For Sale
Assets:
Loans held for sale, at fair value	0				0
Carrying Amount
Loans held for sale, at fair value	0				0
Level 1 \| Loans Held for Investment
Assets:
Loans held for investment, at fair value	0				0
Carrying Amount
Loans held for investment, at fair value	0				0
Level 1 \| Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	15,398				53,692
Level 1 \| Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	30,919				71,914
Level 1 \| Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	137,689
Level 1 \| Equity warrants
Liabilities:
Equity warrants	0
Level 1 \| Controlled Investments
Assets:
Investments					0
Carrying Amount
Investments in loans, at fair value					0
Level 1 \| Joint Ventures
Assets:
Investments	0				0
Carrying Amount
Investments in loans, at fair value	0				0
Level 1 \| Non-Control Investments
Assets:
Investments	0				0
Carrying Amount
Investments in loans, at fair value	0				0
Level 2
Assets:
Loans held for investment, at fair value	0				0
Other real estate owned	0				0
Servicing asset	0				0
Total assets measured at fair value	2,866				0
Liabilities:
Liabilities	630
Total liabilities measured at fair value	630
Carrying Amount
Loans held for investment, at fair value	0				0
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	2,866
Loans held for sale, at fair value	0				0
Loans held for sale, at LCM	0
Total loans held for investment, at amortized cost, net of deferred fees and costs	0
Federal Home Loan Bank and Federal Reserve Bank stock	3,635
Time deposits	168,542
Borrowings	187,555				152,162
Level 2 \| U.S. Treasury notes
Assets:
Debt securities available-for-sale	0
Level 2 \| Government agency debentures
Assets:
Debt securities available-for-sale	2,866
Level 2 \| Loans Held For Sale
Assets:
Loans held for sale, at fair value	0				0
Carrying Amount
Loans held for sale, at fair value	0				0
Level 2 \| Loans Held for Investment
Assets:
Loans held for investment, at fair value	0				0
Carrying Amount
Loans held for investment, at fair value	0				0
Level 2 \| Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	0				0
Level 2 \| Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	0				0
Level 2 \| Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	0
Level 2 \| Equity warrants
Liabilities:
Equity warrants	0
Level 2 \| Controlled Investments
Assets:
Investments					0
Carrying Amount
Investments in loans, at fair value					0
Level 2 \| Joint Ventures
Assets:
Investments	0				0
Carrying Amount
Investments in loans, at fair value	0				0
Level 2 \| Non-Control Investments
Assets:
Investments	0				0
Carrying Amount
Investments in loans, at fair value	0				0
Level 3
Assets:
Loans held for investment, at fair value	469,801				505,268
Other real estate owned	1,110				3,529
Servicing asset	29,336				30,268
Total assets measured at fair value	660,701				818,813
Liabilities:
Equity warrants	141
Liabilities	0
Total liabilities measured at fair value	141
Carrying Amount
Loans held for investment, at fair value	469,801				505,268
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	0
Loans held for sale, at fair value	118,867				19,171
Loans held for sale, at LCM	56,733
Total loans held for investment, at amortized cost, net of deferred fees and costs	337,133
Federal Home Loan Bank and Federal Reserve Bank stock	0
Time deposits	0
Borrowings	454,239				388,226
Level 3 \| U.S. Treasury notes
Assets:
Debt securities available-for-sale	0
Level 3 \| Government agency debentures
Assets:
Debt securities available-for-sale	0
Level 3 \| Loans Held For Sale
Assets:
Loans held for sale, at fair value	118,867				19,171
Carrying Amount
Loans held for sale, at fair value	118,867				19,171
Level 3 \| Loans Held for Investment
Assets:
Loans held for investment, at fair value	469,801				505,268
Carrying Amount
Loans held for investment, at fair value	469,801				505,268
Level 3 \| Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	0				0
Level 3 \| Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	0				0
Level 3 \| Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	0
Level 3 \| Equity warrants
Liabilities:
Equity warrants	141
Level 3 \| Non-affiliate \| Loans Held For Sale
Assets:
Investments	118,867
Carrying Amount
Investments in loans, at fair value	118,867
Level 3 \| Controlled Investments
Assets:
Investments					259,217
Carrying Amount
Investments in loans, at fair value					259,217
Level 3 \| Joint Ventures
Assets:
Investments	40,859				0
Carrying Amount
Investments in loans, at fair value	40,859				0
Level 3 \| Non-Control Investments
Assets:
Investments	728				1,360
Carrying Amount
Investments in loans, at fair value	$ 728				$ 1,360

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 9—FAIR VALUE MEASUREMENTS:

The following tables present fair value measurements of certain of the Company’s assets and liabilities measured at fair value and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values as of December 31, 2023 and December 31, 2022:


	Fair Value Measurements at December 31, 2023
	Total		Level 1		Level 2		Level 3
Assets:

Debt securities available-for-sale
U.S. Treasury notes	$	29,305	$	29,305	$	—	$	—
Government agency debentures	2,866		—		2,866		—
Loans held for sale, at fair value	118,867		—		—		118,867
Loans held for investment, at fair value	469,801		—		—		469,801
Other real estate owned 1	1,110		—		—		1,110
Non-controlled/affiliate investments	728		—		—		728
Servicing assets	29,336		—		—		29,336
Joint ventures	40,859		—		—		40,859
Total assets measured at fair value	$	692,872	$	29,305	$	2,866	$	660,701
Liabilities:
Equity warrants3	$	141	$	—	$	—	$	141
Derivative instruments2,3	630		—		630		—
Total liabilities measured at fair value	$	771	$	—	$	630	$	141

(1) Included in Other Assets on the Consolidated Statements of Financial Condition.

(2) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.

(3) Included in Other Liabilities on the Consolidated Statements of Financial Condition.


	Fair Value Measurements at December 31, 2022
	Total		Level 1		Level 2		Level 3
Assets:

Loans held for sale, at fair value	$	19,171	$	—	$	—	$	19,171
Loans held for investment, at fair value	505,268		—		—		505,268
Controlled investments	259,217		—		—		259,217
Other real estate owned1	3,529		—		—		3,529
Non-control investments	1,360		—		—		1,360
Servicing assets	30,268		—		—		30,268
Joint ventures2	23,022		—		—		—
Total assets	$	841,835	$	—	$	—	$	818,813

(1) Included in Other Assets on the Consolidated Statements of Financial Condition.

(2) The Company’s investment in TSO JV and NCL JV are measured at fair value using NAV and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Statements of Financial Condition.

The following tables represents the changes in the investments, servicing assets and liabilities measured at fair value using Level 3 inputs for the years ended December 31, 2023 and 2022:


	Year Ended December 31, 2023
	Loans HFI, at FV		Loans HFS, at FV		Controlled Investments		Joint Ventures		Servicing Assets		Non-Control Investments		Warrant Liabilities2		Other Real Estate Owned1
Fair value, December 31, 2022	$	505,268	$	19,171	$	259,217	$	23,022	$	30,268	$	1,360	$	—	$	3,529
Additions/(removal) of entities consolidating after Conversion to BHC	—		69,745		(259,217)		—		—		—		—		—
Reclasses between loans at FV and LCM	5,879		(28,513)		—		—		—		—		—		—
Sales	(23,783)		(180,784)		—		—		—		—		—		(4,248)
Principal payments received	(77,966)		(6,233)		—		—		—		—		—		—
Foreclosed real estate acquired	(2,978)		—		—		—		—		—		—		2,978
SBA loans, funded	38,889		167,124		—		—		—		—		—		—
ALP loans, funded	—		69,835		—		—		—		—		—		—
Additions	—		—		—		—		2,617		—		311		—
Purchases and repurchases of loans	9,728		5,279		—		—		—		—		—		—
Capital contributions/(distributions)	—		—		—		14,550		—		(564)		—		—
Change in valuation due to:
Changes in valuation inputs or assumptions	13,515		3,931		—		3,287		1,847		(68)		(170)		—
Other factors	1,249		(688)		—		—		(5,396)		—		—		(1,149)
Fair value, December 31, 2023	$	469,801	$	118,867	$	—	$	40,859	$	29,336	$	728	$	141	$	1,110

(1) Included in Other Assets on the Consolidated Statements of Financial Condition.

(2) Included in Other Liabilities on the Consolidated Statements of Financial Condition.


	Year Ended December 31, 2022
	Loans HFI, at fair value		Loans HFS, at fair value		Controlled Investments		Servicing Assets		Non-Control Investments		Other Real Estate Owned1
Fair value, December 31, 2021	$	424,417	$	72,970	$	230,935	$	28,008	$	1,000	$	2,354
Net change in unrealized appreciation (depreciation) on investments	(19,972)		(6,532)		27,174		—		—		(402)
Change in net unrealized deprecation on servicing assets due to:
Changes in valuation inputs or assumptions	—		—		—		(2,129)		—		—
Other factors	—		—		—		(7,966)		—		—
Realized gain (loss)	(16,629)		61,176		—		—		—		(353)
SBA unguaranteed non-affiliate investments, funded	189,769		585,803		—		—		—		—
Foreclosed real estate acquired	(3,466)		—		—		—		—		3,466
Purchase of investments	—		—		47,046		—		360		—
Purchase of loans from SBA	2,404		—		—		—		—		—
Sale of investment	—		(691,219)		—		—		—		(1,536)
Return of investment	—		—		(38,968)		—		—		—
Principal payments received on debt investments	(71,255)		(3,027)		(6,970)		—		—		—
Additions to servicing assets	—		—		—		12,355		—		—
Fair value, December 31, 2022	$	505,268	$	19,171	$	259,217	$	30,268	$	1,360	$	3,529

(1) Included in Other Assets on the Consolidated Statements of Financial Condition.

The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of December 31, 2023 and December 31, 2022. In addition to the inputs noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The tables below are not intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements at December 31, 2023 and December 31, 2022.


	Fair Value as of			Weighted		Range
	December 31, 2023		Unobservable Input	Average1		Minimum		Maximum
Assets:
Held for investment, at fair value - accrual loans	$	421,627	Market yields	7.75	%	7.75	%	7.75	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Held for investment, at fair value - non-accrual loans	$	48,174	Market yields	7.39	%	7.39	%	7.39	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Held for sale, at fair value	$	118,867	Market yields	6.85	%	6.50	%	7.75	%
			Cumulative prepayment rate	61.03	%	55.60	%	75.00	%
			Average cumulative default rate	20.00	%	20.00	%	20.00	%
Joint Ventures	$	40,859	Market yields	8.00	%	8.00	%	8.00	%
			Cost of equity	12.00	%	10.00	%	14.00	%
			Weighted average cost of capital	8.50	%	7.50	%	9.50	%
Non-control equity investments	$	368	Market yields	10.00	%	8.00	%	12.00	%
	$	360	Cost basis	N/A		N/A		N/A
Servicing assets1	$	29,336	Market yields	13.50	%	13.50	%	13.50	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Other real estate owned	$	1,110	Appraised value	N/A		N/A		N/A

Liabilities:
Equity warrants	$	141	Expected volatility	43.00	%	43.00	%	43.00	%
			Dividend yield	5.20	%	5.20	%	5.20	%
			Risk free rate	3.88	%	3.88	%	3.88	%

(1) $29.3 million of servicing assets at held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.


	Fair Value as of			Weighted		Range
	December 31, 2022		Unobservable Input	Average1		Minimum		Maximum
Assets:
SBA unguaranteed non-affiliate investments - accrual loans	$	470,835	Market yields	7.90	%	7.90	%	7.90	%
			Cumulative prepayment rate	25.00	%	25.00	%	25.00	%
			Average cumulative default rate	25.00	%	25.00	%	25.00	%
SBA unguaranteed non-affiliate investments - non-accrual loans	$	34,433	Market yields	8.87	%	8.87	%	8.87	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Controlled equity investments1	$	241,113	EBITDA multiples-TTM2	8.00x		7.50x		8.50x
			EBITDA multiples-NTM2	6.90x		6.00x		7.50x
			Revenue multiples2	2.46x		0.80x		3.20x
			Book value multiples2	1.00x		0.80x		1.20x
			Weighted average cost of capital2	13.20	%	11.50	%	23.60	%
Controlled debt investments	$	18,104	Market yields	10.00	%	10.00	%	10.00	%
Non-control equity investments	$	1,000	Market yields	10.00	%	8.00	%	12.00	%
	$	360	Recent transaction	N/A		N/A		N/A
Servicing assets	$	30,268	Market yields	16.50	%	16.50	%	16.50	%
			Cumulative prepayment rate	25.00	%	25.00	%	25.00	%
			Average cumulative default rate	25.00	%	25.00	%	25.00	%
Other real estate owned	$	3,529	Appraised value	N/A		N/A		N/A

(1) Weighted by relative fair value.

(2) The Company valued $145.6 million of investments using a combination of EBITDA, trailing twelve months (“TTM”) and next twelve months (“NTM”), and revenue multiples in the overall valuation approach, which included the use of market comparable companies. The Company valued $95.3 million of investments using only discounted cash flows.

Estimated Fair Value of Other Financial Instruments

GAAP also requires disclosure of the fair value of financial instruments carried at book value on the Consolidated Statements of Financial Condition. The carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis are as follows:


	December 31, 2023
	Carrying Amount		Fair Value Amount by Level:						Total Fair Value
			Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	15,398	$	15,398	$	—	$	—	$	15,398
Restricted cash	30,919		30,919		—		—		30,919
Interest bearing deposits in banks	137,689		137,689		—		—		137,689
Debt securities available-for-sale, at fair value	32,171		29,305		2,866		—		32,171
Loans held for sale, at fair value	118,867		—		—		118,867		118,867
Loans held for sale, at LCM	56,607		—		—		56,733		56,733
Loans held for investment, at fair value	469,801		—		—		469,801		469,801
Total loans held for investment, at amortized cost, net of deferred fees and costs	336,305		—		—		337,133		337,133
Federal Home Loan Bank and Federal Reserve Bank stock	3,635		—		3,635		—		3,635
Joint ventures, at fair value	40,859		—		—		40,859		40,859
Non-control investments	728		—		—		728		728
Financial Liabilities:
Time deposits	167,041		—		168,542		—		168,542
Borrowings	644,122		—		187,555		454,239		641,794

	December 31, 2022
	Carrying Amount		Fair Value Amount by Level:						Total Fair Value
			Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	53,692	$	53,692	$	—	$	—	$	53,692
Restricted cash	71,914		71,914		—		—		71,914
Loans held for sale, at fair value	19,171		—		—		19,171		19,171
Loans held for investment, at fair value	505,268		—		—		505,268		505,268
Controlled investments	259,217		—		—		259,217		259,217
Non-control investments	1,360		—		—		1,360		1,360
Financial Liabilities:
Borrowings	539,326		—		152,162		388,226		540,388

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Investments with Affiliates (Details) - Related Party - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Due to affiliated companies	$ 158	$ 1,338
Due from affiliated companies	7	1,211
Total due to/due from affiliated companies	151	127
Total notes payable - related parties	$ 0	$ 24,250

DERIVATIVE INSTRUMENTS - Derivatives Outstanding (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Liability	$ 630
Foreign Exchange Future
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional		$ 0
Asset	0	0
Liability	$ 630	$ 0
Remaining Maturity	3 months
Foreign Exchange Future \| Short
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional	$ (27,869)

- Definition

Fair value, after the effects of master netting arrangements, of a financial asset or other contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset. Includes assets not subject to a master netting arrangement and not elected to be offset.

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+ Details

- Definition

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset. Includes liabilities not subject to a master netting arrangement and not elected to be offset.

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+ Details

BUSINESS COMBINATION - Purchase Price (Details) - USD ($) $ in Thousands	Jan. 06, 2023	Dec. 31, 2023	Dec. 31, 2022
Fair value of assets acquired:
Goodwill		$ 25,885	$ 0
NBNYC
Business Acquisition [Line Items]
Purchase price consideration	$ 21,281
Fair value of assets acquired:
Cash and due from banks	29,138
Interest-bearing deposits in banks	3,284
Total cash and cash equivalents	32,422
Available-for-sale securities (at fair value)	5,004
Other investments	1,226
Loans receivable	159,155
Federal Reserve Bank stock, at cost	54
Federal Home Loan Bank stock, at cost	1,470
Accrued interest receivable	353
Deferred income taxes	495
Goodwill	271
Core deposit intangible	1,040
Other assets	399
Total assets	201,889
Deposits:
Demand	21,878
Savings, Super NOW, and Money Market	10,975
Certificates of deposit	104,162
Total deposits	137,015
Advances from the Federal Home Loan Bank	27,817
Accrued expenses and other liabilities	15,776
Total liabilities	$ 180,608

FAIR VALUE MEASUREMENTS - Level III Rollforward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Net Unrealized Gains/(Losses)
Unrealized Gain (Loss) On Servicing Assets \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Unrealized Gain (Loss) On Servicing Assets
Unrealized Gain (Loss) On Servicing Assets \| Factors Other Than Changes in Valuation Inputs Or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Unrealized Gain (Loss) On Servicing Assets
Debt and Equity Securities, Realized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Net gains on sales of loans
Loans Held for Investment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	$ 505,268	$ 424,417
Reclasses between loans at FV and LCM	5,879
Gain (loss) included in earnings	(23,783)
Settlements	(77,966)	(71,255)
Sales	(2,978)	(3,466)
Purchases	9,728
Funded	38,889	189,769
Purchase of loans from SBA		(2,404)
Fair value, ending balance	469,801	505,268
Loans Held for Investment \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	13,515
Loans Held for Investment \| Factors Other Than Changes in Valuation Inputs Or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	1,249
Loans Held for Investment \| Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings		(19,972)
Loans Held for Investment \| Debt and Equity Securities, Realized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings		(16,629)
Loans Held For Sale
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	19,171	72,970
Additions/(removal) of entities consolidating after Conversion to BHC	69,745
Reclasses between loans at FV and LCM	(28,513)
Gain (loss) included in earnings	(180,784)
Settlements	(6,233)	(3,027)
Sales		(691,219)
Purchases	5,279
Funded	167,124	585,803
Fair value, ending balance	118,867	19,171
Loans Held For Sale \| Conventional Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	69,835
Loans Held For Sale \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	3,931
Loans Held For Sale \| Factors Other Than Changes in Valuation Inputs Or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(688)
Loans Held For Sale \| Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings		(6,532)
Loans Held For Sale \| Debt and Equity Securities, Realized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings		61,176
Investments \| Controlled Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	259,217	230,935
Additions/(removal) of entities consolidating after Conversion to BHC	(259,217)
Gain (loss) included in earnings		27,174
Settlements		(6,970)
Purchases		47,046
Return of investment		(38,968)
Fair value, ending balance	0	259,217
Investments \| Joint Ventures
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	23,022
Purchases	14,550
Fair value, ending balance	40,859	23,022
Investments \| Joint Ventures \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	3,287
Investments \| Non-Control Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	1,360	1,000
Purchases	(564)	360
Fair value, ending balance	728	1,360
Investments \| Non-Control Investments \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(68)
Servicing assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	30,268	28,008
Purchases	2,617	12,355
Fair value, ending balance	29,336	30,268
Servicing assets \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	1,847	(2,129)
Servicing assets \| Factors Other Than Changes in Valuation Inputs Or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(5,396)	(7,966)
Equity warrants
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	0
Purchases	311
Fair value, ending balance	141	0
Equity warrants \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(170)
Other Real Estate Owned
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	3,529	2,354
Gain (loss) included in earnings	(4,248)
Sales		(1,536)
Purchases	2,978	3,466
Fair value, ending balance	1,110	3,529
Other Real Estate Owned \| Factors Other Than Changes in Valuation Inputs Or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	$ (1,149)
Other Real Estate Owned \| Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings		(402)
Other Real Estate Owned \| Debt and Equity Securities, Realized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings		$ (353)

SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)	Dec. 31, 2023 USD ($) sponsorBank merchantProcessor segment	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Property, Plant and Equipment [Line Items]
Loan-to-value ratio	75.00%
Debt service coverage, minimum	1.2
Weighted average life	5 years
Deferred fees and costs	$ 1,200,000
Cash deposits in excess of insured amounts	37,200,000
Restricted cash	30,919,000				$ 71,914,000
Deferred tax asset, net	5,230,000	$ 16,255,000	$ 12,627,000	$ 12,826,000	0
Deferred tax liabilities, net	$ 0				19,194,000
Number of reportable segments \| segment	4
Allowance for credit loss	$ 1,000,000				$ 0
Remaining contractual term	3 years
Renewal term	10 years
Number of sponsor banks \| sponsorBank	2
Number of merchant processors \| merchantProcessor	1
SBA investment
Property, Plant and Equipment [Line Items]
Principal balances sold	$ 56,500,000
Premiums	$ 5,700,000
Minimum
Property, Plant and Equipment [Line Items]
Tangible asset, Useful life	3 years
Minimum \| Customer Merchant Accounts
Property, Plant and Equipment [Line Items]
Intangible asset, useful life	66 months
Minimum \| Leasehold Improvements
Property, Plant and Equipment [Line Items]
Tangible asset, Useful life	3 years
Maximum
Property, Plant and Equipment [Line Items]
Tangible asset, Useful life	7 years
Maximum \| Customer Merchant Accounts
Property, Plant and Equipment [Line Items]
Intangible asset, useful life	120 months
Maximum \| Leasehold Improvements
Property, Plant and Equipment [Line Items]
Tangible asset, Useful life	5 years

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 47,329	$ 32,311	$ 84,142
Adjustments to reconcile net income to net cash used in operating activities:
Net realized gain (loss) on controlled investments	0	0	1,266
Net (gain) loss on loans accounted for under the fair value option	(18,008)	26,504	(11,477)
Net unrealized depreciation on servicing assets	3,549	10,095	6,778
Net unrealized depreciation (appreciation) on derivative transactions	699	(183)	183
Net gain on sales of loans	(50,734)	(56,901)	(53,113)
Net accretion of premium/discount	(675)	0	0
Loss on extinguishment of debt	271	417	1,552
Amortization of deferred financing costs	4,052	2,494	2,654
Provision for credit losses	11,704	0	0
Allowance for doubtful accounts	3,637	0	397
Stock compensation expense	2,828	0	0
Deferred income tax (benefit) expense	(4,800)	6,464	1,327
Depreciation and amortization	2,884	239	304
Proceeds from sale of loans held for sale	695,461	691,219	1,203,475
Purchase of loans held for sale	0	(2,404)	(9,096)
Sale of loans to affiliate	0	0	5,394
Funding of investments	(783,035)	(775,577)	(1,289,572)
Principal received on loans held for sale	12,235	74,287	77,070
Return of investment from controlled investments	0	48,709	34,856
Other, net	0	3,257	2,851
Changes in operating assets and liabilities:
Settlement receivable	(62,230)	44,537	8,193
Income tax receivable	4,040	0	0
Dividends receivable	(493)	0	0
Due to/from related parties	(165)	2,778	677
Other assets	7,432	1,816	800
Dividends payable	4,776	0	0
Due to participants	(11,832)	(110,598)	128,340
Accounts payable, accrued expenses and other liabilities	(22,552)	9,021	1,194
Other, net	0	6	23
Net cash used in operating activities	(169,219)	(62,418)	140,923
Cash flows from investing activities:
Net decrease in loans held for investment, at fair value	29,349	0	0
Net increase in loans held for investment, at cost	(169,003)	0	0
Contributions to joint ventures	(14,550)	0	0
Purchase of fixed assets	(458)	(11)	0
Return of capital - non-control investments	564	0	0
Net increase in Federal Home Loan and Federal Reserve Bank stock	(2,112)	0	0
Purchases of available-for-sale securities	(27,167)	0	0
Acquisitions, net of cash acquired	11,142	0	0
Net cash used in investing activities	(172,235)	(11)	0
Cash flows from financing activities:
Net (paydowns) borrowings on bank notes payable	(78,663)	5,885	(36,339)
Net increase in deposits	324,705	0	0
Repayment of Federal Home Loan Bank advances	(4,895)	0	0
Proceeds from common shares sold, net of offering costs	0	2,019	50,007
Proceeds from preferred stock, net of offering costs	19,493	0	0
Net repayments under related party line of credit	0	12,800	(12,640)
Payments on Notes Payable - Securitization Trusts	(90,780)	(82,817)	(75,432)
Issuance of Notes Payable - Securitization Trusts	103,860	116,210	103,430
Dividends paid, net of dividend reinvestment plan	(14,147)	(64,544)	(70,144)
Payments of deferred financing costs	(4,650)	(2,552)	(5,295)
Proceeds from common stock issued under ESPP	51	0	0
Purchase of vested stock for employee payroll tax withholding	0	(826)	(1,575)
Net cash provided by financing activities	344,974	1,175	(5,488)
Net increase (decrease) in cash and restricted cash	3,520	(61,254)	135,435
Cash and restricted cash—beginning of period (Note 2)	125,606	186,860	51,425
Consolidation of cash and restricted cash from controlled investments and business combinations, net of cash paid	54,880	0	0
Cash and restricted cash—end of period (Note 2)	184,006	125,606	186,860
Non-cash operating, investing and financing activities:
Foreclosed real estate acquired	2,978	3,466	2,171
Dividends declared but not paid during the period	4,363	2,118	0
Issuance of common shares under dividend reinvestment plan	219	1,614	1,923
Supplemental disclosure of cash flow information:
Interest paid	9,108	18,344	20,131
Income taxes paid	6,884	0	0
2024 Notes
Cash flows from financing activities:
Proceeds from Notes	0	0	15,000
Redemption of Notes	0	0	(40,000)
2025 6.85% Notes
Cash flows from financing activities:
Proceeds from Notes	0	0	10,000
Redemption of Notes	0	(15,000)	0
2025 5.00% Notes
Cash flows from financing activities:
Proceeds from Notes	0	30,000	0
2025 8.125% Notes
Cash flows from financing activities:
Proceeds from Notes	50,000	0	0
2026 Notes
Cash flows from financing activities:
Proceeds from Notes	0	0	115,000
2028 8.00% Notes
Cash flows from financing activities:
Proceeds from Notes	40,000	0	0
2023 Notes
Cash flows from financing activities:
Redemption of Notes	0	0	(57,500)
Affiliate Investments
Adjustments to reconcile net income to net cash used in operating activities:
Net unrealized (appreciation) depreciation on investments	(3,219)	0	0
Net realized gain (loss) on controlled investments	0
Purchase of loans held for sale from affiliate	(5,279)	0	0
Non-Control Investments
Adjustments to reconcile net income to net cash used in operating activities:
Net unrealized (appreciation) depreciation on investments	68
Net realized gain (loss) on controlled investments	0
Funding of investments	0	(360)	0
Principal received on investments	0	0	54
Controlled Investments
Adjustments to reconcile net income to net cash used in operating activities:
Net unrealized (appreciation) depreciation on investments	0	(24,321)	(2,829)
Funding of investments	0	(53,198)	(55,270)
Principal received on investments	$ 0	$ 6,970	$ 750

INCOME TAXES - Components of income tax expense (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current income tax expense:
Federal						$ 1,251
State						1,593
Total current expense						2,844
Deferred income tax expense:
Federal						(4,318)
State						(482)
Total deferred expense						(4,800)	$ 6,464	$ 1,327
Income tax expense (benefit)	$ 3,416	$ 2,595	$ (11,952)	$ (9,357)	$ (5,941)	$ (1,956)	$ 6,464	$ 1,327

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Breakdown of derivatives outstanding

The following is a breakdown of the derivatives outstanding as of December 31, 2023 and December 31, 2022:


	December 31, 2023							December 31, 2022
			Fair Value				Remaining			Fair Value				Remaining
Contract Type	Notional1		Asset		Liability2		Maturity (years)	Notional		Asset		Liability		Maturity (years)
5-year Treasury Futures	$	(27,869)	$	—	$	630	0.25 years	$	—	$	—	$	—	—

(1) Shown as a negative number when the position is sold short.

(2) Shown in Accounts Payable, Accrued Expenses, and Other Liabilities in the accompanying consolidated balance sheets.

Gains and losses on derivatives


	Year Ended
		December 31, 2023	December 31, 2022				December 31, 2021
Contract Type			Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)		Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)		Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)
5-year Treasury Futures			$	(699)	$	834	$	183	$	445	$	(183)	$	590

REGULATORY CAPITAL (Tables)

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Schedule of capital amounts

Capital amounts and ratios for NewtekOne, Inc. as of December 31, 2023 are presented in the table below:


	Actual				For Capital Adequacy Purposes1				For Consideration as Well-Capitalized
NewtekOne, Inc. - December 31, 2023	Amount		Ratio		Amount		Ratio		Amount	Ratio
Tier 1 Capital (to Average Assets)	$	180,829	13.6	%	$	53,363	4.0	%	N/A	N/A
Common Equity Tier 1 (to Risk-Weighted Assets)	180,829		16.2	%	50,153		4.5	%	N/A	N/A
Tier 1 Capital (to Risk-Weighted Assets)	180,829		16.2	%	66,870		6.0	%	N/A	N/A
Total Capital (to Risk-Weighted Assets)	213,141		19.1	%	89,160		8.0	%	N/A	N/A

(1) Exclusive of the capital conservation buffer of 2.5% of risk-weighted assets.

Capital amounts and ratios for Newtek Bank as of December 31, 2023, are presented in the table below. As of December 31, 2023, Newtek Bank was categorized as “well-capitalized” under the prompt corrective action measures and met the capital conservation buffer requirements.


	Actual				For Capital Adequacy Purposes1				For Consideration as Well-Capitalized
Newtek Bank - December 31, 2023	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 Capital (to Average Assets)	$	99,253	16.6	%	$	23,893	4.0	%	$	29,866	5.0	%
Common Equity Tier 1 (to Risk-Weighted Assets)	99,253		21.5	%	20,787		4.5	%	30,026		6.5	%
Tier 1 Capital (to Risk-Weighted Assets)	99,253		21.5	%	27,716		6.0	%	36,955		8.0	%
Total Capital (to Risk-Weighted Assets)	105,105		22.8	%	36,954		8.0	%	46,193		10.0	%

(1) Exclusive of the capital conservation buffer of 2.5% of risk-weighted assets.

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2023

Quarterly Financial Information Disclosure [Abstract]

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

NOTE 24—SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED):

Summary of Revisions to Prior Period Quarterly Consolidated Financial Statements

As of January 6, 2023, the Company is no longer subject to Financial Accounting Standard Board Accounting Standards Codification (FASB) Topic (ASC) 946 Financial Services – Investment Companies, which resulted in a significant change in the Company’s accounting and financial reporting requirements for the year ended December 31, 2023. For example, the Company is required to consolidate the financial statements of what was previously referred to as our controlled or majority-owned investments together with those already consolidated by the Company. In accordance with ASC 946, prior to January 6, 2023, the Company was required to account for investments, loans and other receivables at fair value. For fiscal year ended December 31, 2023, the Company is now required to account for debt securities under ASC 320, loans and other receivables, including modifications and restructurings under ASC 310, and must apply the current expected credit loss model to each of these financial instruments under ASC 326. Additionally, management continues to elect the fair value option of accounting under ASC 825 for certain financial instruments. Finally, as a result of the conversion, the Company no longer qualifies as a RIC for federal income tax purposes, and no longer qualifies for accounting treatment as an investment company, therefore management has been required to expend significant efforts in order to implement these changes in accounting and financial reporting requirements.

The Company’s condensed comparative financial statements have been adjusted to correct errors made in the Company’s financial statements previously issued for the first, second, and third quarters of 2023. These adjustments include the following adjustments for the year-to-date period ended September 30, 2023:

1.Accounting for deferred loan origination fees and costs, net, under ASC 310 resulting for the year-to-date period ended September 30, 2023, in (a) a $5.1 million and $5.7 million decrease in non-interest income and non-interest expense, respectively, and (b) net increases to pretax income of $0.6 million (the Company was not applying the standard to its SBA 7(a) HFI at amortized cost or to its SBA 504 HFS at LCM portfolios);

2.Calculating EPS under ASC 260 (a) exclude stock compensation awards from average basic shares outstanding and (b) adjust average diluted shares to reflect the (i) treasury stock method for stock compensation awards and warrants and (ii) the if-converted method for preferred stock and (c) adjusting the allocation under the two-class method to align with the contractual limitations for preferred stock, all of which result in quarterly increases per share for both basic and diluted EPS for the first three quarters of 2023;

3.Establishing net deferred net tax assets and income taxes receivable under ASC 740 in conjunction with the common control transaction, as of January 6, 2023, specifically to recognize (a) the book tax differences on the inside basis of the assets and liabilities that were consolidated as of that date (b) net amounts receivable from tax authorities and © deferred tax assets arising from a change in taxpayer filing status in conjunction with the Reorganization, all of which resulted in increased net deferred tax assets and income taxes receivable of $10.0 million and an increase to additional paid in capital of $2.9 million and an income tax benefit of $7.1 million. The results of these adjustments impacted period end balances on the statements of financial condition and year-to-date amounts on the statements of income for each period presented;

4.Establishing certain servicing assets under ASC 860 in conjunction with the common control transaction and servicing assets that stemmed from loan originations that occurred following January 6, 2023, resulting in a $1.0 million increase in non-interest income and a $1.5 million increase in servicing assets; and

5.An adjusting opening balance sheet entry in conjunction with common control transaction to correct (a) net understatements of goodwill and intangibles and stockholders’ equity resulting in respective increases of $3.9 million and (b) amortization of intangible assets.

The year-to-date and quarterly impact of these adjustments for the periods presented are outlined in the unaudited tables below.

Statements of Financial Condition (Unaudited)


	September 30, 2023						June 30, 2023						March 30, 2023
	As Reported1		Adjustment		As Adjusted		As Reported1		Adjustment		As Adjusted		As Reported1		Adjustment		As Adjusted
Assets
Cash and due from banks	$	223,692	$	—	$	223,692	$	256,333	$	—	$	256,333	$	197,143	$	—	$	197,143
Loans held for investment, at amortized cost, net1	272,725		653		273,378		213,501		294		213,795		164,639		9		164,648
Goodwill & intangibles	27,157		4,154		31,311		27,595		4,072		31,667		28,101		3,990		32,091
Deferred tax asset, net	8,656		7,599		16,255		4,622		8,005		12,627		4,706		8,120		12,826
Servicing assets	36,774		1,517		38,291		35,754		484		36,238		33,351		328		33,679
Other assets	48,430		1,418		49,848		46,670		1,541		48,211		49,850		1,629		51,479
All other assets	760,720		—		760,720		852,150		—		852,150		767,933		—		767,933
Total assets	$	1,378,154	$	15,341	$	1,393,495	$	1,436,625	$	14,396	$	1,451,021	$	1,245,723	$	14,076	$	1,259,799

Liabilities and Shareholders' Equity
Liabilities:
Deposits	$	432,559	$	—	$	432,559	$	447,357	$	—	$	447,357	$	247,574	$	—	$	247,574
Accounts payable, accrued expenses and other liabilities	36,509		162		36,671		37,512		162		37,674		44,912		—		44,912
All other liabilities	682,063		—		682,063		730,541		—		730,541		734,727		—		734,727
Total liabilities	1,151,131		162		1,151,293		1,215,410		162		1,215,572		1,027,213		—		1,027,213

Shareholders' Equity:
All Other Equity	20,045		—		20,045		20,026		—		20,026		20,147		—		20,147
Retained Earnings	14,267		7,935		22,202		9,075		6,990		16,065		7,047		6,832		13,879
APIC	192,711		7,244		199,955		192,114		7,244		199,358		191,316		7,244		198,560
Total shareholders’ equity	227,023		15,179		242,202		221,215		14,234		235,449		218,510		14,076		232,586
Total Liabilities & Shareholders Equity	$	1,378,154	$	15,341	$	1,393,495	$	1,436,625	$	14,396	$	1,451,021	$	1,245,723	$	14,076	$	1,259,799

1Certain amounts labeled “As Reported” have been reclassified to conform to current period presentation.

Statements of Income

for the Quarterly Periods (Unaudited)


	December 31, 2023		September 30, 2023						June 30, 2023						March 31, 2023
	As Reported		As Reported1		Adjustment		As Adjusted		As Reported1		Adjustment		As Adjusted		As Reported1		Adjustment		As Adjusted
Interest income	$	26,369	$	26,736	$	—	$	26,736	$	22,553	$	—	$	22,553	$	18,715	$	—	$	18,715
Interest expense	18,068		18,659		—		18,659		16,880		—		16,880		14,132		—		14,132
Net interest income	8,301		8,077		—		8,077		5,673		—		5,673		4,583		—		4,583
Provision for credit losses	4,365		3,446		—		3,446		2,575		—		2,575		1,318		—		1,318
Noninterest income
Net gains on sales of loans	17,252		12,718		1,033		13,751		13,208		156		13,364		6,526		(159)		6,367
Technology and IT support income	6,460		5,499		(123)		5,376		6,459		(88)		6,371		6,709		—		6,709
Other noninterest income	25,395		24,683		(2,786)		21,897		26,761		(2,211)		24,550		29,552		(272)		29,280
Noninterest expense
Salaries and benefits	14,535		15,300		(1,574)		13,726		19,418		(1,044)		18,374		19,119		(46)		19,073
Depreciation and amortization	613		812		(82)		730		832		(82)		750		873		(82)		791
Other loan origination and maintenance expense	2,503		3,405		(1,569)		1,836		3,559		(1,246)		2,313		2,827		(46)		2,781
Other noninterest expense	20,558		15,028		—		15,028		16,340		—		16,340		16,378		—		16,378
Income tax expense (benefit)	4,623		3,011		405		3,416		2,524		71		2,595		(4,863)		(7,089)		(11,952)
Net income	$	10,211	$	9,975	$	944	$	10,919	$	6,853	$	158	$	7,011	$	11,718	$	6,832	$	18,550

Weighted average number of shares outstanding
Basic	24,259		24,663		(386)		24,277		24,607		(343)		24,264		24,609		(386)		24,223
Diluted	24,342		24,663		(250)		24,413		25,588		(1,282)		24,306		25,237		(356)		24,881
Earnings (loss) per common share
Basic	$	0.43	$	0.38	$	0.05	$	0.43	$	0.26	$	0.01	$	0.27	$	0.46	$	0.30	$	0.76
Diluted	$	0.43	$	0.38	$	0.05	$	0.43	$	0.26	$	0.01	$	0.27	$	0.46	$	0.28	$	0.74

REGULATORY CAPITAL

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

REGULATORY CAPITAL

NOTE 17—REGULATORY CAPITAL:

The maintenance of appropriate levels of capital is a management priority and is monitored on a regular basis. The Company’s principal goals related to the maintenance of capital are the following: to provide adequate capital to support the Company’s risk profile consistent with the risk appetite approved by the Board of Directors; to provide financial flexibility to support future growth and client needs; comply with relevant laws, regulations, and supervisory guidance; to achieve optimal ratings for the Company and its subsidiaries; and to provide a competitive return to shareholders. Management regularly monitors the capital position of the Company on both a consolidated and bank level basis. Risk-based capital ratios, which include Tier 1 Capital, Total Capital and Common Equity Tier 1 Capital, are calculated based on regulatory guidance related to the measurement of capital and risk-weighted assets.

Regulatory capital rules adopted in July 2013 and fully phased in as of January 1, 2019, which are referred to as the Basel III rules, impose minimum capital requirements for bank holding companies and banks. The Basel III rules apply to all national and state banks and savings associations regardless of size and bank holding companies and savings and loan holding companies with consolidated assets of more than $3 billion. In order to avoid restrictions on capital distributions or discretionary bonus payments to executives, a covered banking organization must maintain the fully phased in “capital conservation buffer” of 2.5% on top of its minimum risk-based capital requirements. This buffer must consist solely of common equity Tier 1 risk-based capital, but the buffer applies to all three measurements (common equity Tier 1 risk-based capital, Tier 1 capital and total capital). The capital conservation is equal to 2.5% of risk-weighted assets.

