Business
Newtek Receives Approval From the OCC to Acquire National Bank of New York City
Newtek Recently Received Federal Reserve Approval to Become a Bank Holding Company BOCA RATON, Fla., Dec. 01, 2022 (GLOBE NEWSWIRE) -- Newtek Business
About this update from Newtekone, Inc.
[{"type":"text","content":"Newtek Recently Received Federal Reserve Approval to Become a Bank Holding Company\nBOCA RATON, Fla., Dec. 01, 2022 (GLOBE NEWSWIRE) -- Newtek Business Services Corp. (NASDAQ: NEWT) (“Newtek”) today announced that it has received conditional approval from Office of the Comptroller of the Currency (“OCC”) to complete its acquisition of the National Bank of New York City (“NBNYC” and the “Acquisition”). Newtek announced last week that it received approval from the Federal Reserve to become a bank holding company and a financial holding company by acquiring NBNYC. Newtek expects the Acquisition to close in January 2023, subject to completion or waiver of the remaining closing conditions. Upon the close of the Acquisition, NBNYC will be renamed Newtek BankTM, National Association (“Newtek Bank, N.A.”) and Newtek’s current portfolio companies Newtek Business Lending, LLC and Small Business Lending, LLC will be contributed to Newtek Bank, N.A. The OCC approval is subject to the condition that Newtek Bank, N.A. enter into an operating agreement with the OCC upon the close of the Acquisition, which operating agreement contains customary provisions concerning capital, liquidity and concentration limits and memorializes the business plan submitted to the OCC. Barry Sloane, Chairman, President and Chief Executive Officer said, “We could not be more elated to receive the OCC’s approval to move forward and close the Acquisition and become a bank holding company and financial holding company. With a national bank charter, we believe Newtek will be able to enhance the business and financial solutions offered to our customers to include personalized digital commercial banking and the Newtek AdvantageTM dashboard and truly become NewtekOne® - the One Solution for All Your Business Needs®.” Mr. Sloane continued, “Given these approvals, Newtek can proceed with its bank holding company strategy, and intends to publicly issue financial guidance for Newtek as a bank holding company owning Newtek Bank, N.A. The regulatory approvals also will allow Newtek to execute on its plan and strategy to acquire and rebrand NBNYC as Newtek Bank, N.A.TM, and to change the name of the holding company to NewtekOne®. We intend to keep our current stock symbol ‘NEWT’.” Mr. Sloane further commented, “We look forward to paying our recently declared distribution of $0.70...