Newtekone, Inc. · NASDAQ:NEWT
Newtekone — Newtek Business Services — Merger or Acquisition (August 2021)
12 slides from Newtekone's merger presentation, Aug 10, 2021
Slide 1: Second Addendum to Investor Presentation dated August 3, 2021
www.newtekone.com Newtek Business Services Corp. NASDAQ: NEWT Second Addendum to Investor Presentation dated August 3, 2021 August 10,2021 Investor Relations Jayne Cavuoto Director of Investor Relations jcavuoto@newtekone.com (212) 273-8179
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 a
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. NBYNC to deliver $20mm of Tangible Common Equity at closing after special dividend of real estate property and excess capital 2. Newtek intends to apply for trust powers in connection with the Acquisition ACQUISITION STRUCTURE A
Slide 5: Anticipate A Well-Capitalized Institution
www.newtekone.com 4 Anticipate A Well-Capitalized Institution TOTAL ASSETS ~$1.4 billion Newtek Holding Company Level - Consolidated TCE RATIO ~17.8% TIER 1 LEVERAGE RATIO ~17.8% CET1 RATIO ~21.5% TOTAL CAPITAL RATIO ~22.8% TOTAL ASSETS ~$865 million Newtek Bank & Trust Banking Subsidiary TCE RATIO
Slide 6: Earnings Illustration: Consolidated NEWT in FHC Structure
www.newtekone.com 5 ROAA 3.6 – 3.9% FY 2022 ROATCE 20 – 23% After-tax Net Income $45 – $50mm Earnings Per Share $2.00 – $2.20 FY 2023 5.2 – 5.4% 28 – 32% $77 – $82mm $3.45 – $3.65 3.5 – 3.7% FY 2022 19 – 23% $43 – $48mm $1.90 – $2.10 FY 2023 4.9 – 5.1% 27 – 31% $73 – $78mm $3.25 – $3.45 Profitabilit
Slide 7: Earnings Illustration – Additional Detail
www.newtekone.com Earnings Illustration – Additional Detail Total Revenue Bank Subsidiary $123 – $128mm FY 2022 FY 2023 Profitability Targets Operating Expense Bank Subsidiary $72 – $77mm Pre-tax Income Bank Subsidiary $33 – $38mm Total Revenue Other Business Lines $123 – $128mm Operating Expense Ot
Slide 8: Peer Benchmarking Illustration
www.newtekone.com Peer Benchmarking Illustration 7 11.6 9.6 18.0 14.8 KBW SMID-Cap Banks High Profitability Banks Fintech Enabled Banks Commercial Finance Companies 8.8 8.7 7.9 17.1 KBW SMID- Cap Banks High Profitability Banks Fintech Enabled Banks Commercial Finance Companies 2022E 2023E 12.0 13.4
Slide 9: Illustrative Financial Data (assumes closing date of December 31, 2021)
www.newtekone.com Illustrative Financial Data (assumes closing date of December 31, 2021) De-BDC NEWT as Adjusted PAA and Pro Forma NEWT Conversion to C Corp. NBNYC Merger Financing NEWT FHC Dollars in Millions 12/31/21 C Corp. 12/31/21 12/31/21 Adjustments Adjustments 12/31/21 Total Assets $969 $45
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 Brian Schulman – Chief Credit Officer, Newtek Business Credit – 30 years of banking experience – Bank Hapoalim – Executive Vice President, Chief Credit Officer – Bank Leumi – Senior Vice President
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: Investment Summary
www.newtekone.com Investment Summary Diversified business model provides multiple streams of revenue Proven track record; Established in 1998; publically traded since September 2000 Newtek has consistently outperformed the Russell 2000 and the S&P 500 for over a decade Over 19-year lending h
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