NewtekOne Subsidiary Pays Down $185M in Credit Facilities, Shifts C&I LA Loan Funding to Bank Deposits
NewtekOne, Inc. announced that its subsidiary, Newtek ALP Holdings, has paid down to $0 two credit facilities from Capital One and Deutsche Bank, which had combined outstanding balances of approximately $185 million at the end of 2025. This strategic move was enabled by the NALP Business Loan Trust 2026-1 securitization in January 2026, marking the company's 17th and largest rated securitization. Going forward, NewtekOne's bank subsidiary, Newtek Bank, N.A., will originate and fund C&I longer amortizing (C&I LA) loans with deposits, aiming for a more efficient funding structure while continuing regular securitizations from the Bank's balance sheet. This shift underscores NewtekOne's adaptability and commitment to optimizing its financial operations and supporting independent business owners with favorable loan terms.
Key Highlights
- Newtek ALP Holdings paid down two credit facilities from Capital One and Deutsche Bank, which had a combined outstanding balance of approximately $185 million at the end of 2025, now reduced to $0.
- The paydown was facilitated by the NALP Business Loan Trust 2026-1 securitization in January 2026, which was the Company’s fourth asset-backed securitization secured by C&I LA loans and its 17th and largest rated securitization.
- NewtekOne's bank subsidiary, Newtek Bank, N.A., will now originate C&I LA loans and fund them with deposits, moving away from external credit facilities.
- NewtekOne intends to continue its practice of regularly securitizing C&I LA loans, now from the Bank’s balance sheet.
- CEO Barry Sloane highlighted that C&I LA loans offer 10-to-25-year amortization with no balloon payment risk and commercially viable rates, providing lower monthly payments compared to alternative financing options.