NewtekOne Inc (NEWT) 2022 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Newtek Business Services Corporation Second Quarter 2022 Earnings Conference Call. (Operator Instructions) Please be advised today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Newtek 商業服務公司 2022 年第二季度收益電話會議。 （操作員說明）請注意今天的會議正在錄製中。

I'd now like to turn the call over to your speaker today, Barry Sloane, President and CEO. Please go ahead.

我現在想把今天的電話轉給你的發言人，總裁兼首席執行官巴里·斯隆。請繼續。

Good morning, everybody, and greatly appreciate everyone attending our Q2 second quarter financial results conference call. I'd also like to welcome Nick Leger this morning to the call who will be joining me. Nick is our Executive Vice President and Chief Accounting Officer.

大家早上好，非常感謝參加我們第二季度第二季度財務業績電話會議的每個人。我還想歡迎尼克萊傑今天早上參加電話會議，他將加入我的行列。 Nick 是我們的執行副總裁兼首席會計官。

In addition, we have invited several Newtek executives to the call today in a listen-only mode. I'd like to introduce Nick Young, who was hired over a year ago as Chief Risk Officer of Newtek Business Service Corp. John McCaffery, Executive Vice President of Finance, Newtek Business Service Corp. Kelvin Lui, Senior Vice President of Operations, Newtek Business Service Corp. and John Vivona, who just joined us this week as SVP of Risk Management, Newtek Business Service Corp.

此外，我們今天還邀請了幾位 Newtek 高管以只聽模式參加電話會議。我想介紹一下 Nick Young，他一年多前被聘為 Newtek Business Service Corp 的首席風險官 John McCaffery Newtek Business Service Corp 財務執行副總裁 Kelvin Lui Newtek 運營高級副總裁Business Service Corp. 和 John Vivona，本周剛加入我們，擔任 Newtek Business Service Corp 的風險管理高級副總裁。

I point these 4 individuals out primarily because these will all the executives that will be joining the Newtek Bank subject to regulatory approval, once we subject to approval, complete the acquisition of National Bank of New York City. Nick Young will become the President, Chief Operating Officer; John McCaffery, who's been with us for about 6 months will be Chief Financial Officer of Newtek Bank. Kelvin Lui will be the Chief Digital Officer of Newtek Bank. Kelvin has been with us a little over 7 or 8 months. And John Vivona, new recent hire, will be joining us as Chief Compliance Officer.

我指出這 4 個人主要是因為這些將加入 Newtek 銀行的所有高管都需要獲得監管部門的批准，一旦我們獲得批准，就可以完成對紐約市國家銀行的收購。 Nick Young 將成為總裁兼首席運營官；與我們共事約 6 個月的 John McCaffery 將擔任 Newtek Bank 的首席財務官。 Kelvin Lui 將擔任 Newtek Bank 的首席數字官。 Kelvin 和我們在一起已經 7 或 8 個月多了。新近聘用的 John Vivona 將作為首席合規官加入我們。

In addition, many of you are familiar with Peter Downs. He's been with Newtek for over 19 years. We'll be maintaining his position as Chief Lending Officer. Nick -- Peter is also President of Newtek Small Business Finance, and he will be joining the bank. Jared Mills, who is the President of Newtek Technology Solutions will be moving over as Chief Technology Officer of the bank as well.

此外，你們中的許多人都熟悉彼得唐斯。他已經在 Newtek 工作了 19 年。我們將維持他作為首席貸款官的職位。 Nick -- Peter 也是 Newtek Small Business Finance 的總裁，他將加入該銀行。 Newtek Technology Solutions 總裁 Jared Mills 也將擔任該銀行的首席技術官。

The purpose of introducing all these people is to just give everybody a very strong indication that we're prepared for this acquisition subject to approval. Many of these executives are already part of their budget for the existing business going forward and have already been involved in our expense structure in Q1, Q2. We're very excited about our future and look forward to presenting to you today.

介紹所有這些人的目的是給每個人一個非常強烈的跡象，表明我們已經準備好進行這次收購，但需要獲得批准。這些高管中的許多人已經是他們未來現有業務預算的一部分，並且已經參與了我們在第一季度和第二季度的費用結構。我們對我們的未來感到非常興奮，並期待今天向您展示。

I'd like to call everyone's attention to Slide 1 on the deck. For those of you that are following on our website, it's in the Investor Relations section and presentations. There's 2 decks there today that we'll be looking at. The first is the financial results conference call and the other deck is the updating pending acquisition of National Bank of New York City. For those of you that are online, you could follow the deck through the Internet connection that you currently have.

我想提請大家注意甲板上的幻燈片 1。對於那些在我們網站上關注的人，它位於投資者關係部分和演示文稿中。今天我們要研究的有 2 個甲板。第一個是財務業績電話會議，另一個是更新待收購的紐約市國家銀行。對於那些在線的人，您可以通過您當前擁有的 Internet 連接來關注該套牌。

So please call your attention to the forward-looking statement on Slide #1. Slide #2, we always start off with our returns. These are as of July 29. As many of you are fully aware, the company has had a stellar track record of over the long term of producing results. Our 10, 5 and 3 results real strong. This has been a tough year for us. Obviously, when we announced the bank deal, we're transitioning over with the expectation that we will get all of our approvals, which we'll talk about today. And obviously, we've done well, we believe with respect to paying our earnings in the form of a dividend as a BDC.

因此，請注意幻燈片#1 上的前瞻性陳述。幻燈片 #2，我們總是從回報開始。這些是截至 7 月 29 日的數據。你們中的許多人都充分意識到，該公司在長期產生成果方面有著出色的記錄。我們的 10、5 和 3 結果非常強勁。這對我們來說是艱難的一年。顯然，當我們宣布銀行交易時，我們正在過渡，期望我們將獲得所有批准，我們今天將討論這一點。顯然，我們做得很好，我們相信以股息的形式支付我們的收益作為 BDC。

Obviously, the stock prices had a difficult run here, which does eat into total rate of return. Part of that is based upon, obviously, the difficulty in giving long-term guidance as a BDC or as a bank. Our analysts coverage, which we have for, are primarily BDC analysts and also have done a stellar job in this transition, but it does make it little bit more challenging to report as well as what we'll call a shareholder transition from shareholders that have been very much focused on the dividend and the dividend only, being concerned that as we become a taxable entity, the dividend prospectively will decline.

顯然，股票價格在這裡經歷了艱難的運行，這確實侵蝕了總回報率。顯然，部分原因是難以作為 BDC 或銀行提供長期指導。我們的分析師覆蓋範圍主要是 BDC 分析師，並且在這次過渡中也做了出色的工作，但這確實使報告以及我們所說的股東過渡更具挑戰性。一直非常關注股息和僅股息，擔心隨著我們成為應稅實體，股息預期會下降。

With that said, let's go to Slide #3. So let's talk a little bit about the potential transition into a bank. We'll be covering that on this call as well as our specific results in the quarter. On June 1, we had a special meeting of the shareholders and Newtek shareholders overwhelmingly approved the proposed authorization of the Board to withdraw its application. It's a 40's Act company with 89% of the votes cast voting for the opportunity to withdraw that particular election.

話雖如此，讓我們轉到幻燈片#3。因此，讓我們談談向銀行的潛在轉變。我們將在本次電話會議以及本季度的具體結果中介紹這一點。 6 月 1 日，我們召開了股東特別會議，Newtek 股東以壓倒性多數通過了董事會的提議授權撤回其申請。這是一家 40 年代法案公司，有 89% 的選票投票支持撤回該特定選舉的機會。

In the proxy statement, we described the rationale that management team and the Board believes as well as 89% of the shareholders that this is in the shareholders best interest, which relates to, a, lowering our cost of capital to the company over the long term; b, having less of a reluctance on having to issue high cost of equity to continue to fund their growth because we're clearly a growth company. You can see that in the way we've delivered growth in dividends, growth in earnings historically, particularly as a BDC.

在代理聲明中，我們描述了管理團隊和董事會以及 89% 的股東認為這符合股東最佳利益的理由，這涉及到，a，長期降低我們對公司的資本成本學期; b，由於我們顯然是一家成長型公司，因此不太不願意發行高成本的股權以繼續為其增長提供資金。您可以從我們實現股息增長的方式中看到，歷史上收益的增長，特別是作為 BDC。

And going forward, we'll be able to grow the business using more core deposits and debt than having to rely upon equity, and that's based upon the fact that BDCs have a 2:1 leverage cap of which we've been very conservative and much lower number. So we had actually been able to grow our earnings, our dividends historically as a BDC without any excessive leverage. And we believe that we'll be able to benefit from that going forward. Also importantly, we'll talk about this a lot in the call is in a bank holding company structure owning a bank. We're extremely excited about unlocking value in the technologies that Newtek has built over the course of 20 years.

展望未來，我們將能夠使用更多的核心存款和債務來發展業務，而不是依靠股權，這是基於 BDC 的槓桿上限為 2:1 的事實，我們對此非常保守，並且低得多的數字。所以我們實際上已經能夠增加我們的收益，我們的股息歷史上作為一個 BDC 沒有任何過度的槓桿。我們相信，我們將能夠從中受益。同樣重要的是，我們將在電話會議中大量討論這一點，即在擁有銀行的銀行控股公司結構中。我們對釋放 Newtek 20 年來建立的技術的價值感到非常興奮。

We'll be talking about the Newtek Advantage, our trademark product, which will be offered to clients through our Dashboard, giving the business owners that we deal with every single day, a tremendous asset for their business. We're very, very excited about the potential to consummate our transaction with National Bank of New York City and become a bank holding company.

