Newtek Business Services Corp. Reports Record SBA 7(a) Loan Fundings of $223.1 Million for the Third Quarter 2022
October 03 2022 - 8:30AM
Newtek Business Services Corp., (NASDAQ: NEWT), an internally
managed business development company (“BDC”), announced today that
Newtek Small Business Finance, LLC (“NSBF”) had record fundings of
SBA 7(a) loans for the three and nine months ended September 30,
2022. For the three months ended September 30, 2022, NSBF funded a
record $223.1 million in SBA 7(a) loans, which represents a 36.1%
increase over $163.9 million of SBA 7(a) loan fundings for the
three months ended September 30, 2021. NSBF also funded 355 loans,
a record for the three months ended September 30, 2022, compared to
219 loans for the same period last year. For the nine months ended
September 30, 2022, NSBF funded a record $587.0 million of SBA 7(a)
loans, which represents an 61.9% increase over $362.6 million of
SBA 7(a) loan fundings for the nine months ended September 30,
2021. NSBF forecasts funding approximately $750 million of SBA 7(a)
loans for the full year 2022, which would represent a 33.8%
increase over $560.6 million of SBA 7(a) loans funded in 2021. The
Company also announced that for the three months ended September
30, 2022, the weighted-average net premium received on the sale of
guaranteed portions of SBA 7(a) loans slightly increased in the
third quarter 2022 over the second quarter 2022.
Barry Sloane, CEO, President and Chairman commented, “We are
extremely pleased that our people, process, and software that are
at the heart and soul of Newtek’s technology driven operations
continue to provide outstretched results. After receiving
approximately 77,000 referrals for the third quarter 2022, we
created our funnel of prequalified, underwritten and
approved-pending-closing categories of loans to achieve
record-setting SBA 7(a) loan fundings for the three and nine months
ended September 30, 2022, without sacrificing credit quality, but
actually increasing selectivity as we believe the economy will
transition into even more challenging economic times. In fact, our
total fundings through the nine months ended September 30, 2022 of
$587.0 million exceeded total fundings for all of 2021, and we are
currently on track to meet or even exceed our full year 2022 SBA
7(a) funding forecast of $750 million.”
Mr. Sloane continued, “Our average loan sizes continue to
decrease, which provide greater credit diversification. We are now
moving into our 20th year of small business lending and over our
history, we have experienced higher interest rate environments as
well as weaker-credit environments, and we pride ourselves on the
fact that our seasoned management team and staff have the
experience to make the right adjustments while continuing to grow
our business opportunities.”
Mr. Sloane concluded, “We look forward to our upcoming third
quarter 2022 earnings conference call, when we plan to report our
successes across all business verticals as well as provide detail
on the progress that we are making in our non-conforming
conventional lending business as well as the SBA 504 lending
environment. Our payment solutions, technology solutions, as
well as our insurance agency and payroll businesses are all
tracking upwards and gaining momentum based on our model of being
the One Solution for All of the Business Needs® for independent
business owners.”
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, include our ability
to close the pending acquisition of the National Bank of New York
City (the “Transaction”), obtain required regulatory approvals for
the pending Transaction, the timing of the closing of the
Transaction, the timing of the Company’s discontinuance from
regulation as a BDC under the 1940 Act, projections concerning or
considering the pending Transaction, the timing of our ability to
originate new investments, achieve certain margins and levels of
profitability, the availability of additional capital and the
ability to maintain certain debt to asset ratios, 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
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