Newtek Business Services Corp. (“Newtek” or the “Company”) (Nasdaq:
NEWT), an internally managed business development company (“BDC”),
announced today its financial and operating results for the three
and nine months ended September 30, 2021.
Third Quarter 2021 Financial Highlights
- Total investment income of $12.4 million for the three months
ended September 30, 2021; a decrease of 16.7% compared to total
investment income of $14.9 million for the three months ended
September 30, 2020.
- Net investment income/(loss) of $(6.7) million, or $(0.30) per
share, for the three months ended September 30, 2021; a decrease of
$(0.38) per share compared to net investment income of $1.7
million, or $0.08 per share, for the three months ended September
30, 2020.
- Adjusted net investment income (“ANII”)1 of $12.6 million, or
$0.56 per share, for the three months ended September 30, 2021; an
increase of 1300.0%, on a per share basis, compared to ANII of $0.9
million, or $0.04 per share, for the three months ended September
30, 2020.
- Debt-to-equity ratio of 1.37x at September 30, 2021; proforma
debt-to-equity ratio was 1.24x after taking into account the sales
of government-guaranteed portions of SBA 7(a) loans prior to
September 30, 2021, which sales settled subsequent to the balance
sheet date.
- Total investment portfolio increased by 11.7% to
$712.5 million at September 30, 2021, from $637.6 million
at September 30, 2020.
- Net asset value (“NAV”) of $366.0 million, or $16.23 per
share, at September 30, 2021; an increase of 5.0%, on a per
share basis, compared to NAV of $15.45 per share at December 31,
2020.
- On August 2, 2021, the Company announced that it entered into
an agreement to acquire National Bank of New York City (“NBNYC”), a
nationally chartered bank, subject to certain regulatory and
shareholder approvals.
Nine Months Ended September 30, 2021 Financial
Highlights
- Total investment income of
$83.7 million for the nine months ended September 30, 2021; an
increase of 8.1% over total investment income of $77.4 million
for the nine months ended September 30, 2020.
- Net investment income of
$24.0 million, or $1.07 per share, for the nine months ended
September 30, 2021, which represents a 28.2% decrease, on a per
share basis, compared to net investment income of $31.1 million, or
$1.49 per share, for the nine months ended September 30, 2020.
- ANII of $63.1 million, or $2.81 per share, for the nine
months ended September 30, 2021; an increase of 74.5%, on a per
share basis, compared to ANII of $33.8 million, or $1.61 per
share, for the nine months ended September 30, 2020.
2021 Dividend Payments & 2022
Forecast
- On October 20, 2021, the Company's board of directors
declared a fourth quarter 2021 cash dividend of $1.05 per share
payable on December 30, 2021 to shareholders of record as of
December 20, 2021.
- The payment of the fourth quarter 2021 dividend would represent
a 123.4% increase over the fourth quarter 2020 dividend of $0.47
per share.
- With the payment of the fourth quarter 2021 dividend, the
Company will have paid $3.15 per share in dividends in 2021, which
would represent a 53.7% increase over dividends paid in 2020.
- The Company forecasts a first quarter 2022 dividend of $0.652
per share.
- On September 30, 2021, the Company paid a third quarter
2021 cash dividend of $0.90 per share to shareholders of record as
of September 20, 2021, which represented a 55.2% increase over
the third quarter 2020 dividend of $0.58 per share.
Lending Highlights
- Newtek Small Business Finance, LLC (“NSBF”) funded $163.9
million of SBA 7(a) loans during the three months ended September
30, 2021, a 1160.8% increase over the $13.0 million of SBA 7(a)
loans funded for the three months ended September 30, 2020, and an
increase of 43.4% over the $114.3 million of SBA 7(a) loans for the
three months ended September 30, 2019.
- NSBF funded $362.6 million of SBA 7(a) loans during the nine
months ended September 30, 2021, an increase of 336.3% over $83.1
million of SBA 7(a) loans funded for the nine months ended
September 30, 2020, and an increase of 8.3% over $334.7 million of
SBA 7(a) loans during the nine months ended September 30,
2019.