我們將討論 Newtek Advantage，我們的商標產品，它將通過我們的儀表板提供給客戶，為我們每天處理的企業主提供他們業務的巨大資產。我們對完成與紐約市國家銀行的交易並成為銀行控股公司的潛力感到非常非常興奮。

Let's move to Slide #4. Obviously, we'll talk a lot about the benefit of our homegrown technology, which has been fantastic delivering us great financial results in the marketplace (technical difficulty) solutions, things of that nature. However, we're now going to be able to feature and showcase that technology through the NewtekOne Dashboard, which will be positioned as the Newtek Advantage. We're also going to be evaluating licensing that most technologies such as NewTracker, which is our unique patented customer acquisition tool that allows us to acquire 1,000 to 1,500 clients a day without the use of bankers, brokers, branches or BDOs as well as position the Newtek Advantage, the one dashboard that businesses will ever need. We hope to position ourselves as the one company that our business clients will ever need to help them grow their business and become more successful. We're excited about the Newtek Advantage.

讓我們轉到幻燈片#4。顯然，我們將談論很多關於我們本土技術的好處，這在市場（技術難度）解決方案中為我們帶來了巨大的財務成果，這種性質的事情。但是，我們現在將能夠通過 NewtekOne Dashboard 展示和展示該技術，該儀表板將被定位為 Newtek Advantage。我們還將評估大多數技術的許可，例如 NewTracker，這是我們獨特的專利客戶獲取工具，使我們能夠在不使用銀行家、經紀人、分支機構或 BDO 以及頭寸的情況下每天獲取 1,000 到 1,500 名客戶Newtek Advantage，企業將永遠需要的一個儀表板。我們希望將自己定位為我們的商業客戶永遠需要的一家公司，以幫助他們發展業務並取得更大的成功。我們對 Newtek Advantage 感到興奮。

I'd like to call everyone's attention to Slide #5, where we really highlight what is the advantage in the Newtek Advantage. Well, through the Newtek Advantage and obviously, a bank holding company and a banking structure, we're going to give our client base. And once again, I want to focus on that client base. It's the 30 million clients in the United States at the SBA, Small Business Administration defines as independent business owners or small and medium sized businesses, a huge demographic representing approximately 50% of nonfarm GDP. We're going to be able to give those clients personal banking relationships.

我想請大家注意幻燈片#5，我們真正強調了Newtek Advantage 的優勢。好吧，通過 Newtek 優勢，顯然，銀行控股公司和銀行結構，我們將提供我們的客戶群。再一次，我想專注於那個客戶群。這是美國 SBA 的 3000 萬客戶，小企業管理局將其定義為獨立企業主或中小型企業，這一龐大的人口約佔非農業 GDP 的 50%。我們將能夠為這些客戶提供個人銀行業務關係。

We'll illustrate that in the next slide in #6. We're going to give our clients analytics. We're going to give them frictionless software and transactional capability. We're going to give them the 4 things that other banks simply do not. I sort of used the expression what our competitors do in the space is they go to our client base, they take their money. That's a little bit of a coarse expression where they give them deposit-taking capability. And they may make you alone. That's about it. In most cases, they take the client and they push them into their retail system with the retail product. That's not with Newtek Bank or Newtek will be doing for its client base.

我們將在#6 的下一張幻燈片中說明這一點。我們將為客戶提供分析。我們將為他們提供無摩擦的軟件和交易能力。我們將為他們提供其他銀行根本沒有的 4 樣東西。我有點用我們的競爭對手在這個領域所做的表達是他們去我們的客戶群，他們拿走他們的錢。這是一個粗略的表達，他們賦予了他們存款接受能力。他們可能會讓你孤獨。就是這樣。在大多數情況下，他們會帶走客戶，然後將他們與零售產品一起推送到他們的零售系統中。這不是 Newtek Bank 或 Newtek 將為其客戶群做的事情。

Let's go to Slide #6. Therein lies the Newtek Advantage. The most important thing about the Newtek Advantage is our competitors have relationships with their customers, where they may or may not know a single person at the institution. They may or may not know that one banker that's supposedly attached to the relationship. With Newtek and the Newtek Advantage, if you look at the left-hand side of the screen shot, you're going to get 6 to 7 relationships almost instantly. You'll get a licensed insurance agent. You'll get a payroll person. You'll get a tech solutions person that could design a website or help you with domain name, can help you with e-mail, can help you with managing your workload in private, public or hybrid cloud.

讓我們轉到幻燈片#6。這就是Newtek的優勢。 Newtek Advantage 最重要的一點是我們的競爭對手與他們的客戶有關係，他們可能認識也可能不認識機構中的一個人。他們可能知道也可能不知道據稱與這種關係有關聯的一位銀行家。使用 Newtek 和 Newtek Advantage，如果您查看屏幕截圖的左側，您將幾乎立即獲得 6 到 7 個關係。你會得到一個有執照的保險代理人。你會得到一個工資單的人。您將獲得一個技術解決方案人員，可以設計網站或幫助您處理域名，可以幫助您處理電子郵件，可以幫助您管理私有云、公共雲或混合雲中的工作負載。

You'll get a payment specialist. You'll get a lending specialist. You'll get a depository specialist and a relationship specialist sitting over the entire account. And these are people that you'll be able to go online, click on them and get a clear camera view, everybody on camera, everybody with Newtek backgrounds to be able to talk and speak to them directly. It's the new concept of relationship banking in the year 2022 and 2023. No bankers, no brokers, no branches, no BDOs, just solution specialists. So Newtek, you get relationships through the Advantage.

您將獲得一位付款專家。你會得到一個貸款專家。你會得到一個存款專家和一個關係專家坐在整個賬戶。這些人你可以上網，點擊他們並獲得清晰的鏡頭視圖，鏡頭中的每個人，每個具有 Newtek 背景的人都可以直接與他們交談。這是 2022 年和 2023 年關係銀行的新概念。沒有銀行家，沒有經紀人，沒有分支機構，沒有 BDO，只有解決方案專家。因此，Newtek，您通過 Advantage 建立關係。

You're going to get analytics. You're going to be able to look at your payroll and compare your payroll this time this year, this time last year, this quarter this year, this quarter last year. The same thing with your payment processing analytics. Visa, Discover, American Express, debit versus credit, be able to analyze that data, be able to analyze those trends. You're going to be able to look at your web traffic, statistics and analytics, and you're going to be able to get help to try to grow your website to make it more effective through the Newtek, through the solution specialists and through the analytics in addition to transactional capabilities.

你會得到分析。您將能夠查看您的工資單並比較您的工資單今年這個時候，去年這個時候，今年這個季度，去年這個季度。您的付款處理分析也是如此。 Visa、Discover、American Express、借記卡與貸記卡，能夠分析這些數據，能夠分析這些趨勢。您將能夠查看您的網絡流量、統計數據和分析，並且您將能夠通過 Newtek、解決方案專家和除了交易能力之外的分析。

We're going to talk more and more about the Advantage as we go through this presentation. Really important. We think that the Advantage is going to be similar to what I'll call the iPhone of the smartphone. People buy iPhones or smartphones not because you can make a better telephone call. They buy it for all the other things that you can do. And that's what the Newtek Advantage is going to do. Yes, you'll have the ability to open up a high-yield savings account, a CD, a business checking account. You have the ability to do that. That's the same thing as making a phone call. But look at all the other things you're going to get through the Dashboard and the Newtek Advantage.

在完成本演示文稿時，我們將越來越多地談論 Advantage。真的很重要。我們認為 Advantage 將類似於我所說的智能手機 iPhone。人們購買 iPhone 或智能手機並不是因為你可以打出更好的電話。他們為您可以做的所有其他事情購買它。這就是 Newtek Advantage 要做的事情。是的，您可以開立高收益儲蓄賬戶、CD、商業支票賬戶。你有能力做到這一點。這和打電話是一樣的。但是看看您將通過儀表板和 Newtek Advantage 獲得的所有其他內容。

Let's go to Slide #7. Slide #7 reemphasizes most of the things that I talked about previously. But also important to note, in the future, we look forward to also offering Newtek Tax and Digital Bookkeeping. We believe our clients want integration into a GL. They want their payroll integrated. They want their payments integrated. They want their deposits integrated. These are the things that we'll be working in 2.0 and 3.0 and these things could be on the agenda for 2023.

讓我們轉到幻燈片#7。幻燈片 #7 再次強調了我之前談到的大部分內容。但同樣需要注意的是，在未來，我們也期待提供 Newtek Tax 和 Digital Bookkeeping。我們相信我們的客戶希望整合到 GL。他們希望整合他們的工資單。他們希望整合他們的支付。他們希望整合他們的存款。這些是我們將在 2.0 和 3.0 中工作的事情，這些事情可能會出現在 2023 年的議程上。

Slide #8. Let's stay way back to the quarterly highlights and refocus on the acquisition and our future down the road. We had a really strong quarter for metrics, particularly in the area of 7(a) fundings, which is one of Newtek's flagship programs. We funded a record $200 million worth of SBA 7(a) loans, a 112% increase over the quarter prior -- over the year prior in that particular quarter. We're very, very excited about the unit growth. We funded 330 units in the quarter ended June 30, 2022, an increase of 154% in that period of time.

