v3.26.1
LOANS (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Investment holdings, schedule of 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 following table shows the Company’s loan portfolio by collateral type for loans HFI, at fair value:
Loans HFI, at Fair Value
June 30, 2026December 31, 2025
CostFair ValueCostFair Value
CRE$276,121 $281,084 $131,015 $138,110 
Residential Real Estate160,024 159,011 52,229 50,539 
Machinery and Equipment100,537 96,223 46,552 43,266 
Accounts Receivable and Inventory95,716 88,249 43,944 38,670 
Unsecured75,966 76,064 4,295 4,259 
Other22,457 20,937 8,619 6,354 
Total$730,821 $721,568 $286,654 $281,198 
Schedule of loans and leases The following table shows the Company’s loan portfolio by loan type for loans HFI, at amortized cost:
Loans HFI, at Amortized Cost
June 30, 2026December 31, 2025
SBA$689,897 $539,746 
CRE337,327 274,194 
C&I109,786 80,380 
Total Loans1,137,010 894,320 
Deferred fees and costs, net2,527 2,369 
Loans held for investment, at amortized cost, net of deferred fees and costs$1,139,537 $896,689 
The following tables summarize the aging of accrual and non-accrual loans HFI, at fair value by class:
As of June 30, 2026
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Accounted for Under the FV Option
30-59 Days
60-89 Days
90+ Days
SBA, at fair value$9,992 $19,962 $5,920 $99,671 $135,545 $576,079 $711,624 
C&I LA, at fair value— — — 9,944 9,944 — 9,944 
Total, at fair value$9,992 $19,962 $5,920 $109,615 $145,489 $576,079 $721,568 
As of December 31, 2025
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Accounted for Under the FV Option
30-59 Days
60-89 Days
90+ Days
SBA, at fair value$10,843 $5,903 $2,732 $72,543 $92,021 $189,177 $281,198 
The following tables summarize the aging of accrual and non-accrual loans HFI, at amortized cost by class:
As of June 30, 2026
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Carried at Amortized Cost
30-59 Days
60-89 Days
90+ Days
At amortized cost
SBA
$27,151 $25,351 $3,284 $132,870 $188,656 $501,241 $689,897 
CRE732 — 440 2,729 3,901 333,426 337,327 
C&I1,102 591 — 1,405 3,098 106,688 109,786 
Total, at amortized cost
$28,985 $25,942 $3,724 $137,004 $195,655 $941,355 $1,137,010 
Deferred fees and costs2,527 
Total, at amortized cost net of deferred fees and costs$1,139,537 
Allowance for credit losses(52,715)
Total, at amortized cost, net
$1,086,822 
As of December 31, 2025
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Carried at Amortized Cost
30-59 Days
60-89 Days
90+ Days
At amortized cost
SBA$9,740 $5,628 $— $74,008 $89,376 $450,370 $539,746 
CRE— — — 2,976 2,976 271,218 274,194 
C&I5,089 98 — 1,830 7,017 73,363 80,380 
Total, at amortized cost$14,829 $5,726 $— $78,814 $99,369 $794,951 $894,320 
Deferred fees and costs2,369 
Total, at amortized cost net of deferred fees and costs$896,689 
Allowance for credit losses(45,226)
Total, at amortized cost, net$851,463 
Credit quality indicators
The following tables present asset quality indicators by portfolio class and origination year at June 30, 2026 and December 31, 2025:
June 30, 2026Term Loans HFI by Origination Year
20262025202420232022PriorTotal
SBA, at fair value
Risk Grades 1-4$325,312 $93,805 $6,273 $12,682 $58,465 $83,148 $579,685 
Risk Grades 5-6447 6,329 10,447 12,918 44,122 56,964 131,227 
Risk Grade 7— — — 110 26 180 316 
Risk Grade 8— — — — 126 270 396 
Total$325,759 $100,134 $16,720 $25,710 $102,739 $140,562 $711,624 
C&I LA, at fair value
Risk Grades 5-6$— $— $— $— $— $9,944 $9,944 
Total$— $— $— $— $— $9,944 $9,944 
SBA, at amortized cost, net of deferred fees and costs
Risk Grades 1-4$105,913 $169,178 $130,757 $59,732 $— $— $465,580 
Risk Grades 5-6278 21,931 84,644 60,055 — — 166,908 
Risk Grade 7— 9,189 21,556 10,233 — — 40,978 
Risk Grade 8— 2,179 5,373 8,879 — — 16,431 
Total$106,191 $202,477 $242,330 $138,899 $— $— $689,897 
CRE, at amortized cost, net of deferred fees and costs
Risk Grades 1-4$82,073 $93,206 $44,348 $24,483 $30,171 $48,810 $323,091 
Risk Grades 5-6— 8,788 849 — 1,725 2,874 14,236 
Total$82,073 $101,994 $45,197 $24,483 $31,896 $51,684 $337,327 
C&I, at amortized cost, net of deferred fees and costs
Risk Grades 1-4$37,772 $51,989 $10,141 $2,884 $— $— $102,786 
Risk Grades 5-6— 1,052 5,853 29 — — 6,934 
Risk Grade 7— — 66 — — — 66 
Total$37,772 $53,041 $16,060 $2,913 $— $— $109,786 
Total$551,795 $457,646 $320,307 $192,005 $134,635 $202,190 $1,858,578 
December 31, 2025Term Loans HFI by Origination Year
20252024202320222021PriorTotal
SBA, at fair value
Risk Grades 1-4$— $— $17,823 $78,437 $27,409 $82,954 $206,623 
Risk Grades 5-6— — 3,861 19,677 7,498 43,431 74,467 
Risk Grade 7— — 33 50 — — 83 
Risk Grade 8— — — 25 — — 25 
Total$— $— $21,717 $98,189 $34,907 $126,385 $281,198 
SBA, at amortized cost, net of deferred fees and costs
Risk Grades 1-4$189,147 $168,558 $74,500 $— $— $— $432,205 
Risk Grades 5-63,454 39,769 35,032 — — — 78,255 
Risk Grade 7332 11,069 10,205 — — — 21,606 
Risk Grade 846 2,371 5,263 — — — 7,680 
Total$192,979 $221,767 $125,000 $— $— $— $539,746 
CRE, at amortized cost, net of deferred fees and costs
Risk Grades 1-4$100,724 $52,167 $25,429 $30,508 $15,753 $42,090 $266,671 
Risk Grades 5-61,800 885 — 1,742 — 3,096 7,523 
Total$102,524 $53,052 $25,429 $32,250 $15,753 $45,186 $274,194 
C&I, at amortized cost, net of deferred fees and costs
Risk Grades 1-4$58,284 $12,367 $3,315 $— $— $— $73,966 
Risk Grades 5-6711 5,383 36 — — — 6,130 
Risk Grade 7— 284 — — — — 284 
Total$58,995 $18,034 $3,351 $— $— $— $80,380 
Total$354,498 $292,853 $175,497 $130,439 $50,660 $171,571 $1,175,518 
Allowance for credit losses
The following table details activity in the ACL for the three months ended June 30, 2026 and 2025:

June 30, 2026June 30, 2025
CREC&ISBATotal
CRE
C&I
SBATotal
Beginning balance$2,180 $3,172 $41,369 $46,721 $1,837 $609 $36,203 $38,649 
Charge offs(81)(296)(5,642)(6,019)— (267)(4,815)(5,082)
Recoveries— 1 199 200 — — 13 13 
Provision for credit losses1
536 403 10,874 11,813 208 1,198 7,639 9,045 
Total
$2,635 $3,280 $46,800 $52,715 $2,045 $1,540 $39,040 $42,625 
1    Excludes $0.3 million and $72 thousand of Provision for credit losses relating to unfunded commitments for the three months ended June 30, 2026 and 2025, respectively, 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 six months ended June 30, 2026 and 2025:

June 30, 2026June 30, 2025
CRE
C&I
SBA
Total
CRE
C&I
SBA
Total
Beginning balance$1,873 $3,282 $40,071 $45,226 $1,430 $315 $28,488 $30,233 
Charge offs(211)(880)(13,436)(14,527)— (267)(9,946)(10,213)
Recoveries— 488 385 873 — — 17 17 
Provision for credit losses1
973 390 19,780 21,143 615 1,492 20,481 22,588 
Ending balance$2,635 $3,280 $46,800 $52,715 $2,045 $1,540 $39,040 $42,625 
1     Excludes $579 thousand and $34 thousand of Provision for credit losses relating to unfunded commitments for the six months ended June 30, 2026 and June 30, 2025, respectively, which is recorded within Accounts payable, accrued expenses and other liabilities in accordance with ASC 326.
The unpaid contractual principal balance and recorded investment for the loans individually assessed is shown in the table below by type:

June 30, 2026December 31, 2025
Real Estate CollateralNon-Real Estate CollateralTotal
ACL
Real Estate Collateral
Non-Real Estate Collateral
Total
ACL
SBA$80,409 $52,461 $132,870 $15,644 $44,066 $29,942 $74,008 $12,311 
CRE16,118 — 16,118 300 18,487 — 18,487 — 
C&I1,182 223 1,405 201 419 1,408 1,827 1,328 
Total$97,709 $52,684 $150,393 $16,145 $62,972 $31,350 $94,322 $13,639 
Past due loans
The amortized cost basis of loans on nonaccrual status and the associated ACL are as follows:

June 30, 2026December 31, 2025
Nonaccrual without AllowanceNonaccrual with AllowanceACL
Nonaccrual without Allowance
Nonaccrual with AllowanceACL
SBA$64,087 $68,783 $15,644 $34,058 $39,950 $12,311 
CRE1,880 849 300 2,979 — — 
C&I644 761 201 419 1,408 1,328 
Total
$66,611 $70,393 $16,145 $37,456 $41,358 $13,639 
The following tables summarize the aging of accrual and non-accrual loans HFS, at fair value by class:
As of June 30, 2026
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Accounted for Under the FV Option
30-59 Days
60-89 Days
90+ Days1
SBA, at fair value$— $1,120 $— $20,470 $21,590 $247,861 $269,451 
C&I LA, at fair value1
— — — — — 220,627 220,627 
ALP, at fair value8,896 — — — 8,896 1,809 10,705 
Total$8,896 $1,120 $— $20,470 $30,486 $470,297 $500,783 
1    C&I LA loans originated by Newtek Bank, which began during the first quarter of 2026.

