Newtek Business Services (NEWT) 10-Q 12 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 08, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Securities Act File Number	814-01035
Entity Registrant Name	NEWTEKONE, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	46-3755188
Entity Address, Address Line One	4800 T Rex Avenue
Entity Address, Address Line Two	Suite 120
Entity Address, City or Town	Boca Raton
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33431
City Area Code	212
Local Phone Number	356-9500
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		26,305,056
Entity Central Index Key	0001587987
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Common Stock, par value $0.02 per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.02 per share
Trading Symbol	NEWT
Security Exchange Name	NASDAQ
5.50% Notes due 2026
Document Information [Line Items]
Title of 12(b) Security	5.50% Notes due 2026
Trading Symbol	NEWTZ
Security Exchange Name	NASDAQ
8.00% Notes due 2028
Document Information [Line Items]
Title of 12(b) Security	8.00% Notes due 2028
Trading Symbol	NEWTI
Security Exchange Name	NASDAQ
2029 8.50% Notes
Document Information [Line Items]
Title of 12(b) Security	8.50% Notes due 2029
Trading Symbol	NEWTG
Security Exchange Name	NASDAQ
2029 8.625% Notes
Document Information [Line Items]
Title of 12(b) Security	8.625% Notes due 2029
Trading Symbol	NEWTH
Security Exchange Name	NASDAQ

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 9,688	$ 15,398
Restricted cash	27,929	30,919
Interest bearing deposits in banks	152,805	137,689
Total cash and cash equivalents	190,422	184,006
Debt securities available-for-sale, at fair value	23,790	32,171
Loans held for sale, at fair value	242,225	118,867
Loans held for sale, at LCM	60,203	56,607
Loans held for investment, at fair value	394,471	469,801
Loans held for investment, at amortized cost, net of deferred fees and costs	518,489	336,305
Allowance for credit losses	(26,045)	(12,574)
Loans held for investment, at amortized cost, net	492,444	323,731
Federal Home Loan Bank and Federal Reserve Bank stock	3,608	3,635
Settlement receivable	62,117	62,230
Goodwill and intangibles	14,794	30,120
Right of use assets	3,992	5,701
Deferred tax asset, net	0	5,230
Servicing assets	46,111	39,725
Other assets	62,984	56,102
Assets held for sale	20,519	0
Total assets	1,674,170	1,429,513
Deposits:
Noninterest-bearing	11,040	10,053
Interest-bearing	638,418	453,452
Total deposits	649,458	463,505
Borrowings	655,834	644,122
Dividends payable	5,237	4,792
Lease liabilities	4,883	6,952
Deferred tax liabilities, net	4,700	0
Due to participants	22,217	23,796
Accounts payable, accrued expenses and other liabilities	45,092	37,300
Liabilities directly associated with assets held for sale	4,964	0
Total liabilities	1,392,385	1,180,467
Shareholders' Equity:
Preferred stock (par value $0.02 per share; authorized 20 shares, 20 shares issued and outstanding)	19,738	19,738
Common stock (par value $0.02 per share; authorized 199,980 shares, 26,018 and 24,680 shares issued and outstanding, respectively)	520	492
Additional paid-in capital	216,662	200,913
Retained earnings	44,834	28,051
Accumulated other comprehensive income (loss), net of income taxes	31	(148)
Total shareholders' equity	281,785	249,046
Total liabilities and shareholders' equity	1,674,170	1,429,513
Joint Ventures
ASSETS
Investments	55,750	40,859
Non-Control Investments
ASSETS
Investments	$ 740	$ 728

CONSOLIDATED STATEMENTS OF FI_2

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Joint ventures, cost	$ 43,321	$ 37,864
Preferred stock, par value (in dollars per share)	$ 0.02	$ 0.02
Preferred stock, shares authorized (in shares)	20	20
Preferred stock, shares issued (in shares)	20	20
Preferred stock, shares outstanding (in shares)	20	20
Common stock, par value (in dollars per share)	$ 0.02	$ 0.02
Common stock, shares authorized (in shares)	199,980	199,980
Common stock, shares issued (in shares)	26,018	24,680
Common shares outstanding at end of period (in shares)	26,018	24,680
Non-Control Investments
Investments, cost	$ 680	$ 796

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Interest income
Debt securities available-for-sale	$ 334	$ 436	$ 1,168	$ 1,083
Loans and fees on loans	28,588	23,232	80,346	60,341
Other interest earning assets	2,349	3,068	6,177	6,580
Total interest income	31,271	26,736	87,691	68,004
Interest expense
Deposits	7,314	5,212	19,755	10,738
Total interest expense	20,290	18,659	58,678	49,671
Net interest income	10,981	8,077	29,013	18,333
Provision for credit losses	6,928	3,446	16,742	7,339
Net interest income after provision for credit losses	4,053	4,631	12,271	10,994
Noninterest income
Dividend income	374	388	1,128	1,397
Loan servicing asset revaluation	(1,786)	(1,951)	(5,383)	(1,566)
Servicing income	4,958	4,602	14,922	13,304
Net gains on sales of loans	25,675	13,751	68,531	33,482
Net (loss) gain on loans under the fair value option	(4,085)	2,809	(4,181)	12,588
Technology and IT support income	3,311	5,376	14,255	18,456
Electronic payment processing income	11,777	11,192	35,409	32,196
Other noninterest income	11,627	4,859	28,557	17,808
Total noninterest income	51,851	41,026	153,238	127,665
Noninterest expense
Salaries and employee benefits expense	19,149	13,726	60,445	51,173
Technology services expense	1,796	2,738	8,624	10,007
Electronic payment processing expense	4,438	4,817	14,977	14,159
Professional services expense	3,929	3,170	11,237	9,766
Other loan origination and maintenance expense	4,132	1,836	9,391	6,930
Depreciation and amortization	517	730	1,570	2,271
Other general and administrative costs	4,886	4,303	14,326	13,814
Total noninterest expense	38,847	31,320	120,570	108,120
Net income before taxes	17,057	14,337	44,939	30,539
Income tax expense (benefit)	5,123	3,418	12,410	(5,941)
Net income	11,934	10,919	32,529	36,480
Dividends to preferred shareholders	(400)	(400)	(1,200)	(1,049)
Net income available to common shareholders	$ 11,534	$ 10,519	$ 31,329	$ 35,431
Earnings per common share:
Basic (in dollars per share)	$ 0.45	$ 0.43	$ 1.26	$ 1.46
Diluted (in dollars per share)	$ 0.45	$ 0.43	$ 1.26	$ 1.46
Notes and securitizations
Interest expense
Interest expense	$ 11,482	$ 11,005	$ 33,427	$ 28,806
Bank and FHLB borrowings
Interest expense
Interest expense	$ 1,494	$ 2,442	$ 5,496	$ 10,127

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 11,934	$ 10,919	$ 32,529	$ 36,480
Other comprehensive gain (loss) before tax:
Net unrealized gain (loss) on debt securities available-for-sale during the period	241	(79)	257	(281)
Other comprehensive gain (loss) before tax	241	(79)	257	(281)
Income tax (expense) benefit	(73)	98	(78)	97
Other comprehensive income (loss), net of tax	168	19	179	(184)
Comprehensive income	$ 12,102	$ 10,938	$ 32,708	$ 36,296

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	Total	As Reported	Adjustment	Controlled Investments Adjustment	Common stock	Common stock As Reported	Common stock Adjustment	Preferred stock	Preferred stock As Reported	Preferred stock Controlled Investments Adjustment	Additional paid-in capital	Additional paid-in capital As Reported	Additional paid-in capital Adjustment	Additional paid-in capital Controlled Investments Adjustment	Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss) As Reported	Accumulated undistributed earnings	Accumulated undistributed earnings As Reported	Accumulated undistributed earnings Adjustment	Retained earnings	Retained earnings As Reported
Beginning balance (in shares) at Dec. 31, 2022						24,609
Beginning balance at Dec. 31, 2022		$ 375,358				$ 492			$ 0			$ 354,243				$ 0		$ 20,623			$ 0
Beginning balance, preferred stock (in shares) at Dec. 31, 2022									0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Change in presentation			$ 0										$ 20,623						$ (20,623)
Removal of fair value adjustments			(138,043)										(138,043)
Consolidation of controlled investments				$ (57,725)						$ 245				$ (57,970)
Reassessment of deferred tax assets and liabilities			19,266										19,266
DRIP shares issued (in shares)							16
DRIP shares issued			$ 217										$ 217
Stock-based compensation expense, net of forfeitures	$ 2,015										$ 2,015
Dividends declared related to RSA, net of accrued dividends forfeited (in shares)					10
Dividends declared related to RSA, net of accrued dividends forfeited	0										137									$ (137)
Purchase of vested stock for employee payroll tax withholding (in shares)					(16)
Purchase of vested stock for employee payroll tax withholding	(534)				$ (1)						(533)
Restricted stock awards (in shares)					26
Issuance of stock (in shares)								20
Issuance of stock	$ 20,000							$ 20,000
Dividends and distributions declared per common share (in dollars per share)	$ 0.54
Preferred stock issuance costs	$ (507)							(507)
Dividends declared common shares	$ (13,092)																			(13,092)
Dividends declared preferred shares (in dollars per share)	$ 52.44
Dividends declared preferred shares	$ (1,049)																			(1,049)
Net income (loss)	36,480																			36,480
Other comprehensive income (loss), net of tax	(184)														$ (184)
Ending balance (in shares) at Sep. 30, 2023					24,645
Ending balance at Sep. 30, 2023	242,202				$ 491			$ 19,738			199,955				(184)		$ 0			22,202
Ending balance, preferred stock (in shares) at Sep. 30, 2023								20
Beginning balance (in shares) at Jun. 30, 2023					24,615
Beginning balance at Jun. 30, 2023	235,449				$ 491			$ 19,738			199,358				(203)					16,065
Beginning balance, preferred stock (in shares) at Jun. 30, 2023								20
Increase (Decrease) in Stockholders' Equity [Roll Forward]
DRIP shares issued (in shares)					6
DRIP shares issued	71										71
Stock-based compensation expense, net of forfeitures	592										592
Dividends declared related to RSA, net of accrued dividends forfeited (in shares)					2
Dividends declared related to RSA, net of accrued dividends forfeited	0										19									(19)
Purchase of vested stock for employee payroll tax withholding (in shares)					(4)
Purchase of vested stock for employee payroll tax withholding	$ (85)										(85)
Restricted stock awards (in shares)					26
Dividends and distributions declared per common share (in dollars per share)	$ 0.18
Dividends declared common shares	$ (4,363)																			(4,363)
Dividends declared preferred shares (in dollars per share)	$ 20
Dividends declared preferred shares	$ (400)																			(400)
Net income (loss)	10,919																			10,919
Other comprehensive income (loss), net of tax	19														19
Ending balance (in shares) at Sep. 30, 2023					24,645
Ending balance at Sep. 30, 2023	$ 242,202				$ 491			$ 19,738			199,955				(184)		$ 0			22,202
Ending balance, preferred stock (in shares) at Sep. 30, 2023								20
Beginning balance (in shares) at Dec. 31, 2023	24,680				24,680
Beginning balance at Dec. 31, 2023	$ 249,046				$ 492			$ 19,738			200,913				(148)					28,051
Beginning balance, preferred stock (in shares) at Dec. 31, 2023	20							20
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense, net of forfeitures	$ 2,244										2,244
Dividends declared related to RSA, net of accrued dividends forfeited (in shares)					20
Dividends declared related to RSA, net of accrued dividends forfeited	0										265									(265)
Purchase of vested stock for employee payroll tax withholding (in shares)					(25)
Purchase of vested stock for employee payroll tax withholding	(299)										(299)
Restricted stock awards (in shares)					228
Restricted stock awards, net of forfeitures	5				$ 5
ESPP issuances (in shares)					15
ESPP issuances	167										167
Amortization of offering costs	(423)										(423)
Issuance of stock (in shares)					1,100
Issuance of stock	$ 13,818				$ 23						13,795
Dividends and distributions declared per common share (in dollars per share)	$ 0.38
Dividends declared common shares	$ (14,281)																			(14,281)
Dividends declared preferred shares (in dollars per share)	$ 60
Dividends declared preferred shares	$ (1,200)																			(1,200)
Net income (loss)	32,529																			32,529
Other comprehensive income (loss), net of tax	$ 179														179
Ending balance (in shares) at Sep. 30, 2024	26,018				26,018
Ending balance at Sep. 30, 2024	$ 281,785				$ 520			$ 19,738			216,662				31					44,834
Ending balance, preferred stock (in shares) at Sep. 30, 2024	20							20
Beginning balance (in shares) at Jun. 30, 2024					25,852
Beginning balance at Jun. 30, 2024	$ 274,002				$ 517			$ 19,738			215,633				(137)					38,251
Beginning balance, preferred stock (in shares) at Jun. 30, 2024								20
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense, net of forfeitures	913										913
Dividends declared related to RSA, net of accrued dividends forfeited (in shares)					8
Dividends declared related to RSA, net of accrued dividends forfeited	0										114									(114)
Purchase of vested stock for employee payroll tax withholding (in shares)					(4)
Purchase of vested stock for employee payroll tax withholding	(46)										(46)
Restricted stock awards (in shares)					158
Restricted stock awards, net of forfeitures	3				$ 3
ESPP issuances (in shares)					4
ESPP issuances	$ 48										48
Dividends and distributions declared per common share (in dollars per share)	$ 0.19
Dividends declared common shares	$ (4,837)																			(4,837)
Dividends declared preferred shares (in dollars per share)	$ 20
Dividends declared preferred shares	$ (400)																			(400)
Net income (loss)	11,934																			11,934
Other comprehensive income (loss), net of tax	$ 168														168
Ending balance (in shares) at Sep. 30, 2024	26,018				26,018
Ending balance at Sep. 30, 2024	$ 281,785				$ 520			$ 19,738			$ 216,662				$ 31					$ 44,834
Ending balance, preferred stock (in shares) at Sep. 30, 2024	20							20

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Stockholders' Equity [Abstract]
Dividends declared common shares (in dollars per share)	$ 0.19	$ 0.18	$ 0.38	$ 0.54
Dividends declared preferred shares (in dollars per share)	$ 20	$ 20	$ 60	$ 52.44

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income	$ 32,529	$ 36,480
Adjustments to reconcile net income to net cash used in operating activities:
Net loss (gain) on loans accounted for under the fair value option	4,181	(12,588)
Loan servicing asset revaluation	5,383	1,566
Net unrealized appreciation on derivative transactions	(562)	(54)
Net gain on sales of loans	(68,531)	(33,482)
Net accretion of premium/discount	(564)	(1,970)
Amortization of deferred financing costs	3,154	3,028
Provision for credit losses	16,742	7,339
Lower of cost or market adjustment on loans held for sale	(73)	139
Bad debt (recoveries) expense	(133)	190
Stock compensation expense	2,261	2,015
Deferred income tax expense (benefit)	11,472	(15,546)
Depreciation and amortization	1,570	2,271
Proceeds from sale of loans held for sale	598,186	533,117
Sale (purchase) of loans held for sale from affiliate	131,155	(5,279)
Funding of investments	(799,644)	(532,993)
Principal received on loans held for sale	14,507	8,204
Other, net	(435)	(481)
Changes in operating assets and liabilities:
Settlement receivable	112	(63,957)
Due to/from related parties	(89)	(391)
Other assets	(5,093)	7,558
Dividends payable	445	4,769
Due to participants	(1,579)	(14,392)
Accounts payable, accrued expenses and other liabilities	3,149	(23,876)
Net cash used in operating activities	(61,419)	(101,474)
Cash flows from investing activities:
Net decrease in loans held for investment, at fair value	53,237	12,259
Net increase in loans held for investment, at cost	(179,018)	(116,621)
Contributions to joint ventures	(5,457)	(14,550)
Purchase of fixed assets	(375)	(293)
Return of capital - non-control investments	116	0
Net decrease (increase) in Federal Home Loan and Federal Reserve Bank stock	27	(2,133)
Net decrease (increase) in available-for-sale securities	8,637
Net decrease (increase) in available-for-sale securities		(28,134)
Acquisitions, net of cash acquired	0	11,252
Net cash used in investing activities	(122,833)	(138,220)
Cash flows from financing activities:
Net paydowns on bank notes payable	(18,694)	(105,700)
Net increase in deposits	184,983	295,544
Repayment of Federal Home Loan Bank advances	(7,437)	(4,336)
Proceeds from common shares sold, net of offering costs	13,818	0
Proceeds from preferred stock, net of offering costs	0	19,493
Payments on Notes Payable - Securitization Trusts	(68,922)	(68,918)
Issuance of Notes Payable - Securitization Trusts	0	103,860
Dividends paid, net of dividend reinvestment plan	(15,015)	(9,378)
Payments of deferred financing costs	(5,067)	(4,556)
Proceeds from common stock issued under ESPP	140	0
Purchase of vested stock for employee payroll tax withholding	(299)	(534)
Net cash provided by financing activities	192,132	315,475
Net increase in cash and restricted cash	7,880	75,781
Cash and restricted cash—beginning of period (Note 2)	184,006	125,606
Consolidation/(deconsolidation) of cash and restricted cash from controlled investments related to business combinations and dispositions, net of cash paid	(1,464)	22,306
Cash and restricted cash—end of period (Note 2)	190,422	223,693
Non-cash operating, investing and financing activities:
Foreclosed real estate acquired	2,251	2,195
Dividends declared but not paid during the period	5,237	4,363
Issuance of common shares under dividend reinvestment plan	0	217
Supplemental disclosure of cash flow information:
Interest paid	59,570	49,671
Income taxes paid	7,215	2,551
2025 8.125% Notes
Cash flows from financing activities:
Proceeds from Notes	0	50,000
8.00% Notes due 2028
Cash flows from financing activities:
Proceeds from Notes	0	40,000
2029 8.50% Notes
Cash flows from financing activities:
Proceeds from Notes	71,875	0
2029 8.625% Notes
Cash flows from financing activities:
Proceeds from Notes	75,000	0
2024 Notes
Cash flows from financing activities:
Redemption of Notes	(38,250)	0
Affiliate Investments
Adjustments to reconcile net income to net cash used in operating activities:
Net unrealized (appreciation) depreciation on investments	$ (9,562)	$ (3,141)

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical)	Sep. 30, 2024	Dec. 31, 2023
Weighted Average Interest Rate	7.33%	7.04%
2025 8.125% Notes | Medium-term Notes
Weighted Average Interest Rate	8.125%	8.125%
8.00% Notes due 2028 | Medium-term Notes
Weighted Average Interest Rate	8%	8%
2029 8.50% Notes | Medium-term Notes
Weighted Average Interest Rate	8.50%	8.50%
2029 8.625% Notes | Medium-term Notes
Weighted Average Interest Rate	8.625%	8.625%

DESCRIPTION OF BUSINESS AND BAS

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: The Company is a financial holding company that is a leading provider of business and financial solutions to independent business owners (SMBs) and provides SMBs with the following Newtek® branded business and financial solutions: Newtek Bank, Newtek Lending, Newtek Payments, Newtek Insurance, Newtek Payroll and Newtek Technology. NewtekOne reports on a consolidated basis the financial condition and results of operations for the following consolidated subsidiaries: Newtek Bank; NSBF; NMS; Mobil Money; NBC; PMT; NIA; TAM; POS; NALH; NCL; and NTS. Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data. The accompanying notes to the consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed on April 1, 2024 (the “2023 Form 10-K”). The unaudited consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and footnotes necessary for a fair presentation of the consolidated financial statements in accordance with U.S. GAAP. In the opinion of management, the consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. The annualized results of operations for the three months ended September 30, 2024 are not necessarily indicative of the results of operations that may be expected for the entire fiscal year. The December 31, 2023 consolidated statement of assets and liabilities has been derived from the audited financial statements as of that date. All intercompany balances and transactions have been eliminated in consolidation. Consolidation The consolidated financial statements include the accounts of NewtekOne, its subsidiaries and certain VIEs. Significant intercompany balances and transactions have been eliminated. The Company considers a voting rights entity to be a subsidiary and consolidates it if the Company has a controlling financial interest in the entity. VIEs are consolidated if NewtekOne has the power to direct the activities of the VIE that significantly impact financial performance and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE (i.e., NewtekOne is the primary beneficiary). The determination of whether the Company is the primary beneficiary of a VIE is reassessed on an ongoing basis. Investments in companies which are not VIEs but in which the Company has more than minor influence over the operating and financial policies are accounted for using the equity method of accounting. Investments in VIEs, where NewtekOne is not the primary beneficiary of a VIE, are accounted for using the equity method of accounting. The maximum potential exposure to losses relative to investments in VIEs is generally limited to the investment balance. Refer to NOTE 4—INVESTMENTS. NTS Sale On August 11, 2024, the Company entered into a definitive agreement (the “NTS Sale Agreement”) to sell NTS (the “NTS Sale”) to Paltalk, Inc. (“Paltalk”). As previously disclosed, in connection with the Acquisition and transition to a financial holding company, the Company made a commitment to the Board of Governors of the Federal Reserve System to divest or terminate the activities of NTS. Pursuant to the NTS Sale Agreement, Paltalk has agreed, at the closing of the NTS Sale, to (i) pay to the Company $4.0 million in cash, subject to certain purchase price adjustments (the “Cash Consideration”) and (ii) issue to the Company 4.0 million shares of a newly created series of Paltalk non-voting preferred stock, the Series A Non-Voting Common Equivalent Stock (the “Preferred Stock”) (the “Stock Consideration,” and together with the Cash Consideration, the “Closing Consideration”). Upon the occurrence of certain specified transfers of the Preferred Stock, each transferred share of Preferred Stock will automatically convert into one share of common stock of Paltalk, subject to certain anti-dilution adjustments. In addition to the Closing Consideration, the Company may be entitled to receive an earn-out amount of up to $5.0 million, payable in cash or Preferred Stock (or a combination thereof, determined in Paltalk’s discretion), based on the achievement of certain cumulative average Adjusted EBITDA thresholds for the 2025 and 2026 fiscal years. The issuance of Preferred Stock to the Company as Stock Consideration or as consideration for the earn-out, if any, will be subject to the limitation that any such issuance of Preferred Stock may not result in the Company’s equity interest in Paltalk exceeding one third of Paltalk’s “total equity,” determined in accordance with the Bank Holding Company Act of 1956, as amended, and to the extent necessary a corresponding increase in the Cash Consideration or cash paid in respect of the earn-out will be made. Following the closing of the NTS Sale, the Company will be entitled to one representative on the Paltalk board of directors. The consummation of the NTS Sale is subject to approval by Paltalk’s stockholders, regulatory approvals and the satisfaction of other closing conditions, including the completion of the divestiture of certain specified assets by Paltalk. At the closing of the NTS Sale, based on the number of shares of Paltalk common stock outstanding as of November 8, 2024, the Company’s equity interest in Paltalk would represent, on an as-converted and fully-diluted basis, approximately 30.2% of Paltalk’s total equity. As a result of the Company’s entry into the NTS Sale Agreement and its anticipation to divest of NTS, t he Company reported NTS as Held for Sale as of September 30, 2024. In addition, as of the date of this filing, the Company has concluded that the assets, liabilities and operations of NTS do not qualify for Discontinued Operations as of September 30, 2024. See NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	Reclassifications and Restatements Certain prior period amounts, to the extent comparable, have been reclassified to conform to the current period presentation. In addition, as disclosed in our 2023 Form 10-K, the Company’s prior year condensed comparative financial statements have been adjusted to correct errors made in the Company’s financial statements previously issued for the first, second, and third quarters of 2023. Balances as of and results for the three and nine months ended September 30, 2023 are presented as restated. Refer to our 2023 Form 10-K for further detail. NOTE 2—SIGNIFICANT ACCOUNTING POLICIES: A more detailed description of our accounting policies is included in the Company’s 2023 Form 10-K, which accounting policies remain significantly unchanged. There have been no other significant changes to our accounting policies, or the estimates made pursuant to those policies as described in our 2023 Form 10-K. Cash and due from banks The Company considers all highly liquid instruments with maturities of three months or less when purchased to be cash equivalents. Invested cash is held exclusively at financial institutions of high credit quality. As of September 30, 2024, cash deposits in excess of insured amounts totaled $32.5 million. The Company has not experienced any losses with respect to cash balances in excess of insured amounts and management does not believe there was a significant concentration of risk with respect to cash balances as of September 30, 2024. Restricted cash Restricted cash includes amounts due on SBA loan-related remittances to third parties, cash reserves established as part of agreements with the SBA, cash reserves associated with securitization transactions, and cash margin as collateral for derivative instruments. As of September 30, 2024, total restricted cash was $27.9 million. Interest bearing deposits in banks The Company’s interest bearing deposits in banks reflects cash held at other financial institutions that earn interest. The following table provides a reconciliation of cash, restricted cash, and interest bearing deposits in banks as of September 30, 2024 and 2023 and December 31, 2023: September 30, 2024 September 30, 2023 December 31, 2023 Cash and due from banks $ 9,688 $ 15,610 $ 15,398 Restricted cash 27,929 70,737 30,919 Interest bearing deposits in banks 152,805 137,346 137,689 Cash and restricted cash $ 190,422 $ 223,693 $ 184,006 Allowance for Credit Losses – Loans Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”) approach requires an estimate of the credit losses expected over the life of a loan (or pool of loans). The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net, lifetime amount expected to be collected on the loans. Loan losses are charged off against the allowance when management believes a loan balance is uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, which generally includes larger non-accruing commercial loans. The discounted cash flow (“DCF”) method is used to estimate expected credit losses for all loan portfolio segments measured on a collective (pool) basis. For each loan segment, cash flow projections are generated at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, probability of default, and loss given default. The modeling of prepayment speeds is based on a combination of historical internal data and peer data. Regression analysis of historical internal and peer data is used to determine suitable loss drivers to utilize when modeling lifetime probability of default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. The SBA 7(a) loan portfolio is the single loan pool where management solely utilizes historical internal data to determine the loss rate as an input to the model. The data utilized represents the most recent economic cycle and management determines the loss rate by analyzing defaulted principal and net charge offs to calculate the historical loss rate. For all loan pools utilizing the DCF method, management utilizes various economic indicators such as changes in unemployment rates, gross domestic product, real estate values, and other relevant factors as loss drivers. For all DCF models, management has determined that due to historic volatility in economic data, four quarters currently represents a reasonable and supportable forecast period, followed by a four-quarter reversion to historical mean levels for each of the various economic indicators. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Specific instrument effective yields are calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value (“NPV”). An allowance is established for the difference between the instrument’s NPV and amortized cost basis. The allowance evaluation also considers various qualitative factors, such as: (i) changes to lending policies, underwriting standards and/or management personnel performing such functions, (ii) delinquency and other credit quality trends, (iii) credit risk concentrations, if any, (iv) changes to the nature of the Company's business impacting the loan portfolio, and (v) other external factors, that may include, but are not limited to, results of internal loan reviews, stress testing, examinations by bank regulatory agencies, or other events such as a natural disaster. Significant management judgment is required at each point in the measurement process. Arriving at an appropriate level of allowance involves a high degree of judgment. The determination of the adequacy of the allowance and provisioning for estimated losses is evaluated regularly based on review of loans, with particular emphasis on non-performing and other loans that management believes warrant special consideration. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. The Company’s historical credit loss experience provides the basis for the estimation of expected credit losses, supplemented with peer loss information, and results in expected probabilities of default and expected losses given default. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, production metrics, property values, or other relevant factors. Expected losses are applied to loans grouped in portfolio segments, which are pools of loans aggregated based on type of borrower and collateral, generally based upon federal call report segmentation. Portfolio segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled. These portfolio segments are as follows: CRE: The CRE portfolio is comprised of loans to borrowers on small offices, owner-occupied commercial buildings, industrial/warehouse properties, income producing/investor real estate properties, and multi-family loans secured by first mortgages. The Company’s underwriting standards generally target a loan-to-value ratio of 75%, depending on the type of collateral, and requires debt service coverage of a minimum of 1.2 times. C&I: The C&I portfolio consists of loans made for general business purposes consisting of short-term working capital loans, equipment loans and unsecured business lines. SBA 7(a): The SBA 7(a) portfolio includes loans originated under the federal Section 7(a) loan program. The SBA is an independent government agency that facilitates one of the nation’s largest sources of SMB financing by providing credit guarantees for its loan programs. SBA 7(a) loans are partially guaranteed by the SBA, with SBA guarantees typically ranging between 50% and 90% of the principal and interest due. Under the SBA’s 7(a) lending program, a bank or other lender licensed by the SBA may underwrite loans between $5.0 thousand and $5.0 million for a variety of general business purposes based on the SBA’s loan program requirements. The guaranteed portion of the loans are HFS and carried at LCM and therefore are not subject to CECL. The unguaranteed portion of the loans that are held on balance sheet at amortized cost are subject to CECL. In the context of CECL, these SBA 7(a) loans are held at Newtek Bank. Individually Evaluated Loans. Loans that do not share risk characteristics with existing pools are evaluated on an individual basis. For loans that are individually evaluated and collateral dependent, financial loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and management expects repayment of the financial asset to be provided substantially through the sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral or going concern, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral. When repayment is expected to be from the sale of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. Accrued Interest. Accrued interest receivable balances are presented within other assets on the consolidated balance sheet. Accrued interest is excluded from the measurement of the allowance for credit losses, including investments and loans. Generally, accrued interest is reversed when a loan is placed on non-accrual or is written-off. Current year accrued interest is reversed through interest income while accrued interest from prior years is written-off through the ACL. Historically, we have not experienced uncollectible accrued interest receivable on investment debt securities. Allowance for off-balance sheet credit exposures. The exposure is a component of other liabilities in the consolidated balance sheet and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include unused portions of lines of credit and standby and commercial letters of credit. The process used to determine the allowance for these exposures is consistent with the process for determining the allowance for loans, as adjusted for estimated funding probabilities or loan equivalency factors. A charge (credit) to provision for credit losses on the consolidated statements of income is made to account for the change in the allowance on off-balance sheet exposures between reporting periods. Allowance for Credit Losses – Available-fo r Sale (“AFS”) Debt Securities The impairment model for AFS debt securities differs from the CECL approach utilized for financial instruments measured at amortized cost because AFS debt securities are measured at fair value. For AFS debt securities in an unrealized loss position, Newtek Bank first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities AFS that do not meet the aforementioned criteria, in making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, failure of the issuer of the debt security to make scheduled interest or principal payments, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. The cash flows should be estimated using information relevant to the collectability of the security, including information about past events, current conditions and reasonable and supportable forecasts. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the AFS security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. As of September 30, 2024, the Company det ermined that the unrealized loss positions in the AFS securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded. Accrued Interest Receivable Upon the Acquisition and adoption of CECL, the Company made the following elections regarding accrued interest receivable: (1) presented accrued interest receivable balances separately within other assets balance sheet line item; (2) excluded interest receivable that is included in amortized cost of financing receivables from related disclosures requirements and (3) continued our policy to write off accrued interest receivable by reversing interest income. For loans, write off typically occurs upon becoming over 90 to 120 days past due. Historically, the Company has not experienced uncollectible accrued interest receivable on investment securities. Settlement Receivable Settlement receivable represents amounts due from third parties for guaranteed portions of SBA 7(a) loans which have been sold at period-end but have not yet settled. The guaranteed portion of SBA 7(a) principal balances that have been sold but not yet settled at September 30, 2024 was $55.9 million. The settlement receivable also includes $6.2 million of premiums, which have been recognized in Net Gains on Sales of Loans. Assets Held for Sale and Liabilities Directly Associated with Assets Held for Sale The Company classifies assets and related liabilities as held for sale when: (i) management has committed to a plan to sell the disposal group, (ii) the disposal group is available for immediate sale, (iii) there is an active program to locate a buyer, (iv) the sale and transfer of the disposal group is probable within one year, (v) the disposal group is being actively marketed for sale at price that is reasonable in relation to its current fair value, and (vi) it is unlikely that significant changes will be made to the plan to sell the disposal group. Assets and liabilities held for sale are presented separately within the consolidated balance sheets with any adjustments necessary to measure the disposal group at the lower of its carrying value or fair value less costs to sell. Depreciation of property and equipment and amortization of intangible and right-of-use assets are not recorded while these assets are classified as held for sale. For each period the disposal group remains classified as held for sale, its recoverability is reassessed and any necessary adjustments are made to its carrying value. Refer to NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE for a discussion of assets and liabilities associated with assets held for sale at September 30, 2024. Income Taxes Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Such deferred tax assets and liabilities recorded on the statements of financial condition were a deferred tax liability, net of $4.7 million and a deferred tax asset, net of $5.2 million at September 30, 2024 and December 31, 2023, respectively. Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to income taxes in the United States and its political subdivisions. Significant judgments and estimates are required in determining the consolidated income tax expense. The Company’s U.S. federal and state income tax returns prior to fiscal year 2020 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. Interest and penalties assessed by tax jurisdictions for income tax matters are presented as income tax expense on the consolidated statement of income. Formerly, as a RIC ending with the Company’s December 31, 2022 fiscal year end, the Company was not subject to corporate level income tax. Beginning on January 1, 2023 with the start of the 2023 fiscal year, the Company no longer qualifies as a RIC and is subject to corporate level income tax. See NOTE 18—INCOME TAXES . Recently Adopted Accounting Pronouncements Current Expected Credit Losses (Topic 326): In June 2016, FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments (Topic 326) and in April 2019, the FASB issued ASU 2019-04 Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (collectively, “CECL”). CECL changed how entities measure potential credit losses for most financial assets and certain other instruments that are not measured at fair value. CECL replaced the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost. While ASU 2016-13 does not require any particular method for determining the CECL allowance, it does specify the allowance should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. CECL was effective for the Company beginning January 1, 2023; however, the Company continues to measure NSBF’s SBA 7(a) loan portfolio at fair value and intends to do so until the portfolio is completely runoff. Following the Acquisition on January 6, 2023, the Company owns and consolidates Newtek Bank, which applies CECL. Troubled Debt Restructurings and Vintage Disclosures (ASU 2022-02): In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The purpose of this guidance is twofold. First, the guidance eliminates TDR recognition and measurement guidance that has been deemed no longer necessary under CECL. The guidance also adds a requirement to incorporate current year gross charge-offs by origination year into the vintage tables. With respect to the TDR impacts, under CECL, credit losses for financial assets measured at amortized cost are determined based on the total current expected credit losses over the life of the financial asset or group of financial assets. Due to the Acquisition, any aspects of credit deterioration to include modifications to loans for borrowers experiencing financial difficulty were captured in purchase accounting and the allowance as of the Acquisition date. Therefore, credit losses on financial assets that have been modified as TDRs would have largely been incorporated in the allowance upon initial recognition. Following the Acquisition on January 6, 2023, the Company owns and consolidates Newtek Bank, which adopted the ASU on January 1, 2023, on a prospective basis. Under ASU 2022-02, the Company evaluated whether loan modifications previously characterized as TDRs represent a new loan or a continuation of an existing loan in accordance with ASC Topic 310, Receivables. The guidance also added new disclosures that require an entity to provide information related to loan modifications made to borrowers deemed to be in financial difficulty. The impact of these amendments was not material. Fair Value Measurement (ASU 2022-03): In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820), which clarifies the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. ASU 2022-03 is effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. An entity that qualifies as an investment company under Topic 946 should apply the amendments in ASU No. 2022-03 to an investment in an equity security subject to a contractual sale restriction that is executed or modified on or after the date of adoption. The impact of these amendments was not material. New Accounting Standards Improvements to Reportable Segment Disclosures (ASU 2023-07): In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The purpose of this guidance is to improve reportable segment disclosure, primarily through enhanced disclosures about significant segment expenses. This ASU requires that an entity disclose, on an interim and annual basis, significant segment expenses that are regularly provided to the CODM and are included within the reported measure of segment profit or loss. This ASU also requires an entity to disclose, on an interim and annual basis, other segment items by reportable segment, including a qualitative description of the composition of those items. This “other” category is defined as the difference between segment profit or loss and segment revenue less significant segment expenses. Entities are also required to disclose the title and position of the individual, or the name of the group or committee, identified as the CODM. The amendments are effective on January 1, 2024, for annual reporting, and January 1, 2025, for interim reporting, with early adoption permitted. The amendments must be applied using a retrospective approach. Management does not expect the impact to be material. Improvements to Income Tax Disclosures (ASU 2023-09): In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The purpose of this guidance is to enhance the rate reconciliation and income taxes paid disclosures. This ASU requires that an entity disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. For the state and local income tax category of the rate reconciliation, entities must disclose a qualitative description of the states and local jurisdictions that make up the majority (greater than 50 percent) of the category. For the income taxes paid disclosures, entities will be required to disclose, on an annual basis, the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes. The amendments are effective on January 1, 2025, with early adoption permitted. The amendments must be applied using either a prospective or retrospective approach. Management does not expect the impact of these amendments to be material. Compensation—Stock Compensation (ASU 2024-01): In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This standard is effective for fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not anticipate it will have a material impact on its consolidated financial statements.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
BUSINESS COMBINATIONS	NOTE 3—BUSINESS COMBINATIONS Acquisition of NBNYC On January 6, 2023, the Company completed the Acquisition of NBNYC, a national bank regulated and supervised by the OCC, pursuant to which the Company acquired from the NBNYC shareholders all of the issued and outstanding stock of NBNYC for $20 million, in an all-cash transaction. The Company also agreed to pay the seller’s acquisition costs of approximately $1.3 million. NBNYC was renamed Newtek Bank and became a wholly owned subsidiary of the Company. In connection with the completion of the Acquisition, the Company contributed to Newtek Bank $31 million of cash and two of the Company’s subsidiaries, NBL and SBL (NBL was subsequently merged into SBL). Upon the consummation of the Acquisition, Newtek Bank entered into an operating agreement with the OCC concerning certain matters including capital, liquidity and concentration limits, and memorializing the business plan submitted to the OCC. The NBNYC transaction was accounted for in accordance with ASC 805, Business Combinations, and the Company performed a purchase price allocation under the acquisition method. Under ASC 805, if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report in its financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, which shall not exceed one year from the acquisition date, the acquirer shall adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. The purchase price, including costs incurred by the Company on behalf of the seller directly associated with the Acquisition, was preliminarily allocated to net assets acquired. Final allocation was obtained and the purchase allocations finalized at December 31, 2023. The following table summarizes the allocation of consideration paid for the fair value of assets acquired and liabilities assumed from NBNYC: Purchase price consideration $ 21,281 Fair value of assets acquired: Cash and due from banks 29,138 Interest-bearing deposits in banks 3,284 Total cash and cash equivalents 32,422 Available-for-sale securities (at fair value) 5,004 Other investments 1,226 Loans receivable 159,155 Federal Reserve Bank stock, at cost 54 Federal Home Loan Bank stock, at cost 1,470 Accrued interest receivable 353 Deferred income taxes 495 Goodwill 271 Core deposit intangible 1,040 Other assets 399 Total assets $ 201,889 Fair value of liabilities assumed: Deposits: Demand $ 21,878 Savings, Super NOW, and Money Market 10,975 Certificates of deposit 104,162 Total deposits 137,015 Advances from the Federal Home Loan Bank 27,817 Accrued expenses and other liabilities 15,776 Total liabilities $ 180,608 In connection with the Acquisition, the Company recorded $0.3 million of goodwill, which represents the excess of the purchase price over the fair value of the net assets acquired. Goodwill is an asset representing the acquired future economic benefits such as synergies that are not individually identified and separately recognized (i.e., it is measured as a residual). The amount of goodwill recognized is also impacted by measurement differences resulting from certain assets and liabilities not being recorded at fair value (e.g., income taxes, employee benefits). In accordance with ASC 805-30-30-1, the measurement of goodwill occurs on the Acquisition Date and, other than qualifying measurement period adjustments, no adjustments are made to goodwill recognized as of the Acquisition Date until and unless it becomes impaired. ASC 805 provides for a period of time during which the acquirer may adjust provisional amounts recognized at the acquisition date to their subsequently determined acquisition-date fair values, referred to as the “measurement period.” Adjustments during the measurement period are not limited to just those relating to assets acquired and liabilities assumed but apply to all aspects of business combination accounting (e.g., the consideration transferred). Measurement-period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. Prior period information is not revised, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. In accordance with ASC 805, the Company recorded a measurement period adjustment and decreased goodwill by $1.0 million related to the finalization of the consideration transferred. Information regarding the allocation of goodwill to the Company’s reportable segments, as well as the carrying amounts and amortization of the core deposit intangible, can be found within NOTE 8—GOODWILL AND INTANGIBLE ASSETS. None of the goodwill is tax deductible. Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed in the NBNYC Acquisition. Cash and cash equivalents. The estimated fair values of cash and cash equivalents approximate their stated face amounts, as these financial instruments are either due on demand or have short-term maturities. Investment securities available-for-sale . Quoted market prices for the securities acquired were used to determine their fair values. If quoted market prices were not available for a specific security, then quoted prices for similar securities in active markets were used to estimate the fair value. Loans. Each loan was assessed individually. The fair values for loans were estimated using a discounted cash flow methodology that considered factors including the type of loan and the related collateral, classification status, fixed or variable interest rate, remaining term, amortization status, and current discount rates. In addition, the probability of default, loss given default, and prepayment assumptions that were derived based on loan characteristics, historical loss experience, comparable market data, and current and forecasted economic conditions were used to estimate expected credit losses. The discount rates used for loans and leases were based on current market rates for new originations or comparable loans and leases and include adjustments for liquidity. The discount rate did not include credit losses as that was included as a reduction to the estimated cash flows. We determined the fair value of the PCD loans using the asset and income approach. We used the income approach for PCD loans where there was evidence that the borrower may be able to continue to service the loan and more likely than not continue to pay. We used the asset approach for PCD loans when the loan is on non-accrual status. Acquired loans were marked to fair value and adjusted for any PCD gross up as of the Acquisition Date. Core Deposit Intangible. CDI is a measure of the value of non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts that are acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding, relative to an alternative source of funding. The CDI relating to the NBNYC Acquisition will be amortized over an estimated useful life of 10 years using the sum of years digits depreciation method. The Company evaluates such identifiable intangibles for impairment when an indication of impairment exists. Deposit Liabilities. The fair values used for the demand and savings deposits by definition equal the amount payable on demand at the Acquisition date. The fair values for time deposits were estimated using a discounted cash flow methodology that applies interest rates currently being offered to the contractual interest rates on such time deposits. Borrowings . The estimated fair value of borrowed funds is based on bid quotations received from securities dealers or the discounted value of contractual cash flows with interest rates currently in effect for borrowed funds with similar maturities. PCD loans. Purchased loans that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. For PCD loans and leases, the initial estimate of expected credit losses is recognized in the ACL on the date of acquisition using the same methodology as other loans and leases held-for-investment. The following table provides a summary of loans and leases purchased as part of the NBNYC Acquisition with credit deterioration and associated credit loss reserve at acquisition: Par value (unpaid principal balance) $ 42,443 ACL at acquisition (870) Non-credit (discount) (1,559) Fair Value $ 40,014 Transaction costs describe the broad category of costs the Company incurs in connection with signed and/or closed acquisitions. Transaction costs include expenses associated with legal, accounting, regulatory, and other transition services rendered in connection with acquisition, travel expense, and other non-recurring direct expenses associated with acquisitions. The Company incurred transaction costs related to the NBNYC Acquisition during the year ended December 31, 2023 of $0.2 million. These costs have been included in the Consolidated Statement of Operations in Professional services expense.

