0001587987-24-000082 | 10-Q | XBRL Viewer

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Joint ventures, cost	$ 45,108	$ 37,864
Preferred stock, par value (in dollars per share)	$ 0.02	$ 0.02
Preferred stock, shares authorized (in shares)	20	20
Preferred stock, shares issued (in shares)	20	20
Preferred stock, shares outstanding (in shares)	20	20
Common stock, par value (in dollars per share)	$ 0.02	$ 0.02
Common stock, shares authorized (in shares)	199,980	199,980
Common stock, shares issued (in shares)	24,715	24,680
Common shares outstanding at end of period (in shares)	24,715	24,680
Non-Control Investments
Investments, cost	$ 772	$ 796

LOANS

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

LOANS

NOTE 5—LOANS:

Loans held for investment (HFI)

Loans held for investment (HFI) 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
	March 31, 2024				December 31, 2023
	Cost		Fair Value		Cost		Fair Value
Food Services and Drinking Places	$	41,147	$	41,361	$	43,779	$	43,955
Specialty Trade Contractors	39,276		34,659		40,193		35,451
Professional, Scientific, and Technical Services	34,584		33,734		36,248		35,377
Ambulatory Health Care Services	26,757		25,373		27,291		26,633
Amusement, Gambling, and Recreation Industries	18,923		20,281		21,289		22,839
Administrative and Support Services	20,521		18,847		21,319		19,521
Merchant Wholesalers, Durable Goods	19,815		18,476		21,873		21,152
Repair and Maintenance	15,513		16,584		15,886		17,005
Merchant Wholesalers, Nondurable Goods	13,841		13,662		15,623		15,573
Personal and Laundry Services	12,612		13,320		12,867		13,584
Fabricated Metal Product Manufacturing	11,825		12,608		12,439		13,205
Truck Transportation	15,138		11,156		15,590		12,113
Construction of Buildings	9,715		9,810		9,868		9,890
Accommodation	9,213		9,668		9,259		10,162
Social Assistance	8,730		9,547		8,857		9,721
Food Manufacturing	10,160		8,573		10,233		8,714
Motor Vehicle and Parts Dealers	8,055		8,358		9,046		9,382
Transportation Equipment Manufacturing	7,619		7,974		7,687		7,999
Support Activities for Mining	7,942		7,290		8,455		7,754
Food and Beverage Stores	6,750		7,058		7,026		7,306
Rental and Leasing Services	6,657		7,054		6,764		7,178
Nursing and Residential Care Facilities	6,126		6,581		6,182		6,709
Building Material and Garden Equipment and Supplies Dealers	5,876		5,750		7,384		6,781
Educational Services	5,148		5,356		5,368		5,636
Other	95,638		89,848		102,037		96,161
Total	$	457,581	$	442,928	$	482,563	$	469,801

Past Due and Non-Accrual Loans

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


	As of March 31, 2024
		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		$	9,818	$	—	$	—	$	2,017	$	11,835	$	202,203	$	214,038	$	—	$	214,038
CRE		326		946		—		5,998		7,270		162,599		169,869		—		169,869
C&I		—		—		—		—		—		13,404		13,404		—		13,404
Total, at amortized cost		$	10,144	$	946	$	—	$	8,015	$	19,105	$	378,206	$	397,311	$	—	$	397,311
Deferred fees and costs														314		—		314
Total, at amortized cost net of deferred fees and costs														$	397,625	$	—	$	397,625
Allowance for credit losses														(16,126)		—		(16,126)
Total, at amortized cost, net														$	381,499	$	—	$	381,499

At fair value
SBA		$	61,314	$	548	$	3,829	$	46,001	$	111,692	$	331,236	$	—	$	442,928	$	442,928


Total loans held for investment		$	71,458	$	1,494	$	3,829	$	54,016	$	130,797	$	709,442	$	381,499	$	442,928	$	824,427

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


	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		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
CRE		948		—		—		4,621		5,569		158,234		163,803		—		163,803
C&I		—		—		—		—		—		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

Credit Quality Indicators

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

The Company 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 March 31, 2024.


	Term Loans Held for Investment by Origination Year
	2024		2023		2022		2021		2020		Prior		Total
SBA 7(a) Unguaranteed, net of deferred fees and costs
Risk Grades 1-4	$	50,645	$	154,273	$	—	$	—	$	—	$	—	$	204,918
Risk Grades 5-6	771		8,349		—		—		—		—		9,120
Risk Grade 7	—		—		—		—		—		—		—
Risk Grade 8	—		—		—		—		—		—		—
Total	$	51,416	$	162,622	$	—	$	—	$	—	$	—	$	214,038

SBA, at fair value
Risk Grades 1-4	$	—	$	33,261	$	145,730	$	50,577	$	26,696	$	134,400	$	390,664
Risk Grades 5-6	—		325		9,564		6,090		1,276		34,098		51,353
Risk Grade 7	—		—		—		—		—		—		—
Risk Grade 8	—		—		149		17		22		723		911
Total	$	—	$	33,586	$	155,443	$	56,684	$	27,994	$	169,221	$	442,928

CRE
Risk Grades 1-4	$	10,101	$	26,144	$	33,519	$	16,555	$	399	$	74,091	$	160,809
Risk Grades 5-6	—		—		—		686		870		7,504		9,060
Risk Grade 7	—		—		—		—		—		—		—
Total	$	10,101	$	26,144	$	33,519	$	17,241	$	1,269	$	81,595	$	169,869

C&I
Risk Grades 1-4	$	2,901	$	8,486	$	—	$	—	$	—	$	2,017	$	13,404
Risk Grades 5-6	—		—		—		—		—		—		—
Risk Grade 7	—		—		—		—		—		—		—
Total	$	2,901	$	8,486	$	—	$	—	$	—	$	2,017	$	13,404

Total	$	64,418	$	230,838	$	188,962	$	73,925	$	29,263	$	252,833	$	840,239

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

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 three months ended March 31, 2024 and 2023.


	March 31, 2024								March 31, 2023
	CRE		C&I		SBA		Total		CRE		C&I		SBA		Total
Beginning Balance	$	1,408	$	314	$	10,852	12,574		$	—	$	—	$	—	—
Adjustment to Beginning Balance due to PCD marks1	—		—				—		775		96		—		871
Charge offs	—		—		(370)		(370)		—		—		—		—
Recoveries	—		—		—		—		—		—		—		—
Provision for Credit Losses2	(130)		(17)		4,069		3,922		1,185		127		6		1,318
Total	$	1,278	$	297	$	14,551	$	16,126	$	1,960	$	223	$	6	$	2,189

The Company identified twelve and five loans as of March 31, 2024 and December 31, 2023, respectively, 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 following table presents the individually evaluated and collectively evaluated ACL by segment:


	March 31, 2024								December 31, 2023
ACL	CRE		C&I		SBA		Total		CRE		C&I		SBA		Total
Individually Evaluated	$	—	$	—	$	711	$	711	$	—	$	—	$	102	$	102
Collectively Evaluated	1,278		297		13,840		15,415		1,408		314		10,750		12,472
Total	$	1,278	$	297	$	14,551	$	16,126	$	1,408	$	314	$	10,852	$	12,574

The following table presents the recorded investment in loans individually evaluated and collectively evaluated by segment:


	March 31, 2024								December 31, 2023
Recorded Investment	CRE		C&I		SBA		Total		CRE		C&I		SBA		Total
Individually Evaluated	$	5,998	$	—	$	1,881	$	7,879	$	4,621	$	—	$	727	$	5,348
Collectively Evaluated	163,871		13,404		212,157		389,432		159,182		8,191		163,191		330,564
Total	$	169,869	$	13,404	$	214,038	$	397,311	$	163,803	$	8,191	$	163,918	$	335,912

The amortized cost basis of loans on nonaccrual status and the individually assessed ACL are as follows:


	March 31, 2024						December 31, 2023
	Nonaccrual without Allowance		Nonaccrual with Allowance		ACL		Nonaccrual without Allowance		Nonaccrual with Allowance		ACL
SBA	$	710	$	1,171	$	711	$	625	$	102	$	102
CRE	5,998		—		—		4,621		—		—








Total	$	6,708	$	1,171	$	711	$	5,246	$	102	$	102

The unpaid contractual principal balance and recorded investment for the loans individually assessed is shown in the table below by type:


	March 31, 2024				December 31, 2023

	Real Estate Collateral		Unsecured		Total		ACL		Real Estate Collateral		Unsecured		Total		ACL
SBA	$	625	$	1,256	$	1,881	$	711	$	625	$	102	$	727	$	102
CRE	5,998		—		5,998		—		4,621		—		4,621		—







Total	$	6,623	1,256		7,879		711		$	5,246	102		5,348		102

Accrued interest on loans totaled $13.7 million as of March 31, 2024, and is excluded from the estimate of credit losses. The Company writes off accrued interest receivable by reversing interest income and typically occurs upon loans becoming 90 to 120 days past due.

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 three months ended March 31, 2024 and 2023. Additionally there were no troubled debt restructurings under legacy U.S. GAAP during the three months ended March 31, 2024 and 2023.

Loans held for sale


	March 31, 2024				December 31, 2023
	At FV		At LCM		At FV		At LCM
SBA 504 First Lien	$	83,571	$	39,381	$	66,387	$	38,787
SBA 504 Second Lien	28,102		6,850		20,757		5,741
SBA 7(a)	261		3,181		262		64
SBA 7(a) Partials	192		9,609		104		11,237
ALP	74,978		—		31,357		—
Subtotal	187,104		59,021		118,867		55,829
Deferred fees and costs	—		859		—		778
Loans held for sale, net of deferred fees and costs	$	187,104	$	59,880	$	118,867	$	56,607

INVESTMENTS - Joint Venture Summarized Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Investment Company, Balance Sheet Items [Abstract]
Cash	$ 12,295	$ 29,103	$ 15,398
Restricted cash	35,759	73,421	30,919
Other assets	58,169		56,102
Total assets	1,509,577		1,429,513
Total liabilities	1,255,445		1,180,467
Net assets	254,132	232,586	249,046
Total liabilities and shareholders' equity	1,509,577		1,429,513
Investment Company, Income and Expense [Abstract]
Unrealized gain (loss) on derivative transactions	592	(495)
Net (decrease) increase in net assets resulting from operations	9,650	18,550
Newtek Conventional Lending, LLC
Investment Company, Balance Sheet Items [Abstract]
Cash	677		612
Restricted cash	4,145		3,298
Investments in loans, at fair value	62,158		70,083
Cost	62,158		70,083
Other assets	1,612		1,614
Total assets	68,592		75,607
Securitization notes payable	33,799		38,805
Funds in process to PMT's payroll customers	885		905
Total liabilities	34,684		39,710
Net assets	33,908		35,897
Total liabilities and shareholders' equity	68,592		75,607
Investment Company, Income and Expense [Abstract]
Interest and other income	1,373	1,644
Total expenses	472	659
Net investment income (loss)	901	985
Unrealized appreciation (depreciation) on investments	(2,131)	712
Net (decrease) increase in net assets resulting from operations	(1,230)	1,697
Newtek-TSO JV
Investment Company, Balance Sheet Items [Abstract]
Cash	1,728		4,401
Restricted cash	4,356		1,183
Investments in loans, at fair value	93,945		66,689
Cost	93,945		66,689
Other assets	1,542		1,374
Total assets	101,571		73,647
Bank notes payable	40,986		29,636
Funds in process to PMT's payroll customers	591		1,092
Total liabilities	41,577		30,728
Net assets	59,994		42,919
Total liabilities and shareholders' equity	101,571		$ 73,647
Investment Company, Income and Expense [Abstract]
Interest and other income	2,343	615
Total expenses	1,464	550
Net investment income (loss)	879	65
Unrealized appreciation (depreciation) on investments	872	(513)
Realized loss on investments	0	(16)
Realized gain on derivative transactions	265	275
Unrealized gain (loss) on derivative transactions	574	(436)
Net (decrease) increase in net assets resulting from operations	$ 2,590	$ (625)

DEPOSITS

3 Months Ended

Mar. 31, 2024

Banking and Thrift, Interest [Abstract]

DEPOSITS

NOTE 10—DEPOSITS:

The following table summarizes deposits by type:


	March 31, 2024		December 31, 2023
Non-interest-bearing:
Demand	$	5,466	$	10,053
Interest-bearing:
Checking	16,870		11,456
Money market	27,290		15,803
Savings	253,595		259,152
Time deposits	209,721		167,041
Total interest-bearing	507,476		453,452
Total deposits	$	512,942	$	463,505

Time deposits, money market, and interest-bearing checking obtained through brokers	$	58,295	$	53,548
Aggregate amount of deposit accounts that exceeded the FDIC limit	$	74,699	$	66,511
Demand deposit overdrafts reclassified as loan balances	$	2	$	53
Certificates of deposit in excess of $0.25 million	$	29,266	$	20,070

The following table summarizes the scheduled maturities of time deposits:


2024	$	92,829
2025	64,999
2026	31,530
2027	19,574
2028	711
Thereafter	78
Total time deposits	$	209,721

LOANS - Investment Portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	$ 457,581	$ 482,563
Fair Value	442,928	469,801
Food Services and Drinking Places
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	41,147	43,779
Fair Value	41,361	43,955
Specialty Trade Contractors
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	39,276	40,193
Fair Value	34,659	35,451
Professional, Scientific, and Technical Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	34,584	36,248
Fair Value	33,734	35,377
Ambulatory Health Care Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	26,757	27,291
Fair Value	25,373	26,633
Amusement, Gambling, and Recreation Industries
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	18,923	21,289
Fair Value	20,281	22,839
Administrative and Support Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	20,521	21,319
Fair Value	18,847	19,521
Merchant Wholesalers, Durable Goods
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	19,815	21,873
Fair Value	18,476	21,152
Repair and Maintenance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	15,513	15,886
Fair Value	16,584	17,005
Merchant Wholesalers, Nondurable Goods
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	13,841	15,623
Fair Value	13,662	15,573
Personal and Laundry Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	12,612	12,867
Fair Value	13,320	13,584
Fabricated Metal Product Manufacturing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	11,825	12,439
Fair Value	12,608	13,205
Truck Transportation
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	15,138	15,590
Fair Value	11,156	12,113
Construction of Buildings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	9,715	9,868
Fair Value	9,810	9,890
Accommodation
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	9,213	9,259
Fair Value	9,668	10,162
Social Assistance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	8,730	8,857
Fair Value	9,547	9,721
Food Manufacturing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	10,160	10,233
Fair Value	8,573	8,714
Motor Vehicle and Parts Dealers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	8,055	9,046
Fair Value	8,358	9,382
Transportation Equipment Manufacturing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	7,619	7,687
Fair Value	7,974	7,999
Support Activities for Mining
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	7,942	8,455
Fair Value	7,290	7,754
Food and Beverage Stores
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	6,750	7,026
Fair Value	7,058	7,306
Rental and Leasing Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	6,657	6,764
Fair Value	7,054	7,178
Nursing and Residential Care Facilities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	6,126	6,182
Fair Value	6,581	6,709
Building Material and Garden Equipment and Supplies Dealers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	5,876	7,384
Fair Value	5,750	6,781
Educational Services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	5,148	5,368
Fair Value	5,356	5,636
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	95,638	102,037
Fair Value	$ 89,848	$ 96,161

BUSINESS COMBINATIONS - 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

INVESTMENTS - Transaction with Affiliated Companies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Affiliate Investments
Debt Securities, Available-for-Sale [Line Items]
Fair Value	$ 41,587	$ 24,382
Proceeds from sale of loans held for sale	7,243	0
Principal Received	0	0
Return of Investment, Operating Activity	(24)	0
Net Realized Gains/(Losses)	0	0
Net Unrealized Gains/(Losses)	169	2,000
Fair Value	48,975	26,382
Dividend Income	386	504
Joint Ventures
Debt Securities, Available-for-Sale [Line Items]
Fair Value	40,859	23,022
Proceeds from sale of loans held for sale	7,243	0
Principal Received	0	0
Return of Investment, Operating Activity	0	0
Net Realized Gains/(Losses)	0	0
Net Unrealized Gains/(Losses)	145	2,000
Fair Value	48,247	25,022
Dividend Income	379	484
Non-Control Investments
Debt Securities, Available-for-Sale [Line Items]
Fair Value	728	1,360
Proceeds from sale of loans held for sale	0	0
Principal Received	0	0
Return of Investment, Operating Activity	(24)	0
Net Realized Gains/(Losses)	0	0
Net Unrealized Gains/(Losses)	24	0
Fair Value	728	1,360
Dividend Income	7	20
Investment, Identifier [Axis]: Biller Genie Software, LLC
Debt Securities, Available-for-Sale [Line Items]
Fair Value	360	360
Proceeds from sale of loans held for sale	0	0
Principal Received	0	0
Return of Investment, Operating Activity	0	0
Net Realized Gains/(Losses)	0	0
Net Unrealized Gains/(Losses)	0	0
Fair Value	360	360
Dividend Income	0	0
Investment, Identifier [Axis]: EMCAP Loan Holdings, LLC
Debt Securities, Available-for-Sale [Line Items]
Fair Value	368	1,000
Proceeds from sale of loans held for sale	0	0
Principal Received	0	0
Return of Investment, Operating Activity	(24)	0
Net Realized Gains/(Losses)	0	0
Net Unrealized Gains/(Losses)	24	0
Fair Value	368	1,000
Dividend Income	7	20
Investment, Identifier [Axis]: Newtek Conventional Lending, LLC
Debt Securities, Available-for-Sale [Line Items]
Fair Value	19,400	16,587
Proceeds from sale of loans held for sale	0	0
Principal Received	0	0
Return of Investment, Operating Activity	0	0
Net Realized Gains/(Losses)	0	0
Net Unrealized Gains/(Losses)	(1,150)	2,313
Fair Value	18,250	18,900
Dividend Income	379	484
Investment, Identifier [Axis]: Newtek TSO II Conventional Credit Partners, LP
Debt Securities, Available-for-Sale [Line Items]
Fair Value	21,459	6,435
Proceeds from sale of loans held for sale	7,243	0
Principal Received	0	0
Return of Investment, Operating Activity	0	0
Net Realized Gains/(Losses)	0	0
Net Unrealized Gains/(Losses)	1,295	(313)
Fair Value	29,997	6,122
Dividend Income	$ 0	$ 0

