Business
Newtek Bank, N.A. Achieves 11.7% Deposit Growth in the Third Quarter 2024
Business Core Deposits Expected to Increase by 45% BOCA RATON, Fla., Oct. 08, 2024 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (NASDAQ: NEWT) announced today that it
About this update from Newtekone, Inc.
[{"type":"text","content":"Business Core Deposits Expected to Increase by 45%\nBOCA RATON, Fla., Oct. 08, 2024 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (NASDAQ: NEWT) announced today that it expects to report deposits at Newtek Bank, N.A. of $742 million as of September 30, 2024; an expected sequential increase of 11.7% over $664 million at June 30, 2024, and an increase of 43% over $519 million at December 31, 2023. Insured deposits are expected to represent approximately 75% of total deposits at September 30, 2024. In the all-important category of business core deposits, we expect to finish the third quarter 2024 at $119 million; an increase of $37 million, or 45%. Deposits received from our lending clients are expected to finish the third quarter 2024 at $78 million, an increase of $30 million sequentially from the prior quarter. Barry Sloane, President, Chairman and CEO commented, “We are pleased that we continue to show deposit growth sequentially from the second quarter of 2024 through the third quarter of 2024. When Jennifer Merritt joined Newtek Bank as Chief Operating Officer of Digital Banking in November 2023, we knew we had many things to implement to be able to capitalize on our tens of thousands of existing business customers that utilize NewtekOne one for commercial loans, payroll processing, merchant services, IT solutions, and /or personal and commercial lines insurance agency. As we have said before, National Bank of New York City (“NBNYC”), acquired by NewtekOne in January 2023, was a sixty-year-old one branch bank with traditional ways of banking, i.e., customers going into the branch, signing paperwork, and opening consumer or commercial bank accounts. Our efforts to grow the staff of Newtek Bank from 21 to 358 employees today and integrate new business processes and procedures to capitalize on NewtekOne’s existing relationships, and business and financial solutions has been and remains an important part of our strategy. Developing and acquiring the right software, establishing policies and procedures, and acquiring staff to scale to be able to open accounts, document, surveil and provide client service to approximately 10,000 accounts currently, up from approximately 1,400, when we acquired NBNYC, is no small feat. In addition, Newtek Bank’s hiring of an experienced Compliance officer, BSA officer and risk officer has all been instrumenta...