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]
INVESTMENTS	NOTE 4—INVESTMENTS: Investments consisted of the following at: September 30, 2024 December 31, 2023 Cost Fair Value Cost Fair Value Debt securities available-for-sale, at fair value $ 23,734 $ 23,790 $ 32,372 $ 32,171 Federal Home Loan Bank and Federal Reserve Bank stock 3,608 3,608 3,635 3,635 Non-controlled investments 680 740 796 728 Joint ventures, at fair value 43,321 55,750 37,864 40,859 Total investments $ 71,343 $ 83,888 $ 74,667 $ 77,393 The Company’s Alternative Lending Program (ALP) NCL JV: On May 20, 2019, the Company and its joint venture partner launched NCL JV to provide ALP loans (formerly referred to as non-conforming conventional commercial and industrial term loans) to U.S. middle-market companies and small businesses. NCL JV is a 50/50 joint venture between NCL a wholly-owned subsidiary of the Company, and Conventional Lending TCP Holding, LLC, a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (Nasdaq: TCPC). NCL JV ceased funding new ALP loans during 2020. On January 28, 2022, NCL JV closed a securitization with the sale of $56.3 million of Class A Notes, NCL Business Loan Trust 2022-1, Business Loan-Backed Notes, Series 2022-1, secured by a segregated asset pool consisting primarily of NCL JV’s portfolio of ALP loans secured by liens on commercial or residential mortgaged properties, originated by NCL JV and NBL. The Notes were rated “A” (sf) by DBRS Morningstar. The Notes were priced at a yield of 3.209%. The proceeds of the securitization were used, in part, to repay NCL JV’s credit facility and return capital to the NCL JV partners. The following tables show certain summarized financial information for NCL JV: Selected Statement of Assets and Liabilities Information (Unaudited) September 30, 2024 December 31, 2023 Cash $ 606 $ 612 Restricted cash 1,895 3,298 Investments in loans, at FV (amortized cost of $61,933 and $68,403, respectively) 62,962 70,083 Other assets 1,616 1,614 Total assets $ 67,079 $ 75,607 Securitization notes payable $ 30,834 $ 38,805 Other liabilities 832 905 Total liabilities 31,666 39,710 Net assets 35,413 35,897 Total liabilities and net assets $ 67,079 $ 75,607 Selected Statements of Operations Information (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Interest and other income $ 1,202 $ 1,291 $ 3,766 $ 4,576 Total expenses 442 614 1,374 1,923 Net investment income 760 677 2,392 2,653 Unrealized (depreciation) appreciation on investments 417 (216) (652) 1,713 Net increase in net assets resulting from operations $ 1,177 $ 461 $ 1,740 $ 4,366 TSO JV: On August 5, 2022, NCL and TSO II Booster Aggregator, L.P. (“TSO II”) entered into a joint venture, TSO JV, governed by the Amended and Restated Limited Partnership Agreement for the TSO JV. TSO JV began making investments in ALP loans during the fourth quarter of 2022. NCL and TSO II each committed to contribute an equal share of equity funding to the TSO JV and each have equal voting rights on all material matters. On July 23, 2024, TSO JV closed a securitization backed by ALP loans, selling $137.2 million of Class A Notes and $17.2 million of Class B Notes (collectively, the “TSO Notes”) issued by NALP Business Loan Trust 2024-1. The TSO Notes were backed by $190.5 million of collateral, consisting of Company originated ALP loans . The Class A and Class B Notes received Morningstar DBRS ratings of “A (sf)” and “BBB (high) (sf),” respectively. TSO JV ceased investing in new ALP loans in July 2023. The following tables show certain summarized financial information for TSO JV: Selected Statement of Assets and Liabilities Information (Unaudited) September 30, 2024 December 31, 2023 Cash $ 620 $ 4,401 Restricted cash 5,093 1,183 Investments in loans, at FV (amortized cost of $188,019 and $62,696, respectively) 198,403 66,689 Other assets 5,233 1,374 Total assets $ 209,349 $ 73,647 Bank notes payable $ — $ 29,636 Securitization notes payable 142,719 — Other liabilities 377 1,092 Total liabilities 143,096 30,728 Net assets 66,253 42,919 Total net assets $ 209,349 $ 73,647 Selected Statements of Operations Information (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Interest and other income $ 5,722 $ 876 $ 12,405 $ 1,968 Total expenses 3,114 1,424 6,678 3,042 Net investment income (loss) 2,608 (548) 5,727 (1,074) Unrealized appreciation on investments 2,114 1,464 6,392 1,270 Realized loss on investments — — — (16) Realized gain (loss) on derivative transactions (1,436) 351 (391) 518 Unrealized (loss) gain on derivative transactions 832 (151) 694 (146) Net increase in net assets resulting from operations $ 4,118 $ 1,116 $ 12,422 $ 552 Transactions with Affiliated Companies An affiliated company is an unconsolidated entity in which the Company has an ownership of 5% or more of its voting securities. Transactions related to our joint ventures and non-controlled investments for the nine months ended September 30, 2024 and 2023 were as follows: Company Fair Value at December 31, 2023 Purchases (Cost) Return of Investment Net Gains/(Losses) Fair Value at September 30, 2024 Dividend Income Joint Ventures Newtek Conventional Lending, LLC $ 19,400 $ — $ — $ (500) $ 18,900 $ 1,112 Newtek TSO II Conventional Credit Partners, LP 21,459 25,642 (20,185) 9,934 36,850 — Total Joint Ventures $ 40,859 $ 25,642 $ (20,185) $ 9,434 $ 55,750 $ 1,112 Non-Control Investments EMCAP Loan Holdings, LLC $ 368 $ — $ (116) $ 68 $ 320 $ 16 Biller Genie Software, LLC 360 — — 60 420 — Total Non-Control Investments $ 728 $ — $ (116) $ 128 $ 740 $ 16 Total Affiliate Investments $ 41,587 $ 25,642 $ (20,301) $ 9,562 $ 56,490 $ 1,128 Company Fair Value at December 31, 2022 Purchases (Cost) Return of Investment Net Gains/(Losses) Fair Value at September 30, 2023 Dividend Income Joint Ventures Newtek Conventional Lending, LLC $ 16,587 $ 248 $ — $ 2,865 $ 19,700 $ 1,302 Newtek TSO II Conventional Credit Partners, LP 6,435 14,302 — 276 21,013 — Total Joint Ventures $ 23,022 $ 14,550 $ — $ 3,141 $ 40,713 $ 1,302 Non-Control Investments EMCAP Loan Holdings, LLC $ 1,000 $ — $ — $ — $ 1,000 $ 95 Biller Genie Software, LLC 360 — — — 360 — Total Non-Control Investments $ 1,360 $ — $ — $ — $ 1,360 $ 95 Total Affiliate Investments $ 24,382 $ 14,550 $ — $ 3,141 $ 42,073 $ 1,397 Debt Securities Available-for-Sale The following tables summarize the amortized cost and fair value of available-for-sale securities by major type as of September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasury notes $ 20,734 $ 78 $ 2 $ 20,810 $ 29,372 $ — $ 67 $ 29,304 Government agency debentures 3,000 — 20 2,980 3,000 — 134 2,867 Total available for sale securities $ 23,734 $ 78 $ 22 $ 23,790 $ 32,372 $ — $ 201 $ 32,171 As of September 30, 2024 and December 31, 2023, there was $13.6 thousand and $0.2 million of accrued interest receivable on available-for-sale securities, respectively, included in Other assets During the three and nine months ended September 30, 2024 and 2023, securities sold or settled were as follows:. Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 # $ # $ # $ # $ Securities sold or settled two settled $10,000 none $— three settled $39,500 none $— Unrealized Losses The following tables summarize the gross unrealized losses and fair value of available-for-sale securities by length of time each major security type has been in a continuous unrealized loss position: September 30, 2024 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Holdings Fair Value Unrealized Losses U.S. Treasury notes $ 3,957 $ 2 $ — $ — 1 $ 3,957 $ 2 Government agency debentures 2,980 — — 20 2 2,980 20 Total $ 6,937 $ 2 $ — $ 20 $ 3 $ 6,937 $ 22 December 31, 2023 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Holdings Fair Value Unrealized Losses U.S. Treasury notes $ 29,304 $ 67 $ — $ — 1 $ 29,304 $ 67 Government agency debentures 2,867 134 — — 2 2,867 134 Total $ 32,171 $ 201 $ — $ — 3 $ 32,171 $ 201 Management evaluates available-for-sale debt securities to determine whether the unrealized loss is due to credit-related factors or non-credit-related factors. The evaluation considers the extent to which the security’s fair value is less than cost, the financial condition and near-term prospects of the issuer, and intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. These unrealized losses are primarily the result of non-credit-related volatility in the market and market interest rates. Since none of the unrealized losses relate to marketability of the securities or the issuers' ability to honor redemption obligations and the Company has the intent and ability to hold the securities for a sufficient period of time to recover unrealized losses, none of the losses have been recognized in the Company’s Consolidated Statements of Income. Contractual Maturities The following table summarizes the amortized cost and fair value of available-for-sale securities by contractual maturity: September 30, 2024 At December 31, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Maturing within 1 year $ 15,722 $ 15,723 $ 32,372 $ 32,171 After 1 year through 5 years 8,012 8,067 — — Total available for sale securities $ 23,734 $ 23,790 $ 32,372 $ 32,171 Other information The following table summarizes Newtek Bank’s available-for-sale securities pledged for deposits, borrowings, and other purposes: September 30, 2024 December 31, 2023 Pledged for deposits $ — $ — Pledged for borrowings and other 23,790 30,730 Total available for sale securities pledged $ 23,790 $ 30,730

LOANS

LOANS	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
LOANS	NOTE 5—LOANS : Loans held for investment (HFI), at fair value Loans HFI, at fair value includes SBA 7(a) loans originated by NSBF. On occasion, NSBF has distributed loans to NewtekOne that were originated as SBA 7(a) loans by NSBF where the SBA guarantee has been subsequently repurchased by NSBF. The following table shows the Company’s loan portfolio by industry for loans HFI, at fair value: Loans HFI, at Fair Value September 30, 2024 December 31, 2023 Cost Fair Value Cost Fair Value Food Services and Drinking Places $ 34,783 $ 36,835 $ 43,779 $ 43,955 Professional, Scientific, and Technical Services 31,885 32,384 36,248 35,377 Specialty Trade Contractors 30,964 30,776 40,193 35,451 Ambulatory Health Care Services 22,289 22,559 27,291 26,633 Amusement, Gambling, and Recreation Industries 17,383 18,430 21,289 22,839 Administrative and Support Services 17,425 17,003 21,319 19,521 Merchant Wholesalers, Durable Goods 16,094 15,638 21,873 21,152 Repair and Maintenance 13,201 14,304 15,886 17,005 Personal and Laundry Services 13,120 13,890 12,867 13,584 Merchant Wholesalers, Nondurable Goods 11,970 11,852 15,623 15,573 Social Assistance 8,544 9,303 8,857 9,721 Fabricated Metal Product Manufacturing 9,832 9,227 12,439 13,205 Truck Transportation¹ 11,388 8,897 15,590 12,113 Construction of Buildings 9,056 8,423 9,868 9,890 Food Manufacturing² 8,994 8,392 10,233 8,714 Accommodation 7,701 8,144 9,259 10,162 Support Activities for Mining 7,209 7,082 8,455 7,754 Transportation Equipment Manufacturing 6,519 6,897 7,687 7,999 Rental and Leasing Services 6,159 6,482 6,764 7,178 Food and Beverage Stores 6,167 6,408 7,026 7,306 Motor Vehicle and Parts Dealers 6,208 6,303 9,046 9,382 Nursing and Residential Care Facilities 5,834 6,234 6,182 6,709 Educational Services 4,528 4,822 5,368 5,636 Building Material and Garden Equipment and Supplies Dealers 4,334 4,476 7,384 6,781 Other 3 79,570 79,710 102,037 96,161 Total $ 391,157 $ 394,471 $ 482,563 $ 469,801 (1) Truck Transportation includes one loan at NewtekOne of $2.1 million Cost and $1.0 million Fair value as of September 30, 2024, and $2.1 million Cost and $1.1 million Fair Value as of December 31, 2023. (2) Food Manufacturing includes one loan at NewtekOne of $4.7 million Cost and $4.2 million Fair Value as of September 30, 2024, and $4.7 million Cost and $3.4 million Fair Value as of December 31, 2023. (3) Other includes one loan at NewtekOne of $0.3 million Cost and $0.2 million Fair Value as of December 31, 2023. Loans HFI, at amortized cost, net of deferred fees and costs Loans HFI, at amortized cost, net of deferred fees and costs includes SBA 7(a) loans, CRE, and C&I loans originated and held by Newtek Bank. The following table shows the Company’s loan portfolio by industry for loans HFI, at amortized cost: Loans HFI, at Amortized Cost September 30, 2024 December 31, 2023 SBA $ 319,324 $ 163,918 CRE 178,875 163,803 C&I 19,989 8,191 Total Loans 518,188 335,912 Deferred fees and costs, net 301 393 Loans held for investment, at amortized cost, net of deferred fees and costs $ 518,489 $ 336,305 Past Due and Non-Accrual Loans HFI Loans HFI, at fair value The following tables summarize the aging of accrual and non-accrual loans HFI, at fair value by class: As of September 30, 2024 Past Due and Accruing Non- accrual Total Past Due and Non-accrual Current Total Accounted for Under the FV Option 30-59 Days 60-89 Days 90-119 Days 120+ Days SBA, at fair value $ 23 $ 19,927 $ 9,634 $ 435 $ 59,599 $ 89,618 $ 304,853 $ 394,471 As of December 31, 2023 Past Due and Accruing Non- accrual Total Past Due and Non-accrual Current Total Accounted for Under the FV Option 30-59 Days 60-89 Days 90-119 Days 120+ Days SBA, at fair value $ 20,380 $ 16,075 $ — $ — $ 48,174 $ 84,629 $ 385,172 $ 469,801 The following tables summarize the aging of accrual and non-accrual loans HFI, at amortized cost by class: As of September 30, 2024 Past Due and Accruing Non- accrual Total Past Due and Non-accrual Current Total Carried at Amortized Cost 30-59 Days 60-89 Days 90-119 Days 120+ Days At amortized cost SBA $ — $ 3,120 $ — $ — $ 15,918 $ 19,038 $ 300,286 $ 319,324 CRE 5,397 47 — — 3,670 9,114 169,761 178,875 C&I — — — — — — 19,989 19,989 Total, at amortized cost $ 5,397 $ 3,167 $ — $ — $ 19,588 $ 28,152 $ 490,036 $ 518,188 Deferred fees and costs 301 Total, at amortized cost net of deferred fees and costs $ 518,489 Allowance for credit losses (26,045) Total, at amortized cost, net $ 492,444 As of December 31, 2023 Past Due and Accruing Non- accrual Total Past Due and Non-accrual Current Total Carried at Amortized Cost 30-59 Days 60-89 Days 90-119 Days 120+ Days At amortized cost SBA $ 3,637 $ 311 $ — $ — $ 752 $ 4,700 $ 159,218 $ 163,918 CRE 948 — — — 4,621 5,569 158,234 163,803 C&I — — — — — — 8,191 8,191 Total, at amortized cost $ 4,585 $ 311 $ — $ — $ 5,373 $ 10,269 $ 325,643 $ 335,912 Deferred fees and costs 393 Total, at amortized cost net of deferred fees and costs $ 336,305 Allowance for credit losses (12,574) Total, at amortized cost, net $ 323,731 Credit Quality Indicators The Company uses internal loan reviews to assess the performance of individual loans. In addition, an independent review of the loan portfolio is performed annually by an external firm. The goal of the Company’s annual review of each borrower’s financial performance is to validate the adequacy of the risk grade assigned. The Company uses a grading system to rank the quality of each loan and lease. The grade is periodically evaluated and adjusted as performance dictates. Loan and lease grades 1 through 4 are passing grades and grade 5 is special mention. Collectively, grades 6 through 7 represent classified loans in Newtek Bank’s portfolio. The following guidelines govern the assignment of these risk grades: Exceptional (1 Rated): These loans are of the highest quality, with strong, well-documented sources of repayment. These loans and leases will typically have multiple demonstrated sources of repayment with no significant identifiable risk to collection, exhibit well-qualified management, and have liquid financial statements relative to both direct and indirect obligations. Quality (2 Rated): These loans are of very high credit quality, with strong, well-documented sources of repayment. These loans and leases exhibit very strong, well defined primary and secondary sources of repayment, with no significant identifiable risk of collection and have internally generated cash flow that more than adequately covers current maturities of long-term debt. Satisfactory (3 Rated): These loans exhibit satisfactory credit risk and have excellent sources of repayment, with no significant identifiable risk of collection. These loans and leases have documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. They have adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor. Acceptable (4 Rated): These loans show signs of weakness in either adequate sources of repayment or collateral but have demonstrated mitigating factors that minimize the risk of delinquency or loss. These loans and leases may have unproved, insufficient or marginal primary sources of repayment that appear sufficient to service the debt at this time. Repayment weaknesses may be due to minor operational issues, financial trends, or reliance on projected performance. They may also contain marginal or unproven secondary sources to liquidate the debt, including combinations of liquidation of collateral and liquidation value to the net worth of the borrower or guarantor. Special mention (5 Rated): These loans show signs of weaknesses in either adequate sources of repayment or collateral. These loans and leases may contain underwriting guideline tolerances and/or exceptions with no mitigating factors; and/or instances where adverse economic conditions develop subsequent to origination that do not jeopardize liquidation of the debt but substantially increase the level of risk. Substandard (6 Rated): Loans graded Substandard are inadequately protected by current sound net worth, paying capacity of the obligor, or pledged collateral. Loans and leases classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These loans and leases are consistently not meeting the repayment schedule. Doubtful (7 Rated): Loans graded Doubtful have all the weaknesses inherent in those classified as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. The ability of the borrower to service the debt is extremely weak, overdue status is constant, the debt has been placed on non-accrual status, and no definite repayment schedule exists. Once the loss position is determined, the amount is charged off. Loss (8 Rated): Loss rated loans are considered uncollectible and of such little value that their continuance as assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this credit even though partial recovery may be affected in the future. The following tables present asset quality indicators by portfolio class and origination year at September 30, 2024 and December 31, 2023: September 30, 2024 Term Loans HFI by Origination Year 2024 2023 2022 2021 2020 Prior Total SBA, at fair value Risk Grades 1-4 $ — $ 26,474 $ 125,599 $ 44,975 $ 23,537 $ 110,949 $ 331,534 Risk Grades 5-6 — 2,668 16,268 6,406 1,500 35,895 62,737 Risk Grade 7 — — — — — — — Risk Grade 8 — — 145 17 22 16 200 Total $ — $ 29,142 $ 142,012 $ 51,398 $ 25,059 $ 146,860 $ 394,471 SBA, at amortized cost, net of deferred fees and costs Risk Grades 1-4 $ 158,014 $ 126,586 $ — $ — $ — $ — $ 284,600 Risk Grades 5-6 3,347 26,225 — — — — 29,572 Risk Grade 7 387 4,718 — — — — 5,105 Risk Grade 8 25 22 — — — — 47 Total $ 161,773 $ 157,551 $ — $ — $ — $ — $ 319,324 CRE, at amortized cost, net of deferred fees and costs Risk Grades 1-4 $ 32,692 $ 26,017 $ 33,343 $ 16,430 $ 396 $ 64,678 $ 173,556 Risk Grades 5-6 47 — — — 880 4,392 5,319 Risk Grade 7 — — — — — — — Total $ 32,739 $ 26,017 $ 33,343 $ 16,430 $ 1,276 $ 69,070 $ 178,875 C&I, at amortized cost, net of deferred fees and costs Risk Grades 1-4 $ 17,001 $ 971 $ — $ — $ — $ 2,017 $ 19,989 Risk Grades 5-6 — — — — — — — Risk Grade 7 — — — — — — — Total $ 17,001 $ 971 $ — $ — $ — $ 2,017 $ 19,989 Total $ 211,513 $ 213,681 $ 175,355 $ 67,828 $ 26,335 $ 217,947 $ 912,659 December 31, 2023 Term Loans HFI by Origination Year 2023 2022 2021 2020 2019 Prior Total SBA, at fair value Risk Grades 1-4 $ 34,289 $ 151,929 $ 53,998 $ 27,870 $ 52,175 $ 94,751 $ 415,012 Risk Grades 5-6 349 8,968 5,813 1,257 11,764 25,727 53,878 Risk Grade 7 — — — — — — — Risk Grade 8 — 149 17 22 16 707 911 Total $ 34,638 $ 161,046 $ 59,828 $ 29,149 $ 63,955 $ 121,185 $ 469,801 SBA, at amortized cost, net of deferred fees and costs Risk Grades 1-4 $ 161,263 $ — $ — $ — $ — $ — $ 161,263 Risk Grades 5-6 2,655 — — — — — 2,655 Risk Grade 7 — — — — — — — Risk Grade 8 — — — — — — — Total $ 163,918 $ — $ — $ — $ — $ — $ 163,918 CRE, at amortized cost, net of deferred fees and costs Risk Grades 1-4 $ 53,567 $ 28,224 $ 14,590 $ — $ 8,888 $ 49,771 $ 155,040 Risk Grades 5-6 — — 948 910 2,284 4,621 8,763 Risk Grade 7 — — — — — — — Total $ 53,567 $ 28,224 $ 15,538 $ 910 $ 11,172 $ 54,392 $ 163,803 C&I, at amortized cost, net of deferred fees and costs Risk Grades 1-4 $ 6,174 $ — $ — $ — $ — $ 2,017 $ 8,191 Risk Grades 5-6 — — — — — — — Risk Grade 7 — — — — — — — Total $ 6,174 $ — $ — $ — $ — $ 2,017 $ 8,191 Total $ 258,297 $ 189,270 $ 75,366 $ 30,059 $ 75,127 $ 177,594 $ 805,713 Allowance for Credit Losses See NOTE 2—SIGNIFICANT ACCOUNTING POLICIES for a description of the methodologies used to estimate the ACL. The following table details activity in the ACL for the nine months ended September 30, 2024: September 30, 2024 September 30, 2023 CRE C&I SBA Total CRE C&I SBA Total Beginning balance $ 1,408 $ 314 $ 10,852 $ 12,574 $ — $ — $ — $ — Adjustment to beginning balance due to PCD marks 1 — — — — 774 96 — 870 Charge offs (236) — (2,697) (2,933) — — — — Recoveries — — — — — — — Provision for credit losses 2 98 (286) 16,592 16,404 657 220 6,462 7,339 Ending balance $ 1,270 $ 28 $ 24,747 $ 26,045 $ 1,431 $ 316 $ 6,462 $ 8,209 1 Given the January 6, 2023 transition to a financial holding company, the Company established an ACL with the beginning balance representing the purchased credit deteriorated loans acquired through the NBNYC Acquisition. 2 Excludes $0.3 million of Provision for credit losses relating to unfunded commitments for the nine months ended September 30, 2024, which is recorded within Accounts payable, accrued expenses and other liabilities in accordance with ASC 326. The following table details activity in the ACL for the three months ended September 30, 2024 and 2023. September 30, 2024 September 30, 2023 CRE C&I SBA Total CRE C&I SBA Total Beginning balance $ 1,358 $ 215 $ 19,525 $ 21,098 $ 1,373 $ 267 $ 3,124 $ 4,764 Charge offs — — (1,763) (1,763) — — — — Recoveries — — — — — — — — Provision for credit losses 1 (88) (187) 6,985 6,710 58 49 3,338 3,445 Total $ 1,270 $ 28 $ 24,747 $ 26,045 $ 1,431 $ 316 $ 6,462 $ 8,209 The Company identified 62 and five loans as of September 30, 2024 and December 31, 2023, respectively, that did not share similar risk characteristics with the loan segments identified in NOTE 2—SIGNIFICANT ACCOUNTING POLICIES and evaluated them for impairment individually. The following table presents the individually evaluated and collectively evaluated ACL by segment: September 30, 2024 December 31, 2023 ACL CRE C&I SBA Total CRE C&I SBA Total Individually Evaluated $ — $ — $ 6,324 $ 6,324 $ — $ — $ 102 $ 102 Collectively Evaluated 1,270 28 18,423 19,721 1,408 314 10,750 12,472 Total $ 1,270 $ 28 $ 24,747 $ 26,045 $ 1,408 $ 314 $ 10,852 $ 12,574 The following table presents the recorded investment in loans individually evaluated and collectively evaluated by segment: September 30, 2024 December 31, 2023 Recorded Investment CRE C&I SBA Total CRE C&I SBA Total Individually Evaluated $ 3,670 $ — $ 15,918 $ 19,588 $ 4,621 $ — $ 727 $ 5,348 Collectively Evaluated 175,205 19,989 303,406 498,600 159,182 8,191 163,191 330,564 Total $ 178,875 $ 19,989 $ 319,324 $ 518,188 $ 163,803 $ 8,191 $ 163,918 $ 335,912 The amortized cost basis of loans on nonaccrual status and the individually assessed ACL are as follows: September 30, 2024 December 31, 2023 Nonaccrual without Allowance Nonaccrual with Allowance ACL Nonaccrual without Allowance Nonaccrual with Allowance ACL SBA $ 5,800 $ 10,118 $ 6,324 $ 625 $ 102 $ 102 CRE 3,670 — — 4,621 — — Total $ 9,470 $ 10,118 $ 6,324 $ 5,246 $ 102 $ 102 The unpaid contractual principal balance and recorded investment for the loans individually assessed is shown in the table below by type: September 30, 2024 December 31, 2023 Real Estate Collateral Non-Real Estate Collateral Total ACL Real Estate Collateral Non-Real Estate Collateral Total ACL SBA $ 14,806 $ 1,112 $ 15,918 $ 6,324 $ 625 $ 102 $ 727 $ 102 CRE 3,670 — 3,670 — 4,621 — 4,621 — Total $ 18,476 1,112 19,588 6,324 $ 5,246 102 5,348 102 Accrued interest on loans totaled $13.6 million and $10.7 million as of September 30, 2024 and December 31, 2023, respectively, and is excluded from the estimate of credit losses. The Company writes off accrued interest receivable by reversing interest income and typically occurs upon loans becoming 91 to 120 days past due. Loan Modifications Made to Borrowers Experiencing Financial Difficulty The Company did not make any loan modifications to borrowers experiencing financial difficulty that would require disclosure, such as principal forgiveness, term extension, or interest rate reductions during the three and nine months ended September 30, 2024 and 2023. Additionally there were no troubled debt restructurings under legacy U.S. GAAP during the three and nine months ended September 30, 2024 and 2023. Loans held for sale September 30, 2024 December 31, 2023 At FV At LCM At FV At LCM SBA 504 First Lien $ 121,843 $ 37,442 $ 66,387 $ 38,787 SBA 504 Second Lien 14,317 8,092 20,757 5,741 SBA 7(a) 3,119 — 262 64 SBA 7(a) Partials — 13,674 104 11,237 ALP 102,946 — 31,357 — Subtotal 242,225 59,208 118,867 55,829 Deferred fees and costs — 995 — 778 Loans held for sale, net of deferred fees and costs $ 242,225 $ 60,203 $ 118,867 $ 56,607