幻燈片#8。讓我們回到季度亮點，重新關注收購和我們未來的未來。我們有一個非常強勁的季度指標，特別是在 7(a) 資金領域，這是 Newtek 的旗艦項目之一。我們為 SBA 7(a) 貸款提供了創紀錄的 2 億美元資金，比上一季度增長 112% - 在該特定季度比上年同期增長。我們對單位增長非常非常興奮。我們在截至 2022 年 6 月 30 日的季度資助了 330 個單位，在此期間增長了 154%。

For the first 6 months of the year, $363 million. Once again, record funding, 83% increase. Important to note, our competitors in the SBA space, flat for the year. Why are we doing better? Well, we're doing this without reducing the credit quality of our borrowers. To the contrary, we tightened credit standards with a reduced approval rate presented to loan committee. As a matter of fact, in the month of July, which is typically a difficult funding month. When you blow out a quarter, typically, you blow your pipeline out. Well, we funded $62 million of 7(a) loans during July 2022. We're forecasting $750 million for the full year. That will be a 33% increase over $560 million last year.

今年前 6 個月，為 3.63 億美元。再一次，創紀錄的資金增長了 83%。需要注意的是，我們在 SBA 領域的競爭對手今年持平。為什麼我們做得更好？好吧，我們這樣做並沒有降低借款人的信用質量。相反，我們收緊了信貸標準，降低了向貸款委員會提交的批准率。事實上，在 7 月份，這通常是一個融資困難的月份。通常，當您吹出四分之一時，您的管道就會吹出。好吧，我們在 2022 年 7 月為 7(a) 貸款中的 6200 萬美元提供了資金。我們預計全年為 7.5 億美元。這將比去年的 5.6 億美元增加 33%。

Also important to note, which we'll go through, a lot of the comparisons that we have in the income generated aspects were inflated in 2021 due to PPP. In the second quarter 2021 financial results, $25.5 million of PPP fee income, that's almost $1 a share. For 6 months, $49.7 million, $49.8 million approximately over $2 a share. I mean, we did almost -- so if you looked at our calendar year last year of $3.47 of adjusted NII can take $2, that's $1.47. We almost did that in the first 6 months of the year with the same cost structure, but obviously, getting back into our core business. We like the metrics, we like the plan we're on. We like the progress. We think we're really doing very well.

同樣重要的是要注意，我們將通過購買力平價，在 2021 年誇大了我們在收入產生方面的很多比較。在 2021 年第二季度的財務業績中，2550 萬美元的 PPP 費用收入，幾乎是每股 1 美元。 6 個月，4,970 萬美元，4,980 萬美元，約超過每股 2 美元。我的意思是，我們幾乎做到了——所以如果你看看我們去年的日曆年調整後的 NII 為 3.47 美元，可能需要 2 美元，那就是 1.47 美元。今年前 6 個月，我們幾乎以相同的成本結構做到了這一點，但顯然，我們又回到了我們的核心業務。我們喜歡這些指標，我們喜歡我們正在製定的計劃。我們喜歡進步。我們認為我們真的做得很好。

On Slide #9, some of the operational drivers that are creating this, what I would call, a substantial overperformance versus our industry competitors. We've made changes to our NewTracker platform that enable us to transfer data from the borrower to our lending process in a more seamless manner. Once again, no bankers, no brokers, no BDOs, reducing friction. I think it's important to note some of our competitors in the 7(a) space with the reduction in gain on sale premium, which we'll talk about, from a pricing perspective, something we really don't have much control over has actually forced people to curtail their lending activities because they almost can't make money in this environment because of their high cost to originate a loan.

在幻燈片 #9 上，一些運營驅動因素正在創造這一點，我稱之為，與我們的行業競爭對手相比，業績大幅超額。我們對 NewTracker 平台進行了更改，使我們能夠以更無縫的方式將數據從借款人傳輸到我們的貸款流程。再一次，沒有銀行家，沒有經紀人，沒有 BDO，減少了摩擦。我認為重要的是要注意我們在 7(a) 領域的一些競爭對手，其銷售溢價收益減少了，我們將從定價的角度討論這一點，實際上我們實際上並沒有太多控制權迫使人們減少借貸活動，因為他們在這種環境下幾乎無法賺錢，因為他們發起貸款的成本很高。

This is where our technology comes in, the ability to increase efficiencies and the ability to even though market forces are against us, to continue to drive the results that our investors expect from us. We've made major changes in technology. We continue to receive approximately 100,000 referrals per quarter on average. And those referrals aren't just for 7(a), they're for 7(a), they're for 504, they're for lines of credit, they're for nonconforming conventional loans and subject to the acquisition of National Bank of New York City. Those are referrals that would be able to fit into the conforming C&I and conforming CRI book that will go into the bank.

這就是我們的技術發揮作用的地方，提高效率的能力以及即使市場力量對我們不利的能力，也能繼續推動投資者對我們的期望。我們在技術上做出了重大改變。我們繼續平均每季度收到大約 100,000 次推薦。這些推薦不僅針對 7(a)，還針對 7(a)，針對 504，針對信用額度，針對不合格的常規貸款，並受制於 National紐約市銀行。這些是能夠適合將進入銀行的符合 C&I 和符合 CRI 書籍的推薦。

Important to note, we've made major changes in the senior management level. Peter Downs has made some great changes underneath him. Management team of Anna Pablo, Justin Gavin, Virginia Wiley and their staff underneath doing a great job. Important to note, we're not standing still. We're moving forward. We're innovating. Business owners are going to be a benefit -- beneficial parties of all this innovation, and we're getting tremendous value in assets over the Newtek infrastructure.

需要注意的是，我們對高級管理層進行了重大調整。彼得唐斯在他的身下做出了一些巨大的改變。 Anna Pablo、Justin Gavin、Virginia Wiley 的管理團隊及其下屬的員工都做得很好。重要的是要注意，我們並沒有停滯不前。我們正在前進。我們正在創新。企業主將受益——所有這些創新的受益方，我們通過 Newtek 基礎設施獲得了巨大的資產價值。

On Slide #10, you can take a look at our pipeline growth. It is very, very clear that we've got tremendous tailwinds going into the second half of the year with growth in our pipeline, particularly in the 7(a) space. Obviously, 504 a little bit more challenging. However, please notice the approved pending closing, which is important to be able to get us to our $150 million of closings between the end of the year. And we're very excited about our nonconforming conventional business, which we'll talk about later on in the presentation.

在幻燈片 #10 上，您可以查看我們的管道增長情況。非常非常清楚的是，隨著我們管道的增長，特別是在 7(a) 領域，我們在下半年獲得了巨大的順風。顯然，504 更具挑戰性。但是，請注意已批准的待決交易，這對於能夠讓我們在年底之間完成 1.5 億美元的交易非常重要。我們對我們不合格的傳統業務感到非常興奮，我們將在稍後的演示文稿中討論。

On Slide #11, you can continue to see on an aggregated basis. Our pipeline is still strong, and we look forward to a very good second half of the year. There is very good loan demand for us. Now is loan demand down overall? Well, I'd say that in a tougher economy, you're tightening your guidelines, but our referral numbers are up. We're being more selective, and we're just outperforming the market in every aspect of lending, being able to find the better credits, get to the clients, give them a frictionless environment, process the business and put the loans on the books.

在幻燈片 #11 上，您可以繼續查看匯總信息。我們的管道仍然很強勁，我們期待今年下半年非常好。我們的貸款需求非常好。現在貸款需求整體下降了嗎？好吧，我想說的是，在更艱難的經濟環境中，您正在收緊指導方針，但我們的推薦人數增加了。我們變得更有選擇性，我們只是在貸款的各個方面都超越了市場，能夠找到更好的信貸，接觸客戶，為他們提供無摩擦的環境，處理業務並將貸款記入賬簿.

On Slide #12, we talk about we view, obviously, as our secret sauce in all aspects of the business. And we focus on growth in loan referrals, but referrals across payment processing, payroll, tech solutions, everything that we do, very, very strong. We've got 19 years in utilizing the NewTracker system and a broker, bankerless BDO and branchless manner. We're very, very excited about it. We've materially improved our technological lending applications. We continue to upgrade NewTracker. We continue to be able to get great data, which we'll be able to mine in the future, which is really going to help our business.

在幻燈片 #12 中，我們顯然將我們視為業務各個方面的秘密武器。我們專注於貸款推薦的增長，但在支付處理、工資單、技術解決方案以及我們所做的一切方面的推薦，非常非常強大。我們在使用 NewTracker 系統和經紀人、無銀行 BDO 和無分支機構方式方面已有 19 年的歷史。我們對此非常非常興奮。我們已經實質性地改進了我們的技術貸款應用程序。我們繼續升級 NewTracker。我們繼續能夠獲得大量數據，我們將能夠在未來挖掘這些數據，這將真正有助於我們的業務。

Let's move forward to Slide #12. I also want to point out when you look at our headcount and staff on Slide #13, this is not an outsourced business. There is 480 employees that are currently on the Newtek payroll. After the bank acquisition, we expect to be north of 500, so we're not outsourcing our opportunities to third parties. Also, important to note, while other companies are reporting labor reductions, we're adding the headcount. So I'm looking at a lot of the headlines, companies are cutting staff, they're reducing. We are adding staff. Obviously, you could look into that and have a good sense that management has expectations that it's excited, optimistic and looks to take advantage of what other people are looking as headwinds in their face. We look at it as an attractive opportunity to position ourselves for the future.

