BOCA RATON, Fla., Sept. 17, 2025 (GLOBE NEWSWIRE) -- NewtekOne, Inc. ("NewtekOne" or the "Company") (NASDAQ:NEWT) and Patriot Financial Partners, L.P. ("Patriot") announced today that they have completed a transaction pursuant to which in exchange for all of Patriot's 20,000 shares of the Company's convertible preferred stock, Series A, $0.02 par value per share (the "Series A Preferred Stock") and $10.0 million in cash, the Company issued to Patriot 2,307,692 shares of its common stock, par value $0.02 per share (the "Common Shares"). With the exchange, Patriot relinquishes the right to convert the 20,000 shares of convertible preferred stock into 950,800 shares of common stock. The Common Shares were issued to Patriot in a private placement transaction in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended. The Common Shares are subject to, among other things, a two-year transfer restriction.

The transaction is expected to boost the Company's common equity tier one capital ("CET1 capital") and tier one capital by $30 million. In addition, on a pro forma basis as of June 30, 2025, the transaction grows CET1 capital from $256 million to $286 million. Moreover, the impact of this transaction, when combined with $48.357 million of net proceeds from the offering of depositary shares that closed August 20th, increases, on a pro forma basis as of June 30, 2025, tier one capital by $78.357 million from $256 million to $335 million and tangible book value per common share to approximately $10.74.

Barry Sloane, NewtekOne's Chairman, President, and Chief Executive Officer, commented, "We are pleased that one of our longer-term institutional shareholders expressed confidence in our business strategy and management team by exchanging the 20,000 shares of Series A Preferred Stock it originally acquired for $20 million and $10 million ...