Capital amounts and ratios for NewtekOne, Inc. as of December 31, 2023 are presented in the table below:


	Actual				For Capital Adequacy Purposes1				For Consideration as Well-Capitalized
NewtekOne, Inc. - December 31, 2023	Amount		Ratio		Amount		Ratio		Amount	Ratio
Tier 1 Capital (to Average Assets)	$	180,829	13.6	%	$	53,363	4.0	%	N/A	N/A
Common Equity Tier 1 (to Risk-Weighted Assets)	180,829		16.2	%	50,153		4.5	%	N/A	N/A
Tier 1 Capital (to Risk-Weighted Assets)	180,829		16.2	%	66,870		6.0	%	N/A	N/A
Total Capital (to Risk-Weighted Assets)	213,141		19.1	%	89,160		8.0	%	N/A	N/A

(1) Exclusive of the capital conservation buffer of 2.5% of risk-weighted assets.


	Actual				For Capital Adequacy Purposes1				For Consideration as Well-Capitalized
Newtek Bank - December 31, 2023	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tier 1 Capital (to Average Assets)	$	99,253	16.6	%	$	23,893	4.0	%	$	29,866	5.0	%
Common Equity Tier 1 (to Risk-Weighted Assets)	99,253		21.5	%	20,787		4.5	%	30,026		6.5	%
Tier 1 Capital (to Risk-Weighted Assets)	99,253		21.5	%	27,716		6.0	%	36,955		8.0	%
Total Capital (to Risk-Weighted Assets)	105,105		22.8	%	36,954		8.0	%	46,193		10.0	%

(1) Exclusive of the capital conservation buffer of 2.5% of risk-weighted assets.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 2.8	$ 2.5	$ 2.1
Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense	$ 3.6
Remaining weighed-average period	1 year 8 months 12 days
Outstanding (shares)	345
Weighted average grant date fair value (in dollars per share)	$ 19.18
Unvested Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding (shares)	44

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

LOANS (Tables)

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

Investment holdings, schedule of investments

Investments consisted of the following at:


	December 31, 2023				December 31, 2022
	Cost		Fair Value		Cost		Fair Value
Debt securities available-for-sale, at fair value	$	32,372	$	32,171	$	—	$	—
Federal Home Loan Bank and Federal Reserve Bank stock	3,635		3,635		—		—
Non-controlled investments	796		728		1,360		1,360
Joint ventures	37,864		40,859		23,314		23,022

Controlled investments:
Equity	—		—		99,195		241,113
Debt	—		—		32,300		18,104
Total investments	$	74,667	$	77,393	$	156,169	$	283,599

The following tables shows the Company’s loan portfolio by industry for loans held for investment, at fair value and loans held for investment, at amortized cost:


	Loans Held for Investment, at Fair Value
	December 31, 2023				December 31, 2022
	Cost		Fair Value		Cost		Fair Value
Food Services and Drinking Places	$	43,779	$	43,955	$	47,012	$	47,198
Specialty Trade Contractors	40,193		35,451		42,082		38,059
Professional, Scientific, and Technical Services	36,248		35,377		39,910		38,086
Ambulatory Health Care Services	27,291		26,633		27,275		25,151
Merchant Wholesalers, Durable Goods	21,873		21,152		22,164		22,004
Administrative and Support Services	21,319		19,521		22,352		20,827
Amusement, Gambling, and Recreation Industries	21,289		22,839		23,812		24,928
Repair and Maintenance	15,886		17,005		16,993		17,165
Merchant Wholesalers, Nondurable Goods	15,623		15,573		16,183		15,312
Truck Transportation	15,590		12,113		23,673		18,071
Personal and Laundry Services	12,867		13,584		12,949		13,333
Fabricated Metal Product Manufacturing	12,439		13,205		13,483		14,032
Food Manufacturing	10,233		8,714		10,756		8,873
Construction of Buildings	9,868		9,890		11,252		10,194
Accommodation	9,259		10,162		11,476		10,428
Motor Vehicle and Parts Dealers	9,046		9,382		10,071		9,536
Social Assistance	8,857		9,721		9,150		9,857
Support Activities for Mining	8,455		7,754		10,426		8,615
Transportation Equipment Manufacturing	7,687		7,999		8,272		8,445
Building Material and Garden Equipment and Supplies Dealers	7,384		6,781		8,098		7,689
Food and Beverage Stores	7,026		7,306		5,711		5,857
Rental and Leasing Services	6,764		7,178		7,417		7,647
Nursing and Residential Care Facilities	6,182		6,709		8,187		8,697
Educational Services	5,368		5,636		5,838		6,133
Other	102,037		96,161		118,251		109,131
Total	$	482,563	$	469,801	$	532,793	$	505,268

Schedule of loans and leases


	Loans Held for Investment, at Amortized Cost
	December 31, 2023		December 31, 2022
Commercial Real Estate	$	163,803	$	—
Commercial & Industrial	8,191		—
Small Business Administration	163,918		—
Total Loans	335,912		—
Deferred fees and costs	393		—
Loans held for investment, at amortized cost, net of deferred fees and costs	$	336,305	$	—

The following tables summarize the aging of accrual and non-accrual loans by class:


	As of December 31, 2023
		30-59 Days Past Due and Accruing		60-89 Days Past Due and Accruing		90 or more Days Past Due and Accruing(1)		Non- accrual		Total past Due and Non-accrual		Current		Total Carried at Amortized Cost		Total Loans Accounted for Under the Fair Value Option		Total Loans Held for Investment
At amortized cost
SBA		$	3,637	$	311	$	—	$	752	$	4,700	$	159,218	$	163,918	$	—	$	163,918
Commercial Real Estate		948		—		—		4,621		5,569		158,234		163,803		—		163,803
Commercial & Industrial		—		—		—		—		—		8,191		8,191		—		8,191
Total, at amortized cost		$	4,585	$	311	$	—	$	5,373	$	10,269	$	325,643	$	335,912	$	—	$	335,912
Deferred fees and costs														393		—		393
Total, at amortized cost net of deferred fees and costs														$	336,305	$	—	$	336,305
Allowance for credit losses														(12,574)		—		(12,574)
Total, at amortized cost, net														$	323,731	$	—	$	323,731

At fair value
SBA		$	20,380	$	16,075	$	—	$	48,174	$	84,629	$	385,172			$	469,801	$	469,801


Total loans held for investment		$	24,965	$	16,386	$	—	$	53,547	$	94,898	$	710,815	$	323,731	$	469,801	$	793,532

(1)Represents loans that are considered well secured and in the process of collection.


	As of December 31, 2022
		30-59 Days Past Due and Accruing		60-89 Days Past Due and Accruing		90 or more Days Past Due and Accruing		Non- accrual		Total past Due and Non-accrual		Current		Total Carried at Amortized Cost		Loans Accounted for Under the Fair Value Option		Total Loans


SBA		$	18,681	$	12,754	$	—	$	34,433	$	65,868	$	439,400	$	—	$	505,268	$	505,268

Credit quality indicators

The following tables present asset quality indicators by portfolio class and origination year as of December 31, 2023.


	Term Loans Held for Investment by Origination Year
	2023		2022		2021		2020		2019		Prior		Total
SBA 7(a) Unguaranteed, net of deferred fees and costs
Risk Grades 1-4	$	161,263	$	—	$	—	$	—	$	—	$	—	$	161,263
Risk Grades 5-6	2,655		—		—		—		—		—		2,655
Risk Grade 7	—		—		—		—		—		—		—
Risk Grade 8	—		—		—		—		—		—		—
Total	$	163,918	$	—	$	—	$	—	$	—	$	—	$	163,918

SBA, at fair value
Risk Grades 1-4	$	34,289	$	151,929	$	53,998	$	27,870	$	52,175	$	94,751	$	415,012
Risk Grades 5-6	349		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

Commercial Real Estate
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

Commercial & Industrial
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

December 31, 2022	2022		2021		2020		2019		2018		Prior		Total
SBA
Risk Grades 1-4	$	171,948	$	66,113	$	34,116	$	69,563	$	55,376	$	70,669	$	467,785
Risk Grades 5-6	698		3,633		595		5,400		6,772		20,273		37,371
Risk Grade 7	—		—		—		—		—		112		112
Total	$	172,646	$	69,746	$	34,711	$	74,963	$	62,148	$	91,054	$	505,268

Allowance for credit losses

The following table details activity in the ACL for the year ended December 31, 2023:


	Commercial Real Estate		Commercial & Industrial		Small Business Administration		Total
Beginning Balance	$	—	$	—	$	—	$	—
Adjustment to Beginning Balance due to PCD marks1	774		96		—		870
Charge offs	—		—		—		—
Recoveries	—		—		—		—
Provision	634		218		10,852		11,704
Ending Balance	$	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. There were no charge-offs or recoveries on the loans held for investment, at amortized cost during the year ended December 31, 2023.

Held for sale


	December 31, 2023				December 31, 2022
	At FV		At LCM		At FV		At LCM
SBA 504 First Lien	$	66,387	$	38,787	$	—	$	—
SBA 504 Second Lien	20,757		5,741		—		—
SBA 7(a)	262		64		287		—
SBA 7(a) Partials	104		11,237		18,884		—
ALP	31,357		—		—		—
Subtotal	118,867		55,829		19,171		—
Deferred fees and costs	—		778		—		—
Loans held for sale, net of deferred fees and costs	$	118,867	$	56,607	$	19,171	$	—

BORROWINGS - Repayments of Debt (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Debt Disclosure [Abstract]
2024	$ 53,109
2025	104,701
2026	117,094
2027	41,985
2028	40,000
Thereafter	296,223
Net carrying amount	$ 653,112

INVESTMENTS - Debt Securities, Unrealized Losses (Details) $ in Thousands	Dec. 31, 2023 USD ($) loan
Debt Securities, Available-for-Sale [Line Items]
Less Than 12 Months, Fair Value	$ 32,171
Less Than 12 Months, Unrealized Losses	201
12 Months or More, Fair Value	0
12 Months or More, Unrealized Losses	$ 0
Number of Holdings \| loan	3
Total, Fair Value	$ 32,171
Total, Unrealized Losses	201
U.S. Treasury notes
Debt Securities, Available-for-Sale [Line Items]
Less Than 12 Months, Fair Value	29,304
Less Than 12 Months, Unrealized Losses	67
12 Months or More, Fair Value	0
12 Months or More, Unrealized Losses	$ 0
Number of Holdings \| loan	1
Total, Fair Value	$ 29,304
Total, Unrealized Losses	67
Government agency debentures
Debt Securities, Available-for-Sale [Line Items]
Less Than 12 Months, Fair Value	2,867
Less Than 12 Months, Unrealized Losses	134
12 Months or More, Fair Value	0
12 Months or More, Unrealized Losses	$ 0
Number of Holdings \| loan	2
Total, Fair Value	$ 2,867
Total, Unrealized Losses	$ 134

INCOME TAXES - Operating loss carryforwards (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Investments, Owned, Federal Income Tax Note [Line Items]
Total		$ 35,400
Never
Investments, Owned, Federal Income Tax Note [Line Items]
Total		$ 30,800
Federal
Investments, Owned, Federal Income Tax Note [Line Items]
Total	$ 2,428
Federal \| Years ended 2029 - 2035
Investments, Owned, Federal Income Tax Note [Line Items]
Total	0
Federal \| Years ended 2036 - 2043
Investments, Owned, Federal Income Tax Note [Line Items]
Total	0
Federal \| Never
Investments, Owned, Federal Income Tax Note [Line Items]
Total	$ 2,428

NEWTEKONE, INC. - PARENT COMPANY ONLY - Cash Flow Statement (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income (loss)	$ 45,875	$ 32,311	$ 84,142
Provisions for deferred income taxes	(4,800)	6,464	1,327
Net change in other liabilities	0	6	23
Net change in other asset	7,432	1,816	800
Net cash used in operating activities	(169,219)	(62,418)	140,923
Cash flows from investing activities:
Net cash used in investing activities	(172,235)	(11)	0
Cash flows from financing activities:
Proceeds from issuance of preferred stock	19,493	0	0
Dividends paid	(14,147)	(64,544)	(70,144)
Net cash provided by financing activities	344,974	1,175	(5,488)
Net (decrease) increase in cash and restricted cash	3,520	(61,254)	135,435
Cash and restricted cash—beginning of period (Note 2)	125,606	186,860	51,425
Cash and restricted cash—end of period (Note 2)	184,006	125,606	$ 186,860
Parent Company
Cash flows from operating activities:
Net income (loss)	62,817
Provisions for deferred income taxes	(5,814)
Gain (loss) on sale of assets	539
Equity in Undistributed (earnings) losses of subs	(26,813)
Net change in other liabilities	(40,414)
Net change in other asset	(10,759)
Other, net	7,570
Net cash used in operating activities	(12,874)
Cash flows from investing activities:
Payments for investments in and advances to subsidiaries	(96,265)
Outlays for business acquisitions	(21,322)
Other, net	14
Net cash used in investing activities	(117,573)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	90,000
Proceeds from issuance of preferred stock	19,493
Dividends paid	(14,147)
Other, net	(2,826)
Net cash provided by financing activities	92,520
Net (decrease) increase in cash and restricted cash	(37,927)
Cash and restricted cash—beginning of period (Note 2)	51,798
Cash and restricted cash—end of period (Note 2)	$ 13,871	$ 51,798

DEPOSITS - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deposit Liability [Line Items]
Aggregate amount of deposit accounts that exceeded the FDIC limit	$ 66,511	$ 0
Certificates of Deposit
Deposit Liability [Line Items]
Aggregate amount of deposit accounts that exceeded the FDIC limit	$ 20,100

SERVICING ASSETS - Fair Value and Valuation Assumptions (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	$ 39,725	$ 38,291	$ 36,238	$ 33,679	$ 30,268
Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	29,336				30,268
Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	$ 10,389				$ 0
Weighted Average \| Discount factor \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350				0.1650
Weighted Average \| Discount factor \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350				0
Weighted Average \| Cumulative prepayment rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250				0.2500
Weighted Average \| Cumulative prepayment rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2976				0
Weighted Average \| Average cumulative default rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1900				0.2500
Weighted Average \| Average cumulative default rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1914				0
Minimum \| Discount factor \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350				0.1650
Minimum \| Discount factor \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350				0
Minimum \| Cumulative prepayment rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250				0.2500
Minimum \| Cumulative prepayment rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250				0
Minimum \| Average cumulative default rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1900				0.2500
Minimum \| Average cumulative default rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1900				0
Maximum \| Discount factor \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350				0.1650
Maximum \| Discount factor \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350				0
Maximum \| Cumulative prepayment rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250				0.2500
Maximum \| Cumulative prepayment rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.7500				0
Maximum \| Average cumulative default rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1900				0.2500
Maximum \| Average cumulative default rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2000				0

LEASES - Operating Lease Liability Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2024	$ 2,761
2025	2,469
2026	1,842
2027	430
2028	0
Thereafter	0
Total	7,502
Less: Imputed interest	(550)
Present value of future minimum lease payments	$ 6,952	$ 7,973

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 14—COMMITMENTS AND CONTINGENCIES:

Operating and Employment Commitments

The Company leases office space and other office equipment in several states under operating lease agreements which expire at various dates through 2027. Those office space leases which are for more than one year generally contain scheduled rent increases or escalation clauses. In addition, during 2023, the Company entered into one-year employment agreements with its named executive officers.

The following summarizes the Company’s obligations and commitments, as of December 31, 2023 for future minimum cash payments required under operating lease and employment agreements:


Year	Operating Leases		Employment Agreements1		Total
2024	$	2,761	$	525	$	3,286
2025	2,469		—		2,469
2026	1,842		—		1,842
2027	430		—		430
2028	—		—		—
Thereafter	—		—		—
Total	$	7,502	$	525	$	8,027

(1) Employment agreements with certain of the Company’s named executive officers

Legal Matters

The Company and its subsidiaries are routinely subject to actual or threatened legal proceedings, including litigation and regulatory matters, arising in the ordinary course of business. Litigation matters range from individual actions involving a single plaintiff to class action lawsuits and can involve claims for substantial or indeterminate alleged damages or for injunctive or other relief. Regulatory investigations and enforcement matters may involve formal or informal proceedings and other inquiries initiated by various governmental agencies, law enforcement authorities, and self-regulatory organizations, and can result in fines, penalties, restitution, changes to the Company’s business practices, and other related costs, including reputational damage. At any given time, these legal proceedings are at varying stages of adjudication, arbitration, or investigation, and may relate to a variety of topics.

Assessment of exposure that could result from legal proceedings is complex because these proceedings often involve inherently unpredictable factors, including, but not limited to, the following: whether the proceeding is in early stages; whether damages or the amount of potential fines, penalties, and restitution are unspecified, unsupported, or uncertain; whether there is a potential for punitive or other pecuniary damages; whether the matter involves legal uncertainties, including novel issues of law; whether the matter involves multiple parties and/or jurisdictions; whether discovery or other investigation has begun or is not complete; whether material facts may be disputed or unsubstantiated; whether meaningful settlement discussions have commenced; and whether the matter involves class allegations. As a result of these complexities, the Company may be unable to develop an estimate or range of loss.

The Company evaluates legal proceedings based on information currently available, including advice of counsel. The Company establishes accruals for those matters, pursuant to ASC 450, when a loss is considered probable and the related amount is reasonably estimable. While the final outcomes of legal proceedings are inherently unpredictable, management is currently of the opinion that the outcomes of pending and threatened matters will not have a material effect on the Company’s business, consolidated financial position, results of operations or cash flows as a whole. As of December 31, 2023, the Company had accrued an immaterial reserve that we believe is appropriate to cover potential settlements.

As available information changes, the matters for which the Company is able to estimate, as well as the estimates themselves, will be adjusted accordingly. The Company’s estimates are subject to significant judgment and uncertainties, and the matters underlying the estimates will change from time to time. In the event of unexpected future developments, it is possible that an adverse outcome in any such matter could be material to the Company’s business, consolidated financial position, results of operations, or cash flows as a whole for any particular reporting period of occurrence.

In addition. as a result of a litigation brought by the Federal Trade Commission (the “FTC”) in October 2012, NMS voluntarily entered into, and continues to operate under, a permanent injunction with respect to certain of its business practices.

Unfunded Commitments

At December 31, 2023, the Company had $125.4 million of unfunded commitments consisting of $20.4 million in connection with its SBA 7(a) loans, $81.0 million in connection with its SBA 504 loans, $13.1 million in connection with its alternative lending program loans, and $10.9 million relating to commercial and industrial loans. The Company anticipates these commitments will be funded from the same sources it used to fund its other loan commitments.

LOANS - Investment Portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	$ 482,563	$ 532,793
Fair Value	469,801	505,268
Food Services and Drinking Places
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	43,779	47,012
Fair Value	43,955	47,198
Specialty Trade Contractors
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	40,193	42,082
Fair Value	35,451	38,059
Professional, Scientific, and Technical Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	36,248	39,910
Fair Value	35,377	38,086
Ambulatory Health Care Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	27,291	27,275
Fair Value	26,633	25,151
Merchant Wholesalers, Durable Goods
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	21,873	22,164
Fair Value	21,152	22,004
Administrative and Support Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	21,319	22,352
Fair Value	19,521	20,827
Amusement, Gambling, and Recreation Industries
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	21,289	23,812
Fair Value	22,839	24,928
Repair and Maintenance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	15,886	16,993
Fair Value	17,005	17,165
Merchant Wholesalers, Nondurable Goods
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	15,623	16,183
Fair Value	15,573	15,312
Truck Transportation
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	15,590	23,673
Fair Value	12,113	18,071
Personal and Laundry Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	12,867	12,949
Fair Value	13,584	13,333
Fabricated Metal Product Manufacturing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	12,439	13,483
Fair Value	13,205	14,032
Food Manufacturing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	10,233	10,756
Fair Value	8,714	8,873
Construction of Buildings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	9,868	11,252
Fair Value	9,890	10,194
Accommodation
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	9,259	11,476
Fair Value	10,162	10,428
Motor Vehicle and Parts Dealers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	9,046	10,071
Fair Value	9,382	9,536
Social Assistance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	8,857	9,150
Fair Value	9,721	9,857
Support Activities for Mining
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	8,455	10,426
Fair Value	7,754	8,615
Transportation Equipment Manufacturing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	7,687	8,272
Fair Value	7,999	8,445
Building Material and Garden Equipment and Supplies Dealers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	7,384	8,098
Fair Value	6,781	7,689
Food and Beverage Stores
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	7,026	5,711
Fair Value	7,306	5,857
Rental and Leasing Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	6,764	7,417
Fair Value	7,178	7,647
Nursing and Residential Care Facilities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	6,182	8,187
Fair Value	6,709	8,697
Educational Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	5,368	5,838
Fair Value	5,636	6,133
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	102,037	118,251
Fair Value	$ 96,161	$ 109,131

STOCK BASED COMPENSATION - Restricted Stock Activity (Details) - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
2015 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted (in shares)	0
Restricted Stock \| 2023 and 2015 Stock Incentive Plan \| Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period	1 year
Restricted Stock \| 2023 and 2015 Stock Incentive Plan \| Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period	3 years
Restricted Stock \| 2015 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized (in shares)	1,500,000
Net restricted stock (granted)/forfeited (in shares)	28,000	(251,000)	(215,000)	(223,000)
Shares available for issuance (in shares)	(661,000)
Restricted Stock \| 2023 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized (in shares)	3,000,000.0
Net restricted stock (granted)/forfeited (in shares)	(82,000)	0	0	0
Shares available for issuance (in shares)	(82,000)
Vesting period	1 year

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	Dec. 31, 2023	Dec. 31, 2022
Weighted Average Interest Rate	7.04%	6.11%
2025 6.85% Notes \| Medium-term Notes
Weighted Average Interest Rate	6.85%	6.85%
2025 5.00% Notes \| Medium-term Notes
Weighted Average Interest Rate	5.00%	5.00%
2025 8.125% Notes \| Medium-term Notes
Weighted Average Interest Rate	8.125%	0.00%
2028 8.00% Notes \| Medium-term Notes
Weighted Average Interest Rate	8.00%	0.00%

INVESTMENTS - Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Amortized Cost
Maturing within 1 year	$ 32,372	$ 0
Total available for sale securities	32,372	0
Fair Value
Maturing within 1 year	32,171	0
Total available for sale securities	$ 32,171	$ 0

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Reconciliation of cash

The following table provides a reconciliation of cash, restricted cash, and interest bearing deposits in banks as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
Cash and due from banks	$	15,398	$	53,692
Restricted cash	30,919		71,914
Interest bearing deposits in banks	137,689		—
Cash and restricted cash	$	184,006	$	125,606

Reconciliation of restricted cash

The following table provides a reconciliation of cash, restricted cash, and interest bearing deposits in banks as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
Cash and due from banks	$	15,398	$	53,692
Restricted cash	30,919		71,914
Interest bearing deposits in banks	137,689		—
Cash and restricted cash	$	184,006	$	125,606

GOODWILL AND INTANGIBLE ASSETS - Future Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 655
2025	622
2026	601
2027	580
2028	560
Thereafter	1,217
Total	$ 4,235	$ 0

SHAREHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Schedule of shares sold

The following table summarizes the total shares sold and net proceeds received under the 2020 ATM Equity Distribution Agreement:


	Year Ended December 31, 2023		Year Ended December 31, 2022		Year Ended December 31, 2021
Shares sold	—		107		1,940
Net weighted average price per share	$	—	$	19.12	$	25.91
Net proceeds	$	—	$	2,054	$	50,261

Distribution of assets, liabilities and stockholders' equity

The following table summarizes the Company’s dividend declarations and distributions during the years ended December 31, 2023 and 2022:


Date Declared	Record Date	Payment Date	Amount Per Share		Cash Distribution		DRIP Shares Issued	DRIP Shares Value
Year ended December 31, 2023
February 27, 2023	April 4, 2023	April 14, 2023	$	0.18	$	4,291	6	$	72
June 27, 2023	July 10, 2023	July 21, 2023	$	0.18	$	4,293	4	$	73
September 27, 2023	October 10, 2023	October 20, 2023	$	0.18	$	4,293	6	$	71
December 11, 2023	December 29, 2023	January 12, 2024	$	0.18	$	4,371	—	$	—

Year ended December 31, 2022
December 20, 2021	March 21, 2022	March 31, 2022	$	0.65	$	15,361	9	$	225
April 20, 2022	June 20, 2022	June 30, 2022	$	0.75	$	17,634	21	$	374
August 30, 2022	September 20, 2022	September 30, 2022	$	0.65	$	15,325	21	$	323
November 17, 2022	December 20, 2022	December 30, 2022	$	0.70	$	16,224	45	$	692

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The following table summarizes changes in the carrying amount of goodwill:


	December 31, 2023		December 31, 2022
Banking	$	271	$	—
Payments	13,814		$	—
Technology	11,800		$	—
Total goodwill	$	25,885	$	—

Schedule of intangible assets

The following table summarizes intangible assets:


	At December 31, 2023						At December 31, 2022
	Gross carrying Amount		Accumulated Amortization		Net Carrying amount		Gross carrying Amount		Accumulated Amortization		Net Carrying amount
Core Deposits	$	1,040	$	(197)	$	843	$	—	$	—	$	—
Payments Customer Lists	8,575		(8,562)		13		—		—		—
Technology Customer Lists	6,525		(3,146)		3,379		—		—		—
Total intangible assets	$	16,140	$	(11,905)	$	4,235	$	—	$	—	$	—

Intangible asset amortization schedule

The remaining estimated aggregate future amortization expense for intangible assets as of December 31, 2023 is as follows:


	Amortization Expense
2024	$	655
2025	622
2026	601
2027	580
2028	560
Thereafter	1,217
Total	$	4,235

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

STOCK BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of restricted stock issuances

The following table summarizes the restricted stock issuances under the 2015 and 2023 Stock Incentive Plans, net of shares forfeited, if any:


	2023 Plan2	2015 Plan
Restricted Stock authorized under the plan1	3.0 million	1.5 million
Net restricted stock (granted)/forfeited during:
Year ended December 31, 2020 and prior	—	(223)
Year ended December 31, 2021	—	(215)
Year ended December 31, 2022	—	(251)
Year ended December 31, 2023	(82)	28
Total net restricted stock (granted)/forfeited	(82)	(661)

(1) No stock options were granted under the 2015 or 2023 Stock Incentive Plan.

(2) The 2023 Stock Incentive Plan provides for an initial share reserve of up to 3.0 million shares of Common Stock.

Awards of restricted stock granted under the 2015 and 2023 Stock Incentive Plans generally vest over a one- to three-year period from the grant date; awards of restricted stock granted under the 2023 Stock Incentive Plan to non-employee directors generally vest over a one-year period. The fair value is expensed over the service period, starting on the grant date.

The following table summarizes the Company’s ESPP activity during the year ended December 31, 2023:

Year Ended December 31, 2023

Offering Period 1

Commencement date

10/1/2023

End date

12/15/2023

Shares purchased

Weighted average share price

13.05

Total purchased

Investment company, changes in net assets

During the years ended December 31, 2023 and 2022, additional shares were issued related to dividends on unvested shares of restricted stock granted as follows:

Year Ended December 31, 2023

Year Ended December 31, 2022

# of Shares

$ of Shares

# of Shares

$ of Shares

Dividends on Unvested Shares of Restricted Stock Grants

$263

$646

DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

NOTE 13—DERIVATIVE INSTRUMENTS:

The Company historically uses derivative instruments primarily to economically manage the fair value variability of certain fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. The following is a breakdown of the derivatives outstanding as of December 31, 2023 and December 31, 2022:


	December 31, 2023							December 31, 2022
			Fair Value				Remaining			Fair Value				Remaining
Contract Type	Notional1		Asset		Liability2		Maturity (years)	Notional		Asset		Liability		Maturity (years)
5-year Treasury Futures	$	(27,869)	$	—	$	630	0.25 years	$	—	$	—	$	—	—

(1) Shown as a negative number when the position is sold short.

(2) Shown in Accounts Payable, Accrued Expenses, and Other Liabilities in the accompanying consolidated balance sheets.

The following table indicates the net realized gains (losses) and unrealized appreciation (depreciation) on derivatives as included in Other Noninterest Income in the consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021:


	Year Ended
		December 31, 2023	December 31, 2022				December 31, 2021
Contract Type			Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)		Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)		Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)
5-year Treasury Futures			$	(699)	$	834	$	183	$	445	$	(183)	$	590

Collateral posted with our futures counterparty is segregated in the Company’s books and records. Historically, the Company’s counterparty has held cash margin as collateral for derivatives, which is included in restricted cash in the consolidated balance sheets. Interest rate futures are centrally cleared by the Chicago Mercantile Exchange (“CME”) through a futures commission merchant. The Company is required to post initial margin and daily variation margin for interest rate futures that are centrally cleared by CME. CME determines the fair value of our centrally cleared futures, including daily variation margin. Variation margin pledged on the Company’s centrally cleared interest rate futures is settled against the realized results of these futures.

INCOME TAXES - Income tax reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Tax on income computed at statutory federal income tax rate						$ 9,528
State income tax, net of federal tax effect						911
Non-deductible expenses						788
Realization of net operating loss carryforwards						(7,430)
DTA realization due to change in taxpayer status						(5,550)
Other, net						(203)
Income tax expense (benefit)	$ 3,416	$ 2,595	$ (11,952)	$ (9,357)	$ (5,941)	$ (1,956)	$ 6,464	$ 1,327
Effective tax rate						(4.31%)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

LOANS - Held-for-Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	$ 118,867	$ 19,171
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	55,829	0
Financing receivable, held-for-sale, deferred fees and costs	0	0
Financing receivable, held-for-sale, lower of cost or market, deferred fees and costs	778	0
Loans held for sale, at fair value	118,867	19,171
Loans held for sale, at LCM	56,607	0
SBA 504 First Lien
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	66,387	0
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	38,787	0
SBA 504 Second Lien
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	20,757	0
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	5,741	0
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	262	287
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	64	0
SBA 7(a) Partials
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	104	18,884
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	11,237	0
ALP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	31,357	0
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	$ 0	$ 0

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) $ in Millions	Jan. 06, 2023 USD ($) subsidiary	Apr. 13, 2023 USD ($)
Business Acquisition [Line Items]
Funded account		$ 10.0
NBNYC
Business Acquisition [Line Items]
Acquisition consideration	$ 20.0
Contributions to subsidiary	$ 31.0
Number of subsidiaries \| subsidiary	2
Divest or termination period	2 years
Divest or termination period, extension	2 years

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($)	Total	As Reported	Adjustment	Controlled Investments Adjustment	Common stock	Common stock As Reported	Common stock Adjustment	Preferred stock	Preferred stock As Reported	Preferred stock Controlled Investments Adjustment	Additional paid-in capital	Additional paid-in capital As Reported	Additional paid-in capital Adjustment	Additional paid-in capital Controlled Investments Adjustment	Accumulated other comprehensive income	Accumulated other comprehensive income As Reported	Accumulated undistributed earnings	Accumulated undistributed earnings As Reported	Accumulated undistributed earnings Adjustment	Retained earnings	Retained earnings As Reported	Retained earnings Controlled Investments Adjustment
Beginning balance (in shares) at Dec. 31, 2021					24,159,000
Beginning balance at Dec. 31, 2021	$ 403,887,000				$ 483,000						$ 367,663,000						$ 35,741,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
DRIP shares issued (in shares)					95,000
DRIP shares issued	1,614,000				$ 3,000						1,611,000
Stock-based compensation expense, net of forfeitures	2,511,000										2,511,000
Dividends declared related to RSA (in shares)					0
Dividends declared related to RSA, net of accrued dividends forfeited	0										646,000						(646,000)
Purchase of vested stock for employee payroll tax withholding (in shares)					(38,000)
Purchase of vested stock for employee payroll tax withholding	$ (826,000)										(826,000)
Restricted stock awards (in shares)	286,000
Restricted stock awards, net of forfeitures	$ 0				$ 4,000						(4,000)
Issuance of stock (in shares)					107,000
Issuance of stock	2,019,000				$ 2,000						2,017,000
Dividends declared common shares	(66,158,000)																(66,158,000)
RIC tax reclassification	0										(19,375,000)				$ 19,375,000
Dividends declared preferred shares	0
Other comprehensive loss, net of tax	0
Net Investment Income	(6,476,000)																(6,476,000)
Net realized gain on investments	57,346,000																57,346,000
Net unrealized depreciation on investments	$ (18,559,000)																(18,559,000)
Ending balance (in shares) at Dec. 31, 2022	24,609,000				24,609,000	24,609,000
Ending balance at Dec. 31, 2022	$ 375,358,000	$ 375,358,000			$ 492,000	$ 492,000			$ 0		354,243,000	$ 354,243,000				$ 0	20,623,000	$ 20,623,000			$ 0
Ending balance, preferred stock (in shares) at Dec. 31, 2022									0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in presentation			$ 0										$ 20,623,000						$ (20,623,000)
Removal of fair value adjustments			(138,043,000)										(138,043,000)
Consolidation of controlled investments				$ (57,859,000)						$ 245,000				$ (57,961,000)								$ (143,000)
Reassessment of deferred tax assets and liabilities			19,266,000										19,266,000
DRIP shares issued (in shares)							16,000
DRIP shares issued			$ 216,000										$ 216,000
Stock-based compensation expense, net of forfeitures	2,828,000										2,828,000
Dividends declared related to RSA (in shares)					16,000
Dividends declared related to RSA, net of accrued dividends forfeited	0										218,000									$ (218,000)
Purchase of vested stock for employee payroll tax withholding (in shares)					(17,000)
Purchase of vested stock for employee payroll tax withholding	(534,000)				$ (1,000)						(533,000)
Restricted stock awards (in shares)					52,000
Restricted stock awards, net of forfeitures	1,000				$ 1,000
ESPP issuances (in shares)					4,000
ESPP issuances	56,000										56,000
Issuance of stock (in shares)								20,000
Issuance of stock	20,000,000							$ 20,000,000
Preferred stock issuance costs	(507,000)							(507,000)
Dividends declared common shares	(17,463,000)																			(17,463,000)
Dividends declared preferred shares	(1,454,000)																			(1,454,000)
Net income (loss)	47,329,000																			47,329,000
Other comprehensive loss, net of tax	$ (148,000)														(148,000)
Ending balance (in shares) at Dec. 31, 2023	24,680,000				24,680,000
Ending balance at Dec. 31, 2023	$ 249,046,000				$ 492,000			$ 19,738,000			$ 200,913,000				$ (148,000)		$ 0			$ 28,051,000
Ending balance, preferred stock (in shares) at Dec. 31, 2023	20,000							20,000

NEWTEKONE, INC. - PARENT COMPANY ONLY - Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Loans and lease financing receivable	$ 323,731	$ 273,378	$ 213,795	$ 164,648	$ 0
Other assets	56,102	49,848	48,211	51,479	28,506
Total assets	1,429,513	1,393,495	1,451,021	1,259,799	998,902
LIABILITIES AND SHAREHOLDERS’ EQUITY
Total liabilities	1,180,467	1,151,293	1,215,572	1,027,213	623,544
Preferred stock	19,738
Common stock	492				492
Additional paid-in capital	200,913	199,955	199,358	198,560	354,243
Retained earnings	28,051	22,202	16,065	13,879	20,623
Total shareholders’ equity	249,046	242,202	235,449	232,586	375,358	$ 403,887
Total liabilities and shareholders' equity	1,429,513	$ 1,393,495	$ 1,451,021	$ 1,259,799	$ 998,902
Parent Company
ASSETS
Cash and balances due from depository institutions:	13,871
Loans and lease financing receivable	4,786
Investments	392,519
Premises and fixed assets (including capitalized leases)	64
Other assets	20,159
Total assets	431,399
LIABILITIES AND SHAREHOLDERS’ EQUITY
Borrowings with a remaining maturity of one year or less:	38,124
Other borrowed money with a remaining maturity of more than one year	253,888
Other liabilities	59,495
Total liabilities	351,507
Preferred stock	19,493
Common stock	490
Additional paid-in capital	314,187
Retained earnings	(254,278)
Total shareholders’ equity	79,892
Total liabilities and shareholders' equity	$ 431,399

BORROWINGS - Securitization Trusts (Details) - USD ($) $ in Thousands	1 Months Ended				12 Months Ended
	Jun. 30, 2023	Sep. 30, 2022	Dec. 31, 2021	Oct. 31, 2019	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Mar. 31, 2023	Nov. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Assets	$ 1,451,021				$ 1,429,513	$ 998,902		$ 1,393,495	$ 1,259,799
Liabilities	1,215,572				1,180,467	623,544		$ 1,151,293	$ 1,027,213
Securitization Trusts
Debt Instrument [Line Items]
Assets					14,800	14,100
Liabilities					296,200	283,100
Securitization Trusts \| Secured Debt
Debt Instrument [Line Items]
Transfer amount	103,900	$ 116,200	$ 103,400	$ 118,900			$ 103,400			$ 108,600	$ 76,200
Loans		103,400	103,400	118,900	296,223	283,143	103,400			108,600	75,400
Interest expense					$ 23,500	$ 10,600	5,500
Securitization Trusts, Class A \| Secured Debt
Debt Instrument [Line Items]
Loans	$ 84,300	$ 95,400	$ 79,700	$ 93,500			79,700			82,900	58,100
Securitization Trusts, Class A \| Secured Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate, basis spread		2.97%
Securitization Trusts, Class A \| Secured Debt \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Interest rate, basis spread	3.24%		1.92%	1.83%
Securitization Trusts, Class B \| Secured Debt
Debt Instrument [Line Items]
Loans	$ 19,600	$ 20,800	$ 23,800	$ 25,400			$ 23,800			$ 25,700	$ 17,300
Securitization Trusts, Class B \| Secured Debt \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate, basis spread		2.97%
Securitization Trusts, Class B \| Secured Debt \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Interest rate, basis spread	3.24%		1.92%	1.83%

SERVICING ASSETS (Tables)

12 Months Ended

Dec. 31, 2023

Transfers and Servicing [Abstract]

Fair value and valuation assumption

The following tables summarizes the fair value and valuation assumptions related to servicing assets at December 31, 2023 and December 31, 2022:


	December 31, 2023								December 31, 2022
			Weighted		Range						Weighted		Range
Unobservable Input	Amount		Average		Minimum		Maximum		Amount		Average		Minimum		Maximum

Servicing Assets at FV:	$	29,336							$	30,268
Discount factor1			13.50	%	13.50	%	13.50	%			16.50	%	16.50	%	16.50	%
Cumulative prepayment rate			22.50	%	22.50	%	22.50	%			25.00	%	25.00	%	25.00	%
Average cumulative default rate			19.00	%	19.00	%	19.00	%			25.00	%	25.00	%	25.00	%

Servicing Assets at LCM:	10,389								—
Discount factor1			13.50	%	13.50	%	13.50	%			—	%	—	%	—	%
Cumulative prepayment rate			29.76	%	22.50	%	75.00	%			—	%	—	%	—	%
Average cumulative default rate			19.14	%	19.00	%	20.00	%			—	%	—	%	—	%

Total	$	39,725							$	30,268

(1) Determined based on risk spreads and observable secondary market transactions.


	Fair Value as of			Weighted		Range
	December 31, 2023		Unobservable Input	Average1		Minimum		Maximum
Assets:
Held for investment, at fair value - accrual loans	$	421,627	Market yields	7.75	%	7.75	%	7.75	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Held for investment, at fair value - non-accrual loans	$	48,174	Market yields	7.39	%	7.39	%	7.39	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Held for sale, at fair value	$	118,867	Market yields	6.85	%	6.50	%	7.75	%
			Cumulative prepayment rate	61.03	%	55.60	%	75.00	%
			Average cumulative default rate	20.00	%	20.00	%	20.00	%
Joint Ventures	$	40,859	Market yields	8.00	%	8.00	%	8.00	%
			Cost of equity	12.00	%	10.00	%	14.00	%
			Weighted average cost of capital	8.50	%	7.50	%	9.50	%
Non-control equity investments	$	368	Market yields	10.00	%	8.00	%	12.00	%
	$	360	Cost basis	N/A		N/A		N/A
Servicing assets1	$	29,336	Market yields	13.50	%	13.50	%	13.50	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Other real estate owned	$	1,110	Appraised value	N/A		N/A		N/A

Liabilities:
Equity warrants	$	141	Expected volatility	43.00	%	43.00	%	43.00	%
			Dividend yield	5.20	%	5.20	%	5.20	%
			Risk free rate	3.88	%	3.88	%	3.88	%

(1) $29.3 million of servicing assets at held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.