讓我們前進到幻燈片 #12。當您查看幻燈片 #13 上的員工人數和員工時，我還想指出，這不是外包業務。目前有 480 名員工在 Newtek 工資單上。收購銀行後，我們預計將超過 500 家，因此我們不會將我們的機會外包給第三方。此外，需要注意的是，雖然其他公司正在報告裁員，但我們正在增加員工人數。所以我看了很多頭條新聞，公司正在裁員，他們正在裁員。我們正在增加工作人員。顯然，您可以對此進行調查，並很好地感覺到管理層期望它是興奮、樂觀的，並希望利用其他人在他們面前的逆風。我們將其視為為未來定位的一個有吸引力的機會。

Slide #14, very important slide. So we talked about this in our last conference call, which is, differences in 7(a) lending. And what we really wanted to begin to focus on whether there are changes in the program that would affect income. We did not believe that some of these changes would affect the gain on sale prices, which you'll see on Slide #15. I'm sorry, actually down the road a little bit more. So wait a little bit. We'll be a bit more patient.

幻燈片#14，非常重要的幻燈片。因此，我們在上次電話會議中談到了這一點，即 7(a) 貸款的差異。我們真正想開始關注的是該計劃是否有會影響收入的變化。我們認為其中一些變化不會影響銷售價格的收益，您將在幻燈片 #15 中看到這一點。對不起，實際上還有一點。所以稍等一下。我們會多一點耐心。

But I think it's important to note that our gain on sale numbers were tremendously reduced in the second quarter, but we were still able to meet, number one, the quarterly adjusted NII projection we had out there and actually beat the 6-month projection, and we beat the street consensus for adjusted NII in the second quarter, which is about $0.72. We came in at $0.75. So we have a history of operating over 24 years through '08, '09, through the pandemic of being nimble, looking ahead and making sure that we position ourselves correctly.

但我認為重要的是要注意，我們的銷售數字在第二季度大幅減少，但我們仍然能夠滿足第一季度調整後的 NII 預測，實際上超過了 6 個月的預測，我們在第二季度超過了調整後 NII 的市場共識，約為 0.72 美元。我們的價格是 0.75 美元。因此，我們在 08 年和 09 年的 24 年中運營歷史，經歷了靈活、展望未來並確保我們正確定位自己的流行病。

So once again, looking forward to Slide #15 and talking about our performance with respect to dividends. We paid a $0.75 dividend in Q2, represented a 7% increase over the same quarter in the prior year. We paid $1.40 for Q1, Q2. If you look at that versus the current price, that was a very attractive yield for shareholders. And we forecasted a dividend cumulative for the third and fourth quarter. It's difficult for us to forecast with precision here because we don't know when the exact conversion will occur. We're going to talk about on this call when we expect to get approval when the bank will close shortly thereafter. So we wanted to try to give investors as much guidance as we could with the expectation that we will be able to pay a BDC dividend in Q3 and in Q4.

因此，再次期待幻燈片 #15 並談論我們在股息方面的表現。我們在第二季度支付了 0.75 美元的股息，比去年同期增加了 7%。我們為第一季度和第二季度支付了 1.40 美元。如果您將其與當前價格相比，這對股東來說是一個非常有吸引力的收益。我們預測第三和第四季度的股息累計。我們很難在這裡進行精確的預測，因為我們不知道確切的轉換何時會發生。我們將在本次電話會議上討論當我們希望在銀行此後不久關閉時獲得批准。因此，我們希望盡可能多地為投資者提供指導，期望我們能夠在第三季度和第四季度支付 BDC 股息。

We're forecasting a range of $1 to $1.50. At the lower end of the range, that will be $2.40 for the year. At the upper end of the range, $2.90 for the year. When we announced the deal back in August of 2021, we clearly had a tremendous transformation of shareholders. We talked about that in previous presentations. So we paid out $3.35 in dividends since that time to this particular date. And you put another $1 to $1.50 on top of that, it's almost $5. It's like at the midpoint, close to $4.40 to $4.60 for people that were upset that they weren't going to get their dividend anymore. They actually left a lot of dividend on the table.

我們預測範圍為 1 美元至 1.50 美元。在該範圍的下限，今年將是 2.40 美元。在該範圍的上限，全年為 2.90 美元。當我們在 2021 年 8 月宣布這筆交易時，顯然我們的股東發生了巨大的轉變。我們在之前的演講中談到了這一點。因此，從那時到這個特定日期，我們支付了 3.35 美元的股息。再加上 1 到 1.50 美元，幾乎是 5 美元。這就像在中間點，對於那些因無法再獲得股息而感到不安的人來說，接近 4.40 美元到 4.60 美元。他們實際上在桌面上留下了很多紅利。

So with that said, we like the way we've been able to generate cash in the last 4 quarters since we announced the bank deal. We're optimistic and believe that the forecast that we've given on dividends, particularly in the remaining 5 months, presents an attractive yield to shareholders going forward.

話雖如此，我們喜歡自我們宣布銀行交易以來在過去四個季度中能夠產生現金的方式。我們很樂觀，並相信我們對股息的預測，特別是在剩餘的 5 個月內，為未來的股東帶來了有吸引力的收益。

Slide #16 talks about the comparative financials, which we acknowledge are difficult, particularly given that in the first 6 months of the year versus last -- versus 6 months of the year in 2021. There's about $50 million of PPP income that we don't get the benefit of. We do think we've transitioned nicely back into our core business with a great slope and growth position going forward with a great pipeline. So we feel very good about the financial results that we have reported in Q1 and Q2.

幻燈片 #16 談到了比較財務，我們承認這很困難，特別是考慮到今年前 6 個月與去年相比 - 與 2021 年的 6 個月相比。我們沒有大約 5000 萬美元的 PPP 收入。 t 得到好處。我們確實認為我們已經很好地過渡到了我們的核心業務，並且具有很大的斜率和增長位置，並且有很好的管道。因此，我們對第一季度和第二季度報告的財務業績感到非常滿意。

Going to Slide #17. I think it's important to note we put up an adjusted NII of $1.46 for the first 6 months of the year. Our midpoint was $1.45. So we're able to get a beat on that. And we feel very good about where we are with respect to wrapping up the end of the year. We're hopeful that we get approval from the Fed and the OCC to close the bank transaction, and we can begin to focus our efforts on our new financial structure going forward.

轉到幻燈片 #17。我認為重要的是要注意我們今年前 6 個月的調整後 NII 為 1.46 美元。我們的中點是 1.45 美元。因此，我們能夠對此有所了解。我們對年底結束時的狀況感到非常滿意。我們希望獲得美聯儲和 OCC 的批准以完成銀行交易，並且我們可以開始將精力集中在我們未來的新金融結構上。

Slide #18 is a slide we use typically to show what a pro forma debt-to-equity reconciliation is. We sell quite a few government guarantees over the end of the quarter, so we have a big broker receivable. Once that broker receivable settles, our debt-to-equity ratio was 1.15, very low, very, very low. So you could see we're able to generate really attractive yields, really good income on this basis with very little financial leverage. Obviously, in a bank holding company structure, owning a bank we'll be able to get up to as much as 10:1, which really should be very beneficial for earnings per share.

幻燈片 #18 是我們通常用來展示什麼是備考債務權益對賬的幻燈片。我們在本季度末出售了相當多的政府擔保，因此我們有大量的經紀人應收賬款。一旦該經紀人應收賬款結清，我們的債務權益比率為 1.15，非常低、非常、非常低。所以你可以看到我們能夠產生非常有吸引力的收益，在此基礎上非常好的收入，而財務槓桿很少。顯然，在銀行控股公司結構中，擁有一家銀行我們將能夠獲得高達 10:1 的比率，這對於每股收益來說確實應該是非常有利的。

Slide #19 is a slide we typically carry over from transactions from presentation to presentation. I think it's important to note, $151,000 is the average unguaranteed retained balance. That number keeps going down and down. Very important to note that obviously, smaller balances, greater diversification with a 19-year track record in default history and frequency. We've done 11 securitizations. We anticipate doing 1 or 2 between now and the end of the year. Our loans are prime plus 2 and 3 quarters. That's the max rate. That's the rate that we typically get.

幻燈片#19 是一張我們通常從演示文稿到演示文稿的交易的幻燈片。我認為重要的是要注意，151,000 美元是平均無保證留存餘額。這個數字一直在下降。非常重要的是要注意，顯然，較小的餘額，更大的多元化與 19 年的違約歷史和頻率記錄。我們進行了 11 次證券化。我們預計從現在到年底之間進行 1 或 2 次。我們的貸款是優質貸款加上 2 和 3 個季度。那是最高費率。這就是我們通常得到的比率。

I don't think we've made any concessions on that in 12 years, a major difference between us and other competitors in the space like Live Oak Bank that originates loans in a brokered model and basically has to have significantly lower rates, lower gain on sale. It's just a totally different model. We're utilizing technology to acquire and process the business. They're using bankers, brokers and BDOs. Prime rate on a full adjustment, 8.25%. It's really important to note. Prime plus 2.75%. Prime, which is like from 4.75%, up 75 basis points to 5.5% is another anticipated raise. We'll see if that comes through or not. But obviously, this is great for the banking environment to really be able to have a real attractive net interest margin.

