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INVESTMENTS
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS
NOTE 4—INVESTMENTS:

Investments consisted of the following at:
June 30, 2026December 31, 2025
CostFair ValueCostFair Value
Residuals in securitizations, at fair value (NOTE 3)$79,657 $204,001 $32,481 $76,701 
Joint ventures and other investments36,294 43,766 36,692 47,719 
Debt securities available-for-sale, at fair value15,147 15,139 16,836 16,829 
Federal Home Loan Bank and Federal Reserve Bank stock4,548 4,548 4,234 4,234 
Total investments$135,646 $267,454 $90,243 $145,483 
The Company’s Investments in Joint Ventures (JV) and Other Investments

On May 20, 2019, the Company and its joint venture partner launched NCL JV to provide ALP loans to U.S. middle-market companies and small businesses. NCL JV was a 50/50 joint venture between NCL, a wholly-owned subsidiary of the Company, and Conventional Lending TCP Holding, LLC (“TCP”), a wholly-owned, indirect subsidiary of BlackRock TCP Capital Corp. (Nasdaq: TCPC). 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%. On August 25, 2025, the Class A Noteholders were re-paid in full, the assets owned by the NCL Business Loan Trust 2022-1 were distributed to NCL JV and the NCL Business Loan Trust 2022-1 was subsequently terminated. On August 27, 2025, NALH entered into an interest purchase agreement with TCP to acquire TCP’s 50% ownership interest in NCL JV for $15.75 million, resulting in NALH owning 100% of NCL JV. Since the assets acquired did not meet the definition of a business under ASC 805-10-55, the transaction was accounted for as an asset acquisition under ASC 805-50. On September 30, 2025, NALH dissolved NCL JV.
TSO JV: On August 5, 2022, NCL and TSO II Booster Aggregator, L.P. (“TSO II”) entered into a joint venture, TSO JV, and 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.
Intelligent Protection Management Corp.

On January 2, 2025, the Company completed the sale of its wholly owned subsidiary Newtek Technology Solutions, Inc. (“NTS”) to Paltalk, Inc. (subsequently renamed Intelligent Protection Management Corp. (“IPM”)) (Nasdaq: IPM) (the “NTS Sale”). In connection with the NTS Sale, the Company received the Closing Consideration consisting of $4.0 million Cash Consideration and 4.0 million shares of IPM Preferred Stock. Upon the occurrence of certain specified transfers of the IPM Preferred Stock, each share of IPM Preferred Stock will automatically convert into one share of common stock of IPM, subject to certain anti-dilution adjustments. In addition to the Closing Consideration, the Company may be entitled to receive an earn-out in an amount of up to $5.0 million, payable in cash, IPM Preferred Stock, or a combination thereof (as determined in IPM’s discretion), based on IPM’s achievement of certain cumulative average Adjusted EBITDA thresholds for the 2025 and 2026 fiscal years. The Company assesses the likelihood of the earn-out being achieved on a quarterly basis and records the resulting fair value, as disclosed in the table below. As of June 30, 2026, the fair value of the earn-out was zero. The Company is entitled to appoint one representative to the IPM board of directors and Barry Sloane, the Company’s Chief Executive Officer, serves on the IPM board of directors as the Company’s representative. The Company has accounted for its investment in IPM under ASC 321 beginning in the first quarter of 2025 and as such management measured the equity investment at fair value and the carrying amount will be remeasured at each reporting period with changes in fair value recorded in earnings.
Investments related to our joint ventures and other investments as of June 30, 2026 and December 31, 2025 were as follows:
June 30, 2026December 31, 2025
CompanyCostFair ValueCostFair Value
Joint Ventures
TSO JV
25,520 36,500 25,520 37,250 
Other Investments
EMCAP Loan Holdings, LLC$306 $306 $306 $306 
Biller Genie Software, LLC— — 398 1,983 
Intelligent Protection Management Corp.
IPM Earnout— — — 1,300 
IPM Stock1
10,468 6,960 10,468 6,880 
Total Other Investments$10,774 $7,266 $11,172 $10,469 
Total
$36,294 $43,766 $36,692 $47,719 
1    Four million shares of IPM Preferred Stock with net gains/(losses) calculated based on a closing price of $1.74 and $1.72 on June 30, 2026 and December 31, 2025, respectively.
Debt Securities Available-for-Sale

The following tables summarize the amortized cost and fair value of debt securities available-for-sale by major type as of June 30, 2026 and December 31, 2025:

June 30, 2026December 31, 2025
AmortizedUnrealizedUnrealizedFairAmortizedUnrealizedUnrealizedFair
Cost GainsLossesValueCostGainsLossesValue
U.S. Treasury notes$15,147 $— $8 $15,139 $16,836 $— $7 $16,829 

As of June 30, 2026 and December 31, 2025, there was no accrued interest receivable on available-for-sale securities included in Other assets in the accompanying Consolidated Statements of Financial Condition.
There were no proceeds from sales of AFS securities for the three and six months ended June 30, 2026 and 2025.
Unrealized Losses

The following tables summarize the gross unrealized losses and fair value of debt securities available-for-sale by length of time each major security type has been in a continuous unrealized loss position:

June 30, 2026
Less Than 12 Months12 Months or MoreTotal
Fair ValueUnrealized LossesFair ValueUnrealized Losses Fair ValueUnrealized Losses
U.S. Treasury notes$15,139 $8 $— $— $15,139 $8 

December 31, 2025
Less Than 12 Months12 Months or MoreTotal
Fair ValueUnrealized LossesFair ValueUnrealized LossesNumber of HoldingsFair ValueUnrealized Losses
U.S. Treasury notes$16,829 $7 $— $— 3 $16,829 $7 

Management evaluates debt securities available-for-sale debt 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 debt securities available-for-sale by contractual maturity:

June 30, 2026At December 31, 2025
Amortized CostFair ValueAmortized CostFair Value
Maturing within 1 year$15,147 $15,139 $16,836 $16,829 
After 1 year through 5 years— — — — 
After 5 through 10 years— — — — 
After 10 years— — — — 
Total$15,147 $15,139 $16,836 $16,829 
Other information

The following table summarizes Newtek Bank’s debt securities available-for-sale pledged for deposits, borrowings, and other purposes:
June 30, 2026December 31, 2025
Pledged for deposits$— $— 
Pledged for borrowings and other:
FRB borrowings7,377 7,383 
FHLB borrowings7,762 9,446 
Total pledged$15,139 $16,829