	Fair Value as of			Weighted		Range
	December 31, 2022		Unobservable Input	Average1		Minimum		Maximum
Assets:
SBA unguaranteed non-affiliate investments - accrual loans	$	470,835	Market yields	7.90	%	7.90	%	7.90	%
			Cumulative prepayment rate	25.00	%	25.00	%	25.00	%
			Average cumulative default rate	25.00	%	25.00	%	25.00	%
SBA unguaranteed non-affiliate investments - non-accrual loans	$	34,433	Market yields	8.87	%	8.87	%	8.87	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Controlled equity investments1	$	241,113	EBITDA multiples-TTM2	8.00x		7.50x		8.50x
			EBITDA multiples-NTM2	6.90x		6.00x		7.50x
			Revenue multiples2	2.46x		0.80x		3.20x
			Book value multiples2	1.00x		0.80x		1.20x
			Weighted average cost of capital2	13.20	%	11.50	%	23.60	%
Controlled debt investments	$	18,104	Market yields	10.00	%	10.00	%	10.00	%
Non-control equity investments	$	1,000	Market yields	10.00	%	8.00	%	12.00	%
	$	360	Recent transaction	N/A		N/A		N/A
Servicing assets	$	30,268	Market yields	16.50	%	16.50	%	16.50	%
			Cumulative prepayment rate	25.00	%	25.00	%	25.00	%
			Average cumulative default rate	25.00	%	25.00	%	25.00	%
Other real estate owned	$	3,529	Appraised value	N/A		N/A		N/A

(1) Weighted by relative fair value.

LOANS - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 793,532
SBA Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	163,918
Year Two	0
Year Three	0
Year Four	0
Year Five	0
Prior	0
Total	163,918
SBA Cost \| Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	161,263
Year Two	0
Year Three	0
Year Four	0
Year Five	0
Prior	0
Total	161,263
SBA Cost \| Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	2,655
Year Two	0
Year Three	0
Year Four	0
Year Five	0
Prior	0
Total	2,655
SBA Cost \| Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0
Year Two	0
Year Three	0
Year Four	0
Year Five	0
Prior	0
Total	0
SBA Cost \| Risk Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0
Year Two	0
Year Three	0
Year Four	0
Year Five	0
Prior	0
Total	0
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	34,638	$ 172,646
Year Two	161,046	69,746
Year Three	59,828	34,711
Year Four	29,149	74,963
Year Five	63,955	62,148
Prior	121,185	91,054
Total	469,801	505,268
SBA 7(a) \| Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	34,289	171,948
Year Two	151,929	66,113
Year Three	53,998	34,116
Year Four	27,870	69,563
Year Five	52,175	55,376
Prior	94,751	70,669
Total	415,012	467,785
SBA 7(a) \| Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	349	698
Year Two	8,968	3,633
Year Three	5,813	595
Year Four	1,257	5,400
Year Five	11,764	6,772
Prior	25,727	20,273
Total	53,878	37,371
SBA 7(a) \| Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	112
Total	0	$ 112
SBA 7(a) \| Risk Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0
Year Two	149
Year Three	17
Year Four	22
Year Five	16
Prior	707
Total	911
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	53,567
Year Two	28,224
Year Three	15,538
Year Four	910
Year Five	11,172
Prior	54,392
Total	163,803
Commercial Real Estate \| Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	53,567
Year Two	28,224
Year Three	14,590
Year Four	0
Year Five	8,888
Prior	49,771
Total	155,040
Commercial Real Estate \| Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0
Year Two	0
Year Three	948
Year Four	910
Year Five	2,284
Prior	4,621
Total	8,763
Commercial Real Estate \| Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0
Year Two	0
Year Three	0
Year Four	0
Year Five	0
Prior	0
Total	0
Commercial & Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	6,174
Year Two	0
Year Three	0
Year Four	0
Year Five	0
Prior	2,017
Total	8,191
Commercial & Industrial \| Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	6,174
Year Two	0
Year Three	0
Year Four	0
Year Five	0
Prior	2,017
Total	8,191
Commercial & Industrial \| Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0
Year Two	0
Year Three	0
Year Four	0
Year Five	0
Prior	0
Total	0
Commercial & Industrial \| Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0
Year Two	0
Year Three	0
Year Four	0
Year Five	0
Prior	0
Total	0
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	258,297
Year Two	189,270
Year Three	75,366
Year Four	30,059
Year Five	75,127
Prior	177,594
Total	$ 805,713

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
LEASES - Lease Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)	$ 2,693	$ 1,886	$ 1,555
Weighted-average remaining lease term - operating leases	2 years 10 months 17 days	4 years 4 months 28 days	5 years 3 months 18 days
Weighted-average discount rate - operating leases	5.50%	4.73%	4.55%
Total lease costs	$ 3,124	$ 1,000	$ 894

BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Schedule of restricted stock issuances

The following table summarizes the restricted stock issuances under the 2015 and 2023 Stock Incentive Plans, net of shares forfeited, if any:


	2023 Plan2	2015 Plan
Restricted Stock authorized under the plan1	3.0 million	1.5 million
Net restricted stock (granted)/forfeited during:
Year ended December 31, 2020 and prior	—	(223)
Year ended December 31, 2021	—	(215)
Year ended December 31, 2022	—	(251)
Year ended December 31, 2023	(82)	28
Total net restricted stock (granted)/forfeited	(82)	(661)

(1) No stock options were granted under the 2015 or 2023 Stock Incentive Plan.

(2) The 2023 Stock Incentive Plan provides for an initial share reserve of up to 3.0 million shares of Common Stock.

The following table summarizes the Company’s ESPP activity during the year ended December 31, 2023:

Year Ended December 31, 2023

Offering Period 1

Commencement date

10/1/2023

End date

12/15/2023

Shares purchased

Weighted average share price

13.05

Total purchased

LOANS - Aging Status (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	$ 336,305				$ 0
Total Loans Accounted for Under the Fair Value Option	469,801				505,268
Total	793,532
Deferred fees and costs	393				0
Allowance for credit losses	(12,574)				0
Loans held for investment, at amortized cost, net	323,731	$ 273,378	$ 213,795	$ 164,648	0
SBA Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	163,918
Total	163,918
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	163,803				0
Total	163,803
Allowance for credit losses	(1,408)				0
Commercial & Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	8,191				0
Total	8,191
Allowance for credit losses	(314)				0
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	335,912				0
Total	335,912
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	163,918				0
Total	469,801				505,268
Allowance for credit losses	(10,852)				0
Performing \| 30-59 Days Past Due and Accruing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	24,965
Total Loans Accounted for Under the Fair Value Option	20,380				18,681
Performing \| 30-59 Days Past Due and Accruing \| SBA Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	3,637
Performing \| 30-59 Days Past Due and Accruing \| Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	948
Performing \| 30-59 Days Past Due and Accruing \| Commercial & Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0
Performing \| 30-59 Days Past Due and Accruing \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	4,585
Performing \| 60-89 Days Past Due and Accruing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	16,386
Total Loans Accounted for Under the Fair Value Option	16,075				12,754
Performing \| 60-89 Days Past Due and Accruing \| SBA Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	311
Performing \| 60-89 Days Past Due and Accruing \| Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0
Performing \| 60-89 Days Past Due and Accruing \| Commercial & Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0
Performing \| 60-89 Days Past Due and Accruing \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	311
Performing \| 90 or more Days Past Due and Accruing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0
Total Loans Accounted for Under the Fair Value Option	0				0
Performing \| 90 or more Days Past Due and Accruing \| SBA Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0
Performing \| 90 or more Days Past Due and Accruing \| Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0
Performing \| 90 or more Days Past Due and Accruing \| Commercial & Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0
Performing \| 90 or more Days Past Due and Accruing \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0
Performing \| Total past Due and Non-accrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	94,898
Total Loans Accounted for Under the Fair Value Option	84,629				65,868
Performing \| Total past Due and Non-accrual \| SBA Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	4,700
Performing \| Total past Due and Non-accrual \| Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	5,569
Performing \| Total past Due and Non-accrual \| Commercial & Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0
Performing \| Total past Due and Non-accrual \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	10,269
Performing \| Current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	710,815
Total Loans Accounted for Under the Fair Value Option	385,172				439,400
Performing \| Current \| SBA Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	159,218
Performing \| Current \| Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	158,234
Performing \| Current \| Commercial & Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	8,191
Performing \| Current \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	325,643
Nonperforming
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	53,547
Total Loans Accounted for Under the Fair Value Option	48,174				$ 34,433
Nonperforming \| SBA Cost
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	752
Nonperforming \| Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	4,621
Nonperforming \| Commercial & Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	0
Nonperforming \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	$ 5,373

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of earnings per share


	December 31,
	2023		2022		2021
	Financial Holding Company1,2		Investment Company4		Investment Company4
Basic earnings per share:
Net income available to common shareholders	$	45,875	$	32,311	$	84,142
Weighted-average basic shares outstanding	24,263		24,198		22,795
Basic earnings per share	$	1.89	$	1.34	$	3.69
Diluted earnings per share:
Net income, for diluted earnings per share	$	45,875	$	32,311	$	84,142
Total weighted-average basic shares outstanding	24,263		24,198		22,795
Add effect of dilutive warrants and restricted stock awards3	85		—		—
Total weighted-average diluted shares outstanding	24,348		24,198		22,795
Diluted earnings per share	$	1.88	$	1.34	$	3.69
Anti-dilutive warrants and restricted stock awards	1,153		—		—

(1) For the years ended December 31, 2023, the convertible preferred stock was not included in the diluted share count because the result would have been anti-dilutive under the if-converted method.

(2) For the years ended December 31, 2023, the Warrants have an anti-dilutive impact on earnings per share.

(3) Incremental diluted shares from restricted stock awards under the treasury stock method.

(4) Per ASC 260-10-15-3, presentation of EPS was not required for investment companies that comply with the requirements of ASC 946, or in the financial statements of wholly-owned subsidiaries. EPS presentation disclosures are now required as the Company is no longer subject to FASB Topic 946 as a financial holding company.

LEASES - Narrative (Details)	Dec. 31, 2023
Leases [Abstract]
Remaining contractual term	3 years
Renewal term	10 years

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	12 Months Ended
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: The Company is a financial holding company that is a leading provider of business and financial solutions to SMBs and provides SMBs with the following Newtek® branded business and financial solutions: Newtek Bank, Newtek Lending, Newtek Payments, Newtek Insurance, Newtek Payroll and Newtek Technology. On January 6, 2023, the Company completed the Acquisition of NBNYC, a national bank regulated and supervised by the OCC, pursuant to which the Company acquired from NBNYC’s shareholders all of the issued and outstanding stock of NBNYC for $20 million, plus reimbursement of certain expenses. NBNYC has been renamed Newtek Bank, National Association and has become a wholly owned subsidiary of the Company. In connection with the completion of the Acquisition, the Company contributed to Newtek Bank $31 million of cash and two of the Company’s unconsolidated subsidiaries, NBL and SBL (NBL was subsequently merged into SBL). Upon the consummation of the Acquisition, Newtek Bank entered into an operating agreement with the OCC concerning certain matters including capital, liquidity and concentration limits, and memorializing the business plan submitted to the OCC. Included in the Operating Agreement were the contribution of two subsidiaries to Newtek Bank which also occurred on January 6, 2023: SBL and NBL (NBL was subsequently merged into SBL on May 3, 2023). In addition, on January 6, 2023, the Company filed with the SEC a Form N-54C, Notification of Withdrawal of Election to be Subject to the 1940 Act (“Withdrawal of Election”), and has ceased to be a BDC effective as of January 6, 2023. As a result of the Acquisition and the Withdrawal of Election, the Company’s accounting and financial reporting requirements changed in the following ways: 1.The Company no longer qualifies as a regulated investment company (RIC) for federal income tax purposes and no longer qualifies for accounting treatment as an investment company, and 2.The Company is now a financial holding company subject to the regulation and supervision of the Federal Reserve and the Federal Reserve Bank of Atlanta and also subject to the related FASB ASC Topics for financial holding companies and depository institutions. Following these changes, as of and for the year ended December 31, 2023 NewtekOne reports on a consolidated basis the financial condition and results of operations for the following consolidated subsidiaries: Newtek Bank; SBL; NSBF; NMS; Mobil Money; NBC; PMT; NIA; TAM; Holdco 6; NCL; EWS; and NTS. Our investment in POS is treated as a non-controlling interest and is included on our consolidated financial statements. In addition, as a result of commitments made to the Federal Reserve, the Company will divest or otherwise terminate the activities conducted by NTS, which includes SIDCO and EWS after a December 31, 2023 merger, within two years of becoming a financial holding company, subject to any extension of the two-year period. As of the date of this filing, the Company has concluded that the assets, liabilities and operations of NTS do not qualify for Discontinued Operations. Moreover, on April 13, 2023, the Company, NSBF and the SBA entered into an agreement in connection with NSBF’s and Newtek Bank’s participation in the SBA 7(a) loan program (the "Wind-down Agreement"). The Company’s business plan prepared in connection with the Acquisition provided for all SBA 7(a) loan originations to be transitioned to Newtek Bank and for NSBF to cease originations of SBA 7(a) loans. Pursuant to the Wind-down Agreement, NSBF has begun to wind-down its operations and NSBF’s SBA 7(a) pipeline of new loans was transitioned to Newtek Bank during the second quarter of 2023. During this wind-down process, NSBF will continue to own the SBA 7(a) loans and PPP Loans currently in its SBA loan portfolio to maturity, liquidation, charge-off or (subject to SBA’s prior written approval) sale or transfer. SBL will service and liquidate NSBF’s SBA loan portfolio, including processing forgiveness and loan reviews for PPP Loans, pursuant to an SBA approved lender service provider agreement. In addition, during the wind-down process, NSBF will be subject to minimum capital requirements established by the SBA, be required to continue to maintain certain amounts of restricted cash available to meet any obligations to the SBA, have restrictions on its ability to make dividends and distributions to the Company, and remain liable to the SBA for post-purchase denials and repairs on the guaranteed portions of SBA 7(a) loans originated and sold by NSBF. The Company has guaranteed NSBF’s obligations to the SBA and has funded a $10 million account at Newtek Bank to secure these potential obligations. As a result of the Acquisition and its effects as described above, comparisons to prior periods include adjustments made to reconcile prior investment company accounting to the current financial holding company accounting requirements. For example, the statement of changes in stockholders’ equity includes adjustments for changes in presentation between accumulated undistributed earnings and additional paid in capital, removal of fair value adjustments on entities that are now consolidating entities, and the reassessment of deferred tax assets and liabilities relating to the consolidation of the previous portfolio companies investments. The statement of cash flows includes an adjustment to the opening cash balance for the cash from the previously unconsolidated subsidiaries. The Company’s results of operations for the three and twelve months ended December 31, 2023 include the results of operations of Newtek Bank on and after January 6, 2023. Results for the period prior to January 6, 2023 do not include the results of operations of NBNYC. On January 17, 2023, the Company changed its name from Newtek Business Services Corp. to NewtekOne, Inc. Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data. Consolidation The consolidated financial statements include the accounts of NewtekOne, its subsidiaries and certain VIEs. Significant intercompany balances and transactions have been eliminated. The Company considers a voting rights entity to be a subsidiary and consolidates it if the Company has a controlling financial interest in the entity. VIEs are consolidated if NewtekOne has the power to direct the activities of the VIE that significantly impact financial performance and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE (i.e., NewtekOne is the primary beneficiary). The determination of whether the Company is the primary beneficiary of a VIE is reassessed on an ongoing basis. Investments in companies which are not VIEs but in which the Company has more than minor influence over the operating and financial policies, are accounted for using the equity method of accounting. Investments in VIEs, where NewtekOne is not the primary beneficiary of a VIE, are accounted for using either the equity method of accounting. The maximum potential exposure to losses relative to investments in VIEs is generally limited to the investment balance. Refer to NOTE 4—INVESTMENTS.

NEWTEKONE, INC. - PARENT COMPANY ONLY - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Condensed Income Statements, Captions [Line Items]
Interest income	$ 26,736	$ 22,553	$ 18,715	$ 41,268	$ 68,004	$ 94,373	$ 38,617	$ 78,966
Interest expense	18,659	16,880	14,132	31,012	49,671	67,739	26,325	20,515
Net interest income	8,077	5,673	4,583	10,256	18,333	26,634	12,292	58,451
Noninterest income
Dividends						1,757	24,657	9,896
All other operating income	21,897	24,550	29,280	53,830	75,727	23,762	34,221	10,295
Total noninterest income						176,772	92,878	89,310
Noninterest expense
Salaries and employee benefits	13,726	18,374	19,073	37,447	51,173	65,708	20,186	17,866
Other expenses						22,357	7,673	7,454
Total noninterest expense						146,329	66,395	62,292
Net income before taxes						45,373	38,775	85,469
Income tax benefit	3,416	2,595	(11,952)	(9,357)	(5,941)	(1,956)	6,464	1,327
Net income	$ 10,919	$ 7,011	$ 18,550	$ 25,561	$ 36,480	47,329	32,311	84,142
Net income available to common shareholders						45,875	$ 32,311	$ 84,142
Parent Company
Condensed Income Statements, Captions [Line Items]
Interest income						2,319
Interest expense						18,797
Net interest income						(16,478)
Noninterest income
Dividends						60,317
All other operating income						(2,345)
Total noninterest income						57,972
Noninterest expense
Salaries and employee benefits						9,365
Other expenses						10,962
Total noninterest expense						20,327
Net income before taxes						21,167
Income tax benefit						(14,837)
Net income						36,004
Equity in Undistributed (earnings) losses of subs						26,813
Net income available to common shareholders						$ 62,817

NEWTEKONE, INC. - PARENT COMPANY ONLY

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

NEWTEKONE, INC. - PARENT COMPANY ONLY

NOTE 25—NEWTEKONE, INC. - PARENT COMPANY ONLY:

The following balance sheets, statements of income and statements of cash flows are for NewtekOne, Inc. and should be read in conjunction with the consolidated financial statements and the notes thereto.

Statement of Financial Condition


	December 31, 2023
Assets
Cash and balances due from depository institutions:	$	13,871
Loans and lease financing receivable	4,786
Investments in and receivables due from subsidiaries and associated companies	392,519
Premises and fixed assets (including capitalized leases)	64
Other assets	20,159
Total assets	431,399

Liabilities and shareholders' equity
Borrowings with a remaining maturity of one year or less:	38,124
Other borrowed money with a remaining maturity of more than one year	253,888
Other liabilities	59,495
Total liabilities	351,507

Preferred stock	19,493
Common stock	490
Additional paid in capital	314,187
Retained earnings	(254,278)
Total shareholders’ equity	79,892
Total liabilities and shareholder's equity	$	431,399

Statement of Income


	For the year ended
	2023
Interest income	$	2,319
Interest expense	18,797
Net interest loss	(16,478)
Noninterest income:
Dividends	60,317
All other operating income	(2,345)
Total noninterest income	57,972
Noninterest expense:
Salaries and employee benefits	9,365
Other expenses	10,962
Total noninterest expense	20,327
Net Income before equity in undistributed income of subsidiaries	21,167
Income tax benefit	(14,837)
Income (loss) before undistributed income of subsidiaries	36,004
Equity in undistributed income (losses) of subsidiaries and associated companies:	26,813
Net income (loss)	$	62,817

Statement of Cash Flows


	For the year ended
	2023
Cash flows from operating activities:
Net income (loss)	$	62,817
Provisions for deferred income taxes	(5,814)
Gain (loss) on sale of assets	539
Equity in Undistributed (earnings) losses of subs	(26,813)
Net change in other liabilities	(40,414)
Net change in other asset	(10,759)
Other, net	7,570
Net cash provided (used by operating activities	(12,874)

Cash flow from investing activities
Payments for investments in and advances to subsidiaries	(96,265)
Outlays for business acquisitions	(21,322)
Other, net	14
Net cash provided (used) by investing activities	(117,573)

Cash flow from financing activities
Proceeds from issuance of long-term debt	90,000
Proceeds from issuance of preferred stock	19,493
Dividends paid	(14,147)
Other, net	(2,826)
Net cash provided (used) by financing activities	92,520

Net (decrease) increase in cash and restricted cash	(37,927)
Cash and restricted cash - beginning of period	51,798
Cash and restricted cash - end of period	$	13,871

Borrowings and Maturities

Refer to NOTE 12—BORROWINGS for a schedule of borrowings that includes the notes issued by the parent company. Refer to the Liquidity and Capital Resources section of the MD&A under the Contractual Obligations section for a schedule of maturities.

Guarantees

The Company is a guarantor on the SPV I Capital One Facility. Maximum borrowings under the SPV I Facility are $60.0 million. The lender’s commitments terminate in November 2024, with all amounts due under the SPV I Facility maturing in November 2025. At December 31, 2023, total principal owed by SPV I was $16.3 million. At December 31, 2023, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is a guarantor on the SPV II Deutsche Bank Facility. Maximum borrowings under the SPV II Deutsche Bank Facility are $50.0 million. The Deutsche Bank Facility matures in November 2024. At December 31, 2023, total principal owed by SPV II was $6.9 million. At December 31, 2023, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is a guarantor on the SPV III One Florida Bank Facility. Maximum borrowings under the SPV III One Florida

Bank Facility are $30.0 million. The One Florida Bank Facility matures in May 2025. At December 31, 2023, total principal owed by SPV III was $0.4 million. At December 31, 2023, the Company determined that it is not probable that payments would be required to be made under the guarantee. On April 27, 2023, the SPV III One Florida Bank Facility was amended to increase maximum borrowings under the line to $30.0 million.

The Company is a guarantor on the Webster Facility, a term loan facility between NMS with Webster Bank with an aggregate principal amount up to $54.9 million. The Webster Facility matures in November 2027. At December 31, 2023, total principal outstanding was $36.6 million. At December 31, 2023, the Company determined that it is not probable that payments would be required to be made under the guarantee.

The Company is a guarantor on certain of NSBF’s potential obligations to the SBA pursuant to the Wind-down Agreement. Specifically, pursuant to the Wind-down Agreement, the Company has guaranteed NSBF’s obligations to the SBA for post-purchase repairs or denials on the guaranteed portion of 7(a) Loans sold by NSBF on the secondary market or servicing/liquidation post-purchase repairs or denial, and has funded a $10.0 million restricted cash account at Newtek Bank to secure these potential obligations.

INCOME TAXES

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 21—INCOME TAXES:

The Company elected to be treated as a RIC under the Code beginning with the 2015 tax year and, through the year ended December 31, 2022, operated in a manner so as to continue to qualify for the tax treatment applicable to RICs. The Company filed its final RIC tax return for the year ended December 31, 2022. While the Company operated as a RIC, it was required to distribute substantially all of its respective net taxable income each tax year as dividends to its shareholders. Accordingly, for the period December 31, 2022, no provision for federal income tax was made in the financial statements. For 2023, the Company no longer qualifies as a RIC and instead will file a consolidated U.S. federal income tax return. Financial holding companies are subject to federal and state income taxes in essentially the same manner as other corporations.

One of the Company’s former consolidated holding companies is undergoing a NYS tax audit for the fiscal years ended December 31, 2020 and December 31, 2021.

Effective Tax Rate and Net Operating Losses

The effective tax rate was (4.31)% for the years ended December 31, 2023. The effective tax rate differs from the federal tax rate of 21% for the years ended December 31, 2023 due primarily to the recognition of subsidiary federal net operating losses (“NOLs”) expected to be realized in a federal consolidated return setting and other discrete items.

At December 31, 2022, the Company had NOLs in the amount of $35.4 million. Certain of these NOLs ($4.6 million) expire in 2029 through 2037 with the remainder NOLs ($30.8 million) having indefinite lives. The Company expects to apply $23.8 million of the total NOLs against 2023 taxable income and will carry forward the remaining balance of $11.6 million to apply against future taxable income. The Tax Cuts & Jobs Act of 2017 limits the amount of net operating loss utilized each year after December 31, 2020 to 80% of taxable income.

The Company’s and its subsidiaries’ federal income tax returns are generally open to review by the tax authorities for the tax years ended in 2019 and beyond. However, the Company’s NOLs continue to be subject to review by tax authorities in the period utilized notwithstanding origination in closed periods.

The Company does not have any material interest and penalties recorded in the income statement for the years ended December 31, 2023, 2022 and 2021.

The components of income tax expense for the year ended December 31, 2023, were as follows:


	2023
	Amount
Current income tax expense:
Federal	$	1,251
State	1,593
Total current expense	2,844
Deferred income tax expense:
Federal	(4,318)
State	(482)
Total deferred expense	(4,800)
Total income tax expense	$	(1,956)

Income taxes for financial reporting purposes differ from the amount computed by applying the statutory federal income tax rate of 21% as shown in the following table:


	2023
Tax on income computed at statutory federal income tax rate	$	9,528
Increase (decrease) in taxes resulting from:
State income tax, net of federal tax effect	911
Non-deductible expenses	788
Realization of net operating loss carryforwards	(7,430)
DTA realization due to change in taxpayer status	(5,550)
Other, net	(203)
Income tax expense	$	(1,956)
Effective tax rate	(4.31)		%

Significant components of the Company’s net deferred tax asset at December 31 are listed below:


	2023		2022
Deferred tax assets:
Allowance for Credit Losses	$	3,313	$	—
Lease Liabilities	1,832		—
Other	1,669		—
Purchase Accounting, net	331		—
Stock Compensation	396		—
Loans	2,677		—
Federal and state net operating losses, net of federal tax effect	2,428		—
Total deferred tax assets	12,646		—
Deferred tax liabilities:
Investments	650		19,194
Servicing Rights	2,737		—
Right of Use Assets	1,502		—
Goodwill and Intangible Assets	2,330		—
Other	197		—
Total deferred tax liabilities	7,416		19,194
Net deferred tax asset (liability)	$	5,230	$	(19,194)

The following table provides details of the expiration dates for Company’s net operating loss carryforwards at December 31, 2023:


Net operating losses - federal	December 31, 2023
Expiring:	Deferred Tax Asset Balance
Years ended 2029 - 2035	$	—
Years ended 2036 - 2043	—
Never	2,428
Total	$	2,428

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

BORROWINGS - Notes Payable Related Parties (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Nov. 30, 2018	Jun. 30, 2017	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2015
Related Party RLOC
Debt Instrument [Line Items]
Interest expense			$ 0	$ 500	$ 400
Notes payable - related parties \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 50,000		$ 50,000		$ 38,000
Interest rate, floor		0.50%
Stated rate		3.50%
Notes payable - related parties \| Line of Credit \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate, basis spread	2.50%	6.00%
Notes payable - related parties \| Line of Credit \| Prime Rate
Debt Instrument [Line Items]
Interest rate, basis spread	1.50%	5.00%

SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($)		12 Months Ended
SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($)	Feb. 03, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Nov. 17, 2023	Jul. 20, 2022
Subsidiary, Sale of Stock [Line Items]
Preferred stock, par value (in dollars per share)		$ 0.02
Issuance of Preferred stock		$ 20,000,000	$ 2,019,000
Warrants issued (in shares)	47,540
Price of warrant (in dollars per share)	$ 21.03468
Dividends to preferred shareholders		$ 1,454,000	$ 0	$ 0
Series A Convertible Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Issuance of stock (in shares)	20,000
Preferred stock, par value (in dollars per share)	$ 0.02
Issuance of Preferred stock	$ 20,000,000
Issuance price (in dollars per share)	$ 1,000
Convertible shares (in shares)	47.54053782
2020 ATM Equity Distribution
Subsidiary, Sale of Stock [Line Items]
Common stock authorized for sale (in shares)						6,400,000
2023 ATM Equity Distribution
Subsidiary, Sale of Stock [Line Items]
Common stock authorized for sale (in shares)					3,000,000

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of fair value, assets and liabilities measured on recurring basis


	Fair Value Measurements at December 31, 2023
	Total		Level 1		Level 2		Level 3
Assets:

Debt securities available-for-sale
U.S. Treasury notes	$	29,305	$	29,305	$	—	$	—
Government agency debentures	2,866		—		2,866		—
Loans held for sale, at fair value	118,867		—		—		118,867
Loans held for investment, at fair value	469,801		—		—		469,801
Other real estate owned 1	1,110		—		—		1,110
Non-controlled/affiliate investments	728		—		—		728
Servicing assets	29,336		—		—		29,336
Joint ventures	40,859		—		—		40,859
Total assets measured at fair value	$	692,872	$	29,305	$	2,866	$	660,701
Liabilities:
Equity warrants3	$	141	$	—	$	—	$	141
Derivative instruments2,3	630		—		630		—
Total liabilities measured at fair value	$	771	$	—	$	630	$	141

(1) Included in Other Assets on the Consolidated Statements of Financial Condition.

(2) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.

(3) Included in Other Liabilities on the Consolidated Statements of Financial Condition.


	Fair Value Measurements at December 31, 2022
	Total		Level 1		Level 2		Level 3
Assets:

Loans held for sale, at fair value	$	19,171	$	—	$	—	$	19,171
Loans held for investment, at fair value	505,268		—		—		505,268
Controlled investments	259,217		—		—		259,217
Other real estate owned1	3,529		—		—		3,529
Non-control investments	1,360		—		—		1,360
Servicing assets	30,268		—		—		30,268
Joint ventures2	23,022		—		—		—
Total assets	$	841,835	$	—	$	—	$	818,813

(1) Included in Other Assets on the Consolidated Statements of Financial Condition.

The following tables represents the changes in the investments, servicing assets and liabilities measured at fair value using Level 3 inputs for the years ended December 31, 2023 and 2022:


	Year Ended December 31, 2023
	Loans HFI, at FV		Loans HFS, at FV		Controlled Investments		Joint Ventures		Servicing Assets		Non-Control Investments		Warrant Liabilities2		Other Real Estate Owned1
Fair value, December 31, 2022	$	505,268	$	19,171	$	259,217	$	23,022	$	30,268	$	1,360	$	—	$	3,529
Additions/(removal) of entities consolidating after Conversion to BHC	—		69,745		(259,217)		—		—		—		—		—
Reclasses between loans at FV and LCM	5,879		(28,513)		—		—		—		—		—		—
Sales	(23,783)		(180,784)		—		—		—		—		—		(4,248)
Principal payments received	(77,966)		(6,233)		—		—		—		—		—		—
Foreclosed real estate acquired	(2,978)		—		—		—		—		—		—		2,978
SBA loans, funded	38,889		167,124		—		—		—		—		—		—
ALP loans, funded	—		69,835		—		—		—		—		—		—
Additions	—		—		—		—		2,617		—		311		—
Purchases and repurchases of loans	9,728		5,279		—		—		—		—		—		—
Capital contributions/(distributions)	—		—		—		14,550		—		(564)		—		—
Change in valuation due to:
Changes in valuation inputs or assumptions	13,515		3,931		—		3,287		1,847		(68)		(170)		—
Other factors	1,249		(688)		—		—		(5,396)		—		—		(1,149)
Fair value, December 31, 2023	$	469,801	$	118,867	$	—	$	40,859	$	29,336	$	728	$	141	$	1,110

(1) Included in Other Assets on the Consolidated Statements of Financial Condition.

(2) Included in Other Liabilities on the Consolidated Statements of Financial Condition.


	Year Ended December 31, 2022
	Loans HFI, at fair value		Loans HFS, at fair value		Controlled Investments		Servicing Assets		Non-Control Investments		Other Real Estate Owned1
Fair value, December 31, 2021	$	424,417	$	72,970	$	230,935	$	28,008	$	1,000	$	2,354
Net change in unrealized appreciation (depreciation) on investments	(19,972)		(6,532)		27,174		—		—		(402)
Change in net unrealized deprecation on servicing assets due to:
Changes in valuation inputs or assumptions	—		—		—		(2,129)		—		—
Other factors	—		—		—		(7,966)		—		—
Realized gain (loss)	(16,629)		61,176		—		—		—		(353)
SBA unguaranteed non-affiliate investments, funded	189,769		585,803		—		—		—		—
Foreclosed real estate acquired	(3,466)		—		—		—		—		3,466
Purchase of investments	—		—		47,046		—		360		—
Purchase of loans from SBA	2,404		—		—		—		—		—
Sale of investment	—		(691,219)		—		—		—		(1,536)
Return of investment	—		—		(38,968)		—		—		—
Principal payments received on debt investments	(71,255)		(3,027)		(6,970)		—		—		—
Additions to servicing assets	—		—		—		12,355		—		—
Fair value, December 31, 2022	$	505,268	$	19,171	$	259,217	$	30,268	$	1,360	$	3,529

(1) Included in Other Assets on the Consolidated Statements of Financial Condition.

The carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis are as follows:


	December 31, 2023
	Carrying Amount		Fair Value Amount by Level:						Total Fair Value
			Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	15,398	$	15,398	$	—	$	—	$	15,398
Restricted cash	30,919		30,919		—		—		30,919
Interest bearing deposits in banks	137,689		137,689		—		—		137,689
Debt securities available-for-sale, at fair value	32,171		29,305		2,866		—		32,171
Loans held for sale, at fair value	118,867		—		—		118,867		118,867
Loans held for sale, at LCM	56,607		—		—		56,733		56,733
Loans held for investment, at fair value	469,801		—		—		469,801		469,801
Total loans held for investment, at amortized cost, net of deferred fees and costs	336,305		—		—		337,133		337,133
Federal Home Loan Bank and Federal Reserve Bank stock	3,635		—		3,635		—		3,635
Joint ventures, at fair value	40,859		—		—		40,859		40,859
Non-control investments	728		—		—		728		728
Financial Liabilities:
Time deposits	167,041		—		168,542		—		168,542
Borrowings	644,122		—		187,555		454,239		641,794

	December 31, 2022
	Carrying Amount		Fair Value Amount by Level:						Total Fair Value
			Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	53,692	$	53,692	$	—	$	—	$	53,692
Restricted cash	71,914		71,914		—		—		71,914
Loans held for sale, at fair value	19,171		—		—		19,171		19,171
Loans held for investment, at fair value	505,268		—		—		505,268		505,268
Controlled investments	259,217		—		—		259,217		259,217
Non-control investments	1,360		—		—		1,360		1,360
Financial Liabilities:
Borrowings	539,326		—		152,162		388,226		540,388

Fair value and valuation assumption

The following tables summarizes the fair value and valuation assumptions related to servicing assets at December 31, 2023 and December 31, 2022:


	December 31, 2023								December 31, 2022
			Weighted		Range						Weighted		Range
Unobservable Input	Amount		Average		Minimum		Maximum		Amount		Average		Minimum		Maximum

Servicing Assets at FV:	$	29,336							$	30,268
Discount factor1			13.50	%	13.50	%	13.50	%			16.50	%	16.50	%	16.50	%
Cumulative prepayment rate			22.50	%	22.50	%	22.50	%			25.00	%	25.00	%	25.00	%
Average cumulative default rate			19.00	%	19.00	%	19.00	%			25.00	%	25.00	%	25.00	%

Servicing Assets at LCM:	10,389								—
Discount factor1			13.50	%	13.50	%	13.50	%			—	%	—	%	—	%
Cumulative prepayment rate			29.76	%	22.50	%	75.00	%			—	%	—	%	—	%
Average cumulative default rate			19.14	%	19.00	%	20.00	%			—	%	—	%	—	%

Total	$	39,725							$	30,268

(1) Determined based on risk spreads and observable secondary market transactions.


	Fair Value as of			Weighted		Range
	December 31, 2023		Unobservable Input	Average1		Minimum		Maximum
Assets:
Held for investment, at fair value - accrual loans	$	421,627	Market yields	7.75	%	7.75	%	7.75	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Held for investment, at fair value - non-accrual loans	$	48,174	Market yields	7.39	%	7.39	%	7.39	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Held for sale, at fair value	$	118,867	Market yields	6.85	%	6.50	%	7.75	%
			Cumulative prepayment rate	61.03	%	55.60	%	75.00	%
			Average cumulative default rate	20.00	%	20.00	%	20.00	%
Joint Ventures	$	40,859	Market yields	8.00	%	8.00	%	8.00	%
			Cost of equity	12.00	%	10.00	%	14.00	%
			Weighted average cost of capital	8.50	%	7.50	%	9.50	%
Non-control equity investments	$	368	Market yields	10.00	%	8.00	%	12.00	%
	$	360	Cost basis	N/A		N/A		N/A
Servicing assets1	$	29,336	Market yields	13.50	%	13.50	%	13.50	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	19.00	%	19.00	%	19.00	%
Other real estate owned	$	1,110	Appraised value	N/A		N/A		N/A

Liabilities:
Equity warrants	$	141	Expected volatility	43.00	%	43.00	%	43.00	%
			Dividend yield	5.20	%	5.20	%	5.20	%
			Risk free rate	3.88	%	3.88	%	3.88	%

(1) $29.3 million of servicing assets at held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.


	Fair Value as of			Weighted		Range
	December 31, 2022		Unobservable Input	Average1		Minimum		Maximum
Assets:
SBA unguaranteed non-affiliate investments - accrual loans	$	470,835	Market yields	7.90	%	7.90	%	7.90	%
			Cumulative prepayment rate	25.00	%	25.00	%	25.00	%
			Average cumulative default rate	25.00	%	25.00	%	25.00	%
SBA unguaranteed non-affiliate investments - non-accrual loans	$	34,433	Market yields	8.87	%	8.87	%	8.87	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Controlled equity investments1	$	241,113	EBITDA multiples-TTM2	8.00x		7.50x		8.50x
			EBITDA multiples-NTM2	6.90x		6.00x		7.50x
			Revenue multiples2	2.46x		0.80x		3.20x
			Book value multiples2	1.00x		0.80x		1.20x
			Weighted average cost of capital2	13.20	%	11.50	%	23.60	%
Controlled debt investments	$	18,104	Market yields	10.00	%	10.00	%	10.00	%
Non-control equity investments	$	1,000	Market yields	10.00	%	8.00	%	12.00	%
	$	360	Recent transaction	N/A		N/A		N/A
Servicing assets	$	30,268	Market yields	16.50	%	16.50	%	16.50	%
			Cumulative prepayment rate	25.00	%	25.00	%	25.00	%
			Average cumulative default rate	25.00	%	25.00	%	25.00	%
Other real estate owned	$	3,529	Appraised value	N/A		N/A		N/A

(1) Weighted by relative fair value.

SUBSEQUENT EVENTS (Details) - $ / shares		12 Months Ended
SUBSEQUENT EVENTS (Details) - $ / shares	Mar. 19, 2024	Dec. 31, 2023
Subsequent Event [Line Items]
Dividends and distributions declared per common share (in dollars per share)		$ 0.18
Subsequent Event
Subsequent Event [Line Items]
Dividends and distributions declared per common share (in dollars per share)	$ 0.19

NEWTEKONE, INC. - PARENT COMPANY ONLY - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2023	Apr. 27, 2023	Apr. 13, 2023
Other Commitments [Line Items]
Funded account			$ 10.0
NBL Capital One Facility \| Line of Credit \| Payment guarantee
Other Commitments [Line Items]
Guaranty liabilities	$ 16.3
NBL Deutsche Bank Facility \| Line of Credit \| Payment guarantee
Other Commitments [Line Items]
Guaranty liabilities	6.9
NBL One Florida Bank Facility \| Line of Credit \| Payment guarantee
Other Commitments [Line Items]
Guaranty liabilities	0.4
Webster Facility \| Line of Credit \| Payment guarantee
Other Commitments [Line Items]
Guaranty liabilities	36.6
Newtek Business Lending, LLC \| NBL Capital One Facility \| Line of Credit
Other Commitments [Line Items]
Maximum borrowing capacity	60.0
Newtek Business Lending, LLC \| NBL Deutsche Bank Facility \| Line of Credit
Other Commitments [Line Items]
Maximum borrowing capacity	50.0
Newtek Business Lending, LLC \| NBL One Florida Bank Facility \| Line of Credit
Other Commitments [Line Items]
Maximum borrowing capacity	30.0	$ 30.0
Newtek Merchant Solutions, LLC \| Webster Facility \| Line of Credit
Other Commitments [Line Items]
Maximum borrowing capacity	$ 54.9

SUPPLEMENTAL FINANCIAL DATA	12 Months Ended
SUPPLEMENTAL FINANCIAL DATA	Dec. 31, 2023
Investment Company [Abstract]
SUPPLEMENTAL FINANCIAL DATA	NOTE 23—SUPPLEMENTAL FINANCIAL DATA: During the years ended December 31, 2022 and 2021 when we operated as a BDC, in accordance with the SEC’s Regulation S-X and GAAP, we were not permitted to consolidate any subsidiary or other entity that is not an investment company, including those in which we have a controlling interest. We had two unconsolidated subsidiaries that met at least one of the significance conditions under Rule 1-02(w) of Regulation S-X during certain periods presented for which we were previously required, pursuant to Rule 3-09 of Regulation S-X, to attach separate financial statements as exhibits to the Form 10-K for the years ended December 31, 2022 and 2021. Refer to our 2022 Form 10-K filed March 15, 2023 and exhibits thereto.