SEGMENTS (Details) $ in Thousands		3 Months Ended
SEGMENTS (Details) $ in Thousands	Jan. 06, 2023	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment		4
Interest income		$ 27,067	$ 18,715
Total interest expense		18,161	14,132
Net interest income		8,906	4,583
Provision for credit losses		4,015	1,318
Net interest income after provision for credit losses		4,891	3,265
Noninterest income		49,367	42,356
Noninterest expense		41,159	39,023
Net income before taxes		13,099	6,598
Income tax expense (benefit)		3,449	(11,952)
Net income		9,650	$ 18,550
Assets		$ 1,509,577		$ 1,429,513
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		$ 13,571
Total interest expense		5,853
Net interest income		7,718
Provision for credit losses		4,015
Net interest income after provision for credit losses		3,703
Noninterest income		29,982
Noninterest expense		20,249
Net income before taxes		13,436
Income tax expense (benefit)		4,035
Net income		9,401
Assets		736,100
Operating Segments \| Technology
Segment Reporting Information [Line Items]
Interest income		1
Total interest expense		0
Net interest income		1
Provision for credit losses		0
Net interest income after provision for credit losses		1
Noninterest income		7,318
Noninterest expense		7,212
Net income before taxes		107
Income tax expense (benefit)		0
Net income		107
Assets		22,523
Operating Segments \| NSBF
Segment Reporting Information [Line Items]
Interest income		10,744
Total interest expense		5,966
Net interest income		4,778
Provision for credit losses		0
Net interest income after provision for credit losses		4,778
Noninterest income		(1,212)
Noninterest expense		4,486
Net income before taxes		(920)
Income tax expense (benefit)		0
Net income		(920)
Assets		600,877
Operating Segments \| Payments
Segment Reporting Information [Line Items]
Interest income		545
Total interest expense		796
Net interest income		(251)
Provision for credit losses		0
Net interest income after provision for credit losses		(251)
Noninterest income		11,749
Noninterest expense		8,102
Net income before taxes		3,396
Income tax expense (benefit)		0
Net income		3,396
Assets		56,892
Corporate and Other
Segment Reporting Information [Line Items]
Interest income		3,323
Total interest expense		6,663
Net interest income		(3,340)
Provision for credit losses		0
Net interest income after provision for credit losses		(3,340)
Noninterest income		17,771
Noninterest expense		9,865
Net income before taxes		4,566
Income tax expense (benefit)		(586)
Net income		5,152
Assets		786,420
Eliminations
Segment Reporting Information [Line Items]
Interest income		(1,117)
Total interest expense		(1,117)
Net interest income		0
Provision for credit losses		0
Net interest income after provision for credit losses		0
Noninterest income		(16,241)
Noninterest expense		(8,755)
Net income before taxes		(7,486)
Income tax expense (benefit)		0
Net income		(7,486)
Assets		$ (693,235)

LOANS - Aging Status (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	$ 397,625	$ 336,305
Non- accrual	1,171	102
Total Loans Accounted for Under the Fair Value Option	442,928	469,801
Total	824,427	793,532
Deferred fees and costs	314	393
Allowance for credit losses	(16,126)	(12,574)	$ (2,189)	$ 0
Loans held for investment, at amortized cost, net	381,499	323,731
SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	214,038	163,918
Non- accrual	1,171	102
Total	214,038	163,918
Allowance for credit losses	(14,551)	(10,852)
CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	169,869	163,803
Non- accrual	0	0
Total	169,869	163,803
Allowance for credit losses	(1,278)	(1,408)	(1,960)	0
C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	13,404	8,191
Total	13,404	8,191
Allowance for credit losses	(297)	(314)	$ (223)	$ 0
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	397,311	335,912
Total	397,311	335,912
Performing \| 30-59 Days Past Due and Accruing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	71,458	24,965
Total Loans Accounted for Under the Fair Value Option	61,314	20,380
Performing \| 30-59 Days Past Due and Accruing \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	9,818	3,637
Performing \| 30-59 Days Past Due and Accruing \| CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	326	948
Performing \| 30-59 Days Past Due and Accruing \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 30-59 Days Past Due and Accruing \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	10,144	4,585
Performing \| 60-89 Days Past Due and Accruing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	1,494	16,386
Total Loans Accounted for Under the Fair Value Option	548	16,075
Performing \| 60-89 Days Past Due and Accruing \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	311
Performing \| 60-89 Days Past Due and Accruing \| CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	946	0
Performing \| 60-89 Days Past Due and Accruing \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 60-89 Days Past Due and Accruing \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	946	311
Performing \| 90 or more Days Past Due and Accruing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	3,829	0
Total Loans Accounted for Under the Fair Value Option	3,829	0
Performing \| 90 or more Days Past Due and Accruing \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 90 or more Days Past Due and Accruing \| CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| 90 or more Days Past Due and Accruing \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	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	0
Performing \| Total past Due and Non-accrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	130,797	94,898
Total Loans Accounted for Under the Fair Value Option	111,692	84,629
Performing \| Total past Due and Non-accrual \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	11,835	4,700
Performing \| Total past Due and Non-accrual \| CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	7,270	5,569
Performing \| Total past Due and Non-accrual \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0	0
Performing \| Total past Due and Non-accrual \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	19,105	10,269
Performing \| Current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	709,442	710,815
Total Loans Accounted for Under the Fair Value Option	331,236	385,172
Performing \| Current \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	202,203	159,218
Performing \| Current \| CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	162,599	158,234
Performing \| Current \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	13,404	8,191
Performing \| Current \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	378,206	325,643
Nonperforming
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	54,016	53,547
Total Loans Accounted for Under the Fair Value Option	46,001	48,174
Nonperforming \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	2,017	752
Nonperforming \| CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	5,998	4,621
Nonperforming \| C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	0	0
Nonperforming \| Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	$ 8,015	$ 5,373

SEGMENTS

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENTS

NOTE 19—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 three months ended March 31, 2024
	Banking		Technology		NSBF		Payments		Corporate and Other		Eliminations		Consolidated
Interest income	$	13,571	$	1	$	10,744	$	545	$	3,323	$	(1,117)	$	27,067
Interest expense	5,853		—		5,966		796		6,663		(1,117)		18,161
Net interest income/(loss)	7,718		1		4,778		(251)		(3,340)		—		8,906
Provision for loan credit losses	4,015		—		—		—		—		—		4,015
Net interest income after provision for loan credit losses	3,703		1		4,778		(251)		(3,340)		—		4,891
Noninterest income	29,982		7,318		(1,212)		11,749		17,771		(16,241)		49,367
Noninterest expense	20,249		7,212		4,486		8,102		9,865		(8,755)		41,159
Income before taxes	13,436		107		(920)		3,396		4,566		(7,486)		13,099
Income tax expense (benefit)	4,035		—		—		—		(586)		—		3,449
Net income	9,401		107		(920)		3,396		5,152		(7,486)		9,650
Assets	$	736,100	$	22,523	$	600,877	$	56,892	$	786,420	$	(693,235)	$	1,509,577

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

INVESTMENTS - Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	$ 28,319	$ 32,372
Unrealized Gains	0	0
Unrealized Losses	192	201
Fair Value	28,127	32,171
Total available for sale securities pledged	28,127	30,730
U.S. Treasury notes
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	25,319	29,372
Unrealized Gains	0	0
Unrealized Losses	87	67
Fair Value	25,232	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	3,000
Unrealized Gains	0	0
Unrealized Losses	105	134
Fair Value	2,895	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	$ 28,127	$ 30,730

BUSINESS COMBINATIONS (Tables)

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [Abstract]

Schedule of business acquisitions

The following table summarizes the allocation of consideration paid for the fair value of assets acquired and liabilities assumed from NBNYC:


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	Apr. 15, 2024	Apr. 14, 2023
Subsidiary, Sale of Stock [Line Items]
Amount Per Share		$ 0.18
Cash Distribution		$ 4,291
DRIP Shares Issued		6
DRIP Shares Value		$ 72
Subsequent Event
Subsidiary, Sale of Stock [Line Items]
Amount Per Share	$ 0.19
Cash Distribution	$ 4,617
DRIP Shares Issued	0
DRIP Shares Value	$ 0

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Reclassifications and Restatements	Reclassifications and Restatements Certain prior period amounts, to the extent comparable, have been reclassified to conform to the current period presentation. In addition, as disclosed in our 2023 Form 10-K, the Company’s prior year 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. Balances as of and results for the three months ended March 31, 2023 are presented as restated. Refer to our 2023 Form 10-K for further detail.
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 March 31, 2024, cash deposits in excess of insured amounts totaled $34.2 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 March 31, 2024. 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 March 31, 2024, total restricted cash was $35.8 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.
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, 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: CRE: The CRE 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. C&I: The C&I 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 licensed by the SBA may underwrite loans between $5.0 thousand 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 March 31, 2024, 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.
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.
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 period-end but have not yet settled. The guaranteed portion of SBA 7(a) principal balances that have been sold but not yet settled at March 31, 2024 was $51.1 million. The settlement receivable also includes $5.8 million of premiums, which have been recognized in Net Gains on Sales of Loans.
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 statements of financial condition were a deferred tax asset, net of $2.7 million and $5.2 million at March 31, 2024 and December 31, 2023, 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 is subject to corporate level income tax. See NOTE 18—INCOME TAXES.
Recently Adopted Accounting Pronouncements and New Accounting Standards	Recently Adopted Accounting Pronouncements 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 No. 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. 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. Under ASU 2022-02, the Company evaluated 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 made to borrowers deemed to be in financial difficulty. The impact of these amendments was not material. Fair Value Measurement (ASU 2022-03): 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. 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 impact of these amendments was not material. New Accounting Standards 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 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. Compensation—Stock Compensation (ASU 2024-01) In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This standard is effective for fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not anticipate it will have a material impact on its consolidated financial statements.

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

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

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 March 31, 2024 and December 31, 2023:


	Fair Value Measurements at March 31, 2024
	Total		Level 1		Level 2		Level 3
Assets:

Debt securities available-for-sale
U.S. Treasury notes	$	25,232	$	25,232	$	—	$	—
Government agency debentures	2,895		—		2,895		—
Loans held for sale, at fair value	187,104		—		—		187,104
Loans held for investment, at fair value	442,928		—		—		442,928
Other real estate owned 1	2,438		—		—		2,438
Non-controlled/affiliate investments	728		—		—		728
Servicing assets	27,601		—		—		27,601
Joint ventures	48,247		—		—		48,247
Total assets measured at fair value	$	737,173	$	25,232	$	2,895	$	709,046
Liabilities:
Equity warrants3	$	76	$	—	$	—	$	76
Derivative instruments2,3	38		—		38		—
Total liabilities measured at fair value	$	114	$	—	$	38	$	76

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, 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.

The following tables represents the changes in the investments, servicing assets and liabilities measured at fair value using Level 3 inputs for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31, 2024
	Loans HFI, at FV		Loans HFS, at FV		Joint Ventures		Servicing Assets		Non-Control Investments		Warrant Liabilities2		Other Real Estate Owned1
Fair value, December 31, 2023	$	469,801	$	118,867	$	40,859	$	29,336	$	728	$	141	$	1,110

Sales	(1,848)		(31,323)		—		—		—		—		(74)
Principal payments received	(21,713)		(166)		—		—		—		—		—
Foreclosed real estate acquired	(1,447)		—		—		—		—		—		1,447
SBA loans, funded	27		4,203		—		—		—		—		—
ALP loans, funded	—		66,905		—		—		—		—		—
Mortgage loans, funded	—		24,179		—		—		—		—		—


Capital contributions/(distributions)	—		—		7,243		—		—		—		—
Change in valuation due to:
Changes in valuation inputs or assumptions	—		4,426		145		—		—		(65)		—
Other factors	(1,892)		13		—		(1,735)		—		—		(45)
Fair value, March 31, 2024	$	442,928	$	187,104	$	48,247	$	27,601	$	728	$	76	$	2,438

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

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


	Three Months Ended March 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, Fair value, December 31, 2022	$	505,268	$	19,171	$	259,217	$	23,022	$	30,268	$	1,360	$	—	$	3,529
Removal of new entities consolidating in current period	—		69,745		(259,217)		—		—		—		—		—
Reclass of Loans HFS to HFI	8,745		(8,745)		—		—		—		—		—		—
Change in valuation due to:
Changes in valuation inputs or assumptions	—		—		—		2,000		2,654		—		(162)		—
Other factors	6,077		(172)		—		—		(1,735)		—		—		(45)
Realized gain (loss)	(7,532)		11,877		—		—		—		—		—		—
SBA investments, funded	36,859		132,753		—		—		—		—		—		—
ALP loans, funded	—		12,150		—		—		—		—		—		—
Mortgage loans, funded	—		11,855		—		—		—		—		—		—
Foreclosed real estate acquired	(694)		—		—		—		—		—		—		673
Purchases and repurchases of loans	5,797		32,534		—		—		—		—		—		—
Sales	—		(154,184)		—		—		—		—		—		(641)
Principal payments received	(21,732)		(1,345)		—		—		—		—		—		—
Additions	—		—		—		—		2,164		—		311		—
Fair Value, March 31, 2023	$	532,788	$	125,639	$	—	$	25,022	$	33,351	$	1,360	$	149	$	3,516

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

2 Included in Other Liabilities 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:


	March 31, 2024
	Carrying Amount		Fair Value Amount by Level:						Total Fair Value
			Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	12,295	$	12,295	$	—	$	—	$	12,295
Restricted cash	35,759		35,759		—		—		35,759
Interest bearing deposits in banks	115,152		115,152		—		—		115,152
Debt securities available-for-sale, at fair value	28,127		25,232		2,895		—		28,127
Loans HFS, at fair value	187,104		—		—		187,104		187,104
Loans HFS, at LCM	59,880		—		—		60,227		60,227
Loans HFI, at fair value	442,928		—		—		442,928		442,928
Total loans HFI, at amortized cost, net of deferred fees and costs	397,625		—		—		398,453		398,453
Federal Home Loan Bank and Federal Reserve Bank stock	3,773		—		3,773		—		3,773
Joint ventures, at fair value	48,247		—		—		48,247		48,247
Non-control investments	728		—		—		728		728
Financial Liabilities:
Time deposits	209,721		—		210,519		—		210,519
Borrowings	662,488		—		190,576		471,728		662,304

	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 HFS, at fair value	118,867		—		—		118,867		118,867
Loans HFS, at LCM	56,607		—		—		56,733		56,733
Loans HFI, at fair value	469,801		—		—		469,801		469,801
Total loans HFI, 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

Fair value and valuation assumption

The following tables summarizes the fair value and valuation assumptions related to servicing assets at March 31, 2024 and December 31, 2023:


	March 31, 2024								December 31, 2023
			Weighted		Range						Weighted		Range
Unobservable Input	Amount		Average		Minimum		Maximum		Amount		Average		Minimum		Maximum

Servicing Assets at FV:	$	27,601							$	29,336
Discount factor1			13.50	%	13.50	%	13.50	%			13.50	%	13.50	%	13.50	%
Cumulative prepayment rate			22.50	%	22.50	%	22.50	%			22.50	%	22.50	%	22.50	%
Average cumulative default rate			19.00	%	19.00	%	19.00	%			19.00	%	19.00	%	19.00	%

Servicing Assets at LCM:	13,571								10,389
Discount factor1			13.50	%	13.50	%	13.50	%			13.50	%	13.50	%	13.50	%
Cumulative prepayment rate			30.41	%	22.50	%	75.00	%			29.76	%	22.50	%	75.00	%
Average cumulative default rate			19.15	%	19.00	%	20.00	%			19.14	%	19.00	%	20.00	%

Total	$	41,172							$	39,725

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

The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of March 31, 2024 and December 31, 2023. 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 March 31, 2024 and December 31, 2023.


	Fair Value as of			Weighted		Range
	March 31, 2024		Unobservable Input	Average		Minimum		Maximum
Assets:
HFI, at fair value - accrual loans	$	396,927	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	%
HFI, at fair value - non-accrual loans	$	46,001	Market yields	7.50	%	7.50	%	7.50	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
HFS, at fair value	$	187,104	Market yields	7.68	%	7.21	%	8.12	%
			Cumulative prepayment rate	61.03	%	55.60	%	75.00	%
			Average cumulative default rate	20.00	%	20.00	%	20.00	%
Joint ventures	$	48,247	Market yields	8.30	%	8.30	%	8.30	%
			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	$	27,601	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	$	2,438	Appraised value	N/A		N/A		N/A

Liabilities:
Equity warrants	$	76	Expected volatility	44.00	%	44.00	%	44.00	%
			Dividend yield	6.90	%	6.90	%	6.90	%
			Risk free rate	4.20	%	4.20	%	4.20	%

1 $27.6 million of servicing assets at held at FV and $13.6 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.


	Fair Value as of			Weighted		Range
	December 31, 2023		Unobservable Input	Average		Minimum		Maximum
Assets:
HFI, 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	%
HFI, at fair value - 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	%
HFS, 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 held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS

FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 9—FAIR VALUE MEASUREMENTS:


	Fair Value Measurements at March 31, 2024
	Total		Level 1		Level 2		Level 3
Assets:

Debt securities available-for-sale
U.S. Treasury notes	$	25,232	$	25,232	$	—	$	—
Government agency debentures	2,895		—		2,895		—
Loans held for sale, at fair value	187,104		—		—		187,104
Loans held for investment, at fair value	442,928		—		—		442,928
Other real estate owned 1	2,438		—		—		2,438
Non-controlled/affiliate investments	728		—		—		728
Servicing assets	27,601		—		—		27,601
Joint ventures	48,247		—		—		48,247
Total assets measured at fair value	$	737,173	$	25,232	$	2,895	$	709,046
Liabilities:
Equity warrants3	$	76	$	—	$	—	$	76
Derivative instruments2,3	38		—		38		—
Total liabilities measured at fair value	$	114	$	—	$	38	$	76

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, 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.

