Business
Newtek Bank, N.A. Reaches Over $1.0 Billion in Deposits
Grows Total Deposits by $884 Million in its First Two Years of Operations BOCA RATON, Fla., Jan. 06, 2025 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (“the Company”)
About this update from Newtekone, Inc.
[{"type":"text","content":"Grows Total Deposits by $884 Million in its First Two Years of Operations\nBOCA RATON, Fla., Jan. 06, 2025 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (“the Company”) (NASDAQ: NEWT) announced today the following deposit metrics of Newtek Bank, N.A. (“Newtek Bank” or the “Bank”), its technology-enabled banking subsidiary, at December 31, 2024: $1.03 billion in total deposits at December 31, 2024, which represents a 97.0% increase in total deposits over the year ended December 31, 2023, and growth of $884 million in total deposits since its acquisition in January 2023.Insured deposits represent approximately 78% of total deposits at December 31, 2024.Core business deposits were $216 million at December 31, 2024, an increase of $106 million, or 96%, over the same period in 2023.In the fourth quarter of 2024, Newtek Bank added 950 new business checking accounts.At December 31, 2024, Newtek Bank had a deposit base of approximately 15,000 bank accounts, compared to the approximately 1,400 accounts that existed at the time of the Bank’s acquisition in January 2023.Over the past two years, the Bank’s incremental depository accounts were acquired via Newtek Bank’s digital account opening process and serviced by U.S.-based representatives, who are available on camera 24/7/365. Barry Sloane, President, Chairman and CEO said, “We are excited about our tremendous growth in deposits, particularly given Newtek Bank’s industry-leading, low efficiency ratio below 40% for the quarter ended September 30, 2024. This low efficiency ratio is further evidence of Newtek Bank’s successful efforts to streamline the deposit-taking process. We believe that the Bank’s overall success is predicated on these efforts, as well as the continued origination of profitable loans and NewtekOne’s offering of business and financial solutions to Newtek Bank’s business clients that can make the Bank’s customers more successful and at the same time provide Newtek Bank the opportunity to earn higher margins than non-technology-enabled banks and bank holding companies.” Mr. Sloane continued, “The over $1.0 billion in deposits at December 31, 2024, were comprised of approximately 28% commercial deposits, which included 3% brokered CD’s, and 72% consumer deposits. The consumer-based depository accounts are primarily consumer high-yield savings accounts and CDs. Newtek Bank desires t...