- NSBF increased the lower end of its full year 2021 SBA 7(a)
loan funding forecast range, and updated the forecast range to
between $560 million to $600 million.
- Newtek Business Lending ("NBL"), the Company's wholly owned
portfolio company, funded and/or closed $100.1 million SBA 504
loans during the nine months ended September 30, 2021, compared to
$21.8 million SBA 504 loans during the nine months ended September
30, 2020.
- NBL forecasts closing and/or funding approximately $125 million
to $150 million SBA 504 loans for the full year 2021, which would
represent an increase over $87.2 million of closed and/or funded
SBA 504 loans in 2020, which would represent an 57.7% increase over
the midpoint of the 2021 forecasted range.
- NSBF funded a total of $1.9 billion PPP loans from 2020 through
the nine months ended September 30, 2021.
Barry Sloane, Chairman, President and Chief Executive Officer
said, “We are extremely pleased to report our third quarter 2021
financial results. We believe we are emerging from the pandemic
with momentum from our core lending operations due to technological
efficiencies in lending and a robust pipeline of opportunities
brought to us by our NewTracker(R) referral system. We are
encouraged by the upward trajectory of our business model, and we
look forward to further progress in upcoming quarters. We want to
note that we do not believe that the year-over-year comparisons of
loan origination volumes of 2021 to 2020 are as meaningful due to
the pandemic effects on our lending platforms in 2020. As a result,
we are providing the loan origination comparisons between 2021 and
2019, which was a pandemic-free business environment, and which we
feel provides a more meaningful depiction of the growth of our core
lending platform during this period. During tomorrow's conference
call we will discuss the growth in our SBA 7(a) lending pipeline,
third quarter 2021 SBA 7(a) loan fundings, and loans approved
pending closing in the month of October 2021, as well as fourth
quarter 2021 projected loan fundings. In addition, we plan to
discuss our ability to project growth and higher-trending results
in 2022. Our conference call presentation will be available this
afternoon in advance of our call and can be found through the
following link Newtek Third Quarter 2021 Earnings Presentation. We
recently declared our fourth quarter 2021 dividend of $1.05 per
share payable on December 30, 2021. With the payment of the fourth
quarter 2021 dividend, the Company will have paid $3.15 per share
in dividends in 2021, which would represent a 53.7% increase over
dividends paid in 2020. Additionally, we are reconfirming our
forecasted 2021 full year 2021 NII of $0.80 per share and ANII of
$3.40 per share. We believe these metrics underscore our success in
2021.”
Mr. Sloane continued, “We believe that our level of SBA 7(a)
loan fundings of $163.9 million in the third quarter of 2021,
compared to $13.0 million and $114.3 million of SBA 7(a) loan
fundings, in the third quarters of 2020 and 2019, respectively,
demonstrates that one of our core lending products and programs has
strong momentum going forward. The 43.4% increase in SBA 7(a) loan
fundings in the third quarter of 2021, compared to the third
quarter of 2019, demonstrates our efforts to rebuild our SBA 7(a)
loan pipeline from 2020 levels, which were materially impacted by
the pandemic and resulting national shutdowns. In addition, we are
comfortable with the upper portion of our previously forecasted
range for 2021 SBA 7(a) loan fundings and have increased the lower
band, and currently expect to fund between $560 million and $600
million of SBA 7(a) loans in 2021. In addition, NBL is forecasting
a record amount of SBA 504 fundings and/or closings of between $125
and $150 million in 2021. For the nine months ended September 30,
2021, NBL has closed $100.1 million of SBA 504 loans, compared to
$21.8 million and $26.3 million of SBA 504 loans during the same
periods in 2020 and 2019, respectively. Our non-conforming
conventional loan program has experienced a slow start, however we
remain confident in the joint venture business model of originating
non-conforming commercial loans and issuing securitized financing
as part of our business plan. The Company will address its options
to refinance more expensive debt and lower our cost of
capital.during tomorrow's conference call.”
Mr. Sloane concluded, “Our portfolio companies in payment
processing and technology solutions continue to track well,
delivering non-credit related reoccurring income streams. We
forecast that our payment processing and technology solutions
portfolio companies will generate previously forecasted 2021
EBITDA. We look forward to a more detailed discussion of our
financial results and expectations during our third quarter 2021
earnings conference call scheduled for tomorrow morning at 8:30 am
EST.”
