FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2026

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 June 30, 2026 and December 31, 2025:


	Fair Value Measurements at June 30, 2026
	Total		Level 1			Level 2		Level 3
Assets:
Debt securities available-for-sale, at fair value
U.S. Treasury notes	$	15,139	$	15,139		$	—	$	—
Government agency debentures	—		—			—		—
Loans held for sale, at fair value1	500,783		—			—		500,783
Loans held for investment, at fair value1	721,568		—			—		721,568
Residuals in securitizations, at fair value1	204,001		—			—		204,001
Servicing assets, at fair value1	12,456		—			—		12,456

Joint ventures and other investments, at fair value1	43,766		6,960		2	—		36,806

Total assets measured at fair value	$	1,497,713	$	22,099		$	—	$	1,475,614
Liabilities:
Equity warrants1,3	$	168	$	—		$	—	$	168
Derivative instruments1,3	4		—			4		—
Total liabilities measured at fair value	$	172	$	—		$	4	$	168

1 Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.

2 Includes four million shares of IPM Preferred Stock valued at the closing price per share of IPM common stock of $1.74 on June 30, 2026.

3 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.


	Fair Value Measurements at December 31, 2025
	Total		Level 1			Level 2			Level 3
Assets:
Debt securities available-for-sale
U.S. Treasury notes	$	16,829	$	16,829		$	—		$	—
Government agency debentures	—		—			—			—
Loans held for sale, at fair value1	971,837		—			324,467			647,370
Loans held for investment, at fair value1	281,198		—			—			281,198
Residuals in securitizations, at fair value1	76,701								76,701
Servicing assets, at fair value1	15,358		—			—			15,358
Joint ventures and other investments1	47,719		6,880		3	1,983		4	38,856
Derivative instruments1,2	737		—			737			—
Total assets measured at fair value	$	1,410,379	$	23,709		$	327,187		$	1,059,483
Liabilities:
Equity warrants1,5	$	81	$	—		$	—		$	81

Total liabilities measured at fair value	$	81	$	—		$	—		$	81

1 Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings.

2 Included in Other assets on the Consolidated Statements of Financial Condition.

3 Includes four million shares of IPM Preferred Stock valued at the closing price per share of IPM common stock of $1.72 on December 31, 2025.

4 Includes the Biller Genie investment valued at the price that settled in January 2026.

5 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.

The following tables represents the changes in the assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the six months ended June 30, 2026 and 2025:


	Six Months Ended June 30, 2026
	Loans HFI, at FV		Loans HFS, at FV		Joint Ventures and Other Investments		Residuals in Securitizations, at FV		Servicing Assets, at FV		Equity Warrants1
Fair value, December 31, 2025	$	281,198	$	647,370	$	38,856	$	76,701	$	15,358	$	81

Reclasses between loans HFS and HFI	34,596		(34,596)		—		—		—		—
Sales	308		(366,387)		—		—		—		—
Principal payments received	(28,400)		(5,283)		—		—		—		—
Foreclosed real estate acquired	(2,725)		—		—		—		—		—
SBA loans, funded	—		83,666		—		—		—		—
C&I LA loans, funded2	—		189,800		—		—		—		—

Purchases and repurchases of loans	2,987		22,179		—		—		—		—
Residuals in securitizations, notional	—		—		—		47,176		—		—




Change in valuation due to:
Changes in valuation inputs or assumptions	1,834		(35,966)		(2,050)		80,124		—		87
Other factors	(10,843)		—		—		—		(2,902)		—

Transfers into Level 33	442,613		—		—		—		—		—
Fair value, June 30, 2026	$	721,568	$	500,783	$	36,806	$	204,001	$	12,456	$	168

1 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.

2 Newtek Bank began originating C&I LA loans, also known as ALP loans, during the first quarter of 2026.

3 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.