The following tables represents the changes in the investments, servicing assets and liabilities measured at fair value using Level 3 inputs for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31, 2024
	Loans HFI, at FV		Loans HFS, at FV		Joint Ventures		Servicing Assets		Non-Control Investments		Warrant Liabilities2		Other Real Estate Owned1
Fair value, December 31, 2023	$	469,801	$	118,867	$	40,859	$	29,336	$	728	$	141	$	1,110

Sales	(1,848)		(31,323)		—		—		—		—		(74)
Principal payments received	(21,713)		(166)		—		—		—		—		—
Foreclosed real estate acquired	(1,447)		—		—		—		—		—		1,447
SBA loans, funded	27		4,203		—		—		—		—		—
ALP loans, funded	—		66,905		—		—		—		—		—
Mortgage loans, funded	—		24,179		—		—		—		—		—


Capital contributions/(distributions)	—		—		7,243		—		—		—		—
Change in valuation due to:
Changes in valuation inputs or assumptions	—		4,426		145		—		—		(65)		—
Other factors	(1,892)		13		—		(1,735)		—		—		(45)
Fair value, March 31, 2024	$	442,928	$	187,104	$	48,247	$	27,601	$	728	$	76	$	2,438

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

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


	Three Months Ended March 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, Fair value, December 31, 2022	$	505,268	$	19,171	$	259,217	$	23,022	$	30,268	$	1,360	$	—	$	3,529
Removal of new entities consolidating in current period	—		69,745		(259,217)		—		—		—		—		—
Reclass of Loans HFS to HFI	8,745		(8,745)		—		—		—		—		—		—
Change in valuation due to:
Changes in valuation inputs or assumptions	—		—		—		2,000		2,654		—		(162)		—
Other factors	6,077		(172)		—		—		(1,735)		—		—		(45)
Realized gain (loss)	(7,532)		11,877		—		—		—		—		—		—
SBA investments, funded	36,859		132,753		—		—		—		—		—		—
ALP loans, funded	—		12,150		—		—		—		—		—		—
Mortgage loans, funded	—		11,855		—		—		—		—		—		—
Foreclosed real estate acquired	(694)		—		—		—		—		—		—		673
Purchases and repurchases of loans	5,797		32,534		—		—		—		—		—		—
Sales	—		(154,184)		—		—		—		—		—		(641)
Principal payments received	(21,732)		(1,345)		—		—		—		—		—		—
Additions	—		—		—		—		2,164		—		311		—
Fair Value, March 31, 2023	$	532,788	$	125,639	$	—	$	25,022	$	33,351	$	1,360	$	149	$	3,516

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

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


	Fair Value as of			Weighted		Range
	March 31, 2024		Unobservable Input	Average		Minimum		Maximum
Assets:
HFI, at fair value - accrual loans	$	396,927	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	%
HFI, at fair value - non-accrual loans	$	46,001	Market yields	7.50	%	7.50	%	7.50	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
HFS, at fair value	$	187,104	Market yields	7.68	%	7.21	%	8.12	%
			Cumulative prepayment rate	61.03	%	55.60	%	75.00	%
			Average cumulative default rate	20.00	%	20.00	%	20.00	%
Joint ventures	$	48,247	Market yields	8.30	%	8.30	%	8.30	%
			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	$	27,601	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	$	2,438	Appraised value	N/A		N/A		N/A

Liabilities:
Equity warrants	$	76	Expected volatility	44.00	%	44.00	%	44.00	%
			Dividend yield	6.90	%	6.90	%	6.90	%
			Risk free rate	4.20	%	4.20	%	4.20	%

1 $27.6 million of servicing assets at held at FV and $13.6 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.


	Fair Value as of			Weighted		Range
	December 31, 2023		Unobservable Input	Average		Minimum		Maximum
Assets:
HFI, 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	%
HFI, at fair value - 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	%
HFS, 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 held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS

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:


	March 31, 2024
	Carrying Amount		Fair Value Amount by Level:						Total Fair Value
			Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	12,295	$	12,295	$	—	$	—	$	12,295
Restricted cash	35,759		35,759		—		—		35,759
Interest bearing deposits in banks	115,152		115,152		—		—		115,152
Debt securities available-for-sale, at fair value	28,127		25,232		2,895		—		28,127
Loans HFS, at fair value	187,104		—		—		187,104		187,104
Loans HFS, at LCM	59,880		—		—		60,227		60,227
Loans HFI, at fair value	442,928		—		—		442,928		442,928
Total loans HFI, at amortized cost, net of deferred fees and costs	397,625		—		—		398,453		398,453
Federal Home Loan Bank and Federal Reserve Bank stock	3,773		—		3,773		—		3,773
Joint ventures, at fair value	48,247		—		—		48,247		48,247
Non-control investments	728		—		—		728		728
Financial Liabilities:
Time deposits	209,721		—		210,519		—		210,519
Borrowings	662,488		—		190,576		471,728		662,304

	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 HFS, at fair value	118,867		—		—		118,867		118,867
Loans HFS, at LCM	56,607		—		—		56,733		56,733
Loans HFI, at fair value	469,801		—		—		469,801		469,801
Total loans HFI, 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

- 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

LOANS - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 824,427	$ 793,532
SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	51,416	163,918
Year Two	162,622	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	214,038	163,918
SBA \| Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	50,645	161,263
Year Two	154,273	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	204,918	161,263
SBA \| Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	771	2,655
Year Two	8,349	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	9,120	2,655
SBA \| 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	0
Total	0	0
SBA \| Risk Grade 8
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	0
Total	0	0
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	34,638
Year Two	33,586	161,046
Year Three	155,443	59,828
Year Four	56,684	29,149
Year Five	27,994	63,955
Prior	169,221	121,185
Total	442,928	469,801
SBA 7(a) \| Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	34,289
Year Two	33,261	151,929
Year Three	145,730	53,998
Year Four	50,577	27,870
Year Five	26,696	52,175
Prior	134,400	94,751
Total	390,664	415,012
SBA 7(a) \| Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	349
Year Two	325	8,968
Year Three	9,564	5,813
Year Four	6,090	1,257
Year Five	1,276	11,764
Prior	34,098	25,727
Total	51,353	53,878
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	0
Total	0	0
SBA 7(a) \| Risk Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	149
Year Three	149	17
Year Four	17	22
Year Five	22	16
Prior	723	707
Total	911	911
CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	10,101	53,567
Year Two	26,144	28,224
Year Three	33,519	15,538
Year Four	17,241	910
Year Five	1,269	11,172
Prior	81,595	54,392
Total	169,869	163,803
CRE \| Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	10,101	53,567
Year Two	26,144	28,224
Year Three	33,519	14,590
Year Four	16,555	0
Year Five	399	8,888
Prior	74,091	49,771
Total	160,809	155,040
CRE \| Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	948
Year Four	686	910
Year Five	870	2,284
Prior	7,504	4,621
Total	9,060	8,763
CRE \| 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	0
Total	0	0
C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	2,901	6,174
Year Two	8,486	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	2,017	2,017
Total	13,404	8,191
C&I \| Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	2,901	6,174
Year Two	8,486	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	2,017	2,017
Total	13,404	8,191
C&I \| Risk Grades 5-6
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	0
Total	0	0
C&I \| 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	0
Total	0	0
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	64,418	258,297
Year Two	230,838	189,270
Year Three	188,962	75,366
Year Four	73,925	30,059
Year Five	29,263	75,127
Prior	252,833	177,594
Total	$ 840,239	$ 805,713

GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Goodwill [Line Items]
Total goodwill	$ 25,885	$ 25,885
Banking
Goodwill [Line Items]
Total goodwill	271	271
Payments
Goodwill [Line Items]
Total goodwill	13,814	13,814
Technology
Goodwill [Line Items]
Total goodwill	$ 11,800	$ 11,800

- 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.

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+ Details

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Interest income
Debt securities available-for-sale	$ 460	$ 232
Loans and fees on loans	24,985	17,502
Other interest earning assets	1,622	981
Total interest income	27,067	18,715
Interest expense
Deposits	5,576	1,475
Total interest expense	18,161	14,132
Net interest income	8,906	4,583
Provision for credit losses	4,015	1,318
Net interest income after provision for credit losses	4,891	3,265
Noninterest income
Dividend income	386	504
Loan servicing asset revaluation	(1,735)	919
Servicing income	5,357	4,403
Net gains on sales of loans	20,292	6,367
Net gain on loans under the fair value option	2,798	5,905
Technology and IT support income	5,770	6,709
Electronic payment processing income	10,987	10,328
Other noninterest income	5,512	7,221
Total noninterest income	49,367	42,356
Noninterest expense
Salaries and employee benefits expense	20,506	19,073
Technology services expense	3,408	3,803
Electronic payment processing expense	4,846	4,504
Professional services expense	4,565	3,440
Other loan origination and maintenance expense	2,244	2,781
Depreciation and amortization	532	791
Other general and administrative costs	5,058	4,631
Total noninterest expense	41,159	39,023
Net income before taxes	13,099	6,598
Income tax expense (benefit)	3,449	(11,952)
Net income	9,650	18,550
Dividends to preferred shareholders	(400)	(249)
Net income available to common shareholders	$ 9,250	$ 18,301
Earnings per share, basic (in dollars per share)	$ 0.38	$ 0.76
Earnings per share, diluted (in dollars per share)	$ 0.38	$ 0.74
Notes and securitizations
Interest expense
Interest expense	$ 10,827	$ 8,718
Bank and FHLB borrowings
Interest expense
Interest expense	$ 1,758	$ 3,939

EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Basic earnings per share:
Net income available to common shareholders	$ 9,250	$ 18,301
Weighted-average basic shares outstanding (in shares)	24,287	24,223
Basic earnings per share (in dollars per share)	$ 0.38	$ 0.76
Diluted earnings per share:
Net income available to common shareholders	$ 9,250	$ 18,301
Weighted-average basic shares outstanding (in shares)	24,287	24,223
Add effect of dilutive stock options and restricted stock grants (in shares)	71	658
Total weighted-average diluted shares outstanding (in shares)	24,358	24,881
Diluted earnings per share (in dollars per share)	$ 0.38	$ 0.74
Anti-dilutive warrants and restricted stock awards (in shares)	$ 1,065	$ 248

- 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

DEPOSITS (Tables)

3 Months Ended

Mar. 31, 2024

Banking and Thrift, Interest [Abstract]

Deposit liabilities

The following table summarizes deposits by type:


	March 31, 2024		December 31, 2023
Non-interest-bearing:
Demand	$	5,466	$	10,053
Interest-bearing:
Checking	16,870		11,456
Money market	27,290		15,803
Savings	253,595		259,152
Time deposits	209,721		167,041
Total interest-bearing	507,476		453,452
Total deposits	$	512,942	$	463,505

Time deposits, money market, and interest-bearing checking obtained through brokers	$	58,295	$	53,548
Aggregate amount of deposit accounts that exceeded the FDIC limit	$	74,699	$	66,511
Demand deposit overdrafts reclassified as loan balances	$	2	$	53
Certificates of deposit in excess of $0.25 million	$	29,266	$	20,070

Time deposit maturities

The following table summarizes the scheduled maturities of time deposits:


2024	$	92,829
2025	64,999
2026	31,530
2027	19,574
2028	711
Thereafter	78
Total time deposits	$	209,721

- Definition

Tabular disclosure of type of deposit liability.

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-Subparagraph (2)
-Publisher SEC

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

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

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
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-Section 1406
-Paragraph (f)
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Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
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-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iv)
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+ Details

STOCK BASED COMPENSATION - Restricted Stock Activity (Details) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2024	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)	0	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)	(45,000)	(82,000)	0	0	0
Shares available for issuance (in shares)	(127,000)
Vesting period	1 year

BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands	Jan. 06, 2023	Mar. 31, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill		$ 25,885	$ 25,885
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
NBNYC \| Core Deposits
Business Acquisition [Line Items]
Intangible asset, useful life	10 years

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2024

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 March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Due to affiliated companies1	$	172	$	158
Due from affiliated companies2	53		7
Total due to/due from affiliated companies	$	119	$	151

1 Included within Other Assets

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

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 March 31, 2024 and 2023:


	Three Months Ended March 31,
	2024		2023
Servicing income	$	348	$	252

Newtek Bank Deposits

In the normal course of business, Newtek Bank holds FDIC insured deposits from certain of the Company’s officers, directors and their associated companies. The following table summarizes the amounts due of deposits from related parties and their affiliated companies as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
FDIC insured deposits	$	4,316	$	4,388
Non-FDIC insured deposits	1,178		1,167
Total deposits from related parties and their affiliated companies	$	5,494	$	5,555

- 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
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2024

Investments in and advances to affiliates

Transactions related to our joint ventures and non-controlled investments for the three months ended March 31, 2024 and 2023 were as follows:


Company	Fair Value at December 31, 2023		Purchases (Cost)		Principal Received		Return of Investment		Net Realized Gains/(Losses)		Net Unrealized Gains/(Losses)		Fair Value at March 31, 2024		Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC	$	19,400	$	—	$	—	$	—	$	—	$	(1,150)	$	18,250	$	379
Newtek TSO II Conventional Credit Partners, LP	21,459		7,243		—		—		—		1,295		29,997		—
Total Joint Ventures	$	40,859	$	7,243	$	—	$	—	$	—	$	145	$	48,247	$	379

Non-Control Investments
EMCAP Loan Holdings, LLC	$	368	$	—	$	—	$	(24)	$	—	$	24	$	368	$	7
Biller Genie Software, LLC	360		—		—		—		—		—		360		—
Total Non-Control Investments	$	728	$	—	$	—	$	(24)	$	—	$	24	$	728	$	7

Total Affiliate Investments	$	41,587	$	7,243	$	—	$	(24)	$	—	$	169	$	48,975	$	386


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 March 31, 2023		Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC	$	16,587	$	—	$	—	$	—	$	—	$	2,313	$	18,900	$	484
Newtek TSO II Conventional Credit Partners, LP	6,435		—		—		—		—		(313)		6,122		—
Total Joint Ventures	$	23,022	$	—	$	—	$	—	$	—	$	2,000	$	25,022	$	484

Non-Control Investments
EMCAP Loan Holdings, LLC	$	1,000	$	—	$	—	$	—	$	—	$	—	$	1,000	$	20
Biller Genie Software, LLC	360		—		—		—		—		—		360		—
Total Non-Control Investments	$	1,360	$	—	$	—	$	—	$	—	$	—	$	1,360	$	20

Total Affiliate Investments	$	24,382	$	—	$	—	$	—	$	—	$	2,000	$	26,382	$	504

The following table summarizes the amounts due to and due from affiliated companies as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Due to affiliated companies1	$	172	$	158
Due from affiliated companies2	53		7
Total due to/due from affiliated companies	$	119	$	151

1 Included within Other Assets

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

The following table summarizes the income earned from our joint ventures for the periods ended March 31, 2024 and 2023:


	Three Months Ended March 31,
	2024		2023
Servicing income	$	348	$	252


	March 31, 2024		December 31, 2023
FDIC insured deposits	$	4,316	$	4,388
Non-FDIC insured deposits	1,178		1,167
Total deposits from related parties and their affiliated companies	$	5,494	$	5,555

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared common shares (in dollars per share)	$ 0.19	$ 0.18
Dividends declared preferred shares (in dollars per share)	$ 20.00	$ 12.27

EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of earnings per share


	Three Months Ended March 31,
	2024		2023

Basic earnings per share:
Net income available to common shareholders	$	9,250	$	18,301
Weighted-average basic shares outstanding	24,287		24,223
Basic earnings per share	$	0.38	$	0.76
Diluted earnings per share:
Net income, for diluted earnings per share	$	9,250	$	18,301
Total weighted-average basic shares outstanding	24,287		24,223
Add effect of dilutive warrants and restricted stock awards3	71		658
Total weighted-average diluted shares outstanding	24,358		24,881
Diluted earnings per share1,2	$	0.38	$	0.74
Anti-dilutive warrants and restricted stock awards	1,065		248

1 For the three months ended March 31, 2024 and 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 three months ended March 31, 2024 and 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.

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 13—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 2024, the Company entered into one-year employment agreements with its named executive officers.

The following summarizes the Company’s obligations and commitments, as of March 31, 2024 for future minimum cash payments required under operating lease and employment agreements:


Year	Operating Leases		Employment Agreements1		Total
2024	$	2,075	$	2,274	$	4,349
2025	2,461		740		3,201
2026	1,835		—		1,835
2027	429		—		429
2028	—		—		—
Thereafter	—		—		—
Total	$	6,800	$	3,014	$	9,814

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 March 31, 2024, 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 March 31, 2024, the Company had $108.8 million of unfunded commitments consisting of $15.9 million in connection with its SBA 7(a) loans, $87.7 million in connection with its SBA 504 loans, none in connection with its ALP loans, and $5.3 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.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 9,650	$ 18,550

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
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-Name Accounting Standards Codification
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-Paragraph 60B
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 32: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
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Reference 35: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 36: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
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Reference 37: http://www.xbrl.org/2003/role/disclosureRef
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Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
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Reference 39: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

BENEFIT PLANS - ESPP Activity (Details) - Employee Stock Purchase Plan - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares purchased (in shares)	5	4
Weighted average share price (in dollars per share)	$ 9.83	$ 13.05
Total purchased	$ 51	$ 51

LOANS - Individually Assessed (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 7,879	$ 5,348
ACL	711	102
Accrued interest	13,700
SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,881	727
ACL	711	102
CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	5,998	4,621
ACL	0	0
Real Estate Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	6,623	5,246
Real Estate Collateral \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	625	625
Real Estate Collateral \| CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	5,998	4,621
Unsecured
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,256	102
Unsecured \| SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,256	102
Unsecured \| CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 0	$ 0

DEPOSITS - Deposits by Type (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Banking and Thrift, Interest [Abstract]
Noninterest-bearing	$ 5,466	$ 10,053
Interest-bearing:
Checking	16,870	11,456
Money market	27,290	15,803
Savings	253,595	259,152
Time deposits	209,721	167,041
Interest-bearing	507,476	453,452
Total deposits from related parties and their affiliated companies	512,942	463,505
Time deposits, money market, and interest-bearing checking obtained through brokers	58,295	53,548
Aggregate amount of deposit accounts that exceeded the FDIC limit	74,699	66,511
Demand deposit overdrafts reclassified as loan balances	$ 2	$ 53

BORROWINGS

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

BORROWINGS

NOTE 11—BORROWINGS:

At March 31, 2024 and December 31, 2023, the Company had borrowings composed of the following:


	March 31, 2024						December 31, 2023
	Commitments		Borrowings Outstanding		Weighted Average Interest Rate		Commitments		Borrowings Outstanding		Weighted Average Interest Rate
Bank Lines of Credit1:
Webster NMS Note	54,871		35,624		7.93	%	54,871		36,628		7.94	%
SPV I Capital One Facility	60,000		20,241		8.18	%	60,000		16,080		8.20	%
SPV II Deutsche Bank Facility	50,000		18,063		10.02	%	50,000		6,799		10.04	%
SPV III One Florida Bank Facility	30,000		29,753		9.50	%	30,000		257		9.50	%
FHLB Advances	110,433		19,726		2.24	%	113,891		23,184		2.13	%
Notes issued by Parent Company1:
2024 Notes	38,250		38,178		5.75	%	38,250		38,124		5.75	%
2025 5.00% Notes	30,000		29,651		5.00	%	30,000		29,563		5.00	%
2025 8.125% Notes	50,000		49,564		8.13	%	50,000		49,433		8.13	%
2026 Notes	115,000		113,743		5.50	%	115,000		113,564		5.50	%
2028 Notes	40,000		38,465		8.00	%	40,000		38,378		8.00	%
Notes payable - Securitization Trusts2	273,269		269,480		7.85	%	296,223		292,112		7.84	%
Total	$	851,823	$	662,488	7.21	%	$	878,235	$	644,122	7.04	%

1 Net of deferred financing costs.

2 At March 31, 2024 and December 31, 2023, the net assets of the consolidated Trusts totaled $14.5 million and $14.8 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:


	March 31, 2024						December 31, 2023
	Principal balance		Unamortized deferred financing costs		Net carrying amount1		Principal balance		Unamortized deferred financing costs		Net carrying amount1
Bank Lines of Credit:
Webster NMS Note	$	35,884	$	(260)	$	35,624	$	36,881	$	(253)	$	36,628
SPV I Capital One Facility	20,400		(159)		20,241		16,300		(220)		16,080
SPV II Deutsche Bank Facility	18,136		(73)		18,063		6,900		(101)		6,799
SPV III One Florida Bank Facility	29,850		(97)		29,753		375		(118)		257
Notes issued by Parent Company:
2024 Notes	38,250		(72)		38,178		38,250		(126)		38,124
2025 5.00% Notes	30,000		(349)		29,651		30,000		(437)		29,563
2025 8.125% Notes	50,000		(436)		49,564		50,000		(567)		49,433
2026 Notes	115,000		(1,257)		113,743		115,000		(1,436)		113,564
2028 Notes	40,000		(1,535)		38,465		40,000		(1,622)		38,378
Notes Payable - Securitization Trusts	273,269		(3,789)		269,480		296,223		(4,111)		292,112

1 Net of deferred financing costs. Negative borrowings outstanding are the result of the facilities being paid down to zero principal balance as of March 31, 2024 while the associated deferred financing costs remain.