我認為我們在 12 年中沒有對此做出任何讓步，這是我們與 Live Oak Bank 等領域的其他競爭對手之間的主要區別，後者以經紀模式發放貸款，基本上必須大幅降低利率，降低收益出售。這只是一個完全不同的模型。我們正在利用技術來獲取和處理業務。他們使用銀行家、經紀人和 BDO。全面調整後的最優惠利率為 8.25%。需要注意的是真的很重要。總理加 2.75%。 Prime 從 4.75% 上漲 75 個基點至 5.5% 是另一個預期的上漲。我們會看看這是否通過。但顯然，這對於銀行環境真正能夠擁有真正有吸引力的淨息差來說是非常好的。

Slide #20 begins to address the issue of gain on sale. And this is a slide which basically attempts to address the lag of primary and SOFR versus where treasuries are. So what's occurred with respect to the government guaranteed bonds that we sell into the market, which are prime-based floaters. Prime has lagged because the Fed has been behind the treasury curve. As a matter of fact, just to give you an example, SOFR on July 27 was 1.53%, SOFR as of yesterday, 2.3%. Prime was 4.75% on July 27. Prime yesterday, 5.5%. Now when that prime rate change went through, our loans adjust 90 days in arrears, so that when we're selling bonds into the market, we're not able to sell the bonds at the full coupon.

幻燈片 #20 開始解決銷售收益問題。這是一張幻燈片，它基本上試圖解決初級和 SOFR 相對於國債的滯後問題。因此，我們向市場出售的政府擔保債券發生了什麼事，這些債券是基於質數的浮動債券。 Prime 已經落後，因為美聯儲一直落後於國債曲線。其實，舉個例子，7月27日的SOFR是1.53%，昨天的SOFR是2.3%。 7 月 27 日 Prime 為 4.75%。昨天 Prime 為 5.5%。現在，當最優惠利率發生變化時，我們的貸款調整了 90 天，因此當我們向市場出售債券時，我們無法以全額票面出售債券。

That's why when you go to Slide #21, you could see that we had a tremendous diminution in our gain on sale price of 9.2% for the quarter, down from 12.05% gain on sale in the first quarter and down from 13.05% in the full calendar year. But if you take a look at the history because these are government guaranteed floaters. We do believe this is the primary determinant. There could be other determinants. That's our opinion, that's our guess. We do think that there will be a rebound in prices, maybe not in Q3, but hopefully in Q4 when prime begins to adjust back. But once again, that's our thought, that's our opinion. But we are proud of the fact that we were able to make our numbers even with almost a 20% decline in gain on sale premiums.

這就是為什麼當您轉到幻燈片 #21 時，您會看到我們本季度的銷售價格漲幅為 9.2%，低於第一季度的 12.05%，低於上一季度的 13.05%。完整的日曆年。但是如果你看一下歷史，因為這些是政府保證的漂浮物。我們確實相信這是主要的決定因素。可能還有其他決定因素。這是我們的看法，也是我們的猜測。我們確實認為價格會反彈，可能不會在第三季度，但希望在第四季度黃金開始調整時出現。但再一次，這是我們的想法，這是我們的觀點。但我們為我們能夠在銷售保費收益下降近 20% 的情況下取得業績而感到自豪。

On Slide #22, one of our helping aspects of that was our net interest income trend. So you can see gross income for Q2 2022, sequentially from Q2 2021, almost up by $2 million, up to $8.031 million from $6.2 million, a very nice gain with net interest income going from $4.6 million to $5.1 million now. Net interest income will improve because our loans change with a lag quarterly but our interest income based upon our lines of credit change monthly. So that should be a nice catch up next month. Slide #23 refers to the seasoning of the portfolio. That's important to note. We do believe that most of the defaults are behind us in the default curve.

在幻燈片 #22 上，我們的一個幫助方面是我們的淨利息收入趨勢。因此，您可以看到 2022 年第二季度的總收入，從 2021 年第二季度開始，幾乎增加了 200 萬美元，從 620 萬美元增加到 803.1 萬美元，這是一個非常不錯的收益，淨利息收入從現在的 460 萬美元增加到 510 萬美元。淨利息收入將有所改善，因為我們的貸款每季度都有滯後變化，但我們的利息收入基於我們的信用額度每月變化。所以這應該是一個很好的趕上下個月。幻燈片 #23 指的是投資組合的調味品。這很重要。我們確實相信，在默認曲線中，大多數違約都在我們身後。

Slide #24, important note, look at that currency rate 98%. We work very hard with our customers. This is a function of making sure our clients have taken advantage of PPP, EIDL loans and ERC credits. And we're very aggressive in the servicing area. We typically have 40 to 50 professionals that work with our customers, $3 billion servicing portfolio regularly to keep them current. Unlike '08, '09 because people are concerned about recession and decline, we don't have the overleverage with our client base. We don't have clients that have excessive amounts of, I'll call it, financial and operational leverage. Many of them are liquid personally as well as professionally, and that's led to an extremely high currency rate.

幻燈片 #24，重要說明，看 98% 的貨幣匯率。我們與客戶一起努力工作。這是確保我們的客戶利用 PPP、EIDL 貸款和 ERC 信用的功能。我們在服務領域非常積極。我們通常有 40 到 50 名專業人員與我們的客戶合作，定期提供 30 億美元的服務組合，以使他們保持最新狀態。與 08 年和 09 年不同，因為人們擔心經濟衰退和衰退，我們的客戶群沒有過度槓桿化。我們沒有擁有過多（我稱之為）財務和運營槓桿的客戶。他們中的許多人在個人和專業方面都具有流動性，這導致了極高的貨幣匯率。

We're appreciative of the work that our team has done with the portfolio. This obviously is current as of June 30. To be fair and honest and transparent, we don't expect this particular rate to continue, particularly with rises in rates and inflation sitting in with our client portfolio. But as we sit here today, we're in very good shape.

我們感謝我們的團隊在投資組合方面所做的工作。這顯然是截至 6 月 30 日的最新情況。為了公平、誠實和透明，我們預計這一特定利率不會持續下去，尤其是在利率和通貨膨脹與我們的客戶投資組合相關的情況下。但是當我們今天坐在這裡時，我們的狀態非常好。

I'd also like to point out on Slide #25, we had a significant decrease in nonaccrual loans at fair value on December 31, approximately $30 million. June 30, down to $25 million, a nice decline. Slide #26 and 27 are classic slides that we continue to roll over our presentation and presentation.

我還想在幻燈片 #25 上指出，我們在 12 月 31 日按公允價值計算的非應計貸款大幅減少，約為 3000 萬美元。 6 月 30 日，跌至 2500 萬美元，跌幅不錯。幻燈片 #26 和 27 是經典幻燈片，我們將繼續進行演示和演示。

Now let's move into the portfolio company review. Slide #29 talking about our SBA 504 loan program. We're still sticking to our $150 million forecast. Our 504 loan business is an important business to us. We have substantial lines of credit with Deutsche Bank, Capital One Bank, One Florida Bank. We look forward to having a good second half of the year.

現在讓我們進入投資組合公司審查。幻燈片 #29 談論我們的 SBA 504 貸款計劃。我們仍然堅持我們 1.5 億美元的預測。我們的504貸款業務對我們來說是一項重要的業務。我們在德意志銀行、第一資本銀行、佛羅里達一銀行擁有大量信貸額度。我們期待下半年有一個好的表現。

Slide #30 talks about how that 504 business works. We're in the 504 business. Unlike the 7(a) business, we make a loan and typically, the entire loan moves off our books. The second gets taken out through SBA debentures. The first typically gets sold at a gain on sale into the secondary market.

幻燈片 #30 討論了 504 業務的運作方式。我們從事 504 業務。與 7(a) 業務不同，我們提供貸款，而且通常整個貸款都從我們的賬簿中扣除。第二個通過 SBA 債券取出。第一個通常以出售到二級市場的收益出售。

Slide #31 talks about the return on equities. And the return on equity of the 504 business north of 30%. The return on equity in the 7(a) business also north of 30%. This is how we're able to generate high ROAs as a BDC, high ROEs as BDC. And as we demonstrate in the illustration that we'll talk about shortly, generate high ROAs and return on tangible common equity as a bank. We're very excited about our future, particularly lowering our cost of funds. But it does start off with the fact that we have a 20-year experience in these businesses generating inexpensive great risk versus reward assets with a 19-year history in credit and financing capability to generate good returns on equity for our shareholders.

幻燈片 #31 談到了股票回報率。 504 業務的股本回報率超過 30%。 7(a) 業務的股本回報率也在 30% 以上。這就是我們如何能夠產生高 ROA 作為 BDC，高 ROE 作為 BDC。正如我們在插圖中展示的那樣，我們很快就會談到，作為銀行產生高 ROA 和有形普通股的回報。我們對我們的未來感到非常興奮，特別是降低我們的資金成本。但它確實始於這樣一個事實，即我們在這些業務方面擁有 20 年的經驗，這些業務產生了廉價的巨大風險與回報資產，在信貸和融資能力方面擁有 19 年的歷史，為我們的股東創造了良好的股本回報。

Slide #32, we talk about our nonconforming conventional loan program. Many people on this call that are familiar with us understand this business. We basically originate a type of loan that began in 2019 that doesn't fit SBA 7(a) criteria. In some cases, it doesn't fit because the credit is too good. The borrower has too much liquidity, too much assets and we fail to credit elsewhere in test. In some cases, it's because the loan is greater than $5 million. In some cases, because the borrower only occupies less than 50% of the real estate. So there's some vagary in the program. But this is a complete conventional loan. There's no government guaranteed.