Third Quarter 2021 Conference Call and
Webcast
A conference call to discuss third quarter 2021 results will be
hosted by Barry Sloane, President, Chairman and Chief Executive
Officer, and Nicholas Leger, Chief Accounting Officer, tomorrow,
Tuesday, November 9, 2021 at 8:30 a.m. ET. The live conference call
can be accessed by dialing (877) 303-6993 or (760) 666-3611.
In addition, a live audio webcast of the call with the
corresponding presentation will be available in the ‘Events &
Presentations’ section of the Investor Relations portion of
Newtek’s website at
http://investor.newtekbusinessservices.com/events-and-presentations.
A replay of the webcast with the corresponding presentation will be
available on Newtek’s website shortly following the live
presentation and will remain available for 90 days.
1Use of Non-GAAP Financial Measures -
Newtek Business Services Corp. and Subsidiaries
In evaluating its business, Newtek considers and uses ANII as a
measure of its operating performance. ANII includes short-term
capital gains from the sale of the guaranteed portions of SBA 7(a)
loans and conventional loans, and beginning in 2016, capital gain
distributions from controlled portfolio companies, which are
reoccurring events. The Company defines ANII as Net investment
income (loss) plus Net realized gains recognized from the sale of
guaranteed portions of SBA 7(a) loan investments, less realized
losses on non-affiliate investments, plus the net realized gains on
controlled investments, plus or minus the change in fair value of
contingent consideration liabilities, plus loss on extinguishment
of debt, plus or minus an adjustment for gains or losses on
derivative transactions.
We do not designate derivatives as hedges to qualify for hedge
accounting and therefore any net payments under, or fluctuations in
the fair value of, our derivatives are recognized currently in our
GAAP income statement. However, fluctuations in the fair value of
the related assets are not included in our income statement. We
consider the gain or loss on our hedging positions related to
assets that we still own as of the reporting date to be “open
hedging positions.” While recognized for GAAP purposes, we exclude
the results on the hedges from ANII until the related asset is sold
and/or the hedge position is “closed,” whereupon they would then be
included in ANII in that period. These are reflected as “Adjustment
for realized gain/(loss) on derivatives” for purposes of computing
ANII for the period. We believe that excluding these specifically
identified gains and losses associated with the open hedging
positions adjusts for timing differences between when we recognize
changes in the fair values of our assets and changes in the fair
value of the derivatives used to hedge such assets.
The term ANII is not defined under U.S. generally accepted
accounting principles, or U.S. GAAP, and is not a measure of
operating income, operating performance or liquidity presented in
accordance with U.S. GAAP. ANII has limitations as an analytical
tool and, when assessing the Company’s operating performance,
investors should not consider ANII in isolation, or as a substitute
for net investment income, or other consolidated income statement
data prepared in accordance with U.S. GAAP. Among other
things, ANII does not reflect the Company’s actual cash
expenditures. Other companies may calculate similar measures
differently than Newtek, limiting their usefulness as comparative
tools. The Company compensates for these limitations by
relying primarily on its GAAP results supplemented by ANII.
2 Note Regarding Dividend
PaymentsAmount and timing of dividends, if any, remain
subject to the discretion of the Company's Board of Directors. The
Company's Board of Directors expects to maintain a dividend policy
with the objective of making quarterly distributions in an amount
that approximates 90 - 100% of the Company's annual taxable income.
The determination of the tax attributes of the Company's
distributions is made annually as of the end of the Company's
fiscal year based upon its taxable income for the full year and
distributions paid for the full year.
Note Regarding PPP IncomeThe Company's
financial results for 2020 and the nine months ended September 30,
2021, includes income generated from NSBF's origination of loans
under the Paycheck Protection Program (PPP), which ended during the
third quarter of 2021, and should not be viewed as recurring.
