Newtek Receives Approval from the Federal Reserve to Become a Bank Holding Company
November 21 2022 - 8:30AM
Newtek Business Services Corp. (NASDAQ: NEWT) (“Newtek”) today
announced that it has received approval from the Federal Reserve to
become a bank holding company and a financial holding company by
acquiring the National Bank of New York City (“NBNYC”). The pending
acquisition of NBNYC remains subject to the approval of the Office
of the Comptroller of the Currency (“OCC”), which approval is
currently anticipated in the coming weeks. The approval of the
Federal Reserve is conditioned on the representations and
commitments made by Newtek in connection with its applications,
including the discontinuance of Newtek’s election to be regulated
under the Investment Company Act of 1940 and to divest activities
of certain of Newtek’s technology portfolio companies within two
years of becoming a bank holding company.
Barry Sloane, Chairman, President and Chief Executive Officer
said, “We are thrilled to have received the approval of the Federal
Reserve to become a bank holding company and a financial holding
company upon the close of the acquisition of NBNYC. While we await
and anticipate approval from the OCC to acquire NBNYC, which we are
hopeful to obtain shortly, we will continue to prepare and
anticipate closing the acquisition in January 2023. Once we receive
the remaining regulatory approval, we anticipate providing certain
guidance on forecasted earnings as a bank holding company.”
Mr. Sloane continued, “We would like to thank the staffs of the
Federal Reserve Bank of Atlanta, the Board of Governors of the
Federal Reserve System and the OCC for their work and efforts on
our applications seeking approval to acquire NBNYC and become a
bank holding company. We look forward to our new role in the
economy as a financial holding company and to further establish our
corporate brand as NewtekOne® -- the One Solution for All Your
Business Needs®, the one company that makes you more successful,
the one company that gives you banking relationships and analytics
to run your business as well as enhanced transactional
capability.”
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®, NewtekOne®, Your Business Solutions
Company® and One Solution for All Your Business Needs® 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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