幻燈片 #32，我們討論了我們不合格的常規貸款計劃。許多熟悉我們的電話的人都了解這項業務。我們基本上發起了一種始於 2019 年的貸款，不符合 SBA 7(a) 標準。在某些情況下，它不適合，因為信用太好。借款人有太多的流動性，太多的資產，我們無法在其他地方進行測試。在某些情況下，這是因為貸款超過 500 萬美元。在某些情況下，因為藉款人只佔用不到 50% 的房地產。所以程序中有些變幻莫測。但這是一筆完整的常規貸款。沒有政府保證。

And as of June 30, the balance of loans originated under this program, $84.2 million. In January of 2022, we did our first securitization, DBRS rated it. We're very excited about that transaction, which we'll talk about in the next couple of slides.

截至 6 月 30 日，該計劃下的貸款餘額為 8420 萬美元。 2022 年 1 月，我們進行了首次證券化，DBRS 對其進行了評級。我們對這筆交易感到非常興奮，我們將在接下來的幾張幻燈片中討論。

On Slide #33, we're saying we're currently negotiating additional JV agreements. We anticipate in getting final signatures this week with an institutional investor joint venture partner for $100 million of equity capital. We believe we can fund up to $200 million of nonconforming loans in 2022.

在幻燈片 #33 上，我們說我們目前正在談判額外的合資協議。我們預計本週將與一家機構投資者合資夥伴獲得 1 億美元股權資本的最終簽名。我們相信，到 2022 年，我們可以為高達 2 億美元的不合格貸款提供資金。

And on a going forward basis, as we go to Slide #34, the benefits of the nonconforming conventional loan program to Newtek and its enterprise. Additional origination fees, additional servicing income. We typically service for 100 basis points on the full balance of the loan. These loans are hedged. The asset liability match them in the warehouse facility. They give us great operating leverage in the pipeline because loans that don't fit 7(a), 504, ABL could fit this particular area. And this gives us diversified income streams and really allows us to leverage our existing origination platform. In the bank forecast, we think we'll do close to $400 million to $600 million of loans in 2023 and between $600 million and $1 billion loans in 2024.

在接下來的基礎上，當我們轉到幻燈片 #34 時，不合格的傳統貸款計劃對 Newtek 及其企業的好處。額外的發起費用，額外的服務收入。我們通常為貸款的全部餘額提供 100 個基點的服務。這些貸款是對沖的。資產負債與倉庫設施中的它們相匹配。它們為我們提供了巨大的運營槓桿，因為不適合 7(a)、504、ABL 的貸款可能適合這個特定領域。這為我們提供了多元化的收入來源，並真正讓我們能夠利用我們現有的發起平台。在銀行預測中，我們認為我們將在 2023 年提供近 4 億至 6 億美元的貸款，並在 2024 年提供 6 億至 10 億美元的貸款。

NCL securitization, Slide #35. We did our securitization in January 2028. It was a $56.3 million Class A notes. The securitization, which is modeled on [Newtek's] -- NCL Business Loan Trust 2022. Notes were rated single A by Morningstar. The weighted average gross coupon approximately 8.2% to 8.4%. The weighted average net coupon that went into the joint venture is 7.4%. That's important to note that the bond, the single A bond had approximately a 3.2% coupon.

NCL 證券化，幻燈片 #35。我們在 2028 年 1 月進行了證券化。這是一張價值 5630 萬美元的 A 類票據。證券化以 [Newtek 的] -- NCL Business Loan Trust 2022 為藍本。票據被晨星評為 A 級。加權平均總票面利率約為 8.2% 至 8.4%。進入合資企業的加權平均淨息票率為 7.4%。重要的是要注意債券，單一A債券的票面利率約為3.2%。

The point here is that the net interest margin for the joint venture partners, us and our other equity partner is north of 4%. We basically invested 37% equity capital. So here is the important aspect when you take a look at this. We've got very attractive returns on equity for Newtek and its JV partners in a double-digit net of cumulative expected default severity and frequency. And for Newtek, as the originator of the loans through Newtek Business Lending, we're able to get servicing income of 100 basis points in the whole size of the portfolio and origination fees.

這裡的重點是，合資夥伴、我們和我們的其他股權夥伴的淨息差超過 4%。我們基本上投資了37%的股本。因此，當您查看此內容時，這是重要的方面。我們為 Newtek 及其合資夥伴獲得了非常有吸引力的股本回報率，累計預期違約嚴重程度和頻率達到兩位數。對於 Newtek，作為通過 Newtek Business Lending 提供貸款的發起人，我們能夠在整個投資組合規模和發起費用中獲得 100 個基點的服務收入。

We're excited about this business. This gives us another engine, and we believe that this is going to be very beneficial to us going forward. And we expect to complete the bank acquisition, the bank holding company transaction. And even as a BDC, we've experienced some nice income benefits from this. So we plan on levering our operational infrastructure, track record and securitization expertise to grow our nonconforming conventional loan portfolio, while continuing to remain focused on growing our 7(a) and 504 loan programs.

我們對這項業務感到興奮。這為我們提供了另一個引擎，我們相信這將對我們的前進非常有益。並且我們期望完成銀行收購，銀行控股公司交易。即使作為 BDC，我們也從中獲得了一些不錯的收入收益。因此，我們計劃利用我們的運營基礎設施、跟踪記錄和證券化專業知識來發展我們不合格的傳統貸款組合，同時繼續專注於發展我們的 7(a) 和 504 貸款計劃。

Moving forward on Slide #36, one of our important businesses, Newtek Merchant Solutions. We had a combined equity fair value of $120 million as of June 30. From a comparative standpoint, many of you are aware that a company EVO, a publicly-traded company, which is acquired by Global, I believe the multiple is about 18x EBITDA, very attractive. We believe we have our business conservatively marked, and we feel good about that valuation. This is an important business to us, particularly as we become and anticipate and hope to become a bank holding company.

在幻燈片 #36 上繼續前進，這是我們的重要業務之一，Newtek Merchant Solutions。截至 6 月 30 日，我們的合併股權公允價值為 1.2 億美元。從比較的角度來看，你們中的許多人都知道 EVO 公司，一家上市公司，被 Global 收購，我相信倍數約為 18 倍 EBITDA ， 非常有吸引力。我們相信我們的業務是保守的，我們對該估值感覺良好。這對我們來說是一項重要的業務，尤其是當我們成為並預期並希望成為一家銀行控股公司時。

Slide #37, Newtek Technology Solutions, our cloud computing technology service provider, providing all types of technology solutions and advantages to our independent customer base. This has been a difficult first half for us. Supply chain issues materially affected results for the first 6 months. We expect the run rate to improve in the second half of the year. So we've reduced our forecast to $4.2 million of EBITDA for the full calendar year, but we do expect a run rate for the second half to get bumped up to about $3 million of EBITDA. We are very excited, obviously, about cloud solutions and cloud services. You could take a look at some of our products on Slide #38, which shows what we can provide into the marketplace through Newtek Technology Solutions.

Slide #37，Newtek Technology Solutions，我們的雲計算技術服務提供商，為我們的獨立客戶群提供各類技術解決方案和優勢。這對我們來說是艱難的上半場。供應鏈問題嚴重影響了前 6 個月的業績。我們預計下半年的開工率會有所改善。因此，我們將整個日曆年的 EBITDA 預測下調至 420 萬美元，但我們確實預計下半年的運行率將提高到約 300 萬美元的 EBITDA。顯然，我們對雲解決方案和雲服務感到非常興奮。您可以在幻燈片 #38 上查看我們的一些產品，該幻燈片展示了我們可以通過 Newtek Technology Solutions 向市場提供什麼。

Slide #39. Many of you are aware, we own a POS provider solution. We're excited about POS on cloud. We have a 51% interest in that particular entity, extremely competitive to Square, Clover and other systems in the marketplace. It's an all-encompassing payment system that can be white labeled for our partners that can process payments, integrate with e-com, integrate with food delivery services, integrate with GL accounting software like Xero, Square, Sage, integrates into our own payroll solution. So we're able to do payroll directly from the time of the attendance function and the POS. We look forward to growing POS on Cloud.

幻燈片 #39。你們中的許多人都知道，我們擁有一個 POS 提供商解決方案。我們對雲上的 POS 感到興奮。我們對該特定實體擁有 51% 的權益，與 Square、Clover 和市場上的其他系統相比極具競爭力。這是一個包羅萬象的支付系統，可以為我們的合作夥伴貼上白標，可以處理支付，與電子商務集成，與食品配送服務集成，與 Xero、Square、Sage 等 GL 會計軟件集成，集成到我們自己的工資單解決方案中.因此，我們可以直接從考勤功能和 POS 的時間進行工資核算。我們期待在雲上發展 POS。

Slide #40, we talk about our Payroll and Benefits business and our Insurance Agency. We are excited that both payroll, benefits and insurance estimate profitability in 2022. These will be consolidating entities and we'll be giving more disclosure on these businesses going forward. We've carried these businesses for a long period of time, and we're fairly confident with their position in the Dashboard and being able to margin pool that these businesses will begin to grow at the rates of success that we've had in lending, payments and tech solutions going forward.

