Bank of the Future? Newtek on Cusp of Bank Acquisition!
Guest: Barry Sloane, Chairman President and CEO of Newtek Business Services Corp., Your Business Solutions Company®
Podcast Show Notes:
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Topic: Bank of the Future? Newtek on Cusp of Bank Acquisition!
Insights from Barry Sloane, Chairman, President and CEO of Newtek Business Services Corp., Your Business Solutions Company® (“Newtek”)
Newtek (NASDAQ: NEWT), is an internally managed business development company (“BDC”) and a leading provider of key business and financial solutions to small and medium-sized companies. Newtek has been in business as a publicly traded company for 22 years. Newtek’s and its portfolio companies’ products and services include Business Lending, SBA Lending Solutions, Electronic Payment Processing, Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts Receivable Financing and Inventory Financing, Insurance Solutions, Web services, and Payroll and Benefits Solutions. Per the Company’s website, Newtek has retained its position as the top ranked non-bank SBA 7(a) lender and second largest SBA lender including banks.
In the first quarter of 2022, Newtek applied with the Office of the Comptroller of the Currency to acquire the $200 million-asset National Bank of New York City and convert Newtek’s structure to a bank holding company. As a business development company, Newtek is required to pay out at least 90% of earnings as dividends. However, as a bank holding company, this rule would no longer apply and Newtek would be able to retain more of its earnings to fund growth. Following the announcement on August 2, 2021 of signing an agreement to acquire National Bank of New York City, Newtek’s stock price decreased by approximately 27%. Also, a significant number of dividend-focused shareholders have since sold their stock. On this episode, hear from Barry Sloane, President, Chairman and CEO of Newtek about how the new bank will be a technology-enabled “Bank of the Future” and how the acquisition and conversion to a bank holding company has the capacity to significantly reduce risk, provide enhanced shareholder value, and provide increased flexibility to serve business customers. Listen and enjoy!
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Watch for episode 78 of This Month in Banking to be released on Wednesday, June 29th, 2022, and a new episode on the last Wednesday of every month.
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