Newtek Business Services Corp., Your Business Solutions
Company®, is an internally managed BDC, which along with its
controlled portfolio companies, provides a wide range of business
and financial solutions under the Newtek® brand to the small- and
medium-sized business (“SMB”) market. Since 1999, Newtek has
provided state-of-the-art, cost-efficient products and services and
efficient business strategies to SMB relationships across all 50
states to help them grow their sales, control their expenses and
reduce their risk.
Newtek’s and its portfolio companies’ products and services
include: Business Lending, SBA Lending Solutions, Electronic
Payment Processing, Technology Solutions (Cloud Computing, Data
Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts
Receivable Financing & Inventory Financing, Insurance
Solutions, Web Services, and Payroll and Benefits Solutions.
Newtek® and Your Business Solutions Company®,
are registered trademarks of Newtek Business Services Corp.
Note Regarding Forward Looking
Statements
This press release contains certain
forward-looking statements. Words such as “believes,” “intends,”
“expects,” “projects,” “anticipates,” “forecasts,” “goal” and
“future” or similar expressions are intended to identify
forward-looking statements. All forward-looking statements involve
a number of risks and uncertainties that could cause actual results
to differ materially from the plans, intentions and expectations
reflected in or suggested by the forward-looking statements. Such
risks and uncertainties include, among others, intensified
competition, operating problems and their impact on revenues and
profit margins, anticipated future business strategies and
financial performance, anticipated future number of customers,
business prospects, legislative developments and similar matters.
Risk factors, cautionary statements and other conditions, which
could cause Newtek’s actual results to differ from management’s
current expectations, are contained in Newtek’s filings with the
Securities and Exchange Commission and available through
http://www.sec.gov/. Newtek cautions you that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
or implied in these statements.
SOURCE: Newtek Business Services Corp.
Investor Relations & Public
RelationsContact: Jayne Cavuoto Telephone: (212) 273-8179
/ jcavuoto@newtekone.com
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF ASSETS AND
LIABILITIES(In Thousands, except for Per Share
Data) |
|
|
September 30, 2021 |
|
December 31, 2020 |
ASSETS |
(Unaudited) |
|
|
Investments, at fair value |
|
|
|
SBA unguaranteed non-affiliate investments (cost of $416,652 and
$420,400, respectively; includes $276,186 and $312,649,
respectively, related to securitization trusts) |
$ |
406,581 |
|
|
$ |
407,748 |
|
SBA guaranteed non-affiliate investments (cost of $32,646 and
$16,964, respectively) |
36,041 |
|
|
17,822 |
|
Controlled investments (cost of $160,495 and $138,891,
respectively) |
262,916 |
|
|
239,171 |
|
Non-control investments (cost of $6,400 and $6,447,
respectively) |
6,921 |
|
|
6,447 |
|
Total
investments at fair value |
712,459 |
|
|
671,188 |
|
Cash |
20,193 |
|
|
2,073 |
|
Restricted cash |
182,913 |
|
|
49,352 |
|
Broker
receivable |
60,950 |