At March 31, 2024 and December 31, 2023, 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 March 31, 2024, the $19.7 million carrying amount of Newtek Bank’s FHLB borrowings includes a $0.1 million purchase accounting adjustment..

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.


	March 31, 2024				December 31, 2023
	Closing Price		Fair Value		Closing Price		Fair Value
2028 Notes	$	25.15	$	40,240	$	25.04	$	40,070
2026 Notes	24.32		111,872		23.75		109,250
2024 Notes	25.14		38,464		24.99		38,235

These borrowings are not recorded at fair value on a recurring basis. The fixed rate 2025 Notes are held at par as of March 31, 2024 and December 31, 2023

Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the three months ended March 31, 2024 and 2023 was $12.6 million and $12.7 million, respectively.

- 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
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-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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-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-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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-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

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

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

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

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

+ Details

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	Mar. 31, 2024	Dec. 31, 2023
Weighted Average Interest Rate	7.21%	7.04%
2025 8.125% Notes \| Medium-term Notes
Weighted Average Interest Rate	8.125%	8.125%

DEPOSITS - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Deposit Liability [Line Items]
Aggregate amount of deposit accounts that exceeded the FDIC limit	$ 74,699	$ 66,511
Certificates of Deposit
Deposit Liability [Line Items]
Aggregate amount of deposit accounts that exceeded the FDIC limit	$ 29,266	$ 20,070

BORROWINGS - Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total	$ 851,823	$ 878,235
Borrowings	$ 662,488	$ 644,122
Weighted Average Interest Rate	7.21%	7.04%
Collateralized deposit	$ 1,509,577	$ 1,429,513
Securitization Trusts
Debt Instrument [Line Items]
Collateralized deposit	14,500	14,800
Line of Credit \| Webster Note - MWI
Debt Instrument [Line Items]
Commitments - Notes	54,871	54,871
Borrowings	$ 35,624	$ 36,628
Weighted Average Interest Rate	7.93%	7.94%
Line of Credit \| Capital One Facilities \| Capital One, SP1
Debt Instrument [Line Items]
Commitments - line of credit	$ 60,000	$ 60,000
Borrowings Outstanding - line of credit	$ 20,241	$ 16,080
Weighted Average Interest Rate	8.18%	8.20%
Line of Credit \| Deutsche Bank Line of Credit
Debt Instrument [Line Items]
Commitments - line of credit	$ 50,000	$ 50,000
Borrowings Outstanding - line of credit	$ 18,063	$ 6,799
Weighted Average Interest Rate	10.02%	10.04%
Line of Credit \| One Florida line of credit - SP3
Debt Instrument [Line Items]
Commitments - line of credit	$ 30,000	$ 30,000
Borrowings Outstanding - line of credit	$ 29,753	$ 257
Weighted Average Interest Rate	9.50%	9.50%
Secured Debt \| FHLB Advances
Debt Instrument [Line Items]
Commitments - Notes	$ 110,433	$ 113,891
Borrowings	$ 19,726	$ 23,184
Weighted Average Interest Rate	2.24%	2.13%
Secured Debt \| Securitization Trusts
Debt Instrument [Line Items]
Commitments - Notes	$ 273,269	$ 296,223
Borrowings	$ 269,480	$ 292,112
Weighted Average Interest Rate	7.85%	7.84%
Medium-term Notes \| 2024 Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 38,250	$ 38,250
Borrowings	$ 38,178	$ 38,124
Weighted Average Interest Rate	5.75%	5.75%
Medium-term Notes \| 2025 5.00% Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 30,000	$ 30,000
Borrowings	$ 29,651	$ 29,563
Weighted Average Interest Rate	5.00%	5.00%
Medium-term Notes \| 2025 8.125% Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 50,000	$ 50,000
Borrowings	$ 49,564	$ 49,433
Weighted Average Interest Rate	8.125%	8.125%
Medium-term Notes \| 2026 Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 115,000	$ 115,000
Borrowings	$ 113,743	$ 113,564
Weighted Average Interest Rate	5.50%	5.50%
Medium-term Notes \| 2028 Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 40,000	$ 40,000
Borrowings	$ 38,465	$ 38,378
Weighted Average Interest Rate	8.00%	8.00%

COMMITMENTS AND CONTINGENCIES - Narrative (Details)	Mar. 31, 2024 USD ($)
Commitments to Extend Credit
Other Commitments [Line Items]
Commitment	$ 108,800,000
SBA investment
Other Commitments [Line Items]
Commitment	15,900,000
504 Loan
Other Commitments [Line Items]
Commitment	87,700,000
ALP Loans
Other Commitments [Line Items]
Commitment	0
C&I
Other Commitments [Line Items]
Commitment	$ 5,300,000

SERVICING ASSETS

3 Months Ended

Mar. 31, 2024

Transfers and Servicing [Abstract]

SERVICING ASSETS

NOTE 7—SERVICING ASSETS:

Servicing assets held by NSBF and Newtek Bank, including Newtek Bank’s 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 March 31, 2024 the Company services $1.9 billion in SBA 7(a) loans and $88.6 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 March 31, 2024 and December 31, 2023:


	March 31, 2024								December 31, 2023
			Weighted		Range						Weighted		Range
Unobservable Input	Amount		Average		Minimum		Maximum		Amount		Average		Minimum		Maximum

Servicing Assets at FV:	$	27,601							$	29,336
Discount factor1			13.50	%	13.50	%	13.50	%			13.50	%	13.50	%	13.50	%
Cumulative prepayment rate			22.50	%	22.50	%	22.50	%			22.50	%	22.50	%	22.50	%
Average cumulative default rate			19.00	%	19.00	%	19.00	%			19.00	%	19.00	%	19.00	%

Servicing Assets at LCM:	13,571								10,389
Discount factor1			13.50	%	13.50	%	13.50	%			13.50	%	13.50	%	13.50	%
Cumulative prepayment rate			30.41	%	22.50	%	75.00	%			29.76	%	22.50	%	75.00	%
Average cumulative default rate			19.15	%	19.00	%	20.00	%			19.14	%	19.00	%	20.00	%

Total	$	41,172							$	39,725

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

Servicing fee income earned for the three months ended March 31, 2024 and 2023 was $5.4 million and $4.4 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
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 1
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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-Name Accounting Standards Codification
-Section 50
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-Subparagraph (a)(5)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//860/tableOfContent

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
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+ Details

STOCK BASED COMPENSATION - Dividends (Details) - USD ($) $ in Thousands		3 Months Ended
	Apr. 14, 2023	Mar. 31, 2024	Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
DRIP Shares Issued	6,000
DRIP Shares Value	$ 72
Unvested Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
DRIP Shares Issued		6,300	4,700
DRIP Shares Value		$ 71	$ 60

- 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.

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+ Details

STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

STOCK BASED COMPENSATION

NOTE 14—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
Three months ended March 31, 2024	(45)	—
Total net restricted stock (granted)/forfeited	(127)	(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.

As of March 31, 2024, there was $3.5 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 1.8 years as of March 31, 2024.

Shares outstanding

As of March 31, 2024, 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 $17.89. In addition, there are 35 thousand shares outstanding relating to dividends on unvested restricted stock awards as of March 31, 2024.

During the three months ended March 31, 2024 and 2023, additional shares were issued related to dividends on unvested shares of restricted stock granted as follows:

Three Months Ended March 31, 2024

Three Months Ended March 31, 2023

# of Shares

$ of Shares

# of Shares

$ of Shares

Dividends on Unvested Shares of Restricted Stock Grants

$71

$60

For the three months ended March 31, 2024 and 2023 the Company recognized total stock-based compensation expense of $0.7 million and $0.7 million, respectively.

INVESTMENTS - Investment Portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Non-Control Investments
Debt Securities, Available-for-Sale [Line Items]
Cost	$ 772	$ 796
Fair Value	728	728	$ 1,360	$ 1,360
Joint Ventures
Debt Securities, Available-for-Sale [Line Items]
Cost	45,108	37,864
Fair Value	48,247	40,859	$ 25,022	$ 23,022
Debt securities available-for-sale, at fair value
Debt Securities, Available-for-Sale [Line Items]
Cost	28,319	32,372
Fair Value	28,127	32,171
Federal Home Loan Bank and Federal Reserve Bank stock
Debt Securities, Available-for-Sale [Line Items]
Cost	3,773	3,635
Fair Value	3,773	3,635
Total investments
Debt Securities, Available-for-Sale [Line Items]
Cost	77,972	74,667
Fair Value	$ 80,875	$ 77,393

- Definition

Cost of the investment.

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+ 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

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-Name Accounting Standards Codification
-Section 50
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-Subparagraph (aa)
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
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-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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-Name Accounting Standards Codification
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-Paragraph 2
-Subparagraph (d)
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 3
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

LOANS - Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 12,574	$ 0
Adjustment to Beginning Balance due to PCD marks			$ 0	$ 871
Charge offs	(370)	0
Recoveries	0	0
Provision for Credit Losses	3,922	1,318
Ending Balance	16,126	2,189
Provision for credit losses relating to unfunded commitments	93
CRE
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	1,408	0
Adjustment to Beginning Balance due to PCD marks			0	775
Charge offs	0	0
Recoveries	0	0
Provision for Credit Losses	(130)	1,185
Ending Balance	1,278	1,960
C&I
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	314	0
Adjustment to Beginning Balance due to PCD marks			0	96
Charge offs	0	0
Recoveries	0	0
Provision for Credit Losses	(17)	127
Ending Balance	297	223
SBA 7(a)
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	10,852	0
Adjustment to Beginning Balance due to PCD marks				$ 0
Charge offs	(370)	0
Recoveries	0	0
Provision for Credit Losses	4,069	6
Ending Balance	$ 14,551	$ 6

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	$ 7,565	$ 16,140
Accumulated Amortization	(3,506)	(11,905)
Total	4,059	4,235
Core Deposits
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	1,040	1,040
Accumulated Amortization	(243)	(197)
Total	797	843
Technology Customer Lists
Acquired Finite-Lived Intangible Assets [Line Items]
Total	3,300	3,400
Technology Customer Lists \| Payments
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	0	8,575
Accumulated Amortization	0	(8,562)
Total	0	13
Technology Customer Lists \| Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	6,525	6,525
Accumulated Amortization	(3,263)	(3,146)
Total	$ 3,262	$ 3,379

BUSINESS COMBINATIONS

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [Abstract]

BUSINESS COMBINATIONS

NOTE 3—BUSINESS COMBINATIONS

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 was renamed Newtek Bank and became 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 was accounted for in accordance with ASC 805, Business Combinations, and the Company 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 was 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:


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 8—GOODWILL AND INTANGIBLE ASSETS. 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 year ended December 31, 2023 of $0.2 million. These costs have been included in the Consolidated Statement of Operations in Professional Services Expense.

COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2024

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 March 31, 2024 for future minimum cash payments required under operating lease and employment agreements:


Year	Operating Leases		Employment Agreements1		Total
2024	$	2,075	$	2,274	$	4,349
2025	2,461		740		3,201
2026	1,835		—		1,835
2027	429		—		429
2028	—		—		—
Thereafter	—		—		—
Total	$	6,800	$	3,014	$	9,814

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

INVESTMENTS - Narrative (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Jan. 28, 2022	May 20, 2019
Debt Securities, Available-for-Sale [Line Items]
Accrued interest receivable on available-for-sale securities	$ 13,900	$ 200,000
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			$ 56,300,000
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 - Individually and Collectively Evaluated (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
ACL
Individually Evaluated	$ 711	$ 102
Collectively Evaluated	15,415	12,472
Total	16,126	12,574	$ 2,189	$ 0
Recorded Investment
Individually Evaluated	7,879	5,348
Collectively Evaluated	389,432	330,564
Total	824,427	793,532
CRE
ACL
Individually Evaluated	0	0
Collectively Evaluated	1,278	1,408
Total	1,278	1,408	1,960	0
Recorded Investment
Individually Evaluated	5,998	4,621
Collectively Evaluated	163,871	159,182
Total	169,869	163,803
C&I
ACL
Individually Evaluated	0	0
Collectively Evaluated	297	314
Total	297	314	$ 223	$ 0
Recorded Investment
Individually Evaluated	0	0
Collectively Evaluated	13,404	8,191
Total	13,404	8,191
SBA
ACL
Individually Evaluated	711	102
Collectively Evaluated	13,840	10,750
Total	14,551	10,852
Recorded Investment
Individually Evaluated	1,881	727
Collectively Evaluated	212,157	163,191
Total	214,038	163,918
Total Loans
Recorded Investment
Total	$ 397,311	$ 335,912

FAIR VALUE MEASUREMENTS - Unobservable Units (Details) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset	$ 27,601	$ 29,336
Other real estate owned	2,438	1,110
Servicing assets at fair value	41,172	39,725
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets at fair value	27,601	29,336
Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets at fair value	13,571	10,389
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset	27,601	29,336
Other real estate owned	2,438	1,110
Equity warrants	76	141
Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	48,247	40,859	$ 25,022	$ 23,022
Joint Ventures \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	48,247	40,859
Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	728	728	$ 1,360	$ 1,360
Non-Control Investments \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	728	728
Unguaranteed Investments Accrual \| Non-affiliate \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	396,927	421,627
Unguaranteed Investments Non-Accrual \| Non-affiliate \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	46,001	48,174
Loans Held For Sale \| Non-affiliate \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	187,104	118,867
Market yields \| Investments \| Non-Control Investments \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	368	368
Cost \| Investments \| Non-Control Investments \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 360	$ 360
Weighted Average \| Market yields \| Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0830	0.0800
Weighted Average \| Market yields \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0775	0.0775
Weighted Average \| Market yields \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0750	0.0739
Weighted Average \| Market yields \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0768	0.0685
Weighted Average \| Market yields \| Investments \| Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1000	0.1000
Servicing assets, measurement input	0.1350	0.1350
Weighted Average \| Cumulative prepayment rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Weighted Average \| Cumulative prepayment rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.3041	0.2976
Weighted Average \| Cumulative prepayment rate \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2250	0.2250
Weighted Average \| Cumulative prepayment rate \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0	0
Weighted Average \| Cumulative prepayment rate \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.6103	0.6103
Weighted Average \| Cumulative prepayment rate \| Investments \| Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Weighted Average \| Average cumulative default rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Weighted Average \| Average cumulative default rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1915	0.1914
Weighted Average \| Average cumulative default rate \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1900	0.1900
Weighted Average \| Average cumulative default rate \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.3000	0.3000
Weighted Average \| Average cumulative default rate \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2000	0.2000
Weighted Average \| Average cumulative default rate \| Investments \| Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Weighted Average \| Cost \| Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1200	0.1200
Weighted Average \| Weighted average cost of capital \| Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0850	0.0850
Weighted Average \| Expected volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.4400	0.4300
Weighted Average \| Dividend yield
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0690	0.0520
Weighted Average \| Risk free rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0420	0.0388
Minimum \| Market yields \| Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0830	0.0800
Minimum \| Market yields \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0775	0.0775
Minimum \| Market yields \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0750	0.0739
Minimum \| Market yields \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0721	0.0650
Minimum \| Market yields \| Investments \| Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0800	0.0800
Servicing assets, measurement input	0.1350	0.1350
Minimum \| Cumulative prepayment rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum \| Cumulative prepayment rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum \| Cumulative prepayment rate \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2250	0.2250
Minimum \| Cumulative prepayment rate \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0	0
Minimum \| Cumulative prepayment rate \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.5560	0.5560
Minimum \| Cumulative prepayment rate \| Investments \| Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum \| Average cumulative default rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Minimum \| Average cumulative default rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Minimum \| Average cumulative default rate \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1900	0.1900
Minimum \| Average cumulative default rate \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.3000	0.3000
Minimum \| Average cumulative default rate \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2000	0.2000
Minimum \| Average cumulative default rate \| Investments \| Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Minimum \| Cost \| Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1000	0.1000
Minimum \| Weighted average cost of capital \| Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0750	0.0750
Minimum \| Expected volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.4400	0.4300
Minimum \| Dividend yield
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0690	0.0520
Minimum \| Risk free rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0420	0.0388
Maximum \| Market yields \| Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0830	0.0800
Maximum \| Market yields \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0775	0.0775
Maximum \| Market yields \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0750	0.0739
Maximum \| Market yields \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0812	0.0775
Maximum \| Market yields \| Investments \| Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1200	0.1200
Servicing assets, measurement input	0.1350	0.1350
Maximum \| Cumulative prepayment rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Maximum \| Cumulative prepayment rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.7500	0.7500
Maximum \| Cumulative prepayment rate \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2250	0.2250
Maximum \| Cumulative prepayment rate \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0	0
Maximum \| Cumulative prepayment rate \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.7500	0.7500
Maximum \| Cumulative prepayment rate \| Investments \| Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Maximum \| Average cumulative default rate \| Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Maximum \| Average cumulative default rate \| Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2000	0.2000
Maximum \| Average cumulative default rate \| Unguaranteed Investments Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1900	0.1900
Maximum \| Average cumulative default rate \| Unguaranteed Investments Non-Accrual \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.3000	0.3000
Maximum \| Average cumulative default rate \| Loans Held For Sale \| Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2000	0.2000
Maximum \| Average cumulative default rate \| Investments \| Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Maximum \| Cost \| Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1400	0.1400
Maximum \| Weighted average cost of capital \| Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0950	0.0950
Maximum \| Expected volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.4400	0.4300
Maximum \| Dividend yield
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0690	0.0520
Maximum \| Risk free rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0420	0.0388

SERVICING ASSETS (Tables)

3 Months Ended

Mar. 31, 2024

Transfers and Servicing [Abstract]

Fair value and valuation assumption

The following tables summarizes the fair value and valuation assumptions related to servicing assets at March 31, 2024 and December 31, 2023:


	March 31, 2024								December 31, 2023
			Weighted		Range						Weighted		Range
Unobservable Input	Amount		Average		Minimum		Maximum		Amount		Average		Minimum		Maximum

Servicing Assets at FV:	$	27,601							$	29,336
Discount factor1			13.50	%	13.50	%	13.50	%			13.50	%	13.50	%	13.50	%
Cumulative prepayment rate			22.50	%	22.50	%	22.50	%			22.50	%	22.50	%	22.50	%
Average cumulative default rate			19.00	%	19.00	%	19.00	%			19.00	%	19.00	%	19.00	%

Servicing Assets at LCM:	13,571								10,389
Discount factor1			13.50	%	13.50	%	13.50	%			13.50	%	13.50	%	13.50	%
Cumulative prepayment rate			30.41	%	22.50	%	75.00	%			29.76	%	22.50	%	75.00	%
Average cumulative default rate			19.15	%	19.00	%	20.00	%			19.14	%	19.00	%	20.00	%

Total	$	41,172							$	39,725

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


	Fair Value as of			Weighted		Range
	March 31, 2024		Unobservable Input	Average		Minimum		Maximum
Assets:
HFI, at fair value - accrual loans	$	396,927	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	%
HFI, at fair value - non-accrual loans	$	46,001	Market yields	7.50	%	7.50	%	7.50	%
			Cumulative prepayment rate	—	%	—	%	—	%
			Average cumulative default rate	30.00	%	30.00	%	30.00	%
HFS, at fair value	$	187,104	Market yields	7.68	%	7.21	%	8.12	%
			Cumulative prepayment rate	61.03	%	55.60	%	75.00	%
			Average cumulative default rate	20.00	%	20.00	%	20.00	%
Joint ventures	$	48,247	Market yields	8.30	%	8.30	%	8.30	%
			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	$	27,601	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	$	2,438	Appraised value	N/A		N/A		N/A

Liabilities:
Equity warrants	$	76	Expected volatility	44.00	%	44.00	%	44.00	%
			Dividend yield	6.90	%	6.90	%	6.90	%
			Risk free rate	4.20	%	4.20	%	4.20	%

1 $27.6 million of servicing assets at held at FV and $13.6 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS.