SERVICING ASSETS

12 Months Ended

Dec. 31, 2023

Transfers and Servicing [Abstract]

SERVICING ASSETS

NOTE 7—SERVICING ASSETS:

Servicing assets held by NSBF and Newtek Bank, including its subsidiary SBL, are measured at fair value and lower of cost or market, respectively. The Company earns servicing fees from the guaranteed portions of SBA 7(a) loans it originates and sells. As of December 31, 2023 the Company services $1.8 billion in SBA 7(a) loans and $63.5 million in ALP loans. Refer to NOTE 9—FAIR VALUE MEASUREMENTS for a rollforward of servicing assets at fair value.

The following tables summarizes the fair value and valuation assumptions related to servicing assets at December 31, 2023 and December 31, 2022:


	December 31, 2023								December 31, 2022
			Weighted		Range						Weighted		Range
Unobservable Input	Amount		Average		Minimum		Maximum		Amount		Average		Minimum		Maximum

Servicing Assets at FV:	$	29,336							$	30,268
Discount factor1			13.50	%	13.50	%	13.50	%			16.50	%	16.50	%	16.50	%
Cumulative prepayment rate			22.50	%	22.50	%	22.50	%			25.00	%	25.00	%	25.00	%
Average cumulative default rate			19.00	%	19.00	%	19.00	%			25.00	%	25.00	%	25.00	%

Servicing Assets at LCM:	10,389								—
Discount factor1			13.50	%	13.50	%	13.50	%			—	%	—	%	—	%
Cumulative prepayment rate			29.76	%	22.50	%	75.00	%			—	%	—	%	—	%
Average cumulative default rate			19.14	%	19.00	%	20.00	%			—	%	—	%	—	%

Total	$	39,725							$	30,268

(1) Determined based on risk spreads and observable secondary market transactions.

Servicing fee income earned for the years ended December 31, 2023, 2022, and 2021 was $18.3 million, $13.7 million, and $11.3 million, respectively.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481420/860-30-50-1A

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)(7)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-4

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
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+ Details

SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Schedule of segments


As of and for the year ended December 31, 2023
	Banking		Technology		NSBF		Payments		Corporate and Other		Eliminations		Consolidated
Interest income	$	34,349	$	—	$	50,823	$	2,087	$	11,625	$	(4,511)	$	94,373
Interest expense	16,625		246		26,796		3,577		25,006		(4,511)		67,739
Net interest income/(loss)	17,724		(246)		24,027		(1,490)		(13,381)		—		26,634
Provision for loan credit losses	11,704		—		—		—		—		—		11,704
Net interest income after provision for loan credit losses	6,020		(246)		24,027		(1,490)		(13,381)		—		14,930
Noninterest income	92,129		31,692		25,142		46,422		92,059		(110,672)		176,772
Noninterest expense	58,375		29,850		32,108		31,600		29,265		(34,869)		146,329
Income before taxes	39,774		1,596		17,061		13,332		49,413		(75,803)		45,373
Income tax expense (benefit)	11,647		229		—		1,178		(15,010)		—		(1,956)
Net income	28,127		1,367		17,061		12,154		64,423		(75,803)		47,329
Assets	$	683,202	$	23,404	$	633,207	$	51,819	$	726,002	$	(688,121)	$	1,429,513

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest income
Debt securities available-for-sale	$ 1,518,000	$ 1.34	$ 3.69
Loans and fees on loans	84,001,000	35,696,000	25,951,000
Loans and fees on loans - PPP loans	0	0	49,989,000
Interest from affiliates	0	2,921,000	3,026,000
Other interest earning assets	8,854,000	0	0
Total interest income	94,373,000	38,617,000	78,966,000
Interest expense
Deposits	15,849,000	0	0
Total interest expense	67,739,000	26,325,000	20,515,000
Net interest income	26,634,000	12,292,000	58,451,000
Provision for credit losses	11,704,000	0	0
Net interest income after provision for credit losses	14,930,000	12,292,000	58,451,000
Noninterest income
Dividend income	1,757,000	24,657,000	9,896,000
Loan servicing asset revaluation	(3,549,000)	(10,095,000)	(6,778,000)
Servicing income	18,300,000	13,700,000
Net gains on sales of loans	50,734,000	56,901,000	53,113,000
Net gain (loss) on loans under the fair value option	18,008,000	(26,504,000)	11,477,000
Technology and IT support income	24,916,000	0	0
Electronic payment processing income	42,855,000	0	0
Other noninterest income	23,762,000	34,221,000	10,295,000
Total noninterest income	176,772,000	92,878,000	89,310,000
Noninterest expense
Salaries and employee benefits expense	65,708,000	20,186,000	17,866,000
Technology services expense	14,272,000	0	0
Electronic payment processing expense	18,327,000	0	0
Professional services expense	13,077,000	7,134,000	5,610,000
Other loan origination and maintenance expense	9,433,000	30,746,000	29,506,000
Depreciation and amortization	2,884,000	239,000	304,000
Loss on extinguishment of debt	271,000	417,000	1,552,000
Other general and administrative costs	22,357,000	7,673,000	7,454,000
Total noninterest expense	146,329,000	66,395,000	62,292,000
Net income before taxes	45,373,000	38,775,000	85,469,000
Income tax expense (benefit)	(1,956,000)	6,464,000	1,327,000
Net income	47,329,000	32,311,000	84,142,000
Dividends to preferred shareholders	(1,454,000)	0	0
Net income available to common shareholders	$ 45,875,000	$ 32,311,000	$ 84,142,000
Earnings per share, basic (in dollars per share)	$ 1.89	$ 1.34	$ 3.69
Earnings per share, diluted (in dollars per share)	$ 1.88	$ 1.34	$ 3.69
Non-affiliate
Noninterest income
Servicing income	$ 18,289,000	$ 13,698,000	$ 11,307,000
Related Party
Interest expense
Notes payable related party	0	547,000	388,000
Notes and securitizations
Interest expense
Interest expense	40,217,000	21,780,000	18,591,000
Bank and FHLB borrowings
Interest expense
Interest expense	$ 11,673,000	$ 3,998,000	$ 1,536,000

BORROWINGS - Fair Value of Debt (Details) $ in Thousands	Dec. 31, 2023 USD ($) $ / shares	Dec. 31, 2022 USD ($) $ / shares
Debt Instrument [Line Items]
Borrowings	$ 641,794	$ 540,388
2028 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 40,070
2028 Notes \| Medium-term Notes \| Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) \| $ / shares	25.04
2026 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 109,250	$ 114,218
2026 Notes \| Medium-term Notes \| Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) \| $ / shares	23.75	24.83
2024 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 38,235	$ 37,944
2024 Notes \| Medium-term Notes \| Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) \| $ / shares	24.99	24.80

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components of income tax expense

The components of income tax expense for the year ended December 31, 2023, were as follows:


	2023
	Amount
Current income tax expense:
Federal	$	1,251
State	1,593
Total current expense	2,844
Deferred income tax expense:
Federal	(4,318)
State	(482)
Total deferred expense	(4,800)
Total income tax expense	$	(1,956)

Schedule of effective income tax rate reconciliation

Income taxes for financial reporting purposes differ from the amount computed by applying the statutory federal income tax rate of 21% as shown in the following table:


	2023
Tax on income computed at statutory federal income tax rate	$	9,528
Increase (decrease) in taxes resulting from:
State income tax, net of federal tax effect	911
Non-deductible expenses	788
Realization of net operating loss carryforwards	(7,430)
DTA realization due to change in taxpayer status	(5,550)
Other, net	(203)
Income tax expense	$	(1,956)
Effective tax rate	(4.31)		%

Schedule of deferred tax assets and liabilities

Significant components of the Company’s net deferred tax asset at December 31 are listed below:


	2023		2022
Deferred tax assets:
Allowance for Credit Losses	$	3,313	$	—
Lease Liabilities	1,832		—
Other	1,669		—
Purchase Accounting, net	331		—
Stock Compensation	396		—
Loans	2,677		—
Federal and state net operating losses, net of federal tax effect	2,428		—
Total deferred tax assets	12,646		—
Deferred tax liabilities:
Investments	650		19,194
Servicing Rights	2,737		—
Right of Use Assets	1,502		—
Goodwill and Intangible Assets	2,330		—
Other	197		—
Total deferred tax liabilities	7,416		19,194
Net deferred tax asset (liability)	$	5,230	$	(19,194)

Summary of operating loss carryforwards

The following table provides details of the expiration dates for Company’s net operating loss carryforwards at December 31, 2023:


Net operating losses - federal	December 31, 2023
Expiring:	Deferred Tax Asset Balance
Years ended 2029 - 2035	$	—
Years ended 2036 - 2043	—
Never	2,428
Total	$	2,428

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions		12 Months Ended
	Jan. 06, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill [Line Items]
Goodwill acquired upon consolidation of company	$ 0.3
Amortization expense		$ 1.5
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration]		Depreciation and amortization
NBNYC
Goodwill [Line Items]
Goodwill acquired during period		$ 25.6

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investment holdings, schedule of investments

Investments consisted of the following at:


	December 31, 2023				December 31, 2022
	Cost		Fair Value		Cost		Fair Value
Debt securities available-for-sale, at fair value	$	32,372	$	32,171	$	—	$	—
Federal Home Loan Bank and Federal Reserve Bank stock	3,635		3,635		—		—
Non-controlled investments	796		728		1,360		1,360
Joint ventures	37,864		40,859		23,314		23,022

Controlled investments:
Equity	—		—		99,195		241,113
Debt	—		—		32,300		18,104
Total investments	$	74,667	$	77,393	$	156,169	$	283,599

The following tables shows the Company’s loan portfolio by industry for loans held for investment, at fair value and loans held for investment, at amortized cost:


	Loans Held for Investment, at Fair Value
	December 31, 2023				December 31, 2022
	Cost		Fair Value		Cost		Fair Value
Food Services and Drinking Places	$	43,779	$	43,955	$	47,012	$	47,198
Specialty Trade Contractors	40,193		35,451		42,082		38,059
Professional, Scientific, and Technical Services	36,248		35,377		39,910		38,086
Ambulatory Health Care Services	27,291		26,633		27,275		25,151
Merchant Wholesalers, Durable Goods	21,873		21,152		22,164		22,004
Administrative and Support Services	21,319		19,521		22,352		20,827
Amusement, Gambling, and Recreation Industries	21,289		22,839		23,812		24,928
Repair and Maintenance	15,886		17,005		16,993		17,165
Merchant Wholesalers, Nondurable Goods	15,623		15,573		16,183		15,312
Truck Transportation	15,590		12,113		23,673		18,071
Personal and Laundry Services	12,867		13,584		12,949		13,333
Fabricated Metal Product Manufacturing	12,439		13,205		13,483		14,032
Food Manufacturing	10,233		8,714		10,756		8,873
Construction of Buildings	9,868		9,890		11,252		10,194
Accommodation	9,259		10,162		11,476		10,428
Motor Vehicle and Parts Dealers	9,046		9,382		10,071		9,536
Social Assistance	8,857		9,721		9,150		9,857
Support Activities for Mining	8,455		7,754		10,426		8,615
Transportation Equipment Manufacturing	7,687		7,999		8,272		8,445
Building Material and Garden Equipment and Supplies Dealers	7,384		6,781		8,098		7,689
Food and Beverage Stores	7,026		7,306		5,711		5,857
Rental and Leasing Services	6,764		7,178		7,417		7,647
Nursing and Residential Care Facilities	6,182		6,709		8,187		8,697
Educational Services	5,368		5,636		5,838		6,133
Other	102,037		96,161		118,251		109,131
Total	$	482,563	$	469,801	$	532,793	$	505,268

Investment company, nonconsolidated subsidiary, summarized financial information

The following tables show certain summarized financial information for NCL JV:


Selected Statement of Assets and Liabilities Information	December 31, 2023		December 31, 2022
	(Unaudited)		(Unaudited)
Cash	$	612	$	791
Restricted cash	3,298		2,362
Investments in loans, at fair value (amortized cost of $68,404 and $78,785, respectively)	70,083		78,595
Other Assets	1,614		1,807
Total assets	$	75,607	$	83,555

Securitization notes payable	$	38,805	$	49,273
Other liabilities	905		1,109
Total liabilities	39,710		50,382

Net assets	35,897		33,173
Total liabilities and net assets	$	75,607	$	83,555


Selected Statements of Operations Information	Year Ended December 31,
		2023		2022		2021
		(Unaudited)		(Unaudited)		(Unaudited)
Interest and other income		$	6,160	$	6,966	$	6,300
Total expenses		2,524		2,916		2,612
Net investment income		3,636		4,050		3,688
Unrealized (depreciation) appreciation on investments		1,869		(4,494)		282
Net increase (decrease) in net assets resulting from operations		$	5,505	$	(444)	$	3,970

The following tables show certain summarized financial information for TSO JV:


Selected Statement of Assets and Liabilities Information	December 31, 2023		December 31, 2022
	(Unaudited)		(Unaudited)
Cash	$	4,401	$	1,046
Restricted cash	1,183		498
Investments in loans, at fair value (amortized cost of $62,695 and $21,038, respectively)	66,689		22,449
Other assets	1,374		2,034
Total assets	$	73,647	$	26,027

Bank notes payable	$	29,636	$	12,950


Other liabilities	1,092		206
Total liabilities	30,728		13,156

Net assets	42,919		12,871
Total net assets	$	73,647	$	26,027


Selected Statements of Operations Information	Year Ended December 31,
		2023		2022		2021
		(Unaudited)		(Unaudited)		(Unaudited)
Interest and other income		$	3,823	$	101	$	—
Total expenses		4,430		385		—
Net investment income (loss)		(607)		(284)		—
Unrealized appreciation on investments		2,580		1,412		—
Realized loss on investments		(16)		—		—
Realized gain (loss) on derivative transactions		399		—		—
Unrealized gain (loss) on derivative transactions		(911)		218		—
Net increase in net assets resulting from operations		$	1,445	$	1,346	$	—

Investments in and advances to affiliates

Transactions related to our joint ventures and non-controlled investments for the year ended December 31, 2023 were as follows:


Company	Fair Value at December 31, 2022		Purchases (Cost)		Principal Received		Return of Investment		Net Realized Gains/(Losses)		Net Unrealized Gains/(Losses)		Fair Value at December 31, 2023		Interest and Other Income		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

Non-Control Investments
EMCAP Loan Holdings, LLC	$	1,000	$	—	$	—	$	(564)	$	—	$	(68)	$	368	$	—	$	116
Biller Genie Software, LLC	360		—		—		—		—		—		360		—		—
Total Non-Control Investments	$	1,360	$	—	$	—	$	(564)	$	—	$	(68)	$	728	$	—	$	116

Total Affiliate 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, 2023 and December 31, 2022:


	December 31, 2023		December 31, 2022
Due to affiliated companies1	$	158	$	1,338
Due from affiliated companies2	7		1,211
Total due to/due from affiliated companies	$	151	$	127

1 Included within Other Assets

2 Included within Accounts payable, accrued expenses, and other Liabilities

Notes payable - related parties

The following table summarizes our Notes payable - related parties as of December 31, 2023 and December 31, 2022.


	December 31, 2023		December 31, 2022
Notes payable - related parties	$	—	$	24,250

The following table summarizes the income earned from our joint ventures for the periods ended December 31, 2023, December 31, 2022 and December 31, 2021:


	For the years ended December 31,
		2023		2022		2021
Servicing income1		$	1,240	$	840	$	752

Schedule of available-for-sale securities

The following tables summarize the amortized cost and fair value of available-for-sale securities by major type as of December 31, 2023:


At December 31 , 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. Treasury notes	$	29,372	$	—	$	67	$	29,305
Government agency debentures	3,000		—		134		2,866
Total available for sale securities	$	32,372	$	—	$	201	$	32,171

Debt securities, unrealized losses

The following tables summarize the gross unrealized losses and fair value of available-for-sale securities by length of time each major security type has been in a continuous unrealized loss position:


	At 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

Available-for-sale maturity and other information

The following table summarizes the amortized cost and fair value of available-for-sale securities by contractual maturity:


	At December 31 , 2023				At December 31, 2022
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing within 1 year	$	32,372	$	32,171	$	—	$	—



Total available for sale securities	$	32,372	$	32,171	$	—	$	—

The following table summarizes Newtek Bank’s available-for-sale securities pledged for deposits, borrowings, and other purposes:


	At December 31 , 2023		At December 31, 2022
Pledged for deposits	$	—	$	—
Pledged for borrowings and other	30,730		—
Total available for sale securities pledged	$	30,730	$	—

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

BENEFIT PLANS

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

BENEFIT PLANS

NOTE 20—BENEFIT PLANS:

Defined Contribution Plan

The Company’s employees participate in a defined contribution 401(k) plan (the “Plan”) adopted in 2004 which covers substantially all employees based on eligibility. The Plan is designed to encourage savings on the part of eligible employees and qualifies under Section 401(k) of the Code. Under the Plan, eligible employees may elect to have a portion of their pay, including overtime and bonuses, reduced each pay period, as pre-tax contributions up to the maximum allowed by law. The Company may elect to make a matching contribution equal to a specified percentage of the participant’s contribution, on their behalf as a pre-tax contribution.

For the years ended December 31, 2023, 2022 and 2021, the Company matched 50% of the first 2% of employee contributions, resulting in $0.4 million, $0.1 million and $0.1 million in expense, respectively.

Employee Stock Purchase Plan (ESPP)

On June 14, 2023, the Company's stockholders approved the ESPP. The initial aggregate number of shares of common stock that may be purchased under the ESPP will not exceed 0.2 million shares. Under the terms of the ESPP, employees may authorize the withholding of up to 15% of their eligible compensation to purchase our shares of common stock, not to exceed $25 thousand of common stock for any calendar year. The purchase price per shares acquired under the ESPP will never be less than 85% of the fair market value of the lesser of our common stock on the offering date or purchase date. The Compensation, Corporate Governance and Nominating Committee of our Board of Directors in its discretion may terminate the ESPP at any time with respect to any shares for which options have not been granted and has the right to amend the ESPP with stockholder approval within 12 months before or after the adoption of the amendment. The difference between the common stock’s fair value and the employee’s discounted purchase price is expensed at the time of purchase. The following table summarizes the Company’s ESPP activity during the year ended December 31, 2023:

Year Ended December 31, 2023

Offering Period 1

Commencement date

10/1/2023

End date

12/15/2023

Shares purchased

Weighted average share price

13.05

Total purchased

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 18—EARNINGS PER SHARE:

Basic and diluted earnings per share are computed based on the weighted average number of shares outstanding during each period. Diluted earnings per share reflects the potential dilution that could occur upon the exercise of stock options, to the extent outstanding, or upon the vesting of restricted stock grants, any of which would result in the issuance of common stock that would then share in the net income of the Company.


	December 31,
	2023		2022		2021
	Financial Holding Company1,2		Investment Company4		Investment Company4
Basic earnings per share:
Net income available to common shareholders	$	45,875	$	32,311	$	84,142
Weighted-average basic shares outstanding	24,263		24,198		22,795
Basic earnings per share	$	1.89	$	1.34	$	3.69
Diluted earnings per share:
Net income, for diluted earnings per share	$	45,875	$	32,311	$	84,142
Total weighted-average basic shares outstanding	24,263		24,198		22,795
Add effect of dilutive warrants and restricted stock awards3	85		—		—
Total weighted-average diluted shares outstanding	24,348		24,198		22,795
Diluted earnings per share	$	1.88	$	1.34	$	3.69
Anti-dilutive warrants and restricted stock awards	1,153		—		—

(1) For the years ended December 31, 2023, the convertible preferred stock was not included in the diluted share count because the result would have been anti-dilutive under the if-converted method.

(2) For the years ended December 31, 2023, the Warrants have an anti-dilutive impact on earnings per share.

(3) Incremental diluted shares from restricted stock awards under the treasury stock method.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Parenthetical)	12 Months Ended
	Dec. 31, 2023 $ / shares
Statement of Stockholders' Equity [Abstract]
Dividends declared common shares (in dollars per share)	$ 0.18
Dividends declared preferred shares (in dollars per share)	$ 12.27

STOCK BASED COMPENSATION - Dividends (Details) - USD ($) $ in Thousands								12 Months Ended
	Oct. 20, 2023	Jul. 21, 2023	Apr. 14, 2023	Dec. 30, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
DRIP Shares Issued	6,000	4,000	6,000	45,000	21,000	21,000	9,000
DRIP Shares Value	$ 71	$ 73	$ 72	$ 692	$ 323	$ 374	$ 225		$ 1,614
Unvested Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
DRIP Shares Issued								19,000	35,000
DRIP Shares Value								$ 263	$ 646

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

SHAREHOLDERS' EQUITY - ATM Equity Distribution (Details) - 2020 ATM Equity Distribution - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Subsidiary, Sale of Stock [Line Items]
Shares sold (in shares)	0	107,000	1,940,000
Net weighted average price per share (in dollars per share)	$ 0	$ 19.12	$ 25.91
Net proceeds	$ 0	$ 2,054	$ 50,261

NEWTEKONE, INC. - PARENT COMPANY ONLY (Tables)

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheet

Statement of Financial Condition


	December 31, 2023
Assets
Cash and balances due from depository institutions:	$	13,871
Loans and lease financing receivable	4,786
Investments in and receivables due from subsidiaries and associated companies	392,519
Premises and fixed assets (including capitalized leases)	64
Other assets	20,159
Total assets	431,399

Liabilities and shareholders' equity
Borrowings with a remaining maturity of one year or less:	38,124
Other borrowed money with a remaining maturity of more than one year	253,888
Other liabilities	59,495
Total liabilities	351,507

Preferred stock	19,493
Common stock	490
Additional paid in capital	314,187
Retained earnings	(254,278)
Total shareholders’ equity	79,892
Total liabilities and shareholder's equity	$	431,399

Condensed Income Statement

Statement of Income


	For the year ended
	2023
Interest income	$	2,319
Interest expense	18,797
Net interest loss	(16,478)
Noninterest income:
Dividends	60,317
All other operating income	(2,345)
Total noninterest income	57,972
Noninterest expense:
Salaries and employee benefits	9,365
Other expenses	10,962
Total noninterest expense	20,327
Net Income before equity in undistributed income of subsidiaries	21,167
Income tax benefit	(14,837)
Income (loss) before undistributed income of subsidiaries	36,004
Equity in undistributed income (losses) of subsidiaries and associated companies:	26,813
Net income (loss)	$	62,817

Condensed Cash Flow Statement

Statement of Cash Flows


	For the year ended
	2023
Cash flows from operating activities:
Net income (loss)	$	62,817
Provisions for deferred income taxes	(5,814)
Gain (loss) on sale of assets	539
Equity in Undistributed (earnings) losses of subs	(26,813)
Net change in other liabilities	(40,414)
Net change in other asset	(10,759)
Other, net	7,570
Net cash provided (used by operating activities	(12,874)

Cash flow from investing activities
Payments for investments in and advances to subsidiaries	(96,265)
Outlays for business acquisitions	(21,322)
Other, net	14
Net cash provided (used) by investing activities	(117,573)

Cash flow from financing activities
Proceeds from issuance of long-term debt	90,000
Proceeds from issuance of preferred stock	19,493
Dividends paid	(14,147)
Other, net	(2,826)
Net cash provided (used) by financing activities	92,520

Net (decrease) increase in cash and restricted cash	(37,927)
Cash and restricted cash - beginning of period	51,798
Cash and restricted cash - end of period	$	13,871

LEASES

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

LEASES

NOTE 19—LEASES:

Under ASC 842, operating lease expense is generally recognized on a straight-line basis over the term of the lease. The Company has entered into operating lease agreements for office space with remaining contractual terms up to three years, some of which include renewal options that extend the leases for up to 10 years. These renewal options are not considered in the remaining lease term unless it is reasonably certain the Company will exercise such options. The operating lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As the rate implicit in the leases generally is not readily determinable for our operating leases, the discount rates used to determine the present value of our lease liability are based on our incremental borrowing rate at the lease commencement date and commensurate with the remaining lease term. Our incremental borrowing rate for a lease is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are excluded from our weighted-average remaining lease term.

The following table summarizes supplemental cash flow and other information related to our operating leases:


	Year Ended December 31,
		2023	2022	2021
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)		$2,693	$1,886	$1,555
Weighted-average remaining lease term - operating leases		2.88 years	4.41 years	5.30 years
Weighted-average discount rate - operating leases		5.50%	4.73%	4.55%
Total lease costs1		$3,124	$1,000	$894

1 Included in Other general and administrative costs on the consolidated statements of operations.

The following table represents the maturity of the Company’s operating lease liabilities as of December 31, 2023:


Maturity of Lease Liabilities
2024	$	2,761
2025	2,469
2026	1,842
2027	430
2028	—
Thereafter	—
Total future minimum lease payments	$	7,502
Less: Imputed interest	(550)
Present value of future minimum lease payments	$	6,952

GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill [Line Items]
Total goodwill	$ 25,885	$ 0
Banking
Goodwill [Line Items]
Total goodwill	271	0
Payments
Goodwill [Line Items]
Total goodwill	13,814	0
Technology
Goodwill [Line Items]
Total goodwill	$ 11,800	$ 0

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions	Dec. 31, 2023 USD ($)
Commitments to Extend Credit
Other Commitments [Line Items]
Commitment	$ 125.4
SBA investment
Other Commitments [Line Items]
Commitment	20.4
504 Loan
Other Commitments [Line Items]
Commitment	81.0
ALP Loans
Other Commitments [Line Items]
Commitment	13.1
Commercial & Industrial
Other Commitments [Line Items]
Commitment	$ 10.9

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITES

12 Months Ended

Dec. 31, 2023

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITES

NOTE 11—ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITES:

The following table details the components of accounts payable, accrued expenses and other liabilities at December 31, 2023 and December 31, 2022:


	December 31, 2023		December 31, 2022
Loan related remittances due to SBA and participants	$	3,577	$	70
Accrued payroll and related expenses	1,349		3,051
Accrued interest	4,114		2,846
Funds in process to PMT's payroll customers	5,060		—
Loan processing, servicing and other loan related expenses	3,793		2,059
SBA repair & denial reserve1	3,063		—
Good faith deposits	893		—
Other	15,451		13,398
Total accounts payable, accrued expenses and other liabilities	$	37,300	21,424

1 The Company may be exposed to repair and denial liability to the SBA for SBA 7(a) loans in its portfolio. The Company established a loss contingency reserve in accordance with ASC 450-20. To determine the reserve the Company utilizes probability of default and loss given default rates, which are consistent with the assumptions used in its cash flow projections when estimating the fair value of loans. These factors are applied to the outstanding balances of guaranteed SBA 7(a) loans as well as a rate of repurchase based on historical experience.

DEPOSITS

12 Months Ended

Dec. 31, 2023

Banking and Thrift, Interest [Abstract]

DEPOSITS

NOTE 10—DEPOSITS:

The following table summarizes deposits by type:


	December 31, 2023		December 31, 2022
Non-interest-bearing:
Demand	$	10,053	$	—
Interest-bearing:
Checking	11,456		—
Money market	15,803		—
Savings	259,152		—
Time deposits	167,041		—
Total interest-bearing	453,452		—
Total deposits	$	463,505	$	—

Time deposits, money market, and interest-bearing checking obtained through brokers	$	53,548	$	—
Aggregate amount of deposit accounts that exceeded the FDIC limit	$	66,511	$	—
Demand deposit overdrafts reclassified as loan balances	$	53	$	—

Certificates of deposit in excess of $0.25 million totaled $20.1 million at December 31, 2023.

The following table summarizes the scheduled maturities of time deposits:


2024	$	54,805
2025	63,402
2026	28,379
2027	19,710
2028	745
Thereafter	—
Total time deposits	$	167,041

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	$ 16,140	$ 0
Accumulated Amortization	(11,905)	0
Total	4,235	0
Core Deposits
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	1,040	0
Accumulated Amortization	(197)	0
Total	843	0
Technology Customer Lists
Acquired Finite-Lived Intangible Assets [Line Items]
Total	3,400
Technology Customer Lists \| Payments
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	8,575	0
Accumulated Amortization	(8,562)	0
Total	13	0
Technology Customer Lists \| Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	6,525	0
Accumulated Amortization	(3,146)	0
Total	$ 3,379	$ 0

INVESTMENTS - Transaction with Affiliated Companies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-Sale [Line Items]
Net Realized Gains/(Losses)	$ 0	$ 0	$ (1,266)
Affiliate Investments
Debt Securities, Available-for-Sale [Line Items]
Fair Value	24,382
Proceeds from sale of loans held for sale	14,550
Principal Received	0
Return of Investment, Operating Activity	(564)
Net Realized Gains/(Losses)	0
Net Unrealized Gains/(Losses)	3,219	0	$ 0
Fair Value	41,587	24,382
Interest and Other Income	0
Dividend Income	1,757
Joint Ventures
Debt Securities, Available-for-Sale [Line Items]
Fair Value	23,022
Proceeds from sale of loans held for sale	14,550
Principal Received	0
Return of Investment, Operating Activity	0
Net Realized Gains/(Losses)	0
Net Unrealized Gains/(Losses)	3,287
Fair Value	40,859	23,022
Interest and Other Income	0
Dividend Income	1,641
Non-Control Investments
Debt Securities, Available-for-Sale [Line Items]
Fair Value	1,360
Proceeds from sale of loans held for sale	0
Principal Received	0
Return of Investment, Operating Activity	(564)
Net Realized Gains/(Losses)	0
Net Unrealized Gains/(Losses)	(68)
Fair Value	728	1,360
Interest and Other Income	0
Dividend Income	116
Investment, Identifier [Axis]: Biller Genie Software, LLC
Debt Securities, Available-for-Sale [Line Items]
Fair Value	360
Proceeds from sale of loans held for sale	0
Principal Received	0
Return of Investment, Operating Activity	0
Net Realized Gains/(Losses)	0
Net Unrealized Gains/(Losses)	0
Fair Value	360	360
Interest and Other Income	0
Dividend Income	0
Investment, Identifier [Axis]: EMCAP Loan Holdings, LLC
Debt Securities, Available-for-Sale [Line Items]
Fair Value	1,000
Proceeds from sale of loans held for sale	0
Principal Received	0
Return of Investment, Operating Activity	(564)
Net Realized Gains/(Losses)	0
Net Unrealized Gains/(Losses)	(68)
Fair Value	368	1,000
Interest and Other Income	0
Dividend Income	116
Investment, Identifier [Axis]: Newtek Conventional Lending, LLC
Debt Securities, Available-for-Sale [Line Items]
Fair Value	16,587
Proceeds from sale of loans held for sale	248
Principal Received	0
Return of Investment, Operating Activity	0
Net Realized Gains/(Losses)	0
Net Unrealized Gains/(Losses)	2,565
Fair Value	19,400	16,587
Interest and Other Income	0
Dividend Income	1,641
Investment, Identifier [Axis]: Newtek TSO II Conventional Credit Partners, LP
Debt Securities, Available-for-Sale [Line Items]
Fair Value	6,435
Proceeds from sale of loans held for sale	14,302
Principal Received	0
Return of Investment, Operating Activity	0
Net Realized Gains/(Losses)	0
Net Unrealized Gains/(Losses)	722
Fair Value	21,459	$ 6,435
Interest and Other Income	0
Dividend Income	$ 0

SEGMENTS (Details) $ in Thousands		3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
SEGMENTS (Details) $ in Thousands	Jan. 06, 2023	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment							4
Interest income		$ 26,736	$ 22,553	$ 18,715	$ 41,268	$ 68,004	$ 94,373	$ 38,617	$ 78,966
Total interest expense		18,659	16,880	14,132	31,012	49,671	67,739	26,325	20,515
Net interest income		8,077	5,673	4,583	10,256	18,333	26,634	12,292	58,451
Provision for credit losses		3,446	2,575	1,318	3,893	7,339	11,704	0	0
Net interest income after provision for credit losses							14,930	12,292	58,451
Noninterest income							176,772	92,878	89,310
Noninterest expense							146,329	66,395	62,292
Net income before taxes							45,373	38,775	85,469
Income tax expense (benefit)		3,416	2,595	(11,952)	(9,357)	(5,941)	(1,956)	6,464	1,327
Net income		10,919	7,011	18,550	25,561	36,480	47,329	32,311	$ 84,142
Assets		$ 1,393,495	$ 1,451,021	$ 1,259,799	$ 1,451,021	$ 1,393,495	1,429,513	$ 998,902
NBNYC
Segment Reporting Information [Line Items]
Divest or termination period	2 years
Divest or termination period, extension	2 years
Operating Segments \| Banking
Segment Reporting Information [Line Items]
Interest income							34,349
Total interest expense							16,625
Net interest income							17,724
Provision for credit losses							11,704
Net interest income after provision for credit losses							6,020
Noninterest income							92,129
Noninterest expense							58,375
Net income before taxes							39,774
Income tax expense (benefit)							11,647
Net income							28,127
Assets							683,202
Operating Segments \| Technology
Segment Reporting Information [Line Items]
Interest income							0
Total interest expense							246
Net interest income							(246)
Provision for credit losses							0
Net interest income after provision for credit losses							(246)
Noninterest income							31,692
Noninterest expense							29,850
Net income before taxes							1,596
Income tax expense (benefit)							229
Net income							1,367
Assets							23,404
Operating Segments \| NSBF
Segment Reporting Information [Line Items]
Interest income							50,823
Total interest expense							26,796
Net interest income							24,027
Provision for credit losses							0
Net interest income after provision for credit losses							24,027
Noninterest income							25,142
Noninterest expense							32,108
Net income before taxes							17,061
Income tax expense (benefit)							0
Net income							17,061
Assets							633,207
Operating Segments \| Payments
Segment Reporting Information [Line Items]
Interest income							2,087
Total interest expense							3,577
Net interest income							(1,490)
Provision for credit losses							0
Net interest income after provision for credit losses							(1,490)
Noninterest income							46,422
Noninterest expense							31,600
Net income before taxes							13,332
Income tax expense (benefit)							1,178
Net income							12,154
Assets							51,819
Corporate and Other
Segment Reporting Information [Line Items]
Interest income							11,625
Total interest expense							25,006
Net interest income							(13,381)
Provision for credit losses							0
Net interest income after provision for credit losses							(13,381)
Noninterest income							92,059
Noninterest expense							29,265
Net income before taxes							49,413
Income tax expense (benefit)							(15,010)
Net income							64,423
Assets							726,002
Eliminations
Segment Reporting Information [Line Items]
Interest income							4,511
Total interest expense							4,511
Net interest income							0
Provision for credit losses							0
Net interest income after provision for credit losses							0
Noninterest income							110,672
Noninterest expense							34,869
Net income before taxes							75,803
Income tax expense (benefit)							0
Net income							75,803
Assets							$ 688,121

INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Allowance for Credit Losses	$ 3,313	$ 0
Lease Liabilities	1,832	0
Other	1,669	0
Purchase Accounting, net	331	0
Stock Compensation	396	0
Loans	2,677	0
Federal and state net operating losses, net of federal tax effect	2,428	0
Total deferred tax assets	12,646	0
Deferred tax liabilities:
Investments	650	19,194
Servicing Rights	2,737	0
Right of Use Assets	1,502	0
Goodwill and Intangible Assets	2,330	0
Other	197	0
Total deferred tax liabilities	7,416	19,194
Net deferred tax asset (liability)	$ 5,230
Net deferred tax asset (liability)		$ (19,194)

INVESTMENTS - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Jan. 28, 2022	May 20, 2019
Debt Securities, Available-for-Sale [Line Items]
Accrued interest receivable on available-for-sale securities	$ 200
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Other assets
Newtek Conventional Lending, LLC
Debt Securities, Available-for-Sale [Line Items]
Investment sale		$ 56,300
Yield percentage		3.209%
Newtek Conventional Lending, LLC \| Newtek Commercial Lending
Debt Securities, Available-for-Sale [Line Items]
Joint venture ownership percentage			50.00%
Newtek Conventional Lending, LLC \| Conventional Lending TCP Holding
Debt Securities, Available-for-Sale [Line Items]
Joint venture ownership percentage			50.00%

LOANS - Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	$ 336,305	$ 0
Deferred fees and costs	393	0
Loans held for investment, at amortized cost, net of deferred fees and costs	336,305	0
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	163,803	0
Commercial & Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	8,191	0
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	163,918	0
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	$ 335,912	$ 0

- Definition

Amortized cost, before allowance for credit loss, of financing receivable. Excludes financing receivable covered under loss sharing agreement and net investment in lease.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 80
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479294/326-20-55-80

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 79
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479294/326-20-55-79

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479344/326-20-45-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(3)(b))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-K (SK)
-Number 229
-Section 1405
-Paragraph (a)
-Subparagraph (1)
-Publisher SEC

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-K (SK)
-Number 229
-Section 1405
-Paragraph (a)
-Subparagraph (2)
-Publisher SEC

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1404
-Paragraph (a)
-Publisher SEC

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-14

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 7A
-SubTopic 10
-Topic 310
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481962/310-10-50-7A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-5

+ Details

BUSINESS COMBINATION - Loans Purchased (Details) - NBNYC $ in Thousands	Jan. 06, 2023 USD ($)
Business Acquisition [Line Items]
Par value (unpaid principal balance)	$ 159,155
Financial Asset Acquired with Credit Deterioration
Business Acquisition [Line Items]
Par value (unpaid principal balance)	42,443
ACL at acquisition	(870)
Non-credit (discount)	(1,559)
Fair Value	$ 40,014

DEPOSITS - Deposits by Type (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Banking and Thrift, Interest [Abstract]
Noninterest-bearing	$ 10,053				$ 0
Interest-bearing:
Checking	11,456				0
Money market	15,803				0
Savings	259,152				0
Time deposits	167,041				0
Interest-bearing	453,452				0
Total deposits	463,505	$ 432,559	$ 447,357	$ 247,574	0
Time deposits, money market, and interest-bearing checking obtained through brokers	53,548				0
Aggregate amount of deposit accounts that exceeded the FDIC limit	66,511				0
Demand deposit overdrafts reclassified as loan balances	$ 53				$ 0

BENEFIT PLANS - ESPP Activity (Details) - Employee Stock Purchase Plan $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) $ / shares shares
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares purchased (in shares) \| shares	4
Weighted average share price (in dollars per share) \| $ / shares	$ 13.05
Total purchased \| $	$ 51