|
|
52,730 |
|
Due from
related parties |
5,768 |
|
|
6,112 |
|
Servicing assets, at fair value |
28,899 |
|
|
26,061 |
|
Right of
use assets |
7,611 |
|
|
6,933 |
|
Derivative instruments |
304 |
|
|
— |
|
Other
assets |
24,210 |
|
|
26,530 |
|
Total assets |
$ |
1,043,307 |
|
|
$ |
840,979 |
|
|
|
|
|
LIABILITIES AND NET ASSETS |
|
|
|
Liabilities: |
|
|
|
Bank notes payable |
$ |
114,986 |
|
|
$ |
86,339 |
|
Notes due 2023 (par: $0 and $57,500 as of September 30, 2021 and
December 31, 2020) |
— |
|
|
56,505 |
|
Notes due 2024 (par: $78,250 and $63,250 as of September 30, 2021
and December 31, 2020) |
76,993 |
|
|
61,774 |
|
Notes due 2025 (par: $15,000 and $5,000 as of September 30, 2021
and December 31, 2020) |
14,516 |
|
|
4,735 |
|
Notes due 2026 (par: $115,000 and $0 as of September 30, 2021 and
December 31, 2020) |
111,948 |
|
|
— |
|
Notes payable - Securitization trusts (par: $177,602 and $221,752
as of September 30, 2021 and December 31, 2020) |
174,876 |
|
|
218,339 |
|
Notes payable - related parties |
— |
|
|
24,090 |
|
Due to related parties |
4,242 |
|
|
2,133 |
|
Lease liabilities |
9,410 |
|
|
8,697 |
|
Deferred tax liabilities |
13,526 |
|
|
11,406 |
|
Due to participants |
146,637 |
|
|
17,885 |
|
Accounts payable, accrued expenses and other liabilities |
10,152 |
|
|
9,723 |
|
Total liabilities |
677,286 |
|
|
501,626 |
|
|
|
|
|
Commitment and contingencies |
|
|
|
Net
assets: |
|
|
|
Preferred stock (par value $0.02 per share; authorized 1,000
shares, no shares issued and outstanding) |
— |
|
|
— |
|
Common stock (par value $0.02 per share; authorized 200,000 shares,
22,559 and 21,970 issued and outstanding, respectively) |
451 |
|
|
439 |
|
Additional paid-in capital |
326,354 |
|
|
316,629 |
|
Accumulated undistributed earnings |
39,215 |
|
|
22,285 |
|
Total net assets |
366,020 |
|
|
339,353 |
|
Total liabilities and net assets |
$ |
1,043,306 |
|
|
$ |
840,979 |
|
Net
asset value per common share |
$ |
16.23 |
|
|
$ |
15.45 |
|
|
|
|
|
|
|
|
|
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) |
(In Thousands, except for Per Share Data) |
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Investment income |
|
|
|
|
|
|
|
From non-affiliate investments: |
|
|
|
|
|
|
|
Interest income - PPP loans |
$ |
269 |
|
|
$ |
3,085 |
|
|
$ |
49,989 |
|
|
$ |
37,742 |
|
Interest income - SBA 7(a) loans |
7,131 |
|
|
5,871 |
|
|
19,328 |
|
|
19,382 |
|
Servicing income |
2,819 |
|
|
2,875 |
|
|
8,346 |
|
|
8,367 |
|
Other income |
1,446 |
|
|
240 |
|
|
3,829 |
|
|
1,449 |
|
Total
investment income from non-affiliate investments |
11,665 |
|
|
12,071 |
|
|
81,492 |
|
|
66,940 |
|
From non-control investments: |
|
|
|
|
|
|
|
Interest income |
126 |
|
|
107 |
|
|
374 |
|
|
107 |
|
Dividend income |
23 |
|
|
31 |
|
|
70 |
|
|
71 |
|
Total
investment income from non-control investments |
149 |
|
|
138 |
|
|
444 |
|
|
178 |
|
From controlled investments: |
|
|
|
|
|
|
|
Interest income |
594 |
|
|
486 |
|
|
1,703 |
|
|
1,423 |
|
Dividend income |
— |
|
|
2,234 |
|
|
51 |
|
|
8,884 |
|
Total
investment income from controlled investments |
594 |
|
|
2,720 |
|
|
1,754 |
|
|
10,307 |
|
Total
investment income |
12,408 |
|
|
14,929 |
|
|
83,690 |
|
|
77,425 |
|
Expenses: |
|
|
|
|
|
|
