Newtek Bank, N.A. Reaches Over $1.0 Billion in Deposits

Core Insights - NewtekOne, Inc. reported significant growth in deposits at its banking subsidiary, Newtek Bank, with total deposits reaching $1.03 billion as of December 31, 2024, marking a 97$884 million since its acquisition in January 2023 [2][3] Deposit Metrics - Total deposits at Newtek Bank as of December 31, 2024, were $1.03 billion, with insured deposits comprising approximately 78$216 million, reflecting a 96% growth compared to the same period in 2023 [2] - The bank added 950 new business checking accounts in the fourth quarter of 2024, bringing the total number of accounts to approximately 15,000, up from about 1,400 at the time of acquisition [2][3] Operational Efficiency - Newtek Bank achieved an industry-leading efficiency ratio below 40% for the quarter ended September 30, 2024, indicating successful streamlining of the deposit-taking process [1] - The bank's digital account opening process has been pivotal in acquiring new accounts, supported by U.S.-based representatives available 24/7 [3] Strategic Focus - The company aims to grow its commercial deposit franchise, which is more transactional and lower in cost, while integrating these accounts into its lending and payment processing platforms [1][3] - Newtek Bank plans to leverage its technological advantages and competitive product offerings to continue increasing deposits from affiliates and referral partners in 2025 [3] Business Model Transformation - Since acquiring Newtek Bank, the company has transformed it from a traditional community bank into a technology-enabled bank that acquires deposits digitally [1][3] - The bank's operational model now includes a fully developed back-office operation to support anticipated growth and compliance [3] Future Outlook - The company expresses optimism about its growth prospects moving into 2025, emphasizing the importance of growing transaction-based deposits to reduce funding costs and enhance deposit duration [3]