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2023	Mar. 28, 2024	Jun. 30, 2023
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Securities Act File Number	814-01035
Entity Registrant Name	NEWTEKONE, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	46-3755188
Entity Address, Address Line One	4800 T Rex Avenue
Entity Address, Address Line Two	Suite 120
Entity Address, City or Town	Boca Raton
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33431
City Area Code	212
Local Phone Number	356-9500
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Document Financial Statement Error Correction [Flag]	false
Entity Public Float			$ 365.7
Entity Common Stock, Shares Outstanding (in shares)		24,708,771
Entity Central Index Key	0001587987
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Common Stock, par value $0.02 per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.02 per share
Trading Symbol	NEWT
Security Exchange Name	NASDAQ
5.75% Notes due 2024
Document Information [Line Items]
Title of 12(b) Security	5.75% Notes due 2024
Trading Symbol	NEWTL
Security Exchange Name	NASDAQ
5.50% Notes due 2026
Document Information [Line Items]
Title of 12(b) Security	5.50% Notes due 2026
Trading Symbol	NEWTZ
Security Exchange Name	NASDAQ
8.00% Notes due 2028
Document Information [Line Items]
Title of 12(b) Security	8.00% Notes due 2028
Trading Symbol	NEWTI
Security Exchange Name	NASDAQ

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2023
Accounting Policies [Abstract]
Reclassifications	Reclassifications Certain prior period amounts, to the extent comparable, have been reclassified to conform to the current period presentation.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are complete. Actual results could differ from those estimates.
Cash and Restricted Cash	Cash The Company considers all highly liquid instruments with maturities of three months or less when purchased to be cash equivalents. Invested cash is held exclusively at financial institutions of high credit quality. As of December 31, 2023, cash deposits in excess of insured amounts totaled $37.2 million. The Company has not experienced any losses with respect to cash balances in excess of insured amounts and management does not believe there was a significant concentration of risk with respect to cash balances as of December 31, 2023. Restricted cash Restricted cash includes amounts due on SBA loan-related remittances to third parties, cash reserves established as part of agreements with the SBA, cash reserves associated with securitization transactions, and cash margin as collateral for derivative instruments. As of December 31, 2023, total restricted cash was $30.9 million.
Interest bearing deposits in banks	Interest bearing deposits in banks The Company’s interest bearing deposits in banks reflects cash held at other financial institutions that earn interest.
Debt securities, available for sale	Debt securities, available for sale The Company’s securities portfolio primarily consists of available for sale debt securities held by Newtek Bank that are classified as “available for sale” and carried at their estimated fair value, with any unrealized gains or losses, net of taxes, reported as accumulated other comprehensive income or loss in stockholders’ equity. The fair values of our instruments are affected by changes in market interest rates and credit spreads. In general, as interest rates rise and/or credit spreads widen, the fair value of instruments will decline. As interest rates fall and/or credit spreads tighten, the fair value of instruments will rise. The Company evaluates available-for-sale instruments in unrealized loss positions at least quarterly to determine if an allowance for credit losses is required. Purchases and sales of debt securities are accounted for on a trade-date basis.
Loans and Loan Interest Income Recognition and Changes in Fair Value	Loans Held for Investment Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are classified as held for investment. At amortized cost, net of deferred fees and costs: Loans are reported at their principal amount outstanding, net of charge-offs, deferred origination costs and fees and purchase premiums and discounts. Loan origination and commitment fees and certain direct and indirect costs incurred in connection with loan originations are deferred and amortized to income over the life of the related loans as an adjustment to yield. Premiums or discounts on purchased portfolios are amortized or accreted to income using the level yield method over the remaining period to contractual maturity. Currently, all LHI at amortized cost, net of deferred fees and costs are originated and carried at Newtek Bank and have a weighted average life of five years. Newtek Bank originates SBA 7(a) loans, under its PLP status, and typically sells the guaranteed portions and holds the unguaranteed portions for investment. Newtek Bank also holds CRE and C&I loans for investment. The net amount of deferred fees and costs as of December 31, 2023 was $1.2 million. At fair value: On a quarterly basis, management determines the fair values of the retained unguaranteed portions of SBA 7(a) loans HFI, and unrealized changes in FV are recognized in the income statement. The loans within this portfolio were originated by NSBF. Refer to the “Fair Value Option” section below for further information on loans HFI carried at FV under the FV option. Held for Sale Management designates loans as HFS based on its intent to sell loans, or portions of loans, in established secondary markets or to participant banks and credit unions. Salability requirements of government guaranteed portions include, but are not limited to, full disbursement of the loan commitment amount. The Company occasionally transfers loans between the HFS and HFI classifications based on its intent and ability to hold or sell loans. Management’s intent to sell may be impacted by secondary market conditions, loan credit quality, or other factors. At lower of amortized cost basis or fair value: Both mortgage and non-mortgage loans classified as HFS are carried at the LCM. If the amortized cost basis of a loan exceeds FV, a valuation allowance should be established for the difference. Currently, HFS loans at LCM are carried at Newtek Bank. This includes the government guaranteed portion of SBA 7(a) loans and SBA 504 loans. Management may also make a determination to market for sale certain CRE and C&I loans on a loan by loan basis. At fair value: The Company originates alternative lending program loans (formerly referred to as our nonconforming conventional loans), which are either HFS or HFI, via its nonbank subsidiaries, and joint ventures. Nonconforming loans are carried at FV. The Company also originated SBA 504 loans HFS prior to the Acquisition through its nonbank subsidiaries. SBA 504 loans HFS held at Holdco 6 are accounted for under the FV option. Alternative lending program loans are held at Holdco 6, NCL JV, and TSO JV and are also accounted for under the FV option. Additionally, the existing government guaranteed portion of SBA 7(a) loans held at NSBF are also HFS at FV. Refer to the “Fair Value Option” section below for further information on loans HFS carried at FV under the FV option. Loan Interest Income Recognition and Changes in Fair Value Held for Investment At Amortized Cost, net of deferred loan fees and costs: Interest on loans is generally recognized on a daily accrual basis at the applicable interest rate. Interest is not accrued on loans that are more than 90 days delinquent on payments, and any interest that was accrued but unpaid on such loans is reversed from interest income at that time, or when deemed to be uncollectible. Interest subsequently received on such loans is recorded as interest income or alternatively as a reduction in the amortized cost of the loan if there is significant doubt as to the collectability of the unpaid principal balance. Loans are returned to accrual status when principal and interest amounts contractually due are brought current and future payments are reasonably assured. At FV: In accordance with accounting standards, any loans for which FV was previously elected continue to be measured as such. Interest income is recognized in the same manner on loans reported at FV as on non-FV loans, except in regard to origination fees and costs which are recognized immediately upon FV election. The changes in FV of loans are reported within noninterest income as Net gain (loss) on loans accounted for under the fair value option. FV of loans includes adjustments for historical credit losses, market liquidity, and economic conditions. The Company values performing accrual loans on a pool basis. Loans that have experienced credit deterioration are valued individually based on resolution plans developed by the Company based on timing and amount of expected future cash flows from all sources of repayment, including both cash flows of the borrower as a going concern as well as the liquidation of collateral and pursuit of personal guarantees. Held for Sale At LCM: Net unrealized losses, if any, on loans without a FV election, are recognized through a valuation allowance and recorded as a charge to Other noninterest income. The cost basis of loans HFS includes unamortized loan origination fees and costs. The pro-rata portion, based on the percent of the total loan sold, of the remaining deferred fees and costs are recognized as an adjustment to the gain on sale. Not electing FV generally results in a larger discount being recorded on the origination date. This discount will subsequently be accreted into interest income over the underlying loan’s remaining term using the effective interest method. Management made this change of election in alignment with its ongoing effort to reduce volatility and drive more predictable revenue. If the transfer is accounted for as a sale, the loans are derecognized from the Company’s consolidated balance sheet and a gain or loss is recognized in net gains on sales of loans line item on the consolidated statements of income. The gain on sale recognized in income is the sum of the premium on the guaranteed loan and the FV of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan retained. If the transfer does not satisfy the aforementioned control criteria, the transaction is recorded as a secured borrowing with the transferred loans remaining on the Company’s consolidated balance sheet and proceeds recognized as a liability. At FV: In accordance with accounting standards, any loans for which FV was previously elected continue to be measured as such. Interest income is recognized in the same manner on loans reported at FV as on non-FV loans, except in regard to origination fees and costs which are recognized immediately upon FV election. The changes in FV of loans are reported within noninterest income as Net gain (loss) on loans accounted for under the fair value option. FV of loans includes adjustments for historical credit losses, market liquidity, and economic conditions.
Fair Value and the Fair Value Option	Fair Value and the Fair Value Option Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, management used various valuation approaches. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). The levels of the fair value hierarchy are as follows: Level 1Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets. Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, derivative contracts and loans held-for-sale. Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing assets, warrant liabilities, joint ventures, guaranteed loans held at fair value, and highly structured or long-term derivative contracts. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company assesses the levels of assets and liabilities at each measurement date. There were no transfers to or from Level 3 of the fair value hierarchy for assets and liabilities during the year ended December 31, 2023 or 2022. Level 1 investments were valued using quoted market prices. Level 2 investments were valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. The Company has two joint venture investments. For TSO JV, the Company calculates the fair value of the investment based on the NAV of the entity. The fair value of the investment is equivalent to 50% of the total NAV of the JV, which represents the Company’s share of the entity and is based upon the practical expedient method permitted under ASC 820. For NCL JV, the Company uses a discounted cash flow methodology and adjusts the NAV of the entity by a fair value adjustment for the fixed rate debt liability. Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded. The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded. In addition recent changes in inflation and base interest rates, supply chain disruptions, significant market volatility, risk of recession, recent economic and market events, unrelated bank failures and declines in depositor confidence in depository institutions, the ongoing war between Russia and Ukraine and general uncertainty surrounding the financial and political stability of the United States, United Kingdom, the European Union and China could further negatively impact the fair value of the Company’s investments after December 31, 2023, in addition to other circumstances and events that are not yet known. The Company applies fair value accounting to certain of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurement (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions reflect those that management believe market participants would use in pricing the financial instrument at the measurement date. The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value was greatest for financial instruments classified as Level 3. Any changes to the valuation methodology are reviewed by management to confirm that the changes are appropriate. As markets change, new products develop and the pricing for products becomes more or less transparent, the Company will continue to refine its valuation methodologies. See further description of fair value methodology in NOTE 9—FAIR VALUE MEASUREMENTS. Loans for which the FV option were elected are measured at FV and classified as either HFS or HFI, as outlined above. Not electing FV generally results in a larger discount being recorded on the date of the sale. This discount will subsequently be accreted into interest income over the underlying loan’s remaining term using the effective interest method. Management made this election in alignment with its ongoing effort to reduce volatility and drive more predictable revenue. In accordance with accounting standards, any loans for which FV was previously elected continue to be measured as such. Interest income is recognized in the same manner on loans reported at FV as on non-FV loans, except in regard to origination fees and costs which are recognized immediately upon FV election. The changes in FV of loans are reported in noninterest income as Net gain (loss) on loans accounted for under the fair value option. FV of loans includes adjustments for historical credit losses, market liquidity, and economic conditions.
Allowance for Credit Losses – Loans	Allowance for Credit Losses – Loans Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”) approach requires an estimate of the credit losses expected over the life of a loan (or pool of loans). The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net, lifetime amount expected to be collected on the loans. Loan losses are charged off against the allowance when management believes a loan balance is uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, which generally includes larger non-accruing commercial loans. The discounted cash flow (“DCF”) method is used to estimate expected credit losses for all loan portfolio segments measured on a collective (pool) basis. For each loan segment, cash flow projections are generated at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, probability of default, and loss given default. The modeling of prepayment speeds is based on a combination of historical internal data and peer data. Regression analysis of historical internal and peer data is used to determine suitable loss drivers to utilize when modeling lifetime probability of default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. The SBA 7(a) loan portfolio is the single loan pool where management solely utilizes historical internal data to determine the loss rate as an input to the model. The data utilized represents the most recent economic cycle and management determines the loss rate by analyzing defaulted principal and net charge offs to calculate the historical loss rate. For all loan pools utilizing the DCF method, management utilizes various economic indicators such as changes in unemployment rates, gross domestic product, real estate values, and other relevant factors as loss drivers. For all DCF models, management has determined that due to historic volatility in economic data, four quarters currently represents a reasonable and supportable forecast period, followed by a four-quarter reversion to historical mean levels for each of the various economic indicators. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Specific instrument effective yields are calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value (“NPV”). An allowance is established for the difference between the instrument’s NPV and amortized cost basis. The allowance evaluation also considers various qualitative factors, such as: (i) changes to lending policies, underwriting standards and/or management personnel performing such functions, (ii) delinquency and other credit quality trends, (iii) credit risk concentrations, if any, (iv) changes to the nature of the Company's business impacting the loan portfolio, and (v) other external factors, that may include, but are not limited to, results of internal loan reviews, stress testing, examinations by bank regulatory agencies, or other events such as a natural disaster. Significant management judgment is required at each point in the measurement process. Arriving at an appropriate level of allowance involves a high degree of judgment. The determination of the adequacy of the allowance and provisioning for estimated losses is evaluated regularly based on review of loans, with particular emphasis on non-performing and other loans that management believes warrant special consideration. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. The Company’s historical credit loss experience provides the basis for the estimation of expected credit losses, supplemented with peer loss information, and results in expected probabilities of default and expected losses given default. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, production metrics, property values, or other relevant factors. Expected losses are applied to loans grouped in portfolio segments, which are pools of loans aggregated based on type of borrower and collateral which is generally based upon federal call report segmentation. Portfolio segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled. These portfolio segments are as follows: Commercial Real Estate: The commercial real estate portfolio is comprised of loans to borrowers on small offices, owner-occupied commercial buildings, industrial/warehouse properties, income producing/investor real estate properties, and multi-family loans secured by first mortgages. The Company’s underwriting standards generally target a loan-to-value ratio of 75%, depending on the type of collateral, and requires debt service coverage of a minimum of 1.2 times. Commercial & Industrial: The commercial & industrial portfolio consists of loans made for general business purposes consisting of short-term working capital loans, equipment loans and unsecured business lines. SBA 7(a): The SBA 7(a) portfolio includes loans originated under the federal Section 7(a) loan program. The SBA is an independent government agency that facilitates one of the nation’s largest sources of SMB financing by providing credit guarantees for its loan programs. SBA 7(a) loans are partially guaranteed by the SBA, with SBA guarantees typically ranging between 50% and 90% of the principal and interest due. Under the SBA’s 7(a) lending program, a bank or other lender may underwrite loans between $5,000 and $5.0 million for a variety of general business purposes based on the SBA’s loan program requirements. The guaranteed portion of the loans are held for sale and carried at LCM and therefore are not subject to CECL. The unguaranteed portion of the loans that are held on balance sheet at amortized cost are subject to CECL. Individually Evaluated Loans: Loans that do not share risk characteristics with existing pools are evaluated on an individual basis. For loans that are individually evaluated and collateral dependent, financial loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and management expects repayment of the financial asset to be provided substantially through the sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral or going concern, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral. When repayment is expected to be from the sale of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. Accrued Interest. Accrued interest receivable balances are presented within other assets on the consolidated balance sheet. Accrued interest is excluded from the measurement of the allowance for credit losses, including investments and loans. Generally, accrued interest is reversed when a loan is placed on non-accrual or is written-off. Current year accrued interest is reversed through interest income while accrued interest from prior years is written-off through the ACL. Historically, we have not experienced uncollectible accrued interest receivable on investment debt securities. Allowance for off-balance sheet credit exposures. The exposure is a component of other liabilities in the consolidated balance sheet and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include unused portions of lines of credit and standby and commercial letters of credit. The process used to determine the allowance for these exposures is consistent with the process for determining the allowance for loans, as adjusted for estimated funding probabilities or loan equivalency factors. A charge (credit) to provision for credit losses on the consolidated statements of income is made to account for the change in the allowance on off-balance sheet exposures between reporting periods.
Allowance for Credit Losses – Available-for Sale (“AFS”) Debt Securities	Allowance for Credit Losses – Available-for Sale (“AFS”) Debt Securities The impairment model for AFS debt securities differs from the CECL approach utilized for financial instruments measured at amortized cost because AFS debt securities are measured at fair value. For AFS debt securities in an unrealized loss position, Newtek Bank first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities AFS that do not meet the aforementioned criteria, in making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, failure of the issuer of the debt security to make scheduled interest or principal payments, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. The cash flows should be estimated using information relevant to the collectability of the security, including information about past events, current conditions and reasonable and supportable forecasts. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the AFS security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. As of December 31, 2023, the Company determined that the unrealized loss positions in the AFS securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts Technology: The allowance for doubtful accounts is established by management through provisions for bad debts charged against income. Amounts deemed to be uncollectible are charged against the allowance for doubtful accounts and subsequent recoveries, if any, are credited to income. The amount of the allowance for doubtful accounts is inherently subjective, as it requires making material estimates which may vary from actual results. Management’s ongoing estimates of the allowance for doubtful accounts are particularly affected by the performance of the client in their ability to provide the Company with future receivables coupled with the collections of their current receivables. The allowance consists of general and specific components. The specific component relates to a client’s aggregate net balance that is owed to the Company that is classified as doubtful. The general component covers non-classified balances and is based on historical loss experience. A client’s aggregate net balance is considered uncollectible when, based on current information and events, it is probable that the Company will be unable to collect the receivable payments or the Company has greatly reduced the amount of receivables to be purchased. The Company’s charge-off policy is based on a client-by-client review for which the estimated uncollectible portion is charged off against the corresponding client’s net balance and the allowance for doubtful accounts.
Settlement Receivable	Settlement Receivable Settlement receivable represents amounts due from third parties for guaranteed portions of SBA 7(a) loans which have been sold at year-end but have not yet settled. The guaranteed portion of SBA 7(a) principal balances that have been sold but not yet settled at December 31, 2023 was $56.5 million. The settlement receivable also includes $5.7 million of premiums, which have been recognized in Net Gains on Sales of Loans.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill is an indefinite lived asset, which is not amortized and is instead subject to impairment testing, at least annually. Intangible assets, such as customer merchant accounts, with finite lives are amortized over an estimated useful life of 66 to 120 months. (See NOTE 8—GOODWILL AND INTANGIBLE ASSETS.) The Company considers the following to be some examples of indicators that may trigger an impairment review outside of its annual impairment review: (i) significant under-performance or loss of key contracts acquired in an acquisition relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of the acquired assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s fair value for a sustained period of time; and (vi) regulatory changes. In assessing the recoverability of the Company’s goodwill and customer merchant accounts, the Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. These include estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company, the period over which cash flows will occur, and determination of the Company’s cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and conclusions on impairment.
Leases - Right of use assets and lease liabilities	Leases - Right of use assets and lease liabilities Under ASC 842, operating lease expense is generally recognized on a straight-line basis over the term of the lease. The Company has entered into operating lease agreements for office space with remaining contractual terms up to three years, some of which include renewal options that extend the leases for up to 10 years. These renewal options are not considered in the remaining lease term unless it is reasonably certain the Company will exercise such options. The operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As the rate implicit in the leases generally is not readily determinable for our operating leases, the discount rates used to determine the present value of our lease liability are based on our incremental borrowing rate at the lease commencement date and commensurate with the remaining lease term. Our incremental borrowing rate for a lease is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are excluded from our weighted-average remaining lease term.
Transfers and Servicing of Financial Assets	Transfers and Servicing of Financial Assets For a transfer of financial assets to be considered a sale, the transfer must meet the sale criteria of ASC 860, which, at the time of the transfer, requires that the transferred assets qualify as recognized financial assets and the Company surrender control over the assets. Such surrender requires that the assets be isolated from the Company, even in bankruptcy or other receivership, the purchaser have the right to pledge or sell the assets transferred and the Company not have an option or obligation to reacquire the assets. Assets related to transactions that do not meet ASC Topic 860 — Transfers and Servicing (“ASC Topic 860”) requirements for accounting sale treatment are reflected in the Company’s consolidated statements of assets and liabilities as investments and the sale proceeds are recognized as a liability. Assets owned by securitization trusts and included in the Company’s consolidated financial statements. The creditors of the special purpose entities have received security interests in such assets and such assets are not intended to be available to the creditors of the Company. From 2010 through December 31, 2023, NSBF engaged in thirteen (13) securitizations of the unguaranteed portions of its SBA 7(a) loans. A securitization uses a special purpose entity (the “Trust”), which is considered a variable interest entity. Applying the consolidation requirements for VIEs under the accounting rules in ASC Topic 860, Transfers and Servicing, and ASC Topic 810, Consolidation, which became effective January 1, 2010, the Company determined that as the primary beneficiary of the securitization vehicles, based on its power to direct activities through its role as servicer for the Trusts and its obligation to absorb losses and right to receive benefits, it needed to consolidate the Trusts. The Company therefore consolidates the entities using the carrying amounts of the Trusts’ assets and liabilities and reflects the assets in SBA 7(a) Unguaranteed Loans and reflects the associated financing in Notes Payable - Securitization trusts on the Consolidated Statements of Assets and Liabilities. The Company accounts for servicing assets in accordance with ASC Topic 860-50 - Transfers and Servicing - Servicing Assets and Liabilities. The Company and Newtek Bank earn servicing fees from the guaranteed portions of SBA 7(a) loans they originate and sell. The Company has also recorded servicing assets/liabilities on loans sold where the Company retained an obligation to service the loan sold. Servicing assets for loans originated by the Company’s nonbank subsidiaries are measured at FV at each reporting date and the Company reports changes in the FV of servicing assets in earnings in the period in which the changes occur. The valuation model for servicing assets incorporates assumptions including, but not limited to, servicing costs, discount rate, prepayment rate, and default rate. Considerable judgement is required to estimate the fair value of servicing assets and as such these assets are classified as Level 3 in our fair value hierarchy. Servicing assets for loans originated by Newtek Bank are measured at LCM and amortized based on their estimated life and impairment is recorded to the extent the amortized cost exceeds the asset’s FV.
Accounts Receivable	Accounts Receivable Accounts receivable represent amounts owed to the Company by third parties for electronic payment processing, technology services and related residuals. The Company estimates losses on accounts receivable based on known troubled accounts and historical experience of losses incurred.
Accrued Interest Receivable	Accrued Interest Receivable Upon the Acquisition and adoption of CECL, the Company made the following elections regarding accrued interest receivable: (1) presented accrued interest receivable balances separately within other assets balance sheet line item; (2) excluded interest receivable that is included in amortized cost of financing receivables from related disclosures requirements and (3) continued our policy to write off accrued interest receivable by reversing interest income. For loans, write off typically occurs upon becoming over 90 to 120 days past due. Historically, the Company has not experienced uncollectible accrued interest receivable on investment securities.
Derivative Instruments	Derivative Instruments The Company uses derivative instruments primarily to economically manage the fair value variability of fixed rate assets and liabilities caused by interest rate fluctuations. Derivative instruments consist of interest rate futures and are held at fair value on the balance sheet. Collateral posted with our futures counterparties is segregated in the Company’s books and records. Interest rate futures are centrally cleared by the Chicago Mercantile Exchange (“CME”) through a futures commission merchant. Interest rate futures that are governed by an ISDA agreement provide for bilateral collateral pledging based on the counterparties’ market value. The counterparties have the right to re-pledge the collateral posted but have the obligation to return the pledged collateral, or, if the Company agrees, substantially the same collateral as the market value of the interest rate futures change. The Company is required to post initial margin and daily variation margin for interest rate futures that are centrally cleared by CME. CME determines the fair value of our centrally cleared futures, including daily variation margin. Effective January 3, 2017, CME amended its rulebooks to legally characterize daily variation margin payments for centrally cleared interest rate futures as settlement rather than collateral. As a result of this rule change, variation margin pledged on the Company’s centrally cleared interest rate futures is settled against the realized results of these futures.
Fixed Assets	Fixed Assets Fixed assets, which are composed of merchant processing terminals, software, telephone systems, computer equipment, automobile, website and leasehold improvements, are stated at cost less accumulated depreciation and amortization. Depreciation of fixed assets is provided on a straight-line basis using estimated useful lives of the related assets ranging from three to seven years. Amortization of leasehold improvements is provided on a straight-line basis using the lesser of the useful life of the asset, which is generally three to five years, or lease term.
Due to Participants	Due to Participants Due to participants represents amounts due to third party investors in the SBA guaranteed portion of SBA 7(a) and PPP loans. When the Company receives principal payments, including PPP loan forgiveness, after the loan has been either partially or fully sold to the participant, the remittances received by the Company are either owed in part or in full to the participant and amounts are recorded as a liability on the consolidated statements of financial condition.
Dividends to Shareholders	Dividends to Shareholders Dividends and distributions to the Company's stockholders are recorded on the declaration date. The timing and amount to be paid out as a dividend or distribution is determined by the Company's Board each quarter.
Non-Interest Income	Non-Interest Income Dividend income: Dividend income is recognized on an accrual basis for equity securities to the extent that such amounts are expected to be collected or realized. In determining the amount of dividend income to recognize, if any, from cash distributions on equity securities, we assess many factors, including the joint ventures’ and non-controlled equity investments’ cumulative undistributed income and operating cash flow. Cash distributions from equity securities received in excess of such undistributed amounts are recorded first as a reduction of our investment and then as a realized gain on investment. Servicing income: The Company earns servicing income related to the guaranteed portions of SBA 7(a) and ALP loan investments sold into the secondary market. These recurring servicing fees are earned and recorded daily. Servicing income is earned for the full term of the loan or until the loan is repaid. Technology and IT support income Our technology segment sells a range of services and goods, including managed IT services, product and procurement services, professional services, webhosting, secure private cloud hosting, and backup disaster recovery. Our technology segment sells hardware and software products on both a stand-alone basis without any services and as solutions bundled with services. When our technology segment provides a combination of hardware and software products with the provision of services, it separately identifies its performance obligations under its contract with the customer as the distinct goods (hardware and/or software products) or services that will be provided. The total transaction price for an arrangement with multiple performance obligations is allocated at contract inception to each distinct performance obligation in proportion to its stand-alone selling price. The stand-alone selling price is the price at which it would sell a promised good or service separately to a customer. Our technology segment estimates the price based on observable inputs, including direct labor hours and allocatable costs, or uses observable stand-alone prices when they are available. Our technology segment’s professional services include the design and implementation of a wide range of IT products and services. Such services are typically provided by us or third-party sub-contractor vendors on a stand-alone basis. Revenue is measured based on the consideration specified in a contract with a customer. Our technology segment recognizes revenue when it satisfies a performance obligation by transferring control of a product or service or by arranging for the sale of a vendor’s products or service to a customer. Our technology segment recognizes revenue from sale of services as its technology segment performs the underlying services, typically based on time and materials basis based upon hours incurred for the performance completed to date for which we have the right to consideration. Our technology segment recognizes revenue on sales of goods at a point in time when customer takes control of goods, which typically occurs when title and risk of loss have passed to the customer. Our technology segment recognizes revenue on a gross basis for each of its services and product offerings principally because it is primarily responsible for fulfilling the promise to provide specified goods or service and it has discretion in establishing the price of specified good or service. Electronic payment processing income: Revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To achieve this core principle, the Company applies the following five steps: 1. Identify the contract with a customer 2. Identify the performance obligations in the contract 3. Determine the transaction price 4. Allocate the transaction price to the performance obligations in the contract 5. Recognize revenue when or as the Company satisfies a performance obligation Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities. NMS’s revenue is primarily derived from electronic payment processing and related fee income. Electronic payment processing and fee income is derived from NMS’s electronic processing of credit and debit card transactions that are authorized and captured through third-party networks. Typically, merchants are charged for these processing services by applying a percentage to the dollar amount of each transaction plus a flat fee per transaction. Certain merchant customers are charged miscellaneous fees, including fees for handling charge-backs or returns, monthly minimum fees, statement fees and fees for other miscellaneous services. Revenues derived from the electronic processing of MasterCard®, Visa®, American Express® and Discover® sourced credit and debit card transactions are reported gross of amounts paid to sponsor banks. NMS's performance obligations are to stand ready to provide holistic electronic payment processing services consisting of a series of distinct elements that are substantially the same and have the same pattern of transfer over time. NMS’s promise to its customers is to perform an unknown or unspecified quantity of tasks and the consideration received is contingent upon the customers’ use (i.e., number of payment transactions processed, number of cards on file, etc.); as such, the total transaction price is variable. The Company allocates the variable fees charged to the day in which it has the contractual right to bill under the contract. ASU 2014-09, "Revenues from Contracts with Customers (“Topic 606”)" (“ASC 606”) requires that the Company determine for each customer arrangement whether revenue should be recognized at a point in time or over time. For the quarter ended December 31, 2023, substantially all of the Company’s revenues were recognized at a point in time. ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations; however, as permitted by ASC 606, the Company has elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. As described above, the Company’s most significant performance obligations consist of variable consideration under a stand-ready series of distinct days of service. Such variable consideration meets the specified criteria for the disclosure exclusion; therefore, the majority of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied is variable consideration that is not required for this disclosure. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material. Receivable fees; Receivable fees are derived from the funding (purchase) of receivables from the Company’s finance clients. The Company recognizes revenue on the date receivables are purchased at a percentage of face value as agreed to by the client. The Company also has arrangements with certain of its clients whereby it purchases the client’s receivables and charges a fee at a specified rate based on the amount of funds advanced against such receivables. The funds provided are collateralized and the income is recognized as earned which occurs as time passes. Realized gains or losses on joint ventures: Realized gains or losses on joint ventures are measured by the difference between the net proceeds from the disposition and the cost basis of investment, without regard to unrealized gains or losses previously recognized. The Company reports current period changes in the fair value of joint venture investments as a component of the net change in unrealized appreciation (depreciation) on joint ventures in the consolidated statements of operations Other: The Company earns a variety of fees from borrowers in the ordinary course of conducting its business, including packaging, legal, late payment and prepayment fees. All other income is recorded when earned. Other income is generally non-recurring in nature and earned as “one time” fees in connection with the origination of new loans with non-affiliates.
Electronic Payment Processing Costs	Electronic Payment Processing Costs Electronic payment processing costs consist principally of costs directly related to the processing of merchant sales volume, bank processing fees and costs paid to third-party processing networks. Such costs are recognized at the time the merchant transactions are processed or when the services are performed. In addition to costs directly related to the processing of merchant sales volume, electronic payment processing costs also include residual expenses. Residual expenses represent fees paid to third-party sales referral sources. Residual expenses are paid in accordance with contracted terms. These are generally linked to revenues derived from merchants successfully referred to the Company and that begin using the Company for merchant processing services. Such residual expenses are recognized in the Company’s consolidated statements of income. During the quarter ended December 31, 2023, the Company partnered with two sponsor banks for substantially all merchant transactions. Substantially all merchant transactions were processed by one merchant processor.
Technology Services Expenses	Technology Services Expenses Costs of services and goods sold include product costs, outbound and inbound freight costs, and direct time and materials in delivering service and goods to customers. Selling and administrative expenses include salaries and wages for staff who are not directly associated with delivering services, bonuses and incentives, employee-related expenses, facility-related expenses, marketing and advertising expense, depreciation of property and equipment, professional fees, amortization of intangible assets, provisions for losses on accounts receivable and other operating expenses.
Stock-Based Compensation	Stock – Based Compensation The Company accounts for its equity-based compensation plans using the fair value method, as prescribed by ASC Topic 718 – Stock Compensation. Accordingly, for restricted stock awards, the Company measures the grant date fair value based upon the market price of the Company’s Common Stock on the date of the grant and amortizes this fair value to salaries and benefits ratably over the requisite service period or vesting term on a straight line basis. Forfeitures are recognized as incurred.
Income Taxes	Income Taxes Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Such deferred tax assets and liabilities recorded on the statement of financial condition were a deferred tax asset, net of $5.2 million at December 31, 2023 and a deferred tax liability, net of $19.2 million at December 31, 2022, respectively. Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to income taxes in the United States and its political subdivisions. Significant judgments and estimates are required in determining the consolidated income tax expense. The Company’s U.S. federal and state income tax returns prior to fiscal year 2020 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. Interest and penalties assessed by tax jurisdictions for income tax matters are presented as income tax expense on the consolidated statement of income. Formerly, as a RIC ending with the Company’s December 31, 2022 fiscal year end, the Company was not subject to corporate level income tax. Beginning on January 1, 2023 with the start of the 2023 fiscal year, the Company no longer qualifies as a RIC and will be subject to corporate level income tax. See NOTE 21—INCOME TAXES.
Segments	Segments Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management has determined that the Company has four reportable operating segments: Banking, Non-Bank SBA 7(a) Lending, Technology, and Payments as discussed more fully in NOTE 22—SEGMENTS. In determining the appropriateness of a segment definition, the Company considers the criteria of FASB ASC 280, Segment Reporting.
Business Combinations	Business Combinations Business combinations are accounted for under the acquisition method, in which the identifiable assets acquired and liabilities assumed are generally measured and recognized at fair value as of the acquisition date, with the excess of the purchase price over the fair value of the net assets acquired recognized as goodwill. Items such as acquired income-tax related balances are recognized in accordance with other applicable GAAP, which may result in measurements that differ from fair value. Business combinations are included in the consolidated financial statements from the respective dates of acquisition. Historical reporting periods reflect only the results of legacy Company operations. Acquisition-related costs are expensed in the period incurred and presented within the applicable non-interest expense category. Additional information regarding the Company’s acquisitions can be found within NOTE 3—BUSINESS COMBINATION. Fair Value of Assets Acquired and Liabilities Assumed Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, reflecting assumptions that a market participant would use when pricing an asset or liability. In some cases, the estimation of fair values requires management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and are subject to change.
Recently Adopted Accounting Pronouncements and New Accounting Standards	Recently Adopted Accounting Pronouncements Beginning in 2023, the Company applies accounting standards applicable to our current status as a financial holding company. Current Expected Credit Losses (Topic 326) In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326) and in April 2019, the FASB issued ASU 2019-04 Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (collectively, “CECL”). CECL changed how entities measure potential credit losses for most financial assets and certain other instruments that are not measured at fair value. CECL replaced the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost. While ASU 2016-13 does not require any particular method for determining the CECL allowance, it does specify the allowance should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. CECL was effective for the Company beginning January 1, 2023; however, the Company continues to measure NSBF’s SBA 7(a) loan portfolio at fair value and intends to do so until the portfolio is completely runoff. Following the Acquisition on January 6, 2023, the Company owns and consolidates Newtek Bank, which applies CECL. Troubled Debt Restructurings and Vintage Disclosures (ASU 2022-02) In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The purpose of this guidance is twofold. First, the guidance eliminates TDR recognition and measurement guidance that has been deemed no longer necessary under CECL. The guidance also adds a requirement to incorporate current year gross charge-offs by origination year into the vintage tables. With respect to the TDR impacts, under CECL, credit losses for financial assets measured at amortized cost are determined based on the total current expected credit losses over the life of the financial asset or group of financial assets. Due to the Acquisition, any aspects of credit deterioration to include modifications to loans for borrowers experiencing financial difficulty were captured in purchase accounting and the allowance as of the Acquisition date. Therefore, credit losses on financial assets that have been modified as TDRs would have largely been incorporated in the allowance upon initial recognition. Under ASU 2022-02, the Company will evaluate whether loan modifications previously characterized as TDRs represent a new loan or a continuation of an existing loan in accordance with ASC Topic 310, Receivables. The guidance also added new disclosures that require an entity to provide information related to loan modifications that are made to borrowers that are deemed to be in financial difficulty. Following the Acquisition on January 6, 2023, the Company owns and consolidates Newtek Bank, which adopted the ASU on January 1, 2023, on a prospective basis. The impact of these amendments was not material. New Accounting Standards In June 2022, the FASB issued ASU No. 2022-03, “Fair Value Measurement (Topic 820),” which clarifies the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. ASU 2022-03 is effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. For all other entities the amendments are effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. An entity that qualifies as an investment company under Topic 946 should apply the amendments in ASU No. 2022-03 to an investment in an equity security subject to a contractual sale restriction that is executed or modified on or after the date of adoption. The Company does not expect any material impact from adopting ASU No. 2022-03 on the consolidated financial statements. Improvements to Reportable Segment Disclosures (ASU 2023-07) In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The purpose of this guidance is to improve reportable segment disclosure, primarily through enhanced disclosures about significant segment expenses. This ASU requires that an entity disclose, on an interim and annual basis, significant segment expenses that are regularly provided to the CODM and are included within the reported measure of segment profit or loss. This ASU also requires an entity to disclose, on an interim and annual basis, other segment items by reportable segment, including a qualitative description of the composition of those items. This “other” category is defined as the difference between segment profit or loss and segment revenue less significant segment expenses. Entities are also required to disclose the title and position of the individual, or the name of the group or committee, identified as the CODM. The amendments are effective on January 1, 2024, for annual reporting, and January 1, 2025, for interim reporting, with early adoption permitted. The amendments must be applied using a retrospective approach. Management does not expect the impact of these amendments to be material. Improvements to Income Tax Disclosures (ASU 2023-09) In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The purpose of this guidance is to enhance the rate reconciliation and income taxes paid disclosures. This ASU requires that an entity disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. For the state and local income tax category of the rate reconciliation, entities must disclose a qualitative description of the states and local jurisdictions that make up the majority (greater than 50 percent) of the category. For the income taxes paid disclosures, entities will be required to disclose, on an annual basis, the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes. The amendments are effective on January 1, 2025, with early adoption permitted. The amendments must be applied using either a prospective or retrospective approach. Management does not expect the impact of these amendments to be material. Business Combinations—Joint Venture Formations (ASU 2023-05) In August 2023, the FASB issued ASU 2023-05, Business Combinations – Joint Venture Formations (Subtopic 805-60). The amendments in this Update address the accounting for contributions made to a joint venture, upon formation, in a joint venture’s separate financial statements. The objectives of the amendments are to (1) provide decision-useful information to investors and other allocators of capital (collectively, investors) in a joint venture’s financial statements and (2) reduce diversity in practice. The amendments in this Update are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Additionally, a joint venture that was formed before January 1, 2025, may elect to apply the amendments retrospectively if it has sufficient information. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued (or made available for issuance), either prospectively or retrospectively. Management does not expect the impact of these amendments to be material.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 15,398	$ 53,692
Restricted cash	30,919	71,914
Interest bearing deposits in banks	137,689	0
Total cash and cash equivalents	184,006	125,606
Debt securities available-for-sale, at fair value	32,171	0
Loans held for sale, at fair value	118,867	19,171
Loans held for sale, at LCM	56,607	0
Loans held for investment, at fair value	469,801	505,268
Loans held for investment, at amortized cost, net of deferred fees and costs	336,305	0
Allowance for credit losses	(12,574)	0
Loans held for investment, at amortized cost, net	323,731	0
Federal Home Loan Bank and Federal Reserve Bank stock	3,635	0
Settlement receivable	62,230	0
Goodwill and intangibles	30,120	0
Right of use assets	5,701	6,484
Deferred tax asset, net	5,230	0
Servicing assets	39,725	30,268
Other assets	56,102	28,506
Total assets	1,429,513	998,902
Deposits:
Noninterest-bearing	10,053	0
Interest-bearing	453,452	0
Total deposits	463,505	0
Borrowings	644,122	539,326
Dividends payable	4,792	0
Lease liabilities	6,952	7,973
Deferred tax liabilities, net	0	19,194
Due to participants	23,796	35,627
Accounts payable, accrued expenses and other liabilities	37,300	21,424
Total liabilities	1,180,467	623,544
Commitment and contingencies (Note 14)
Shareholders' Equity:
Preferred stock (par value $0.02 per share; authorized 20 shares, 20 shares issued and outstanding)	19,738
Common stock (par value $0.02 per share; authorized 200,000 shares, 24,680 and 24,609 shares issued and outstanding, respectively)	492	492
Additional paid-in capital	200,913	354,243
Retained earnings	28,051	20,623
Accumulated other comprehensive loss, net of income taxes	(148)	0
Total shareholders' equity	249,046	375,358
Total liabilities and shareholders' equity	1,429,513	998,902
Joint Ventures
ASSETS
Investments	40,859	23,022
Controlled Investments
ASSETS
Investments	0	259,217
Non-Control Investments
ASSETS
Investments	$ 728	$ 1,360

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2023

Investments in and advances to affiliates

Transactions related to our joint ventures and non-controlled investments for the year ended December 31, 2023 were as follows:


Company	Fair Value at December 31, 2022		Purchases (Cost)		Principal Received		Return of Investment		Net Realized Gains/(Losses)		Net Unrealized Gains/(Losses)		Fair Value at December 31, 2023		Interest and Other Income		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

Non-Control Investments
EMCAP Loan Holdings, LLC	$	1,000	$	—	$	—	$	(564)	$	—	$	(68)	$	368	$	—	$	116
Biller Genie Software, LLC	360		—		—		—		—		—		360		—		—
Total Non-Control Investments	$	1,360	$	—	$	—	$	(564)	$	—	$	(68)	$	728	$	—	$	116

Total Affiliate 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, 2023 and December 31, 2022:


	December 31, 2023		December 31, 2022
Due to affiliated companies1	$	158	$	1,338
Due from affiliated companies2	7		1,211
Total due to/due from affiliated companies	$	151	$	127

1 Included within Other Assets

2 Included within Accounts payable, accrued expenses, and other Liabilities

Notes payable - related parties

The following table summarizes our Notes payable - related parties as of December 31, 2023 and December 31, 2022.