|
Salaries and benefits |
2,351 |
|
|
3,669 |
|
|
12,727 |
|
|
10,856 |
|
Interest |
5,177 |
|
|
3,939 |
|
|
15,217 |
|
|
13,727 |
|
Depreciation and amortization |
72 |
|
|
93 |
|
|
236 |
|
|
312 |
|
Professional fees |
1,418 |
|
|
651 |
|
|
3,465 |
|
|
2,822 |
|
Origination and loan processing |
4,586 |
|
|
1,120 |
|
|
10,555 |
|
|
5,666 |
|
Origination and loan processing - related party |
3,177 |
|
|
2,705 |
|
|
10,830 |
|
|
8,438 |
|
Change in fair value of contingent consideration liabilities |
— |
|
|
— |
|
|
— |
|
|
54 |
|
Loss on extinguishment of debt |
— |
|
|
— |
|
|
955 |
|
|
— |
|
Other general and administrative costs |
2,322 |
|
|
1,082 |
|
|
5,663 |
|
|
4,415 |
|
Total
expenses |
19,103 |
|
|
13,259 |
|
|
59,648 |
|
|
46,290 |
|
Net
investment income (loss) |
(6,695 |
) |
|
1,670 |
|
|
24,042 |
|
|
31,135 |
|
Net
realized and unrealized gains (losses): |
|
|
|
|
|
|
|
Net realized gain (loss) on non-affiliate investments - SBA 7(a)
loans |
19,272 |
|
|
(722 |
) |
|
38,079 |
|
|
2,577 |
|
Net realized gain (loss) on derivative transactions |
(268 |
) |
|
— |
|
|
(268 |
) |
|
— |
|
Net unrealized appreciation (depreciation) on SBA guaranteed
non-affiliate investments |
123 |
|
|
(111 |
) |
|
2,533 |
|
|
(494 |
) |
Net unrealized appreciation (depreciation) on SBA unguaranteed
non-affiliate investments |
998 |
|
|
132 |
|
|
2,583 |
|
|
(6,012 |
) |
Net unrealized appreciation (depreciation) on controlled
investments |
7,305 |
|
|
(285 |
) |
|
1,760 |
|
|
(11,156 |
) |
Change in deferred taxes |
(2,843 |
) |
|
70 |
|
|
(2,120 |
) |
|
3,010 |
|
Net unrealized appreciation (depreciation) on non-control
investments |
(3 |
) |
|
— |
|
|
521 |
|
|
— |
|
Net unrealized appreciation on derivative transactions |
341 |
|
|
— |
|
|
304 |
|
|
— |
|
Net unrealized depreciation on servicing assets |
(1,616 |
) |
|
(1,207 |
) |
|
(3,322 |
) |
|
(1,299 |
) |
Net
realized and unrealized gains (losses) |
$ |
23,309 |
|
|
$ |
(2,123 |
) |
|
$ |
40,070 |
|
|
$ |
(13,374 |
) |
Net
increase (decrease) in net assets resulting from operations |
$ |
16,614 |
|
|
$ |
(453 |
) |
|
$ |
64,112 |
|
|
$ |
17,761 |
|
Net increase (decrease) in net assets resulting from operations per
share |
$ |
0.74 |
|
|
$ |
(0.02 |
) |
|
$ |
2.85 |
|
|
$ |
0.85 |
|
Net investment income (loss) per share |
$ |
(0.30 |
) |
|
$ |
0.08 |
|
|
$ |
1.07 |
|
|
$ |
1.49 |
|
Dividends and distributions declared per common share |
$ |
0.90 |
|
|
$ |
0.58 |
|
|
$ |
2.10 |
|
|
$ |
1.58 |
|
Weighted average number of shares outstanding |
22,541 |
|
|
21,192 |
|
|
22,468 |
|
|
20,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIESNON-GAAP FINANCIAL
MEASURES-ADJUSTED NET INVESTMENT INCOME
RECONCILIATION:
|
|
Three months ended |
|
|
|
Three months ended |
|
|
(in thousands, except per
share amounts) |
|
September 30, 2021 |
|
Per share |
|
September 30, 2020 |
|
Per share |
Net investment income
(loss) |
|
$ |
(6,695 |
) |
|
(0.30 |
) |
|
$ |
1,670 |
|
|
0.08 |
|
Net realized gain (loss) on
non-affiliate investments - SBA 7(a) loans |
|
19,272 |
|
|
0.85 |
|
|
(722 |
) |
|
(0.03 |
) |
Adjustment for realized
gain/(loss) on derivatives (1) |
|
(7 |
) |
|
0.00 |
|
|
— |
|
|
— |
|
Adjusted Net investment income |
|
$ |
12,570 |
|
|
$ |
0.56 |