TRANSACTIONS WITH AFFILIATED CO

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS	NOTE 6—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS: Due to/from affiliated companies The following table summarizes the amounts due to and due from affiliated companies as of September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Due to affiliated companies 1 $ 246 $ 158 Due from affiliated companies 2 5 7 Total due to/due from affiliated companies $ 241 $ 151 1 Included within Other assets 2 Included within Accounts payable, accrued expenses, and other liabilities Transactions with joint ventures and non-control investments Refer to NOTE 4—INVESTMENTS for a schedule of transactions with our joint ventures and non-control equity investments. The following table summarizes the income earned from our joint ventures for the periods ended September 30, 2024 and 2023: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Servicing income $ 576 $ 345 $ 1,446 $ 855 Dividend income 373 330 1,112 1,302 Total income $ 949 $ 675 $ 2,558 $ 2,157 Newtek Bank Deposits In the normal course of business, Newtek Bank holds FDIC insured deposits from certain of the Company’s officers, directors and their associated companies. The following table summarizes the amounts due of deposits from related parties and their affiliated companies as of September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 FDIC insured deposits $ 4,707 $ 4,388 Non-FDIC insured deposits 1,348 1,167 Total deposits from related parties and their affiliated companies $ 6,055 $ 5,555

SERVICING ASSETS

SERVICING ASSETS	9 Months Ended
	Sep. 30, 2024
Transfers and Servicing [Abstract]
SERVICING ASSETS	NOTE 7—SERVICING ASSETS: Servicing assets held by NSBF are measured at fair value and the Company performs valuations on a quarterly basis. Servicing assets held by Newtek Bank, including Newtek Bank’s subsidiary SBL, are measured at lower of cost or market where the assets are initially recorded at fair value, then subsequently amortized, and assessed for impairment each reporting period. The Company earns servicing fees from the guaranteed portions of SBA 7(a) loans it originates and sells and for the portfolios of ALP loans SBL services for NCL JV and TSO JV. As of September 30, 2024 the Company services $1.9 billion in SBA 7(a) loans and $183.8 million in ALP loans. The following tables summarizes the fair value and valuation assumptions related to servicing assets at September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Weighted Range Weighted Range Unobservable Input Amount Average Minimum Maximum Amount Average Minimum Maximum Servicing assets at FV: $ 23,967 $ 29,336 Discount factor 1 12.50 % 12.50 % 12.50 % 13.50 % 13.50 % 13.50 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % 19.00 % 19.00 % 19.00 % Servicing assets at LCM: 22,144 10,389 Discount factor 1 13.09 % 12.00 % 13.50 % 13.50 % 13.50 % 13.50 % Cumulative prepayment rate 35.53 % 22.50 % 75.00 % 29.76 % 22.50 % 75.00 % Average cumulative default rate 19.25 % 19.00 % 20.00 % 19.14 % 19.00 % 20.00 % Total $ 46,111 $ 39,725 1 Determined based on risk spreads and observable secondary market transactions. Refer to NOTE 10—FAIR VALUE MEASUREMENTS for a rollforward of servicing assets at fair value. The following tables show a rollforward of servicing assets measured at LCM for the nine months ended September 30, 2024 and 2023: Servicing Assets, at LCM September 30, 2024 December 31, 2023 $ 10,389 Amortization 1 (2,959) Additions 1 14,715 Impairment assessment — September 30, 2024 $ 22,145 1 Included within Net gains on sales of loans in the Consolidated Statements of Income Servicing Assets, at LCM September 30, 2023 December 31, 2022 $ — Additions/(removal) of entities consolidating after Conversion to BHC 486 Amortization 1 (360) Additions 1 6,872 Impairment assessment — September 30, 2023 $ 6,998 1 Included within Net gains on sales of loans in the Consolidated Statements of Income Servicing fee income earned for the three and nine months ended September 30, 2024 and 2023 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Servicing fee income $4,958 $4,602 $14,922 $13,304

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	NOTE 8—GOODWILL AND INTANGIBLE ASSETS: Goodwill The following table summarizes changes in the carrying amount of goodwill: September 30, 2024 December 31, 2023 Banking $ 271 $ 271 Payments 13,814 13,814 Technology 1 — 11,800 Total goodwill $ 14,085 $ 25,885 1 The technology goodwill is classified as Held for Sale in anticipation of the NTS Sale. Refer to NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE. Banking: In connection with the Acquisition, the Company recorded $0.3 million of goodwill, which represents the excess of the purchase price over the fair value of the net assets acquired. Goodwill is an asset representing the acquired future economic benefits such as synergies that are not individually identified and separately recognized (i.e., it is measured as a residual). The amount of goodwill recognized is also impacted by measurement differences resulting from certain assets and liabilities not being recorded at fair value (e.g., income taxes, employee benefits). In accordance with ASC 805-30-30-1, the measurement of goodwill occurs on the Acquisition Date and, other than qualifying measurement period adjustments, no adjustments are made to goodwill recognized as of the Acquisition Date until and unless it becomes impaired. Payments and Technology: The goodwill in the payments and technology segments was generated from acquisitions by the legal entities within those segments prior to the consolidation of the those entities into NewtekOne following the Acquisition. Intangible Assets The following table summarizes intangible assets: At September 30, 2024 At December 31, 2023 Gross carrying Amount Accumulated Amortization Net Carrying amount Gross carrying Amount Accumulated Amortization Net Carrying amount Core Deposits $ 1,040 $ (331) $ 709 $ 1,040 $ (197) $ 843 Payments Customer Lists — — — 8,575 (8,562) 13 Technology Customer Lists¹ — — — 6,525 (3,146) 3,379 Total intangible assets $ 1,040 $ (331) $ 709 $ 16,140 $ (11,905) $ 4,235 1 The technology customer lists are classified as Held for Sale in anticipation of the NTS Sale. Refer to NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE. The Company had $0.7 million and $0.8 million of core deposits at Newtek Bank as of September 30, 2024 and December 31, 2023, respectively. In addition, as of December 31, 2023, the Company had $3.4 million of intangible assets relating to customer lists. Core Deposit Intangible. CDI is a measure of the value of non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts that are acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding, relative to an alternative source of funding. The CDI relating to the NBNYC Acquisition will be amortized over an estimated useful life of 10 years using the sum of years digits depreciation method. The Company evaluates such identifiable intangibles for impairment when an indication of impairment exists. Customer Lists. The intangible asset for customer lists are within the technology segment and existed prior to the consolidation of the technology segment into NewtekOne following the Acquisition. The payments customer list has been disposed of. Amortization expense for the three and nine months ended September 30, 2024 and 2023 is as follows, and is included in Depreciation and amortization on the Consolidated Statements of Income: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Amortization expense $192 $387 $593 $1,198 The remaining estimated aggregate future amortization expense for intangible assets as of September 30, 2024 is as follows: Amortization Expense 2024 $ 42 2025 156 2026 135 2027 114 2028 94 Thereafter 168 Total $ 709

ASSETS AND LIABILITIES DIRECTLY

ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE	9 Months Ended
	Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]
ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE	NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE As a result of our entry into the NTS Sale Agreement and our anticipation to divest of NTS (consistent with our commitments to the Federal Reserve), NTS’s net assets are represented as a held-for-sale. The following tables present the assets classified as held for sale and the liabilities directly associated with assets classified as held for sale as of September 30, 2024: ASSETS LIABILITIES Held for Sale Directly Associated with Assets Held for Sale Cash and due from banks $ 1,464 Lease liabilities $ 685 Goodwill 11,800 Deferred tax liabilities, net 1,542 Intangibles 3,030 Accounts payable, accrued expenses and other liabilities 2,738 Right of use assets 619 Other assets 3,606 $ 20,519 $ 4,965 Goodwill The goodwill in the payments and technology segments was generated from acquisitions by the legal entities within those segments prior to the consolidation of the those entities into NewtekOne following the 2023 Acquisition. Intangibles The intangible asset for customer lists within the technology segment existed prior to the consolidation of the technology segment into NewtekOne following the Acquisition. As of September 30, 2024 Gross carrying Amount Accumulated Amortization Net Carrying amount Technology Customer Lists $ 6,525 $ (3,495) $ 3,030 Right of use assets and lease liabilities Under ASC 842, operating lease expense is generally recognized on a straight-line basis over the term of the lease. The Company has entered into operating lease agreements for office space with remaining contractual terms up to 1 year, some of which include renewal options. These renewal options are not considered in the remaining lease term unless it is reasonably certain the Company will exercise such options. The operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. As the rate implicit in the leases generally is not readily determinable for our operating leases, the discount rates used to determine the present value of our lease liability are based on our incremental borrowing rate at the lease commencement date and commensurate with the remaining lease term. Our incremental borrowing rate for a lease is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are excluded from our weighted-average remaining lease term.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 10—FAIR VALUE MEASUREMENTS: The following tables present fair value measurements of certain of the Company’s assets and liabilities measured at fair value and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values as of September 30, 2024 and December 31, 2023: Fair Value Measurements at September 30, 2024 Total Level 1 Level 2 Level 3 Assets: Debt securities available-for-sale U.S. Treasury notes $ 20,810 $ 20,810 $ — $ — Government agency debentures 2,980 — 2,980 — Loans held for sale, at fair value 242,225 — — 242,225 Loans held for investment, at fair value 394,471 — — 394,471 Other real estate owned 1 2,199 — — 2,199 Non-controlled/affiliate investments 740 — — 740 Servicing assets 2 23,967 — — 23,967 Joint ventures 55,750 — — 55,750 Total assets measured at fair value $ 743,142 $ 20,810 $ 2,980 $ 719,352 Liabilities: Equity warrants 3 $ 108 $ — $ — $ 108 Derivative instruments ,3,4 68 — 68 — Total liabilities measured at fair value $ 176 $ — $ 68 $ 108 1 Included in Other assets on the Consolidated Statements of Financial Condition. 2 $24.0 million of servicing assets at held at FV and $22.1 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS. 3 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition. 4 Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. Fair Value Measurements at December 31, 2023 Total Level 1 Level 2 Level 3 Assets: Debt securities available-for-sale U.S. Treasury notes $ 29,304 $ 29,304 $ — $ — Government agency debentures 2,867 — 2,867 — Loans held for sale, at fair value 118,867 — — 118,867 Loans held for investment, at fair value 469,801 — — 469,801 Other real estate owned 1 1,110 — — 1,110 Non-controlled/affiliate investments 728 — — 728 Servicing assets 2 29,336 — — 29,336 Joint ventures 40,859 — — 40,859 Total assets measured at fair value $ 692,872 $ 29,304 $ 2,867 $ 660,701 Liabilities: Equity warrants 3 $ 141 $ — $ — $ 141 Derivative instruments 3,4 630 — 630 — Total liabilities measured at fair value $ 771 $ — $ 630 $ 141 1 Included in Other assets on the Consolidated Statements of Financial Condition. 2 $29.3 million of servicing assets held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS 2 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition. 3 Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The following tables represents the changes in the investments, servicing assets and liabilities measured at fair value using Level 3 inputs for the nine months ended September 30, 2024 and 2023: Nine Months Ended September 30, 2024 Loans HFI, at FV Loans HFS, at FV Joint Ventures Servicing Assets, at FV Non-Control Investments Warrant Liabilities 2 Other Real Estate Owned 1 Fair value, December 31, 2023 $ 469,801 $ 118,867 $ 40,859 $ 29,336 $ 728 $ 141 $ 1,110 Reclasses between loans at FV and LCM 263 2,508 — — — — — Sales (2,888) (166,648) — — — — (956) Principal payments received (54,656) (9,375) — — — — — Foreclosed real estate acquired (2,251) — — — — — 2,251 SBA loans, funded 122 12,966 — — — — — ALP loans, funded — 191,440 — — — — — Mortgage loans, funded — 79,432 — — — — — Additions — — — 14 — — — Purchases and repurchases of loans 1,296 — — — — — — Capital contributions/(distributions) — — 5,457 — (116) — — Change in valuation due to: Changes in valuation inputs or assumptions 2,614 13,058 9,434 805 128 (33) (206) Other factors (19,830) (23) — (6,188) — — — Fair value, September 30, 2024 $ 394,471 $ 242,225 $ 55,750 $ 23,967 $ 740 $ 108 $ 2,199 1 Included in Other assets on the Consolidated Statements of Financial Condition. 2 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition. Nine Months Ended September 30, 2023 Loans HFI, at FV Loans HFS, Controlled Investments Joint Ventures Servicing Assets, Non-Control Investments Warrant Liabilities 2 Other Real Estate Owned 1 Fair value, December 31, 2022 $ 505,268 $ 19,168 $ 259,217 $ 23,022 $ 30,268 $ 1,360 $ — $ 3,529 Net gain (loss) on loans under the fair value option 12,132 456 Additions/(removal) of entities — 69,745 (259,217) — — — — — Reclass of Loans HFS to HFI 5,879 (24,712) — — — — — — Change in valuation due to: Changes in valuation inputs or assumptions — — — 3,141 3,584 — — — Other factors — — — — (5,150) — — (240) Realized gain (loss) (18,032) 13,700 — — — — (117) (457) SBA investments, funded 38,616 161,742 — — — — — — ALP loans, funded — 44,660 — — — — — — Foreclosed real estate acquired (2,195) — — — — — — 2,195 Purchases and repurchases of loans 9,461 5,279 — 14,550 — — — — Sales — (212,673) — — — — — (2,198) Principal payments received (58,142) (6,898) — — — — — — Additions — — — — 2,590 — 311 — Fair Value, September 30, 2023 $ 492,987 $ 70,467 $ — $ 40,713 $ 31,292 $ 1,360 $ 194 $ 2,829 1 Included in Other assets on the Consolidated Statements of Financial Condition. 2 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition. The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of September 30, 2024 and December 31, 2023. In addition to the inputs noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The tables below are not intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements at September 30, 2024 and December 31, 2023. Fair Value as of Weighted Range September 30, 2024 Unobservable Input Average Minimum Maximum Assets: Loans HFI, at FV - accrual $ 334,872 Market yields 6.55 % 6.55 % 6.55 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % Loans HFI, at FV - non-accrual $ 59,599 Market yields 6.66 % 6.66 % 6.66 % Cumulative prepayment rate — % — % — % Average cumulative default rate 30.00 % 30.00 % 30.00 % Loans HFS, at FV $ 242,225 Market yields 7.03 % 6.44 % 7.61 % Cumulative prepayment rate 75.00 % 75.00 % 75.00 % Average cumulative default rate 12.50 % 5.00 % 20.00 % Joint ventures $ 55,750 Market yields 7.61 % 7.61 % 7.61 % Cost of equity 11.00 % 8.00 % 14.00 % Weighted average cost of capital 7.50 % 6.00 % 9.00 % Non-control equity investments $ 740 Market yields 10.00 % 8.00 % 12.00 % Weighted average cost of capital 23.20 % 23.20 % 23.20 % Servicing assets 1 $ 23,967 Market yields 12.50 % 12.50 % 12.50 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % Other real estate owned $ 2,199 Appraised value N/A N/A N/A Liabilities: Equity warrants $ 108 Expected volatility 45.00 % 45.00 % 45.00 % Dividend yield 6.10 % 6.10 % 6.10 % Risk free rate 3.73 % 3.73 % 3.73 % 1 $24.0 million of servicing assets at held at FV and $22.1 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS. Fair Value as of Weighted Range December 31, 2023 Unobservable Input Average Minimum Maximum Assets: Loans HFI, at FV - accrual $ 421,627 Market yields 7.75 % 7.75 % 7.75 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % Loans HFI, at FV - non-accrual $ 48,174 Market yields 7.39 % 7.39 % 7.39 % Cumulative prepayment rate — % — % — % Average cumulative default rate 30.00 % 30.00 % 30.00 % Loans HFS, at FV $ 118,867 Market yields 6.85 % 6.50 % 7.75 % Cumulative prepayment rate 61.03 % 55.60 % 75.00 % Average cumulative default rate 20.00 % 20.00 % 20.00 % Joint ventures $ 40,859 Market yields 8.00 % 8.00 % 8.00 % Cost of equity 12.00 % 10.00 % 14.00 % Weighted average cost of capital 8.50 % 7.50 % 9.50 % Non-control equity investments $ 368 Market yields 10.00 % 8.00 % 12.00 % $ 360 Cost N/A N/A N/A Servicing assets 1 $ 29,336 Market yields 13.50 % 13.50 % 13.50 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % Other real estate owned $ 1,110 Appraised value N/A N/A N/A Liabilities: Equity warrants $ 141 Expected volatility 43.00 % 43.00 % 43.00 % Dividend yield 5.20 % 5.20 % 5.20 % Risk free rate 3.88 % 3.88 % 3.88 % 1 $29.3 million of servicing assets held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS Estimated Fair Value of Other Financial Instruments GAAP also requires disclosure of the fair value of financial instruments carried at book value on the Consolidated Statements of Financial Condition. The carrying amounts and estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis are as follows: September 30, 2024 Carrying Amount Fair Value Amount by Level: Total Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 9,688 $ 9,688 $ — $ — $ 9,688 Restricted cash 27,929 27,929 — — 27,929 Interest bearing deposits in banks 152,805 152,805 — — 152,805 Debt securities available-for-sale, at FV 23,790 20,810 2,980 — 23,790 Loans HFS, at FV 242,225 — — 242,225 242,225 Loans HFS, at LCM 60,203 — — 60,256 60,256 Loans HFI, at FV 394,471 — — 394,471 394,471 Total loans HFI, at amortized cost, net of deferred fees and costs 518,489 — — 554,506 554,506 Federal Home Loan Bank and Federal Reserve Bank stock 3,608 — 3,608 — 3,608 Joint ventures, at FV 55,750 — — 55,750 55,750 Non-control investments 740 — — 740 740 Financial Liabilities: Time deposits 256,774 — 277,569 — 277,569 Borrowings 655,834 — 301,213 361,273 662,486 December 31, 2023 Carrying Amount Fair Value Amount by Level: Total Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 15,398 $ 15,398 $ — $ — $ 15,398 Restricted cash 30,919 30,919 — — 30,919 Interest bearing deposits in banks 137,689 137,689 — — 137,689 Debt securities available-for-sale, at FV 32,171 29,305 2,866 — 32,171 Loans HFS, at FV 118,867 — — 118,867 118,867 Loans HFS, at LCM 56,607 — — 56,733 56,733 Loans HFI, at FV 469,801 — — 469,801 469,801 Total loans HFI, at amortized cost, net of deferred fees and costs 336,305 — — 337,133 337,133 Federal Home Loan Bank and Federal Reserve Bank stock 3,635 — 3,635 — 3,635 Joint ventures, at FV 40,859 — — 40,859 40,859 Non-control investments 728 — — 728 728 Financial Liabilities: Time deposits 167,041 — 168,542 — 168,542 Borrowings 644,122 — 187,555 454,239 641,794

DEPOSITS

DEPOSITS	9 Months Ended
	Sep. 30, 2024
Banking and Thrift, Interest [Abstract]
DEPOSITS	NOTE 11—DEPOSITS: The following table summarizes deposits by type: September 30, 2024 December 31, 2023 Non-interest-bearing: Demand $ 11,040 $ 10,053 Interest-bearing: Checking 67,204 11,456 Money market 56,482 15,803 Savings 257,958 259,152 Time deposits 256,774 167,041 Total interest-bearing 638,418 453,452 Total deposits $ 649,458 $ 463,505 Time deposits, money market, and interest-bearing checking obtained through brokers $ 64,550 $ 53,548 Aggregate amount of deposit accounts that exceeded the FDIC limit $ 94,239 $ 66,511 Demand deposit overdrafts reclassified as loan balances $ 7 $ 53 Certificates of deposit in excess of $0.25 million $ 55,025 $ 20,070 The following table summarizes the scheduled maturities of time deposits: 2024 $ 120,204 2025 79,340 2026 36,059 2027 20,361 2028 671 Thereafter 139 Total time deposits $ 256,774

BORROWINGS

BORROWINGS	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
BORROWINGS	NOTE 12—BORROWINGS: At September 30, 2024 and December 31, 2023, the Company had borrowings composed of the following: September 30, 2024 December 31, 2023 Commitments Borrowings Outstanding Weighted Average Interest Rate Commitments Borrowings Outstanding Weighted Average Interest Rate Bank Lines of Credit 1 : Webster NMS Note $ 54,871 $ 33,666 7.30 % $ 54,871 $ 36,628 7.94 % SPV I Capital One Facility 60,000 7,561 8.01 % 60,000 16,080 8.20 % SPV II Deutsche Bank Facility 50,000 328 9.98 % 50,000 6,799 10.04 % SPV III One Florida Bank Facility 30,000 (104) 9.00 % 30,000 257 9.50 % FHLB Advances 2 106,507 15,800 2.23 % 113,891 23,184 2.13 % Notes issued by Parent Company 1 : 2024 Notes 3 — — — % 38,250 38,124 5.75 % 2025 5.00% Notes 30,000 29,825 5.00 % 30,000 29,563 5.00 % 2025 8.125% Notes 50,000 49,825 8.13 % 50,000 49,433 8.13 % 2026 Notes 115,000 114,102 5.50 % 115,000 113,564 5.50 % 2028 Notes 40,000 38,639 8.00 % 40,000 38,378 8.00 % 2029 8.50% Notes 71,875 69,500 8.50 % — — — % 2029 8.625% Notes 75,000 72,525 8.63 % — — — % Notes payable - Securitization Trusts 4 227,301 224,167 7.79 % 296,223 292,112 7.84 % Total $ 910,554 $ 655,834 7.33 % $ 878,235 $ 644,122 7.04 % 1 Net of deferred financing costs. Negative borrowings outstanding are the result of the facilities being paid down to zero principal balance as of September 30, 2024 while the associated deferred financing costs remain 2 At September 30, 2024 and December 31, 2023, the carrying amount of Newtek Bank’s FHLB borrowings includes a $0.1 million and $0.2 million purchase accounting adjustment, respectively. 3 On August 1, 2024, the 2024 Notes matured. 4 At September 30, 2024 and December 31, 2023, the net assets of the consolidated Trusts totaled $13.9 million and $14.8 million, respectively. Outstanding borrowings that are presented net of deferred financing costs, which include the bank lines of credit, the 2024, 2025, 2026, 2028, and 2029 Notes, and the Notes payable - Securitization Trusts, consisted of the following: September 30, 2024 December 31, 2023 Principal balance Unamortized deferred financing costs Net carrying amount 1 Principal balance Unamortized deferred financing costs Net carrying amount 1 Bank Lines of Credit: Webster NMS Note $ 33,890 $ (224) $ 33,666 $ 36,881 $ (253) $ 36,628 SPV I Capital One Facility 7,600 (39) 7,561 16,300 (220) 16,080 SPV II Deutsche Bank Facility 346 (18) 328 6,900 (101) 6,799 SPV III One Florida Bank Facility — (104) (104) 375 (118) 257 Notes issued by Parent Company: 2024 Notes — — — 38,250 (126) 38,124 2025 5.00% Notes 30,000 (175) 29,825 30,000 (437) 29,563 2025 8.125% Notes 50,000 (175) 49,825 50,000 (567) 49,433 2026 Notes 115,000 (898) 114,102 115,000 (1,436) 113,564 2028 Notes 40,000 (1,361) 38,639 40,000 (1,622) 38,378 2029 8.50% Notes 71,875 (2,375) 69,500 — — — 2029 8.625% Notes 75,000 (2,475) 72,525 — — — Notes Payable - Securitization Trusts 227,301 (3,134) 224,167 296,223 (4,111) 292,112 1 Net of deferred financing costs. The fair values of the 2029 Notes, 2028 Notes, 2026 Notes and 2024 Notes are based on the closing public share price on the date of measurement as included in the chart below. September 30, 2024 December 31, 2023 Closing Price Fair Value Closing Price Fair Value 2029 8.625% Notes $ 25.10 $ 75,300 $ — $ — 2029 8.50% Notes 25.10 72,163 — — 2028 Notes 25.34 40,544 25.04 40,070 2026 Notes 24.61 113,206 23.75 109,250 2024 Notes — — 24.99 38,235 Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the three and nine months ended September 30, 2024 and 2023 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Total interest expense $ 12,976 $ 13,447 $ 38,923 $ 38,933

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	9 Months Ended
	Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	NOTE 13—DERIVATIVE INSTRUMENTS: The Company historically uses derivative instruments primarily to economically manage the fair value variability of certain fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. The following is a breakdown of the derivatives outstanding as of September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Fair Value Remaining Fair Value Remaining Contract Type Notional 1 Asset Liability 2 Maturity (years) Notional 1 Asset Liability 2 Maturity (years) 5-year Treasury Futures $ (60,038) $ — $ 68 0.25 years $ (27,869) $ — $ 630 0.25 years 1 Shown as a negative number when the position is sold short. 2 Shown in Accounts payable, accrued expenses, and other liabilities in the accompanying Consolidated Statements of Financial Condition. The following table indicates the net realized gains (losses) and unrealized appreciation (depreciation) on derivatives as included in Other noninterest income in the Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023: Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Contract Type Unrealized Appreciation/(Depreciation) Realized Gain/(Loss) Unrealized Appreciation/(Depreciation) Realized Gain/(Loss) Unrealized Appreciation/(Depreciation) Realized Gain/(Loss) Unrealized Appreciation/(Depreciation) Realized Gain/(Loss) 5-year Treasury Futures $ 356 $ (2,015) $ (441) $ 1,158 $ 562 $ (1,527) $ 54 $ 843 Collateral posted with our futures counterparty is segregated in the Company’s books and records. Historically, the Company’s counterparty has held cash margin as collateral for derivatives, which is included in restricted cash in the consolidated balance sheets. Interest rate futures are centrally cleared by the Chicago Mercantile Exchange (“CME”) through a futures commission merchant. The Company is required to post initial margin and daily variation margin for interest rate futures that are centrally cleared by CME. CME determines the fair value of our centrally cleared futures, including daily variation margin. Variation margin pledged on the Company’s centrally cleared interest rate futures is settled against the realized results of these futures.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 14—COMMITMENTS AND CONTINGENCIES: Operating and Employment Commitments The Company leases office space and other office equipment in several states under operating lease agreements which expire at various dates through 2027. Those office space leases which are for more than one year generally contain scheduled rent increases or escalation clauses. In addition, during 2024, the Company entered into one-year employment agreements with its named executive officers. The following summarizes the Company’s obligations and commitments, as of September 30, 2024 for future minimum cash payments required under operating lease and employment agreements: Year Operating Leases Employment Agreements 1 Total 2024 $ 527 $ 866 $ 1,393 2025 2,147 902 3,049 2026 2,028 — 2,028 2027 478 — 478 2028 — — — Thereafter — — — Total $ 5,180 $ 1,768 $ 6,948 1 Employment agreements with certain of the Company’s named executive officers. Legal Matters The Company and its subsidiaries are routinely subject to actual or threatened legal proceedings, including litigation and regulatory matters, arising in the ordinary course of business. Litigation matters range from individual actions involving a single plaintiff to class action lawsuits and can involve claims for substantial or indeterminate alleged damages or for injunctive or other relief. Regulatory investigations and enforcement matters may involve formal or informal proceedings and other inquiries initiated by various governmental agencies, law enforcement authorities, and self-regulatory organizations, and can result in fines, penalties, restitution, changes to the Company’s business practices, and other related costs, including reputational damage. At any given time, these legal proceedings are at varying stages of adjudication, arbitration, or investigation, and may relate to a variety of topics. Assessment of exposure that could result from legal proceedings is complex because these proceedings often involve inherently unpredictable factors, including, but not limited to, the following: whether the proceeding is in early stages; whether damages or the amount of potential fines, penalties, and restitution are unspecified, unsupported, or uncertain; whether there is a potential for punitive or other pecuniary damages; whether the matter involves legal uncertainties, including novel issues of law; whether the matter involves multiple parties and/or jurisdictions; whether discovery or other investigation has begun or is not complete; whether material facts may be disputed or unsubstantiated; whether meaningful settlement discussions have commenced; and whether the matter involves class allegations. As a result of these complexities, the Company may be unable to develop an estimate or range of loss. The Company evaluates legal proceedings based on information currently available, including advice of counsel. The Company establishes accruals for those matters, pursuant to ASC 450, when a loss is considered probable and the related amount is reasonably estimable. While the final outcomes of legal proceedings are inherently unpredictable, management is currently of the opinion that the outcomes of pending and threatened matters will not have a material effect on the Company’s business, consolidated financial position, results of operations or cash flows as a whole. As available information changes, the matters for which the Company is able to estimate, as well as the estimates themselves, will be adjusted accordingly. The Company’s estimates are subject to significant judgment and uncertainties, and the matters underlying the estimates will change from time to time. In the event of unexpected future developments, it is possible that an adverse outcome in any such matter could be material to the Company’s business, consolidated financial position, results of operations, or cash flows as a whole for any particular reporting period of occurrence. In addition. as a result of a litigation brought by the Federal Trade Commission (the “FTC”) in October 2012, NMS voluntarily entered into, and continues to operate under, a permanent injunction with respect to certain of its business practices. Unfunded Commitments At September 30, 2024, the Company had $102.5 million of unfunded commitments, consisting of $17.5 million in connection with its SBA 7(a) loans, $73.4 million in connection with its SBA 504 loans, and $11.6 million relating to commercial and industrial loans. There were no unfunded commitments in connection with the Company’s ALP loans. The Company anticipates these commitments will be funded from the same sources it used to fund its other loan commitments.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 15—SHAREHOLDERS EQUITY: Preferred Stock On February 3, 2023, we entered into a Securities Purchase Agreement (the “Securities Purchase Agreement”) with Patriot Financial Partners IV, L.P., and Patriot Financial Partners Parallel IV, L.P. (collectively, “Patriot”) in respect of 20 thousand shares of the Company’s Series A Convertible Preferred Stock, par value $0.02 per share (the “Series A Preferred Stock”), in a private placement transaction. The aggregate purchase price was $20.0 million. Each share of Series A Preferred Stock was issued at a price of $1.0 thousand per share and is convertible at the holder’s option into 47.54053782 shares of the Company’s Common Stock. The Company had not issued preferred stock prior to February 3, 2023. Warrants for Common Stock On February 3, 2023, pursuant to the Securities Purchase Agreement, the Company issued warrants to Patriot to purchase, in the aggregate, 47.54 thousand shares of Common Stock for $21.03468 per share. The Warrants are exercisable in whole or in part until the ten year anniversary of the entry into the Securities Purchase Agreement and may be exercised for cash or on a “net share” basis, with the number of shares withheld determined based on the closing price of the Common Stock on the date of such exercise. Warrants are included in Accounts payable, accrued expenses and other liabilities on the Consolidated Statements of Financial Condition. Common Stock ATM Program The Company’s shelf registration statement on Form S-3 was declared effective by the SEC on July 27, 2023. On November 17, 2023, the Company entered into the 2023 ATM Equity Distribution Agreement. The 2023 ATM Equity Distribution Agreement provides that the Company may offer and sell up to 3.0 million shares of Common Stock from time to time through the placement agents (the “ATM Program”). The Company may, subject to market conditions, engage in activity under the ATM Program. The following table summarizes the total shares sold and net proceeds received under the 2023 ATM Equity Distribution Agreement: Nine Months Ended September 30, 2024 Year Ended December 31, 2023 Shares sold 1,100 — Net weighted average price per share $ 12.56 $ — Net proceeds $ 13,818 $ — Placement agent fees paid $ 282 $ — We used the net proceeds for funding investments in accordance with our investment objective and strategies and for general corporate purposes including repaying outstanding indebtedness and other general corporate purposes. Dividends and Distributions The following table summarizes dividend declarations and distributions on the Series A Preferred Stock during the nine months ended September 30, 2024 and 2023: Date Declared Record Date Payment Date Amount Per Share Cash Distribution Nine months ended September 30, 2024 March 19, 2024 March 28, 2024 April 1, 2024 $ 20.00 $ 400 June 27, 2024 June 28, 2024 July 1, 2024 $ 20.00 $ 400 September 16, 2024 September 30, 2024 October 1, 2024 $ 20.00 $ 400 Nine months ended September 30, 2023 April 13, 2023 March 20, 2023 April 14, 2023 $ 12.44 $ 249 June 27, 2023 June 27, 2023 July 1, 2023 $ 20.00 $ 400 September 27, 2023 September 27, 2023 October 2, 2023 $ 20.00 $ 400 The Company’s dividends and distributions on the Company’s common shares are recorded on the declaration date. Effective December 8, 2023, the Company terminated the DRIP. The following table summarizes the Company’s dividend declarations and distributions, including DRIP shares and dividend shares issued on vested restricted stock awards, during the nine months ended September 30, 2024 and 2023: Record Date Payment Date Amount Per Share Cash Distribution DRIP Shares Issued Dividend Shares Issued Date Declared # $ # $ Nine months ended September 30, 2024 March 19, 2024 April 1, 2024 April 15, 2024 $ 0.19 $ 4,617 — $ — 6 $ 71 June 27, 2024 July 9, 2024 July 19, 2024 $ 0.19 $ 4,827 — $ — 5 $ 78 September 16, 2024 October 10, 2024 October 21, 2024 $ 0.19 $ 4,837 — $ — 8 $ 114 Nine months ended September 30, 2023 February 27, 2023 April 4, 2023 April 14, 2023 $ 0.18 $ 4,291 6 $ 72 5 $ 60 June 27, 2023 July 10, 2023 July 21, 2023 $ 0.18 $ 4,293 4 $ 73 3 $ 60 September 27, 2023 October 10, 2023 October 20, 2023 $ 0.18 $ 4,293 6 $ 71 5 $ 63