As of December 31, 2025
Past Due and Accruing
Non- accrual
Total Past Due and Non-accrual
CurrentTotal Accounted for Under the FV Option
30-59 Days
60-89 Days
90+ Days
SBA, at fair value$21,441 $5,018 $8,713 $12,580 $47,752 $508,937 $556,689 
ALP, at fair value9,049 — — 11,634 20,683 394,465 415,148 
Total$30,490 $5,018 $8,713 $24,214 $68,435 $903,402 $971,837 
The following tables summarize the aging of accrual and non-accrual loans HFS, at LCM by class:
As of June 30, 2026
Past Due and AccruingNon- accrualTotal Past Due and Non-accrualCurrentTotal Carried at Amortized Cost
30-59 Days60-89 Days90+ Days
SBA$— $— $— $2,413 2,413 $18,060 $20,473 
As of December 31, 2025
Past Due and AccruingNon- accrualTotal Past Due and Non-accrualCurrentTotal Carried at Amortized Cost
30-59 Days60-89 Days90+ Days
SBA$— $— $— $2,435 $2,435 $24,097 $26,532 
Modified financing receivable The following table summarizes the amortized cost basis of loans that were modified:
Three Months Ended June 30, 2026
Other-Than-Insignificant Payment Delay Term ExtensionCombination - Other-Than-Insignificant Payment Delay and Term Extensionof Total Class of Financing Receivable
SBA$426 $— $1,814 0.3 %
CRE— — — — 
C&I— — — — 
Total$426 $— $1,814 0.2 %

As of June 30, 2026, the amortized cost basis of modified loans was $2.2 million.
During the three months ended June 30, 2025, the Company executed 1 loan modification involving borrowers experiencing financial difficulty. The following table summarizes the amortized cost basis of loans that were modified:

Three Months Ended June 30, 2025
Other-Than-Insignificant Payment DelayTerm ExtensionCombination - Other-Than-Insignificant Payment Delay and Principal Forgivenessof Total Class of Financing Receivable
SBA$248 $— $— — %
CRE— — — — 
C&I— — — — 
Total$248 $— $— — %

As of June 30, 2025, the amortized cost basis of modified loans was $248 thousand.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three months ended June 30, 2026 and 2025:


During the six months ended June 30, 2026, the Company executed 11 loan modification involving borrowers experiencing financial difficulty. The following table summarizes the amortized cost basis of loans that were modified:

Six Months Ended June 30, 2026
Other-Than-Insignificant Payment DelayTerm ExtensionCombination - Other-Than-Insignificant Payment Delay and Term Extensionof Total Class of Financing Receivable
SBA$426 $— $1,814 0.3 %
CRE— — — — 
C&I— — — — 
Total$426 $— $1,814 0.2 %

As of June 30, 2026, the amortized cost basis of modified loans was $2.2 million.

During the six months ended June 30, 2025, the Company executed 1 loan modification involving borrowers experiencing financial difficulty. The following table summarizes the amortized cost basis of loans that were modified:

Six Months Ended June 30, 2025
Other-Than-Insignificant Payment DelayTerm ExtensionCombination - Other-Than-Insignificant Payment Delay and Principal Forgivenessof Total Class of Financing Receivable
SBA$248 $— $— — %
CRE— — — — 
C&I— — — — 
Total$248 $— $— — %

As of June 30, 2025, the amortized cost basis of modified loans was $248 thousand.
Held for sale
June 30, 2026December 31, 2025
SBA 504 First Lien$239,449 $201,013 
SBA 504 Second Lien30,002 31,207 
SBA 7(a)1
— 324,469 
C&I LA2
220,627 — 
ALP
10,705 415,148 
Loans held for sale, at fair value$500,783 $971,837 
1    As a result of an agreement with the SBA with respect to Newtek Bank’s participation in the SBA Secondary Market, $442.6 million of loans held for sale, at fair value, as of June 30, 2026, were reclassified to loans held for investment, at fair value.
2    C&I LA loans originated by Newtek Bank, which began during the first quarter of 2026.
Loans held for sale, at LCM
June 30, 2026December 31, 2025
SBA 504 First Lien$15,837 $19,075 
SBA 504 Second Lien4,636 7,457 
Loans held for sale, at LCM
$20,473 $26,532