	December 31, 2023		December 31, 2022
Notes payable - related parties	$	—	$	24,250

The following table summarizes the income earned from our joint ventures for the periods ended December 31, 2023, December 31, 2022 and December 31, 2021:


	For the years ended December 31,
		2023		2022		2021
Servicing income1		$	1,240	$	840	$	752

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Joint ventures, cost	$ 37,864	$ 23,314
Preferred stock, par value (in dollars per share)	$ 0.02
Preferred stock, shares authorized (in shares)	20
Preferred stock, shares issued (in shares)	20
Preferred stock, shares outstanding (in shares)	20
Common stock, par value (in dollars per share)	$ 0.02	$ 0.02
Common stock, shares authorized (in shares)	200,000	200,000
Common stock, shares issued (in shares)	24,680	24,609
Common shares outstanding at end of period (in shares)	24,680	24,609
Controlled Investments
Investments, cost	$ 0	$ 131,495
Non-Control Investments
Investments, cost	$ 796	$ 1,360

BORROWINGS - 2022, 2023, 2024, 2025, 2026 and 2028 Notes (Details)								1 Months Ended			12 Months Ended
	Aug. 31, 2023 USD ($)	Jan. 23, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 29, 2021 USD ($)	Feb. 22, 2021 USD ($)	Nov. 27, 2020 USD ($)	Jul. 25, 2019 USD ($)	Jan. 31, 2021 USD ($)	Aug. 31, 2019 USD ($)	Feb. 28, 2018 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	May 20, 2021 USD ($)	Mar. 31, 2021 USD ($)	Feb. 16, 2021 USD ($)	Feb. 21, 2018 USD ($)
Debt Instrument [Line Items]
Interest rate											7.04%	6.11%
Aggregate principal amount											$ 644,122,000	$ 539,326,000
Loss on extinguishment of debt											271,000	417,000	$ 1,552,000
Medium-term Notes
Debt Instrument [Line Items]
Interest expense											51,900,000	26,300,000	20,500,000
2028 Notes
Debt Instrument [Line Items]
Interest expense											1,200,000	0	0
2028 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Loans	$ 40,000,000										$ 40,000,000	$ 0
Interest rate	8.00%										8.00%	0.00%
Additional principal purchased	$ 5,000,000
Proceeds before expenses	$ 38,000,000
Aggregate principal amount											$ 38,378,000	$ 0
2023 Notes
Debt Instrument [Line Items]
Interest expense											0	0	500,000
2023 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Loans					$ 57,500,000												$ 50,000,000
Interest rate																	6.25%
Additional principal purchased										$ 7,500,000
Net proceeds										$ 55,200,000
Redemption price per note					25
Loss on extinguishment of debt												1,000,000
2024 Notes
Debt Instrument [Line Items]
Interest expense											2,400,000	$ 2,400,000	4,700,000
2024 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Loans							$ 55,000,000				$ 38,250,000			$ 10,000,000		$ 5,000,000
Interest rate							5.75%				5.75%	5.75%
Additional principal purchased									$ 8,250,000
Net proceeds							$ 53,300,000		$ 8,000,000
Redemption price per note				25
Principal redeemed				$ 40,000,000
Aggregate principal amount				$ 78,250,000							$ 38,124,000	$ 37,903,000
Loss on extinguishment of debt												600,000
2025 Notes
Debt Instrument [Line Items]
Interest expense											0	400,000	1,100,000
2025 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Loans			$ 15,000,000			$ 5,000,000		$ 10,000,000
Interest rate						6.85%
Net proceeds		$ 48,940,000				$ 4,800,000
Additional principal issuable															$ 10,000,000
Redemption price per note			25
2026 Notes
Debt Instrument [Line Items]
Interest expense											7,000,000	7,000,000	$ 6,700,000
2026 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Loans								$ 115,000,000			$ 115,000,000	$ 115,000,000
Interest rate								5.50%			5.50%	5.50%
Net proceeds								$ 111,300,000
Aggregate principal amount											$ 113,564,000	$ 112,846,000
2026 Notes, Overallotment Option \| Medium-term Notes
Debt Instrument [Line Items]
Loans								$ 15,000,000

INVESTMENTS - Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	$ 32,372
Unrealized Gains	0
Unrealized Losses	201
Fair Value	32,171
Total available for sale securities pledged	30,730	$ 0
U.S. Treasury notes
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	29,372
Unrealized Gains	0
Unrealized Losses	67
Fair Value	29,305
Government agency debentures
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	3,000
Unrealized Gains	0
Unrealized Losses	134
Fair Value	2,866
Pledged for deposits
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Total available for sale securities pledged	0	0
Pledged for borrowings and other
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Total available for sale securities pledged	$ 30,730	$ 0

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Transactions with Joint Ventures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Servicing income	$ 18,300	$ 13,700
Joint Ventures \| Related Party
Related Party Transaction [Line Items]
Servicing income	$ 1,240	$ 840	$ 752

BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

At December 31, 2023 and December 31, 2022, the Company had borrowings composed of the following:


	December 31, 2023						December 31, 2022
	Commitments		Borrowings Outstanding		Weighted Average Interest Rate		Commitments		Borrowings Outstanding		Weighted Average Interest Rate
Bank Lines of Credit:
Capital One line of credit - guaranteed1	$	—	$	—	—	%	$	150,000	$	10,500	6.75	%
Capital One line of credit - unguaranteed1	—		—		—	%	—		45,385		7.75	%
Webster NMS Note2	54,871		36,628		7.94	%	—		—		—
SPV I Capital One Facility2	60,000		16,080		8.20	%	—		—		—
SPV II Deutsche Bank Facility2	50,000		6,799		10.04	%	—		—		—
SPV III One Florida Bank Facility2	30,000		257		9.50	%	—		—		—
FHLB Advances	113,891		23,184		2.13	%	—		—		—
Notes issued by Parent Company:
2024 Notes2	38,250		38,124		5.75	%	38,250		37,903		5.75	%
2025 5.00% Notes2	30,000		29,563		5.00	%	30,000		29,306		5.00	%
2025 8.125% Notes2,3	50,000		49,433		8.13	%	—		—		—	%
2026 Notes2	115,000		113,564		5.50	%	115,000		112,846		5.50	%
2028 Notes2,4	40,000		38,378		8.00	%	—		—		—	%
Notes payable - related parties	—		—		—	%	50,000		24,250		6.72	%
Notes payable - Securitization Trusts2,5	296,223		292,112		7.84	%	283,143		279,136		6.19	%
Total	$	878,235	$	644,122	7.04	%	$	666,393	$	539,326	6.11	%

(1) Total combined commitments of the guaranteed and unguaranteed lines of credit were $150.0 million at December 31, 2022. The Capital One line of credit was paid off and terminated in October of 2023.

(2) Net of deferred financing costs.

(3) On January 23, 2023 the Company completed a private placement offering of $50.0 million aggregate principal amount of 8.125% notes due 2025, payable semiannually on February 1 and August 1 each year, commencing on August 1, 2023. The Notes will mature on February 1, 2025.

(4) On August 31, 2023, the Company completed a registered offering of $40.0 million in aggregate principal amount of its 8.00% 2028 Notes payable quarterly on March 1, June 1, September 1 and December 1 of each year, commencing on December 1, 2023. The 2028 Notes trade on the Nasdaq Global Market under the trading symbol “NEWTI.”

(5) At December 31, 2023 and 2022, the net assets of the consolidated Trusts totaled $14.8 million and $14.1 million, respectively.

Outstanding borrowings that are presented net of deferred financing costs, which include the bank lines of credit, the 2024, 2025, 2026, and 2028 Notes, and the Notes payable - Securitization Trusts consisted of the following:


	December 31, 2023			December 31, 2022
	Principal balance	Unamortized deferred financing costs	Net carrying amount1	Principal balance	Unamortized deferred financing costs	Net carrying amount
Bank Lines of Credit:


Webster NMS Note	36,881	(253)	36,628	—	—	—
SPV I Capital One Facility	16,300	(220)	16,080	—	—	—
SPV II Deutsche Bank Facility	6,900	(101)	6,799	—	—	—
SPV III One Florida Bank Facility	375	(118)	257	—	—	—
Notes issued by Parent Company:
2024 Notes	38,250	(126)	38,124	38,250	(347)	37,903
2025 5.00% Notes	30,000	(437)	29,563	30,000	(694)	29,306
2025 8.125% Notes	50,000	(567)	49,433	—	—	—
2026 Notes	115,000	(1,436)	113,564	115,000	(2,154)	112,846
2028 Notes	40,000	(1,622)	38,378	—	—	—
Notes Payable - Securitization Trusts	296,223	(4,111)	292,112	283,143	(4,007)	279,136

(1) Net of deferred financing costs. Negative borrowings outstanding are the result of the facilities being paid down to zero principal balance as of December 31, 2023 while the associated deferred financing costs remain.

Schedule of carrying values and estimated fair values of debt instruments

The fair values of the fixed rate 2028 Notes, 2026 Notes and 2024 Notes are based on the closing public share price on the date of measurement as included in the chart below.


	December 31, 2023				December 31, 2022
	Closing Price		Fair Value		Closing Price	Fair Value
2028 Notes	$	25.04	$	40,070	n/a	n/a
2026 Notes	23.75		109,250		24.83	114,218
2024 Notes	24.99		38,235		24.80	37,944

Schedule of maturities of long-term debt

Total expected principal repayments on the Company’s borrowings for the next five fiscal years and thereafter are as follows:


Year Ending December 31,	Borrowings
2024	$	53,109
2025	104,701
2026	117,094
2027	41,985
2028	40,000
Thereafter	296,223
	$	653,112

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69B

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Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

INVESTMENTS - Joint Venture Summarized Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Investment Company, Balance Sheet Items [Abstract]
Cash	$ 223,692	$ 256,333	$ 197,143	$ 256,333	$ 223,692	$ 15,398	$ 53,692
Restricted cash						30,919	71,914
Other assets	49,848	48,211	51,479	48,211	49,848	56,102	28,506
Total assets	1,393,495	1,451,021	1,259,799	1,451,021	1,393,495	1,429,513	998,902
Total liabilities	1,151,293	1,215,572	1,027,213	1,215,572	1,151,293	1,180,467	623,544
Net assets	242,202	235,449	232,586	235,449	242,202	249,046	375,358	$ 403,887
Total liabilities and shareholders' equity	1,393,495	1,451,021	1,259,799	1,451,021	1,393,495	1,429,513	998,902
Investment Company, Income and Expense [Abstract]
Net investment income (loss)							(6,476)
Realized gain (loss) on derivative transactions						834	445	590
Unrealized gain (loss) on derivative transactions						(699)	183	(183)
Net increase (decrease) in net assets resulting from operations	$ 10,919	$ 7,011	$ 18,550	$ 25,561	$ 36,480	47,329	32,311	84,142
Newtek Conventional Lending, LLC
Investment Company, Balance Sheet Items [Abstract]
Cash						612	791
Restricted cash						3,298	2,362
Investments in loans, at fair value						70,083	78,595
Cost						68,404	78,785
Other assets						1,614	1,807
Total assets						75,607	83,555
Securitization notes payable						38,805	49,273
Funds in process to PMT's payroll customers						905	1,109
Total liabilities						39,710	50,382
Net assets						35,897	33,173
Total liabilities and shareholders' equity						75,607	83,555
Investment Company, Income and Expense [Abstract]
Interest and other income						6,160	6,966	6,300
Total expenses						2,524	2,916	2,612
Net investment income (loss)						3,636	4,050	3,688
Unrealized appreciation on investments						1,869	(4,494)	282
Net increase (decrease) in net assets resulting from operations						5,505	(444)	3,970
Newtek-TSO JV
Investment Company, Balance Sheet Items [Abstract]
Cash						4,401	1,046
Restricted cash						1,183	498
Investments in loans, at fair value						66,689	22,449
Cost						62,695	21,038
Other assets						1,374	2,034
Total assets						73,647	26,027
Bank notes payable						29,636	12,950
Funds in process to PMT's payroll customers						1,092	206
Total liabilities						30,728	13,156
Net assets						42,919	12,871
Total liabilities and shareholders' equity						73,647	26,027
Investment Company, Income and Expense [Abstract]
Interest and other income						3,823	101	0
Total expenses						4,430	385	0
Net investment income (loss)						(607)	(284)	0
Unrealized appreciation on investments						2,580	1,412	0
Realized loss on investments						(16)	0	0
Realized gain (loss) on derivative transactions						399	0	0
Unrealized gain (loss) on derivative transactions						(911)	218	0
Net increase (decrease) in net assets resulting from operations						$ 1,445	$ 1,346	$ 0

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

Reclassifications

Certain prior period amounts, to the extent comparable, have been reclassified to conform to the current period presentation.

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES:

Use of Estimates in the Preparation of Financial Statements

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are complete. Actual results could differ from those estimates.

Cash

The Company considers all highly liquid instruments with maturities of three months or less when purchased to be cash equivalents. Invested cash is held exclusively at financial institutions of high credit quality. As of December 31, 2023, cash deposits in excess of insured amounts totaled $37.2 million. The Company has not experienced any losses with respect to cash balances in excess of insured amounts and management does not believe there was a significant concentration of risk with respect to cash balances as of December 31, 2023.

Restricted cash

Restricted cash includes amounts due on SBA loan-related remittances to third parties, cash reserves established as part of agreements with the SBA, cash reserves associated with securitization transactions, and cash margin as collateral for derivative instruments. As of December 31, 2023, total restricted cash was $30.9 million.

Interest bearing deposits in banks

The Company’s interest bearing deposits in banks reflects cash held at other financial institutions that earn interest.

The following table provides a reconciliation of cash, restricted cash, and interest bearing deposits in banks as of December 31, 2023 and 2022:


	December 31, 2023		December 31, 2022
Cash and due from banks	$	15,398	$	53,692
Restricted cash	30,919		71,914
Interest bearing deposits in banks	137,689		—
Cash and restricted cash	$	184,006	$	125,606

Debt securities, available for sale

The Company’s securities portfolio primarily consists of available for sale debt securities held by Newtek Bank that are classified as “available for sale” and carried at their estimated fair value, with any unrealized gains or losses, net of taxes, reported as accumulated other comprehensive income or loss in stockholders’ equity. The fair values of our instruments are affected by changes in market interest rates and credit spreads. In general, as interest rates rise and/or credit spreads widen, the fair value of instruments will decline. As interest rates fall and/or credit spreads tighten, the fair value of instruments will rise. The Company evaluates available-for-sale instruments in unrealized loss positions at least quarterly to determine if an allowance for credit losses is required.

Purchases and sales of debt securities are accounted for on a trade-date basis.

Loans

Held for Investment

Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are classified as held for investment.

At amortized cost, net of deferred fees and costs: Loans are reported at their principal amount outstanding, net of charge-offs, deferred origination costs and fees and purchase premiums and discounts. Loan origination and commitment fees and certain direct and indirect costs incurred in connection with loan originations are deferred and amortized to income over the life of the related loans as an adjustment to yield. Premiums or discounts on purchased portfolios are amortized or accreted to income using the level yield method over the remaining period to contractual maturity. Currently, all LHI at amortized cost, net of deferred fees and costs are originated and carried at Newtek Bank and have a weighted average life of five years. Newtek Bank originates SBA 7(a) loans, under its PLP status, and typically sells the guaranteed portions and holds the unguaranteed portions for investment. Newtek Bank also holds CRE and C&I loans for investment. The net amount of deferred fees and costs as of December 31, 2023 was $1.2 million.

At fair value: On a quarterly basis, management determines the fair values of the retained unguaranteed portions of SBA 7(a) loans HFI, and unrealized changes in FV are recognized in the income statement. The loans within this portfolio were originated by NSBF. Refer to the “Fair Value Option” section below for further information on loans HFI carried at FV under the FV option.

Held for Sale

Management designates loans as HFS based on its intent to sell loans, or portions of loans, in established secondary markets or to participant banks and credit unions. Salability requirements of government guaranteed portions include, but are not limited to, full disbursement of the loan commitment amount. The Company occasionally transfers loans between the HFS and HFI classifications based on its intent and ability to hold or sell loans. Management’s intent to sell may be impacted by secondary market conditions, loan credit quality, or other factors.

At lower of amortized cost basis or fair value: Both mortgage and non-mortgage loans classified as HFS are carried at the LCM. If the amortized cost basis of a loan exceeds FV, a valuation allowance should be established for the difference. Currently, HFS loans at LCM are carried at Newtek Bank. This includes the government guaranteed portion of SBA 7(a) loans and SBA 504 loans. Management may also make a determination to market for sale certain CRE and C&I loans on a loan by loan basis.

At fair value: The Company originates alternative lending program loans (formerly referred to as our nonconforming conventional loans), which are either HFS or HFI, via its nonbank subsidiaries, and joint ventures. Nonconforming loans are carried at FV. The Company also originated SBA 504 loans HFS prior to the Acquisition through its nonbank subsidiaries. SBA 504 loans HFS held at Holdco 6 are accounted for under the FV option. Alternative lending program loans are held at Holdco 6, NCL JV, and TSO JV and are also accounted for under the FV option. Additionally, the existing government guaranteed portion of SBA 7(a) loans held at NSBF are also HFS at FV. Refer to the “Fair Value Option” section below for further information on loans HFS carried at FV under the FV option.

Fair Value and the Fair Value Option

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, management used various valuation approaches. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.

The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). The levels of the fair value hierarchy are as follows:

Level 1Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets.

Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, derivative contracts and loans held-for-sale.

Level 3Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing assets, warrant liabilities, joint ventures, guaranteed loans held at fair value, and highly structured or long-term derivative contracts.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company assesses the levels of assets and liabilities at each measurement date. There were no transfers to or from Level 3 of the fair value hierarchy for assets and liabilities during the year ended December 31, 2023 or 2022.

Level 1 investments were valued using quoted market prices. Level 2 investments were valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities.

The Company has two joint venture investments. For TSO JV, the Company calculates the fair value of the investment based on the NAV of the entity. The fair value of the investment is equivalent to 50% of the total NAV of the JV, which represents the Company’s share of the entity and is based upon the practical expedient method permitted under ASC 820. For NCL JV, the Company uses a discounted cash flow methodology and adjusts the NAV of the entity by a fair value adjustment for the fixed rate debt liability.

Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded.

The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded. In addition recent changes in inflation and base interest rates, supply chain disruptions, significant market volatility, risk of recession, recent economic and market events, unrelated bank failures and declines in depositor confidence in depository institutions, the ongoing war between Russia and Ukraine and general uncertainty surrounding the financial and political stability of the United States, United Kingdom, the European Union and China could further negatively impact the fair value of the Company’s investments after December 31, 2023, in addition to other circumstances and events that are not yet known.

The Company applies fair value accounting to certain of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurement (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions reflect those that management believe market participants would use in pricing the financial instrument at the measurement date.

The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value was greatest for financial instruments classified as Level 3.

Any changes to the valuation methodology are reviewed by management to confirm that the changes are appropriate. As markets change, new products develop and the pricing for products becomes more or less transparent, the Company will continue to refine its valuation methodologies. See further description of fair value methodology in NOTE 9—FAIR VALUE MEASUREMENTS.

Loans for which the FV option were elected are measured at FV and classified as either HFS or HFI, as outlined above. Not electing FV generally results in a larger discount being recorded on the date of the sale. This discount will subsequently be accreted into interest income over the underlying loan’s remaining term using the effective interest method. Management made this election in alignment with its ongoing effort to reduce volatility and drive more predictable revenue. In accordance with accounting standards, any loans for which FV was previously elected continue to be measured as such. Interest income is recognized in the same manner on loans reported at FV as on non-FV loans, except in regard to origination fees and costs which are recognized immediately upon FV election. The changes in FV of loans are reported in noninterest income as Net gain (loss) on loans accounted for under the fair value option. FV of loans includes adjustments for historical credit losses, market liquidity, and economic conditions.

Allowance for Credit Losses – Loans

Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”) approach requires an estimate of the credit losses expected over the life of a loan (or pool of loans). The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net, lifetime amount expected to be collected on the loans. Loan losses are charged off against the allowance when management believes a loan balance is uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, which generally includes larger non-accruing commercial loans.

The discounted cash flow (“DCF”) method is used to estimate expected credit losses for all loan portfolio segments measured on a collective (pool) basis. For each loan segment, cash flow projections are generated at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, probability of default, and loss given default. The modeling of prepayment speeds is based on a combination of historical internal data and peer data.

Regression analysis of historical internal and peer data is used to determine suitable loss drivers to utilize when modeling lifetime probability of default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. The SBA 7(a) loan portfolio is the single loan pool where management solely utilizes historical internal data to determine the loss rate as an input to the model. The data utilized represents the most recent economic cycle and management determines the loss rate by analyzing defaulted principal and net charge offs to calculate the historical loss rate. For all loan pools utilizing the DCF method, management utilizes various economic indicators such as changes in unemployment rates, gross domestic product, real estate values, and other relevant factors as loss drivers. For all DCF models, management has determined that due to historic volatility in economic data, four quarters currently represents a reasonable and supportable forecast period, followed by a four-quarter reversion to historical mean levels for each of the various economic indicators.

The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Specific instrument effective yields are calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value (“NPV”). An allowance is established for the difference between the instrument’s NPV and amortized cost basis.

The allowance evaluation also considers various qualitative factors, such as: (i) changes to lending policies, underwriting standards and/or management personnel performing such functions, (ii) delinquency and other credit quality trends, (iii) credit risk concentrations, if any, (iv) changes to the nature of the Company's business impacting the loan portfolio, and (v) other external factors, that may include, but are not limited to, results of internal loan reviews, stress testing, examinations by bank regulatory agencies, or other events such as a natural disaster. Significant management judgment is required at each point in the measurement process.

Arriving at an appropriate level of allowance involves a high degree of judgment. The determination of the adequacy of the allowance and provisioning for estimated losses is evaluated regularly based on review of loans, with particular emphasis on non-performing and other loans that management believes warrant special consideration. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. The Company’s historical credit loss experience provides the basis for the estimation of expected credit losses, supplemented with peer loss information, and results in expected probabilities of default and expected losses given default. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, production metrics, property values, or other relevant factors.

Expected losses are applied to loans grouped in portfolio segments, which are pools of loans aggregated based on type of borrower and collateral which is generally based upon federal call report segmentation. Portfolio segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled. These portfolio segments are as follows:

Commercial Real Estate: The commercial real estate portfolio is comprised of loans to borrowers on small offices, owner-occupied commercial buildings, industrial/warehouse properties, income producing/investor real estate properties, and multi-family loans secured by first mortgages. The Company’s underwriting standards generally target a loan-to-value ratio of 75%, depending on the type of collateral, and requires debt service coverage of a minimum of 1.2 times.

Commercial & Industrial: The commercial & industrial portfolio consists of loans made for general business purposes consisting of short-term working capital loans, equipment loans and unsecured business lines.

SBA 7(a): The SBA 7(a) portfolio includes loans originated under the federal Section 7(a) loan program. The SBA is an independent government agency that facilitates one of the nation’s largest sources of SMB financing by providing credit guarantees for its loan programs. SBA 7(a) loans are partially guaranteed by the SBA, with SBA guarantees typically ranging between 50% and 90% of the principal and interest due. Under the SBA’s 7(a) lending program, a bank or other lender may underwrite loans between $5,000 and $5.0 million for a variety of general business purposes based on the SBA’s loan program requirements. The guaranteed portion of the loans are held for sale and carried at LCM and therefore are not subject to CECL. The unguaranteed portion of the loans that are held on balance sheet at amortized cost are subject to CECL.

Individually Evaluated Loans: Loans that do not share risk characteristics with existing pools are evaluated on an individual basis. For loans that are individually evaluated and collateral dependent, financial loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and management expects repayment of the financial asset to be provided substantially through the sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral or going concern, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral. When repayment is expected to be from the sale of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset.

Accrued Interest. Accrued interest receivable balances are presented within other assets on the consolidated balance sheet. Accrued interest is excluded from the measurement of the allowance for credit losses, including investments and loans. Generally, accrued interest is reversed when a loan is placed on non-accrual or is written-off. Current year accrued interest is reversed through interest income while accrued interest from prior years is written-off through the ACL. Historically, we have not experienced uncollectible accrued interest receivable on investment debt securities.

Allowance for off-balance sheet credit exposures. The exposure is a component of other liabilities in the consolidated balance sheet and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include unused portions of lines of credit and standby and commercial letters of credit. The process used to determine the allowance for these exposures is consistent with the process for determining the allowance for loans, as adjusted for estimated funding probabilities or loan equivalency factors. A charge (credit) to provision for credit losses on the consolidated statements of income is made to account for the change in the allowance on off-balance sheet exposures between reporting periods.

Allowance for Credit Losses – Available-for Sale (“AFS”) Debt Securities

The impairment model for AFS debt securities differs from the CECL approach utilized for financial instruments measured at amortized cost because AFS debt securities are measured at fair value. For AFS debt securities in an unrealized loss position, Newtek Bank first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities AFS that do not meet the aforementioned criteria, in making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, failure of the issuer of the debt security to make scheduled interest or principal payments, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. The cash flows should be estimated using information relevant to the collectability of the security, including information about past events, current conditions and reasonable and supportable forecasts. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the AFS security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. As of December 31, 2023, the Company determined that the unrealized loss positions in the AFS securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded.

Allowance for Doubtful Accounts

Technology: The allowance for doubtful accounts is established by management through provisions for bad debts charged against income. Amounts deemed to be uncollectible are charged against the allowance for doubtful accounts and subsequent recoveries, if any, are credited to income.

The amount of the allowance for doubtful accounts is inherently subjective, as it requires making material estimates which may vary from actual results. Management’s ongoing estimates of the allowance for doubtful accounts are particularly affected by the performance of the client in their ability to provide the Company with future receivables coupled with the collections of their current receivables. The allowance consists of general and specific components. The specific component relates to a client’s aggregate net balance that is owed to the Company that is classified as doubtful. The general component covers non-classified balances and is based on historical loss experience.

A client’s aggregate net balance is considered uncollectible when, based on current information and events, it is probable that the Company will be unable to collect the receivable payments or the Company has greatly reduced the amount of receivables to be purchased. The Company’s charge-off policy is based on a client-by-client review for which the estimated uncollectible portion is charged off against the corresponding client’s net balance and the allowance for doubtful accounts.

At December 31, 2023 the allowance for doubtful accounts was $1.0 million. There was no allowance for doubtful accounts as of December 31, 2022 prior to the Acquisition.

Settlement Receivable

Settlement receivable represents amounts due from third parties for guaranteed portions of SBA 7(a) loans which have been sold at year-end but have not yet settled. The guaranteed portion of SBA 7(a) principal balances that have been sold but not yet settled at December 31, 2023 was $56.5 million. The settlement receivable also includes $5.7 million of premiums, which have been recognized in Net Gains on Sales of Loans.

Goodwill and Intangible Assets

Goodwill is an indefinite lived asset, which is not amortized and is instead subject to impairment testing, at least annually. Intangible assets, such as customer merchant accounts, with finite lives are amortized over an estimated useful life of 66 to 120 months. (See NOTE 8—GOODWILL AND INTANGIBLE ASSETS.)

The Company considers the following to be some examples of indicators that may trigger an impairment review outside of its annual impairment review: (i) significant under-performance or loss of key contracts acquired in an acquisition relative to expected historical or projected future operating results; (ii) significant changes in the manner or use of the acquired assets or in the Company’s overall strategy with respect to the manner or use of the acquired assets or changes in the Company’s overall business strategy; (iii) significant negative industry or economic trends; (iv) increased competitive pressures; (v) a significant decline in the Company’s fair value for a sustained period of time; and (vi) regulatory changes. In assessing the recoverability of the Company’s goodwill and customer merchant accounts, the Company must make assumptions regarding estimated future cash flows and other factors to determine the fair value of the respective assets. These include estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company, the period over which cash flows will occur, and determination of the Company’s cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and conclusions on impairment.

Leases - Right of use assets and lease liabilities

Transfers and Servicing of Financial Assets

For a transfer of financial assets to be considered a sale, the transfer must meet the sale criteria of ASC 860, which, at the time of the transfer, requires that the transferred assets qualify as recognized financial assets and the Company surrender control over the assets. Such surrender requires that the assets be isolated from the Company, even in bankruptcy or other receivership, the purchaser have the right to pledge or sell the assets transferred and the Company not have an option or obligation to reacquire the assets.

Assets related to transactions that do not meet ASC Topic 860 — Transfers and Servicing (“ASC Topic 860”) requirements for accounting sale treatment are reflected in the Company’s consolidated statements of assets and liabilities as investments and the sale proceeds are recognized as a liability.

Assets owned by securitization trusts and included in the Company’s consolidated financial statements. The creditors of the special purpose entities have received security interests in such assets and such assets are not intended to be available to the creditors of the Company. From 2010 through December 31, 2023, NSBF engaged in thirteen (13) securitizations of the unguaranteed portions of its SBA 7(a) loans. A securitization uses a special purpose entity (the “Trust”), which is considered a variable interest entity. Applying the consolidation requirements for VIEs under the accounting rules in ASC Topic 860, Transfers and Servicing, and ASC Topic 810, Consolidation, which became effective January 1, 2010, the Company determined that as the primary beneficiary of the securitization vehicles, based on its power to direct activities through its role as servicer for the Trusts and its obligation to absorb losses and right to receive benefits, it needed to consolidate the Trusts. The Company therefore consolidates the entities using the carrying amounts of the Trusts’ assets and liabilities and reflects the assets in SBA 7(a) Unguaranteed Loans and reflects the associated financing in Notes Payable - Securitization trusts on the Consolidated Statements of Assets and Liabilities.

The Company accounts for servicing assets in accordance with ASC Topic 860-50 - Transfers and Servicing - Servicing Assets and Liabilities. The Company and Newtek Bank earn servicing fees from the guaranteed portions of SBA 7(a) loans they originate and sell. The Company has also recorded servicing assets/liabilities on loans sold where the Company retained an obligation to service the loan sold. Servicing assets for loans originated by the Company’s nonbank subsidiaries are measured at FV at each reporting date and the Company reports changes in the FV of servicing assets in earnings in the period in which the changes occur. The valuation model for servicing assets incorporates assumptions including, but not limited to, servicing costs, discount rate, prepayment rate, and default rate. Considerable judgement is required to estimate the fair value of servicing assets and as such these assets are classified as Level 3 in our fair value hierarchy. Servicing assets for loans originated by Newtek Bank are measured at LCM and amortized based on their estimated life and impairment is recorded to the extent the amortized cost exceeds the asset’s FV.

Accounts Receivable

Accounts receivable represent amounts owed to the Company by third parties for electronic payment processing, technology services and related residuals. The Company estimates losses on accounts receivable based on known troubled accounts and historical experience of losses incurred.

Accrued Interest Receivable

Upon the Acquisition and adoption of CECL, the Company made the following elections regarding accrued interest receivable: (1) presented accrued interest receivable balances separately within other assets balance sheet line item; (2) excluded interest receivable that is included in amortized cost of financing receivables from related disclosures requirements and (3) continued our policy to write off accrued interest receivable by reversing interest income. For loans, write off typically occurs upon becoming over 90 to 120 days past due. Historically, the Company has not experienced uncollectible accrued interest receivable on investment securities.

Derivative Instruments

The Company uses derivative instruments primarily to economically manage the fair value variability of fixed rate assets and liabilities caused by interest rate fluctuations. Derivative instruments consist of interest rate futures and are held at fair value on the balance sheet. Collateral posted with our futures counterparties is segregated in the Company’s books and records. Interest rate futures are centrally cleared by the Chicago Mercantile Exchange (“CME”) through a futures commission merchant. Interest rate futures that are governed by an ISDA agreement provide for bilateral collateral pledging based on the counterparties’ market value. The counterparties have the right to re-pledge the collateral posted but have the obligation to return the pledged collateral, or, if the Company agrees, substantially the same collateral as the market value of the interest rate futures change.

The Company is required to post initial margin and daily variation margin for interest rate futures that are centrally cleared by CME. CME determines the fair value of our centrally cleared futures, including daily variation margin. Effective January 3, 2017, CME amended its rulebooks to legally characterize daily variation margin payments for centrally cleared interest rate futures as settlement rather than collateral. As a result of this rule change, variation margin pledged on the Company’s centrally cleared interest rate futures is settled against the realized results of these futures.

Fixed Assets

Fixed assets, which are composed of merchant processing terminals, software, telephone systems, computer equipment, automobile, website and leasehold improvements, are stated at cost less accumulated depreciation and amortization. Depreciation of fixed assets is provided on a straight-line basis using estimated useful lives of the related assets ranging from three to seven years. Amortization of leasehold improvements is provided on a straight-line basis using the lesser of the useful life of the asset, which is generally three to five years, or lease term.

Due to Participants

Due to participants represents amounts due to third party investors in the SBA guaranteed portion of SBA 7(a) and PPP loans. When the Company receives principal payments, including PPP loan forgiveness, after the loan has been either partially or fully sold to the participant, the remittances received by the Company are either owed in part or in full to the participant and amounts are recorded as a liability on the consolidated statements of financial condition.

Dividends to Shareholders

Dividends and distributions to the Company's stockholders are recorded on the declaration date. The timing and amount to be paid out as a dividend or distribution is determined by the Company's Board each quarter.

Loan Interest Income Recognition and Changes in Fair Value

Held for Investment

At Amortized Cost, net of deferred loan fees and costs: Interest on loans is generally recognized on a daily accrual basis at the applicable interest rate. Interest is not accrued on loans that are more than 90 days delinquent on payments, and any interest that was accrued but unpaid on such loans is reversed from interest income at that time, or when deemed to be uncollectible. Interest subsequently received on such loans is recorded as interest income or alternatively as a reduction in the amortized cost of the loan if there is significant doubt as to the collectability of the unpaid principal balance. Loans are returned to accrual status when principal and interest amounts contractually due are brought current and future payments are reasonably assured.

At FV: In accordance with accounting standards, any loans for which FV was previously elected continue to be measured as such. Interest income is recognized in the same manner on loans reported at FV as on non-FV loans, except in regard to origination fees and costs which are recognized immediately upon FV election. The changes in FV of loans are reported within noninterest income as Net gain (loss) on loans accounted for under the fair value option. FV of loans includes adjustments for historical credit losses, market liquidity, and economic conditions. The Company values performing accrual loans on a pool basis. Loans that have experienced credit deterioration are valued individually based on resolution plans developed by the Company based on timing and amount of expected future cash flows from all sources of repayment, including both cash flows of the borrower as a going concern as well as the liquidation of collateral and pursuit of personal guarantees.

Held for Sale

At LCM: Net unrealized losses, if any, on loans without a FV election, are recognized through a valuation allowance and recorded as a charge to Other noninterest income. The cost basis of loans HFS includes unamortized loan origination fees and costs. The pro-rata portion, based on the percent of the total loan sold, of the remaining deferred fees and costs are recognized as an adjustment to the gain on sale. Not electing FV generally results in a larger discount being recorded on the origination date. This discount will subsequently be accreted into interest income over the underlying loan’s remaining term using the effective interest method. Management made this change of election in alignment with its ongoing effort to reduce volatility and drive more predictable revenue.

If the transfer is accounted for as a sale, the loans are derecognized from the Company’s consolidated balance sheet and a gain or loss is recognized in net gains on sales of loans line item on the consolidated statements of income. The gain on sale recognized in income is the sum of the premium on the guaranteed loan and the FV of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan retained. If the transfer does not satisfy the aforementioned control criteria, the transaction is recorded as a secured borrowing with the transferred loans remaining on the Company’s consolidated balance sheet and proceeds recognized as a liability.

Non-Interest Income

Dividend income: Dividend income is recognized on an accrual basis for equity securities to the extent that such amounts are expected to be collected or realized. In determining the amount of dividend income to recognize, if any, from cash distributions on equity securities, we assess many factors, including the joint ventures’ and non-controlled equity investments’ cumulative undistributed income and operating cash flow. Cash distributions from equity securities received in excess of such undistributed amounts are recorded first as a reduction of our investment and then as a realized gain on investment.

Servicing income: The Company earns servicing income related to the guaranteed portions of SBA 7(a) and ALP loan investments sold into the secondary market. These recurring servicing fees are earned and recorded daily. Servicing income is earned for the full term of the loan or until the loan is repaid.

Technology and IT support income

Our technology segment sells a range of services and goods, including managed IT services, product and procurement services, professional services, webhosting, secure private cloud hosting, and backup disaster recovery. Our technology segment sells hardware and software products on both a stand-alone basis without any services and as solutions bundled with services. When our technology segment provides a combination of hardware and software products with the provision of services, it separately identifies its performance obligations under its contract with the customer as the distinct goods (hardware and/or software products) or services that will be provided. The total transaction price for an arrangement with multiple performance obligations is allocated at contract inception to each distinct performance obligation in proportion to its stand-alone selling price. The stand-alone selling price is the price at which it would sell a promised good or service separately to a customer. Our technology segment estimates the price based on observable inputs, including direct labor hours and allocatable costs, or uses observable stand-alone prices when they are available. Our technology segment’s professional services include the design and implementation of a wide range of IT products and services. Such services are typically provided by us or third-party sub-contractor vendors on a stand-alone basis.

Revenue is measured based on the consideration specified in a contract with a customer. Our technology segment recognizes revenue when it satisfies a performance obligation by transferring control of a product or service or by arranging for the sale of a vendor’s products or service to a customer. Our technology segment recognizes revenue from sale of services as its technology segment performs the underlying services, typically based on time and materials basis based upon hours incurred for the performance completed to date for which we have the right to consideration. Our technology segment recognizes revenue on sales of goods at a point in time when customer takes control of goods, which typically occurs when title and risk of loss have passed to the customer. Our technology segment recognizes revenue on a gross basis for each of its services and product offerings principally because it is primarily responsible for fulfilling the promise to provide specified goods or service and it has discretion in establishing the price of specified good or service.

Electronic payment processing income: Revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To achieve this core principle, the Company applies the following five steps:

1. Identify the contract with a customer

2. Identify the performance obligations in the contract

3. Determine the transaction price

4. Allocate the transaction price to the performance obligations in the contract

5. Recognize revenue when or as the Company satisfies a performance obligation

Revenue is recognized net of taxes collected from customers, which are subsequently remitted to governmental authorities.

NMS’s revenue is primarily derived from electronic payment processing and related fee income.

Electronic payment processing and fee income is derived from NMS’s electronic processing of credit and debit card transactions that are authorized and captured through third-party networks. Typically, merchants are charged for these processing services by applying a percentage to the dollar amount of each transaction plus a flat fee per transaction. Certain merchant customers are charged miscellaneous fees, including fees for handling charge-backs or returns, monthly minimum fees, statement fees and fees for other miscellaneous services. Revenues derived from the electronic processing of MasterCard®, Visa®, American Express® and Discover® sourced credit and debit card transactions are reported gross of amounts paid to sponsor banks.