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
EARNINGS PER SHARE	NOTE 16—EARNINGS PER SHARE: Three Months Ended Nine Months Ended 2024 2023 2024 2023 (as restated) Basic earnings per share: Net income available to common shareholders $ 11,534 $ 10,519 $ 31,329 $ 35,431 Weighted-average basic shares outstanding 25,425 24,277 24,773 24,255 Basic earnings per share $ 0.45 $ 0.43 $ 1.26 $ 1.46 Diluted earnings per share: Net income, for diluted earnings per share $ 11,534 $ 10,519 $ 31,329 $ 35,431 Add: Preferred dividends on dilutive Series A convertible preferred stock¹ 400 — — — Net income, for diluted earnings per share 11,934 10,519 31,329 35,431 Total weighted-average basic shares outstanding 25,425 24,277 24,773 24,255 Add effect of dilutive restricted stock awards² 213 136 151 81 Add effect of dilutive Series A convertible preferred stock³ 951 — — — Total weighted-average diluted shares outstanding⁴ 26,589 24,413 24,924 24,336 Diluted earnings per share $ 0.45 $ 0.43 $ 1.26 $ 1.46 Anti-dilutive warrants, restricted stock awards, and Series A convertible preferred stock 48 1,009 998 1,166 1 For periods presented other than the three months ended September 30, 2024, the Series A convertible preferred stock was antidilutive and, therefore, the preferred dividends have not been added back to the numerator of Net income, for diluted earnings per share. 2 Incremental diluted shares from restricted stock awards under the treasury stock method. 3 Incremental diluted shares from Series A convertible preferred stock under the treasury stock method. The dilutive effect on common shares under the if-converted method of the Series A convertible preferred stock have been added back to the denominator in calculating diluted earnings per share for the three months ended September 30, 2024. 4

BENEFIT PLANS

BENEFIT PLANS	9 Months Ended
	Sep. 30, 2024
Retirement Benefits [Abstract]
BENEFIT PLANS	NOTE 17—BENEFIT PLANS: Defined Contribution Plan The Company’s employees participate in a defined contribution 401(k) plan (the “Plan”) adopted in 2004 which covers substantially all employees based on eligibility. The Plan is designed to encourage savings on the part of eligible employees and qualifies under Section 401(k) of the Code. Under the Plan, eligible employees may elect to have a portion of their pay, including overtime and bonuses, reduced each pay period, as pre-tax contributions up to the maximum allowed by law. The Company may elect to make a matching contribution equal to a specified percentage of the participant’s contribution, on their behalf as a pre-tax contribution. Stock-based Compensation Plans Restricted Stock Awards The Company accounts for its stock-based compensation plan using the fair value method, as prescribed by ASC 718, Compensation—Stock Compensation. Accordingly, for restricted stock awards, the Company measures the grant date fair value based upon the market price of its Common Stock on the date of the grant and amortizes the fair value of the awards as stock-based compensation expense over the requisite service period, which is generally the vesting term. The Compensation, Corporate Governance and Nominating Committee of the Board approves the issuance of awards of restricted stock to employees and directors pursuant to the 2023 Stock Incentive Plan, which was approved by the Board in April 2023 and the Company’s shareholders on June 14, 2023. No new awards may be granted under the 2015 Stock Incentive Plan, which was terminated by the Board in April 2023. The following table summarizes the restricted stock issuances under the 2015 and 2023 Stock Incentive Plans, net of shares forfeited, if any: 2023 Plan 2 2015 Plan Restricted Stock authorized under the plan 1 3.0 million 1.5 million Net restricted stock (granted)/forfeited during: Year ended December 31, 2020 and prior — (223) Year ended December 31, 2021 — (215) Year ended December 31, 2022 — (251) Year ended December 31, 2023 (82) 28 Nine months ended September 30, 2024 (213) — Total net restricted stock (granted)/forfeited (295) (661) 1 No stock options were granted under the 2015 or 2023 Stock Incentive Plans. 2 The 2023 Stock Incentive Plan provides for an initial share reserve of up to 3.0 million shares of Common Stock. Awards of restricted stock granted under the 2015 and 2023 Stock Incentive Plans generally vest over a one one Details of the Company’s outstanding shares related to restricted stock awards as of September 30, 2024 and December 31, 2023 are outlined below: September 30, 2024 December 31, 2023 Shares outstanding related to grants of restricted stock awards 487 345 Weighted average grant date fair value of awards $15.90 $19.18 Additional shares outstanding related to dividends on awards 46 44 As of September 30, 2024 and December 31, 2023, the Company’s total unrecognized compensation expense related to unvested shares of restricted stock granted was as follows. September 30, 2024 December 31, 2023 Unrecognized compensation expense on unvested awards $4,280 $3,610 Weighted-average period of unrecognized compensation expense 1.4 years 1.7 years Employee Stock Purchase Plan (ESPP) On June 14, 2023, the Company's stockholders approved the ESPP. The initial aggregate number of shares of Common Stock that may be purchased under the ESPP will not exceed 0.2 million shares. Under the terms of the ESPP, employees may authorize the withholding of up to 15% of their eligible compensation to purchase our shares of Common Stock, not to exceed $25 thousand of Common Stock for any calendar year. The purchase price per shares acquired under the ESPP will never be less than 85% of the fair market value of the lesser of our Common Stock on the offering date or purchase date. The Compensation, Corporate Governance and Nominating Committee of our Board of Directors, in its discretion, may terminate the ESPP at any time with respect to any shares for which options have not been granted and has the right to amend the ESPP with stockholder approval within 12 months before or after the adoption of the amendment. The difference between the Common Stock’s fair value and the employee’s discounted purchase price is expensed at the time of purchase. The following table summarizes the Company’s ESPP activity from inception through September 30, 2024: Period Ended September 30, 2024 Year Ended December 31, 2023 Offering Period 2 Offering Period 1 Offering Period 1 Commencement date 4/1/2024 10/1/2023 10/1/2023 End date 9/15/2024 3/15/2024 12/15/2023 Shares purchased 10 5 4 Weighted average share price $ 10.21 $ 9.83 $ 13.05 Total purchased, net of discount $ 101 $ 51 $ 51 For the period ended September 30, 2024, the ESPP share activity is as follows: Shares Available for future purchases, January 1, 2024 196 Purchases (10) Available for future purchases, September 30, 2024 186 The Company’s total stock-based compensation expense included within Salaries and employee benefits expense in the Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023 is summarized below: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Restricted stock awards $ 913 $ 592 $ 2,244 $ 2,015 ESPP 5 — 17 — Total compensation cost recognized for stock-based compensation plans $ 918 $ 592 $ 2,261 $ 2,015

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 18—INCOME TAXES: The Company elected to be treated as a RIC under the Code beginning with the 2015 tax year and, through the year ended December 31, 2022, operated in a manner so as to continue to qualify for the tax treatment applicable to RICs. The Company filed its final RIC tax return for the year ended December 31, 2022. Beginning with 2023, the Company no longer qualifies as a RIC and instead will file a consolidated U.S. federal income tax return. Financial holding companies are subject to federal and state income taxes in essentially the same manner as other corporations. One of the Company’s former consolidated holding companies is undergoing a NYS tax audit for the fiscal years ended December 31, 2020 and December 31, 2021. Effective Tax Rate and Net Operating Losses The effective tax rate was 27.62% for the nine months ended September 30, 2024. The effective tax rate differs from the federal tax rate of 21% for the nine months ended September 30, 2024, due primarily to the addition of estimated state tax. At December 31, 2022, the Company had NOLs in the amount of $35.4 million. Of these NOLs, $4.6 million expire in 2029 through 2037, while the remaining $30.8 million have indefinite lives. The Company expects to apply $23.8 million of the NOLs against 2023 taxable income and the remaining $11.6 million against future taxable income. The Tax Cuts & Jobs Act of 2017 limits the amount of NOLs utilized each year after December 31, 2020 to 80% of taxable income. The Company’s and its subsidiaries’ federal income tax returns are generally open to review by the tax authorities for the tax years ended in 2020 and beyond. However, the Company’s NOLs continue to be subject to review by tax authorities in the period utilized notwithstanding origination in closed periods. The Company does not have any material interest and penalties recorded in the income statement for the periods ended September 30, 2024 and 2023.

SEGMENTS

SEGMENTS	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
SEGMENTS	NOTE 19—SEGMENTS: The Company's management reporting process measures the performance of its operating segments based on internal operating structure, which is subject to change from time to time. Accordingly, the Company operates four reportable segments for management reporting purposes as discussed below: Banking Newtek Bank originates, services and sells SBA 7(a) loans in a similar manner to NSBF’s historic business model (see Non-Bank Lending below) and originates and services SBA 504 loans, C&I loans, CRE loans and ABL loans. In addition, Newtek Bank offers depository services. NSBF NSBF relates to NSBF’s legacy portfolio of SBA 7(a) loans held outside Newtek Bank; no new loan origination activity takes place. A material portion of NSBF’s legacy portfolio of SBA 7(a) loans reside in securitization trusts. Payments Payments includes NMS, POS and Mobil Money. NMS markets credit and debit card processing services, check approval services, processing equipment, and software and: – Assist merchants with initial installation of equipment and on-going service, as well as any other special processing needs that they may have. – Handles payment processing for Mobil Money’s merchant portfolio of taxi cabs and related licensed payment processing software. – POS is a provider of a cloud based Point of Sale (POS) system for a variety of restaurant, retail, assisted living, parks and golf course businesses, which provides not only payments and purchase technology solutions, but also inventory, customer management, reporting, employee time clock, table and menu layouts, and ecommerce solutions as the central operating system for an SMB. Technology NTS provides website hosting, web design and development, dedicated server hosting, cloud hosting, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services including consulting and implementing technology solutions for enterprise and commercial clients across the U.S. As a result of commitments made to the Federal Reserve in connection with the Acquisition, the Company will divest or otherwise terminate the activities conducted by NTS by January 6, 2025, subject to any extension. As a result of the Company’s entry into the NTS Sale Agreement and the Company’s anticipation to divest of NTS, t he Company has reported NTS as Held for Sale as of September 30, 2024. See NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE. Corporate and Other The information provided under the caption “Corporate and Other” represents operations not considered to be reportable segments and/or general operating expenses of the Company, and includes the parent company, other non-bank subsidiaries including NIA and PMT, and elimination adjustments to reconcile the results of the operating segments to the condensed consolidated financial statements prepared in conformity with GAAP. The following tables provide financial information for the Company's segments: As of and for the nine months ended September 30, 2024 Banking Technology NSBF Payments Corporate and Other Eliminations Consolidated Interest income $ 48,884 $ 3 $ 28,894 $ 1,776 $ 11,628 $ (3,494) $ 87,691 Interest expense 20,635 — 16,733 2,289 22,515 (3,494) 58,678 Net interest income/(loss) 28,249 3 12,161 (513) (10,887) — 29,013 Provision for loan credit losses 16,742 — — — — — 16,742 Net interest income after provision for loan credit losses 11,507 3 12,161 (513) (10,887) — 12,271 Noninterest income 100,326 19,701 (15,475) 39,090 76,646 (67,050) 153,238 Noninterest expense 61,358 19,755 14,647 24,404 28,290 (27,884) 120,570 Income before taxes 50,475 (51) (17,961) 14,173 37,469 (39,166) 44,939 Income tax expense (benefit) 15,136 — — — (2,726) — 12,410 Net income $ 35,339 $ (51) $ (17,961) $ 14,173 $ 40,195 $ (39,166) $ 32,529 Assets $ 935,357 $ 21,919 $ 535,935 $ 62,710 $ 988,402 $ (870,153) $ 1,674,170 As of and for the nine months ended September 30, 2023 (as restated) Banking Technology NSBF Payments Corporate and Other Eliminations Consolidated Interest income $ 22,364 $ — $ 38,841 $ 1,627 $ 8,673 $ (3,501) $ 68,004 Interest expense 11,265 246 20,223 2,735 18,703 (3,501) 49,671 Net interest income/(loss) 11,099 (246) 18,618 (1,108) (10,030) — 18,333 Provision for loan credit losses 7,339 — — — — — 7,339 Net interest income after provision for loan credit losses 3,760 (246) 18,618 (1,108) (10,030) — 10,994 Noninterest income 58,887 23,683 26,500 34,982 75,863 (92,250) 127,665 Noninterest expense 42,858 21,551 23,514 23,975 22,673 (26,451) 108,120 Income before taxes 19,789 1,886 21,604 9,899 43,160 (65,799) 30,539 Income tax expense (benefit) 6,725 87 44 447 (13,244) — (5,941) Net income $ 13,064 $ 1,799 $ 21,560 $ 9,452 $ 56,404 $ (65,799) $ 36,480 Assets $ 603,766 $ 30,211 $ 659,822 $ 50,994 $ 697,408 $ (648,706) $ 1,393,495 As of and for the three months ended September 30, 2024 Banking Technology NSBF Payments Corporate and Other Eliminations Consolidated Interest income $ 18,820 $ 2 $ 8,871 $ 612 $ 4,122 $ (1,156) $ 31,271 Interest expense 7,603 — 5,079 730 8,034 (1,156) 20,290 Net interest income 11,217 2 3,792 (118) (3,912) — 10,981 Provision for loan credit losses 6,928 — — — — — 6,928 Net interest income after provision for loan credit losses 4,289 2 3,792 (118) (3,912) — 4,053 Noninterest income 35,423 5,494 (8,845) 12,719 36,536 (29,476) 51,851 Noninterest expense 20,467 5,395 5,738 7,296 9,814 (9,863) 38,847 Income before taxes 19,245 101 (10,791) 5,305 22,810 (19,613) 17,057 Income tax expense (benefit) 5,760 — — — (637) — 5,123 Net income (loss) $ 13,485 $ 101 $ (10,791) $ 5,305 $ 23,447 $ (19,613) $ 11,934 Assets $ 935,357 $ 21,919 $ 535,935 $ 62,710 $ 988,402 $ (870,153) $ 1,674,170 As of and for the three months ended September 30, 2023 (as restated) Banking Technology NSBF Payments Corporate and Other Eliminations Consolidated Interest income $ 10,513 $ — $ 12,868 $ 482 $ 3,848 $ (975) $ 26,736 Interest expense 5,371 — 6,930 925 6,408 (975) 18,659 Net interest income 5,142 — 5,938 (443) (2,560) — 8,077 Provision for loan credit losses 3,446 — — — — — 3,446 Net interest income after provision for loan credit losses 1,696 — 5,938 (443) (2,560) — 4,631 Noninterest income 26,360 7,283 188 12,173 41,283 (46,261) 41,026 Noninterest expense 14,789 6,517 4,698 7,755 6,420 (8,859) 31,320 Income before taxes 13,267 766 1,428 3,975 32,303 (37,402) 14,337 Income tax expense (benefit) 4,462 — 5 — (1,049) — 3,418 Net income (loss) $ 8,805 $ 766 $ 1,423 $ 3,975 $ 33,352 $ (37,402) $ 10,919 Assets $ 603,766 $ 30,211 $ 659,822 $ 50,994 $ 697,408 $ (648,706) $ 1,393,495

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 20—SUBSEQUENT EVENTS: Stock Repurchase Program On November 1, 2024, the Company’s Board of Directors approved a new stock repurchase program granting the Company authority to repurchase up to 1.0 million shares of Company common stock during the next twelve months. The actual timing and amount of any repurchases under the plan will be determined by the Company in its discretion, and will depend on a number of factors, including market conditions, applicable legal requirements, the Company's capital needs and whether there is a better alternative use of capital. The Company has no obligation to repurchase any amount of its common stock under its new stock repurchase program. Early Redemption of Securitization Notes Issued by the 2018-1 Trust and 2019-1 Trust On October 23, 2024, the Company executed an early redemption of the NSBF securitization notes (the “2018 and 2019 Notes”) issued by the 2018-1 and 2019-1 Trusts. The balance on the 2018 and 2019 Notes as of September 30, 2024, was $25.4 million, and the Company paid $18.3 million out of interest bearing deposits in banks and $6.9 million out of restricted cash. SBA 504 Loans Sale On October 30, 2024, the Company executed a sale, to a third party, of $12.5 million of SBA 504 first lien loans at par, servicing retained.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Reclassifications and Restatements	Reclassifications and Restatements Certain prior period amounts, to the extent comparable, have been reclassified to conform to the current period presentation. In addition, as disclosed in our 2023 Form 10-K, the Company’s prior year condensed comparative financial statements have been adjusted to correct errors made in the Company’s financial statements previously issued for the first, second, and third quarters of 2023. Balances as of and results for the three and nine months ended September 30, 2023 are presented as restated. Refer to our 2023 Form 10-K for further detail.
Cash and Restricted Cash	Cash and due from banks The Company considers all highly liquid instruments with maturities of three months or less when purchased to be cash equivalents. Invested cash is held exclusively at financial institutions of high credit quality. As of September 30, 2024, cash deposits in excess of insured amounts totaled $32.5 million. The Company has not experienced any losses with respect to cash balances in excess of insured amounts and management does not believe there was a significant concentration of risk with respect to cash balances as of September 30, 2024. Restricted cash
Interest bearing deposits in banks	Interest bearing deposits in banks
Allowance for Credit Losses – Loans and Allowance for Credit Losses – Available-for Sale (“AFS”) Debt Securities	Allowance for Credit Losses – Loans Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”) approach requires an estimate of the credit losses expected over the life of a loan (or pool of loans). The allowance for credit losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net, lifetime amount expected to be collected on the loans. Loan losses are charged off against the allowance when management believes a loan balance is uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The allowance is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis, which generally includes larger non-accruing commercial loans. The discounted cash flow (“DCF”) method is used to estimate expected credit losses for all loan portfolio segments measured on a collective (pool) basis. For each loan segment, cash flow projections are generated at the instrument level wherein payment expectations are adjusted for estimated prepayment speeds, probability of default, and loss given default. The modeling of prepayment speeds is based on a combination of historical internal data and peer data. Regression analysis of historical internal and peer data is used to determine suitable loss drivers to utilize when modeling lifetime probability of default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. The SBA 7(a) loan portfolio is the single loan pool where management solely utilizes historical internal data to determine the loss rate as an input to the model. The data utilized represents the most recent economic cycle and management determines the loss rate by analyzing defaulted principal and net charge offs to calculate the historical loss rate. For all loan pools utilizing the DCF method, management utilizes various economic indicators such as changes in unemployment rates, gross domestic product, real estate values, and other relevant factors as loss drivers. For all DCF models, management has determined that due to historic volatility in economic data, four quarters currently represents a reasonable and supportable forecast period, followed by a four-quarter reversion to historical mean levels for each of the various economic indicators. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Specific instrument effective yields are calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level Net Present Value (“NPV”). An allowance is established for the difference between the instrument’s NPV and amortized cost basis. The allowance evaluation also considers various qualitative factors, such as: (i) changes to lending policies, underwriting standards and/or management personnel performing such functions, (ii) delinquency and other credit quality trends, (iii) credit risk concentrations, if any, (iv) changes to the nature of the Company's business impacting the loan portfolio, and (v) other external factors, that may include, but are not limited to, results of internal loan reviews, stress testing, examinations by bank regulatory agencies, or other events such as a natural disaster. Significant management judgment is required at each point in the measurement process. Arriving at an appropriate level of allowance involves a high degree of judgment. The determination of the adequacy of the allowance and provisioning for estimated losses is evaluated regularly based on review of loans, with particular emphasis on non-performing and other loans that management believes warrant special consideration. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. The Company’s historical credit loss experience provides the basis for the estimation of expected credit losses, supplemented with peer loss information, and results in expected probabilities of default and expected losses given default. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as changes in environmental conditions, such as changes in unemployment rates, production metrics, property values, or other relevant factors. Expected losses are applied to loans grouped in portfolio segments, which are pools of loans aggregated based on type of borrower and collateral, generally based upon federal call report segmentation. Portfolio segments have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled. These portfolio segments are as follows: CRE: The CRE portfolio is comprised of loans to borrowers on small offices, owner-occupied commercial buildings, industrial/warehouse properties, income producing/investor real estate properties, and multi-family loans secured by first mortgages. The Company’s underwriting standards generally target a loan-to-value ratio of 75%, depending on the type of collateral, and requires debt service coverage of a minimum of 1.2 times. C&I: The C&I portfolio consists of loans made for general business purposes consisting of short-term working capital loans, equipment loans and unsecured business lines. SBA 7(a): The SBA 7(a) portfolio includes loans originated under the federal Section 7(a) loan program. The SBA is an independent government agency that facilitates one of the nation’s largest sources of SMB financing by providing credit guarantees for its loan programs. SBA 7(a) loans are partially guaranteed by the SBA, with SBA guarantees typically ranging between 50% and 90% of the principal and interest due. Under the SBA’s 7(a) lending program, a bank or other lender licensed by the SBA may underwrite loans between $5.0 thousand and $5.0 million for a variety of general business purposes based on the SBA’s loan program requirements. The guaranteed portion of the loans are HFS and carried at LCM and therefore are not subject to CECL. The unguaranteed portion of the loans that are held on balance sheet at amortized cost are subject to CECL. In the context of CECL, these SBA 7(a) loans are held at Newtek Bank. Individually Evaluated Loans. Loans that do not share risk characteristics with existing pools are evaluated on an individual basis. For loans that are individually evaluated and collateral dependent, financial loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and management expects repayment of the financial asset to be provided substantially through the sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral or going concern, the specific credit loss reserve is calculated as the amount by which the amortized cost basis of the financial asset exceeds the NPV from the operation of the collateral. When repayment is expected to be from the sale of the collateral, the specific credit loss reserve is calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The allowance may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. Accrued Interest. Accrued interest receivable balances are presented within other assets on the consolidated balance sheet. Accrued interest is excluded from the measurement of the allowance for credit losses, including investments and loans. Generally, accrued interest is reversed when a loan is placed on non-accrual or is written-off. Current year accrued interest is reversed through interest income while accrued interest from prior years is written-off through the ACL. Historically, we have not experienced uncollectible accrued interest receivable on investment debt securities. Allowance for off-balance sheet credit exposures. The exposure is a component of other liabilities in the consolidated balance sheet and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include unused portions of lines of credit and standby and commercial letters of credit. The process used to determine the allowance for these exposures is consistent with the process for determining the allowance for loans, as adjusted for estimated funding probabilities or loan equivalency factors. A charge (credit) to provision for credit losses on the consolidated statements of income is made to account for the change in the allowance on off-balance sheet exposures between reporting periods. Allowance for Credit Losses – Available-fo r Sale (“AFS”) Debt Securities The impairment model for AFS debt securities differs from the CECL approach utilized for financial instruments measured at amortized cost because AFS debt securities are measured at fair value. For AFS debt securities in an unrealized loss position, Newtek Bank first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities AFS that do not meet the aforementioned criteria, in making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, failure of the issuer of the debt security to make scheduled interest or principal payments, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. The cash flows should be estimated using information relevant to the collectability of the security, including information about past events, current conditions and reasonable and supportable forecasts. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the AFS security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. As of September 30, 2024, the Company det ermined that the unrealized loss positions in the AFS securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded.
Accrued Interest Receivable	Accrued Interest Receivable Upon the Acquisition and adoption of CECL, the Company made the following elections regarding accrued interest receivable: (1) presented accrued interest receivable balances separately within other assets balance sheet line item; (2) excluded interest receivable that is included in amortized cost of financing receivables from related disclosures requirements and (3) continued our policy to write off accrued interest receivable by reversing interest income. For loans, write off typically occurs upon becoming over 90 to 120 days past due. Historically, the Company has not experienced uncollectible accrued interest receivable on investment securities.
Settlement Receivable	Settlement Receivable Settlement receivable represents amounts due from third parties for guaranteed portions of SBA 7(a) loans which have been sold at period-end but have not yet settled. The guaranteed portion of SBA 7(a) principal balances that have been sold but not yet settled at September 30, 2024 was $55.9 million. The settlement receivable also includes $6.2 million of premiums, which have been recognized in Net Gains on Sales of Loans.
Income Taxes	Income Taxes Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Such deferred tax assets and liabilities recorded on the statements of financial condition were a deferred tax liability, net of $4.7 million and a deferred tax asset, net of $5.2 million at September 30, 2024 and December 31, 2023, respectively. Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to income taxes in the United States and its political subdivisions. Significant judgments and estimates are required in determining the consolidated income tax expense. The Company’s U.S. federal and state income tax returns prior to fiscal year 2020 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. Interest and penalties assessed by tax jurisdictions for income tax matters are presented as income tax expense on the consolidated statement of income. Formerly, as a RIC ending with the Company’s December 31, 2022 fiscal year end, the Company was not subject to corporate level income tax. Beginning on January 1, 2023 with the start of the 2023 fiscal year, the Company no longer qualifies as a RIC and is subject to corporate level income tax. See NOTE 18—INCOME TAXES .
Recently Adopted Accounting Pronouncements and New Accounting Standards	Recently Adopted Accounting Pronouncements Current Expected Credit Losses (Topic 326): In June 2016, FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments (Topic 326) and in April 2019, the FASB issued ASU 2019-04 Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (collectively, “CECL”). CECL changed how entities measure potential credit losses for most financial assets and certain other instruments that are not measured at fair value. CECL replaced the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost. While ASU 2016-13 does not require any particular method for determining the CECL allowance, it does specify the allowance should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. CECL was effective for the Company beginning January 1, 2023; however, the Company continues to measure NSBF’s SBA 7(a) loan portfolio at fair value and intends to do so until the portfolio is completely runoff. Following the Acquisition on January 6, 2023, the Company owns and consolidates Newtek Bank, which applies CECL. Troubled Debt Restructurings and Vintage Disclosures (ASU 2022-02): In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The purpose of this guidance is twofold. First, the guidance eliminates TDR recognition and measurement guidance that has been deemed no longer necessary under CECL. The guidance also adds a requirement to incorporate current year gross charge-offs by origination year into the vintage tables. With respect to the TDR impacts, under CECL, credit losses for financial assets measured at amortized cost are determined based on the total current expected credit losses over the life of the financial asset or group of financial assets. Due to the Acquisition, any aspects of credit deterioration to include modifications to loans for borrowers experiencing financial difficulty were captured in purchase accounting and the allowance as of the Acquisition date. Therefore, credit losses on financial assets that have been modified as TDRs would have largely been incorporated in the allowance upon initial recognition. Following the Acquisition on January 6, 2023, the Company owns and consolidates Newtek Bank, which adopted the ASU on January 1, 2023, on a prospective basis. Under ASU 2022-02, the Company evaluated whether loan modifications previously characterized as TDRs represent a new loan or a continuation of an existing loan in accordance with ASC Topic 310, Receivables. The guidance also added new disclosures that require an entity to provide information related to loan modifications made to borrowers deemed to be in financial difficulty. The impact of these amendments was not material. Fair Value Measurement (ASU 2022-03): In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820), which clarifies the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments affect all entities that have investments in equity securities measured at fair value that are subject to a contractual sale restriction. ASU 2022-03 is effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. An entity that qualifies as an investment company under Topic 946 should apply the amendments in ASU No. 2022-03 to an investment in an equity security subject to a contractual sale restriction that is executed or modified on or after the date of adoption. The impact of these amendments was not material. New Accounting Standards Improvements to Reportable Segment Disclosures (ASU 2023-07): In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The purpose of this guidance is to improve reportable segment disclosure, primarily through enhanced disclosures about significant segment expenses. This ASU requires that an entity disclose, on an interim and annual basis, significant segment expenses that are regularly provided to the CODM and are included within the reported measure of segment profit or loss. This ASU also requires an entity to disclose, on an interim and annual basis, other segment items by reportable segment, including a qualitative description of the composition of those items. This “other” category is defined as the difference between segment profit or loss and segment revenue less significant segment expenses. Entities are also required to disclose the title and position of the individual, or the name of the group or committee, identified as the CODM. The amendments are effective on January 1, 2024, for annual reporting, and January 1, 2025, for interim reporting, with early adoption permitted. The amendments must be applied using a retrospective approach. Management does not expect the impact to be material. Improvements to Income Tax Disclosures (ASU 2023-09): In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The purpose of this guidance is to enhance the rate reconciliation and income taxes paid disclosures. This ASU requires that an entity disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. For the state and local income tax category of the rate reconciliation, entities must disclose a qualitative description of the states and local jurisdictions that make up the majority (greater than 50 percent) of the category. For the income taxes paid disclosures, entities will be required to disclose, on an annual basis, the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes. The amendments are effective on January 1, 2025, with early adoption permitted. The amendments must be applied using either a prospective or retrospective approach. Management does not expect the impact of these amendments to be material. Compensation—Stock Compensation (ASU 2024-01): In March 2024, the FASB issued ASU 2024-01, Compensation - Stock Compensation (Topic 718), Scope Application of Profits Interest and Similar Awards. This standard provides clarity regarding whether profits interest and similar awards are within the scope of Topic 718 of the Accounting Standards Codification. This standard is effective for fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Early adoption is permitted. The Company is in the process of evaluating the impact of adopting this standard and, at this time, does not anticipate it will have a material impact on its consolidated financial statements.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Reconciliation of cash	The following table provides a reconciliation of cash, restricted cash, and interest bearing deposits in banks as of September 30, 2024 and 2023 and December 31, 2023: September 30, 2024 September 30, 2023 December 31, 2023 Cash and due from banks $ 9,688 $ 15,610 $ 15,398 Restricted cash 27,929 70,737 30,919 Interest bearing deposits in banks 152,805 137,346 137,689 Cash and restricted cash $ 190,422 $ 223,693 $ 184,006
Reconciliation of restricted cash	The following table provides a reconciliation of cash, restricted cash, and interest bearing deposits in banks as of September 30, 2024 and 2023 and December 31, 2023: September 30, 2024 September 30, 2023 December 31, 2023 Cash and due from banks $ 9,688 $ 15,610 $ 15,398 Restricted cash 27,929 70,737 30,919 Interest bearing deposits in banks 152,805 137,346 137,689 Cash and restricted cash $ 190,422 $ 223,693 $ 184,006

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Schedule of business acquisitions	The following table summarizes the allocation of consideration paid for the fair value of assets acquired and liabilities assumed from NBNYC: Purchase price consideration $ 21,281 Fair value of assets acquired: Cash and due from banks 29,138 Interest-bearing deposits in banks 3,284 Total cash and cash equivalents 32,422 Available-for-sale securities (at fair value) 5,004 Other investments 1,226 Loans receivable 159,155 Federal Reserve Bank stock, at cost 54 Federal Home Loan Bank stock, at cost 1,470 Accrued interest receivable 353 Deferred income taxes 495 Goodwill 271 Core deposit intangible 1,040 Other assets 399 Total assets $ 201,889 Fair value of liabilities assumed: Deposits: Demand $ 21,878 Savings, Super NOW, and Money Market 10,975 Certificates of deposit 104,162 Total deposits 137,015 Advances from the Federal Home Loan Bank 27,817 Accrued expenses and other liabilities 15,776 Total liabilities $ 180,608 Par value (unpaid principal balance) $ 42,443 ACL at acquisition (870) Non-credit (discount) (1,559) Fair Value $ 40,014

INVESTMENTS (Tables)