	Fair Value as of			Weighted		Range
	December 31, 2023		Unobservable Input	Average		Minimum		Maximum
Assets:
HFI, 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	%
HFI, at fair value - 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	%
HFS, 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 held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS

SHAREHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

Distribution of assets, liabilities and stockholders' equity

The following table summarizes the Company’s dividend declarations and distributions during the three months ended March 31, 2024 and 2023:


Date Declared	Record Date	Payment Date	Amount Per Share		Cash Distribution		DRIP Shares Issued	DRIP Shares Value
Three months ended March 31, 2024
March 19, 2024	April 1, 2024	April 15, 2024	$	0.19	$	4,617	—	$	—




Three months ended March 31, 2023
February 27, 2023	April 4, 2023	April 14, 2023	$	0.18	$	4,291	6	$	72

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 20—SUBSEQUENT EVENTS: The Company performed a review of events subsequent to the balance sheet date through the date the financial statements were issued and determined that there were no material events requiring recognition or disclosure in the financial statements.

DERIVATIVE INSTRUMENTS - Derivatives Outstanding (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Liability	$ 38	$ 630
Foreign Exchange Future
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional1		(27,869)
Asset	0	0
Liability	$ 38	$ 630
Remaining Maturity	3 months	3 months
Foreign Exchange Future \| Short
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional1	$ (43,517)

- 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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- 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

SHAREHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

SHAREHOLDERS' EQUITY

NOTE 15—SHAREHOLDERS EQUITY:

Preferred Stock

On February 3, 2023, we entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with Patriot Financial Partners IV, L.P., and Patriot Financial Partners Parallel IV, L.P. (collectively, “Patriot”) in respect of 20 thousand shares of the Company’s Series A Convertible Preferred Stock, par value $0.02 per share (the “Series A Preferred Stock”), 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, pursuant to the Securities Purchase Agreement, the Company issued warrants to Patriot to purchase, in the aggregate, 47.54 thousand 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 entry into the Securities Purchase Agreement 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

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 provides 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 “ATM Program”). The Company may, subject to market conditions, engage in activity under the 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 three months ended March 31, 2024 and 2023 the Company had $0.4 million and $0.2 million in dividends on its preferred stock, respectively.

During the three months ended March 31, 2024 and 2023, an additional 6,300 and 4,700 shares valued at $0.1 million and $0.1 million, respectively, were issued related to dividends on unvested shares of restricted stock granted.

The Company’s dividends and distributions on the Company’s common shares are recorded on the declaration date. Effective December 8, 2023, the Company terminated the DRIP. The following table summarizes the Company’s dividend declarations and distributions during the three months ended March 31, 2024 and 2023:


Date Declared	Record Date	Payment Date	Amount Per Share		Cash Distribution		DRIP Shares Issued	DRIP Shares Value
Three months ended March 31, 2024
March 19, 2024	April 1, 2024	April 15, 2024	$	0.19	$	4,617	—	$	—




Three months ended March 31, 2023
February 27, 2023	April 4, 2023	April 14, 2023	$	0.18	$	4,291	6	$	72

- Definition

The entire disclosure for equity.

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+ Details

DERIVATIVE INSTRUMENTS

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

NOTE 12—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 March 31, 2024 and December 31, 2023:


	March 31, 2024							December 31, 2023
			Fair Value				Remaining			Fair Value				Remaining
Contract Type	Notional1		Asset		Liability2		Maturity (years)	Notional1		Asset		Liability2		Maturity (years)
5-year Treasury Futures	$	(43,517)	$	—	$	38	0.25 years	$	(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 three months ended March 31, 2024 and 2023:


	Three Months Ended
		March 31, 2024	March 31, 2023
Contract Type			Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)		Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)
5-year Treasury Futures			$	592	$	(268)	$	(693)	$	197

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.

LOANS - Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	$ 397,625	$ 336,305
Deferred fees and costs	314	393
Loans held for investment, at amortized cost, net of deferred fees and costs	397,625	336,305
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	214,038	163,918
CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	169,869	163,803
C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	13,404	8,191
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	$ 397,311	$ 335,912

- Definition

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

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+ Details

INVESTMENTS

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

NOTE 4—INVESTMENTS:

Investments consisted of the following at:


	March 31, 2024				December 31, 2023
	Cost		Fair Value		Cost		Fair Value
Debt securities available-for-sale, at fair value	$	28,319	$	28,127	$	32,372	$	32,171
Federal Home Loan Bank and Federal Reserve Bank stock	3,773		3,773		3,635		3,635
Non-controlled investments	772		728		796		728
Joint ventures, at fair value	45,108		48,247		37,864		40,859
Total investments	$	77,972	$	80,875	$	74,667	$	77,393

The Company’s Alternative Lending Program (ALP)

NCL JV: On May 20, 2019, the Company and its joint venture partner launched NCL JV to provide ALP loans (formerly referred to as 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 ALP loans during 2020. On January 28, 2022, NCL JV closed a 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 ALP 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 (Unaudited)	March 31, 2024		December 31, 2023
Cash	$	677	$	612
Restricted cash	4,145		3,298
Investments in loans, at fair value (amortized cost of $62,158 and $70,083, respectively)	62,158		70,083
Other Assets	1,612		1,614
Total assets	68,592		75,607

Securitization notes payable	$	33,799	$	38,805
Other liabilities	885		905
Total liabilities	34,684		39,710

Net assets	33,908		35,897
Total liabilities and net assets	$	68,592	$	75,607


Selected Statements of Operations Information (Unaudited)	Three Months Ended March 31,
	2024		2023
Interest and other income	$	1,373	$	1,644
Total expenses	472		659
Net investment income	901		985
Unrealized (depreciation) appreciation on investments	(2,131)		712
Net (decrease) increase in net assets resulting from operations	$	(1,230)	$	1,697

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


Selected Statement of Assets and Liabilities Information (Unaudited)	March 31, 2024		December 31, 2023
Cash	$	1,728	$	4,401
Restricted cash	4,356		1,183
Investments in loans, at fair value (amortized cost of $93,945 and $66,689, respectively)	93,945		66,689
Other assets	1,542		1,374
Total assets	$	101,571	$	73,647

Bank notes payable	$	40,986	$	29,636


Other liabilities	591		1,092
Total liabilities	41,577		30,728

Net assets	59,994		42,919
Total net assets	$	101,571	$	73,647


Selected Statements of Operations Information (Unaudited)	Three Months Ended March 31,
	2024		2023
Interest and other income	$	2,343	$	615
Total expenses	1,464		550
Net investment income	879		65
Unrealized appreciation (depreciation) on investments	872		(513)
Realized loss on investments	—		(16)
Realized gain on derivative transactions	265		275
Unrealized gain (loss) on derivative transactions	574		(436)
Net increase (decrease) in net assets resulting from operations	$	2,590	$	(625)

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 three months ended March 31, 2024 and 2023 were as follows:


Company	Fair Value at December 31, 2023		Purchases (Cost)		Principal Received		Return of Investment		Net Realized Gains/(Losses)		Net Unrealized Gains/(Losses)		Fair Value at March 31, 2024		Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC	$	19,400	$	—	$	—	$	—	$	—	$	(1,150)	$	18,250	$	379
Newtek TSO II Conventional Credit Partners, LP	21,459		7,243		—		—		—		1,295		29,997		—
Total Joint Ventures	$	40,859	$	7,243	$	—	$	—	$	—	$	145	$	48,247	$	379

Non-Control Investments
EMCAP Loan Holdings, LLC	$	368	$	—	$	—	$	(24)	$	—	$	24	$	368	$	7
Biller Genie Software, LLC	360		—		—		—		—		—		360		—
Total Non-Control Investments	$	728	$	—	$	—	$	(24)	$	—	$	24	$	728	$	7

Total Affiliate Investments	$	41,587	$	7,243	$	—	$	(24)	$	—	$	169	$	48,975	$	386


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 March 31, 2023		Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC	$	16,587	$	—	$	—	$	—	$	—	$	2,313	$	18,900	$	484
Newtek TSO II Conventional Credit Partners, LP	6,435		—		—		—		—		(313)		6,122		—
Total Joint Ventures	$	23,022	$	—	$	—	$	—	$	—	$	2,000	$	25,022	$	484

Non-Control Investments
EMCAP Loan Holdings, LLC	$	1,000	$	—	$	—	$	—	$	—	$	—	$	1,000	$	20
Biller Genie Software, LLC	360		—		—		—		—		—		360		—
Total Non-Control Investments	$	1,360	$	—	$	—	$	—	$	—	$	—	$	1,360	$	20

Total Affiliate Investments	$	24,382	$	—	$	—	$	—	$	—	$	2,000	$	26,382	$	504

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 March 31, 2024 and December 31, 2023:


	March 31, 2024								December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. Treasury notes	$	25,319	$	—	$	87	$	25,232	$	29,372	$	—	$	67	$	29,305
Government agency debentures	3,000		—		105		2,895		3,000		—		134		2,866
Total available for sale securities	$	28,319	$	—	$	192	$	28,127	$	32,372	$	—	$	201	$	32,171

As of March 31, 2024 and December 31, 2023, there was $13.9 thousand and $0.2 million of accrued interest receivable on available-for-sale securities, respectively, included in Other assets in the accompanying Consolidated Statements of Financial Condition.

During the three months ended March 31, 2024 and 2023, no securities were sold or settled.

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:


	March 31, 2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Holdings		Fair Value		Unrealized Losses
U.S. Treasury notes	$	25,232	$	(87)	$	—	$	—	1		$	25,232	$	(87)
Government agency debentures	2,895		(105)		—		—		2		2,895		(105)
Total	$	28,127	$	(192)	$	—	$	—	$	3	$	28,127	$	(192)


	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	$	29,305	$	67	$	—	$	—	1		$	29,305	$	67
Government agency debentures	2,866		134		—		—		2		2,867		134
Total	$	32,171	$	201	$	—	$	—	$	3	$	32,172	$	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:


	March 31, 2024				At December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing within 1 year	$	16,713	$	16,588	$	32,372	$	32,171
After 1 year through 5 years	11,606		11,539		—		—


Total available for sale securities	$	28,319	$	28,127	$	32,372	$	32,171

Other information

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


	March 31, 2024		December 31, 2023
Pledged for deposits	$	—	$	—
Pledged for borrowings and other	28,127		30,730
Total available for sale securities pledged	$	28,127	$	30,730

SERVICING ASSETS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	$ 41,172		$ 39,725
Servicing income	5,357	$ 4,403
SBA 7(a)
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	1,900,000
ALP Loans
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	88,600
Non-affiliate
Servicing Assets at Fair Value [Line Items]
Servicing income	$ 5,400	$ 4,400

LOANS - Nonaccrual Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual without Allowance	$ 6,708	$ 5,246
Nonaccrual with Allowance	1,171	102
ACL	711	102
SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual without Allowance	710	625
Nonaccrual with Allowance	1,171	102
ACL	711	102
CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual without Allowance	5,998	4,621
Nonaccrual with Allowance	0	0
ACL	$ 0	$ 0

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Investments with Affiliates (Details) - Related Party - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Due to affiliated companies	$ 172	$ 158
Due from affiliated companies	53	7
Total due to/due from affiliated companies	$ 119	$ 151

BORROWINGS (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

At March 31, 2024 and December 31, 2023, the Company had borrowings composed of the following:


	March 31, 2024						December 31, 2023
	Commitments		Borrowings Outstanding		Weighted Average Interest Rate		Commitments		Borrowings Outstanding		Weighted Average Interest Rate
Bank Lines of Credit1:
Webster NMS Note	54,871		35,624		7.93	%	54,871		36,628		7.94	%
SPV I Capital One Facility	60,000		20,241		8.18	%	60,000		16,080		8.20	%
SPV II Deutsche Bank Facility	50,000		18,063		10.02	%	50,000		6,799		10.04	%
SPV III One Florida Bank Facility	30,000		29,753		9.50	%	30,000		257		9.50	%
FHLB Advances	110,433		19,726		2.24	%	113,891		23,184		2.13	%
Notes issued by Parent Company1:
2024 Notes	38,250		38,178		5.75	%	38,250		38,124		5.75	%
2025 5.00% Notes	30,000		29,651		5.00	%	30,000		29,563		5.00	%
2025 8.125% Notes	50,000		49,564		8.13	%	50,000		49,433		8.13	%
2026 Notes	115,000		113,743		5.50	%	115,000		113,564		5.50	%
2028 Notes	40,000		38,465		8.00	%	40,000		38,378		8.00	%
Notes payable - Securitization Trusts2	273,269		269,480		7.85	%	296,223		292,112		7.84	%
Total	$	851,823	$	662,488	7.21	%	$	878,235	$	644,122	7.04	%

1 Net of deferred financing costs.

2 At March 31, 2024 and December 31, 2023, the net assets of the consolidated Trusts totaled $14.5 million and $14.8 million, respectively.


	March 31, 2024						December 31, 2023
	Principal balance		Unamortized deferred financing costs		Net carrying amount1		Principal balance		Unamortized deferred financing costs		Net carrying amount1
Bank Lines of Credit:
Webster NMS Note	$	35,884	$	(260)	$	35,624	$	36,881	$	(253)	$	36,628
SPV I Capital One Facility	20,400		(159)		20,241		16,300		(220)		16,080
SPV II Deutsche Bank Facility	18,136		(73)		18,063		6,900		(101)		6,799
SPV III One Florida Bank Facility	29,850		(97)		29,753		375		(118)		257
Notes issued by Parent Company:
2024 Notes	38,250		(72)		38,178		38,250		(126)		38,124
2025 5.00% Notes	30,000		(349)		29,651		30,000		(437)		29,563
2025 8.125% Notes	50,000		(436)		49,564		50,000		(567)		49,433
2026 Notes	115,000		(1,257)		113,743		115,000		(1,436)		113,564
2028 Notes	40,000		(1,535)		38,465		40,000		(1,622)		38,378
Notes Payable - Securitization Trusts	273,269		(3,789)		269,480		296,223		(4,111)		292,112

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.


	March 31, 2024				December 31, 2023
	Closing Price		Fair Value		Closing Price		Fair Value
2028 Notes	$	25.15	$	40,240	$	25.04	$	40,070
2026 Notes	24.32		111,872		23.75		109,250
2024 Notes	25.14		38,464		24.99		38,235

- 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

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+ Details

BENEFIT PLANS - Narrative (Details) - Employee Stock Purchase Plan $ in Thousands, shares in Millions	Jun. 14, 2023 USD ($) shares
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares authorized (in shares) \| shares	0.2
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%

SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Reconciliation of cash

The following table provides a reconciliation of cash, restricted cash, and interest bearing deposits in banks as of March 31, 2024 and 2023 and December 31, 2023:


	March 31, 2024		March 31, 2023		December 31, 2023
Cash and due from banks	$	12,295	$	29,103	$	15,398
Restricted cash	35,759		73,421		30,919
Interest bearing deposits in banks	115,152		94,620		137,689
Cash and restricted cash	$	163,206	$	197,144	$	184,006

Reconciliation of restricted cash

The following table provides a reconciliation of cash, restricted cash, and interest bearing deposits in banks as of March 31, 2024 and 2023 and December 31, 2023:


	March 31, 2024		March 31, 2023		December 31, 2023
Cash and due from banks	$	12,295	$	29,103	$	15,398
Restricted cash	35,759		73,421		30,919
Interest bearing deposits in banks	115,152		94,620		137,689
Cash and restricted cash	$	163,206	$	197,144	$	184,006

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
	Jan. 06, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Goodwill [Line Items]
Goodwill acquired during period	$ 300
Intangible assets		$ 4,059		$ 4,235
Amortization expense		200	$ 400
Technology Customer Lists
Goodwill [Line Items]
Intangible assets		3,300		3,400
Core Deposits
Goodwill [Line Items]
Intangible assets		$ 797		$ 843
NBNYC \| Core Deposits
Goodwill [Line Items]
Intangible asset, useful life	10 years

- 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

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 9,650	$ 18,550
Adjustments to reconcile net income to net cash used in operating activities:
Net gain on loans accounted for under the fair value option	(2,798)	(5,905)
Net unrealized depreciation (appreciation) on servicing assets	1,735	(919)
Net unrealized (appreciation) depreciation on derivative transactions	(592)	495
Net gain on sales of loans	(20,292)	(6,367)
Net accretion of premium/discount	(61)	0
Amortization of deferred financing costs	987	1,249
Provision for credit losses	4,015	(1,318)
Lower of cost or market adjustment on loans held for sale	221	0
Allowance for doubtful accounts	167	0
Stock compensation expense	681	739
Deferred income tax expense (benefit)	2,513	(11,739)
Depreciation and amortization	532	791
Proceeds from sale of loans held for sale	184,332	121,575
Purchase of loans held for sale	0	(5,797)
Funding of investments	(255,727)	(156,742)
Principal received on loans held for sale	1,638	1,347
Other, net	0	180
Changes in operating assets and liabilities:
Settlement receivable	5,340	(41,427)
Capitalized servicing asset	0	(2,164)
Other assets	(1,430)	6,692
Dividends payable	246	0
Due to participants	2,852	(7,447)
Accounts payable, accrued expenses and other liabilities	4,955	(20,816)
Other, net	0	(41)
Net cash used in operating activities	(38,674)	(116,359)
Cash flows from investing activities:
Net decrease (increase) in loans held for investment, at fair value	21,688	(7,595)
Net (increase) decrease in loans held for investment, at cost	(62,123)	269
Contributions to joint ventures	(7,243)	0
Purchase of fixed assets	(57)	(165)
Return of capital - non-control investments	24	0
Net (increase) decrease in Federal Home Loan and Federal Reserve Bank stock	(138)	242
Sales (purchases) of available-for-sale securities, net of maturities	4,044
Sales (purchases) of available-for-sale securities, net of maturities		(27,901)
Acquisitions, net of cash acquired	0	11,252
Net cash used in investing activities	(43,805)	(23,898)
Cash flows from financing activities:
Net borrowings on bank notes payable	43,814	47,274
Net increase in deposits	49,098	105,933
Repayment of Federal Home Loan Bank advances	(3,484)	(3,699)
Proceeds from preferred stock, net of offering costs	0	19,493
Payments on Notes Payable - Securitization Trusts	(22,954)	(31,015)
Dividends paid, net of dividend reinvestment plan	(4,771)	0
Payments of deferred financing costs	(24)	(1,087)
Net cash provided by financing activities	61,679	186,899
Net (decrease) increase in cash and restricted cash	(20,800)	46,642
Cash and restricted cash—beginning of period (Note 2)	184,006	125,606
Consolidation of cash and restricted cash from controlled investments and business combinations, net of cash paid	0	24,896
Cash and restricted cash—end of period (Note 2)	163,206	197,144
Non-cash operating, investing and financing activities:
Foreclosed real estate acquired	1,447	694
Dividends declared but not paid during the period	4,617	4,363
Issuance of common shares under dividend reinvestment plan	0	72
Supplemental disclosure of cash flow information:
Interest paid	19,079	12,259
Income taxes paid	73	4,539
2025 8.125% Notes
Cash flows from financing activities:
Proceeds from Notes	0	50,000
Affiliate Investments
Adjustments to reconcile net income to net cash used in operating activities:
Net unrealized (appreciation) depreciation on investments	(169)	(2,000)
Sale (purchase) of loans held for sale from affiliate	$ 22,531	$ (5,295)

SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

Reclassifications and Restatements

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

In addition, as disclosed in our 2023 Form 10-K, the Company’s prior year 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. Balances as of and results for the three months ended March 31, 2023 are presented as restated. Refer to our 2023 Form 10-K for further detail.