NMS's performance obligations are to stand ready to provide holistic electronic payment processing services consisting of a series of distinct elements that are substantially the same and have the same pattern of transfer over time. NMS’s promise to its customers is to perform an unknown or unspecified quantity of tasks and the consideration received is contingent upon the customers’ use (i.e., number of payment transactions processed, number of cards on file, etc.); as such, the total transaction price is variable. The Company allocates the variable fees charged to the day in which it has the contractual right to bill under the contract.

ASU 2014-09, "Revenues from Contracts with Customers (“Topic 606”)" (“ASC 606”) requires that the Company determine for each customer arrangement whether revenue should be recognized at a point in time or over time. For the quarter ended December 31, 2023, substantially all of the Company’s revenues were recognized at a point in time.

ASC 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations; however, as permitted by ASC 606, the Company has elected to exclude from this disclosure any contracts with an original duration of one year or less and any variable consideration that meets specified criteria. As described above, the Company’s most significant performance obligations consist of variable consideration under a stand-ready series of distinct days of service. Such variable consideration meets the specified criteria for the disclosure exclusion; therefore, the majority of the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied is variable consideration that is not required for this disclosure. The aggregate fixed consideration portion of customer contracts with an initial contract duration greater than one year is not material.

Receivable fees; Receivable fees are derived from the funding (purchase) of receivables from the Company’s finance clients. The Company recognizes revenue on the date receivables are purchased at a percentage of face value as agreed to by the client. The Company also has arrangements with certain of its clients whereby it purchases the client’s receivables and charges a fee at a specified rate based on the amount of funds advanced against such receivables. The funds provided are collateralized and the income is recognized as earned which occurs as time passes.

Realized gains or losses on joint ventures: Realized gains or losses on joint ventures are measured by the difference between the net proceeds from the disposition and the cost basis of investment, without regard to unrealized gains or losses previously recognized. The Company reports current period changes in the fair value of joint venture investments as a component of the net change in unrealized appreciation (depreciation) on joint ventures in the consolidated statements of operations

Other: The Company earns a variety of fees from borrowers in the ordinary course of conducting its business, including packaging, legal, late payment and prepayment fees. All other income is recorded when earned. Other income is generally non-recurring in nature and earned as “one time” fees in connection with the origination of new loans with non-affiliates.

Electronic Payment Processing Costs

Electronic payment processing costs consist principally of costs directly related to the processing of merchant sales volume, bank processing fees and costs paid to third-party processing networks. Such costs are recognized at the time the merchant transactions are processed or when the services are performed.

In addition to costs directly related to the processing of merchant sales volume, electronic payment processing costs also include residual expenses. Residual expenses represent fees paid to third-party sales referral sources. Residual expenses are paid in accordance with contracted terms. These are generally linked to revenues derived from merchants successfully referred to the Company and that begin using the Company for merchant processing services.

Such residual expenses are recognized in the Company’s consolidated statements of income. During the quarter ended December 31, 2023, the Company partnered with two sponsor banks for substantially all merchant transactions. Substantially all merchant transactions were processed by one merchant processor.

Technology Services Expenses

Costs of services and goods sold include product costs, outbound and inbound freight costs, and direct time and materials in delivering service and goods to customers.

Selling and administrative expenses include salaries and wages for staff who are not directly associated with delivering services, bonuses and incentives, employee-related expenses, facility-related expenses, marketing and advertising expense, depreciation of property and equipment, professional fees, amortization of intangible assets, provisions for losses on accounts receivable and other operating expenses.

Stock – Based Compensation

The Company accounts for its equity-based compensation plans using the fair value method, as prescribed by ASC Topic 718 – Stock Compensation. Accordingly, for restricted stock awards, the Company measures the grant date fair value based upon the market price of the Company’s Common Stock on the date of the grant and amortizes this fair value to salaries and benefits ratably over the requisite service period or vesting term on a straight line basis. Forfeitures are recognized as incurred.

Income Taxes

Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Such deferred tax assets and liabilities recorded on the statement of financial condition were a deferred tax asset, net of $5.2 million at December 31, 2023 and a deferred tax liability, net of $19.2 million at December 31, 2022, respectively.

Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to income taxes in the United States and its political subdivisions. Significant judgments and estimates are required in determining the consolidated income tax expense.

The Company’s U.S. federal and state income tax returns prior to fiscal year 2020 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. Interest and penalties assessed by tax jurisdictions for income tax matters are presented as income tax expense on the consolidated statement of income.

Formerly, as a RIC ending with the Company’s December 31, 2022 fiscal year end, the Company was not subject to corporate level income tax. Beginning on January 1, 2023 with the start of the 2023 fiscal year, the Company no longer qualifies as a RIC and will be subject to corporate level income tax. See NOTE 21—INCOME TAXES.

Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Management has determined that the Company has four reportable operating segments: Banking, Non-Bank SBA 7(a) Lending, Technology, and Payments as discussed more fully in NOTE 22—SEGMENTS. In determining the appropriateness of a segment definition, the Company considers the criteria of FASB ASC 280, Segment Reporting.

Business Combinations

Business combinations are accounted for under the acquisition method, in which the identifiable assets acquired and liabilities assumed are generally measured and recognized at fair value as of the acquisition date, with the excess of the purchase price over the fair value of the net assets acquired recognized as goodwill. Items such as acquired income-tax related balances are recognized in accordance with other applicable GAAP, which may result in measurements that differ from fair value. Business combinations are included in the consolidated financial statements from the respective dates of acquisition. Historical reporting periods reflect only the results of legacy Company operations. Acquisition-related costs are expensed in the period incurred and presented within the applicable non-interest expense category. Additional information regarding the Company’s acquisitions can be found within NOTE 3—BUSINESS COMBINATION.

Fair Value of Assets Acquired and Liabilities Assumed

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, reflecting assumptions that a market participant would use when pricing an asset or liability. In some cases, the estimation of fair values requires management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and are subject to change.

Recently Adopted Accounting Pronouncements

Beginning in 2023, the Company applies accounting standards applicable to our current status as a financial holding company.

Current Expected Credit Losses (Topic 326)

In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326) and in April 2019, the FASB issued ASU 2019-04 Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (collectively, “CECL”). CECL changed how entities measure potential credit losses for most financial assets and certain other instruments that are not measured at fair value. CECL replaced the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost. While ASU 2016-13 does not require any particular method for determining the CECL allowance, it does specify the allowance should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. CECL was effective for the Company beginning January 1, 2023; however, the Company continues to measure NSBF’s SBA 7(a) loan portfolio at fair value and intends to do so until the portfolio is completely runoff. Following the Acquisition on January 6, 2023, the Company owns and consolidates Newtek Bank, which applies CECL.

Troubled Debt Restructurings and Vintage Disclosures (ASU 2022-02)

In March 2022, the FASB issued ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The purpose of this guidance is twofold. First, the guidance eliminates TDR recognition and measurement guidance that has been deemed no longer necessary under CECL. The guidance also adds a requirement to incorporate current year gross charge-offs by origination year into the vintage tables. With respect to the TDR impacts, under CECL, credit losses for financial assets measured at amortized cost are determined based on the total current expected credit losses over the life of the financial asset or group of financial assets. Due to the Acquisition, any aspects of credit deterioration to include modifications to loans for borrowers experiencing financial difficulty were captured in purchase accounting and the allowance as of the Acquisition date. Therefore, credit losses on financial assets that have been modified as TDRs would have largely been incorporated in the allowance upon initial recognition. Under ASU 2022-02, the Company will evaluate whether loan modifications previously characterized as TDRs represent a new loan or a continuation of an existing loan in accordance with ASC Topic 310, Receivables. The guidance also added new disclosures that require an entity to provide information related to loan modifications that are made to borrowers that are deemed to be in financial difficulty. Following the Acquisition on January 6, 2023, the Company owns and consolidates Newtek Bank, which adopted the ASU on January 1, 2023, on a prospective basis. The impact of these amendments was not material.

New Accounting Standards

In June 2022, the FASB issued ASU No. 2022-03, “Fair Value Measurement (Topic 820),” which clarifies the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. ASU 2022-03 is effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. For all other entities the amendments are effective for fiscal years beginning after December 15, 2024, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. An entity that qualifies as an investment company under Topic 946 should apply the amendments in ASU No. 2022-03 to an investment in an equity security subject to a contractual sale restriction that is executed or modified on or after the date of adoption. The Company does not expect any material impact from adopting ASU No. 2022-03 on the consolidated financial statements.

Improvements to Reportable Segment Disclosures (ASU 2023-07)

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The purpose of this guidance is to improve reportable segment disclosure, primarily through enhanced disclosures about significant segment expenses. This ASU requires that an entity disclose, on an interim and annual basis, significant segment expenses that are regularly provided to the CODM and are included within the reported measure of segment profit or loss. This ASU also requires an entity to disclose, on an interim and annual basis, other segment items by reportable segment, including a qualitative description of the composition of those items. This “other” category is defined as the difference between segment profit or loss and segment revenue less significant segment expenses. Entities are also required to disclose the title and position of the individual, or the name of the group or committee, identified as the CODM. The amendments are effective on January 1, 2024, for annual reporting, and January 1, 2025, for interim reporting, with early adoption permitted. The amendments must be applied using a retrospective approach. Management does not expect the impact of these amendments to be material.

Improvements to Income Tax Disclosures (ASU 2023-09)

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The purpose of this guidance is to enhance the rate reconciliation and income taxes paid disclosures. This ASU requires that an entity disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. For the state and local income tax category of the rate reconciliation, entities must disclose a qualitative description of the states and local jurisdictions that make up the majority (greater than 50 percent) of the category. For the income taxes paid disclosures, entities will be required to disclose, on an annual basis, the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes. The amendments are effective on January 1, 2025, with early adoption permitted. The amendments must be applied using either a prospective or retrospective approach. Management does not expect the impact of these amendments to be material.

Business Combinations—Joint Venture Formations (ASU 2023-05)

In August 2023, the FASB issued ASU 2023-05, Business Combinations – Joint Venture Formations (Subtopic 805-60).

The amendments in this Update address the accounting for contributions made to a joint venture, upon formation, in a joint venture’s separate financial statements. The objectives of the amendments are to (1) provide decision-useful information to investors and other allocators of capital (collectively, investors) in a joint venture’s financial statements and (2) reduce diversity in practice. The amendments in this Update are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. Additionally, a joint venture that was formed before January 1, 2025, may elect to apply the amendments retrospectively if it has sufficient information. Early adoption is permitted in any interim or annual period in which financial statements have not yet been issued (or made available for issuance), either prospectively or retrospectively. Management does not expect the impact of these amendments to be material.

BORROWINGS - Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023	Aug. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Jan. 23, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Dec. 29, 2021	May 20, 2021	Feb. 16, 2021	Jan. 31, 2021	Oct. 31, 2019	Jul. 25, 2019	Nov. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Jun. 30, 2015
Debt Instrument [Line Items]
Commitments - Notes	$ 653,112
Total	878,235						$ 666,393
Borrowings	$ 644,122						$ 539,326
Weighted Average Interest Rate	7.04%						6.11%
Collateralized deposit	$ 1,429,513	$ 1,393,495		$ 1,451,021	$ 1,259,799		$ 998,902
Securitization Trusts
Debt Instrument [Line Items]
Collateralized deposit	14,800						14,100
Line of Credit \| Capital One Facilities
Debt Instrument [Line Items]
Loans	16,300
Line of Credit \| Capital One Facilities \| Capital One, Guaranteed
Debt Instrument [Line Items]
Commitments - line of credit	0						150,000
Borrowings Outstanding - line of credit	$ 0						$ 10,500
Weighted Average Interest Rate	0.00%						6.75%
Line of Credit \| Capital One Facilities \| Capital One, Unguaranteed
Debt Instrument [Line Items]
Commitments - line of credit	$ 0						$ 0
Borrowings Outstanding - line of credit	$ 0						$ 45,385
Weighted Average Interest Rate	0.00%						7.75%
Line of Credit \| Capital One Facilities \| Capital One, SP1
Debt Instrument [Line Items]
Commitments - line of credit	$ 60,000
Borrowings Outstanding - line of credit	$ 16,080
Weighted Average Interest Rate	8.20%
Line of Credit \| Deutsche Bank Line of Credit
Debt Instrument [Line Items]
Commitments - line of credit	$ 50,000
Borrowings Outstanding - line of credit	$ 6,799
Weighted Average Interest Rate	10.04%
Loans	$ 6,900
Line of Credit \| One Florida line of credit - SP3
Debt Instrument [Line Items]
Commitments - line of credit	30,000
Borrowings Outstanding - line of credit	$ 257
Weighted Average Interest Rate	9.50%
Loans	$ 375
Line of Credit \| Notes payable - related parties
Debt Instrument [Line Items]
Commitments - line of credit							$ 50,000											$ 50,000	$ 38,000
Borrowings Outstanding - line of credit							$ 24,250
Weighted Average Interest Rate							6.72%
Medium-term Notes \| Webster Note - MWI
Debt Instrument [Line Items]
Commitments - Notes	54,871
Borrowings	$ 36,628
Weighted Average Interest Rate	7.94%
Loans	$ 36,881
Medium-term Notes \| 2024 Notes
Debt Instrument [Line Items]
Commitments - Notes	38,250						$ 38,250
Borrowings	$ 38,124						$ 37,903			$ 78,250
Weighted Average Interest Rate	5.75%						5.75%								5.75%
Loans	$ 38,250										$ 10,000	$ 5,000			$ 55,000
Medium-term Notes \| 2025 5.00% Notes
Debt Instrument [Line Items]
Commitments - Notes	30,000						$ 30,000
Borrowings	$ 29,563						$ 29,306
Weighted Average Interest Rate	5.00%						5.00%
Loans	$ 30,000						$ 30,000
Medium-term Notes \| 2025 8.125% Notes
Debt Instrument [Line Items]
Commitments - Notes	50,000						0
Borrowings	$ 49,433						$ 0
Weighted Average Interest Rate	8.125%					8.125%	0.00%
Loans	$ 50,000					$ 50,000
Medium-term Notes \| 2026 Notes
Debt Instrument [Line Items]
Commitments - Notes	115,000						$ 115,000
Borrowings	$ 113,564						$ 112,846
Weighted Average Interest Rate	5.50%						5.50%						5.50%
Loans	$ 115,000						$ 115,000						$ 115,000
Medium-term Notes \| 2028 Notes
Debt Instrument [Line Items]
Commitments - Notes	40,000		$ 40,000				0
Borrowings	$ 38,378						$ 0
Weighted Average Interest Rate	8.00%		8.00%				0.00%
Loans	$ 40,000		$ 40,000				$ 0
Secured Debt \| FHLB Advances
Debt Instrument [Line Items]
Commitments - Notes	113,891
Borrowings	$ 23,184
Weighted Average Interest Rate	2.13%
Secured Debt \| Securitization Trusts
Debt Instrument [Line Items]
Commitments - Notes	$ 296,223						283,143
Borrowings	$ 292,112						$ 279,136
Weighted Average Interest Rate	7.84%						6.19%
Loans	$ 296,223						$ 283,143	$ 103,400	$ 103,400					$ 118,900		$ 108,600	$ 75,400

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Summary of obligations and commitments under operating lease and employment agreements

The following summarizes the Company’s obligations and commitments, as of December 31, 2023 for future minimum cash payments required under operating lease and employment agreements:


Year	Operating Leases		Employment Agreements1		Total
2024	$	2,761	$	525	$	3,286
2025	2,469		—		2,469
2026	1,842		—		1,842
2027	430		—		430
2028	—		—		—
Thereafter	—		—		—
Total	$	7,502	$	525	$	8,027

(1) Employment agreements with certain of the Company’s named executive officers

BUSINESS COMBINATION - Narrative (Details) - USD ($) $ in Thousands	Jan. 06, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill		$ 25,885	$ 0
NBNYC
Business Acquisition [Line Items]
Acquisition consideration	$ 20,000
Acquisition costs	1,300
Contributions to subsidiary	31,000
Goodwill	271
Goodwill decrease	$ 1,000
Transaction costs		$ 200	$ 2,300	$ 1,300
NBNYC \| Core Deposits
Business Acquisition [Line Items]
Intangible asset, useful life	10 years

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Related Party Transaction [Line Items]
Total deposits	$ 463,505	$ 0		$ 432,559	$ 447,357	$ 247,574
Officers and Directors
Related Party Transaction [Line Items]
Total deposits	5,600
CEO Nephew \| Annual Compensation
Related Party Transaction [Line Items]
Annual compensation	125	$ 125	$ 125
CAO Sister \| Annual Compensation
Related Party Transaction [Line Items]
Annual compensation	$ 125

DERIVATIVE INSTRUMENTS - Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Appreciation/(Depreciation)	$ (699)	$ 183	$ (183)
Realized Gain/(Loss)	$ 834	$ 445	$ 590

- Definition

The net change in the difference between the fair value and the carrying value, or in the comparative fair values, of derivative instruments, including options, swaps, futures, and forward contracts, held at each balance sheet date, that was included in earnings for the period.

+ References + Details

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2023

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS

NOTE 6—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:

Due to/from affiliated companies

The following table summarizes the amounts due to and due from affiliated companies as of December 31, 2023 and December 31, 2022:


	December 31, 2023		December 31, 2022
Due to affiliated companies1	$	158	$	1,338
Due from affiliated companies2	7		1,211
Total due to/due from affiliated companies	$	151	$	127

1 Included within Other Assets

2 Included within Accounts payable, accrued expenses, and other Liabilities

Notes payable - related parties

The following table summarizes our Notes payable - related parties as of December 31, 2023 and December 31, 2022.


	December 31, 2023		December 31, 2022
Notes payable - related parties	$	—	$	24,250

Following the January 6, 2023 Acquisition and related consolidation of the Company’s previously unconsolidated portfolio companies, the Company no longer has notes payable with related parties on its statements of financial condition for December 31, 2023. All notes payable with related parties that existed as December 31, 2022 now eliminate in consolidation.

Transactions with joint ventures and non-control investments

Refer to NOTE 4—INVESTMENTS for a schedule of transactions with our joint ventures and non-control equity investments.

The following table summarizes the income earned from our joint ventures for the periods ended December 31, 2023, December 31, 2022 and December 31, 2021:


	For the years ended December 31,
		2023		2022		2021
Servicing income1		$	1,240	$	840	$	752

Newtek Bank Deposits

At December 31, 2023, Newtek Bank, in the normal course of business, had deposits from certain of the Company’s officers, directors and their associated companies totaling $5.6 million.

Other Transactions with Related Parties

The nephew of the Chief Executive Officer of the Company is employed by one of the Company’s consolidated subsidiaries and earned annual compensation in excess of $125 thousand during 2023, 2022 and 2021. The sister of a Director and the Chief Admin Officer is employed by one of the Company’s consolidated subsidiaries and earned annual compensation in excess of $125 thousand during 2023.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

LEASES (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lease cost

The following table summarizes supplemental cash flow and other information related to our operating leases:


	Year Ended December 31,
		2023	2022	2021
Cash paid for amounts included in the measurement of lease liabilities (operating cash flows)		$2,693	$1,886	$1,555
Weighted-average remaining lease term - operating leases		2.88 years	4.41 years	5.30 years
Weighted-average discount rate - operating leases		5.50%	4.73%	4.55%
Total lease costs1		$3,124	$1,000	$894

1 Included in Other general and administrative costs on the consolidated statements of operations.

Lessee, operating lease, liability, maturity

The following table represents the maturity of the Company’s operating lease liabilities as of December 31, 2023:


Maturity of Lease Liabilities
2024	$	2,761
2025	2,469
2026	1,842
2027	430
2028	—
Thereafter	—
Total future minimum lease payments	$	7,502
Less: Imputed interest	(550)
Present value of future minimum lease payments	$	6,952

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - Quarterly Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash	$ 15,398	$ 223,692	$ 256,333	$ 197,143	$ 256,333	$ 223,692	$ 15,398	$ 53,692
Loans held for investment, at amortized cost, net	323,731	273,378	213,795	164,648	213,795	273,378	323,731	0
Goodwill and intangibles	30,120	31,311	31,667	32,091	31,667	31,311	30,120	0
Deferred tax asset, net	5,230	16,255	12,627	12,826	12,627	16,255	5,230	0
Servicing assets at fair value	39,725	38,291	36,238	33,679	36,238	38,291	39,725	30,268
Other assets	56,102	49,848	48,211	51,479	48,211	49,848	56,102	28,506
All other assets		760,720	852,150	767,933	852,150	760,720
Total assets	(1,429,513)	(1,393,495)	(1,451,021)	(1,259,799)	(1,451,021)	(1,393,495)	(1,429,513)	(998,902)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	463,505	432,559	447,357	247,574	447,357	432,559	463,505	0
Accounts payable, accrued expenses and other liabilities	37,300	36,671	37,674	44,912	37,674	36,671	37,300	21,424
All other liabilities		682,063	730,541	734,727	730,541	682,063
Total liabilities	1,180,467	1,151,293	1,215,572	1,027,213	1,215,572	1,151,293	1,180,467	623,544
All Other Equity		20,045	20,026	20,147	20,026	20,045
Retained earnings	28,051	22,202	16,065	13,879	16,065	22,202	28,051	20,623
Additional paid-in capital	200,913	199,955	199,358	198,560	199,358	199,955	200,913	354,243
Stockholders' equity	249,046	242,202	235,449	232,586	235,449	242,202	249,046	375,358	$ 403,887
Total Liabilities & Shareholders Equity	1,429,513	1,393,495	1,451,021	1,259,799	1,451,021	1,393,495	1,429,513	998,902
Income Statement [Abstract]
Interest income		26,736	22,553	18,715	41,268	68,004	94,373	38,617	78,966
Interest expense		18,659	16,880	14,132	31,012	49,671	67,739	26,325	20,515
Net interest income		8,077	5,673	4,583	10,256	18,333	26,634	12,292	58,451
Provision for credit losses		3,446	2,575	1,318	3,893	7,339	11,704	0	0
Net gains on sales of loans		13,751	13,364	6,367	19,731	33,482	50,734	56,901	53,113
Technology and IT support income		5,376	6,371	6,709	13,080	18,456	24,916	0	0
Other noninterest income		21,897	24,550	29,280	53,830	75,727	23,762	34,221	10,295
Salaries and employee benefits expense		13,726	18,374	19,073	37,447	51,173	65,708	20,186	17,866
Depreciation and amortization		730	750	791	1,541	2,271	2,884	239	304
Other loan origination and maintenance expense		1,836	2,313	2,781	5,094	6,930	9,433	30,746	29,506
Other noninterest expense		15,028	16,340	16,378	32,718	47,746
Income tax expense (benefit)		3,416	2,595	(11,952)	(9,357)	(5,941)	(1,956)	6,464	1,327
Net income		$ 10,919	$ 7,011	$ 18,550	$ 25,561	$ 36,480	$ 47,329	$ 32,311	$ 84,142
Weighted-average basic shares outstanding (in shares)		24,277,000	24,264,000	24,223,000	24,244,000	24,255,000	24,263,000	24,198,000	22,795,000
Weighted-average diluted shares outstanding (in shares)		24,413,000	24,306,000	24,881,000	24,298,000	24,336,000	24,348,000	24,198,000	22,795,000
Basic earnings per share (in dollars per share)		$ 0.43	$ 0.27	$ 0.76	$ 1.03	$ 1.46	$ 1.89	$ 1.34	$ 3.69
Earnings per share, diluted (in dollars per share)		$ 0.43	$ 0.27	$ 0.74	$ 1.03	$ 1.46	$ 1.88	$ 1.34	$ 3.69
As Reported
ASSETS
Cash		$ 223,692	$ 256,333	$ 197,143	$ 256,333	$ 223,692
Loans held for investment, at amortized cost, net		272,725	213,501	164,639	213,501	272,725
Goodwill and intangibles		27,157	27,595	28,101	27,595	27,157
Deferred tax asset, net		8,656	4,622	4,706	4,622	8,656
Servicing assets at fair value		36,774	35,754	33,351	35,754	36,774
Other assets		48,430	46,670	49,850	46,670	48,430
All other assets		760,720	852,150	767,933	852,150	760,720
Total assets		(1,378,154)	(1,436,625)	(1,245,723)	(1,436,625)	(1,378,154)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits		432,559	447,357	247,574	447,357	432,559
Accounts payable, accrued expenses and other liabilities		36,509	37,512	44,912	37,512	36,509
All other liabilities		682,063	730,541	734,727	730,541	682,063
Total liabilities		1,151,131	1,215,410	1,027,213	1,215,410	1,151,131
All Other Equity		20,045	20,026	20,147	20,026	20,045
Retained earnings		14,267	9,075	7,047	9,075	14,267
Additional paid-in capital		192,711	192,114	191,316	192,114	192,711
Stockholders' equity		227,023	221,215	218,510	221,215	227,023		$ 375,358
Total Liabilities & Shareholders Equity		1,378,154	1,436,625	1,245,723	1,436,625	1,378,154
Income Statement [Abstract]
Interest income	26,369	26,736	22,553	18,715	41,268	68,004
Interest expense	18,068	18,659	16,880	14,132	31,012	49,671
Net interest income	8,301	8,077	5,673	4,583	10,256	18,333
Provision for credit losses	4,365	3,446	2,575	1,318	3,893	7,339
Net gains on sales of loans	17,252	12,718	13,208	6,526	19,734	32,452
Technology and IT support income	6,460	5,499	6,459	6,709	13,168	18,667
Other noninterest income	25,395	24,683	26,761	29,552	56,313	80,994
Salaries and employee benefits expense	14,535	15,300	19,418	19,119	38,537	53,837
Depreciation and amortization	613	812	832	873	1,705	2,517
Other loan origination and maintenance expense	2,503	3,405	3,559	2,827	6,386	9,791
Other noninterest expense	20,558	15,028	16,340	16,378	32,718	47,746
Income tax expense (benefit)	4,623	3,011	2,524	(4,863)	(2,339)	671
Net income	$ 10,211	$ 9,975	$ 6,853	$ 11,718	$ 18,571	$ 28,545
Weighted-average basic shares outstanding (in shares)		24,663,000	24,607,000	24,609,000	24,608,000	24,626,000	24,259,000
Weighted-average diluted shares outstanding (in shares)		24,663,000	25,588,000	25,237,000	25,423,000	24,626,000	24,342,000
Basic earnings per share (in dollars per share)	$ 0.43	$ 0.38	$ 0.26	$ 0.46	$ 0.72	$ 1.10
Earnings per share, diluted (in dollars per share)	$ 0.43	$ 0.38	$ 0.26	$ 0.46	$ 0.72	$ 1.10
Adjustment
ASSETS
Cash		$ 0	$ 0	$ 0	$ 0	$ 0
Loans held for investment, at amortized cost, net		653	294	9	294	653
Goodwill and intangibles		4,154	4,072	3,990	4,072	4,154
Deferred tax asset, net		7,599	8,005	8,120	8,005	7,599
Servicing assets at fair value		1,517	484	328	484	1,517
Other assets		1,418	1,541	1,629	1,541	1,418
All other assets		0	0	0	0	0
Total assets		(15,341)	(14,396)	(14,076)	(14,396)	(15,341)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits		0	0	0	0	0
Accounts payable, accrued expenses and other liabilities		162	162	0	162	162
All other liabilities		0	0	0	0	0
Total liabilities		162	162	0	162	162
All Other Equity		0	0	0	0	0
Retained earnings		7,935	6,990	6,832	6,990	7,935
Additional paid-in capital		7,244	7,244	7,244	7,244	7,244
Stockholders' equity		15,179	14,234	14,076	14,234	15,179
Total Liabilities & Shareholders Equity		15,341	14,396	14,076	14,396	15,341
Income Statement [Abstract]
Interest income		0	0	0	0	0
Interest expense		0	0	0	0	0
Net interest income		0	0	0	0	0
Provision for credit losses		0	0	0	0	0
Net gains on sales of loans		1,033	156	(159)	(3)	1,030
Technology and IT support income		(123)	(88)	0	(88)	(211)
Other noninterest income		(2,786)	(2,211)	(272)	(2,483)	(5,267)
Salaries and employee benefits expense		(1,574)	(1,044)	(46)	(1,090)	(2,664)
Depreciation and amortization		(82)	(82)	(82)	(164)	(246)
Other loan origination and maintenance expense		(1,569)	(1,246)	(46)	(1,292)	(2,861)
Other noninterest expense		0	0	0	0	0
Income tax expense (benefit)		405	71	(7,089)	(7,018)	(6,612)
Net income		$ 944	$ 158	$ 6,832	$ 6,990	$ 7,935
Weighted-average basic shares outstanding (in shares)		(386,000)	(343,000)	(386,000)	(364,000)	(371,000)
Weighted-average diluted shares outstanding (in shares)		(250,000)	(1,282,000)	(356,000)	(1,125,000)	(290,000)
Basic earnings per share (in dollars per share)		$ 0.05	$ 0.01	$ 0.30	$ 0.31	$ 0.36
Earnings per share, diluted (in dollars per share)		$ 0.05	$ 0.01	$ 0.28	$ 0.31	$ 0.36

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2023

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

The year-to-date and quarterly impact of these adjustments for the periods presented are outlined in the unaudited tables below.

Statements of Financial Condition (Unaudited)


	September 30, 2023						June 30, 2023						March 30, 2023
	As Reported1		Adjustment		As Adjusted		As Reported1		Adjustment		As Adjusted		As Reported1		Adjustment		As Adjusted
Assets
Cash and due from banks	$	223,692	$	—	$	223,692	$	256,333	$	—	$	256,333	$	197,143	$	—	$	197,143
Loans held for investment, at amortized cost, net1	272,725		653		273,378		213,501		294		213,795		164,639		9		164,648
Goodwill & intangibles	27,157		4,154		31,311		27,595		4,072		31,667		28,101		3,990		32,091
Deferred tax asset, net	8,656		7,599		16,255		4,622		8,005		12,627		4,706		8,120		12,826
Servicing assets	36,774		1,517		38,291		35,754		484		36,238		33,351		328		33,679
Other assets	48,430		1,418		49,848		46,670		1,541		48,211		49,850		1,629		51,479
All other assets	760,720		—		760,720		852,150		—		852,150		767,933		—		767,933
Total assets	$	1,378,154	$	15,341	$	1,393,495	$	1,436,625	$	14,396	$	1,451,021	$	1,245,723	$	14,076	$	1,259,799

Liabilities and Shareholders' Equity
Liabilities:
Deposits	$	432,559	$	—	$	432,559	$	447,357	$	—	$	447,357	$	247,574	$	—	$	247,574
Accounts payable, accrued expenses and other liabilities	36,509		162		36,671		37,512		162		37,674		44,912		—		44,912
All other liabilities	682,063		—		682,063		730,541		—		730,541		734,727		—		734,727
Total liabilities	1,151,131		162		1,151,293		1,215,410		162		1,215,572		1,027,213		—		1,027,213

Shareholders' Equity:
All Other Equity	20,045		—		20,045		20,026		—		20,026		20,147		—		20,147
Retained Earnings	14,267		7,935		22,202		9,075		6,990		16,065		7,047		6,832		13,879
APIC	192,711		7,244		199,955		192,114		7,244		199,358		191,316		7,244		198,560
Total shareholders’ equity	227,023		15,179		242,202		221,215		14,234		235,449		218,510		14,076		232,586
Total Liabilities & Shareholders Equity	$	1,378,154	$	15,341	$	1,393,495	$	1,436,625	$	14,396	$	1,451,021	$	1,245,723	$	14,076	$	1,259,799

INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Investments, Owned, Federal Income Tax Note [Line Items]
Effective tax rate	(4.31%)
Net operating losses		$ 35.4
Tax Years 2029 through 2037
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating losses		4.6
Indefinite Carryforward
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating losses		30.8
Tax Year 2023
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating losses		23.8
Tax Years After 2023
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating losses		$ 11.6

SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

SHAREHOLDERS' EQUITY

NOTE 16—SHAREHOLDERS EQUITY:

Preferred Stock

On February 3, 2023, we entered into a Securities Purchase Agreement with Patriot Financial Partners IV, L.P., and Patriot Financial Partners Parallel IV, L.P. in respect of 20 thousand shares of the Company’s Series A Convertible Preferred Stock, par value $0.02 per share, in a private placement transaction. The aggregate purchase price was $20.0 million. Each share of Series A Preferred Stock was issued at a price of $1.0 thousand per share and is convertible at the holder’s option into 47.54053782 shares of the Company’s Common Stock. The Company had not issued preferred stock prior to February 3, 2023.

Warrants for Common Stock

On February 3, 2023, the Company issued warrants to Patriot to purchase, in the aggregate, 47.54 shares of Common Stock for $21.03468 per share. The Warrants are exercisable in whole or in part until the ten year anniversary of the closing of the transaction and may be exercised for cash or on a “net share” basis, with the number of shares withheld determined based on the closing price of the Common Stock on the date of such exercise. Warrants are included in Other Liabilities on the Consolidated Statements of Financial Condition.

Common Stock

2020 ATM Program

On June 25, 2020, the Company entered into the 2020 ATM Equity Distribution Agreement. On July 20, 2022, the Company entered into Amendment No. 1 to the 2020 ATM Equity Distribution Agreement. The 2020 ATM Equity Distribution Agreement, as amended, provided that the Company may offer and sell up to 6.4 million shares of common stock from time to time through the placement agents. The ATM program was suspended as of January 6, 2023, when the Company did not have an effective shelf registration statement in place. The following table summarizes the total shares sold and net proceeds received under the 2020 ATM Equity Distribution Agreement:


	Year Ended December 31, 2023		Year Ended December 31, 2022		Year Ended December 31, 2021
Shares sold	—		107		1,940
Net weighted average price per share	$	—	$	19.12	$	25.91
Net proceeds	$	—	$	2,054	$	50,261

The Company used the net proceeds for funding investments in debt and equity securities in accordance with its investment objective and strategies.

2023 ATM Program

The Company’s shelf registration statement on Form S-3 was declared effective by the SEC on July 27, 2023. On November 17, 2023, the Company entered into the 2023 ATM Equity Distribution Agreement. The 2023 ATM Equity Distribution Agreement, as amended, provided that the Company may offer and sell up to 3.0 million shares of common stock from time to time through the placement agents. The Company may, subject to market conditions, engage in activity under the current ATM program.

Dividends and Distributions

On February 3, 2023, the Company issued 20 thousand shares of the Company’s Series A Convertible Preferred Stock, par value $0.02 per share, in a private placement transaction. The aggregate purchase price was $20.0 million. Each share of Series A Preferred Stock was issued at a price of $1.0 thousand per share and is convertible at the holder’s option into 47.54 shares of the Company’s Common Stock. During the year ended December 31, 2023 the Company had $1.5 million in dividends on its preferred stock. No preferred dividends were paid during the year ended December 31, 2022.

The Company’s dividends and distributions on the Company’s common shares are recorded on the declaration date. On November 7, 2023, the Company issued a 30-day notice of its termination of the DRIP. The following table summarizes the Company’s dividend declarations and distributions during the years ended December 31, 2023 and 2022:


Date Declared	Record Date	Payment Date	Amount Per Share		Cash Distribution		DRIP Shares Issued	DRIP Shares Value
Year ended December 31, 2023
February 27, 2023	April 4, 2023	April 14, 2023	$	0.18	$	4,291	6	$	72
June 27, 2023	July 10, 2023	July 21, 2023	$	0.18	$	4,293	4	$	73
September 27, 2023	October 10, 2023	October 20, 2023	$	0.18	$	4,293	6	$	71
December 11, 2023	December 29, 2023	January 12, 2024	$	0.18	$	4,371	—	$	—

Year ended December 31, 2022
December 20, 2021	March 21, 2022	March 31, 2022	$	0.65	$	15,361	9	$	225
April 20, 2022	June 20, 2022	June 30, 2022	$	0.75	$	17,634	21	$	374
August 30, 2022	September 20, 2022	September 30, 2022	$	0.65	$	15,325	21	$	323
November 17, 2022	December 20, 2022	December 30, 2022	$	0.70	$	16,224	45	$	692

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
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-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
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-Paragraph 14
-Subparagraph (a)
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

LOANS - Allowance for Credit Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 0
Adjustment to Beginning Balance due to PCD marks		$ 870
Charge offs	0
Recoveries	0
Provision	11,704	0	$ 0
Ending Balance	12,574	0
Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0
Adjustment to Beginning Balance due to PCD marks		774
Charge offs	0
Recoveries	0
Provision	634
Ending Balance	1,408	0
Commercial & Industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0
Adjustment to Beginning Balance due to PCD marks		96
Charge offs	0
Recoveries	0
Provision	218
Ending Balance	314	0
SBA 7(a)
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	0
Adjustment to Beginning Balance due to PCD marks		0
Charge offs	0
Recoveries	0
Provision	10,852
Ending Balance	$ 10,852	$ 0

- Definition

Amount of allowance for credit loss on financing receivable. Excludes allowance for financing receivable covered under loss sharing agreement.

+ References + Details

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Noninterest income						$ (176,772)	$ (92,878)	$ (89,310)
Noninterest expense						(146,329)	(66,395)	(62,292)
Net income before taxes						45,373	38,775	85,469
Assets	$ (1,393,495)	$ (1,451,021)	$ (1,259,799)	$ (1,451,021)	$ (1,393,495)	(1,429,513)	(998,902)
Liabilities	(1,151,293)	(1,215,572)	(1,027,213)	(1,215,572)	(1,151,293)	(1,180,467)	(623,544)
Net deferred tax assets and income taxes receivable	16,255	12,627	12,826	12,627	16,255	5,230	0
Additional paid-in capital	199,955	199,358	198,560	199,358	199,955	200,913	354,243
Income tax benefit	(3,416)	(2,595)	11,952	9,357	5,941	1,956	(6,464)	(1,327)
Servicing assets	38,291	36,238	33,679	36,238	38,291	39,725	30,268
Goodwill and intangibles	31,311	31,667	32,091	31,667	31,311	30,120	0
Total shareholders’ equity	242,202	$ 235,449	$ 232,586	$ 235,449	242,202	$ 249,046	$ 375,358	$ 403,887
Revision of Prior Period, Error Correction, Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Noninterest income					(1,000)
Net deferred tax assets and income taxes receivable	10,000				10,000
Additional paid-in capital	2,900				2,900
Income tax benefit					7,100
Servicing assets	1,500				1,500
Goodwill and intangibles	3,900				3,900
Total shareholders’ equity	$ 3,900				3,900
Revision of Prior Period, Error Correction, Adjustment \| Accounting Standards Update 2020-08
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Noninterest income					5,100
Noninterest expense					5,700
Net income before taxes					$ 600

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net income	$ 10,919	$ 7,011	$ 18,550	$ 25,561	$ 36,480	$ 47,329	$ 32,311	$ 84,142

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

LOANS - Narrative (Details) $ in Millions	Dec. 31, 2023 USD ($)
Receivables [Abstract]
Contractual principal balance	$ 5.3
Allowance	$ 0.1

BUSINESS COMBINATION

12 Months Ended

Dec. 31, 2023

Business Combination and Asset Acquisition [Abstract]

BUSINESS COMBINATION

NOTE 3—BUSINESS COMBINATION:

Acquisition of NBNYC

On January 6, 2023, the Company completed the Acquisition of NBNYC, a national bank regulated and supervised by the OCC, pursuant to which the Company acquired from the NBNYC shareholders all of the issued and outstanding stock of NBNYC for $20 million, in an all-cash transaction. The Company also agreed to pay the seller’s acquisition costs of approximately $1.3 million. NBNYC has been renamed Newtek Bank and has become a wholly owned subsidiary of the Company. In connection with the completion of the Acquisition, the Company contributed to Newtek Bank $31 million of cash and two of the Company’s subsidiaries, NBL and SBL (NBL was subsequently merged into SBL). Upon the consummation of the Acquisition, Newtek Bank entered into an operating agreement with the OCC concerning certain matters including capital, liquidity and concentration limits, and memorializing the business plan submitted to the OCC.

The NBNYC transaction is accounted for in accordance with ASC 805, Business Combinations, and the Company has performed a purchase price allocation under the acquisition method. Under ASC 805, if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report in its financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, which shall not exceed one year from the acquisition date, the acquirer shall adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date.