|
|
$ |
948 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
|
|
Nine months ended |
|
|
(in thousands, except per
share amounts) |
|
September 30, 2021 |
|
Per share |
|
September 30, 2020 |
|
Per share |
Net investment income
(loss) |
|
$ |
24,042 |
|
|
$ |
1.07 |
|
|
$ |
31,135 |
|
|
$ |
1.49 |
|
Net realized gain on
non-affiliate investments - SBA 7(a) loans |
|
38,079 |
|
|
1.69 |
|
|
2,577 |
|
|
0.12 |
|
Adjustment for realized
gain/(loss) on derivatives (1) |
|
(7 |
) |
|
0.00 |
|
|
— |
|
|
|
— |
|
Change in fair value of
contingent consideration liabilities |
|
— |
|
|
|
— |
|
|
54 |
|
|
|
0.00 |
|
Loss on debt
extinguishment |
|
955 |
|
|
|
0.04 |
|
|
— |
|
|
|
— |
|
Adjusted Net investment income |
|
$ |
63,069 |
|
|
$ |
2.81 |
|
|
$ |
33,766 |
|
|
$ |
1.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not foot due to rounding
(1) The following is a reconciliation of GAAP net realized
gain/(loss) on derivative transactions to our adjustment for
realized gain/(loss) on derivatives on closed transactions
presented in the computation of ANII in the preceding tables:
|
|
Three months ended |
|
|
|
Three months ended |
|
|
(in thousands, except per
share amounts) |
|
September 30, 2021 |
|
Per share |
|
September 30, 2020 |
|
Per share |
Net realized gain/(loss) on derivatives |
|
$ |
(268 |
) |
|
$ |
(0.01 |
) |
|
$ |
— |
|
|
$ |
— |
|
Hedging realized result on
open hedging positions |
|
261 |
|
|
0.01 |
|
|
— |
|
|
— |
|
Adjustment for realized gain/(loss) on derivatives |
|
$ |
(7 |
) |
|
$ |
0.00 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
|
|
Nine months ended |
|
|
(in thousands, except per
share amounts) |
|
September 30, 2021 |
|
Per share |
|
September 30, 2020 |
|
Per share |
Net realized gain/(loss) on
derivatives |
|
$ |
(268 |
) |
|
$ |
(0.01 |
) |
|
$ |
— |
|
|
$ |
— |
|
Hedging realized result on
open hedging positions |
|
261 |
|
|
0.01 |
|
|
— |
|
|
— |
|
Adjustment for realized gain/(loss) on derivatives |
|
$ |
(7 |
) |
|
$ |
0.00 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIESDEBT-TO-EQUITY RATIO - ACTUAL AT SEPTEMBER 30, 2021
(in
thousands): |
|
|
|
Actual Debt-to-Equity Ratio at September 30,
2021 |
|
|
|
Total senior debt |
|
$ |
500,838 |
|
|
Total
equity |
|
$ |
366,020 |
|
|
Debt-to-equity ratio - actual |
|
1.37 |
x |
|
|
|
|
|
|
|
|
|
NEWTEK BUSINESS SERVICES CORP. AND
SUBSIDIARIESDEBT-TO-EQUITY RATIO - PROFORMA AT SEPTEMBER 30,
2021
(in
thousands): |
|
|
|
Broker receivable, including premium income receivable |
|
$ |
60,950 |
|
|
Less:
realized gain on sale included in broker receivable |
|
(6,836 |
) |
|
Broker
receivable |
|
54,114 |
|
|
|
|
|
|
90%
advance rate on SBA guaranteed non-affiliate portions of loans
sold, not settled |
|
$ |
48,703 |
|
|
|
|
|
|
|
|
|
|
Proforma debt adjustments at September 30,
2021: |
|
|
|
Total
senior debt |
|
$ |
500,838 |
|
|
Proforma
adjustment for broker receivable |
|
(48,703 |
) |
|
Total
proforma debt |
|
$ |
452,135 |
|
|
|
|
|
|
|
|
|
|
Proforma Debt-to-Equity ratio at September 30,
2021: |
|
|
|
Total
proforma debt |
|
$ |
452,135 |
|
|
Total
equity |
|
$ |
366,020 |
|
|
Debt-to-equity ratio - proforma |
|
|
1.24x |
|
|
|
|
|
|
|
|
|
|
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