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES:

A more detailed description of our accounting policies is included in the Company’s 2023 Form 10-K, which accounting policies remain significantly unchanged. There have been no other significant changes to our accounting policies, or the estimates made pursuant to those policies as described in our 2023 Form 10-K.

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 March 31, 2024, cash deposits in excess of insured amounts totaled $34.2 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 March 31, 2024.

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 March 31, 2024, total restricted cash was $35.8 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 March 31, 2024 and 2023 and December 31, 2023:


	March 31, 2024		March 31, 2023		December 31, 2023
Cash and due from banks	$	12,295	$	29,103	$	15,398
Restricted cash	35,759		73,421		30,919
Interest bearing deposits in banks	115,152		94,620		137,689
Cash and restricted cash	$	163,206	$	197,144	$	184,006

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, 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:

CRE: The CRE 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.

C&I: The C&I 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 licensed by the SBA may underwrite loans between $5.0 thousand 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 March 31, 2024, 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.

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.

Settlement Receivable

Settlement receivable represents amounts due from third parties for guaranteed portions of SBA 7(a) loans which have been sold at period-end but have not yet settled. The guaranteed portion of SBA 7(a) principal balances that have been sold but not yet settled at March 31, 2024 was $51.1 million. The settlement receivable also includes $5.8 million of premiums, which have been recognized in Net Gains on Sales of Loans.

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 statements of financial condition were a deferred tax asset, net of $2.7 million and $5.2 million at March 31, 2024 and December 31, 2023, 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 is subject to corporate level income tax. See NOTE 18—INCOME TAXES.

Recently Adopted Accounting Pronouncements

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 No. 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. 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. Under ASU 2022-02, the Company evaluated 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 made to borrowers deemed to be in financial difficulty. The impact of these amendments was not material.

Fair Value Measurement (ASU 2022-03): 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. 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 impact of these amendments was not material.

New Accounting Standards

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 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.

Compensation—Stock Compensation (ASU 2024-01)

In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This standard is effective for fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not anticipate it will have a material impact on its consolidated financial statements.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	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 (loss)	Accumulated other comprehensive income (loss) As Reported	Accumulated undistributed earnings	Accumulated undistributed earnings As Reported	Accumulated undistributed earnings Adjustment	Retained earnings	Retained earnings As Reported
Beginning balance (in shares) at Dec. 31, 2022						24,609
Beginning balance at Dec. 31, 2022		$ 375,358				$ 492			$ 0			$ 354,243				$ 0		$ 20,623			$ 0
Beginning balance, preferred stock (in shares) at Dec. 31, 2022									0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in presentation			$ 0										$ 20,623						$ (20,623)
Removal of fair value adjustments			(138,043)										(138,043)
Consolidation of controlled investments				$ (57,725)						$ 245				$ (57,970)
Reassessment of deferred tax assets and liabilities			19,266										19,266
DRIP shares issued (in shares)							6
DRIP shares issued			$ 72										$ 72
Stock-based compensation expense, net of forfeitures	$ 738										$ 738
Dividends declared related to RSA (in shares)					5
Dividends declared related to RSA, net of accrued dividends forfeited	0										59									$ (59)
Purchase of vested stock for employee payroll tax withholding (in shares)					(11)
Purchase of vested stock for employee payroll tax withholding	(429)				$ (1)						(428)
Issuance of stock (in shares)								20
Issuance of stock	20,000							$ 20,000
Preferred stock issuance costs	(507)							(507)
Dividends declared common shares	(4,363)																			(4,363)
Dividends declared preferred shares	(249)																			(249)
Net income (loss)	18,550																			18,550
Other comprehensive income (loss), net of tax	(82)														$ (82)
Ending balance (in shares) at Mar. 31, 2023					24,609
Ending balance at Mar. 31, 2023	232,586				$ 491			$ 19,738			198,560				(82)		$ 0			13,879
Ending balance, preferred stock (in shares) at Mar. 31, 2023								20
Beginning balance (in shares) at Dec. 31, 2022						24,609
Beginning balance at Dec. 31, 2022		375,358				$ 492			$ 0			354,243				0		$ 20,623			0
Beginning balance, preferred stock (in shares) at Dec. 31, 2022									0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared preferred shares	$ (200)
Ending balance (in shares) at Dec. 31, 2023	24,680					24,680
Ending balance at Dec. 31, 2023	$ 249,046	$ 249,046				$ 492			$ 19,738			$ 200,913				$ (148)					$ 28,051
Ending balance, preferred stock (in shares) at Dec. 31, 2023	20								20
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense, net of forfeitures	$ 681										681
Dividends declared related to RSA (in shares)					6
Dividends declared related to RSA, net of accrued dividends forfeited	0										73									(73)
Purchase of vested stock for employee payroll tax withholding (in shares)					(21)
Purchase of vested stock for employee payroll tax withholding	(253)										(253)
Restricted stock awards (in shares)					45
Restricted stock awards, net of forfeitures	1				$ 1
ESPP issuances	56										56
Amortization of offering costs	(39)										(39)
Dividends declared common shares	(4,617)																			(4,617)
Dividends declared preferred shares	(400)																			(400)
Net income (loss)	9,650																			9,650
Other comprehensive income (loss), net of tax	$ 7														7
Ending balance (in shares) at Mar. 31, 2024	24,715				24,715
Ending balance at Mar. 31, 2024	$ 254,132				$ 493			$ 19,738			$ 201,431				$ (141)					$ 32,611
Ending balance, preferred stock (in shares) at Mar. 31, 2024	20							20

SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended		12 Months Ended
	Apr. 14, 2023	Feb. 03, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Nov. 17, 2023
Subsidiary, Sale of Stock [Line Items]
Preferred stock, par value (in dollars per share)			$ 0.02		$ 0.02
Issuance of Preferred stock				$ 20,000
Warrants issued (in shares)		47,540
Price of warrant (in dollars per share)		$ 21.03468
Dividends to preferred shareholders			$ 400	249	$ 200
DRIP Shares Value	$ 72
DRIP Shares Issued	6,000
Unvested Restricted Stock
Subsidiary, Sale of Stock [Line Items]
DRIP Shares Value			$ 71	$ 60
DRIP Shares Issued			6,300	4,700
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
Issuance price (in dollars per share)		$ 1,000
Convertible shares (in shares)		47.54053782
2023 ATM Equity Distribution
Subsidiary, Sale of Stock [Line Items]
Common stock authorized for sale (in shares)						3,000,000

COMMITMENTS AND CONTINGENCIES - Obligations and Commitments Under Operating Lease and Employment Agreements (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Operating Leases
2024	$ 2,075
2025	2,461
2026	1,835
2027	429
2028	0
Thereafter	0
Total	6,800
Employment Agreement
2024	2,274
2025	740
2026	0
2027	0
2028	0
Thereafter	0
Total	3,014
Total
2024	4,349
2025	3,201
2026	1,835
2027	429
2028	0
Thereafter	0
Total	$ 9,814

BENEFIT PLANS

3 Months Ended

Mar. 31, 2024

Retirement Benefits [Abstract]

BENEFIT PLANS

NOTE 17—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.

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 from inception through March 31, 2024:


	Period Ended March, 31 2024		Year Ended December 31, 2023
	Offering Period 2		Offering Period 1
Commencement date	10/1/2023		10/1/2023
End date	3/15/2024		12/15/2023
Shares purchased	5		4
Weighted average share price	$	9.83	$	13.05
Total purchased	$	51	$	51

STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation expense	$ 0.7	$ 0.7
Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense	$ 3.5
Remaining weighed-average period	1 year 9 months 18 days
Outstanding (shares)	345
Weighted average grant date fair value (in dollars per share)	$ 17.89
Unvested Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding (shares)	35

- 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

INCOME TAXES	3 Months Ended
INCOME TAXES	Mar. 31, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 18—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. Beginning with 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 26.33% for the three months ended March 31, 2024. The effective tax rate differs from the federal tax rate of 21% for the three months ended March 31, 2024 due primarily to the addition of estimated state tax. 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 $31.7 million of the total NOLs against 2023 taxable income and will carry forward the remaining balance of $3.7 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 2020 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 periods ended March 31, 2024 and 2023.

- 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

DERIVATIVE INSTRUMENTS - Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Appreciation/(Depreciation)	$ 592	$ (495)
Foreign Exchange Future
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Appreciation/(Depreciation)	592	(693)
Realized Gain/(Loss)	$ (268)	$ 197

- 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

DEPOSITS - Maturities (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Banking and Thrift, Interest [Abstract]
2024	$ 92,829
2025	64,999
2026	31,530
2027	19,574
2028	711
Thereafter	78
Total time deposits	$ 209,721

LOANS (Tables)

3 Months Ended

Mar. 31, 2024

Receivables [Abstract]

Investment holdings, schedule of investments

Investments consisted of the following at:


	March 31, 2024				December 31, 2023
	Cost		Fair Value		Cost		Fair Value
Debt securities available-for-sale, at fair value	$	28,319	$	28,127	$	32,372	$	32,171
Federal Home Loan Bank and Federal Reserve Bank stock	3,773		3,773		3,635		3,635
Non-controlled investments	772		728		796		728
Joint ventures, at fair value	45,108		48,247		37,864		40,859
Total investments	$	77,972	$	80,875	$	74,667	$	77,393

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
	March 31, 2024				December 31, 2023
	Cost		Fair Value		Cost		Fair Value
Food Services and Drinking Places	$	41,147	$	41,361	$	43,779	$	43,955
Specialty Trade Contractors	39,276		34,659		40,193		35,451
Professional, Scientific, and Technical Services	34,584		33,734		36,248		35,377
Ambulatory Health Care Services	26,757		25,373		27,291		26,633
Amusement, Gambling, and Recreation Industries	18,923		20,281		21,289		22,839
Administrative and Support Services	20,521		18,847		21,319		19,521
Merchant Wholesalers, Durable Goods	19,815		18,476		21,873		21,152
Repair and Maintenance	15,513		16,584		15,886		17,005
Merchant Wholesalers, Nondurable Goods	13,841		13,662		15,623		15,573
Personal and Laundry Services	12,612		13,320		12,867		13,584
Fabricated Metal Product Manufacturing	11,825		12,608		12,439		13,205
Truck Transportation	15,138		11,156		15,590		12,113
Construction of Buildings	9,715		9,810		9,868		9,890
Accommodation	9,213		9,668		9,259		10,162
Social Assistance	8,730		9,547		8,857		9,721
Food Manufacturing	10,160		8,573		10,233		8,714
Motor Vehicle and Parts Dealers	8,055		8,358		9,046		9,382
Transportation Equipment Manufacturing	7,619		7,974		7,687		7,999
Support Activities for Mining	7,942		7,290		8,455		7,754
Food and Beverage Stores	6,750		7,058		7,026		7,306
Rental and Leasing Services	6,657		7,054		6,764		7,178
Nursing and Residential Care Facilities	6,126		6,581		6,182		6,709
Building Material and Garden Equipment and Supplies Dealers	5,876		5,750		7,384		6,781
Educational Services	5,148		5,356		5,368		5,636
Other	95,638		89,848		102,037		96,161
Total	$	457,581	$	442,928	$	482,563	$	469,801

Schedule of loans and leases


	Loans Held for Investment, at Amortized Cost
	March 31, 2024		December 31, 2023
SBA	$	214,038	$	163,918
CRE	169,869		163,803
C&I	13,404		8,191
Total Loans	397,311		335,912
Deferred fees and costs, net	314		393
Loans held for investment, at amortized cost, net of deferred fees and costs	$	397,625	$	336,305

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


	As of March 31, 2024
		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		$	9,818	$	—	$	—	$	2,017	$	11,835	$	202,203	$	214,038	$	—	$	214,038
CRE		326		946		—		5,998		7,270		162,599		169,869		—		169,869
C&I		—		—		—		—		—		13,404		13,404		—		13,404
Total, at amortized cost		$	10,144	$	946	$	—	$	8,015	$	19,105	$	378,206	$	397,311	$	—	$	397,311
Deferred fees and costs														314		—		314
Total, at amortized cost net of deferred fees and costs														$	397,625	$	—	$	397,625
Allowance for credit losses														(16,126)		—		(16,126)
Total, at amortized cost, net														$	381,499	$	—	$	381,499

At fair value
SBA		$	61,314	$	548	$	3,829	$	46,001	$	111,692	$	331,236	$	—	$	442,928	$	442,928


Total loans held for investment		$	71,458	$	1,494	$	3,829	$	54,016	$	130,797	$	709,442	$	381,499	$	442,928	$	824,427

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


	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		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
CRE		948		—		—		4,621		5,569		158,234		163,803		—		163,803
C&I		—		—		—		—		—		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

Credit quality indicators

The following tables present asset quality indicators by portfolio class and origination year as of March 31, 2024.


	Term Loans Held for Investment by Origination Year
	2024		2023		2022		2021		2020		Prior		Total
SBA 7(a) Unguaranteed, net of deferred fees and costs
Risk Grades 1-4	$	50,645	$	154,273	$	—	$	—	$	—	$	—	$	204,918
Risk Grades 5-6	771		8,349		—		—		—		—		9,120
Risk Grade 7	—		—		—		—		—		—		—
Risk Grade 8	—		—		—		—		—		—		—
Total	$	51,416	$	162,622	$	—	$	—	$	—	$	—	$	214,038

SBA, at fair value
Risk Grades 1-4	$	—	$	33,261	$	145,730	$	50,577	$	26,696	$	134,400	$	390,664
Risk Grades 5-6	—		325		9,564		6,090		1,276		34,098		51,353
Risk Grade 7	—		—		—		—		—		—		—
Risk Grade 8	—		—		149		17		22		723		911
Total	$	—	$	33,586	$	155,443	$	56,684	$	27,994	$	169,221	$	442,928

CRE
Risk Grades 1-4	$	10,101	$	26,144	$	33,519	$	16,555	$	399	$	74,091	$	160,809
Risk Grades 5-6	—		—		—		686		870		7,504		9,060
Risk Grade 7	—		—		—		—		—		—		—
Total	$	10,101	$	26,144	$	33,519	$	17,241	$	1,269	$	81,595	$	169,869

C&I
Risk Grades 1-4	$	2,901	$	8,486	$	—	$	—	$	—	$	2,017	$	13,404
Risk Grades 5-6	—		—		—		—		—		—		—
Risk Grade 7	—		—		—		—		—		—		—
Total	$	2,901	$	8,486	$	—	$	—	$	—	$	2,017	$	13,404

Total	$	64,418	$	230,838	$	188,962	$	73,925	$	29,263	$	252,833	$	840,239

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


December 31, 2023	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

CRE
Risk Grades 1-4	$	53,567	$	28,224	$	14,590	$	—	$	8,888	$	49,771	$	155,040
Risk Grades 5-6	—		—		948		910		2,284		4,621		8,763
Risk Grade 7	—		—		—		—		—		—		—
Total	$	53,567	$	28,224	$	15,538	$	910	$	11,172	$	54,392	$	163,803

C&I
Risk Grades 1-4	$	6,174	$	—	$	—	$	—	$	—	$	2,017	$	8,191
Risk Grades 5-6	—		—		—		—		—		—		—
Risk Grade 7	—		—		—		—		—		—		—
Total	$	6,174	$	—	$	—	$	—	$	—	$	2,017	$	8,191

Total	$	258,297	$	189,270	$	75,366	$	30,059	$	75,127	$	177,594	$	805,713

Allowance for credit losses

The following table details activity in the ACL for the three months ended March 31, 2024 and 2023.


	March 31, 2024								March 31, 2023
	CRE		C&I		SBA		Total		CRE		C&I		SBA		Total
Beginning Balance	$	1,408	$	314	$	10,852	12,574		$	—	$	—	$	—	—
Adjustment to Beginning Balance due to PCD marks1	—		—				—		775		96		—		871
Charge offs	—		—		(370)		(370)		—		—		—		—
Recoveries	—		—		—		—		—		—		—		—
Provision for Credit Losses2	(130)		(17)		4,069		3,922		1,185		127		6		1,318
Total	$	1,278	$	297	$	14,551	$	16,126	$	1,960	$	223	$	6	$	2,189

1 Given the January 6, 2023 transition to a financial holding company, the Company established an ACL representing the purchased credit deteriorated loans acquired through the NBNYC Acquisition.

