Newtekone, Inc. · NASDAQ:NEWT
Newtekone — Newtek Business Services — Merger or Acquisition (March 2022)
13 slides from Newtekone's merger presentation, Mar 2, 2022
Slide 1: Update on Pending Acquisition of the National Bank of New York City
www.newtekone.com Newtek Business Services Corp. NASDAQ: NEWT Update on Pending Acquisition of the National Bank of New York City March 2, 2022 Investor Relations Jayne Cavuoto Director of Investor Relations jcavuoto@newtekone.com (212) 273-8179 Barry Sloane Newtek President, Chairman & CEO (212) 35
Slide 2: Note Regarding Forward-Looking Statements
www.newtekone.com Note Regarding Forward-Looking Statements 1 The matters discussed in this Presentation, as well as in future oral and written statements by management of Newtek Business Services Corp., that are forward-looking statements, including statements regarding our ability to close the pen
Slide 3: Special Note Regarding Projected Financial Information
www.newtekone.com 2 Special Note Regarding Projected Financial Information Projected financial information contained herein illustrates the potential effect of Newtek’s acquisition of NBNYC on our financial position and results of operations based upon management’s current assessment of Newtek’s and
Slide 4: Newtek to Acquire National Bank of New York City
www.newtekone.com Newtek to Acquire National Bank of New York City 3 1. “TBV” = Tangible book value; NBYNC to deliver $20mm of Tangible Common Equity (“TCE”) at closing after special dividend of real estate property and excess capital 2. Newtek intends to apply for trust powers in connection with th
Slide 5: Anticipate A Well-Capitalized Institution
www.newtekone.com 4 Anticipate A Well-Capitalized Institution “CET1” = Common Equity Tier 1 Note: For illustrative purposes, assumes closing date of June 30, 2022 and regulatory approvals of Newtek’s current business plan and assumptions; earnings presented on a core basis (excluding impact fair val
Slide 6: Earnings Illustration: Consolidated NEWT in FHC Structure
www.newtekone.com 5 ROAA ROATCE After-tax Net Income Earnings Per Share 3.7 – 3.9% FY 2023 21 – 23% $57 – $62 million $2.25 – $2.45 +100bs Cost of Deposits Cost of Funds ~2.3% Deposits / Total Funding ~50% 3.9 – 4.1% FY 2023 22 – 24% $60 – $65 million $2.40 – $2.60 Profitability Targets ~1.9% ~50% “
Slide 7: Earnings Illustration – Additional Detail
www.newtekone.com Earnings Illustration – Additional Detail Total Revenue Bank Subsidiary $155 – $160 million FY 2023 Profitability Targets Operating Expense Bank Subsidiary $98 – $103 million Pre-tax Income Bank Subsidiary $35 – $40 million Total Revenue Other Business Lines $130 – $135 million Ope
Slide 8: NEWT vs. Projected Peers
www.newtekone.com 7 8.6 9.1 22.3 KBW SMID-Cap Banks Fintech Enabled Banks Commercial Finance Companies Est. Year 1 FY 2023 12.7 18.0 15.2 KBW SMID-Cap Banks Fintech Enabled Banks Commercial Finance Companies 13.1 16.8 14.1 KBW SMID-Cap Banks Fintech Enabled Banks Commercial Finance Companies Est. Ye
Slide 9: Illustrative Financial Data
www.newtekone.com Illustrative Financial Data (assumes closing date of June 30, 2022) 1 2 3 4 Adjustments from NEWT’s current reporting methodology as a BDC to reporting as a C Corporation, including consolidation of NEWT’s controlled subsidiaries, whereby assets and liabilities of controlled subs
Slide 10: Sample of Existing Newtek & Portfolio Company Talent Pool with Banking Experience
www.newtekone.com Sample of Existing Newtek & Portfolio Company Talent Pool with Banking Experience 9 Nicolas Young – Chief Risk Officer, Newtek Business Services Corp (Proposed President of the Bank) – 20+ years of banking experience – IBERIABANK – Executive Vice President, Chief Credit Officer –
Slide 11: Stock Performance: Rotation of Our Shareholder Base Upon Conversion to BDC in 2014
www.newtekone.com NEWT Closing Stock Price: 9/30/2013 – 6/30/2015(1) Stock Performance: Rotation of Our Shareholder Base Upon Conversion to BDC in 2014 1Adjusted for 1:5 Reverse Stock Split 10 $10.00 $11.00 $12.00 $13.00 $14.00 $15.00 $16.00 $17.00 $18.00 $19.00 $20.00 10/1/2013 Form N-2 filed to re
Slide 12: NewtekOne Dashboard
www.newtekone.com NewtekOne Dashboard 11 TM
Slide 13: Investment Summary
www.newtekone.com Investment Summary We believe a diversified business model can provide multiple streams of revenue We believe that we have a proven track record; Established in 1998; publically traded since September 2000 Newtek has consistently outperformed the Russell 2000 and the S&P 500
Newtek Business Services — Merger or Acquisition (March 2022) on 6ix