The purchase price, including costs incurred by the Company on behalf of the seller directly associated with the Acquisition, was preliminarily allocated to net assets acquired. Final allocation has been obtained and the purchase allocations finalized at December 31, 2023. The following table summarizes the allocation of consideration paid for the fair value of assets acquired and liabilities assumed from NBNYC:

The following table provides a final allocation of consideration paid for the fair value of assets acquired and liabilities assumed from NBNYC as of January 6, 2023:


Purchase price consideration	$	21,281

Fair value of assets acquired:
Cash and due from banks	29,138
Interest-bearing deposits in banks	3,284
Total cash and cash equivalents	32,422

Available-for-sale securities (at fair value)	5,004
Other investments	1,226
Loans receivable	159,155
Federal Reserve Bank stock, at cost	54
Federal Home Loan Bank stock, at cost	1,470
Accrued interest receivable	353
Deferred income taxes	495
Goodwill	271
Core deposit intangible	1,040
Other assets	399
Total assets	$	201,889

Fair value of liabilities assumed:
Deposits:
Demand	$	21,878
Savings, Super NOW, and Money Market	10,975
Certificates of deposit	104,162
Total deposits	137,015

Advances from the Federal Home Loan Bank	27,817
Accrued expenses and other liabilities	15,776
Total liabilities	$	180,608

In connection with the Acquisition, the Company recorded $0.3 million of goodwill, which represents the excess of the purchase price over the fair value of the net assets acquired. Goodwill is an asset representing the acquired future economic benefits such as synergies that are not individually identified and separately recognized (i.e., it is measured as a residual). The amount of goodwill recognized is also impacted by measurement differences resulting from certain assets and liabilities not being recorded at fair value (e.g., income taxes, employee benefits). In accordance with ASC 805-30-30-1, the measurement of goodwill occurs on the Acquisition Date and, other than qualifying measurement period adjustments, no adjustments are made to goodwill recognized as of the Acquisition Date until and unless it becomes impaired.

ASC 805 provides for a period of time during which the acquirer may adjust provisional amounts recognized at the acquisition date to their subsequently determined acquisition-date fair values, referred to as the “measurement period.” Adjustments during the measurement period are not limited to just those relating to assets acquired and liabilities assumed but apply to all aspects of business combination accounting (e.g., the consideration transferred). Measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. Prior period information is not revised, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. In accordance with ASC 805, the Company recorded a measurement period adjustment and decreased goodwill by $1.0 million related to the finalization of the consideration transferred.

Information regarding the allocation of goodwill to the Company’s reportable segments, as well as the carrying amounts and amortization of the core deposit intangible, can be found within NOTE 22—SEGMENTS and NOTE 8—GOODWILL AND INTANGIBLE ASSETS, respectively. None of the goodwill is tax deductible. Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed in the NBNYC Acquisition.

Cash and cash equivalents. The estimated fair values of cash and cash equivalents approximate their stated face amounts, as these financial instruments are either due on demand or have short-term maturities.

Investment securities available-for-sale. Quoted market prices for the securities acquired were used to determine their fair values. If quoted market prices were not available for a specific security, then quoted prices for similar securities in active markets were used to estimate the fair value.

Loans. Each loan was assessed individually. The fair values for loans were estimated using a discounted cash flow methodology that considered factors including the type of loan and the related collateral, classification status, fixed or variable interest rate, remaining term, amortization status, and current discount rates. In addition, the probability of default, loss given default, and prepayment assumptions that were derived based on loan characteristics, historical loss experience, comparable market data, and current and forecasted economic conditions were used to estimate expected credit losses. The discount rates used for loans and leases were based on current market rates for new originations or comparable loans and leases and include adjustments for liquidity. The discount rate did not include credit losses as that was included as a reduction to the estimated cash flows. We determined the fair value of the PCD loans using the asset and income approach. We used the income approach for PCD loans where there was evidence that the borrower may be able to continue to service the loan and more likely than not continue to pay. We used the asset approach for PCD loans when the loan is on non-accrual status. Acquired loans were marked to fair value and adjusted for any PCD gross up as of the Acquisition Date.

Core Deposit Intangible. CDI is a measure of the value of non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts that are acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding, relative to an alternative source of funding. The CDI relating to the NBNYC Acquisition will be amortized over an estimated useful life of 10 years using the sum of years digits depreciation method. The Company evaluates such identifiable intangibles for impairment when an indication of impairment exists.

Deposit Liabilities. The fair values used for the demand and savings deposits by definition equal the amount payable on demand at the Acquisition date. The fair values for time deposits were estimated using a discounted cash flow methodology that applies interest rates currently being offered to the contractual interest rates on such time deposits.

Borrowings. The estimated fair value of borrowed funds is based on bid quotations received from securities dealers or the discounted value of contractual cash flows with interest rates currently in effect for borrowed funds with similar maturities.

PCD loans.

Purchased loans that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. For PCD loans and leases, the initial estimate of expected credit losses is recognized in the ACL on the date of acquisition using the same methodology as other loans and leases held-for-investment. The following table provides a summary of loans and leases purchased as part of the NBNYC Acquisition with credit deterioration and associated credit loss reserve at acquisition:


Par value (unpaid principal balance)	$	42,443
ACL at acquisition	(870)
Non-credit (discount)	(1,559)
Fair Value	$	40,014

Transaction costs describe the broad category of costs the Company incurs in connection with signed and/or closed acquisitions. Transaction costs include expenses associated with legal, accounting, regulatory, and other transition services rendered in connection with acquisition, travel expense, and other non-recurring direct expenses associated with acquisitions.

The Company incurred transaction costs related to the NBNYC Acquisition during the years ended December 31, 2023, 2022 and 2021 of $0.2 million, $2.3 million and $1.3 million, respectively . These costs have been included in the Consolidated Statement of Operations in Professional Services Expense.

BENEFIT PLANS - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands		12 Months Ended
	Jun. 14, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer match, percent		50.00%	50.00%	50.00%
Employer match of employee contributions, percent		0.02	0.02	0.02
Employer contribution		$ 400	$ 100	$ 100
Employee Stock Purchase Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares authorized (in shares)	200
Percentage of eligible compensation to withhold	15.00%
Fair market value of shares to be purchased	$ 25
Percentage of fair market value of common stock	85.00%
Shares purchased (in shares)		4

INVESTMENTS

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

NOTE 4—INVESTMENTS:

Investments consisted of the following at:


	December 31, 2023				December 31, 2022
	Cost		Fair Value		Cost		Fair Value
Debt securities available-for-sale, at fair value	$	32,372	$	32,171	$	—	$	—
Federal Home Loan Bank and Federal Reserve Bank stock	3,635		3,635		—		—
Non-controlled investments	796		728		1,360		1,360
Joint ventures	37,864		40,859		23,314		23,022

Controlled investments:
Equity	—		—		99,195		241,113
Debt	—		—		32,300		18,104
Total investments	$	74,667	$	77,393	$	156,169	$	283,599

The Company’s Non-Conforming Conventional Loan Program

NCL JV: On May 20, 2019, the Company and its joint venture partner launched NCL JV to provide non-conforming conventional commercial and industrial term loans to U.S. middle-market companies and small businesses. NCL JV is a 50/50 joint venture between NCL a wholly-owned subsidiary of the Company, and Conventional Lending TCP Holding, LLC, a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (Nasdaq: TCPC). NCL JV ceased funding new loans during 2020. On January 28, 2022, NCL JV closed a conventional commercial loan securitization with the sale of $56.3 million of Class A Notes, NCL Business Loan Trust 2022-1, Business Loan-Backed Notes, Series 2022-1, secured by a segregated asset pool consisting primarily of NCL JV’s portfolio of conventional commercial business loans, including loans secured by liens on commercial or residential mortgaged properties, originated by NCL JV and NBL. The Notes were rated “A” (sf) by DBRS Morningstar. The Notes were priced at a yield of 3.209%. The proceeds of the securitization were used, in part, to repay NCL JV’s credit facility and return capital to the NCL JV partners.

The following tables show certain summarized financial information for NCL JV:


Selected Statement of Assets and Liabilities Information	December 31, 2023		December 31, 2022
	(Unaudited)		(Unaudited)
Cash	$	612	$	791
Restricted cash	3,298		2,362
Investments in loans, at fair value (amortized cost of $68,404 and $78,785, respectively)	70,083		78,595
Other Assets	1,614		1,807
Total assets	$	75,607	$	83,555

Securitization notes payable	$	38,805	$	49,273
Other liabilities	905		1,109
Total liabilities	39,710		50,382

Net assets	35,897		33,173
Total liabilities and net assets	$	75,607	$	83,555


Selected Statements of Operations Information	Year Ended December 31,
		2023		2022		2021
		(Unaudited)		(Unaudited)		(Unaudited)
Interest and other income		$	6,160	$	6,966	$	6,300
Total expenses		2,524		2,916		2,612
Net investment income		3,636		4,050		3,688
Unrealized (depreciation) appreciation on investments		1,869		(4,494)		282
Net increase (decrease) in net assets resulting from operations		$	5,505	$	(444)	$	3,970

TSO JV: On August 5, 2022, NCL and TSO II Booster Aggregator, L.P. (“TSO II”) entered into a joint venture, TSO JV, governed by the Amended and Restated Limited Partnership Agreement for the TSO JV. TSO JV began making investments in non-conforming conventional commercial and industrial term loans during the fourth quarter of 2022. NCL and TSO II each committed to contribute an equal share of equity funding to the TSO JV and each have equal voting rights on all material matters. TSO JV intends to deploy capital over the course of time with additional leverage supported by a warehouse line of credit. The intended purpose of TSO JV is to invest in non-conforming conventional commercial and industrial term loans made to middle-market companies as well as small businesses.

The following tables show certain summarized financial information for TSO JV:


Selected Statement of Assets and Liabilities Information	December 31, 2023		December 31, 2022
	(Unaudited)		(Unaudited)
Cash	$	4,401	$	1,046
Restricted cash	1,183		498
Investments in loans, at fair value (amortized cost of $62,695 and $21,038, respectively)	66,689		22,449
Other assets	1,374		2,034
Total assets	$	73,647	$	26,027

Bank notes payable	$	29,636	$	12,950


Other liabilities	1,092		206
Total liabilities	30,728		13,156

Net assets	42,919		12,871
Total net assets	$	73,647	$	26,027


Selected Statements of Operations Information	Year Ended December 31,
		2023		2022		2021
		(Unaudited)		(Unaudited)		(Unaudited)
Interest and other income		$	3,823	$	101	$	—
Total expenses		4,430		385		—
Net investment income (loss)		(607)		(284)		—
Unrealized appreciation on investments		2,580		1,412		—
Realized loss on investments		(16)		—		—
Realized gain (loss) on derivative transactions		399		—		—
Unrealized gain (loss) on derivative transactions		(911)		218		—
Net increase in net assets resulting from operations		$	1,445	$	1,346	$	—

Transactions with Affiliated Companies

An affiliated company is an unconsolidated entity in which the Company has an ownership of 5% or more of its voting securities. Transactions related to our joint ventures and non-controlled investments for the year ended December 31, 2023 were as follows:


Company	Fair Value at December 31, 2022		Purchases (Cost)		Principal Received		Return of Investment		Net Realized Gains/(Losses)		Net Unrealized Gains/(Losses)		Fair Value at December 31, 2023		Interest and Other Income		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

Non-Control Investments
EMCAP Loan Holdings, LLC	$	1,000	$	—	$	—	$	(564)	$	—	$	(68)	$	368	$	—	$	116
Biller Genie Software, LLC	360		—		—		—		—		—		360		—		—
Total Non-Control Investments	$	1,360	$	—	$	—	$	(564)	$	—	$	(68)	$	728	$	—	$	116

Total Affiliate Investments	$	24,382	$	14,550	$	—	$	(564)	$	—	$	3,219	$	41,587	$	—	$	1,757

Debt Securities Available-for-Sale

The following tables summarize the amortized cost and fair value of available-for-sale securities by major type as of December 31, 2023:


At December 31 , 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. Treasury notes	$	29,372	$	—	$	67	$	29,305
Government agency debentures	3,000		—		134		2,866
Total available for sale securities	$	32,372	$	—	$	201	$	32,171

There was $0.2 million accrued interest receivable on available-for-sale securities at December 31, 2023, and is included in Other assets in the accompanying Consolidated Statements of Financial Condition.

During the year ended December 31, 2023, no securities were sold or settled.

Unrealized Losses


	At 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

Management evaluates available-for-sale debt securities to determine whether the unrealized loss is due to credit-related factors or non-credit-related factors. The evaluation considers the extent to which the security’s fair value is less than cost, the financial condition and near-term prospects of the issuer, and intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. These unrealized losses are primarily the result of non-credit-related volatility in the market and market interest rates. Since none of the unrealized losses relate to marketability of the securities or the issuers' ability to honor redemption obligations and the Company has the intent and ability to hold the securities for a sufficient period of time to recover unrealized losses, none of the losses have been recognized in the Company’s Consolidated Statements of Income.

Contractual Maturities

The following table summarizes the amortized cost and fair value of available-for-sale securities by contractual maturity:


	At December 31 , 2023				At December 31, 2022
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing within 1 year	$	32,372	$	32,171	$	—	$	—



Total available for sale securities	$	32,372	$	32,171	$	—	$	—

Other information

The following table summarizes Newtek Bank’s available-for-sale securities pledged for deposits, borrowings, and other purposes:


	At December 31 , 2023		At December 31, 2022
Pledged for deposits	$	—	$	—
Pledged for borrowings and other	30,730		—
Total available for sale securities pledged	$	30,730	$	—

BORROWINGS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
BORROWINGS - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Valuation adjustment, FHLB	$ (200)
Borrowings	644,122	$ 539,326
Secured Debt \| FHLB Advances
Debt Instrument [Line Items]
Borrowings	23,184
Medium-term Notes
Debt Instrument [Line Items]
Interest expense	$ 51,900	$ 26,300	$ 20,500

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

BORROWINGS - Capital One Facility (Details) - Capital One Facilities - Line of Credit - USD ($) $ in Millions	1 Months Ended		12 Months Ended
	Jun. 30, 2018	May 31, 2017	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2023
Capital One, Guaranteed and Unguaranteed
Debt Instrument [Line Items]
Line of credit						$ 150.0
Interest expense			$ 11.0	$ 4.0	$ 1.5
Capital One, Guaranteed
Debt Instrument [Line Items]
Debt Instrument, Advance Rate		90.00%
Capital One, Guaranteed \| Prime Rate
Debt Instrument [Line Items]
Interest rate, basis spread	0.75%
Capital One, Unguaranteed
Debt Instrument [Line Items]
Debt Instrument, Advance Rate		55.00%
Capital One, Unguaranteed \| Prime Rate
Debt Instrument [Line Items]
Interest rate, basis spread	0.25%

EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($)	3 Months Ended			6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Basic earnings per share:
Net income available to common shareholders						$ 45,875,000	$ 32,311,000	$ 84,142,000
Weighted-average basic shares outstanding (in shares)	24,277,000	24,264,000	24,223,000	24,244,000	24,255,000	24,263,000	24,198,000	22,795,000
Basic earnings per share (in dollars per share)	$ 0.43	$ 0.27	$ 0.76	$ 1.03	$ 1.46	$ 1.89	$ 1.34	$ 3.69
Diluted earnings per share:
Net income available to common shareholders						$ 45,875,000	$ 32,311,000	$ 84,142,000
Weighted-average basic shares outstanding (in shares)	24,277,000	24,264,000	24,223,000	24,244,000	24,255,000	24,263,000	24,198,000	22,795,000
Add effect of dilutive stock options and restricted stock grants (in shares)						85,000	0	0
Total weighted-average diluted shares outstanding (in shares)	24,413,000	24,306,000	24,881,000	24,298,000	24,336,000	24,348,000	24,198,000	22,795,000
Diluted earnings per share (in dollars per share)	$ 0.43	$ 0.27	$ 0.74	$ 1.03	$ 1.46	$ 1.88	$ 1.34	$ 3.69
Anti-dilutive stock options and restricted shares (in shares)						$ 1,153,000	$ 0	$ 0

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

BORROWINGS

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

BORROWINGS

NOTE 12—BORROWINGS:

At December 31, 2023 and December 31, 2022, the Company had borrowings composed of the following:


	December 31, 2023						December 31, 2022
	Commitments		Borrowings Outstanding		Weighted Average Interest Rate		Commitments		Borrowings Outstanding		Weighted Average Interest Rate
Bank Lines of Credit:
Capital One line of credit - guaranteed1	$	—	$	—	—	%	$	150,000	$	10,500	6.75	%
Capital One line of credit - unguaranteed1	—		—		—	%	—		45,385		7.75	%
Webster NMS Note2	54,871		36,628		7.94	%	—		—		—
SPV I Capital One Facility2	60,000		16,080		8.20	%	—		—		—
SPV II Deutsche Bank Facility2	50,000		6,799		10.04	%	—		—		—
SPV III One Florida Bank Facility2	30,000		257		9.50	%	—		—		—
FHLB Advances	113,891		23,184		2.13	%	—		—		—
Notes issued by Parent Company:
2024 Notes2	38,250		38,124		5.75	%	38,250		37,903		5.75	%
2025 5.00% Notes2	30,000		29,563		5.00	%	30,000		29,306		5.00	%
2025 8.125% Notes2,3	50,000		49,433		8.13	%	—		—		—	%
2026 Notes2	115,000		113,564		5.50	%	115,000		112,846		5.50	%
2028 Notes2,4	40,000		38,378		8.00	%	—		—		—	%
Notes payable - related parties	—		—		—	%	50,000		24,250		6.72	%
Notes payable - Securitization Trusts2,5	296,223		292,112		7.84	%	283,143		279,136		6.19	%
Total	$	878,235	$	644,122	7.04	%	$	666,393	$	539,326	6.11	%

(2) Net of deferred financing costs.

(5) At December 31, 2023 and 2022, the net assets of the consolidated Trusts totaled $14.8 million and $14.1 million, respectively.


	December 31, 2023			December 31, 2022
	Principal balance	Unamortized deferred financing costs	Net carrying amount1	Principal balance	Unamortized deferred financing costs	Net carrying amount
Bank Lines of Credit:


Webster NMS Note	36,881	(253)	36,628	—	—	—
SPV I Capital One Facility	16,300	(220)	16,080	—	—	—
SPV II Deutsche Bank Facility	6,900	(101)	6,799	—	—	—
SPV III One Florida Bank Facility	375	(118)	257	—	—	—
Notes issued by Parent Company:
2024 Notes	38,250	(126)	38,124	38,250	(347)	37,903
2025 5.00% Notes	30,000	(437)	29,563	30,000	(694)	29,306
2025 8.125% Notes	50,000	(567)	49,433	—	—	—
2026 Notes	115,000	(1,436)	113,564	115,000	(2,154)	112,846
2028 Notes	40,000	(1,622)	38,378	—	—	—
Notes Payable - Securitization Trusts	296,223	(4,111)	292,112	283,143	(4,007)	279,136

At December 31, 2023 and December 31, 2022, the carrying amount of the Company’s borrowings under the Capital One, Deutsche Bank, Webster, and One Florida lines of credit, and the Notes payable - Securitization Trusts, approximates fair value due to their variable interest rates.

At December 31, 2023, the carrying amount of Newtek Bank’s FHLB borrowings includes a $0.2 million purchase accounting adjustment from the current principal amount to reach a balance sheet value of $23.2 million.

The fair values of the fixed rate 2028 Notes, 2026 Notes and 2024 Notes are based on the closing public share price on the date of measurement as included in the chart below.


	December 31, 2023				December 31, 2022
	Closing Price		Fair Value		Closing Price	Fair Value
2028 Notes	$	25.04	$	40,070	n/a	n/a
2026 Notes	23.75		109,250		24.83	114,218
2024 Notes	24.99		38,235		24.80	37,944

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1B
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Paragraph 1C
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-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Paragraph 1I
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITES (Tables)

12 Months Ended

Dec. 31, 2023

Payables and Accruals [Abstract]

Schedule of accounts payable and accrued liabilities

The following table details the components of accounts payable, accrued expenses and other liabilities at December 31, 2023 and December 31, 2022:


	December 31, 2023		December 31, 2022
Loan related remittances due to SBA and participants	$	3,577	$	70
Accrued payroll and related expenses	1,349		3,051
Accrued interest	4,114		2,846
Funds in process to PMT's payroll customers	5,060		—
Loan processing, servicing and other loan related expenses	3,793		2,059
SBA repair & denial reserve1	3,063		—
Good faith deposits	893		—
Other	15,451		13,398
Total accounts payable, accrued expenses and other liabilities	$	37,300	21,424

COMMITMENTS AND CONTINGENCIES - Obligations and Commitments Under Operating Lease and Employment Agreements (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Operating Leases
2024	$ 2,761
2025	2,469
2026	1,842
2027	430
2028	0
Thereafter	0
Total	7,502
Employment Agreement
2024	525
2025	0
2026	0
2027	0
2028	0
Thereafter	0
Total	525
Total
2024	3,286
2025	2,469
2026	1,842
2027	430
2028	0
Thereafter	0
Total	$ 8,027

DEPOSITS - Maturities (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Banking and Thrift, Interest [Abstract]
2024	$ 54,805
2025	63,402
2026	28,379
2027	19,710
2028	745
Thereafter	0
Total time deposits	$ 167,041

SIGNIFICANT ACCOUNTING POLICIES - Cash and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and due from banks	$ 15,398	$ 223,692	$ 256,333	$ 197,143	$ 53,692
Restricted cash	30,919				71,914
Interest bearing deposits in banks	137,689				0
Total cash and cash equivalents	$ 184,006				$ 125,606	$ 186,860	$ 51,425

- Definition

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Excludes cash and cash equivalents within disposal group and discontinued operation.

+ References + Details

STOCK BASED COMPENSATION

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

STOCK BASED COMPENSATION

NOTE 15—STOCK BASED COMPENSATION:

Stock Plans

The Company accounts for its stock-based compensation plan using the fair value method, as prescribed by ASC 718, Compensation—Stock Compensation. Accordingly, for restricted stock awards, the Company measures the grant date fair value based upon the market price of its Common Stock on the date of the grant and amortizes the fair value of the awards as stock-based compensation expense over the requisite service period, which is generally the vesting term.

The Compensation, Corporate Governance and Nominating Committee of the Board approves the issuance of awards of restricted stock to employees and directors pursuant to the 2023 Stock Incentive Plan, which was approved by the Board in April 2023 and the Company’s shareholders on June 14, 2023. No new awards may be granted under the 2015 Stock Incentive Plan, which was terminated by the Board in April 2023. The following table summarizes the restricted stock issuances under the 2015 and 2023 Stock Incentive Plans, net of shares forfeited, if any:


	2023 Plan2	2015 Plan
Restricted Stock authorized under the plan1	3.0 million	1.5 million
Net restricted stock (granted)/forfeited during:
Year ended December 31, 2020 and prior	—	(223)
Year ended December 31, 2021	—	(215)
Year ended December 31, 2022	—	(251)
Year ended December 31, 2023	(82)	28
Total net restricted stock (granted)/forfeited	(82)	(661)

(1) No stock options were granted under the 2015 or 2023 Stock Incentive Plan.

(2) The 2023 Stock Incentive Plan provides for an initial share reserve of up to 3.0 million shares of Common Stock.

Stock-based compensation

For the years ended December 31, 2023, 2022, and 2021, the Company recognized total stock-based compensation expense of $2.8 million, $2.5 million, and $2.1 million, respectively.

As of December 31, 2023, there was $3.6 million of total unrecognized compensation expense related to unvested shares of restricted stock granted. This compensation expense is expected to be recognized over a remaining weighted-average period of approximately 1.7 years as of December 31, 2023.

Shares outstanding

As of December 31, 2023, the Company has 345 thousand shares outstanding related to grants of restricted stock awards. The awards were issued at a weighted average grant date fair value of $19.18. In addition, there are 44 thousand shares outstanding relating to dividends on unvested restricted stock awards as of December 31, 2023.

During the years ended December 31, 2023 and 2022, additional shares were issued related to dividends on unvested shares of restricted stock granted as follows:

Year Ended December 31, 2023

Year Ended December 31, 2022

# of Shares

$ of Shares

# of Shares

$ of Shares

Dividends on Unvested Shares of Restricted Stock Grants

$263

$646

BUSINESS COMBINATION (Tables)

12 Months Ended

Dec. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of business acquisitions

The following table provides a final allocation of consideration paid for the fair value of assets acquired and liabilities assumed from NBNYC as of January 6, 2023:


Purchase price consideration	$	21,281

Fair value of assets acquired:
Cash and due from banks	29,138
Interest-bearing deposits in banks	3,284
Total cash and cash equivalents	32,422

Available-for-sale securities (at fair value)	5,004
Other investments	1,226
Loans receivable	159,155
Federal Reserve Bank stock, at cost	54
Federal Home Loan Bank stock, at cost	1,470
Accrued interest receivable	353
Deferred income taxes	495
Goodwill	271
Core deposit intangible	1,040
Other assets	399
Total assets	$	201,889

Fair value of liabilities assumed:
Deposits:
Demand	$	21,878
Savings, Super NOW, and Money Market	10,975
Certificates of deposit	104,162
Total deposits	137,015

Advances from the Federal Home Loan Bank	27,817
Accrued expenses and other liabilities	15,776
Total liabilities	$	180,608

The following table provides a summary of loans and leases purchased as part of the NBNYC Acquisition with credit deterioration and associated credit loss reserve at acquisition:


Par value (unpaid principal balance)	$	42,443
ACL at acquisition	(870)
Non-credit (discount)	(1,559)
Fair Value	$	40,014

SHAREHOLDERS' EQUITY - Dividends Declared and Distributed (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands									12 Months Ended
	Jan. 12, 2024	Oct. 20, 2023	Jul. 21, 2023	Apr. 14, 2023	Dec. 30, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2022
Distribution of Assets, Liabilities and Stockholders' Equity [Line Items]
Amount Per Share		$ 0.18	$ 0.18	$ 0.18	$ 0.70	$ 0.65	$ 0.75	$ 0.65
Cash Distribution		$ 4,293	$ 4,293	$ 4,291	$ 16,224	$ 15,325	$ 17,634	$ 15,361
DRIP Shares Issued		6	4	6	45	21	21	9
DRIP Shares Value		$ 71	$ 73	$ 72	$ 692	$ 323	$ 374	$ 225	$ 1,614
Subsequent Event
Distribution of Assets, Liabilities and Stockholders' Equity [Line Items]
Amount Per Share	$ 0.18
Cash Distribution	$ 4,371
DRIP Shares Issued	0
DRIP Shares Value	$ 0

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 26—SUBSEQUENT EVENTS: Dividends On March 19, 2024, the Company declared a first quarter 2024 cash dividend of $0.19 per share, which is payable on April 15, 2024 to shareholders of record as of April 1, 2024.

Insider Trading Arrangements	3 Months Ended	12 Months Ended
Insider Trading Arrangements	Dec. 31, 2023 shares	Dec. 31, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Salvatore Mulia [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On June 16, 2023, Salvatore Mulia, a member of our Board, entered into a written plan for the sale of an aggregate 9,000 shares of common stock. The plan is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. The plan commenced on September 21, 2023 and terminates on September 22, 2024.
Name	Salvatore Mulia
Title	member of our Board
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 16, 2023
Arrangement Duration	367 days
Aggregate Available	9,000	9,000

BORROWINGS - Outstanding Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Aug. 31, 2023	Jan. 23, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	May 20, 2021	Feb. 16, 2021	Jan. 31, 2021	Oct. 31, 2019	Jul. 25, 2019	Nov. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Weighted Average Interest Rate	7.04%			6.11%
Webster Note - MWI \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 36,881
Unamortized deferred financing costs	(253)
Net carrying amount	$ 36,628
Weighted Average Interest Rate	7.94%
Capital One Facilities \| Line of Credit
Debt Instrument [Line Items]
Principal balance	$ 16,300
Unamortized deferred financing costs	(220)
Net carrying amount	16,080
Deutsche Bank Line of Credit \| Line of Credit
Debt Instrument [Line Items]
Principal balance	6,900
Unamortized deferred financing costs	(101)
Net carrying amount	$ 6,799
Weighted Average Interest Rate	10.04%
One Florida line of credit - SP3 \| Line of Credit
Debt Instrument [Line Items]
Principal balance	$ 375
Unamortized deferred financing costs	(118)
Net carrying amount	$ 257
Weighted Average Interest Rate	9.50%
2024 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 38,250						$ 10,000	$ 5,000			$ 55,000
Unamortized deferred financing costs	(126)			$ (347)
Net carrying amount	$ 38,124			$ 37,903
Weighted Average Interest Rate	5.75%			5.75%							5.75%
2025 5.00% Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 30,000			$ 30,000
Unamortized deferred financing costs	(437)			(694)
Net carrying amount	$ 29,563			$ 29,306
Weighted Average Interest Rate	5.00%			5.00%
2025 8.125% Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 50,000		$ 50,000
Unamortized deferred financing costs	(567)
Net carrying amount	$ 49,433
Weighted Average Interest Rate	8.125%		8.125%	0.00%
2026 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 115,000			$ 115,000					$ 115,000
Unamortized deferred financing costs	(1,436)			(2,154)
Net carrying amount	$ 113,564			$ 112,846
Weighted Average Interest Rate	5.50%			5.50%					5.50%
2028 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 40,000	$ 40,000		$ 0
Unamortized deferred financing costs	(1,622)			0
Net carrying amount	$ 38,378			$ 0
Weighted Average Interest Rate	8.00%	8.00%		0.00%
Securitization Trusts \| Secured Debt
Debt Instrument [Line Items]
Principal balance	$ 296,223			$ 283,143	$ 103,400	$ 103,400				$ 118,900		$ 108,600	$ 75,400
Unamortized deferred financing costs	(4,111)			(4,007)
Net carrying amount	$ 292,112			$ 279,136
Weighted Average Interest Rate	7.84%			6.19%

LOANS

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

LOANS

NOTE 5—LOANS:

Loans held for investment

Loans held for investment included SBA 7(a) loans originated by NSBF and Newtek Bank, as well as CRE and C&I loans originated by Newtek Bank. The following tables shows the Company’s loan portfolio by industry for loans held for investment, at fair value and loans held for investment, at amortized cost:


	Loans Held for Investment, at Fair Value
	December 31, 2023				December 31, 2022
	Cost		Fair Value		Cost		Fair Value
Food Services and Drinking Places	$	43,779	$	43,955	$	47,012	$	47,198
Specialty Trade Contractors	40,193		35,451		42,082		38,059
Professional, Scientific, and Technical Services	36,248		35,377		39,910		38,086
Ambulatory Health Care Services	27,291		26,633		27,275		25,151
Merchant Wholesalers, Durable Goods	21,873		21,152		22,164		22,004
Administrative and Support Services	21,319		19,521		22,352		20,827
Amusement, Gambling, and Recreation Industries	21,289		22,839		23,812		24,928
Repair and Maintenance	15,886		17,005		16,993		17,165
Merchant Wholesalers, Nondurable Goods	15,623		15,573		16,183		15,312
Truck Transportation	15,590		12,113		23,673		18,071
Personal and Laundry Services	12,867		13,584		12,949		13,333
Fabricated Metal Product Manufacturing	12,439		13,205		13,483		14,032
Food Manufacturing	10,233		8,714		10,756		8,873
Construction of Buildings	9,868		9,890		11,252		10,194
Accommodation	9,259		10,162		11,476		10,428
Motor Vehicle and Parts Dealers	9,046		9,382		10,071		9,536
Social Assistance	8,857		9,721		9,150		9,857
Support Activities for Mining	8,455		7,754		10,426		8,615
Transportation Equipment Manufacturing	7,687		7,999		8,272		8,445
Building Material and Garden Equipment and Supplies Dealers	7,384		6,781		8,098		7,689
Food and Beverage Stores	7,026		7,306		5,711		5,857
Rental and Leasing Services	6,764		7,178		7,417		7,647
Nursing and Residential Care Facilities	6,182		6,709		8,187		8,697
Educational Services	5,368		5,636		5,838		6,133
Other	102,037		96,161		118,251		109,131
Total	$	482,563	$	469,801	$	532,793	$	505,268

Past Due and Non-Accrual Loans

The following tables summarize the aging of accrual and non-accrual loans by class:


	As of December 31, 2023
		30-59 Days Past Due and Accruing		60-89 Days Past Due and Accruing		90 or more Days Past Due and Accruing(1)		Non- accrual		Total past Due and Non-accrual		Current		Total Carried at Amortized Cost		Total Loans Accounted for Under the Fair Value Option		Total Loans Held for Investment
At amortized cost
SBA		$	3,637	$	311	$	—	$	752	$	4,700	$	159,218	$	163,918	$	—	$	163,918
Commercial Real Estate		948		—		—		4,621		5,569		158,234		163,803		—		163,803
Commercial & Industrial		—		—		—		—		—		8,191		8,191		—		8,191
Total, at amortized cost		$	4,585	$	311	$	—	$	5,373	$	10,269	$	325,643	$	335,912	$	—	$	335,912
Deferred fees and costs														393		—		393
Total, at amortized cost net of deferred fees and costs														$	336,305	$	—	$	336,305
Allowance for credit losses														(12,574)		—		(12,574)
Total, at amortized cost, net														$	323,731	$	—	$	323,731

At fair value
SBA		$	20,380	$	16,075	$	—	$	48,174	$	84,629	$	385,172			$	469,801	$	469,801


Total loans held for investment		$	24,965	$	16,386	$	—	$	53,547	$	94,898	$	710,815	$	323,731	$	469,801	$	793,532

(1)Represents loans that are considered well secured and in the process of collection.


	As of December 31, 2022
		30-59 Days Past Due and Accruing		60-89 Days Past Due and Accruing		90 or more Days Past Due and Accruing		Non- accrual		Total past Due and Non-accrual		Current		Total Carried at Amortized Cost		Loans Accounted for Under the Fair Value Option		Total Loans


SBA		$	18,681	$	12,754	$	—	$	34,433	$	65,868	$	439,400	$	—	$	505,268	$	505,268

The Company identified five loans that did not share similar risk characteristics with the loan segments identified in NOTE 2—SIGNIFICANT ACCOUNTING POLICIES and evaluated them for impairment individually. The unpaid contractual principal balance and recorded investment for the loans individually assessed was $5.3 million with an allowance of $0.1 million as of the year ended December 31, 2023.

Credit Quality Indicators

Newtek Bank uses internal loan reviews to assess the performance of individual loans. An independent review of the loan portfolio is performed annually by an external firm. The goal of Newtek Bank’s annual review of each borrower’s financial performance is to validate the adequacy of the risk grade assigned.

Newtek Bank uses a grading system to rank the quality of each loan and lease. The grade is periodically evaluated and adjusted as performance dictates. Loan and lease grades 1 through 4 are passing grades and grade 5 is special mention. Collectively, grades 6 through 7 represent classified loans in Newtek Bank’s portfolio. The following guidelines govern the assignment of these risk grades:

Exceptional (1 Rated): These loans are of the highest quality, with strong, well-documented sources of repayment. These loans and leases will typically have multiple demonstrated sources of repayment with no significant identifiable risk to collection, exhibit well-qualified management, and have liquid financial statements relative to both direct and indirect obligations.

Quality (2 Rated): These loans are of very high credit quality, with strong, well-documented sources of repayment. These loans and leases exhibit very strong, well defined primary and secondary sources of repayment, with no significant identifiable risk of collection and have internally generated cash flow that more than adequately covers current maturities of long-term debt.

Satisfactory (3 Rated): These loans exhibit satisfactory credit risk and have excellent sources of repayment, with no significant identifiable risk of collection. These loans and leases have documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. They have adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor.

Acceptable (4 Rated): These loans show signs of weakness in either adequate sources of repayment or collateral but have demonstrated mitigating factors that minimize the risk of delinquency or loss. These loans and leases may have unproved, insufficient or marginal primary sources of repayment that appear sufficient to service the debt at this time. Repayment weaknesses may be due to minor operational issues, financial trends, or reliance on projected performance. They may also contain marginal or unproven secondary sources to liquidate the debt, including combinations of liquidation of collateral and

liquidation value to the net worth of the borrower or guarantor.

Special mention (5 Rated): These loans show signs of weaknesses in either adequate sources of repayment or collateral. These loans and leases may contain underwriting guideline tolerances and/or exceptions with no mitigating factors; and/or instances where adverse economic conditions develop subsequent to origination that do not jeopardize liquidation of the debt but substantially increase the level of risk.

Substandard (6 Rated): Loans graded Substandard are inadequately protected by current sound net worth, paying capacity of the obligor, or pledged collateral. Loans and leases classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These loans and leases are consistently not meeting the repayment schedule.

Doubtful (7 Rated): Loans graded Doubtful have all the weaknesses inherent in those classified as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. The ability of the borrower to service the debt is extremely weak, overdue status is constant, the debt has been placed on non-accrual status, and no definite repayment schedule exists. Once the loss position is determined, the amount is charged off.

Loss (8 Rated): Loss rated loans are considered uncollectible and of such little value that their continuance as assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this credit even though partial recovery may be affected in the future.

The following tables present asset quality indicators by portfolio class and origination year as of December 31, 2023.


	Term Loans Held for Investment by Origination Year
	2023		2022		2021		2020		2019		Prior		Total
SBA 7(a) Unguaranteed, net of deferred fees and costs
Risk Grades 1-4	$	161,263	$	—	$	—	$	—	$	—	$	—	$	161,263
Risk Grades 5-6	2,655		—		—		—		—		—		2,655
Risk Grade 7	—		—		—		—		—		—		—
Risk Grade 8	—		—		—		—		—		—		—
Total	$	163,918	$	—	$	—	$	—	$	—	$	—	$	163,918

SBA, at fair value
Risk Grades 1-4	$	34,289	$	151,929	$	53,998	$	27,870	$	52,175	$	94,751	$	415,012
Risk Grades 5-6	349		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

Commercial Real Estate
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

Commercial & Industrial
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

December 31, 2022	2022		2021		2020		2019		2018		Prior		Total
SBA
Risk Grades 1-4	$	171,948	$	66,113	$	34,116	$	69,563	$	55,376	$	70,669	$	467,785
Risk Grades 5-6	698		3,633		595		5,400		6,772		20,273		37,371
Risk Grade 7	—		—		—		—		—		112		112
Total	$	172,646	$	69,746	$	34,711	$	74,963	$	62,148	$	91,054	$	505,268

Allowance for Credit Losses

See NOTE 2—SIGNIFICANT ACCOUNTING POLICIES for a description of the methodologies used to estimate the ACL.

The following table details activity in the ACL for the year ended December 31, 2023:


	Commercial Real Estate		Commercial & Industrial		Small Business Administration		Total
Beginning Balance	$	—	$	—	$	—	$	—
Adjustment to Beginning Balance due to PCD marks1	774		96		—		870
Charge offs	—		—		—		—
Recoveries	—		—		—		—
Provision	634		218		10,852		11,704
Ending Balance	$	1,408	$	314	$	10,852	$	12,574

Loan Modifications Made to Borrowers Experiencing Financial Difficulty

The Company did not make any loan modifications to borrowers experiencing financial difficulty that would require disclosure, such as principal forgiveness, term extension, or interest rate reductions during the year ended December 31, 2023. Additionally there were no troubled debt restructurings under legacy U.S. GAAP during the year ended December 31, 2023.

Loans held for sale


	December 31, 2023				December 31, 2022
	At FV		At LCM		At FV		At LCM
SBA 504 First Lien	$	66,387	$	38,787	$	—	$	—
SBA 504 Second Lien	20,757		5,741		—		—
SBA 7(a)	262		64		287		—
SBA 7(a) Partials	104		11,237		18,884		—
ALP	31,357		—		—		—
Subtotal	118,867		55,829		19,171		—
Deferred fees and costs	—		778		—		—
Loans held for sale, net of deferred fees and costs	$	118,867	$	56,607	$	19,171	$	—