Financial Data and Key Metrics Changes - The company reported total investment income of $23.1 million for Q4 2022, a 6.9% decrease from $24.8 million in Q4 2021, primarily due to a drop in dividends from portfolio companies [90] - The net investment loss for Q4 2022 was $5.4 million or $0.22 per share, compared to a net investment income of $1.6 million or $0.7 per share in Q4 2021 [101] - The company anticipates total assets to grow from $1.62 billion at the end of 2022 to $1.7 billion by the end of 2023 and $2.1 billion by the end of 2024 [43][45] Business Line Data and Key Metrics Changes - The company funded a record $775 million in SBA 7(a) loans in 2022, up from $362 million, with a forecast of $885 million for 2023 [65] - Servicing income increased by 27% to $3.8 million in Q4 2022 compared to $3 million in the same quarter in 2021 [58] - The non-conforming C&I loan business is expected to grow significantly, with projections of increasing from $600 million in 2023 to about $1 billion in 2024 [1][16] Market Data and Key Metrics Changes - The company noted a favorable trend in non-accruals as a percentage of loans at fair value, indicating improved credit quality [49] - The company has tightened underwriting criteria, resulting in higher FICO and SBSS scores for new originations, suggesting a focus on better-quality borrowers [50] Company Strategy and Development Direction - The company has transitioned to a financial holding company, allowing it to offer a broader range of financial solutions and reduce reliance on equity sales [12][14] - The strategy includes diversifying the loan portfolio with conforming C&I and CRE loans, which are expected to enhance stability and profitability [34] - The company aims to leverage lower-cost deposits to improve net interest margins and overall profitability [42][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to meet growth targets despite a slowing economy, citing strong liquidity and government support for customers [3][25] - The company anticipates a return on average assets and return on tangible common equity to be robust, with projections of 3.28% to 3.75% for 2023 and 2024 [78] - Management highlighted the importance of maintaining a consistent dividend, projecting it to be stable for about a year before reassessing based on earnings performance [38] Other Important Information - The company declared a dividend of $2.75 for 2022 and aims to maintain a top quartile dividend yield of around 4% [67][98] - The company has received a BBB+ rating from Egan-Jones for its net debt, indicating strong creditworthiness [74] Q&A Session Summary Question: How comfortable is the company with its growth targets, especially in non-conforming C&I? - Management indicated comfort with the targets, acknowledging the challenges of projecting in a volatile market but expressing confidence based on historical performance [2] Question: What is the update on the PLP status and its implications? - Management noted that the PLP status is crucial for financing 7(a) and 504 loans, and they are optimistic about achieving this status [6][34] Question: How does the company view the current economic environment? - Management sees a slowing economy but not a severe downturn, emphasizing strong liquidity and support from government programs for their customer base [3][25] Question: What are the expectations for the joint venture investments? - Management expects a consolidated net return of 20% to 30% from joint venture investments, highlighting the potential for significant returns [115][116] Question: How relevant is the Q4 report to future performance? - Management stated that while the Q4 report reflects past performance, the transition to a financial holding company marks a new beginning with different operational metrics [126][127]

Summary of Newtek Business Services Corp. Investor Conference Call Company Overview - **Company**: Newtek Business Services Corp. (NASDAQ: NEWT) - **Event**: Investor Conference Call on December 14, 2022 - **Participants**: Barry Sloane (CEO), Nicholas Leger (CFO), John McCaffery (SVP of Accounting and Finance) [2][5] Key Points Discussed Acquisition of National Bank of New York City - Newtek is in the process of acquiring National Bank of New York City for **$20 million**, approximately **1x tangible book value** [10][11] - Anticipated close date for the acquisition is between **January 3 and January 23, 2023** [10] - The bank has a clean portfolio with only **one nonperforming loan** of over **$3 million** and approximately **$120 million to $130 million** in deposits [11][12] Transformation into a Financial Holding Company - Newtek is transitioning from a Business Development Corporation (BDC) to a financial holding company under the **1933 Act** [6][39] - The holding company will have total assets of approximately **$1.1 billion** with a **TCE ratio** of **18% to 22%** and a **CET1 ratio** of **19% to 21%** [13][14] - The bank will start with around **$250 million** in total assets, expected to grow to **$735 million** in 12 months and **$1.5 billion** in 36 months [24][25] Financial Projections and Performance Targets - Projected **return on average assets (ROAA)** for 2023 is **3% to 4%**, and **return on tangible common equity (ROATCE)** is expected to be between **18% and 22%** [22] - Earnings per share (EPS) targets are projected at **$1.70 to $2.00** for the first year and **$2.80 to $3.20** for the second year [24] - The bank is expected to contribute about **50% of total revenues** once operational [62] Deposit Strategy - Newtek plans to leverage its existing customer base, including **15,000 merchant processing accounts** and **800 payroll clients**, to gather deposits [22][23][55] - Initial deposit gathering will likely involve more expensive methods, transitioning to lower-cost deposits over time [53][54] - The company has a significant opportunity to attract deposits due to its existing relationships and services [55] The Newtek Advantage - Newtek aims to provide a comprehensive suite of services, termed "The Newtek Advantage," which includes personalized banking relationships, analytics, and integrated solutions for small businesses [30][31] - The platform will allow clients to manage various business functions, including payroll and payment processing, in one place [32][33] Management and Operational Readiness - The management team is experienced, with key personnel having extensive backgrounds in banking and finance [35][36] - Newtek is prepared to launch operations with a focus on risk management and compliance [38][39] Market Position and Future Outlook - Newtek believes that its unique structure and diversified revenue streams will allow it to compete effectively in the banking sector [40][41] - The transition to a financial holding company is expected to enhance growth potential and reduce the cost of capital [45][46] Conclusion - Newtek is optimistic about its future as it transitions into a financial holding company and prepares to operate the newly acquired bank, with a strong focus on leveraging existing relationships and technology to drive growth and profitability [49][50]

