Newtek Small Business Loan Trust Securitizations Ratings Upgraded by S&P Global Ratings
January 18 2024 - 7:30AM
NewtekOne, Inc. (the “Company”) (NASDAQ: NEWT), announced today
that S&P Global Ratings raised its ratings on a total of four
classes of notes issued by Newtek Small Business Loan Trusts 2018-1
and 2019-1. The Newtek Small Business Loan Trust 2018-1, Class A
Notes were raised to “A+ (sf)” from “A (sf)’’ and the Class B Notes
was raised to “BBB (sf)” from “BBB- (sf).” In addition, the Newtek
Small Business Loan Trust 2019-1 Class A Notes were raised to “A+
(sf)” from “A (sf)” and the Class B Notes were raised to “BBB (sf)”
from “BBB- (sf).” According to S&P Global Ratings, the ratings
upgrades reflect their view of the transactions’ stable
performance, the increasing level of credit enhancement as well as
the structural features of the transactions. These loan trusts are
asset-backed securities transactions backed by amortizing pools of
unguaranteed interests in SBA 7(a) loans originated by the
Company’s subsidiary.
Barry Sloane, Chairman, President and Chief Executive Officer
said, “We are pleased that S&P Global Ratings has upgraded
their investment-grade ratings on two of the Company’s most
seasoned securitizations outstanding. The loans in these
securitizations were underwritten prior to COVID-19 and experienced
the effects of the pandemic plus the interest rate shocks of 2022
and 2023, and still outperformed credit expectations. As an
organization that was a non-bank lender until 2023, Newtek used
securitizations to fund its SBA 7(a) origination and portfolio
activity. We believe that the 2018-1 and 2019-1 vintage
transactions, that are nearing their 20% clean-up calls and are
secured by slightly under 25% of the outstanding balances of Newtek
Small Business Finance’s portfolio, are representative of the
quality of Newtek’s unique method of loan acquisition,
underwriting, and portfolio management.”
Mr. Sloane continued, “In addition, the Company resources that
are used to originate SBA 7(a) loans are the same resources that we
use to originate loans in our alternative loan financing program
(previously referred to as non-conforming loans), and our bank
loans that are not part of a government-lending program. Today, our
alternative financing loan program, financed through joint ventures
and securitizations, has not experienced a single charge off since
we began originating these loans in 2019. We have also had a
similar type of charge-off experience in our SBA 504 program, which
is also now funded at Newtek Bank, N.A.”
Mr. Sloane concluded. “During our year-end earnings conference
call, we look forward to providing an update on our lending
platform and credit performance, including level of reserves, as
well as the growing revenue and income streams for both Newtek Bank
and NewtekOne.”
About NewtekOne, Inc.
NewtekOne®, Your Business Solutions Company®, is a financial
holding company, which along with its bank and non-bank
consolidated subsidiaries, (collectively, “NewtekOne”), provides a
wide range of business and financial solutions under the Newtek®
brand to the small- and medium-sized business (“SMB”)
market. Since 1999, NewtekOne 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.
NewtekOne’s and its subsidiaries’ business and financial
solutions include: banking (Newtek Bank, N.A.), 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®, Newtek Bank®, National
Association, Your Business Solutions Company® and One Solution for
All Your Business Needs® are registered trademarks of NewtekOne,
Inc.
Note Regarding Forward-Looking
Statements
Certain statements in this press release are
“forward-looking statements” within the meaning of the rules and
regulations of the Private Securities Litigation and Reform Act of
1995. These statements are based on management’s current
expectations and are subject to uncertainty and changes in
circumstances. These statements are not guarantees of future
results or occurrences and are subject to change, possibly
materially. See “Note Regarding Forward-Looking Statements” and the
sections entitled “Risk Factors” in the Company's filings with the
Securities and Exchange Commission available on NewtekOne's website
(https://investor.newtekbusinessservices.com/sec-filings) and on
the Securities and Exchange Commission’s website (www.sec.gov). Any
forward-looking statements made by or on behalf of NewtekOne speak
only as to the date they are made, and NewtekOne does not undertake
to update forward-looking statements to reflect the impact of
circumstances or events that arise after the date the
forward-looking statements were made.
SOURCE: NewtekOne, Inc.
Investor Relations & Public
RelationsContact: Jayne Cavuoto Telephone: (212) 273-8179
/ jcavuoto@newtekone.com
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