	Six Months Ended June 30, 2025
	Loans HFI, at FV		Loans HFS, at FV		Joint Ventures and Other Investments		Residuals in Securitizations, at FV		Servicing Assets, at FV		Equity Warrants1
Fair value, December 31, 2024	$	369,746	$	372,286	$	57,678	$	—	$	22,062	$	133
Reclass between loans at FV and LCM	—		7,133		—		—		—		—
Reclass between loans HFS and HFI	—		—		—		—		—		—
Sales	130		(251,089)		—		—		—		—
Principal payments received	(35,061)		(1,703)		—		—		—		—
Foreclosed real estate acquired	(2,425)		—		—		—		—		—
SBA loans, funded	—		47,411		—		—		—		—
ALP loans, funded	—		146,775		—		—		—		—

Purchases and repurchases of loans	1,071		—		—		—		—		—
Residuals in securitizations, notional	—		—		—		32,481		—		—
Additions2	—		—		2,908		—		—		—
Capital contributions/(distributions)	—		—		71		—		—		—
Change in valuation due to:
Changes in valuation inputs or assumptions	(22)		(4,934)		(96)		45,220		—		(69)
Other factors	(7,326)		—		—		—		(3,678)		—
Transfers out of Level 33	—		(4,856)		—		—		—		—
Fair Value, June 30, 2025	$	326,113	$	311,023	$	60,561	$	77,701	$	18,384	$	64

1 Included in Accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition.

2 Investment in IPM.

3 As of April 1, 2025, the Company is using broker quotes to calculate the fair value of its unguaranteed portions of its SBA 7(a) loans moving them from Level 3 to Level 2.

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:


	June 30, 2026
	Carrying Amount		Fair Value Amount by Level:						Total Fair Value
			Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	5,190	$	5,190	$	—	$	—	$	5,190
Restricted cash	22,744		22,744		—		—		22,744
Interest bearing deposits in banks	367,073		367,073		—		—		367,073
Loans HFS, at LCM	20,473		—		—		20,473		20,473
Loans HFI, at amortized cost, net of deferred fees and costs	1,139,537		—		—		1,158,268		1,158,268
OREO, at LCM	12,080		—		—		12,047		12,047
Servicing assets, at LCM	39,500		—		—		48,158		48,158
Federal Home Loan Bank and Federal Reserve Bank stock	4,548		—		4,548		—		4,548
Financial Liabilities:
Time deposits	636,376		—		635,793		—		635,793
Borrowings	554,192		—		198,110		364,623		562,733

	December 31, 2025
	Carrying Amount		Fair Value Amount by Level:						Total Fair Value
			Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	4,196	$	4,196	$	—	$	—	$	4,196
Restricted cash	26,477		26,477		—		—		26,477
Interest bearing deposits in banks	279,618		279,618		—		—		279,618
Loans HFS, at LCM	26,532		—		—		26,532		26,532
Loans HFI, at amortized cost, net of deferred fees and costs	896,689		—		—		1,012,200		1,012,200
OREO, at LCM	8,856		—		—		8,969		8,969
Servicing assets, at LCM	29,564		—		—		34,957		34,957
Federal Home Loan Bank and Federal Reserve Bank stock	4,234		—		4,234		—		4,234
Financial Liabilities:
Time deposits	439,805		—		440,688		—		440,688
Borrowings	819,888		—		283,999		543,999		827,998

Fair value and valuation assumption

The following table summarizes the fair value and valuation assumptions related to servicing assets at June 30, 2026 and December 31, 2025:


	June 30, 2026								December 31, 2025
			Weighted		Range						Weighted		Range
Unobservable Input	Amount		Average		Minimum		Maximum		Amount		Average		Minimum		Maximum
Servicing assets at FV:	$	12,456							$	15,358
Discount factor1			11.25	%	11.25	%	11.25	%			11.25	%	11.25	%	11.25	%
Cumulative prepayment rate			22.50	%	22.50	%	22.50	%			22.50	%	22.50	%	22.50	%
Average cumulative default rate			21.00	%	21.00	%	21.00	%			21.00	%	21.00	%	21.00	%
Servicing assets at LCM:	39,500								29,564
Discount factor1			10.67	%	10.25	%	11.25	%			11.27	%	10.75	%	12.00	%
Cumulative prepayment rate			32.90	%	22.50	%	50.00	%			33.72	%	22.50	%	50.00	%
Average cumulative default rate			17.31	%	5.00	%	21.00	%			16.95	%	5.00	%	21.00	%
Total	$	51,956							$	44,922

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 June 30, 2026 and December 31, 2025. 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 June 30, 2026 and December 31, 2025.