幻燈片 #40，我們談論我們的工資和福利業務以及我們的保險代理。我們很高興工資、福利和保險都估計到 2022 年的盈利能力。這些將是合併實體，我們將在未來對這些業務進行更多披露。我們已經經營這些業務很長一段時間了，我們對他們在儀表板中的地位以及能夠保證金池充滿信心，這些業務將開始以我們在貸款方面的成功率增長、支付和技術解決方案。

So to conclude on Slide #41 with respect to a primary discussion on our performance for Q2, we're very excited about the numbers we've been able to deliver, and we are hopeful and anticipate that we're going to receive regulatory approval during the third quarter of calendar year '22 from the Fed and the OCC and close our transaction shortly thereafter.

因此，在幻燈片 #41 上結束關於我們第二季度業績的初步討論，我們對我們能夠交付的數字感到非常興奮，我們充滿希望並預計我們將獲得監管部門的批准在 22 年日曆年的第三季度，美聯儲和 OCC 並在此後不久關閉我們的交易。

I would now like to -- before I turn the presentation over to Nick quickly go through a presentation that we have in the Investor Relations section of our website, newtekone.com, talking about the update on the pending acquisition of National Bank of New York City. So if you could please go to our website and take a look at that deck. I think this is important because, obviously, I think many of our investors without much forward guidance on us as a BDC, are trying to get some feel for what Newtek will look like as a bank holding company and a bank going forward.

我現在想 -- 在我將演示文稿交給尼克之前，請快速瀏覽一下我們在我們網站 newtekone.com 的投資者關係部分的演示文稿，討論即將收購紐約國家銀行的最新情況城市。因此，如果您可以，請訪問我們的網站並查看該套牌。我認為這很重要，因為很明顯，我認為我們的許多投資者對我們作為 BDC 沒有太多的前瞻性指導，他們正試圖了解 Newtek 作為銀行控股公司和銀行未來的樣子。

Once again, I want to report that we've been 1 year into the process, filing -- prefiling applications and in discussions with the Fed for a bank holding company approval on the OCC that are working in tandem to get us approved and that we're pretty excited about our future going forward. We feel very strongly this is in the best interest of shareholders. And I want to point out that with respect to information on this particular illustration, dated August 3, 2022, I want to point everyone's attention to Slide #1 in the forward-looking statements and Slide #2, a note regarding projected financial information, important that, that gets digested and that these projections and targets are unaudited and presented for illustrative purposes.

再一次，我想報告說，我們已經進行了 1 年的流程，提交 - 預提交申請並與美聯儲討論銀行控股公司在 OCC 上的批准，這些正在協同工作以使我們獲得批准，並且我們'對我們未來的發展感到非常興奮。我們強烈認為這符合股東的最大利益。我想指出，關於這張日期為 2022 年 8 月 3 日的特定插圖的信息，我想提醒大家注意前瞻性陳述中的幻燈片 #1 和幻燈片 #2，這是關於預計財務信息的說明，重要的是，要消化這些預測和目標，並且這些預測和目標未經審計並出於說明目的而呈現。

On Slide #3, the acquisition of National Bank of New York City. We anticipate being made for $20 million of cash and 1x book. National Bank of New York City located in Flushing, New York has been around and established since the '50s. We certainly appreciate the opportunity to make this acquisition. It's a very clean bank with a clean portfolio, and we believe that the publicly traded company owning National Bank of New York City and merging our lending operations into the bank should really give us very interesting and positive results for the future.

在幻燈片 #3 上，收購紐約市國家銀行。我們預計將獲得 2000 萬美元的現金和 1 本書。位於紐約法拉盛的紐約市國家銀行自上世紀 50 年代以來一直存在並成立。我們當然很高興有機會進行這次收購。這是一家非常乾淨的銀行，擁有乾淨的投資組合，我們相信擁有紐約市國家銀行並將我們的貸款業務合併到銀行的上市公司應該會給我們未來帶來非常有趣和積極的結果。

On Slide #4, you can take a look at an illustration of what the target total asset would be, total asset size for the publicly traded holding company. We think it will come in somewhere around $1.2 billion. And if you take a look at the capitalization rates, obviously, this will be a projected targeted well-capitalized bank holding company, and Newtek Bank in and of itself will start off in a very well-capitalized position.

在幻燈片 #4 上，您可以查看目標總資產的說明，即上市控股公司的總資產規模。我們認為它將達到 12 億美元左右。如果你看一下資本化率，顯然，這將是一家預計目標資本充足的銀行控股公司，而 Newtek 銀行本身將在資本充足的情況下開始。

Slide #5. We wanted to give the market and the audience to feel for the types of return on average assets and return on total common equity that we can get for shareholders. These are not normal numbers that you'd see in a typical traditional $1 billion bank holding company with a smaller bank underneath it. But we'll be able to generate these types of targets because the types of businesses that we've been able to develop over the course of 20 years are attractive, the SBA 7(a) business, the 504 business, the actual businesses that are going to sit up at the holding company that generate reoccurring income that are noncredit related will all be very beneficial and accrue.

幻燈片#5。我們想讓市場和觀眾感受我們可以為股東獲得的平均資產回報率和普通股總回報率的類型。這些不是您在典型的傳統 10 億美元銀行控股公司中看到的正常數字，其下屬一家規模較小的銀行。但我們將能夠產生這些類型的目標，因為我們在 20 年的過程中能夠發展的業務類型很有吸引力，SBA 7(a) 業務、504 業務、實際業務將坐在控股公司中，產生與信貸無關的經常性收入，這將是非常有益的和應計的。

We're targeting an earnings per share in our first full calendar year between $2 and $2.20 and our second full calendar year of 2024, the target earnings per share after tax between $3 and $3.20. We do believe these are attainable based upon the work that we've done. However, this is an illustration. There's a lot of pieces moving around. There's interest rates moving around. There's quality spreads moving around, but we're comfortable being able to put these numbers out and believe that these are reasonable targets.

我們的目標是在第一個完整日曆年和 2024 年第二個完整日曆年的每股收益在 2 美元到 2.20 美元之間，稅後每股目標收益在 3 美元到 3.20 美元之間。我們相信這些都是可以實現的，基於我們所做的工作。然而，這是一個例證。有很多碎片在移動。利率在波動。有質量差在四處移動，但我們很高興能夠把這些數字公佈出來，並相信這些是合理的目標。

On Slide #6, you could take a look at the revenue breakdown. And the purpose of this particular slide is to demonstrate we're a unique bank. There aren't too many banks that have the assets of a payment processor, tech solutions company, payroll company, insurance agency sitting up in a bank holding company. And you could see you got a real nice diversification of income stream from bank lending as well as opportunities that are coming in from the portfolio of companies that are going to be held at the bank holding company.

在幻燈片 #6 上，您可以查看收入明細。這張特殊幻燈片的目的是證明我們是一家獨特的銀行。擁有支付處理器、技術解決方案公司、薪資公司、保險公司等資產的銀行並不多見。你可以看到你從銀行貸款中獲得了非常好的收入來源多樣化，以及來自將在銀行控股公司持有的公司投資組合的機會。

At Slide #7, we go back to our Newtek Advantage and the Dashboard. The one dashboard, you're only going to -- your business will ever need that we provide you with relationships. Look at those relationships, 6 or 7 relationships. You get a relationship manager, insurance agent, payment specialist, loan specialist. These are all people, you can click on, get them on camera. You get analytics. You get analytics and payment processing. You will get analytics and web traffic information, stuff you don't get at your typical bank.

在幻燈片 #7 中，我們回到了 Newtek Advantage 和儀表板。一個儀表板，您只需要 - 您的業務將永遠需要我們為您提供關係。看看那些關係，6或7個關係。你會得到一個客戶關係經理、保險代理人、支付專家、貸款專家。這些都是人，你可以點擊，讓他們上鏡頭。你得到分析。你得到分析和支付處理。您將獲得分析和網絡流量信息，這些是您在典型銀行無法獲得的信息。

We're very excited about delivering the Newtek Advantage. We have partners that are interested in working with us, and we look forward to further developing and rolling it out. Important to note, all the things we have here, they exist. Most of these things, we've been in operation for over 10 years. Now these units are being pushed up into our dashboard and delivered to customers with a single sign-on, one interface, giving our clients the ability to see all the things that we can do for them in the area of relationships, analytics and transaction capability.

我們對提供 Newtek Advantage 感到非常興奮。我們有有興趣與我們合作的合作夥伴，我們期待進一步開發和推廣。重要的是要注意，我們在這裡擁有的所有東西，它們都存在。大多數這些事情，我們已經運營了 10 多年。現在，這些單元被推送到我們的儀表板中，並通過單點登錄、一個界面交付給客戶，使我們的客戶能夠看到我們在關係、分析和交易能力方面可以為他們做的所有事情.

On Slide #8, we talk about our staffing. We're very well positioned and situated to grow this business. You could see some of the talented people that currently exist on the payroll. It's a part of our budget going forward. I've had people say, well, you don't know what it's like running a bank and you don't -- you're not fully staffed, and you don't know what the costs are. I don't think that's a good bet to make. We know what it's like to be staffed. We know what the costs are. We have great people.