INVESTMENTS (Tables)	9 Months Ended
	Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Investment holdings, schedule of investments	Investments consisted of the following at: September 30, 2024 December 31, 2023 Cost Fair Value Cost Fair Value Debt securities available-for-sale, at fair value $ 23,734 $ 23,790 $ 32,372 $ 32,171 Federal Home Loan Bank and Federal Reserve Bank stock 3,608 3,608 3,635 3,635 Non-controlled investments 680 740 796 728 Joint ventures, at fair value 43,321 55,750 37,864 40,859 Total investments $ 71,343 $ 83,888 $ 74,667 $ 77,393 Loans HFI, at Fair Value September 30, 2024 December 31, 2023 Cost Fair Value Cost Fair Value Food Services and Drinking Places $ 34,783 $ 36,835 $ 43,779 $ 43,955 Professional, Scientific, and Technical Services 31,885 32,384 36,248 35,377 Specialty Trade Contractors 30,964 30,776 40,193 35,451 Ambulatory Health Care Services 22,289 22,559 27,291 26,633 Amusement, Gambling, and Recreation Industries 17,383 18,430 21,289 22,839 Administrative and Support Services 17,425 17,003 21,319 19,521 Merchant Wholesalers, Durable Goods 16,094 15,638 21,873 21,152 Repair and Maintenance 13,201 14,304 15,886 17,005 Personal and Laundry Services 13,120 13,890 12,867 13,584 Merchant Wholesalers, Nondurable Goods 11,970 11,852 15,623 15,573 Social Assistance 8,544 9,303 8,857 9,721 Fabricated Metal Product Manufacturing 9,832 9,227 12,439 13,205 Truck Transportation¹ 11,388 8,897 15,590 12,113 Construction of Buildings 9,056 8,423 9,868 9,890 Food Manufacturing² 8,994 8,392 10,233 8,714 Accommodation 7,701 8,144 9,259 10,162 Support Activities for Mining 7,209 7,082 8,455 7,754 Transportation Equipment Manufacturing 6,519 6,897 7,687 7,999 Rental and Leasing Services 6,159 6,482 6,764 7,178 Food and Beverage Stores 6,167 6,408 7,026 7,306 Motor Vehicle and Parts Dealers 6,208 6,303 9,046 9,382 Nursing and Residential Care Facilities 5,834 6,234 6,182 6,709 Educational Services 4,528 4,822 5,368 5,636 Building Material and Garden Equipment and Supplies Dealers 4,334 4,476 7,384 6,781 Other 3 79,570 79,710 102,037 96,161 Total $ 391,157 $ 394,471 $ 482,563 $ 469,801 (1) Truck Transportation includes one loan at NewtekOne of $2.1 million Cost and $1.0 million Fair value as of September 30, 2024, and $2.1 million Cost and $1.1 million Fair Value as of December 31, 2023. (2) Food Manufacturing includes one loan at NewtekOne of $4.7 million Cost and $4.2 million Fair Value as of September 30, 2024, and $4.7 million Cost and $3.4 million Fair Value as of December 31, 2023. (3) Other includes one loan at NewtekOne of $0.3 million Cost and $0.2 million Fair Value as of December 31, 2023.
Investment company, nonconsolidated subsidiary, summarized financial information	The following tables show certain summarized financial information for NCL JV: Selected Statement of Assets and Liabilities Information (Unaudited) September 30, 2024 December 31, 2023 Cash $ 606 $ 612 Restricted cash 1,895 3,298 Investments in loans, at FV (amortized cost of $61,933 and $68,403, respectively) 62,962 70,083 Other assets 1,616 1,614 Total assets $ 67,079 $ 75,607 Securitization notes payable $ 30,834 $ 38,805 Other liabilities 832 905 Total liabilities 31,666 39,710 Net assets 35,413 35,897 Total liabilities and net assets $ 67,079 $ 75,607 Selected Statements of Operations Information (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Interest and other income $ 1,202 $ 1,291 $ 3,766 $ 4,576 Total expenses 442 614 1,374 1,923 Net investment income 760 677 2,392 2,653 Unrealized (depreciation) appreciation on investments 417 (216) (652) 1,713 Net increase in net assets resulting from operations $ 1,177 $ 461 $ 1,740 $ 4,366 The following tables show certain summarized financial information for TSO JV: Selected Statement of Assets and Liabilities Information (Unaudited) September 30, 2024 December 31, 2023 Cash $ 620 $ 4,401 Restricted cash 5,093 1,183 Investments in loans, at FV (amortized cost of $188,019 and $62,696, respectively) 198,403 66,689 Other assets 5,233 1,374 Total assets $ 209,349 $ 73,647 Bank notes payable $ — $ 29,636 Securitization notes payable 142,719 — Other liabilities 377 1,092 Total liabilities 143,096 30,728 Net assets 66,253 42,919 Total net assets $ 209,349 $ 73,647 Selected Statements of Operations Information (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Interest and other income $ 5,722 $ 876 $ 12,405 $ 1,968 Total expenses 3,114 1,424 6,678 3,042 Net investment income (loss) 2,608 (548) 5,727 (1,074) Unrealized appreciation on investments 2,114 1,464 6,392 1,270 Realized loss on investments — — — (16) Realized gain (loss) on derivative transactions (1,436) 351 (391) 518 Unrealized (loss) gain on derivative transactions 832 (151) 694 (146) Net increase in net assets resulting from operations $ 4,118 $ 1,116 $ 12,422 $ 552
Investments in and advances to affiliates	Transactions related to our joint ventures and non-controlled investments for the nine months ended September 30, 2024 and 2023 were as follows: Company Fair Value at December 31, 2023 Purchases (Cost) Return of Investment Net Gains/(Losses) Fair Value at September 30, 2024 Dividend Income Joint Ventures Newtek Conventional Lending, LLC $ 19,400 $ — $ — $ (500) $ 18,900 $ 1,112 Newtek TSO II Conventional Credit Partners, LP 21,459 25,642 (20,185) 9,934 36,850 — Total Joint Ventures $ 40,859 $ 25,642 $ (20,185) $ 9,434 $ 55,750 $ 1,112 Non-Control Investments EMCAP Loan Holdings, LLC $ 368 $ — $ (116) $ 68 $ 320 $ 16 Biller Genie Software, LLC 360 — — 60 420 — Total Non-Control Investments $ 728 $ — $ (116) $ 128 $ 740 $ 16 Total Affiliate Investments $ 41,587 $ 25,642 $ (20,301) $ 9,562 $ 56,490 $ 1,128 Company Fair Value at December 31, 2022 Purchases (Cost) Return of Investment Net Gains/(Losses) Fair Value at September 30, 2023 Dividend Income Joint Ventures Newtek Conventional Lending, LLC $ 16,587 $ 248 $ — $ 2,865 $ 19,700 $ 1,302 Newtek TSO II Conventional Credit Partners, LP 6,435 14,302 — 276 21,013 — Total Joint Ventures $ 23,022 $ 14,550 $ — $ 3,141 $ 40,713 $ 1,302 Non-Control Investments EMCAP Loan Holdings, LLC $ 1,000 $ — $ — $ — $ 1,000 $ 95 Biller Genie Software, LLC 360 — — — 360 — Total Non-Control Investments $ 1,360 $ — $ — $ — $ 1,360 $ 95 Total Affiliate Investments $ 24,382 $ 14,550 $ — $ 3,141 $ 42,073 $ 1,397 The following table summarizes the amounts due to and due from affiliated companies as of September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Due to affiliated companies 1 $ 246 $ 158 Due from affiliated companies 2 5 7 Total due to/due from affiliated companies $ 241 $ 151 1 Included within Other assets 2 Included within Accounts payable, accrued expenses, and other liabilities The following table summarizes the income earned from our joint ventures for the periods ended September 30, 2024 and 2023: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Servicing income $ 576 $ 345 $ 1,446 $ 855 Dividend income 373 330 1,112 1,302 Total income $ 949 $ 675 $ 2,558 $ 2,157 In the normal course of business, Newtek Bank holds FDIC insured deposits from certain of the Company’s officers, directors and their associated companies. The following table summarizes the amounts due of deposits from related parties and their affiliated companies as of September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 FDIC insured deposits $ 4,707 $ 4,388 Non-FDIC insured deposits 1,348 1,167 Total deposits from related parties and their affiliated companies $ 6,055 $ 5,555
Schedule of available-for-sale securities	The following tables summarize the amortized cost and fair value of available-for-sale securities by major type as of September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. Treasury notes $ 20,734 $ 78 $ 2 $ 20,810 $ 29,372 $ — $ 67 $ 29,304 Government agency debentures 3,000 — 20 2,980 3,000 — 134 2,867 Total available for sale securities $ 23,734 $ 78 $ 22 $ 23,790 $ 32,372 $ — $ 201 $ 32,171
Schedule of available for sale debt securities sold or settled	During the three and nine months ended September 30, 2024 and 2023, securities sold or settled were as follows:. Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 # $ # $ # $ # $ Securities sold or settled two settled $10,000 none $— three settled $39,500 none $—
Debt securities, unrealized losses	The following tables summarize the gross unrealized losses and fair value of available-for-sale securities by length of time each major security type has been in a continuous unrealized loss position: September 30, 2024 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Holdings Fair Value Unrealized Losses U.S. Treasury notes $ 3,957 $ 2 $ — $ — 1 $ 3,957 $ 2 Government agency debentures 2,980 — — 20 2 2,980 20 Total $ 6,937 $ 2 $ — $ 20 $ 3 $ 6,937 $ 22 December 31, 2023 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Number of Holdings Fair Value Unrealized Losses U.S. Treasury notes $ 29,304 $ 67 $ — $ — 1 $ 29,304 $ 67 Government agency debentures 2,867 134 — — 2 2,867 134 Total $ 32,171 $ 201 $ — $ — 3 $ 32,171 $ 201
Available-for-sale maturity and other information	The following table summarizes the amortized cost and fair value of available-for-sale securities by contractual maturity: September 30, 2024 At December 31, 2023 Amortized Cost Fair Value Amortized Cost Fair Value Maturing within 1 year $ 15,722 $ 15,723 $ 32,372 $ 32,171 After 1 year through 5 years 8,012 8,067 — — Total available for sale securities $ 23,734 $ 23,790 $ 32,372 $ 32,171 The following table summarizes Newtek Bank’s available-for-sale securities pledged for deposits, borrowings, and other purposes: September 30, 2024 December 31, 2023 Pledged for deposits $ — $ — Pledged for borrowings and other 23,790 30,730 Total available for sale securities pledged $ 23,790 $ 30,730

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2024
Receivables [Abstract]
Investment holdings, schedule of investments	Investments consisted of the following at: September 30, 2024 December 31, 2023 Cost Fair Value Cost Fair Value Debt securities available-for-sale, at fair value $ 23,734 $ 23,790 $ 32,372 $ 32,171 Federal Home Loan Bank and Federal Reserve Bank stock 3,608 3,608 3,635 3,635 Non-controlled investments 680 740 796 728 Joint ventures, at fair value 43,321 55,750 37,864 40,859 Total investments $ 71,343 $ 83,888 $ 74,667 $ 77,393 Loans HFI, at Fair Value September 30, 2024 December 31, 2023 Cost Fair Value Cost Fair Value Food Services and Drinking Places $ 34,783 $ 36,835 $ 43,779 $ 43,955 Professional, Scientific, and Technical Services 31,885 32,384 36,248 35,377 Specialty Trade Contractors 30,964 30,776 40,193 35,451 Ambulatory Health Care Services 22,289 22,559 27,291 26,633 Amusement, Gambling, and Recreation Industries 17,383 18,430 21,289 22,839 Administrative and Support Services 17,425 17,003 21,319 19,521 Merchant Wholesalers, Durable Goods 16,094 15,638 21,873 21,152 Repair and Maintenance 13,201 14,304 15,886 17,005 Personal and Laundry Services 13,120 13,890 12,867 13,584 Merchant Wholesalers, Nondurable Goods 11,970 11,852 15,623 15,573 Social Assistance 8,544 9,303 8,857 9,721 Fabricated Metal Product Manufacturing 9,832 9,227 12,439 13,205 Truck Transportation¹ 11,388 8,897 15,590 12,113 Construction of Buildings 9,056 8,423 9,868 9,890 Food Manufacturing² 8,994 8,392 10,233 8,714 Accommodation 7,701 8,144 9,259 10,162 Support Activities for Mining 7,209 7,082 8,455 7,754 Transportation Equipment Manufacturing 6,519 6,897 7,687 7,999 Rental and Leasing Services 6,159 6,482 6,764 7,178 Food and Beverage Stores 6,167 6,408 7,026 7,306 Motor Vehicle and Parts Dealers 6,208 6,303 9,046 9,382 Nursing and Residential Care Facilities 5,834 6,234 6,182 6,709 Educational Services 4,528 4,822 5,368 5,636 Building Material and Garden Equipment and Supplies Dealers 4,334 4,476 7,384 6,781 Other 3 79,570 79,710 102,037 96,161 Total $ 391,157 $ 394,471 $ 482,563 $ 469,801 (1) Truck Transportation includes one loan at NewtekOne of $2.1 million Cost and $1.0 million Fair value as of September 30, 2024, and $2.1 million Cost and $1.1 million Fair Value as of December 31, 2023. (2) Food Manufacturing includes one loan at NewtekOne of $4.7 million Cost and $4.2 million Fair Value as of September 30, 2024, and $4.7 million Cost and $3.4 million Fair Value as of December 31, 2023. (3) Other includes one loan at NewtekOne of $0.3 million Cost and $0.2 million Fair Value as of December 31, 2023.
Schedule of loans and leases	The following table shows the Company’s loan portfolio by industry for loans HFI, at amortized cost: Loans HFI, at Amortized Cost September 30, 2024 December 31, 2023 SBA $ 319,324 $ 163,918 CRE 178,875 163,803 C&I 19,989 8,191 Total Loans 518,188 335,912 Deferred fees and costs, net 301 393 Loans held for investment, at amortized cost, net of deferred fees and costs $ 518,489 $ 336,305 The following tables summarize the aging of accrual and non-accrual loans HFI, at fair value by class: As of September 30, 2024 Past Due and Accruing Non- accrual Total Past Due and Non-accrual Current Total Accounted for Under the FV Option 30-59 Days 60-89 Days 90-119 Days 120+ Days SBA, at fair value $ 23 $ 19,927 $ 9,634 $ 435 $ 59,599 $ 89,618 $ 304,853 $ 394,471 As of December 31, 2023 Past Due and Accruing Non- accrual Total Past Due and Non-accrual Current Total Accounted for Under the FV Option 30-59 Days 60-89 Days 90-119 Days 120+ Days SBA, at fair value $ 20,380 $ 16,075 $ — $ — $ 48,174 $ 84,629 $ 385,172 $ 469,801 The following tables summarize the aging of accrual and non-accrual loans HFI, at amortized cost by class: As of September 30, 2024 Past Due and Accruing Non- accrual Total Past Due and Non-accrual Current Total Carried at Amortized Cost 30-59 Days 60-89 Days 90-119 Days 120+ Days At amortized cost SBA $ — $ 3,120 $ — $ — $ 15,918 $ 19,038 $ 300,286 $ 319,324 CRE 5,397 47 — — 3,670 9,114 169,761 178,875 C&I — — — — — — 19,989 19,989 Total, at amortized cost $ 5,397 $ 3,167 $ — $ — $ 19,588 $ 28,152 $ 490,036 $ 518,188 Deferred fees and costs 301 Total, at amortized cost net of deferred fees and costs $ 518,489 Allowance for credit losses (26,045) Total, at amortized cost, net $ 492,444 As of December 31, 2023 Past Due and Accruing Non- accrual Total Past Due and Non-accrual Current Total Carried at Amortized Cost 30-59 Days 60-89 Days 90-119 Days 120+ Days At amortized cost SBA $ 3,637 $ 311 $ — $ — $ 752 $ 4,700 $ 159,218 $ 163,918 CRE 948 — — — 4,621 5,569 158,234 163,803 C&I — — — — — — 8,191 8,191 Total, at amortized cost $ 4,585 $ 311 $ — $ — $ 5,373 $ 10,269 $ 325,643 $ 335,912 Deferred fees and costs 393 Total, at amortized cost net of deferred fees and costs $ 336,305 Allowance for credit losses (12,574) Total, at amortized cost, net $ 323,731
Credit quality indicators	The following tables present asset quality indicators by portfolio class and origination year at September 30, 2024 and December 31, 2023: September 30, 2024 Term Loans HFI by Origination Year 2024 2023 2022 2021 2020 Prior Total SBA, at fair value Risk Grades 1-4 $ — $ 26,474 $ 125,599 $ 44,975 $ 23,537 $ 110,949 $ 331,534 Risk Grades 5-6 — 2,668 16,268 6,406 1,500 35,895 62,737 Risk Grade 7 — — — — — — — Risk Grade 8 — — 145 17 22 16 200 Total $ — $ 29,142 $ 142,012 $ 51,398 $ 25,059 $ 146,860 $ 394,471 SBA, at amortized cost, net of deferred fees and costs Risk Grades 1-4 $ 158,014 $ 126,586 $ — $ — $ — $ — $ 284,600 Risk Grades 5-6 3,347 26,225 — — — — 29,572 Risk Grade 7 387 4,718 — — — — 5,105 Risk Grade 8 25 22 — — — — 47 Total $ 161,773 $ 157,551 $ — $ — $ — $ — $ 319,324 CRE, at amortized cost, net of deferred fees and costs Risk Grades 1-4 $ 32,692 $ 26,017 $ 33,343 $ 16,430 $ 396 $ 64,678 $ 173,556 Risk Grades 5-6 47 — — — 880 4,392 5,319 Risk Grade 7 — — — — — — — Total $ 32,739 $ 26,017 $ 33,343 $ 16,430 $ 1,276 $ 69,070 $ 178,875 C&I, at amortized cost, net of deferred fees and costs Risk Grades 1-4 $ 17,001 $ 971 $ — $ — $ — $ 2,017 $ 19,989 Risk Grades 5-6 — — — — — — — Risk Grade 7 — — — — — — — Total $ 17,001 $ 971 $ — $ — $ — $ 2,017 $ 19,989 Total $ 211,513 $ 213,681 $ 175,355 $ 67,828 $ 26,335 $ 217,947 $ 912,659 December 31, 2023 Term Loans HFI by Origination Year 2023 2022 2021 2020 2019 Prior Total SBA, at fair value Risk Grades 1-4 $ 34,289 $ 151,929 $ 53,998 $ 27,870 $ 52,175 $ 94,751 $ 415,012 Risk Grades 5-6 349 8,968 5,813 1,257 11,764 25,727 53,878 Risk Grade 7 — — — — — — — Risk Grade 8 — 149 17 22 16 707 911 Total $ 34,638 $ 161,046 $ 59,828 $ 29,149 $ 63,955 $ 121,185 $ 469,801 SBA, at amortized cost, net of deferred fees and costs Risk Grades 1-4 $ 161,263 $ — $ — $ — $ — $ — $ 161,263 Risk Grades 5-6 2,655 — — — — — 2,655 Risk Grade 7 — — — — — — — Risk Grade 8 — — — — — — — Total $ 163,918 $ — $ — $ — $ — $ — $ 163,918 CRE, at amortized cost, net of deferred fees and costs Risk Grades 1-4 $ 53,567 $ 28,224 $ 14,590 $ — $ 8,888 $ 49,771 $ 155,040 Risk Grades 5-6 — — 948 910 2,284 4,621 8,763 Risk Grade 7 — — — — — — — Total $ 53,567 $ 28,224 $ 15,538 $ 910 $ 11,172 $ 54,392 $ 163,803 C&I, at amortized cost, net of deferred fees and costs Risk Grades 1-4 $ 6,174 $ — $ — $ — $ — $ 2,017 $ 8,191 Risk Grades 5-6 — — — — — — — Risk Grade 7 — — — — — — — Total $ 6,174 $ — $ — $ — $ — $ 2,017 $ 8,191 Total $ 258,297 $ 189,270 $ 75,366 $ 30,059 $ 75,127 $ 177,594 $ 805,713
Allowance for credit losses	The following table details activity in the ACL for the nine months ended September 30, 2024: September 30, 2024 September 30, 2023 CRE C&I SBA Total CRE C&I SBA Total Beginning balance $ 1,408 $ 314 $ 10,852 $ 12,574 $ — $ — $ — $ — Adjustment to beginning balance due to PCD marks 1 — — — — 774 96 — 870 Charge offs (236) — (2,697) (2,933) — — — — Recoveries — — — — — — — Provision for credit losses 2 98 (286) 16,592 16,404 657 220 6,462 7,339 Ending balance $ 1,270 $ 28 $ 24,747 $ 26,045 $ 1,431 $ 316 $ 6,462 $ 8,209 1 Given the January 6, 2023 transition to a financial holding company, the Company established an ACL with the beginning balance representing the purchased credit deteriorated loans acquired through the NBNYC Acquisition. 2 Excludes $0.3 million of Provision for credit losses relating to unfunded commitments for the nine months ended September 30, 2024, which is recorded within Accounts payable, accrued expenses and other liabilities in accordance with ASC 326. The following table details activity in the ACL for the three months ended September 30, 2024 and 2023. September 30, 2024 September 30, 2023 CRE C&I SBA Total CRE C&I SBA Total Beginning balance $ 1,358 $ 215 $ 19,525 $ 21,098 $ 1,373 $ 267 $ 3,124 $ 4,764 Charge offs — — (1,763) (1,763) — — — — Recoveries — — — — — — — — Provision for credit losses 1 (88) (187) 6,985 6,710 58 49 3,338 3,445 Total $ 1,270 $ 28 $ 24,747 $ 26,045 $ 1,431 $ 316 $ 6,462 $ 8,209 1 Excludes $0.2 million of Provision for credit losses relating to unfunded commitments for the three months ended September 30, 2024, which is recorded within Accounts payable, accrued expenses and other liabilities in accordance with ASC 326. The following table presents the individually evaluated and collectively evaluated ACL by segment: September 30, 2024 December 31, 2023 ACL CRE C&I SBA Total CRE C&I SBA Total Individually Evaluated $ — $ — $ 6,324 $ 6,324 $ — $ — $ 102 $ 102 Collectively Evaluated 1,270 28 18,423 19,721 1,408 314 10,750 12,472 Total $ 1,270 $ 28 $ 24,747 $ 26,045 $ 1,408 $ 314 $ 10,852 $ 12,574 The following table presents the recorded investment in loans individually evaluated and collectively evaluated by segment: September 30, 2024 December 31, 2023 Recorded Investment CRE C&I SBA Total CRE C&I SBA Total Individually Evaluated $ 3,670 $ — $ 15,918 $ 19,588 $ 4,621 $ — $ 727 $ 5,348 Collectively Evaluated 175,205 19,989 303,406 498,600 159,182 8,191 163,191 330,564 Total $ 178,875 $ 19,989 $ 319,324 $ 518,188 $ 163,803 $ 8,191 $ 163,918 $ 335,912
Past due loans	The amortized cost basis of loans on nonaccrual status and the individually assessed ACL are as follows: September 30, 2024 December 31, 2023 Nonaccrual without Allowance Nonaccrual with Allowance ACL Nonaccrual without Allowance Nonaccrual with Allowance ACL SBA $ 5,800 $ 10,118 $ 6,324 $ 625 $ 102 $ 102 CRE 3,670 — — 4,621 — — Total $ 9,470 $ 10,118 $ 6,324 $ 5,246 $ 102 $ 102
Impaired financing receivables	The unpaid contractual principal balance and recorded investment for the loans individually assessed is shown in the table below by type: September 30, 2024 December 31, 2023 Real Estate Collateral Non-Real Estate Collateral Total ACL Real Estate Collateral Non-Real Estate Collateral Total ACL SBA $ 14,806 $ 1,112 $ 15,918 $ 6,324 $ 625 $ 102 $ 727 $ 102 CRE 3,670 — 3,670 — 4,621 — 4,621 — Total $ 18,476 1,112 19,588 6,324 $ 5,246 102 5,348 102
Held for sale	September 30, 2024 December 31, 2023 At FV At LCM At FV At LCM SBA 504 First Lien $ 121,843 $ 37,442 $ 66,387 $ 38,787 SBA 504 Second Lien 14,317 8,092 20,757 5,741 SBA 7(a) 3,119 — 262 64 SBA 7(a) Partials — 13,674 104 11,237 ALP 102,946 — 31,357 — Subtotal 242,225 59,208 118,867 55,829 Deferred fees and costs — 995 — 778 Loans held for sale, net of deferred fees and costs $ 242,225 $ 60,203 $ 118,867 $ 56,607

TRANSACTIONS WITH AFFILIATED _2

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
Investments in and advances to affiliates	Transactions related to our joint ventures and non-controlled investments for the nine months ended September 30, 2024 and 2023 were as follows: Company Fair Value at December 31, 2023 Purchases (Cost) Return of Investment Net Gains/(Losses) Fair Value at September 30, 2024 Dividend Income Joint Ventures Newtek Conventional Lending, LLC $ 19,400 $ — $ — $ (500) $ 18,900 $ 1,112 Newtek TSO II Conventional Credit Partners, LP 21,459 25,642 (20,185) 9,934 36,850 — Total Joint Ventures $ 40,859 $ 25,642 $ (20,185) $ 9,434 $ 55,750 $ 1,112 Non-Control Investments EMCAP Loan Holdings, LLC $ 368 $ — $ (116) $ 68 $ 320 $ 16 Biller Genie Software, LLC 360 — — 60 420 — Total Non-Control Investments $ 728 $ — $ (116) $ 128 $ 740 $ 16 Total Affiliate Investments $ 41,587 $ 25,642 $ (20,301) $ 9,562 $ 56,490 $ 1,128 Company Fair Value at December 31, 2022 Purchases (Cost) Return of Investment Net Gains/(Losses) Fair Value at September 30, 2023 Dividend Income Joint Ventures Newtek Conventional Lending, LLC $ 16,587 $ 248 $ — $ 2,865 $ 19,700 $ 1,302 Newtek TSO II Conventional Credit Partners, LP 6,435 14,302 — 276 21,013 — Total Joint Ventures $ 23,022 $ 14,550 $ — $ 3,141 $ 40,713 $ 1,302 Non-Control Investments EMCAP Loan Holdings, LLC $ 1,000 $ — $ — $ — $ 1,000 $ 95 Biller Genie Software, LLC 360 — — — 360 — Total Non-Control Investments $ 1,360 $ — $ — $ — $ 1,360 $ 95 Total Affiliate Investments $ 24,382 $ 14,550 $ — $ 3,141 $ 42,073 $ 1,397 The following table summarizes the amounts due to and due from affiliated companies as of September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Due to affiliated companies 1 $ 246 $ 158 Due from affiliated companies 2 5 7 Total due to/due from affiliated companies $ 241 $ 151 1 Included within Other assets 2 Included within Accounts payable, accrued expenses, and other liabilities The following table summarizes the income earned from our joint ventures for the periods ended September 30, 2024 and 2023: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Servicing income $ 576 $ 345 $ 1,446 $ 855 Dividend income 373 330 1,112 1,302 Total income $ 949 $ 675 $ 2,558 $ 2,157 In the normal course of business, Newtek Bank holds FDIC insured deposits from certain of the Company’s officers, directors and their associated companies. The following table summarizes the amounts due of deposits from related parties and their affiliated companies as of September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 FDIC insured deposits $ 4,707 $ 4,388 Non-FDIC insured deposits 1,348 1,167 Total deposits from related parties and their affiliated companies $ 6,055 $ 5,555

SERVICING ASSETS (Tables)

SERVICING ASSETS (Tables)	9 Months Ended
	Sep. 30, 2024
Transfers and Servicing [Abstract]
Fair value and valuation assumption	The following tables summarizes the fair value and valuation assumptions related to servicing assets at September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Weighted Range Weighted Range Unobservable Input Amount Average Minimum Maximum Amount Average Minimum Maximum Servicing assets at FV: $ 23,967 $ 29,336 Discount factor 1 12.50 % 12.50 % 12.50 % 13.50 % 13.50 % 13.50 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % 19.00 % 19.00 % 19.00 % Servicing assets at LCM: 22,144 10,389 Discount factor 1 13.09 % 12.00 % 13.50 % 13.50 % 13.50 % 13.50 % Cumulative prepayment rate 35.53 % 22.50 % 75.00 % 29.76 % 22.50 % 75.00 % Average cumulative default rate 19.25 % 19.00 % 20.00 % 19.14 % 19.00 % 20.00 % Total $ 46,111 $ 39,725 1 Determined based on risk spreads and observable secondary market transactions. The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of September 30, 2024 and December 31, 2023. In addition to the inputs noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The tables below are not intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements at September 30, 2024 and December 31, 2023. Fair Value as of Weighted Range September 30, 2024 Unobservable Input Average Minimum Maximum Assets: Loans HFI, at FV - accrual $ 334,872 Market yields 6.55 % 6.55 % 6.55 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % Loans HFI, at FV - non-accrual $ 59,599 Market yields 6.66 % 6.66 % 6.66 % Cumulative prepayment rate — % — % — % Average cumulative default rate 30.00 % 30.00 % 30.00 % Loans HFS, at FV $ 242,225 Market yields 7.03 % 6.44 % 7.61 % Cumulative prepayment rate 75.00 % 75.00 % 75.00 % Average cumulative default rate 12.50 % 5.00 % 20.00 % Joint ventures $ 55,750 Market yields 7.61 % 7.61 % 7.61 % Cost of equity 11.00 % 8.00 % 14.00 % Weighted average cost of capital 7.50 % 6.00 % 9.00 % Non-control equity investments $ 740 Market yields 10.00 % 8.00 % 12.00 % Weighted average cost of capital 23.20 % 23.20 % 23.20 % Servicing assets 1 $ 23,967 Market yields 12.50 % 12.50 % 12.50 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % Other real estate owned $ 2,199 Appraised value N/A N/A N/A Liabilities: Equity warrants $ 108 Expected volatility 45.00 % 45.00 % 45.00 % Dividend yield 6.10 % 6.10 % 6.10 % Risk free rate 3.73 % 3.73 % 3.73 % 1 $24.0 million of servicing assets at held at FV and $22.1 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS. Fair Value as of Weighted Range December 31, 2023 Unobservable Input Average Minimum Maximum Assets: Loans HFI, at FV - accrual $ 421,627 Market yields 7.75 % 7.75 % 7.75 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % Loans HFI, at FV - non-accrual $ 48,174 Market yields 7.39 % 7.39 % 7.39 % Cumulative prepayment rate — % — % — % Average cumulative default rate 30.00 % 30.00 % 30.00 % Loans HFS, at FV $ 118,867 Market yields 6.85 % 6.50 % 7.75 % Cumulative prepayment rate 61.03 % 55.60 % 75.00 % Average cumulative default rate 20.00 % 20.00 % 20.00 % Joint ventures $ 40,859 Market yields 8.00 % 8.00 % 8.00 % Cost of equity 12.00 % 10.00 % 14.00 % Weighted average cost of capital 8.50 % 7.50 % 9.50 % Non-control equity investments $ 368 Market yields 10.00 % 8.00 % 12.00 % $ 360 Cost N/A N/A N/A Servicing assets 1 $ 29,336 Market yields 13.50 % 13.50 % 13.50 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % Other real estate owned $ 1,110 Appraised value N/A N/A N/A Liabilities: Equity warrants $ 141 Expected volatility 43.00 % 43.00 % 43.00 % Dividend yield 5.20 % 5.20 % 5.20 % Risk free rate 3.88 % 3.88 % 3.88 % 1
Schedule of servicing fee income	Servicing fee income earned for the three and nine months ended September 30, 2024 and 2023 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Servicing fee income $4,958 $4,602 $14,922 $13,304
Servicing Asset at LOCOM	The following tables show a rollforward of servicing assets measured at LCM for the nine months ended September 30, 2024 and 2023: Servicing Assets, at LCM September 30, 2024 December 31, 2023 $ 10,389 Amortization 1 (2,959) Additions 1 14,715 Impairment assessment — September 30, 2024 $ 22,145 1 Included within Net gains on sales of loans in the Consolidated Statements of Income Servicing Assets, at LCM September 30, 2023 December 31, 2022 $ — Additions/(removal) of entities consolidating after Conversion to BHC 486 Amortization 1 (360) Additions 1 6,872 Impairment assessment — September 30, 2023 $ 6,998 1

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill	The following table summarizes changes in the carrying amount of goodwill: September 30, 2024 December 31, 2023 Banking $ 271 $ 271 Payments 13,814 13,814 Technology 1 — 11,800 Total goodwill $ 14,085 $ 25,885 1 The technology goodwill is classified as Held for Sale in anticipation of the NTS Sale. Refer to NOTE 9—ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE.
Schedule of intangible assets	The following table summarizes intangible assets: At September 30, 2024 At December 31, 2023 Gross carrying Amount Accumulated Amortization Net Carrying amount Gross carrying Amount Accumulated Amortization Net Carrying amount Core Deposits $ 1,040 $ (331) $ 709 $ 1,040 $ (197) $ 843 Payments Customer Lists — — — 8,575 (8,562) 13 Technology Customer Lists¹ — — — 6,525 (3,146) 3,379 Total intangible assets $ 1,040 $ (331) $ 709 $ 16,140 $ (11,905) $ 4,235 Amortization expense for the three and nine months ended September 30, 2024 and 2023 is as follows, and is included in Depreciation and amortization on the Consolidated Statements of Income: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Amortization expense $192 $387 $593 $1,198
Intangible asset amortization schedule	The remaining estimated aggregate future amortization expense for intangible assets as of September 30, 2024 is as follows: Amortization Expense 2024 $ 42 2025 156 2026 135 2027 114 2028 94 Thereafter 168 Total $ 709

ASSETS AND LIABILITIES DIRECT_2

ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE (Tables)	9 Months Ended
	Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]
Assets and liabilities held for sale	The following tables present the assets classified as held for sale and the liabilities directly associated with assets classified as held for sale as of September 30, 2024: ASSETS LIABILITIES Held for Sale Directly Associated with Assets Held for Sale Cash and due from banks $ 1,464 Lease liabilities $ 685 Goodwill 11,800 Deferred tax liabilities, net 1,542 Intangibles 3,030 Accounts payable, accrued expenses and other liabilities 2,738 Right of use assets 619 Other assets 3,606 $ 20,519 $ 4,965 The intangible asset for customer lists within the technology segment existed prior to the consolidation of the technology segment into NewtekOne following the Acquisition. As of September 30, 2024 Gross carrying Amount Accumulated Amortization Net Carrying amount Technology Customer Lists $ 6,525 $ (3,495) $ 3,030

