Core Viewpoint - NewtekOne, Inc. has completed a transaction with Patriot Financial Partners, resulting in the issuance of 2,307,692 shares of common stock in exchange for 20,000 shares of convertible preferred stock and $10 million in cash, which is expected to enhance the company's capital structure and tangible book value per share [1][2][3]. Group 1: Transaction Details - The transaction involved the exchange of 20,000 shares of Series A Preferred Stock and $10 million in cash for 2,307,692 shares of common stock [1]. - Patriot relinquished the right to convert the preferred stock into 950,800 shares of common stock as part of the deal [1]. - The common shares were issued in a private placement under Section 4(a)(2) of the Securities Act of 1933, with a two-year transfer restriction [1]. Group 2: Capital Impact - The transaction is projected to increase the company's common equity tier one capital (CET1 capital) and tier one capital by $30 million [2]. - Pro forma as of June 30, 2025, CET1 capital will rise from $256 million to $286 million due to this transaction [2]. - When combined with $48.357 million from a previous offering, tier one capital will increase from $256 million to $335 million, and tangible book value per common share will reach approximately $10.74 [2]. Group 3: Management Commentary - Barry Sloane, Chairman and CEO of NewtekOne, expressed satisfaction with the transaction, highlighting the confidence shown by Patriot in the company's strategy and management [3]. - Kirk Wycoff, Managing Partner of Patriot, emphasized the excitement of converting preferred stock to common equity and the additional investment, reflecting confidence in NewtekOne's operational execution and business strategy [3]. Group 4: Company Overview - NewtekOne is a financial holding company providing a range of business and financial solutions to independent business owners across the U.S. since 1999 [5]. - The company's offerings include banking, business lending, electronic payment processing, and technology solutions [6].