2 Excludes $93 thousand of the Provision for Credit Losses relating to unfunded commitments for the three months ended March 31, 2024, which is recorded within accounts payable, accrued expenses and other liabilities in accordance with ASC 326.

The following table presents the individually evaluated and collectively evaluated ACL by segment:


	March 31, 2024								December 31, 2023
ACL	CRE		C&I		SBA		Total		CRE		C&I		SBA		Total
Individually Evaluated	$	—	$	—	$	711	$	711	$	—	$	—	$	102	$	102
Collectively Evaluated	1,278		297		13,840		15,415		1,408		314		10,750		12,472
Total	$	1,278	$	297	$	14,551	$	16,126	$	1,408	$	314	$	10,852	$	12,574

The following table presents the recorded investment in loans individually evaluated and collectively evaluated by segment:


	March 31, 2024								December 31, 2023
Recorded Investment	CRE		C&I		SBA		Total		CRE		C&I		SBA		Total
Individually Evaluated	$	5,998	$	—	$	1,881	$	7,879	$	4,621	$	—	$	727	$	5,348
Collectively Evaluated	163,871		13,404		212,157		389,432		159,182		8,191		163,191		330,564
Total	$	169,869	$	13,404	$	214,038	$	397,311	$	163,803	$	8,191	$	163,918	$	335,912

Past due loans

The amortized cost basis of loans on nonaccrual status and the individually assessed ACL are as follows:


	March 31, 2024						December 31, 2023
	Nonaccrual without Allowance		Nonaccrual with Allowance		ACL		Nonaccrual without Allowance		Nonaccrual with Allowance		ACL
SBA	$	710	$	1,171	$	711	$	625	$	102	$	102
CRE	5,998		—		—		4,621		—		—








Total	$	6,708	$	1,171	$	711	$	5,246	$	102	$	102

Impaired financing receivables

The unpaid contractual principal balance and recorded investment for the loans individually assessed is shown in the table below by type:


	March 31, 2024				December 31, 2023

	Real Estate Collateral		Unsecured		Total		ACL		Real Estate Collateral		Unsecured		Total		ACL
SBA	$	625	$	1,256	$	1,881	$	711	$	625	$	102	$	727	$	102
CRE	5,998		—		5,998		—		4,621		—		4,621		—







Total	$	6,623	1,256		7,879		711		$	5,246	102		5,348		102

Held for sale


	March 31, 2024				December 31, 2023
	At FV		At LCM		At FV		At LCM
SBA 504 First Lien	$	83,571	$	39,381	$	66,387	$	38,787
SBA 504 Second Lien	28,102		6,850		20,757		5,741
SBA 7(a)	261		3,181		262		64
SBA 7(a) Partials	192		9,609		104		11,237
ALP	74,978		—		31,357		—
Subtotal	187,104		59,021		118,867		55,829
Deferred fees and costs	—		859		—		778
Loans held for sale, net of deferred fees and costs	$	187,104	$	59,880	$	118,867	$	56,607

GOODWILL AND INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

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


	March 31, 2024		December 31, 2023
Banking	$	271	$	271
Payments	13,814		$	13,814
Technology	11,800		$	11,800
Total goodwill	$	25,885	$	25,885

Schedule of intangible assets

The following table summarizes intangible assets:


	At March 31, 2024						At December 31, 2023
	Gross carrying Amount		Accumulated Amortization		Net Carrying amount		Gross carrying Amount		Accumulated Amortization		Net Carrying amount
Core Deposits	$	1,040	$	(243)	$	797	$	1,040	$	(197)	$	843
Payments Customer Lists	—		—		—		8,575		(8,562)		13
Technology Customer Lists	6,525		(3,263)		3,262		6,525		(3,146)		3,379
Total intangible assets	$	7,565	$	(3,506)	$	4,059	$	16,140	$	(11,905)	$	4,235

Intangible asset amortization schedule

The remaining estimated aggregate future amortization expense for intangible assets as of March 31, 2024 is as follows:


	Amortization Expense
2024	$	480
2025	622
2026	601
2027	580
2028	560
Thereafter	1,216
Total	$	4,059

- 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
-Topic 350
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-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 9,650	$ 18,550
Other comprehensive gain (loss) before tax:
Net unrealized gain (loss) on debt securities available-for-sale during the period	9	(113)
Other comprehensive gain (loss) before tax	9	(113)
Income tax (expense) benefit	(2)	31
Other comprehensive income (loss), net of tax	7	(82)
Comprehensive income	$ 9,657	$ 18,468

- Definition

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

+ References

+ Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024 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

GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2024

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:


	March 31, 2024		December 31, 2023
Banking	$	271	$	271
Payments	13,814		$	13,814
Technology	11,800		$	11,800
Total goodwill	$	25,885	$	25,885

Banking:

Payments and Technology:

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 March 31, 2024						At December 31, 2023
	Gross carrying Amount		Accumulated Amortization		Net Carrying amount		Gross carrying Amount		Accumulated Amortization		Net Carrying amount
Core Deposits	$	1,040	$	(243)	$	797	$	1,040	$	(197)	$	843
Payments Customer Lists	—		—		—		8,575		(8,562)		13
Technology Customer Lists	6,525		(3,263)		3,262		6,525		(3,146)		3,379
Total intangible assets	$	7,565	$	(3,506)	$	4,059	$	16,140	$	(11,905)	$	4,235

As of March 31, 2024 and December 31, 2023, the Company had $3.3 million and $3.4 million, respectively, of intangible assets relating to customer lists. In addition, The Company had $0.8 million and $0.8 million on core deposits at Newtek Bank as of March 31, 2024 and December 31, 2023, respectively.

Customer Lists. The intangible asset for customer lists are within the technology segment and existed prior to the consolidation of the technology segment into NewtekOne following the 2023 Acquisition. The payments customer list has been disposed of.

The remaining estimated aggregate future amortization expense for intangible assets as of March 31, 2024 is as follows:


	Amortization Expense
2024	$	480
2025	622
2026	601
2027	580
2028	560
Thereafter	1,216
Total	$	4,059

INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2022
Investments, Owned, Federal Income Tax Note [Line Items]
Effective tax rate	26.33%
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		31.7
Tax Years After 2023
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating losses		$ 3.7

INVESTMENTS - Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Amortized Cost
Maturing within 1 year	$ 16,713	$ 32,372
After 1 year through 5 years	11,606	0
Total available for sale securities	28,319	32,372
Fair Value
Maturing within 1 year	16,588	32,171
After 1 year through 5 years	11,539	0
Total available for sale securities	$ 28,127	$ 32,171

INVESTMENTS - Debt Securities, Unrealized Losses (Details) $ in Thousands	Mar. 31, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Debt Securities, Available-for-Sale [Line Items]
Less Than 12 Months, Fair Value	$ 28,127	$ 32,171
Less Than 12 Months, Unrealized Losses	(192)	(201)
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	$ 0	$ 0
Number of Holdings \| loan	3	3
Total, Fair Value	$ 28,127	$ 32,172
Total, Unrealized Losses	(192)	(201)
U.S. Treasury notes
Debt Securities, Available-for-Sale [Line Items]
Less Than 12 Months, Fair Value	25,232	29,305
Less Than 12 Months, Unrealized Losses	(87)	(67)
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	$ 0	$ 0
Number of Holdings \| loan	1	1
Total, Fair Value	$ 25,232	$ 29,305
Total, Unrealized Losses	(87)	(67)
Government agency debentures
Debt Securities, Available-for-Sale [Line Items]
Less Than 12 Months, Fair Value	2,895	2,866
Less Than 12 Months, Unrealized Losses	(105)	(134)
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	$ 0	$ 0
Number of Holdings \| loan	2	2
Total, Fair Value	$ 2,895	$ 2,867
Total, Unrealized Losses	$ (105)	$ (134)

SERVICING ASSETS - Fair Value and Valuation Assumptions (Details) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	$ 41,172	$ 39,725
Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	27,601	29,336
Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	$ 13,571	$ 10,389
Weighted Average \| Discount factor \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350	0.1350
Weighted Average \| Discount factor \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350	0.1350
Weighted Average \| Cumulative prepayment rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Weighted Average \| Cumulative prepayment rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.3041	0.2976
Weighted Average \| Average cumulative default rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Weighted Average \| Average cumulative default rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1915	0.1914
Minimum \| Discount factor \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350	0.1350
Minimum \| Discount factor \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350	0.1350
Minimum \| Cumulative prepayment rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum \| Cumulative prepayment rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum \| Average cumulative default rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Minimum \| Average cumulative default rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Maximum \| Discount factor \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350	0.1350
Maximum \| Discount factor \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350	0.1350
Maximum \| Cumulative prepayment rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Maximum \| Cumulative prepayment rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.7500	0.7500
Maximum \| Average cumulative default rate \| Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Maximum \| Average cumulative default rate \| Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2000	0.2000

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Bank Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Total deposits from related parties and their affiliated companies	$ 512,942	$ 463,505
Officers and Directors
Related Party Transaction [Line Items]
FDIC insured deposits	4,316	4,388
Non-FDIC insured deposits	1,178	1,167
Total deposits from related parties and their affiliated companies	$ 5,494	$ 5,555

DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Breakdown of derivatives outstanding

The following is a breakdown of the derivatives outstanding as of March 31, 2024 and December 31, 2023:


	March 31, 2024							December 31, 2023
			Fair Value				Remaining			Fair Value				Remaining
Contract Type	Notional1		Asset		Liability2		Maturity (years)	Notional1		Asset		Liability2		Maturity (years)
5-year Treasury Futures	$	(43,517)	$	—	$	38	0.25 years	$	(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


	Three Months Ended
		March 31, 2024	March 31, 2023
Contract Type			Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)		Unrealized Appreciation/(Depreciation)		Realized Gain/(Loss)
5-year Treasury Futures			$	592	$	(268)	$	(693)	$	197

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	3 Months Ended
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	Mar. 31, 2024
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 independent business owners (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. 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; POS; Holdco 6; NCL; and NTS. In addition, as a result of commitments made to the Federal Reserve, the Company will divest or otherwise terminate the activities conducted by NTS by January 6, 2025, subject to any extension. 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. Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data. The accompanying notes to the consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed on April 1, 2024 (the “2023 Form 10-K”). The unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and footnotes necessary for a fair presentation of the consolidated financial statements in accordance with U.S. GAAP. In the opinion of management, the consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. The annualized results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. The December 31, 2023 consolidated statement of assets and liabilities has been derived from the audited financial statements as of that date. All intercompany balances and transactions have been eliminated in consolidation. 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 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.

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 16—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.


	Three Months Ended March 31,
	2024		2023

Basic earnings per share:
Net income available to common shareholders	$	9,250	$	18,301
Weighted-average basic shares outstanding	24,287		24,223
Basic earnings per share	$	0.38	$	0.76
Diluted earnings per share:
Net income, for diluted earnings per share	$	9,250	$	18,301
Total weighted-average basic shares outstanding	24,287		24,223
Add effect of dilutive warrants and restricted stock awards3	71		658
Total weighted-average diluted shares outstanding	24,358		24,881
Diluted earnings per share1,2	$	0.38	$	0.74
Anti-dilutive warrants and restricted stock awards	1,065		248

2 For the three months ended March 31, 2024 and 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.

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2024	May 08, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		24,733,816
Entity Central Index Key	0001587987
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
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

SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of segments


As of and for the three months ended March 31, 2024
	Banking		Technology		NSBF		Payments		Corporate and Other		Eliminations		Consolidated
Interest income	$	13,571	$	1	$	10,744	$	545	$	3,323	$	(1,117)	$	27,067
Interest expense	5,853		—		5,966		796		6,663		(1,117)		18,161
Net interest income/(loss)	7,718		1		4,778		(251)		(3,340)		—		8,906
Provision for loan credit losses	4,015		—		—		—		—		—		4,015
Net interest income after provision for loan credit losses	3,703		1		4,778		(251)		(3,340)		—		4,891
Noninterest income	29,982		7,318		(1,212)		11,749		17,771		(16,241)		49,367
Noninterest expense	20,249		7,212		4,486		8,102		9,865		(8,755)		41,159
Income before taxes	13,436		107		(920)		3,396		4,566		(7,486)		13,099
Income tax expense (benefit)	4,035		—		—		—		(586)		—		3,449
Net income	9,401		107		(920)		3,396		5,152		(7,486)		9,650
Assets	$	736,100	$	22,523	$	600,877	$	56,892	$	786,420	$	(693,235)	$	1,509,577

BORROWINGS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
BORROWINGS - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Debt Instrument [Line Items]
Borrowings	$ 662,488		$ 644,122
Valuation adjustment, FHLB	(100)
Secured Debt \| FHLB Advances
Debt Instrument [Line Items]
Borrowings	19,726		$ 23,184
Medium-term Notes
Debt Instrument [Line Items]
Interest expense	$ 12,600	$ 12,700

- 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

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+ Details

- Definition

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

+ References + Details

FAIR VALUE MEASUREMENTS - Level III Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
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)
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	$ 469,801	$ 505,268
Consolidation changes		6,077
Reclasses between loans at FV and LCM		8,745
Gain (loss) included in earnings		(7,532)
Settlements	(21,713)	(21,732)
Purchases and repurchases of loans		5,797
Sales	(1,848)
Purchases	(1,447)	(694)
Fair value, ending balance	442,928	532,788
Loans Held for Investment \| SBA investment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	27	36,859
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	(1,892)
Loans Held For Sale
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	118,867	19,171
Consolidation changes		(172)
Reclasses between loans at FV and LCM		(8,745)
Gain (loss) included in earnings		11,877
Settlements	(166)	(1,345)
Purchases and repurchases of loans		32,534
Sales	(31,323)	(154,184)
Fair value, ending balance	187,104	125,639
Loans Held For Sale \| SBA investment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	4,203	132,753
Loans Held For Sale \| Conventional Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	66,905	12,150
Loans Held For Sale \| Mortgage Loan
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	24,179	11,855
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	4,426
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	13
Loans Held For Sale \| Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Consolidation changes		69,745
Investments \| Controlled Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance		259,217
Fair value, ending balance		0
Investments \| Controlled Investments \| Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Consolidation changes		(259,217)
Investments \| Joint Ventures
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	40,859	23,022
Gain (loss) included in earnings		2,000
Purchases	7,243
Fair value, ending balance	48,247	25,022
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	145
Investments \| Non-Control Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	728	1,360
Fair value, ending balance	728	1,360
Servicing assets
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	29,336	30,268
Consolidation changes		(1,735)
Gain (loss) included in earnings		2,654
Purchases		2,164
Fair value, ending balance	27,601	33,351
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	(1,735)
Warrant Liabilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	141	0
Gain (loss) included in earnings		(162)
Purchases		311
Fair value, ending balance	76	149
Warrant Liabilities \| Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(65)
Other Real Estate Owned
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	1,110	3,529
Consolidation changes		(45)
Sales	(74)	(641)
Purchases	1,447	673
Fair value, ending balance	2,438	$ 3,516
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	$ (45)

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Transactions with Joint Ventures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Related Party Transaction [Line Items]
Servicing income	$ 5,357	$ 4,403
Joint Ventures \| Related Party
Related Party Transaction [Line Items]
Servicing income	$ 348	$ 252

GOODWILL AND INTANGIBLE ASSETS - Future Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 480
2025	622
2026	601
2027	580
2028	560
Thereafter	1,216
Total	$ 4,059	$ 4,235

SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Property, Plant and Equipment [Line Items]
Loan-to-value ratio	75.00%
Debt service coverage, minimum	1.2
Cash deposits in excess of insured amounts	$ 34,200
Restricted cash	35,759	$ 30,919	$ 73,421
Deferred tax asset, net	2,717	$ 5,230
SBA investment
Property, Plant and Equipment [Line Items]
Principal balances sold	51,100
Premiums	$ 5,800