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of fair value, assets and liabilities measured on recurring basis	The following tables present fair value measurements of certain of the Company’s assets and liabilities measured at fair value and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values as of September 30, 2024 and December 31, 2023: Fair Value Measurements at September 30, 2024 Total Level 1 Level 2 Level 3 Assets: Debt securities available-for-sale U.S. Treasury notes $ 20,810 $ 20,810 $ — $ — Government agency debentures 2,980 — 2,980 — Loans held for sale, at fair value 242,225 — — 242,225 Loans held for investment, at fair value 394,471 — — 394,471 Other real estate owned 1 2,199 — — 2,199 Non-controlled/affiliate investments 740 — — 740 Servicing assets 2 23,967 — — 23,967 Joint ventures 55,750 — — 55,750 Total assets measured at fair value $ 743,142 $ 20,810 $ 2,980 $ 719,352 Liabilities: Equity warrants 3 $ 108 $ — $ — $ 108 Derivative instruments ,3,4 68 — 68 — Total liabilities measured at fair value $ 176 $ — $ 68 $ 108 1 Included in Other assets on the Consolidated Statements of Financial Condition. 2 $24.0 million of servicing assets at held at FV and $22.1 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS. 3 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition. 4 Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. Fair Value Measurements at December 31, 2023 Total Level 1 Level 2 Level 3 Assets: Debt securities available-for-sale U.S. Treasury notes $ 29,304 $ 29,304 $ — $ — Government agency debentures 2,867 — 2,867 — Loans held for sale, at fair value 118,867 — — 118,867 Loans held for investment, at fair value 469,801 — — 469,801 Other real estate owned 1 1,110 — — 1,110 Non-controlled/affiliate investments 728 — — 728 Servicing assets 2 29,336 — — 29,336 Joint ventures 40,859 — — 40,859 Total assets measured at fair value $ 692,872 $ 29,304 $ 2,867 $ 660,701 Liabilities: Equity warrants 3 $ 141 $ — $ — $ 141 Derivative instruments 3,4 630 — 630 — Total liabilities measured at fair value $ 771 $ — $ 630 $ 141 1 Included in Other assets on the Consolidated Statements of Financial Condition. 2 $29.3 million of servicing assets held at FV and $10.4 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS 2 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition. 3 Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The following tables represents the changes in the investments, servicing assets and liabilities measured at fair value using Level 3 inputs for the nine months ended September 30, 2024 and 2023: Nine Months Ended September 30, 2024 Loans HFI, at FV Loans HFS, at FV Joint Ventures Servicing Assets, at FV Non-Control Investments Warrant Liabilities 2 Other Real Estate Owned 1 Fair value, December 31, 2023 $ 469,801 $ 118,867 $ 40,859 $ 29,336 $ 728 $ 141 $ 1,110 Reclasses between loans at FV and LCM 263 2,508 — — — — — Sales (2,888) (166,648) — — — — (956) Principal payments received (54,656) (9,375) — — — — — Foreclosed real estate acquired (2,251) — — — — — 2,251 SBA loans, funded 122 12,966 — — — — — ALP loans, funded — 191,440 — — — — — Mortgage loans, funded — 79,432 — — — — — Additions — — — 14 — — — Purchases and repurchases of loans 1,296 — — — — — — Capital contributions/(distributions) — — 5,457 — (116) — — Change in valuation due to: Changes in valuation inputs or assumptions 2,614 13,058 9,434 805 128 (33) (206) Other factors (19,830) (23) — (6,188) — — — Fair value, September 30, 2024 $ 394,471 $ 242,225 $ 55,750 $ 23,967 $ 740 $ 108 $ 2,199 1 Included in Other assets on the Consolidated Statements of Financial Condition. 2 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition. Nine Months Ended September 30, 2023 Loans HFI, at FV Loans HFS, Controlled Investments Joint Ventures Servicing Assets, Non-Control Investments Warrant Liabilities 2 Other Real Estate Owned 1 Fair value, December 31, 2022 $ 505,268 $ 19,168 $ 259,217 $ 23,022 $ 30,268 $ 1,360 $ — $ 3,529 Net gain (loss) on loans under the fair value option 12,132 456 Additions/(removal) of entities — 69,745 (259,217) — — — — — Reclass of Loans HFS to HFI 5,879 (24,712) — — — — — — Change in valuation due to: Changes in valuation inputs or assumptions — — — 3,141 3,584 — — — Other factors — — — — (5,150) — — (240) Realized gain (loss) (18,032) 13,700 — — — — (117) (457) SBA investments, funded 38,616 161,742 — — — — — — ALP loans, funded — 44,660 — — — — — — Foreclosed real estate acquired (2,195) — — — — — — 2,195 Purchases and repurchases of loans 9,461 5,279 — 14,550 — — — — Sales — (212,673) — — — — — (2,198) Principal payments received (58,142) (6,898) — — — — — — Additions — — — — 2,590 — 311 — Fair Value, September 30, 2023 $ 492,987 $ 70,467 $ — $ 40,713 $ 31,292 $ 1,360 $ 194 $ 2,829 1 Included in Other assets on the Consolidated Statements of Financial Condition. 2 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition. September 30, 2024 Carrying Amount Fair Value Amount by Level: Total Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 9,688 $ 9,688 $ — $ — $ 9,688 Restricted cash 27,929 27,929 — — 27,929 Interest bearing deposits in banks 152,805 152,805 — — 152,805 Debt securities available-for-sale, at FV 23,790 20,810 2,980 — 23,790 Loans HFS, at FV 242,225 — — 242,225 242,225 Loans HFS, at LCM 60,203 — — 60,256 60,256 Loans HFI, at FV 394,471 — — 394,471 394,471 Total loans HFI, at amortized cost, net of deferred fees and costs 518,489 — — 554,506 554,506 Federal Home Loan Bank and Federal Reserve Bank stock 3,608 — 3,608 — 3,608 Joint ventures, at FV 55,750 — — 55,750 55,750 Non-control investments 740 — — 740 740 Financial Liabilities: Time deposits 256,774 — 277,569 — 277,569 Borrowings 655,834 — 301,213 361,273 662,486 December 31, 2023 Carrying Amount Fair Value Amount by Level: Total Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 15,398 $ 15,398 $ — $ — $ 15,398 Restricted cash 30,919 30,919 — — 30,919 Interest bearing deposits in banks 137,689 137,689 — — 137,689 Debt securities available-for-sale, at FV 32,171 29,305 2,866 — 32,171 Loans HFS, at FV 118,867 — — 118,867 118,867 Loans HFS, at LCM 56,607 — — 56,733 56,733 Loans HFI, at FV 469,801 — — 469,801 469,801 Total loans HFI, at amortized cost, net of deferred fees and costs 336,305 — — 337,133 337,133 Federal Home Loan Bank and Federal Reserve Bank stock 3,635 — 3,635 — 3,635 Joint ventures, at FV 40,859 — — 40,859 40,859 Non-control investments 728 — — 728 728 Financial Liabilities: Time deposits 167,041 — 168,542 — 168,542 Borrowings 644,122 — 187,555 454,239 641,794
Fair value and valuation assumption	The following tables summarizes the fair value and valuation assumptions related to servicing assets at September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Weighted Range Weighted Range Unobservable Input Amount Average Minimum Maximum Amount Average Minimum Maximum Servicing assets at FV: $ 23,967 $ 29,336 Discount factor 1 12.50 % 12.50 % 12.50 % 13.50 % 13.50 % 13.50 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % 19.00 % 19.00 % 19.00 % Servicing assets at LCM: 22,144 10,389 Discount factor 1 13.09 % 12.00 % 13.50 % 13.50 % 13.50 % 13.50 % Cumulative prepayment rate 35.53 % 22.50 % 75.00 % 29.76 % 22.50 % 75.00 % Average cumulative default rate 19.25 % 19.00 % 20.00 % 19.14 % 19.00 % 20.00 % Total $ 46,111 $ 39,725 1 Determined based on risk spreads and observable secondary market transactions. The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of September 30, 2024 and December 31, 2023. In addition to the inputs noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The tables below are not intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements at September 30, 2024 and December 31, 2023. Fair Value as of Weighted Range September 30, 2024 Unobservable Input Average Minimum Maximum Assets: Loans HFI, at FV - accrual $ 334,872 Market yields 6.55 % 6.55 % 6.55 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % Loans HFI, at FV - non-accrual $ 59,599 Market yields 6.66 % 6.66 % 6.66 % Cumulative prepayment rate — % — % — % Average cumulative default rate 30.00 % 30.00 % 30.00 % Loans HFS, at FV $ 242,225 Market yields 7.03 % 6.44 % 7.61 % Cumulative prepayment rate 75.00 % 75.00 % 75.00 % Average cumulative default rate 12.50 % 5.00 % 20.00 % Joint ventures $ 55,750 Market yields 7.61 % 7.61 % 7.61 % Cost of equity 11.00 % 8.00 % 14.00 % Weighted average cost of capital 7.50 % 6.00 % 9.00 % Non-control equity investments $ 740 Market yields 10.00 % 8.00 % 12.00 % Weighted average cost of capital 23.20 % 23.20 % 23.20 % Servicing assets 1 $ 23,967 Market yields 12.50 % 12.50 % 12.50 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % Other real estate owned $ 2,199 Appraised value N/A N/A N/A Liabilities: Equity warrants $ 108 Expected volatility 45.00 % 45.00 % 45.00 % Dividend yield 6.10 % 6.10 % 6.10 % Risk free rate 3.73 % 3.73 % 3.73 % 1 $24.0 million of servicing assets at held at FV and $22.1 million of servicing assets are held at LCM. Refer to NOTE 7—SERVICING ASSETS. Fair Value as of Weighted Range December 31, 2023 Unobservable Input Average Minimum Maximum Assets: Loans HFI, at FV - accrual $ 421,627 Market yields 7.75 % 7.75 % 7.75 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % Loans HFI, at FV - non-accrual $ 48,174 Market yields 7.39 % 7.39 % 7.39 % Cumulative prepayment rate — % — % — % Average cumulative default rate 30.00 % 30.00 % 30.00 % Loans HFS, at FV $ 118,867 Market yields 6.85 % 6.50 % 7.75 % Cumulative prepayment rate 61.03 % 55.60 % 75.00 % Average cumulative default rate 20.00 % 20.00 % 20.00 % Joint ventures $ 40,859 Market yields 8.00 % 8.00 % 8.00 % Cost of equity 12.00 % 10.00 % 14.00 % Weighted average cost of capital 8.50 % 7.50 % 9.50 % Non-control equity investments $ 368 Market yields 10.00 % 8.00 % 12.00 % $ 360 Cost N/A N/A N/A Servicing assets 1 $ 29,336 Market yields 13.50 % 13.50 % 13.50 % Cumulative prepayment rate 22.50 % 22.50 % 22.50 % Average cumulative default rate 19.00 % 19.00 % 19.00 % Other real estate owned $ 1,110 Appraised value N/A N/A N/A Liabilities: Equity warrants $ 141 Expected volatility 43.00 % 43.00 % 43.00 % Dividend yield 5.20 % 5.20 % 5.20 % Risk free rate 3.88 % 3.88 % 3.88 % 1

DEPOSITS (Tables)

DEPOSITS (Tables)	9 Months Ended
	Sep. 30, 2024
Banking and Thrift, Interest [Abstract]
Deposit liabilities	The following table summarizes deposits by type: September 30, 2024 December 31, 2023 Non-interest-bearing: Demand $ 11,040 $ 10,053 Interest-bearing: Checking 67,204 11,456 Money market 56,482 15,803 Savings 257,958 259,152 Time deposits 256,774 167,041 Total interest-bearing 638,418 453,452 Total deposits $ 649,458 $ 463,505 Time deposits, money market, and interest-bearing checking obtained through brokers $ 64,550 $ 53,548 Aggregate amount of deposit accounts that exceeded the FDIC limit $ 94,239 $ 66,511 Demand deposit overdrafts reclassified as loan balances $ 7 $ 53 Certificates of deposit in excess of $0.25 million $ 55,025 $ 20,070
Time deposit maturities	The following table summarizes the scheduled maturities of time deposits: 2024 $ 120,204 2025 79,340 2026 36,059 2027 20,361 2028 671 Thereafter 139 Total time deposits $ 256,774

BORROWINGS (Tables)

BORROWINGS (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of long-term debt instruments	At September 30, 2024 and December 31, 2023, the Company had borrowings composed of the following: September 30, 2024 December 31, 2023 Commitments Borrowings Outstanding Weighted Average Interest Rate Commitments Borrowings Outstanding Weighted Average Interest Rate Bank Lines of Credit 1 : Webster NMS Note $ 54,871 $ 33,666 7.30 % $ 54,871 $ 36,628 7.94 % SPV I Capital One Facility 60,000 7,561 8.01 % 60,000 16,080 8.20 % SPV II Deutsche Bank Facility 50,000 328 9.98 % 50,000 6,799 10.04 % SPV III One Florida Bank Facility 30,000 (104) 9.00 % 30,000 257 9.50 % FHLB Advances 2 106,507 15,800 2.23 % 113,891 23,184 2.13 % Notes issued by Parent Company 1 : 2024 Notes 3 — — — % 38,250 38,124 5.75 % 2025 5.00% Notes 30,000 29,825 5.00 % 30,000 29,563 5.00 % 2025 8.125% Notes 50,000 49,825 8.13 % 50,000 49,433 8.13 % 2026 Notes 115,000 114,102 5.50 % 115,000 113,564 5.50 % 2028 Notes 40,000 38,639 8.00 % 40,000 38,378 8.00 % 2029 8.50% Notes 71,875 69,500 8.50 % — — — % 2029 8.625% Notes 75,000 72,525 8.63 % — — — % Notes payable - Securitization Trusts 4 227,301 224,167 7.79 % 296,223 292,112 7.84 % Total $ 910,554 $ 655,834 7.33 % $ 878,235 $ 644,122 7.04 % 1 Net of deferred financing costs. Negative borrowings outstanding are the result of the facilities being paid down to zero principal balance as of September 30, 2024 while the associated deferred financing costs remain 2 At September 30, 2024 and December 31, 2023, the carrying amount of Newtek Bank’s FHLB borrowings includes a $0.1 million and $0.2 million purchase accounting adjustment, respectively. 3 On August 1, 2024, the 2024 Notes matured. 4 At September 30, 2024 and December 31, 2023, the net assets of the consolidated Trusts totaled $13.9 million and $14.8 million, respectively. Outstanding borrowings that are presented net of deferred financing costs, which include the bank lines of credit, the 2024, 2025, 2026, 2028, and 2029 Notes, and the Notes payable - Securitization Trusts, consisted of the following: September 30, 2024 December 31, 2023 Principal balance Unamortized deferred financing costs Net carrying amount 1 Principal balance Unamortized deferred financing costs Net carrying amount 1 Bank Lines of Credit: Webster NMS Note $ 33,890 $ (224) $ 33,666 $ 36,881 $ (253) $ 36,628 SPV I Capital One Facility 7,600 (39) 7,561 16,300 (220) 16,080 SPV II Deutsche Bank Facility 346 (18) 328 6,900 (101) 6,799 SPV III One Florida Bank Facility — (104) (104) 375 (118) 257 Notes issued by Parent Company: 2024 Notes — — — 38,250 (126) 38,124 2025 5.00% Notes 30,000 (175) 29,825 30,000 (437) 29,563 2025 8.125% Notes 50,000 (175) 49,825 50,000 (567) 49,433 2026 Notes 115,000 (898) 114,102 115,000 (1,436) 113,564 2028 Notes 40,000 (1,361) 38,639 40,000 (1,622) 38,378 2029 8.50% Notes 71,875 (2,375) 69,500 — — — 2029 8.625% Notes 75,000 (2,475) 72,525 — — — Notes Payable - Securitization Trusts 227,301 (3,134) 224,167 296,223 (4,111) 292,112 1
Schedule of carrying values and estimated fair values of debt instruments	The fair values of the 2029 Notes, 2028 Notes, 2026 Notes and 2024 Notes are based on the closing public share price on the date of measurement as included in the chart below. September 30, 2024 December 31, 2023 Closing Price Fair Value Closing Price Fair Value 2029 8.625% Notes $ 25.10 $ 75,300 $ — $ — 2029 8.50% Notes 25.10 72,163 — — 2028 Notes 25.34 40,544 25.04 40,070 2026 Notes 24.61 113,206 23.75 109,250 2024 Notes — — 24.99 38,235
Schedule of debt interest expense	Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the three and nine months ended September 30, 2024 and 2023 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Total interest expense $ 12,976 $ 13,447 $ 38,923 $ 38,933

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Breakdown of derivatives outstanding	The following is a breakdown of the derivatives outstanding as of September 30, 2024 and December 31, 2023: September 30, 2024 December 31, 2023 Fair Value Remaining Fair Value Remaining Contract Type Notional 1 Asset Liability 2 Maturity (years) Notional 1 Asset Liability 2 Maturity (years) 5-year Treasury Futures $ (60,038) $ — $ 68 0.25 years $ (27,869) $ — $ 630 0.25 years 1 Shown as a negative number when the position is sold short. 2 Shown in Accounts payable, accrued expenses, and other liabilities in the accompanying Consolidated Statements of Financial Condition.
Gains and losses on derivatives	The following table indicates the net realized gains (losses) and unrealized appreciation (depreciation) on derivatives as included in Other noninterest income in the Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023: Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Contract Type Unrealized Appreciation/(Depreciation) Realized Gain/(Loss) Unrealized Appreciation/(Depreciation) Realized Gain/(Loss) Unrealized Appreciation/(Depreciation) Realized Gain/(Loss) Unrealized Appreciation/(Depreciation) Realized Gain/(Loss) 5-year Treasury Futures $ 356 $ (2,015) $ (441) $ 1,158 $ 562 $ (1,527) $ 54 $ 843

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Summary of obligations and commitments under operating lease and employment agreements	The following summarizes the Company’s obligations and commitments, as of September 30, 2024 for future minimum cash payments required under operating lease and employment agreements: Year Operating Leases Employment Agreements 1 Total 2024 $ 527 $ 866 $ 1,393 2025 2,147 902 3,049 2026 2,028 — 2,028 2027 478 — 478 2028 — — — Thereafter — — — Total $ 5,180 $ 1,768 $ 6,948 1 Employment agreements with certain of the Company’s named executive officers.

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Schedule of shares sold	The following table summarizes the total shares sold and net proceeds received under the 2023 ATM Equity Distribution Agreement: Nine Months Ended September 30, 2024 Year Ended December 31, 2023 Shares sold 1,100 — Net weighted average price per share $ 12.56 $ — Net proceeds $ 13,818 $ — Placement agent fees paid $ 282 $ —
Distribution of assets, liabilities and stockholders' equity	The following table summarizes dividend declarations and distributions on the Series A Preferred Stock during the nine months ended September 30, 2024 and 2023: Date Declared Record Date Payment Date Amount Per Share Cash Distribution Nine months ended September 30, 2024 March 19, 2024 March 28, 2024 April 1, 2024 $ 20.00 $ 400 June 27, 2024 June 28, 2024 July 1, 2024 $ 20.00 $ 400 September 16, 2024 September 30, 2024 October 1, 2024 $ 20.00 $ 400 Nine months ended September 30, 2023 April 13, 2023 March 20, 2023 April 14, 2023 $ 12.44 $ 249 June 27, 2023 June 27, 2023 July 1, 2023 $ 20.00 $ 400 September 27, 2023 September 27, 2023 October 2, 2023 $ 20.00 $ 400 Record Date Payment Date Amount Per Share Cash Distribution DRIP Shares Issued Dividend Shares Issued Date Declared # $ # $ Nine months ended September 30, 2024 March 19, 2024 April 1, 2024 April 15, 2024 $ 0.19 $ 4,617 — $ — 6 $ 71 June 27, 2024 July 9, 2024 July 19, 2024 $ 0.19 $ 4,827 — $ — 5 $ 78 September 16, 2024 October 10, 2024 October 21, 2024 $ 0.19 $ 4,837 — $ — 8 $ 114 Nine months ended September 30, 2023 February 27, 2023 April 4, 2023 April 14, 2023 $ 0.18 $ 4,291 6 $ 72 5 $ 60 June 27, 2023 July 10, 2023 July 21, 2023 $ 0.18 $ 4,293 4 $ 73 3 $ 60 September 27, 2023 October 10, 2023 October 20, 2023 $ 0.18 $ 4,293 6 $ 71 5 $ 63

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of earnings per share	Three Months Ended Nine Months Ended 2024 2023 2024 2023 (as restated) Basic earnings per share: Net income available to common shareholders $ 11,534 $ 10,519 $ 31,329 $ 35,431 Weighted-average basic shares outstanding 25,425 24,277 24,773 24,255 Basic earnings per share $ 0.45 $ 0.43 $ 1.26 $ 1.46 Diluted earnings per share: Net income, for diluted earnings per share $ 11,534 $ 10,519 $ 31,329 $ 35,431 Add: Preferred dividends on dilutive Series A convertible preferred stock¹ 400 — — — Net income, for diluted earnings per share 11,934 10,519 31,329 35,431 Total weighted-average basic shares outstanding 25,425 24,277 24,773 24,255 Add effect of dilutive restricted stock awards² 213 136 151 81 Add effect of dilutive Series A convertible preferred stock³ 951 — — — Total weighted-average diluted shares outstanding⁴ 26,589 24,413 24,924 24,336 Diluted earnings per share $ 0.45 $ 0.43 $ 1.26 $ 1.46 Anti-dilutive warrants, restricted stock awards, and Series A convertible preferred stock 48 1,009 998 1,166 1 For periods presented other than the three months ended September 30, 2024, the Series A convertible preferred stock was antidilutive and, therefore, the preferred dividends have not been added back to the numerator of Net income, for diluted earnings per share. 2 Incremental diluted shares from restricted stock awards under the treasury stock method. 3 Incremental diluted shares from Series A convertible preferred stock under the treasury stock method. The dilutive effect on common shares under the if-converted method of the Series A convertible preferred stock have been added back to the denominator in calculating diluted earnings per share for the three months ended September 30, 2024. 4

BENEFIT PLANS (Tables)

BENEFIT PLANS (Tables)	9 Months Ended
	Sep. 30, 2024
Retirement Benefits [Abstract]
Schedule of restricted stock issuances	The following table summarizes the restricted stock issuances under the 2015 and 2023 Stock Incentive Plans, net of shares forfeited, if any: 2023 Plan 2 2015 Plan Restricted Stock authorized under the plan 1 3.0 million 1.5 million Net restricted stock (granted)/forfeited during: Year ended December 31, 2020 and prior — (223) Year ended December 31, 2021 — (215) Year ended December 31, 2022 — (251) Year ended December 31, 2023 (82) 28 Nine months ended September 30, 2024 (213) — Total net restricted stock (granted)/forfeited (295) (661) 1 No stock options were granted under the 2015 or 2023 Stock Incentive Plans. 2 The 2023 Stock Incentive Plan provides for an initial share reserve of up to 3.0 million shares of Common Stock. Awards of restricted stock granted under the 2015 and 2023 Stock Incentive Plans generally vest over a one one The following table summarizes the Company’s ESPP activity from inception through September 30, 2024: Period Ended September 30, 2024 Year Ended December 31, 2023 Offering Period 2 Offering Period 1 Offering Period 1 Commencement date 4/1/2024 10/1/2023 10/1/2023 End date 9/15/2024 3/15/2024 12/15/2023 Shares purchased 10 5 4 Weighted average share price $ 10.21 $ 9.83 $ 13.05 Total purchased, net of discount $ 101 $ 51 $ 51 For the period ended September 30, 2024, the ESPP share activity is as follows: Shares Available for future purchases, January 1, 2024 196 Purchases (10) Available for future purchases, September 30, 2024 186
Investment company, changes in net assets	Details of the Company’s outstanding shares related to restricted stock awards as of September 30, 2024 and December 31, 2023 are outlined below: September 30, 2024 December 31, 2023 Shares outstanding related to grants of restricted stock awards 487 345 Weighted average grant date fair value of awards $15.90 $19.18 Additional shares outstanding related to dividends on awards 46 44
Schedule of unrecognized compensation	As of September 30, 2024 and December 31, 2023, the Company’s total unrecognized compensation expense related to unvested shares of restricted stock granted was as follows. September 30, 2024 December 31, 2023 Unrecognized compensation expense on unvested awards $4,280 $3,610 Weighted-average period of unrecognized compensation expense 1.4 years 1.7 years The Company’s total stock-based compensation expense included within Salaries and employee benefits expense in the Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023 is summarized below: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Restricted stock awards $ 913 $ 592 $ 2,244 $ 2,015 ESPP 5 — 17 — Total compensation cost recognized for stock-based compensation plans $ 918 $ 592 $ 2,261 $ 2,015

SEGMENTS (Tables)

SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Schedule of segments	As of and for the nine months ended September 30, 2024 Banking Technology NSBF Payments Corporate and Other Eliminations Consolidated Interest income $ 48,884 $ 3 $ 28,894 $ 1,776 $ 11,628 $ (3,494) $ 87,691 Interest expense 20,635 — 16,733 2,289 22,515 (3,494) 58,678 Net interest income/(loss) 28,249 3 12,161 (513) (10,887) — 29,013 Provision for loan credit losses 16,742 — — — — — 16,742 Net interest income after provision for loan credit losses 11,507 3 12,161 (513) (10,887) — 12,271 Noninterest income 100,326 19,701 (15,475) 39,090 76,646 (67,050) 153,238 Noninterest expense 61,358 19,755 14,647 24,404 28,290 (27,884) 120,570 Income before taxes 50,475 (51) (17,961) 14,173 37,469 (39,166) 44,939 Income tax expense (benefit) 15,136 — — — (2,726) — 12,410 Net income $ 35,339 $ (51) $ (17,961) $ 14,173 $ 40,195 $ (39,166) $ 32,529 Assets $ 935,357 $ 21,919 $ 535,935 $ 62,710 $ 988,402 $ (870,153) $ 1,674,170 As of and for the nine months ended September 30, 2023 (as restated) Banking Technology NSBF Payments Corporate and Other Eliminations Consolidated Interest income $ 22,364 $ — $ 38,841 $ 1,627 $ 8,673 $ (3,501) $ 68,004 Interest expense 11,265 246 20,223 2,735 18,703 (3,501) 49,671 Net interest income/(loss) 11,099 (246) 18,618 (1,108) (10,030) — 18,333 Provision for loan credit losses 7,339 — — — — — 7,339 Net interest income after provision for loan credit losses 3,760 (246) 18,618 (1,108) (10,030) — 10,994 Noninterest income 58,887 23,683 26,500 34,982 75,863 (92,250) 127,665 Noninterest expense 42,858 21,551 23,514 23,975 22,673 (26,451) 108,120 Income before taxes 19,789 1,886 21,604 9,899 43,160 (65,799) 30,539 Income tax expense (benefit) 6,725 87 44 447 (13,244) — (5,941) Net income $ 13,064 $ 1,799 $ 21,560 $ 9,452 $ 56,404 $ (65,799) $ 36,480 Assets $ 603,766 $ 30,211 $ 659,822 $ 50,994 $ 697,408 $ (648,706) $ 1,393,495 As of and for the three months ended September 30, 2024 Banking Technology NSBF Payments Corporate and Other Eliminations Consolidated Interest income $ 18,820 $ 2 $ 8,871 $ 612 $ 4,122 $ (1,156) $ 31,271 Interest expense 7,603 — 5,079 730 8,034 (1,156) 20,290 Net interest income 11,217 2 3,792 (118) (3,912) — 10,981 Provision for loan credit losses 6,928 — — — — — 6,928 Net interest income after provision for loan credit losses 4,289 2 3,792 (118) (3,912) — 4,053 Noninterest income 35,423 5,494 (8,845) 12,719 36,536 (29,476) 51,851 Noninterest expense 20,467 5,395 5,738 7,296 9,814 (9,863) 38,847 Income before taxes 19,245 101 (10,791) 5,305 22,810 (19,613) 17,057 Income tax expense (benefit) 5,760 — — — (637) — 5,123 Net income (loss) $ 13,485 $ 101 $ (10,791) $ 5,305 $ 23,447 $ (19,613) $ 11,934 Assets $ 935,357 $ 21,919 $ 535,935 $ 62,710 $ 988,402 $ (870,153) $ 1,674,170 As of and for the three months ended September 30, 2023 (as restated) Banking Technology NSBF Payments Corporate and Other Eliminations Consolidated Interest income $ 10,513 $ — $ 12,868 $ 482 $ 3,848 $ (975) $ 26,736 Interest expense 5,371 — 6,930 925 6,408 (975) 18,659 Net interest income 5,142 — 5,938 (443) (2,560) — 8,077 Provision for loan credit losses 3,446 — — — — — 3,446 Net interest income after provision for loan credit losses 1,696 — 5,938 (443) (2,560) — 4,631 Noninterest income 26,360 7,283 188 12,173 41,283 (46,261) 41,026 Noninterest expense 14,789 6,517 4,698 7,755 6,420 (8,859) 31,320 Income before taxes 13,267 766 1,428 3,975 32,303 (37,402) 14,337 Income tax expense (benefit) 4,462 — 5 — (1,049) — 3,418 Net income (loss) $ 8,805 $ 766 $ 1,423 $ 3,975 $ 33,352 $ (37,402) $ 10,919 Assets $ 603,766 $ 30,211 $ 659,822 $ 50,994 $ 697,408 $ (648,706) $ 1,393,495

DESCRIPTION OF BUSINESS AND B_2

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) - NTS Sale - Discontinued Operations, Held-for-Sale shares in Millions, $ in Millions	Aug. 11, 2024 USD ($) shares
Business Acquisition [Line Items]
Consideration	$ 4
Consideration, shares receivable (in shares) | shares	4
Earn-out amount	$ 5
Equity interest	30.20%

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Property, Plant and Equipment [Line Items]
Loan-to-value ratio	75%
Debt service coverage, minimum	1.2
Cash deposits in excess of insured amounts	$ 32,500
Restricted cash	27,929	$ 30,919	$ 70,737
Deferred tax liabilities, net	4,700	0
Deferred tax asset, net	0	$ 5,230
SBA investment
Property, Plant and Equipment [Line Items]
Principal balances sold	55,900
Premiums	$ 6,200

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Cash and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Cash and due from banks	$ 9,688	$ 15,398	$ 15,610
Restricted cash	27,929	30,919	70,737
Interest bearing deposits in banks	152,805	137,689	137,346
Total cash and cash equivalents	$ 190,422	$ 184,006	$ 223,693	$ 125,606

BUSINESS COMBINATIONS - Narrati

BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands	Jan. 06, 2023	Sep. 30, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Goodwill		$ 14,085	$ 25,885
NBNYC
Business Acquisition [Line Items]
Acquisition consideration	$ 20,000
Acquisition costs	1,300
Contributions to subsidiary	31,000
Goodwill	271
Goodwill decrease	$ 1,000
Transaction costs			$ 200
NBNYC | Core Deposits
Business Acquisition [Line Items]
Intangible asset, useful life	10 years

BUSINESS COMBINATIONS - Purchas

BUSINESS COMBINATIONS - Purchase Price (Details) - USD ($) $ in Thousands	Jan. 06, 2023	Sep. 30, 2024	Dec. 31, 2023
Fair value of assets acquired:
Goodwill		$ 14,085	$ 25,885
NBNYC
Business Acquisition [Line Items]
Purchase price consideration	$ 21,281
Fair value of assets acquired:
Cash and due from banks	29,138
Interest-bearing deposits in banks	3,284
Total cash and cash equivalents	32,422
Available-for-sale securities (at fair value)	5,004
Other investments	1,226
Loans receivable	159,155
Federal Reserve Bank stock, at cost	54
Federal Home Loan Bank stock, at cost	1,470
Accrued interest receivable	353
Deferred income taxes	495
Goodwill	271
Core deposit intangible	1,040
Other assets	399
Total assets	201,889
Deposits:
Demand	21,878
Savings, Super NOW, and Money Market	10,975
Certificates of deposit	104,162
Total deposits	137,015
Advances from the Federal Home Loan Bank	27,817
Accrued expenses and other liabilities	15,776
Total liabilities	$ 180,608

BUSINESS COMBINATIONS - Loans P

BUSINESS COMBINATIONS - Loans Purchased (Details) - NBNYC $ in Thousands	Jan. 06, 2023 USD ($)
Business Acquisition [Line Items]
Par value (unpaid principal balance)	$ 159,155
Financial Asset Acquired with Credit Deterioration
Business Acquisition [Line Items]
Par value (unpaid principal balance)	42,443
ACL at acquisition	(870)
Non-credit (discount)	(1,559)
Fair Value	$ 40,014

INVESTMENTS - Investment Portfo

INVESTMENTS - Investment Portfolio (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Non-Control Investments
Debt Securities, Available-for-Sale [Line Items]
Cost	$ 680	$ 796
Fair Value	740	728	$ 1,360	$ 1,360
Joint Ventures
Debt Securities, Available-for-Sale [Line Items]
Cost	43,321	37,864
Fair Value	55,750	40,859	$ 40,713	$ 23,022
Debt securities available-for-sale, at fair value
Debt Securities, Available-for-Sale [Line Items]
Cost	23,734	32,372
Fair Value	23,790	32,171
Federal Home Loan Bank and Federal Reserve Bank stock
Debt Securities, Available-for-Sale [Line Items]
Cost	3,608	3,635
Fair Value	3,608	3,635
Total investments
Debt Securities, Available-for-Sale [Line Items]
Cost	71,343	74,667
Fair Value	$ 83,888	$ 77,393