	Fair Value as of			Weighted		Range
	June 30, 2026		Unobservable Input	Average		Minimum		Maximum
Assets:
Loans HFI, at FV - accrual	$	611,953	Market yields	5.57	%	5.40	%	6.00	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	21.00	%	21.00	%	21.00	%
Loans HFI, at FV - non-accrual	$	109,615	Market yields	7.26	%	7.00	%	8.59	%

			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Loans HFS, at FV	$	500,783	Market yields	7.66	%	6.89	%	9.04	%
			Cumulative prepayment rate	54.82	%	50.00	%	60.00	%
			Average cumulative default rate	9.82	%	5.00	%	15.00	%
Joint ventures and other investments	$	36,806	Market yields	8.15	%	8.09	%	8.59	%
			Cost of equity	14.00	%	12.00	%	16.00	%
			Weighted average cost of capital	8.00	%	6.00	%	10.00	%
Residuals in securitizations, at FV	$	204,001	Market yields	8.11	%	8.09	%	8.59	%
			Cost of equity	14.00	%	12.00	%	16.00	%
			Weighted average cost of capital	8.00	%	6.00	%	10.00	%
Servicing assets, at FV	$	12,456	Market yields	11.25	%	11.25	%	11.25	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	21.00	%	21.00	%	21.00	%
Liabilities:
Equity warrants	$	168	Expected volatility	45.00	%	45.00	%	45.00	%
			Dividend yield	6.70	%	6.70	%	6.70	%
			Risk free rate	3.95	%	3.95	%	3.95	%


	Fair Value as of			Weighted		Range
	December 31, 2025		Unobservable Input	Average		Minimum		Maximum
Assets:
Loans HFI, at FV - accrual	$	208,655	Market yields	6.55	%	6.55	%	6.55	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	21.00	%	21.00	%	21.00	%
Loans HFI, at FV - non-accrual	$	72,543	Market yields	7.00	%	7.00	%	7.00	%

			Average cumulative default rate	30.00	%	30.00	%	30.00	%
Loans HFS, at FV	$	647,370	Market yields	7.19	%	6.43	%	8.13	%
			Cumulative prepayment rate	56.17	%	50.00	%	60.00	%
			Average cumulative default rate	11.17	%	5.00	%	15.00	%
Joint ventures and other investments	$	38,856	Market yields	7.40	%	6.71	%	12.49	%
			Cost of equity	14.00	%	12.00	%	16.00	%
			Weighted average cost of capital	9.00	%	7.00	%	11.00	%

Residuals in securitizations, at FV	$	76,701	Market yields	7.58	%	7.58	%	7.58	%
			Cost of equity	14.00	%	12.00	%	16.00	%
			Weighted average cost of capital	9.00	%	7.00	%	11.00	%
Servicing assets, at FV	$	15,358	Market yields	11.25	%	11.25	%	11.25	%
			Cumulative prepayment rate	22.50	%	22.50	%	22.50	%
			Average cumulative default rate	21.00	%	21.00	%	21.00	%



Liabilities:
Equity warrants	$	81	Expected volatility	45.00	%	45.00	%	45.00	%
			Dividend yield	6.70	%	6.70	%	6.70	%
			Risk free rate	3.95	%	3.95	%	3.95	%

Schedule of carrying values and estimated fair values of debt instruments

The fair values of the components of Borrowings are included in the chart below:


	June 30, 2026				December 31, 2025
	Closing Price		Fair Value		Closing Price		Fair Value
Public Parent Company Notes1:

2026 Notes (5.50%)2	$	—	$	—	$	25.19	$	95,722
2028 Notes (8.00%)	25.27		40,432		25.20		40,320
2029 Notes (8.50%)	25.55		73,387		25.16		72,267
2029 Notes (8.625%)	25.34		76,020		25.23		75,690
2031 Notes (8.50%)	26.25		8,271		—		—
Subtotal (Level 2)			$	198,110			$	283,999

Private Parent Company Notes3			$	117,555			$	102,758
Securitizations4			105,099				127,050
FHLB Borrowings4			6,310				7,349
Other Bank Borrowings4			135,659				306,842
Subtotal (Level 3)			$	364,623			$	543,999

Total Borrowings			$	562,733			$	827,998

1 Fair values are based on the closing public share price on the date of measurement.

2 On February 1, 2026, the 2026 Notes matured.

3 Not recorded at fair value on a recurring basis. The fixed rate private Notes are held at par as of June 30, 2026 and December 31, 2025. Fair value calculations are performed based on implied treasury rates as of year end.

4 Fair value is calculated as the Borrowings Outstanding. Refer to NOTE 11—BORROWINGS.