FAIR VALUE MEASUREMENTS - Fair Value Levels (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Assets:
Debt securities available-for-sale	$ 28,127	$ 32,171
Loans held for sale, at fair value	187,104	118,867
Loans held for investment, at fair value	442,928	469,801
Other real estate owned	2,438	1,110
Servicing asset	27,601	29,336
Total assets measured at fair value	737,173	692,872
Liabilities:
Liabilities	$ 38	$ 630
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accounts payable, accrued expenses and other liabilities	Accounts payable, accrued expenses and other liabilities
Total liabilities measured at fair value	$ 114	$ 771
Carrying Amount
Cash and due from banks	12,295	15,398	$ 29,103
Restricted cash	35,759	30,919	73,421
Interest bearing deposits in banks	115,152	137,689	94,620
Debt securities available-for-sale, at fair value	28,127	32,171
Loans HFS, at fair value	187,104	118,867
Loans held for sale, at LCM	59,880	56,607
Loans held for investment, at fair value	442,928	469,801
Loans held for investment, at amortized cost, net of deferred fees and costs	397,625	336,305
Federal Home Loan Bank and Federal Reserve Bank stock	3,773	3,635
Time deposits	209,721	167,041
Borrowings	662,488	644,122
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	28,127	32,171
Loans HFS, at fair value	187,104	118,867
Loans HFS, at LCM	60,227	56,733
Total loans HFI, at amortized cost, net of deferred fees and costs	398,453	337,133
Federal Home Loan Bank and Federal Reserve Bank stock	3,773	3,635
Time deposits	210,519	168,542
Borrowings	662,304	641,794
U.S. Treasury notes
Assets:
Debt securities available-for-sale	25,232	29,305
Government agency debentures
Assets:
Debt securities available-for-sale	2,895	2,866
Loans Held For Sale
Assets:
Loans held for sale, at fair value	187,104	118,867
Carrying Amount
Loans HFS, at fair value	187,104	118,867
Loans Held for Investment
Assets:
Loans held for investment, at fair value	442,928	469,801
Carrying Amount
Loans held for investment, at fair value	442,928	469,801
Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	12,295	15,398
Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	35,759	30,919
Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	115,152	137,689
Equity warrants
Liabilities:
Equity warrants	76	141
Joint Ventures
Assets:
Investments	48,247	40,859	25,022	$ 23,022
Carrying Amount
Investments in loans, at fair value	48,247	40,859	25,022	23,022
Non-Control Investments
Assets:
Investments	728	728	1,360	1,360
Carrying Amount
Investments in loans, at fair value	728	728	$ 1,360	$ 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	25,232	29,305
Liabilities:
Liabilities	0	0
Total liabilities measured at fair value	0	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	25,232	29,305
Loans HFS, at fair value	0	0
Loans HFS, at LCM	0	0
Total loans HFI, at amortized cost, net of deferred fees and costs	0	0
Federal Home Loan Bank and Federal Reserve Bank stock	0	0
Time deposits	0	0
Borrowings	0
Level 1 \| U.S. Treasury notes
Assets:
Debt securities available-for-sale	25,232	29,305
Level 1 \| Government agency debentures
Assets:
Debt securities available-for-sale	0	0
Level 1 \| Loans Held For Sale
Assets:
Loans held for sale, at fair value	0	0
Carrying Amount
Loans HFS, 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	12,295	15,398
Level 1 \| Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	35,759	30,919
Level 1 \| Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	115,152	137,689
Level 1 \| Equity warrants
Liabilities:
Equity warrants	0	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	2,895	2,866
Liabilities:
Liabilities	38	630
Total liabilities measured at fair value	38	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	2,895	2,866
Loans HFS, at fair value	0	0
Loans HFS, at LCM	0	0
Total loans HFI, at amortized cost, net of deferred fees and costs	0	0
Federal Home Loan Bank and Federal Reserve Bank stock	3,773	3,635
Time deposits	210,519	168,542
Borrowings	190,576	187,555
Level 2 \| U.S. Treasury notes
Assets:
Debt securities available-for-sale	0	0
Level 2 \| Government agency debentures
Assets:
Debt securities available-for-sale	2,895	2,866
Level 2 \| Loans Held For Sale
Assets:
Loans held for sale, at fair value	0	0
Carrying Amount
Loans HFS, 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	0
Level 2 \| Equity warrants
Liabilities:
Equity warrants	0	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	442,928	469,801
Other real estate owned	2,438	1,110
Servicing asset	27,601	29,336
Total assets measured at fair value	709,046	660,701
Liabilities:
Equity warrants	76	141
Liabilities	0	0
Total liabilities measured at fair value	76	141
Carrying Amount
Loans held for investment, at fair value	442,928	469,801
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	0	0
Loans HFS, at fair value	187,104	118,867
Loans HFS, at LCM	60,227	56,733
Total loans HFI, at amortized cost, net of deferred fees and costs	398,453	337,133
Federal Home Loan Bank and Federal Reserve Bank stock	0	0
Time deposits	0	0
Borrowings	471,728	454,239
Level 3 \| U.S. Treasury notes
Assets:
Debt securities available-for-sale	0	0
Level 3 \| Government agency debentures
Assets:
Debt securities available-for-sale	0	0
Level 3 \| Loans Held For Sale
Assets:
Loans held for sale, at fair value	187,104	118,867
Carrying Amount
Loans HFS, at fair value	187,104	118,867
Level 3 \| Loans Held for Investment
Assets:
Loans held for investment, at fair value	442,928	469,801
Carrying Amount
Loans held for investment, at fair value	442,928	469,801
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	0
Level 3 \| Equity warrants
Liabilities:
Equity warrants	76	141
Level 3 \| Non-affiliate \| Loans Held For Sale
Assets:
Investments	187,104	118,867
Carrying Amount
Investments in loans, at fair value	187,104	118,867
Level 3 \| Joint Ventures
Assets:
Investments	48,247	40,859
Carrying Amount
Investments in loans, at fair value	48,247	40,859
Level 3 \| Non-Control Investments
Assets:
Investments	728	728
Carrying Amount
Investments in loans, at fair value	$ 728	$ 728

BORROWINGS - Outstanding Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Weighted Average Interest Rate	7.21%	7.04%
Webster Note - MWI \| Line of Credit
Debt Instrument [Line Items]
Principal balance	$ 35,884	$ 36,881
Unamortized deferred financing costs	(260)	(253)
Net carrying amount	$ 35,624	$ 36,628
Weighted Average Interest Rate	7.93%	7.94%
Capital One Facilities \| Line of Credit
Debt Instrument [Line Items]
Principal balance	$ 20,400	$ 16,300
Unamortized deferred financing costs	(159)	(220)
Net carrying amount	20,241	16,080
Deutsche Bank Line of Credit \| Line of Credit
Debt Instrument [Line Items]
Principal balance	18,136	6,900
Unamortized deferred financing costs	(73)	(101)
Net carrying amount	$ 18,063	$ 6,799
Weighted Average Interest Rate	10.02%	10.04%
One Florida line of credit - SP3 \| Line of Credit
Debt Instrument [Line Items]
Principal balance	$ 29,850	$ 375
Unamortized deferred financing costs	(97)	(118)
Net carrying amount	$ 29,753	$ 257
Weighted Average Interest Rate	9.50%	9.50%
2024 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 38,250	$ 38,250
Unamortized deferred financing costs	(72)	(126)
Net carrying amount	$ 38,178	$ 38,124
Weighted Average Interest Rate	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	(349)	(437)
Net carrying amount	$ 29,651	$ 29,563
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	(436)	(567)
Net carrying amount	$ 49,564	$ 49,433
Weighted Average Interest Rate	8.125%	8.125%
2026 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 115,000	$ 115,000
Unamortized deferred financing costs	(1,257)	(1,436)
Net carrying amount	$ 113,743	$ 113,564
Weighted Average Interest Rate	5.50%	5.50%
2028 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 40,000	$ 40,000
Unamortized deferred financing costs	(1,535)	(1,622)
Net carrying amount	$ 38,465	$ 38,378
Weighted Average Interest Rate	8.00%	8.00%
Securitization Trusts \| Secured Debt
Debt Instrument [Line Items]
Principal balance	$ 273,269	$ 296,223
Unamortized deferred financing costs	(3,789)	(4,111)
Net carrying amount	$ 269,480	$ 292,112
Weighted Average Interest Rate	7.85%	7.84%

BUSINESS COMBINATIONS - Purchase Price (Details) - USD ($) $ in Thousands	Jan. 06, 2023	Mar. 31, 2024	Dec. 31, 2023
Fair value of assets acquired:
Goodwill		$ 25,885	$ 25,885
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

BENEFIT PLANS (Tables)

3 Months Ended

Mar. 31, 2024

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
Three months ended March 31, 2024	(45)	—
Total net restricted stock (granted)/forfeited	(127)	(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 from inception through March 31, 2024:


	Period Ended March, 31 2024		Year Ended December 31, 2023
	Offering Period 2		Offering Period 1
Commencement date	10/1/2023		10/1/2023
End date	3/15/2024		12/15/2023
Shares purchased	5		4
Weighted average share price	$	9.83	$	13.05
Total purchased	$	51	$	51

BORROWINGS - Fair Value of Debt (Details) $ in Thousands	Mar. 31, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($) $ / shares
Debt Instrument [Line Items]
Borrowings	$ 662,304	$ 641,794
2028 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 40,240	$ 40,070
2028 Notes \| Medium-term Notes \| Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) \| $ / shares	25.15	25.04
2026 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 111,872	$ 109,250
2026 Notes \| Medium-term Notes \| Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) \| $ / shares	24.32	23.75
2024 Notes \| Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 38,464	$ 38,235
2024 Notes \| Medium-term Notes \| Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) \| $ / shares	25.14	24.99

- 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

LOANS - Held-for-Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	$ 187,104	$ 118,867
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	59,021	55,829
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	859	778
Loans held for sale, at fair value	187,104	118,867
Loans held for sale, at LCM	59,880	56,607
SBA 504 First Lien
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	83,571	66,387
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	39,381	38,787
SBA 504 Second Lien
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	28,102	20,757
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	6,850	5,741
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	261	262
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	3,181	64
SBA 7(a) Partials
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	192	104
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	9,609	11,237
ALP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	74,978	31,357
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	$ 0	$ 0

STOCK BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2024

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
Three months ended March 31, 2024	(45)	—
Total net restricted stock (granted)/forfeited	(127)	(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 from inception through March 31, 2024:


	Period Ended March, 31 2024		Year Ended December 31, 2023
	Offering Period 2		Offering Period 1
Commencement date	10/1/2023		10/1/2023
End date	3/15/2024		12/15/2023
Shares purchased	5		4
Weighted average share price	$	9.83	$	13.05
Total purchased	$	51	$	51

Investment company, changes in net assets

During the three months ended March 31, 2024 and 2023, additional shares were issued related to dividends on unvested shares of restricted stock granted as follows:

Three Months Ended March 31, 2024

Three Months Ended March 31, 2023

# of Shares

$ of Shares

# of Shares

$ of Shares

Dividends on Unvested Shares of Restricted Stock Grants

$71

$60

INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Investment holdings, schedule of investments

Investments consisted of the following at:


	March 31, 2024				December 31, 2023
	Cost		Fair Value		Cost		Fair Value
Debt securities available-for-sale, at fair value	$	28,319	$	28,127	$	32,372	$	32,171
Federal Home Loan Bank and Federal Reserve Bank stock	3,773		3,773		3,635		3,635
Non-controlled investments	772		728		796		728
Joint ventures, at fair value	45,108		48,247		37,864		40,859
Total investments	$	77,972	$	80,875	$	74,667	$	77,393

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
	March 31, 2024				December 31, 2023
	Cost		Fair Value		Cost		Fair Value
Food Services and Drinking Places	$	41,147	$	41,361	$	43,779	$	43,955
Specialty Trade Contractors	39,276		34,659		40,193		35,451
Professional, Scientific, and Technical Services	34,584		33,734		36,248		35,377
Ambulatory Health Care Services	26,757		25,373		27,291		26,633
Amusement, Gambling, and Recreation Industries	18,923		20,281		21,289		22,839
Administrative and Support Services	20,521		18,847		21,319		19,521
Merchant Wholesalers, Durable Goods	19,815		18,476		21,873		21,152
Repair and Maintenance	15,513		16,584		15,886		17,005
Merchant Wholesalers, Nondurable Goods	13,841		13,662		15,623		15,573
Personal and Laundry Services	12,612		13,320		12,867		13,584
Fabricated Metal Product Manufacturing	11,825		12,608		12,439		13,205
Truck Transportation	15,138		11,156		15,590		12,113
Construction of Buildings	9,715		9,810		9,868		9,890
Accommodation	9,213		9,668		9,259		10,162
Social Assistance	8,730		9,547		8,857		9,721
Food Manufacturing	10,160		8,573		10,233		8,714
Motor Vehicle and Parts Dealers	8,055		8,358		9,046		9,382
Transportation Equipment Manufacturing	7,619		7,974		7,687		7,999
Support Activities for Mining	7,942		7,290		8,455		7,754
Food and Beverage Stores	6,750		7,058		7,026		7,306
Rental and Leasing Services	6,657		7,054		6,764		7,178
Nursing and Residential Care Facilities	6,126		6,581		6,182		6,709
Building Material and Garden Equipment and Supplies Dealers	5,876		5,750		7,384		6,781
Educational Services	5,148		5,356		5,368		5,636
Other	95,638		89,848		102,037		96,161
Total	$	457,581	$	442,928	$	482,563	$	469,801

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 (Unaudited)	March 31, 2024		December 31, 2023
Cash	$	677	$	612
Restricted cash	4,145		3,298
Investments in loans, at fair value (amortized cost of $62,158 and $70,083, respectively)	62,158		70,083
Other Assets	1,612		1,614
Total assets	68,592		75,607

Securitization notes payable	$	33,799	$	38,805
Other liabilities	885		905
Total liabilities	34,684		39,710

Net assets	33,908		35,897
Total liabilities and net assets	$	68,592	$	75,607


Selected Statements of Operations Information (Unaudited)	Three Months Ended March 31,
	2024		2023
Interest and other income	$	1,373	$	1,644
Total expenses	472		659
Net investment income	901		985
Unrealized (depreciation) appreciation on investments	(2,131)		712
Net (decrease) increase in net assets resulting from operations	$	(1,230)	$	1,697

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


Selected Statement of Assets and Liabilities Information (Unaudited)	March 31, 2024		December 31, 2023
Cash	$	1,728	$	4,401
Restricted cash	4,356		1,183
Investments in loans, at fair value (amortized cost of $93,945 and $66,689, respectively)	93,945		66,689
Other assets	1,542		1,374
Total assets	$	101,571	$	73,647

Bank notes payable	$	40,986	$	29,636


Other liabilities	591		1,092
Total liabilities	41,577		30,728

Net assets	59,994		42,919
Total net assets	$	101,571	$	73,647


Selected Statements of Operations Information (Unaudited)	Three Months Ended March 31,
	2024		2023
Interest and other income	$	2,343	$	615
Total expenses	1,464		550
Net investment income	879		65
Unrealized appreciation (depreciation) on investments	872		(513)
Realized loss on investments	—		(16)
Realized gain on derivative transactions	265		275
Unrealized gain (loss) on derivative transactions	574		(436)
Net increase (decrease) in net assets resulting from operations	$	2,590	$	(625)

Investments in and advances to affiliates

Transactions related to our joint ventures and non-controlled investments for the three months ended March 31, 2024 and 2023 were as follows:


Company	Fair Value at December 31, 2023		Purchases (Cost)		Principal Received		Return of Investment		Net Realized Gains/(Losses)		Net Unrealized Gains/(Losses)		Fair Value at March 31, 2024		Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC	$	19,400	$	—	$	—	$	—	$	—	$	(1,150)	$	18,250	$	379
Newtek TSO II Conventional Credit Partners, LP	21,459		7,243		—		—		—		1,295		29,997		—
Total Joint Ventures	$	40,859	$	7,243	$	—	$	—	$	—	$	145	$	48,247	$	379

Non-Control Investments
EMCAP Loan Holdings, LLC	$	368	$	—	$	—	$	(24)	$	—	$	24	$	368	$	7
Biller Genie Software, LLC	360		—		—		—		—		—		360		—
Total Non-Control Investments	$	728	$	—	$	—	$	(24)	$	—	$	24	$	728	$	7

Total Affiliate Investments	$	41,587	$	7,243	$	—	$	(24)	$	—	$	169	$	48,975	$	386


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 March 31, 2023		Dividend Income
Joint Ventures
Newtek Conventional Lending, LLC	$	16,587	$	—	$	—	$	—	$	—	$	2,313	$	18,900	$	484
Newtek TSO II Conventional Credit Partners, LP	6,435		—		—		—		—		(313)		6,122		—
Total Joint Ventures	$	23,022	$	—	$	—	$	—	$	—	$	2,000	$	25,022	$	484

Non-Control Investments
EMCAP Loan Holdings, LLC	$	1,000	$	—	$	—	$	—	$	—	$	—	$	1,000	$	20
Biller Genie Software, LLC	360		—		—		—		—		—		360		—
Total Non-Control Investments	$	1,360	$	—	$	—	$	—	$	—	$	—	$	1,360	$	20

Total Affiliate Investments	$	24,382	$	—	$	—	$	—	$	—	$	2,000	$	26,382	$	504

The following table summarizes the amounts due to and due from affiliated companies as of March 31, 2024 and December 31, 2023:


	March 31, 2024		December 31, 2023
Due to affiliated companies1	$	172	$	158
Due from affiliated companies2	53		7
Total due to/due from affiliated companies	$	119	$	151

1 Included within Other Assets

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

The following table summarizes the income earned from our joint ventures for the periods ended March 31, 2024 and 2023:


	Three Months Ended March 31,
	2024		2023
Servicing income	$	348	$	252


	March 31, 2024		December 31, 2023
FDIC insured deposits	$	4,316	$	4,388
Non-FDIC insured deposits	1,178		1,167
Total deposits from related parties and their affiliated companies	$	5,494	$	5,555

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 March 31, 2024 and December 31, 2023:


	March 31, 2024								December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. Treasury notes	$	25,319	$	—	$	87	$	25,232	$	29,372	$	—	$	67	$	29,305
Government agency debentures	3,000		—		105		2,895		3,000		—		134		2,866
Total available for sale securities	$	28,319	$	—	$	192	$	28,127	$	32,372	$	—	$	201	$	32,171

Debt securities, unrealized losses


	March 31, 2024
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Holdings		Fair Value		Unrealized Losses
U.S. Treasury notes	$	25,232	$	(87)	$	—	$	—	1		$	25,232	$	(87)
Government agency debentures	2,895		(105)		—		—		2		2,895		(105)
Total	$	28,127	$	(192)	$	—	$	—	$	3	$	28,127	$	(192)


	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	$	29,305	$	67	$	—	$	—	1		$	29,305	$	67
Government agency debentures	2,866		134		—		—		2		2,867		134
Total	$	32,171	$	201	$	—	$	—	$	3	$	32,172	$	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:


	March 31, 2024				At December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing within 1 year	$	16,713	$	16,588	$	32,372	$	32,171
After 1 year through 5 years	11,606		11,539		—		—


Total available for sale securities	$	28,319	$	28,127	$	32,372	$	32,171

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


	March 31, 2024		December 31, 2023
Pledged for deposits	$	—	$	—
Pledged for borrowings and other	28,127		30,730
Total available for sale securities pledged	$	28,127	$	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

SIGNIFICANT ACCOUNTING POLICIES - Cash and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Cash and due from banks	$ 12,295	$ 15,398	$ 29,103
Restricted cash	35,759	30,919	73,421
Interest bearing deposits in banks	115,152	137,689	94,620
Total cash and cash equivalents	$ 163,206	$ 184,006	$ 197,144	$ 125,606

- 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

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 12,295	$ 15,398
Restricted cash	35,759	30,919
Interest bearing deposits in banks	115,152	137,689
Total cash and cash equivalents	163,206	184,006
Debt securities available-for-sale, at fair value	28,127	32,171
Loans held for sale, at fair value	187,104	118,867
Loans held for sale, at LCM	59,880	56,607
Loans held for investment, at fair value	442,928	469,801
Loans held for investment, at amortized cost, net of deferred fees and costs	397,625	336,305
Allowance for credit losses	(16,126)	(12,574)
Loans held for investment, at amortized cost, net	381,499	323,731
Federal Home Loan Bank and Federal Reserve Bank stock	3,773	3,635
Settlement receivable	56,890	62,230
Goodwill and intangibles	29,944	30,120
Right of use assets	5,193	5,701
Deferred tax asset, net	2,717	5,230
Servicing assets	41,172	39,725
Other assets	58,169	56,102
Total assets	1,509,577	1,429,513
Deposits:
Noninterest-bearing	5,466	10,053
Interest-bearing	507,476	453,452
Total deposits	512,942	463,505
Borrowings	662,488	644,122
Dividends payable	5,038	4,792
Lease liabilities	6,344	6,952
Due to participants	26,647	23,796
Accounts payable, accrued expenses and other liabilities	41,986	37,300
Total liabilities	1,255,445	1,180,467
Shareholders' Equity:
Preferred stock (par value $0.02 per share; authorized 20 shares, 20 shares issued and outstanding)	19,738	19,738
Common stock (par value $0.02 per share; authorized 199,980 shares, 24,715 and 24,680 shares issued and outstanding, respectively)	493	492
Additional paid-in capital	201,431	200,913
Retained earnings	32,611	28,051
Accumulated other comprehensive loss, net of income taxes	(141)	(148)
Total shareholders' equity	254,132	249,046
Total liabilities and shareholders' equity	1,509,577	1,429,513
Joint Ventures
ASSETS
Investments	48,247	40,859
Non-Control Investments
ASSETS
Investments	$ 728	$ 728