INVESTMENTS - Narrative (Detail

INVESTMENTS - Narrative (Details) - USD ($)	Sep. 30, 2024	Jul. 23, 2024	Dec. 31, 2023	Jan. 28, 2022	May 20, 2019
Debt Securities, Available-for-Sale [Line Items]
Accrued interest receivable on available-for-sale securities	$ 13,600		$ 200,000
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Other assets		Other assets
Class A Notes
Debt Securities, Available-for-Sale [Line Items]
Notes sold		$ 137,200,000
Class B Notes
Debt Securities, Available-for-Sale [Line Items]
Notes sold		17,200,000
TSO Notes
Debt Securities, Available-for-Sale [Line Items]
Collateral		$ 190,500,000
Newtek Conventional Lending, LLC
Debt Securities, Available-for-Sale [Line Items]
Investment sale				$ 56,300,000
Yield percentage				3.209%
Newtek Conventional Lending, LLC | Newtek Commercial Lending
Debt Securities, Available-for-Sale [Line Items]
Joint venture ownership percentage					50%
Newtek Conventional Lending, LLC | Conventional Lending TCP Holding
Debt Securities, Available-for-Sale [Line Items]
Joint venture ownership percentage					50%

INVESTMENTS - Joint Venture Sum

INVESTMENTS - Joint Venture Summarized Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Investment Company, Balance Sheet Items [Abstract]
Cash	$ 9,688	$ 15,610	$ 9,688	$ 15,610		$ 15,398
Restricted cash	27,929	70,737	27,929	70,737		30,919
Other assets	62,984		62,984			56,102
Total assets	1,674,170	1,393,495	1,674,170	1,393,495		1,429,513
Total liabilities	1,392,385		1,392,385			1,180,467
Net assets	281,785	242,202	281,785	242,202	$ 274,002	249,046	$ 235,449
Total liabilities and shareholders' equity	1,674,170		1,674,170			1,429,513
Investment Company, Income and Expense [Abstract]
Unrealized (loss) gain on derivative transactions			562	54
Net increase in net assets resulting from operations	11,934	10,919	32,529	36,480
Newtek Conventional Lending, LLC
Investment Company, Balance Sheet Items [Abstract]
Cash	606		606			612
Restricted cash	1,895		1,895			3,298
Investments in loans, at fair value	62,962		62,962			70,083
Cost	61,933		61,933			68,403
Other assets	1,616		1,616			1,614
Total assets	67,079		67,079			75,607
Securitization notes payable	30,834		30,834			38,805
Other liabilities	832		832			905
Total liabilities	31,666		31,666			39,710
Net assets	35,413		35,413			35,897
Total liabilities and shareholders' equity	67,079		67,079			75,607
Investment Company, Income and Expense [Abstract]
Interest and other income	1,202	1,291	3,766	4,576
Total expenses	442	614	1,374	1,923
Net investment income (loss)	760	677	2,392	2,653
Unrealized appreciation on investments	417	(216)	(652)	1,713
Net increase in net assets resulting from operations	1,177	461	1,740	4,366
Newtek-TSO JV
Investment Company, Balance Sheet Items [Abstract]
Cash	620		620			4,401
Restricted cash	5,093		5,093			1,183
Investments in loans, at fair value	198,403		198,403			66,689
Cost	188,019		188,019			62,696
Other assets	5,233		5,233			1,374
Total assets	209,349		209,349			73,647
Bank notes payable	0		0			29,636
Securitization notes payable	142,719		142,719			0
Other liabilities	377		377			1,092
Total liabilities	143,096		143,096			30,728
Net assets	66,253		66,253			42,919
Total liabilities and shareholders' equity	209,349		209,349			$ 73,647
Investment Company, Income and Expense [Abstract]
Interest and other income	5,722	876	12,405	1,968
Total expenses	3,114	1,424	6,678	3,042
Net investment income (loss)	2,608	(548)	5,727	(1,074)
Unrealized appreciation on investments	2,114	1,464	6,392	1,270
Realized loss on investments	0	0	0	(16)
Realized gain (loss) on derivative transactions	(1,436)	351	(391)	518
Unrealized (loss) gain on derivative transactions	832	(151)	694	(146)
Net increase in net assets resulting from operations	$ 4,118	$ 1,116	$ 12,422	$ 552

INVESTMENTS - Transaction with

INVESTMENTS - Transaction with Affiliated Companies (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Affiliate Investments
Debt Securities, Available-for-Sale [Line Items]
Fair Value	$ 41,587	$ 24,382
Proceeds from sale of loans held for sale	25,642	14,550
Return of Investment, Operating Activity	(20,301)	0
Net Gains/(Losses)	9,562	3,141
Fair Value	56,490	42,073
Dividend Income	1,128	1,397
Joint Ventures
Debt Securities, Available-for-Sale [Line Items]
Fair Value	40,859	23,022
Proceeds from sale of loans held for sale	25,642	14,550
Return of Investment, Operating Activity	(20,185)	0
Net Gains/(Losses)	9,434	3,141
Fair Value	55,750	40,713
Dividend Income	1,112	1,302
Non-Control Investments
Debt Securities, Available-for-Sale [Line Items]
Fair Value	728	1,360
Proceeds from sale of loans held for sale	0	0
Return of Investment, Operating Activity	(116)	0
Net Gains/(Losses)	128	0
Fair Value	740	1,360
Dividend Income	16	95
Investment, Identifier [Axis]: Biller Genie Software, LLC
Debt Securities, Available-for-Sale [Line Items]
Fair Value	360	360
Proceeds from sale of loans held for sale	0	0
Return of Investment, Operating Activity	0	0
Net Gains/(Losses)	60	0
Fair Value	420	360
Dividend Income	0	0
Investment, Identifier [Axis]: EMCAP Loan Holdings, LLC
Debt Securities, Available-for-Sale [Line Items]
Fair Value	368	1,000
Proceeds from sale of loans held for sale	0	0
Return of Investment, Operating Activity	(116)	0
Net Gains/(Losses)	68	0
Fair Value	320	1,000
Dividend Income	16	95
Investment, Identifier [Axis]: Newtek Conventional Lending, LLC
Debt Securities, Available-for-Sale [Line Items]
Fair Value	19,400	16,587
Proceeds from sale of loans held for sale	0	248
Return of Investment, Operating Activity	0	0
Net Gains/(Losses)	(500)	2,865
Fair Value	18,900	19,700
Dividend Income	1,112	1,302
Investment, Identifier [Axis]: Newtek TSO II Conventional Credit Partners, LP
Debt Securities, Available-for-Sale [Line Items]
Fair Value	21,459	6,435
Proceeds from sale of loans held for sale	25,642	14,302
Return of Investment, Operating Activity	(20,185)	0
Net Gains/(Losses)	9,934	276
Fair Value	36,850	21,013
Dividend Income	$ 0	$ 0

INVESTMENTS - Available-for-Sal

INVESTMENTS - Available-for-Sale Debt Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	$ 23,734	$ 32,372
Unrealized Gains	78	0
Unrealized Losses	22	201
Fair Value	23,790	32,171
Total available for sale securities pledged	23,790	30,730
U.S. Treasury notes
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	20,734	29,372
Unrealized Gains	78	0
Unrealized Losses	2	67
Fair Value	20,810	29,304
Government agency debentures
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Amortized Cost	3,000	3,000
Unrealized Gains	0	0
Unrealized Losses	20	134
Fair Value	2,980	2,867
Pledged for deposits
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Total available for sale securities pledged	0	0
Pledged for borrowings and other
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Total available for sale securities pledged	$ 23,790	$ 30,730

INVESTMENTS - Securities Settle

INVESTMENTS - Securities Settled or Sold (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) loan	Sep. 30, 2023 USD ($) loan	Sep. 30, 2024 USD ($) loan	Sep. 30, 2023 USD ($) loan
Investments, Debt and Equity Securities [Abstract]
Securities sold or settled, number | loan	2	0	3	0
Securities sold or settled | $	$ 10,000	$ 0	$ 39,500	$ 0

INVESTMENTS - Debt Securities,

INVESTMENTS - Debt Securities, Unrealized Losses (Details) $ in Thousands	Sep. 30, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan
Debt Securities, Available-for-Sale [Line Items]
Less Than 12 Months, Fair Value	$ 6,937	$ 32,171
Less Than 12 Months, Unrealized Losses	2	201
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	$ 20	$ 0
Number of Holdings | loan	3	3
Total, Fair Value	$ 6,937	$ 32,171
Total, Unrealized Losses	22	201
U.S. Treasury notes
Debt Securities, Available-for-Sale [Line Items]
Less Than 12 Months, Fair Value	3,957	29,304
Less Than 12 Months, Unrealized Losses	2	67
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	$ 0	$ 0
Number of Holdings | loan	1	1
Total, Fair Value	$ 3,957	$ 29,304
Total, Unrealized Losses	2	67
Government agency debentures
Debt Securities, Available-for-Sale [Line Items]
Less Than 12 Months, Fair Value	2,980	2,867
Less Than 12 Months, Unrealized Losses	0	134
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	$ 20	$ 0
Number of Holdings | loan	2	2
Total, Fair Value	$ 2,980	$ 2,867
Total, Unrealized Losses	$ 20	$ 134

INVESTMENTS - Maturity (Details

INVESTMENTS - Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Amortized Cost
Maturing within 1 year	$ 15,722	$ 32,372
After 1 year through 5 years	8,012	0
Total available for sale securities	23,734	32,372
Fair Value
Maturing within 1 year	15,723	32,171
After 1 year through 5 years	8,067	0
Total available for sale securities	$ 23,790	$ 32,171

LOANS - Investment Portfolio (D

LOANS - Investment Portfolio (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	$ 391,157	$ 482,563
Fair Value	394,471	469,801
Food Services and Drinking Places | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	34,783	43,779
Fair Value	36,835	43,955
Professional, Scientific, and Technical Services | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	31,885	36,248
Fair Value	32,384	35,377
Specialty Trade Contractors | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	30,964	40,193
Fair Value	30,776	35,451
Ambulatory Health Care Services | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	22,289	27,291
Fair Value	22,559	26,633
Amusement, Gambling, and Recreation Industries | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	17,383	21,289
Fair Value	18,430	22,839
Administrative and Support Services | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	17,425	21,319
Fair Value	17,003	19,521
Merchant Wholesalers, Durable Goods | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	16,094	21,873
Fair Value	15,638	21,152
Repair and Maintenance | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	13,201	15,886
Fair Value	14,304	17,005
Personal and Laundry Services | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	13,120	12,867
Fair Value	13,890	13,584
Merchant Wholesalers, Nondurable Goods | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	11,970	15,623
Fair Value	11,852	15,573
Social Assistance | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	8,544	8,857
Fair Value	9,303	9,721
Fabricated Metal Product Manufacturing | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	9,832	12,439
Fair Value	9,227	13,205
Truck Transportation
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	2,100	2,100
Fair Value	1,000	1,100
Truck Transportation | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	11,388	15,590
Fair Value	8,897	12,113
Construction of Buildings | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	9,056	9,868
Fair Value	8,423	9,890
Food Manufacturing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	4,700	4,700
Fair Value	4,200	3,400
Food Manufacturing | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	8,994	10,233
Fair Value	8,392	8,714
Accommodation | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	7,701	9,259
Fair Value	8,144	10,162
Support Activities for Mining | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	7,209	8,455
Fair Value	7,082	7,754
Transportation Equipment Manufacturing | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	6,519	7,687
Fair Value	6,897	7,999
Rental and Leasing Services | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	6,159	6,764
Fair Value	6,482	7,178
Food and Beverage Stores | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	6,167	7,026
Fair Value	6,408	7,306
Motor Vehicle and Parts Dealers | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	6,208	9,046
Fair Value	6,303	9,382
Nursing and Residential Care Facilities | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	5,834	6,182
Fair Value	6,234	6,709
Educational Services | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	4,528	5,368
Fair Value	4,822	5,636
Building Material and Garden Equipment and Supplies Dealers | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	4,334	7,384
Fair Value	4,476	6,781
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost		300
Fair Value		200
Other | SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cost	79,570	102,037
Fair Value	$ 79,710	$ 96,161

LOANS - Loans (Details)

LOANS - Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	$ 518,489	$ 336,305
Deferred fees and costs	301	393
Loans held for investment, at amortized cost, net of deferred fees and costs	518,489	336,305
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	319,324	163,918
CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	178,875	163,803
C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	19,989	8,191
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, at amortized cost, net of deferred fees and costs	$ 518,188	$ 335,912

LOANS - Aging Status (Details)

LOANS - Aging Status (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	$ 394,471		$ 469,801
Total Carried at Amortized Cost	518,489		336,305
Non- accrual	10,118		102
Deferred fees and costs	301		393
Allowance for credit losses	(26,045)	$ (21,098)	(12,574)	$ (8,209)	$ (4,764)	$ 0
Loans held for investment, at amortized cost, net	492,444		323,731
SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	319,324		163,918
Non- accrual	10,118		102
Allowance for credit losses	(24,747)		(10,852)
CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	178,875		163,803
Non- accrual	0		0
Allowance for credit losses	(1,270)	(1,358)	(1,408)	(1,431)	(1,373)	0
C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	19,989		8,191
Allowance for credit losses	(28)	$ (215)	(314)	$ (316)	$ (267)	$ 0
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	518,188		335,912
Performing | 30-59 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	23		20,380
Performing | 30-59 Days | SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0		3,637
Performing | 30-59 Days | CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	5,397		948
Performing | 30-59 Days | C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0		0
Performing | 30-59 Days | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	5,397		4,585
Performing | 60-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	19,927		16,075
Performing | 60-89 Days | SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	3,120		311
Performing | 60-89 Days | CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	47		0
Performing | 60-89 Days | C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0		0
Performing | 60-89 Days | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	3,167		311
Performing | 90-119 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	9,634		0
Performing | 90-119 Days | SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0		0
Performing | 90-119 Days | CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0		0
Performing | 90-119 Days | C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0		0
Performing | 90-119 Days | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0		0
Performing | 120+ Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	435		0
Performing | 120+ Days | SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0		0
Performing | 120+ Days | CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0		0
Performing | 120+ Days | C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0		0
Performing | 120+ Days | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0		0
Performing | Total Past Due and Non-accrual
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	89,618		84,629
Performing | Total Past Due and Non-accrual | SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	19,038		4,700
Performing | Total Past Due and Non-accrual | CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	9,114		5,569
Performing | Total Past Due and Non-accrual | C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	0		0
Performing | Total Past Due and Non-accrual | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	28,152		10,269
Performing | Current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	304,853		385,172
Performing | Current | SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	300,286		159,218
Performing | Current | CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	169,761		158,234
Performing | Current | C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	19,989		8,191
Performing | Current | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Carried at Amortized Cost	490,036		325,643
Nonperforming
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Accounted for Under the FV Option	59,599		48,174
Nonperforming | SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	15,918		752
Nonperforming | CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	3,670		4,621
Nonperforming | C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	0		0
Nonperforming | Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non- accrual	$ 19,588		$ 5,373

LOANS - Credit Quality Indicato

LOANS - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
SBA, at fair value
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	$ 0	$ 34,638
Year Two	29,142	161,046
Year Three	142,012	59,828
Year Four	51,398	29,149
Year Five	25,059	63,955
Prior	146,860	121,185
Total	394,471	469,801
SBA, at fair value | Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	34,289
Year Two	26,474	151,929
Year Three	125,599	53,998
Year Four	44,975	27,870
Year Five	23,537	52,175
Prior	110,949	94,751
Total	331,534	415,012
SBA, at fair value | Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	349
Year Two	2,668	8,968
Year Three	16,268	5,813
Year Four	6,406	1,257
Year Five	1,500	11,764
Prior	35,895	25,727
Total	62,737	53,878
SBA, at fair value | Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	0	0
SBA, at fair value | Risk Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	149
Year Three	145	17
Year Four	17	22
Year Five	22	16
Prior	16	707
Total	200	911
SBA, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	161,773	163,918
Year Two	157,551	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	319,324	163,918
SBA, at amortized cost, net of deferred fees and costs | Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	158,014	161,263
Year Two	126,586	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	284,600	161,263
SBA, at amortized cost, net of deferred fees and costs | Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	3,347	2,655
Year Two	26,225	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	29,572	2,655
SBA, at amortized cost, net of deferred fees and costs | Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	387	0
Year Two	4,718	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	5,105	0
SBA, at amortized cost, net of deferred fees and costs | Risk Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	25	0
Year Two	22	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	47	0
CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	32,739	53,567
Year Two	26,017	28,224
Year Three	33,343	15,538
Year Four	16,430	910
Year Five	1,276	11,172
Prior	69,070	54,392
Total	178,875	163,803
CRE, at amortized cost, net of deferred fees and costs | Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	32,692	53,567
Year Two	26,017	28,224
Year Three	33,343	14,590
Year Four	16,430	0
Year Five	396	8,888
Prior	64,678	49,771
Total	173,556	155,040
CRE, at amortized cost, net of deferred fees and costs | Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	47	0
Year Two	0	0
Year Three	0	948
Year Four	0	910
Year Five	880	2,284
Prior	4,392	4,621
Total	5,319	8,763
CRE, at amortized cost, net of deferred fees and costs | Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	0	0
C&I
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	17,001	6,174
Year Two	971	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	2,017	2,017
Total	19,989	8,191
C&I | Risk Grades 1-4
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	17,001	6,174
Year Two	971	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	2,017	2,017
Total	19,989	8,191
C&I | Risk Grades 5-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	0	0
C&I | Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	0	0
Year Two	0	0
Year Three	0	0
Year Four	0	0
Year Five	0	0
Prior	0	0
Total	0	0
Total Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Year One	211,513	258,297
Year Two	213,681	189,270
Year Three	175,355	75,366
Year Four	67,828	30,059
Year Five	26,335	75,127
Prior	217,947	177,594
Total	$ 912,659	$ 805,713

LOANS - Allowance for Credit Lo

LOANS - Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 21,098	$ 4,764	$ 12,574	$ 0
Adjustment to Beginning Balance due to PCD marks					$ 0	$ 870
Charge offs	(1,763)	0	(2,933)	0
Recoveries	0	0	0	0
Provision for Credit Losses	6,710	3,445	16,404	7,339
Ending balance	26,045	8,209	26,045	8,209
Provision for credit losses relating to unfunded commitments	200		300
CRE, at amortized cost, net of deferred fees and costs
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,358	1,373	1,408	0
Adjustment to Beginning Balance due to PCD marks					0	774
Charge offs	0	0	(236)	0
Recoveries	0	0	0	0
Provision for Credit Losses	(88)	58	98	657
Ending balance	1,270	1,431	1,270	1,431
C&I
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	215	267	314	0
Adjustment to Beginning Balance due to PCD marks					0	96
Charge offs	0	0	0	0
Recoveries	0	0	0	0
Provision for Credit Losses	(187)	49	(286)	220
Ending balance	28	316	28	316
SBA 7(a)
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	19,525	3,124	10,852	0
Adjustment to Beginning Balance due to PCD marks					$ 0	$ 0
Charge offs	(1,763)	0	(2,697)	0
Recoveries	0	0		0
Provision for Credit Losses	6,985	3,338	16,592	6,462
Ending balance	$ 24,747	$ 6,462	$ 24,747	$ 6,462

LOANS - Individually and Collec

LOANS - Individually and Collectively Evaluated (Details) $ in Thousands	Sep. 30, 2024 USD ($) loan	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($) loan	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
ACL
Individually Evaluated	$ 6,324		$ 102
Collectively Evaluated	19,721		12,472
Total	$ 26,045	$ 21,098	$ 12,574	$ 8,209	$ 4,764	$ 0
Recorded Investment
Number of loans individually evaluated | loan	62		5
CRE, at amortized cost, net of deferred fees and costs
ACL
Individually Evaluated	$ 0		$ 0
Collectively Evaluated	1,270		1,408
Total	1,270	1,358	1,408	1,431	1,373	0
Recorded Investment
Individually Evaluated	3,670		4,621
Collectively Evaluated	175,205		159,182
Total	178,875		163,803
C&I
ACL
Individually Evaluated	0		0
Collectively Evaluated	28		314
Total	28	$ 215	314	$ 316	$ 267	$ 0
Recorded Investment
Individually Evaluated	0		0
Collectively Evaluated	19,989		8,191
Total	19,989		8,191
SBA
ACL
Individually Evaluated	6,324		102
Collectively Evaluated	18,423		10,750
Total	24,747		10,852
Recorded Investment
Individually Evaluated	15,918		727
Collectively Evaluated	303,406		163,191
Total	319,324		163,918
Total Loans
Recorded Investment
Individually Evaluated	19,588		5,348
Collectively Evaluated	498,600		330,564
Total	$ 518,188		$ 335,912

LOANS - Nonaccrual Loans (Detai

LOANS - Nonaccrual Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual without Allowance	$ 9,470	$ 5,246
Nonaccrual with Allowance	10,118	102
ACL	6,324	102
SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual without Allowance	5,800	625
Nonaccrual with Allowance	10,118	102
ACL	6,324	102
CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccrual without Allowance	3,670	4,621
Nonaccrual with Allowance	0	0
ACL	$ 0	$ 0

LOANS - Individually Assessed (

LOANS - Individually Assessed (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 19,588	$ 5,348
ACL	6,324	102
Accrued interest	13,600	10,700
SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	15,918	727
ACL	6,324	102
CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	3,670	4,621
ACL	0	0
Real Estate Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	18,476	5,246
Real Estate Collateral | SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	14,806	625
Real Estate Collateral | CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	3,670	4,621
Non-Real Estate Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,112	102
Non-Real Estate Collateral | SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	1,112	102
Non-Real Estate Collateral | CRE, at amortized cost, net of deferred fees and costs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total	$ 0	$ 0

LOANS - Held-for-Sale (Details)

LOANS - Held-for-Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	$ 242,225	$ 118,867
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	59,208	55,829
Financing receivable, held-for-sale, deferred fees and costs	0	0
Financing receivable, held-for-sale, lower of cost or market, deferred fees and costs	995	778
Loans held for sale, at fair value	242,225	118,867
Loans held for sale, at LCM	60,203	56,607
SBA 504 First Lien
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	121,843	66,387
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	37,442	38,787
SBA 504 Second Lien
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	14,317	20,757
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	8,092	5,741
SBA 7(a)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	3,119	262
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	0	64
SBA 7(a) Partials
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	0	104
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	13,674	11,237
ALP
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing receivable, held-for-sale, before deferred fees and costs	102,946	31,357
Financing receivable, held-for-sale, lower of cost or market, before deferred fees and costs	$ 0	$ 0

TRANSACTIONS WITH AFFILIATED _3

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Investments with Affiliates (Details) - Related Party - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Investments in and Advances to Affiliates, at Fair Value [Roll Forward]
Due to affiliated companies	$ 246	$ 158
Due from affiliated companies	5	7
Total due to/due from affiliated companies	$ 241	$ 151

TRANSACTIONS WITH AFFILIATED _4

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Transactions with Joint Ventures (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Related Party Transaction [Line Items]
Servicing income	$ 4,958	$ 4,602	$ 14,922	$ 13,304
Dividend income	374	388	1,128	1,397
Noninterest income	51,851	41,026	153,238	127,665
Joint Ventures | Related Party
Related Party Transaction [Line Items]
Servicing income	576	345	1,446	855
Dividend income	373	330	1,112	1,302
Noninterest income	$ 949	$ 675	$ 2,558	$ 2,157

TRANSACTIONS WITH AFFILIATED _5

TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS - Bank Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Total deposits from related parties and their affiliated companies	$ 649,458	$ 463,505
Officers and Directors
Related Party Transaction [Line Items]
FDIC insured deposits	4,707	4,388
Non-FDIC insured deposits	1,348	1,167
Total deposits from related parties and their affiliated companies	$ 6,055	$ 5,555

SERVICING ASSETS - Narrative (D

SERVICING ASSETS - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	$ 46,111	$ 39,725
SBA 7(a)
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	1,900,000
ALP Loans
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	$ 183,800

SERVICING ASSETS - Fair Value a

SERVICING ASSETS - Fair Value and Valuation Assumptions (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	$ 46,111	$ 39,725
Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	23,967	29,336
Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets at fair value	$ 22,144	$ 10,389	$ 6,998	$ 0
Weighted Average | Discount factor | Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1250	0.1350
Weighted Average | Discount factor | Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1309	0.1350
Weighted Average | Cumulative prepayment rate | Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Weighted Average | Cumulative prepayment rate | Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.3553	0.2976
Weighted Average | Average cumulative default rate | Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Weighted Average | Average cumulative default rate | Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1925	0.1914
Minimum | Discount factor | Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1250	0.1350
Minimum | Discount factor | Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1200	0.1350
Minimum | Cumulative prepayment rate | Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum | Cumulative prepayment rate | Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum | Average cumulative default rate | Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Minimum | Average cumulative default rate | Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Maximum | Discount factor | Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1250	0.1350
Maximum | Discount factor | Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1350	0.1350
Maximum | Cumulative prepayment rate | Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Maximum | Cumulative prepayment rate | Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.7500	0.7500
Maximum | Average cumulative default rate | Fair Value
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Maximum | Average cumulative default rate | Lower of Cost or Market
Servicing Assets at Fair Value [Line Items]
Servicing assets, measurement input	0.2000	0.2000

SERVICING ASSETS - LOCOM (Detai

SERVICING ASSETS - LOCOM (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Beginning value	$ 10,389
Additions/(removal) of entities consolidating after Conversion to BHC		$ 486
Amortization	2,959	360
Additions	14,715	6,872
Impairment assessment	0	$ 0
Ending value	$ 22,145

SERVICING ASSETS - Servicing Fe

SERVICING ASSETS - Servicing Fee Income (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Servicing Assets at Fair Value [Line Items]
Servicing income	$ 4,958		$ 4,602		$ 14,922	$ 13,304
Non-affiliate
Servicing Assets at Fair Value [Line Items]
Servicing income	$ 14,922	$ 4,958	$ 13,304	$ 4,602

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Goodwill [Line Items]
Total goodwill	$ 14,085	$ 25,885
Banking
Goodwill [Line Items]
Total goodwill	271	271
Payments
Goodwill [Line Items]
Total goodwill	13,814	13,814
Technology
Goodwill [Line Items]
Total goodwill	$ 0	$ 11,800

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands	Jan. 06, 2023	Sep. 30, 2024	Dec. 31, 2023
Goodwill [Line Items]
Goodwill acquired during period	$ 300
Intangible assets		$ 709	$ 4,235
Core Deposits
Goodwill [Line Items]
Intangible assets		$ 709	843
Technology Customer Lists¹
Goodwill [Line Items]
Intangible assets			$ 3,400
NBNYC | Core Deposits
Goodwill [Line Items]
Intangible asset, useful life	10 years

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	$ 1,040	$ 16,140
Accumulated Amortization	(331)	(11,905)
Total	709	4,235
Core Deposits
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	1,040	1,040
Accumulated Amortization	(331)	(197)
Total	709	843
Technology Customer Lists¹
Acquired Finite-Lived Intangible Assets [Line Items]
Total		3,400
Technology Customer Lists¹ | Payments
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	0	8,575
Accumulated Amortization	0	(8,562)
Total	0	13
Technology Customer Lists¹ | Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying Amount	0	6,525
Accumulated Amortization	0	(3,146)
Total	$ 0	$ 3,379

GOODWILL AND INTANGIBLE ASSET_5

GOODWILL AND INTANGIBLE ASSETS - Future Amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 42
2025	156
2026	135
2027	114
2028	94
Thereafter	168
Total	$ 709	$ 4,235

GOODWILL AND INTANGIBLE ASSET_6

GOODWILL AND INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 192	$ 387	$ 593	$ 1,198

ASSETS AND LIABILITIES DIRECT_3

ASSETS AND LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Assets	$ 20,519	$ 0
LIABILITIES
Liabilities	4,964	$ 0
NTS | Disposal Group, Held-for-Sale, Not Discontinued Operations
ASSETS
Cash and due from banks	1,464
Goodwill	11,800
Intangibles	3,030
Right of use assets	619
Other assets	3,606
Assets	20,519
LIABILITIES
Lease liabilities	685
Deferred tax liabilities, net	1,542
Accounts payable, accrued expenses and other liabilities	2,738
Liabilities	4,965
Intangible Assets
Gross carrying Amount	6,525
Accumulated Amortization	(3,495)
Net Carrying amount	$ 3,030

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value Levels (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Assets:
Debt securities available-for-sale	$ 23,790	$ 32,171
Loans held for sale, at fair value	242,225	118,867
Loans held for investment, at fair value	394,471	469,801
Other real estate owned	2,199	1,110
Servicing asset	23,967	29,336
Total assets measured at fair value	743,142	692,872
Liabilities:
Liabilities	$ 68	$ 630
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accounts payable, accrued expenses and other liabilities	Accounts payable, accrued expenses and other liabilities
Total liabilities measured at fair value	$ 176	$ 771
Carrying Amount
Cash and due from banks	9,688	15,398	$ 15,610
Restricted cash	27,929	30,919	70,737
Interest bearing deposits in banks	152,805	137,689	137,346
Debt securities available-for-sale, at fair value	23,790	32,171
Loans HFS, at FV	242,225	118,867
Loans held for sale, at LCM	60,203	56,607
Loans held for investment, at fair value	394,471	469,801
Loans held for investment, at amortized cost, net of deferred fees and costs	518,489	336,305
Federal Home Loan Bank and Federal Reserve Bank stock	3,608	3,635
Time deposits	256,774	167,041
Borrowings	655,834	644,122
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	23,790	32,171
Loans HFS, at FV	242,225	118,867
Loans HFS, at LCM	60,256	56,733
Total loans HFI, at amortized cost, net of deferred fees and costs	554,506	337,133
Federal Home Loan Bank and Federal Reserve Bank stock	3,608	3,635
Time deposits	277,569	168,542
Borrowings	662,486	641,794
U.S. Treasury notes
Assets:
Debt securities available-for-sale	20,810	29,304
Government agency debentures
Assets:
Debt securities available-for-sale	2,980	2,867
Loans Held For Sale
Assets:
Loans held for sale, at fair value	242,225	118,867
Carrying Amount
Loans HFS, at FV	242,225	118,867
Loans Held for Investment
Assets:
Loans held for investment, at fair value	394,471	469,801
Carrying Amount
Loans held for investment, at fair value	394,471	469,801
Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	9,688	15,398
Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	27,929	30,919
Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	152,805	137,689
Equity warrants
Liabilities:
Equity warrants	108	141
Joint Ventures
Assets:
Investments	55,750	40,859	40,713	$ 23,022
Carrying Amount
Investments in loans, at fair value	55,750	40,859	40,713	23,022
Non-Control Investments
Assets:
Investments	740	728	1,360	1,360
Carrying Amount
Investments in loans, at fair value	740	728	$ 1,360	$ 1,360
Level 1
Assets:
Loans held for investment, at fair value	0	0
Other real estate owned	0	0
Servicing asset	0	0
Total assets measured at fair value	20,810	29,304
Liabilities:
Liabilities	0	0
Total liabilities measured at fair value	0	0
Carrying Amount
Loans held for investment, at fair value	0	0
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	20,810	29,305
Loans HFS, at FV	0	0
Loans HFS, at LCM	0	0
Total loans HFI, at amortized cost, net of deferred fees and costs	0	0
Federal Home Loan Bank and Federal Reserve Bank stock	0	0
Time deposits	0	0
Borrowings	0	0
Level 1 | U.S. Treasury notes
Assets:
Debt securities available-for-sale	20,810	29,304
Level 1 | Government agency debentures
Assets:
Debt securities available-for-sale	0	0
Level 1 | Loans Held For Sale
Assets:
Loans held for sale, at fair value	0	0
Carrying Amount
Loans HFS, at FV	0	0
Level 1 | Loans Held for Investment
Assets:
Loans held for investment, at fair value	0	0
Carrying Amount
Loans held for investment, at fair value	0	0
Level 1 | Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	9,688	15,398
Level 1 | Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	27,929	30,919
Level 1 | Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	152,805	137,689
Level 1 | Equity warrants
Liabilities:
Equity warrants	0	0
Level 1 | Joint Ventures
Assets:
Investments	0	0
Carrying Amount
Investments in loans, at fair value	0	0
Level 1 | Non-Control Investments
Assets:
Investments	0	0
Carrying Amount
Investments in loans, at fair value	0	0
Level 2
Assets:
Loans held for investment, at fair value	0	0
Other real estate owned	0	0
Servicing asset	0	0
Total assets measured at fair value	2,980	2,867
Liabilities:
Liabilities	68	630
Total liabilities measured at fair value	68	630
Carrying Amount
Loans held for investment, at fair value	0	0
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	2,980	2,866
Loans HFS, at FV	0	0
Loans HFS, at LCM	0	0
Total loans HFI, at amortized cost, net of deferred fees and costs	0	0
Federal Home Loan Bank and Federal Reserve Bank stock	3,608	3,635
Time deposits	277,569	168,542
Borrowings	301,213	187,555
Level 2 | U.S. Treasury notes
Assets:
Debt securities available-for-sale	0	0
Level 2 | Government agency debentures
Assets:
Debt securities available-for-sale	2,980	2,867
Level 2 | Loans Held For Sale
Assets:
Loans held for sale, at fair value	0	0
Carrying Amount
Loans HFS, at FV	0	0
Level 2 | Loans Held for Investment
Assets:
Loans held for investment, at fair value	0	0
Carrying Amount
Loans held for investment, at fair value	0	0
Level 2 | Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	0	0
Level 2 | Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	0	0
Level 2 | Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	0	0
Level 2 | Equity warrants
Liabilities:
Equity warrants	0	0
Level 2 | Joint Ventures
Assets:
Investments	0	0
Carrying Amount
Investments in loans, at fair value	0	0
Level 2 | Non-Control Investments
Assets:
Investments	0	0
Carrying Amount
Investments in loans, at fair value	0	0
Level 3
Assets:
Loans held for investment, at fair value	394,471	469,801
Other real estate owned	2,199	1,110
Servicing asset	23,967	29,336
Total assets measured at fair value	719,352	660,701
Liabilities:
Equity warrants	108	141
Liabilities	0	0
Total liabilities measured at fair value	108	141
Carrying Amount
Loans held for investment, at fair value	394,471	469,801
Other Fair Value Financial Instruments
Debt securities available-for-sale, at fair value	0	0
Loans HFS, at FV	242,225	118,867
Loans HFS, at LCM	60,256	56,733
Total loans HFI, at amortized cost, net of deferred fees and costs	554,506	337,133
Federal Home Loan Bank and Federal Reserve Bank stock	0	0
Time deposits	0	0
Borrowings	361,273	454,239
Level 3 | U.S. Treasury notes
Assets:
Debt securities available-for-sale	0	0
Level 3 | Government agency debentures
Assets:
Debt securities available-for-sale	0	0
Level 3 | Loans Held For Sale
Assets:
Loans held for sale, at fair value	242,225	118,867
Carrying Amount
Loans HFS, at FV	242,225	118,867
Level 3 | Loans Held for Investment
Assets:
Loans held for investment, at fair value	394,471	469,801
Carrying Amount
Loans held for investment, at fair value	394,471	469,801
Level 3 | Cash and due from banks
Other Fair Value Financial Instruments
Cash and cash equivalents	0	0
Level 3 | Restricted cash
Other Fair Value Financial Instruments
Cash and cash equivalents	0	0
Level 3 | Interest bearing deposits in banks
Other Fair Value Financial Instruments
Cash and cash equivalents	0	0
Level 3 | Equity warrants
Liabilities:
Equity warrants	108	141
Level 3 | Non-affiliate | Loans Held For Sale
Assets:
Investments	242,225	118,867
Carrying Amount
Investments in loans, at fair value	242,225	118,867
Level 3 | Joint Ventures
Assets:
Investments	55,750	40,859
Carrying Amount
Investments in loans, at fair value	55,750	40,859
Level 3 | Non-Control Investments
Assets:
Investments	740	728
Carrying Amount
Investments in loans, at fair value	$ 740	$ 728