Newtek Business Services Corp. (NASDAQ:NEWT) Q3 2022 Earnings Conference Call November 8, 2022 8:30 AM ET Company Participants Barry Sloane - Chairman, President and Chief Executive Officer Nicholas Leger - Executive Vice President and Chief Accounting Officer John McCaffery - SVP of Accounting and Finance Conference Call Participants Jim Collins - Excelsior Capital Partners Paul Johnson - Keefe, Bruyette & Woods, Inc. Operator Good day and thank you for standing by, and welcome to the Newtek Business Servi ...

| --- | --- | --- | |-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------| | | | | | | Newtek Business Services Corp. NASDAQ: NEWT Third Quarter 2022 Financial Results Conference Call November 8, 2022 8:30 am ET | | | | Hosted by: | | | | Barry Sloane, CEO & President and Nicholas Leger, EVP & CAO Investor Relations Jayne Cavuoto Director of Investor Relations jcavuoto@newtekone.co ...

Newtek Business Services Corp. (NASDAQ:NEWT) Q2 2022 Earnings Conference Call August 4, 2022 8:30 AM ET Company Participants Barry Sloane - Chairman, President and Chief Executive Officer Nicholas Leger - Executive Vice President and Chief Accounting Officer Conference Call Participants Paul Johnson - Keefe, Bruyette & Woods, Inc. Adam Morton - RBC Capital Markets, LLC Operator Good day. Thank you for standing by. Welcome to the Newtek Business Services Corporation Second Quarter 2022 Earnings Conference Ca ...

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Newtek Business Services Corp. (NASDAQ:NEWT) Q1 2022 Earnings Conference Call May 5, 2022 8:30 AM ET Company Participants Jayne Cavuoto - Director of Investor Relations Barry Sloane - President, Founder, and Chief Executive Officer Nick Leger - Chief Accounting Officer Conference Call Participants Paul Johnson - KBW Jayne Cavuoto Sure. Good morning, everybody. My name is Jayne Cavuoto. And I am the Director of Investor Relations here at Newtek Business Services Corp. Today, I would like to thank you all for ...

| --- | --- | --- | |-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------| | | | | | | Newtek Business Services Corp. NASDAQ: NEWT First Quarter 2022 Financial Results Conference Call May 5, 2022 8:30 am ET Hosted by: | | | | Barry Sloane, CEO & President and Nicholas Leger, EVP & CAO Investor Relations Jayne Cavuoto Director of Investor Relations jcavuoto@newtekone.com (212) 273-8 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission file number: 814-01035 NEWTEK BUSINESS SERVICES CORP. (Exact name of registrant as specified in its charter) Maryland 46-3755188 (State or ...

Newtek Business Services Corp. (NASDAQ:NEWT) Q4 2021 Earnings Conference Call February 24, 2022 8:30 AM ET Company Participants Barry Sloane - President, Founder & Chief Executive Officer Nick Leger - Chief Accounting Officer Conference Call Participants Paul Johnson - KBW Mickey Schleien - Ladenburg Matt Jaden - Raymond James Operator Welcome to the Newtek Business Services Corp. Full Year 2021 Earnings Conference Call. My name is Hilda and I will be your operator for today. At this time, all participants ...