FAIR VALUE MEASUREMENTS - Level

FAIR VALUE MEASUREMENTS - Level III Rollforward (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Net Gains/(Losses)
Debt and Equity Securities, Realized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]		Net gains on sales of loans
Loans Held for Investment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	$ 469,801	$ 505,268
Net gain (loss) on loans under the fair value option		12,132
Reclasses between loans at FV and LCM	263	5,879
Gain (loss) included in earnings		(18,032)
Settlements	(54,656)	(58,142)
Purchases and repurchases of loans	1,296	9,461
Sales	(2,888)
Purchases	(2,251)	(2,195)
Fair value, ending balance	394,471	492,987
Loans Held for Investment | SBA investment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	122	38,616
Loans Held for Investment | Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	2,614
Loans Held for Investment | Factors Other Than Changes in Valuation Inputs Or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(19,830)
Loans Held For Sale
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	118,867	19,168
Net gain (loss) on loans under the fair value option		456
Reclasses between loans at FV and LCM	2,508	(24,712)
Gain (loss) included in earnings		13,700
Settlements	(9,375)	(6,898)
Purchases and repurchases of loans		5,279
Sales	(166,648)	(212,673)
Fair value, ending balance	242,225	70,467
Loans Held For Sale | SBA investment
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	12,966	161,742
Loans Held For Sale | Conventional Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	191,440	44,660
Loans Held For Sale | Mortgage Loan
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Funded	79,432
Loans Held For Sale | Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	13,058
Loans Held For Sale | Factors Other Than Changes in Valuation Inputs Or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(23)
Loans Held For Sale | Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Consolidation changes		69,745
Investments | Controlled Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance		259,217
Fair value, ending balance		0
Investments | Controlled Investments | Debt and Equity Securities, Unrealized Gain (Loss)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Consolidation changes		(259,217)
Investments | Joint Ventures
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	40,859	23,022
Gain (loss) included in earnings		3,141
Purchases and repurchases of loans		14,550
Purchases	5,457
Fair value, ending balance	55,750	40,713
Investments | Joint Ventures | Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	9,434
Investments | Non-Control Investments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	728	1,360
Purchases	(116)
Fair value, ending balance	740	1,360
Investments | Non-Control Investments | Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	128
Servicing Assets, at FV
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	29,336	30,268
Consolidation changes		(5,150)
Gain (loss) included in earnings		3,584
Purchases	14	2,590
Fair value, ending balance	23,967	31,292
Servicing Assets, at FV | Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	805
Servicing Assets, at FV | Factors Other Than Changes in Valuation Inputs Or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(6,188)
Warrant Liabilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	141	0
Gain (loss) included in earnings		(117)
Purchases		311
Fair value, ending balance	108	194
Warrant Liabilities | Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	(33)
Other Real Estate Owned
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, beginning balance	1,110	3,529
Consolidation changes		(240)
Gain (loss) included in earnings		(457)
Sales	(956)	(2,198)
Purchases	2,251	2,195
Fair value, ending balance	2,199	$ 2,829
Other Real Estate Owned | Changes In Valuation Inputs or Adjustments
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Gain (loss) included in earnings	$ (206)

FAIR VALUE MEASUREMENTS - Unobs

FAIR VALUE MEASUREMENTS - Unobservable Units (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset	$ 23,967	$ 29,336
Other real estate owned	2,199	1,110
Servicing assets at fair value	46,111	39,725
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets at fair value	23,967	29,336
Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets at fair value	22,144	10,389	$ 6,998	$ 0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing asset	23,967	29,336
Other real estate owned	2,199	1,110
Equity warrants	108	141
Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	55,750	40,859	40,713	23,022
Joint Ventures | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	55,750	40,859
Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	740	728	$ 1,360	$ 1,360
Non-Control Investments | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	740	728
Unguaranteed Investments Accrual | Non-affiliate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	334,872	421,627
Unguaranteed Investments Non-Accrual | Non-affiliate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	59,599	48,174
Loans Held For Sale | Non-affiliate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	242,225	118,867
Market yields | Investments | Non-Control Investments | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 740	368
Cost | Investments | Non-Control Investments | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments		$ 360
Weighted Average | Market yields | Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0761	0.0800
Weighted Average | Market yields | Unguaranteed Investments Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0655	0.0775
Weighted Average | Market yields | Unguaranteed Investments Non-Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0666	0.0739
Weighted Average | Market yields | Loans Held For Sale | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0703	0.0685
Weighted Average | Market yields | Investments | Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1000	0.1000
Servicing assets, measurement input	0.1250	0.1350
Weighted Average | Cumulative prepayment rate | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Weighted Average | Cumulative prepayment rate | Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.3553	0.2976
Weighted Average | Cumulative prepayment rate | Unguaranteed Investments Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2250	0.2250
Weighted Average | Cumulative prepayment rate | Unguaranteed Investments Non-Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0	0
Weighted Average | Cumulative prepayment rate | Loans Held For Sale | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.7500	0.6103
Weighted Average | Cumulative prepayment rate | Investments | Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Weighted Average | Average cumulative default rate | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Weighted Average | Average cumulative default rate | Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1925	0.1914
Weighted Average | Average cumulative default rate | Unguaranteed Investments Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1900	0.1900
Weighted Average | Average cumulative default rate | Unguaranteed Investments Non-Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.3000	0.3000
Weighted Average | Average cumulative default rate | Loans Held For Sale | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1250	0.2000
Weighted Average | Average cumulative default rate | Investments | Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Weighted Average | Cost | Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1100	0.1200
Weighted Average | Weighted average cost of capital | Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0750	0.0850
Weighted Average | Weighted average cost of capital | Investments | Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2320
Weighted Average | Expected volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.4500	0.4300
Weighted Average | Dividend yield
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0610	0.0520
Weighted Average | Risk free rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0373	0.0388
Minimum | Market yields | Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0761	0.0800
Minimum | Market yields | Unguaranteed Investments Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0655	0.0775
Minimum | Market yields | Unguaranteed Investments Non-Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0666	0.0739
Minimum | Market yields | Loans Held For Sale | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0644	0.0650
Minimum | Market yields | Investments | Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0800	0.0800
Servicing assets, measurement input	0.1250	0.1350
Minimum | Cumulative prepayment rate | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum | Cumulative prepayment rate | Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum | Cumulative prepayment rate | Unguaranteed Investments Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2250	0.2250
Minimum | Cumulative prepayment rate | Unguaranteed Investments Non-Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0	0
Minimum | Cumulative prepayment rate | Loans Held For Sale | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.7500	0.5560
Minimum | Cumulative prepayment rate | Investments | Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Minimum | Average cumulative default rate | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Minimum | Average cumulative default rate | Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Minimum | Average cumulative default rate | Unguaranteed Investments Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1900	0.1900
Minimum | Average cumulative default rate | Unguaranteed Investments Non-Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.3000	0.3000
Minimum | Average cumulative default rate | Loans Held For Sale | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0500	0.2000
Minimum | Average cumulative default rate | Investments | Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Minimum | Cost | Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0800	0.1000
Minimum | Weighted average cost of capital | Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0600	0.0750
Minimum | Weighted average cost of capital | Investments | Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2320
Minimum | Expected volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.4500	0.4300
Minimum | Dividend yield
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0610	0.0520
Minimum | Risk free rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0373	0.0388
Maximum | Market yields | Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0761	0.0800
Maximum | Market yields | Unguaranteed Investments Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0655	0.0775
Maximum | Market yields | Unguaranteed Investments Non-Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0666	0.0739
Maximum | Market yields | Loans Held For Sale | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0761	0.0775
Maximum | Market yields | Investments | Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1200	0.1200
Servicing assets, measurement input	0.1250	0.1350
Maximum | Cumulative prepayment rate | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Maximum | Cumulative prepayment rate | Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.7500	0.7500
Maximum | Cumulative prepayment rate | Unguaranteed Investments Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2250	0.2250
Maximum | Cumulative prepayment rate | Unguaranteed Investments Non-Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0	0
Maximum | Cumulative prepayment rate | Loans Held For Sale | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.7500	0.7500
Maximum | Cumulative prepayment rate | Investments | Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2250	0.2250
Maximum | Average cumulative default rate | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Maximum | Average cumulative default rate | Lower of Cost or Market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.2000	0.2000
Maximum | Average cumulative default rate | Unguaranteed Investments Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1900	0.1900
Maximum | Average cumulative default rate | Unguaranteed Investments Non-Accrual | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.3000	0.3000
Maximum | Average cumulative default rate | Loans Held For Sale | Non-affiliate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2000	0.2000
Maximum | Average cumulative default rate | Investments | Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Servicing assets, measurement input	0.1900	0.1900
Maximum | Cost | Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.1400	0.1400
Maximum | Weighted average cost of capital | Joint Ventures
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.0900	0.0950
Maximum | Weighted average cost of capital | Investments | Non-Control Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, measurement input	0.2320
Maximum | Expected volatility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.4500	0.4300
Maximum | Dividend yield
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0610	0.0520
Maximum | Risk free rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity warrants, measurement input	0.0373	0.0388

DEPOSITS - Deposits by Type (De

DEPOSITS - Deposits by Type (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Banking and Thrift, Interest [Abstract]
Noninterest-bearing	$ 11,040	$ 10,053
Interest-bearing:
Checking	67,204	11,456
Money market	56,482	15,803
Savings	257,958	259,152
Time deposits	256,774	167,041
Interest-bearing	638,418	453,452
Total deposits from related parties and their affiliated companies	649,458	463,505
Time deposits, money market, and interest-bearing checking obtained through brokers	64,550	53,548
Aggregate amount of deposit accounts that exceeded the FDIC limit	94,239	66,511
Demand deposit overdrafts reclassified as loan balances	$ 7	$ 53

DEPOSITS - Narrative (Details)

DEPOSITS - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Deposit Liability [Line Items]
Aggregate amount of deposit accounts that exceeded the FDIC limit	$ 94,239	$ 66,511
Certificates of Deposit
Deposit Liability [Line Items]
Aggregate amount of deposit accounts that exceeded the FDIC limit	$ 55,025	$ 20,070

DEPOSITS - Maturities (Details)

DEPOSITS - Maturities (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Banking and Thrift, Interest [Abstract]
2024	$ 120,204
2025	79,340
2026	36,059
2027	20,361
2028	671
Thereafter	139
Total time deposits	$ 256,774

BORROWINGS - Long-term Debt (De

BORROWINGS - Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Debt Instrument [Line Items]
Total	$ 910,554	$ 878,235
Borrowings	$ 655,834	$ 644,122
Weighted Average Interest Rate	7.33%	7.04%
Collateralized deposit	$ 1,674,170	$ 1,429,513	$ 1,393,495
Valuation adjustment, FHLB	100	200
Securitization Trusts
Debt Instrument [Line Items]
Collateralized deposit	13,900	14,800
Line of Credit | Webster Note - MWI
Debt Instrument [Line Items]
Commitments - Notes	54,871	54,871
Borrowings	$ 33,666	$ 36,628
Weighted Average Interest Rate	7.30%	7.94%
Line of Credit | Capital One Facilities | Capital One, SP1
Debt Instrument [Line Items]
Commitments - line of credit	$ 60,000	$ 60,000
Borrowings Outstanding - line of credit	$ 7,561	$ 16,080
Weighted Average Interest Rate	8.01%	8.20%
Line of Credit | Deutsche Bank Line of Credit
Debt Instrument [Line Items]
Commitments - line of credit	$ 50,000	$ 50,000
Borrowings Outstanding - line of credit	$ 328	$ 6,799
Weighted Average Interest Rate	9.98%	10.04%
Line of Credit | One Florida line of credit - SP3
Debt Instrument [Line Items]
Commitments - line of credit	$ 30,000	$ 30,000
Borrowings Outstanding - line of credit	$ (104)	$ 257
Weighted Average Interest Rate	9%	9.50%
Secured Debt | FHLB Advances
Debt Instrument [Line Items]
Commitments - Notes	$ 106,507	$ 113,891
Borrowings	$ 15,800	$ 23,184
Weighted Average Interest Rate	2.23%	2.13%
Secured Debt | Securitization Trusts
Debt Instrument [Line Items]
Commitments - Notes	$ 227,301	$ 296,223
Borrowings	$ 224,167	$ 292,112
Weighted Average Interest Rate	7.79%	7.84%
Medium-term Notes | 2024 Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 0	$ 38,250
Borrowings	$ 0	$ 38,124
Weighted Average Interest Rate	0%	5.75%
Medium-term Notes | 2025 5.00% Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 30,000	$ 30,000
Borrowings	$ 29,825	$ 29,563
Weighted Average Interest Rate	5%	5%
Medium-term Notes | 2025 8.125% Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 50,000	$ 50,000
Borrowings	$ 49,825	$ 49,433
Weighted Average Interest Rate	8.125%	8.125%
Medium-term Notes | 2026 Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 115,000	$ 115,000
Borrowings	$ 114,102	$ 113,564
Weighted Average Interest Rate	5.50%	5.50%
Medium-term Notes | 2028 Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 40,000	$ 40,000
Borrowings	$ 38,639	$ 38,378
Weighted Average Interest Rate	8%	8%
Medium-term Notes | 2029 8.50% Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 71,875
Borrowings	$ 69,500
Weighted Average Interest Rate	8.50%	8.50%
Medium-term Notes | 2029 8.625% Notes
Debt Instrument [Line Items]
Commitments - Notes	$ 75,000
Borrowings	$ 72,525
Weighted Average Interest Rate	8.625%	8.625%

BORROWINGS - Outstanding Borrow

BORROWINGS - Outstanding Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Weighted Average Interest Rate	7.33%	7.04%
Webster Note - MWI | Line of Credit
Debt Instrument [Line Items]
Principal balance	$ 33,890	$ 36,881
Unamortized deferred financing costs	(224)	(253)
Net carrying amount	$ 33,666	$ 36,628
Weighted Average Interest Rate	7.30%	7.94%
Capital One Facilities | Line of Credit
Debt Instrument [Line Items]
Principal balance	$ 7,600	$ 16,300
Unamortized deferred financing costs	(39)	(220)
Net carrying amount	7,561	16,080
Deutsche Bank Line of Credit | Line of Credit
Debt Instrument [Line Items]
Principal balance	346	6,900
Unamortized deferred financing costs	(18)	(101)
Net carrying amount	$ 328	$ 6,799
Weighted Average Interest Rate	9.98%	10.04%
One Florida line of credit - SP3 | Line of Credit
Debt Instrument [Line Items]
Principal balance	$ 0	$ 375
Unamortized deferred financing costs	(104)	(118)
Net carrying amount	$ (104)	$ 257
Weighted Average Interest Rate	9%	9.50%
2024 Notes | Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 0	$ 38,250
Unamortized deferred financing costs	0	(126)
Net carrying amount	$ 0	$ 38,124
Weighted Average Interest Rate	0%	5.75%
2025 5.00% Notes | Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 30,000	$ 30,000
Unamortized deferred financing costs	(175)	(437)
Net carrying amount	$ 29,825	$ 29,563
Weighted Average Interest Rate	5%	5%
2025 8.125% Notes | Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 50,000	$ 50,000
Unamortized deferred financing costs	(175)	(567)
Net carrying amount	$ 49,825	$ 49,433
Weighted Average Interest Rate	8.125%	8.125%
2026 Notes | Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 115,000	$ 115,000
Unamortized deferred financing costs	(898)	(1,436)
Net carrying amount	$ 114,102	$ 113,564
Weighted Average Interest Rate	5.50%	5.50%
2028 Notes | Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 40,000	$ 40,000
Unamortized deferred financing costs	(1,361)	(1,622)
Net carrying amount	$ 38,639	$ 38,378
Weighted Average Interest Rate	8%	8%
2029 8.50% Notes | Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 71,875
Unamortized deferred financing costs	(2,375)
Net carrying amount	$ 69,500
Weighted Average Interest Rate	8.50%	8.50%
2029 8.625% Notes | Medium-term Notes
Debt Instrument [Line Items]
Principal balance	$ 75,000
Unamortized deferred financing costs	(2,475)
Net carrying amount	$ 72,525
Weighted Average Interest Rate	8.625%	8.625%
Securitization Trusts | Secured Debt
Debt Instrument [Line Items]
Principal balance	$ 227,301	$ 296,223
Unamortized deferred financing costs	(3,134)	(4,111)
Net carrying amount	$ 224,167	$ 292,112
Weighted Average Interest Rate	7.79%	7.84%

BORROWINGS - Fair Value of Debt

BORROWINGS - Fair Value of Debt (Details) $ in Thousands	Sep. 30, 2024 USD ($) $ / shares	Dec. 31, 2023 USD ($) $ / shares
Debt Instrument [Line Items]
Borrowings	$ 662,486	$ 641,794
2029 8.625% Notes | Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 75,300	$ 0
2029 8.625% Notes | Medium-term Notes | Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) | $ / shares	25.10	0
2029 8.50% Notes | Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 72,163	$ 0
2029 8.50% Notes | Medium-term Notes | Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) | $ / shares	25.10	0
2028 Notes | Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 40,544	$ 40,070
2028 Notes | Medium-term Notes | Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) | $ / shares	25.34	25.04
2026 Notes | Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 113,206	$ 109,250
2026 Notes | Medium-term Notes | Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) | $ / shares	24.61	23.75
2024 Notes | Medium-term Notes
Debt Instrument [Line Items]
Borrowings	$ 0	$ 38,235
2024 Notes | Medium-term Notes | Measurement Input, Share Price
Debt Instrument [Line Items]
Closing price (in dollars per share) | $ / shares	0	24.99

BORROWINGS - Interest Expense (

BORROWINGS - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Medium-term Notes
Debt Instrument [Line Items]
Interest expense	$ 12,976	$ 13,447	$ 38,923	$ 38,933

DERIVATIVE INSTRUMENTS - Deriva

DERIVATIVE INSTRUMENTS - Derivatives Outstanding (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Liability	$ 68	$ 630
Foreign Exchange Future
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional		(27,869)
Asset	0	0
Liability	$ 68	$ 630
Remaining Maturity	3 months	3 months
Foreign Exchange Future | Short
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional	$ (60,038)

DERIVATIVE INSTRUMENTS - Gains

DERIVATIVE INSTRUMENTS - Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Appreciation/(Depreciation)			$ 562	$ 54
Foreign Exchange Future
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized Appreciation/(Depreciation)	$ 356	$ (441)	562	54
Realized Gain/(Loss)	$ (2,015)	$ 1,158	$ (1,527)	$ 843

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Obligations and Commitments Under Operating Lease and Employment Agreements (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Operating Leases
2024	$ 527
2025	2,147
2026	2,028
2027	478
2028	0
Thereafter	0
Total	5,180
Employment Agreement
2024	866
2025	902
2026	0
2027	0
2028	0
Thereafter	0
Total	1,768
Total
2024	1,393
2025	3,049
2026	2,028
2027	478
2028	0
Thereafter	0
Total	$ 6,948

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Narrative (Details)	Sep. 30, 2024 USD ($)
Commitments to Extend Credit
Other Commitments [Line Items]
Commitment	$ 102,500,000
SBA investment
Other Commitments [Line Items]
Commitment	17,500,000
504 Loan
Other Commitments [Line Items]
Commitment	73,400,000
ALP Loans
Other Commitments [Line Items]
Commitment	0
C&I
Other Commitments [Line Items]
Commitment	$ 11,600,000

SHAREHOLDERS' EQUITY - Narrativ

SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		9 Months Ended
	Feb. 03, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Nov. 17, 2023
Subsidiary, Sale of Stock [Line Items]
Preferred stock, par value (in dollars per share)		$ 0.02		$ 0.02
Issuance of common stock, net of offering costs		$ 13,818	$ 20,000
Warrants issued (in shares)	47,540
Price of warrant (in dollars per share)	$ 21.03468
Series A Convertible Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Issuance of stock (in shares)	20,000
Preferred stock, par value (in dollars per share)	$ 0.02
Issuance of common stock, net of offering costs	$ 20,000
Issuance price (in dollars per share)	$ 1,000
Convertible shares (in shares)	47.54053782
2023 ATM Equity Distribution
Subsidiary, Sale of Stock [Line Items]
Common stock authorized for sale (in shares)					3,000,000

SHAREHOLDERS' EQUITY - ATM Equi

SHAREHOLDERS' EQUITY - ATM Equity Distribution (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Subsidiary, Sale of Stock [Line Items]
Stock-based compensation expense	$ 918	$ 592	$ 2,261	$ 2,015
2023 ATM Equity Distribution
Subsidiary, Sale of Stock [Line Items]
Shares sold (in shares)			1,100		0
Net weighted average price per share	$ 12.56		$ 12.56		$ 0
Net proceeds			$ 13,818		$ 0
Stock-based compensation expense			$ 282		$ 0

SHAREHOLDERS' EQUITY - Dividend

SHAREHOLDERS' EQUITY - Dividends Declared and Distributed (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands							3 Months Ended
	Oct. 21, 2024	Jul. 19, 2024	Apr. 15, 2024	Oct. 20, 2023	Jul. 21, 2023	Apr. 14, 2023	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Subsidiary, Sale of Stock [Line Items]
Amount Per Share							$ 0.19	$ 0.19	$ 0.19	$ 0.18	$ 0.18	$ 0.18
Cash Distribution							$ 4,837	$ 4,827	$ 4,617	$ 4,293	$ 4,293	$ 4,291
DRIP Shares Issued, Shares		0	0	6	4	6
DRIP Shares Issued, Value		$ 0	$ 0	$ 71	$ 73	$ 72				$ 71
Subsequent Event
Subsidiary, Sale of Stock [Line Items]
DRIP Shares Issued, Shares	0
DRIP Shares Issued, Value	$ 0
Series A Convertible Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Amount Per Share							$ 20	$ 20	$ 20	$ 20	$ 20	$ 12.44
Cash Distribution							$ 400	$ 400	$ 400	$ 400	$ 400	$ 249
Unvested Restricted Stock
Subsidiary, Sale of Stock [Line Items]
DRIP Shares Issued, Shares		5	6	5	3	5
DRIP Shares Issued, Value		$ 78	$ 71	$ 63	$ 60	$ 60
Unvested Restricted Stock | Subsequent Event
Subsidiary, Sale of Stock [Line Items]
DRIP Shares Issued, Shares	8
DRIP Shares Issued, Value	$ 114

EARNINGS PER SHARE - Schedule o

EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Basic earnings per share:
Net income available to common shareholders	$ 11,534	$ 10,519	$ 31,329	$ 35,431
Weighted-average basic shares outstanding (in shares)	25,425	24,277	24,773	24,255
Basic earnings per share (in dollars per share)	$ 0.45	$ 0.43	$ 1.26	$ 1.46
Diluted earnings per share:
Net income available to common shareholders	$ 11,534	$ 10,519	$ 31,329	$ 35,431
Add: Preferred dividends on dilutive Series A convertible preferred stock	400	0		0
Net income, for diluted earnings per share	$ 11,934	$ 10,519	$ 31,329	$ 35,431
Weighted-average basic shares outstanding (in shares)	25,425	24,277	24,773	24,255
Add effect of dilutive restricted stock awards	213	136	151	81
Add effect of dilutive Series A convertible preferred stock	951	0	0	0
Total weighted-average diluted shares outstanding (in shares)	26,589	24,413	24,924	24,336
Diluted earnings per share (in dollars per share)	$ 0.45	$ 0.43	$ 1.26	$ 1.46
Anti-dilutive warrants, restricted stock awards, and Series A convertible preferred stock (in shares)	$ 48	$ 1,009	$ 998	$ 1,166

Benefit Plans - Restricted Stoc

Benefit Plans - Restricted Stock Activity (Details) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
2015 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted (in shares)	0
Restricted Stock | 2023 and 2015 Stock Incentive Plan | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period	1 year
Restricted Stock | 2023 and 2015 Stock Incentive Plan | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period	3 years
Restricted Stock | 2015 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized (in shares)	1,500,000
Net restricted stock (granted)/forfeited (in shares)	0	28,000	(251,000)	(215,000)	(223,000)
Shares available for issuance (in shares)	(661,000)
Restricted Stock | 2023 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized (in shares)	3,000,000
Net restricted stock (granted)/forfeited (in shares)	(213,000)	(82,000)	0	0	0
Shares available for issuance (in shares)	(295,000)
Vesting period	1 year

BENEFIT PLANS - Shares Outstand

BENEFIT PLANS - Shares Outstanding (Details) - $ / shares shares in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding (shares)	487	345
Weighted average grant date fair value (in dollars per share)	$ 15.90	$ 19.18
Unvested Restricted Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Outstanding (shares)	46	44

BENEFIT PLANS - Unrecognized Co

BENEFIT PLANS - Unrecognized Compensation (Details) - Restricted Stock - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation expense	$ 4,280	$ 3,610
Remaining weighed-average period	1 year 4 months 24 days	1 year 8 months 12 days

BENEFIT PLANS - Narrative (Deta

BENEFIT PLANS - Narrative (Details) - Employee Stock Purchase Plan $ in Thousands, shares in Millions	Jun. 14, 2023 USD ($) shares
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares authorized (in shares) | shares	0.2
Percentage of eligible compensation to withhold	15%
Fair market value of shares to be purchased | $	$ 25
Percentage of fair market value of common stock	85%

BENEFIT PLANS - ESPP Informatio

BENEFIT PLANS - ESPP Information (Details) - Employee Stock Purchase Plan - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	2 Months Ended	5 Months Ended	6 Months Ended	9 Months Ended
	Dec. 15, 2023	Mar. 15, 2024	Sep. 15, 2024	Sep. 30, 2024
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares purchased (in shares)	4	5	10	10
Weighted average share price (in dollars per share)	$ 13.05	$ 9.83	$ 10.21
Total purchased, net of discount	$ 51	$ 51	$ 101

BENEFIT PLANS - ESPP Activity (

BENEFIT PLANS - ESPP Activity (Details) - Employee Stock Purchase Plan - shares shares in Thousands	2 Months Ended	5 Months Ended	6 Months Ended	9 Months Ended
	Dec. 15, 2023	Mar. 15, 2024	Sep. 15, 2024	Sep. 30, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Available for Future Issuance [Roll Forward]
Available for future purchases, January 1, 2024				196
Shares purchased (in shares)	(4)	(5)	(10)	(10)
Available for future purchases, September 30, 2024				186

BENEFIT PLANS - Compensation Ex

BENEFIT PLANS - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Stock-based compensation expense	$ 918	$ 592	$ 2,261	$ 2,015
Employee Stock Purchase Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Stock-based compensation expense	5	0	17	0
Restricted Stock
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Stock-based compensation expense	$ 913	$ 592	$ 2,244	$ 2,015

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2022
Investments, Owned, Federal Income Tax Note [Line Items]
Effective tax rate	27.62%
Net operating losses		$ 35.4
Tax Years 2029 through 2037
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating losses		4.6
Indefinite Carryforward
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating losses		30.8
Tax Year 2023
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating losses		23.8
Future Taxable Periods
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating losses		$ 11.6

SEGMENTS (Details)

SEGMENTS (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) segment	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			4
Interest income	$ 31,271	$ 26,736	$ 87,691	$ 68,004
Interest expense	20,290	18,659	58,678	49,671
Net interest income	10,981	8,077	29,013	18,333
Provision for credit losses	6,928	3,446	16,742	7,339
Net interest income after provision for credit losses	4,053	4,631	12,271	10,994
Noninterest income	51,851	41,026	153,238	127,665
Noninterest expense	38,847	31,320	120,570	108,120
Net income before taxes	17,057	14,337	44,939	30,539
Income tax expense (benefit)	5,123	3,418	12,410	(5,941)
Net income	11,934	10,919	32,529	36,480
Assets	1,674,170	1,393,495	1,674,170	1,393,495	$ 1,429,513
Operating Segments | Banking
Segment Reporting Information [Line Items]
Interest income	18,820	10,513	48,884	22,364
Interest expense	7,603	5,371	20,635	11,265
Net interest income	11,217	5,142	28,249	11,099
Provision for credit losses	6,928	3,446	16,742	7,339
Net interest income after provision for credit losses	4,289	1,696	11,507	3,760
Noninterest income	35,423	26,360	100,326	58,887
Noninterest expense	20,467	14,789	61,358	42,858
Net income before taxes	19,245	13,267	50,475	19,789
Income tax expense (benefit)	5,760	4,462	15,136	6,725
Net income	13,485	8,805	35,339	13,064
Assets	935,357	603,766	935,357	603,766
Operating Segments | Technology
Segment Reporting Information [Line Items]
Interest income	2	0	3	0
Interest expense	0	0	0	246
Net interest income	2	0	3	(246)
Provision for credit losses	0	0	0	0
Net interest income after provision for credit losses	2	0	3	(246)
Noninterest income	5,494	7,283	19,701	23,683
Noninterest expense	5,395	6,517	19,755	21,551
Net income before taxes	101	766	(51)	1,886
Income tax expense (benefit)	0	0	0	87
Net income	101	766	(51)	1,799
Assets	21,919	30,211	21,919	30,211
Operating Segments | NSBF
Segment Reporting Information [Line Items]
Interest income	8,871	12,868	28,894	38,841
Interest expense	5,079	6,930	16,733	20,223
Net interest income	3,792	5,938	12,161	18,618
Provision for credit losses	0	0	0	0
Net interest income after provision for credit losses	3,792	5,938	12,161	18,618
Noninterest income	(8,845)	188	(15,475)	26,500
Noninterest expense	5,738	4,698	14,647	23,514
Net income before taxes	(10,791)	1,428	(17,961)	21,604
Income tax expense (benefit)	0	5	0	44
Net income	(10,791)	1,423	(17,961)	21,560
Assets	535,935	659,822	535,935	659,822
Operating Segments | Payments
Segment Reporting Information [Line Items]
Interest income	612	482	1,776	1,627
Interest expense	730	925	2,289	2,735
Net interest income	(118)	(443)	(513)	(1,108)
Provision for credit losses	0	0	0	0
Net interest income after provision for credit losses	(118)	(443)	(513)	(1,108)
Noninterest income	12,719	12,173	39,090	34,982
Noninterest expense	7,296	7,755	24,404	23,975
Net income before taxes	5,305	3,975	14,173	9,899
Income tax expense (benefit)	0	0	0	447
Net income	5,305	3,975	14,173	9,452
Assets	62,710	50,994	62,710	50,994
Corporate and Other
Segment Reporting Information [Line Items]
Interest income	4,122	3,848	11,628	8,673
Interest expense	8,034	6,408	22,515	18,703
Net interest income	(3,912)	(2,560)	(10,887)	(10,030)
Provision for credit losses	0	0	0	0
Net interest income after provision for credit losses	(3,912)	(2,560)	(10,887)	(10,030)
Noninterest income	36,536	41,283	76,646	75,863
Noninterest expense	9,814	6,420	28,290	22,673
Net income before taxes	22,810	32,303	37,469	43,160
Income tax expense (benefit)	(637)	(1,049)	(2,726)	(13,244)
Net income	23,447	33,352	40,195	56,404
Assets	988,402	697,408	988,402	697,408
Eliminations
Segment Reporting Information [Line Items]
Interest income	(1,156)	(975)	(3,494)	(3,501)
Interest expense	(1,156)	(975)	(3,494)	(3,501)
Net interest income	0	0	0	0
Provision for credit losses	0	0	0	0
Net interest income after provision for credit losses	0	0	0	0
Noninterest income	(29,476)	(46,261)	(67,050)	(92,250)
Noninterest expense	(9,863)	(8,859)	(27,884)	(26,451)
Net income before taxes	(19,613)	(37,402)	(39,166)	(65,799)
Income tax expense (benefit)	0	0	0	0
Net income	(19,613)	(37,402)	(39,166)	(65,799)
Assets	$ (870,153)	$ (648,706)	$ (870,153)	$ (648,706)

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands			9 Months Ended
	Oct. 30, 2024	Oct. 23, 2024	Sep. 30, 2024	Sep. 30, 2023	Nov. 01, 2024	Dec. 31, 2023
Subsequent Event [Line Items]
Aggregate principal amount			$ 655,834			$ 644,122
Proceeds from sale of loans held for sale			598,186	$ 533,117
2025 5.00% Notes | Medium-term Notes
Subsequent Event [Line Items]
Aggregate principal amount			29,825			$ 29,563
2018 and 2019 Notes | Medium-term Notes
Subsequent Event [Line Items]
Aggregate principal amount			$ 25,400
Subsequent Event
Subsequent Event [Line Items]
Shares available for repurchase (in shares)					1,000,000
Subsequent Event | 504 Loan
Subsequent Event [Line Items]
Proceeds from sale of loans held for sale	$ 12,500
Subsequent Event | 2018 and 2019 Notes | Medium-term Notes
Subsequent Event [Line Items]
Repayment out of interest bearing deposits in banks		$ 18,300
Repayment out of restricted cash		$ 6,900