在幻燈片 #8 上，我們談論了我們的人員配備。我們處於非常有利的位置，可以發展這項業務。您可以看到目前存在於工資單上的一些有才華的人。這是我們未來預算的一部分。我曾經有人說，你不知道經營一家銀行是什麼感覺，你也不知道——你沒有配備齊全的員工，你不知道成本是多少。我不認為這是一個好的賭注。我們知道配備人員是什麼感覺。我們知道成本是多少。我們有很棒的人。

If you look at Slide #8 or 9 that are very experienced in the banking environment. We've got top shelf advisers between our legal firm, people that have helped us with their application, investment banking relationships. If you go back and you look at our historic returns over the long term, not a good bet to bet against Newtek. We do appreciate our loyal investors that have stuck with us, particularly through the recent times in this transition. We're excited about our future.

如果您查看在銀行環境中非常有經驗的幻燈片 #8 或 9。我們的律師事務所、幫助我們處理申請的人、投資銀行關係之間都有頂級顧問。如果您回過頭來看看我們長期的歷史回報，那麼押注 Newtek 並不是一個好賭注。我們非常感謝一直支持我們的忠實投資者，尤其是在最近的這一過渡時期。我們對我們的未來感到興奮。

It's also important to note as we go to Slide #10, management interests are aligned with shareholders. Really important to note this management team and Board, we love dividends, and we love the time being a BDC. However, things change. Markets change. This is the best structure for us going forward. We're really excited about. And we've historically been able to outperform the Russell and the S&P, and our earnings have really been strong even in the first 6 months of the year.

當我們轉到幻燈片 #10 時，還需要注意的是，管理層的利益與股東保持一致。注意到這個管理團隊和董事會真的很重要，我們喜歡股息，我們喜歡成為 BDC 的時間。然而，事情發生了變化。市場變化。這是我們前進的最佳結構。我們真的很興奮。從歷史上看，我們一直能夠跑贏羅素指數和標準普爾指數，即使在今年的前 6 個月，我們的收益也確實很強勁。

So with that said, I'd like to now transition the remaining portion of this call to Nick Leger, our Chief Accounting Officer. Nick, take it away.

話雖如此，我現在想將本次電話會議的剩餘部分移交給我們的首席會計官尼克萊格。尼克，把它拿走。

Thank you, Barry, and good morning, everyone. You can find a summary of our second quarter 2022 results on Slide #43 as well as a reconciliation of our adjusted net investment income or adjusted NII on Slide #45. For the second quarter of 2022, we had a net investment loss of $2.25 million or a loss of $0.09 per share as compared to a net investment income of $15.5 million or $0.69 per share in the second quarter of 2021. Please note that the income related to the PPP of $25.5 million is included in the second quarter 2021 investment income. Adjusted NII, which is defined on Slide #44, was $18.1 million or $0.75 per share in the second quarter of 2022 as compared to $27 million or $1.20 per share for the second quarter of 2021.

謝謝你，巴里，大家早上好。您可以在幻燈片 #43 上找到我們 2022 年第二季度業績的摘要，以及在幻燈片 #45 上調整調整後的淨投資收入或調整後的 NII 的對賬。 2022 年第二季度，我們的淨投資虧損為 225 萬美元或每股虧損 0.09 美元，而 2021 年第二季度的淨投資收益為 1550 萬美元或每股 0.69 美元。請注意，與2550 萬美元的購買力平價計入 2021 年第二季度的投資收益。調整後的 NII 在幻燈片 #44 中定義，2022 年第二季度為 1810 萬美元或每股 0.75 美元，而 2021 年第二季度為 2700 萬美元或每股 1.20 美元。

Focusing on second quarter 2022 highlights. We recognized $19.2 million in total investment income, a 47.6% decrease over the second quarter of 2021, total investment income of $36.6 million. The primary driver for the decrease of total investment income was primarily due to the $25.5 million in fees from the PPP in 2021. Dividends from portfolio companies of $5 million in Q2 2022 helped offset the decrease of the PPP fees. In addition, interest income increased by $1.8 million, resulting from a year-over-year increase in the accrual loan portfolio. Other income increased by $1.1 million in the second quarter of 2022 compared to Q2 of 2021, resulting mainly from a year-over-year increase in SBA 7(a) loan origination volume.

專注於 2022 年第二季度的亮點。我們確認了 1920 萬美元的總投資收入，比 2021 年第二季度下降了 47.6%，總投資收入為 3660 萬美元。總投資收入減少的主要原因是 2021 年 PPP 的費用為 2550 萬美元。2022 年第二季度投資組合公司的 500 萬美元股息有助於抵消 PPP 費用的減少。此外，由於應計貸款組合的同比增長，利息收入增加了 180 萬美元。與 2021 年第二季度相比，2022 年第二季度的其他收入增加了 110 萬美元，主要是由於 SBA 7(a) 貸款發放量同比增長。

Servicing income increased by 14.4% to $3.2 million in the second quarter of 2022 versus $2.8 million in the same quarter of 2021. Dividends from portfolio companies for the second quarter 2022 totaled $5 million, which included $3.1 million from NMS, $1.35 million from NBL, our 504 business, $360,000 from NCL, our conventional loan joint venture and $150,000 for mobile money compared to the second quarter of 2021, there were no distributions from portfolio companies. Total expenses for the second quarter of 2022 increased slightly by $400,000 compared to Q2 2021, mainly driven by higher interest-related costs.

2022 年第二季度的服務收入增長 14.4% 至 320 萬美元，而 2021 年同期為 280 萬美元。2022 年第二季度投資組合公司的股息總額為 500 萬美元，其中包括來自 NMS 的 310 萬美元、來自 NBL 的 135 萬美元、與 2021 年第二季度相比，我們的 504 業務、來自 NCL 的 360,000 美元、我們的傳統貸款合資企業和 150,000 美元的移動貨幣，沒有來自投資組合公司的分配。與 2021 年第二季度相比，2022 年第二季度的總費用略微增加了 400,000 美元，主要是由於與利息相關的成本增加。

Realized gains recognized from the sale of the guaranteed portions of SBA loans sold during the second quarter totaled $21.3 million as compared to $14.1 million during the same quarter in 2021. In the second quarter of 2022, NSBF sold 338 loans for $190.3 million at an average premium of 9.2% as compared to 142 loans sold during the second quarter of 2021 for $87.4 million at an average premium of 14%. The increase in realized gains was attributed to higher SBA 7(a) loan origination volume in the second quarter of 2022 when comparing to the second quarter of 2021.

從第二季度出售的 SBA 貸款的擔保部分的出售中確認的已實現收益總計 2130 萬美元，而 2021 年同一季度為 1410 萬美元。在 2022 年第二季度，NSBF 以平均 1.903 億美元的價格出售了 338 筆貸款與 2021 年第二季度以 8740 萬美元的平均溢價 14% 出售的 142 筆貸款相比，溢價為 9.2%。與 2021 年第二季度相比，已實現收益的增加歸因於 2022 年第二季度 SBA 7(a) 貸款發放量增加。

As I mentioned earlier, income related to the PPP is included in investment income, not in realized gains. Realized losses on SBA non-affiliate investments for the second quarter of '22 was $1.4 million as compared to $2.7 million in the second quarter of 2021. Overall, our operating results for the second quarter 2022 resulted in a net increase to net assets of $13.5 million or $0.56 per share, and we ended the quarter with NAV per share of $16.31.

正如我之前提到的，與 PPP 相關的收入包含在投資收入中，而不是已實現收益中。 22 年第二季度 SBA 非附屬投資的已實現虧損為 140 萬美元，而 2021 年第二季度為 270 萬美元。總體而言，我們 2022 年第二季度的經營業績導致淨資產淨增 13.5 美元百萬美元或每股 0.56 美元，本季度末每股資產淨值為 16.31 美元。

I would now like to turn the call back to Barry.

我現在想把電話轉回給巴里。

Thank you, Nick. Operator, let's open it up to Q&A.

謝謝你，尼克。接線員，讓我們打開它進行問答。

(Operator Instructions) Your first question comes from the line of Paul Johnson from KBW.

（操作員說明）您的第一個問題來自 KBW 的 Paul Johnson。

You mentioned a lot of names there earlier. Anyway, I was hoping -- I don't know if there's any way to quantify potentially the impact just kind of quarter-over-quarter, either what earnings would have been this quarter or potentially what kind of the benefit would be next quarter just from the increase in the prime rate during the second quarter?

你之前提到了很多名字。無論如何，我希望——我不知道是否有任何方法可以量化潛在的影響，只是季度環比，無論是本季度的收益是多少，還是下個季度可能有什麼樣的收益來自第二季度最優惠利率的上漲？

Yes. So Paul, it's a tough one because that would require us to sort of forecast what the bond price is going to be and the capital markets are going to do with respect to pricing. So I do think with respect to the roll forward, you're probably going to get a lag on that coupon. So you kind of have a partial adjustment between the 2 recent rate hikes. But the full adjustment of, for example, the 0.75 point that we just had in prime, this is the second 3 quarters. That's a fourth quarter event with respect to, I'll call it rose coupon of the portfolio. But you could see that we're getting short-term movements in the expense, but not the full benefit of the portfolio.

是的。所以保羅，這是一個艱難的過程，因為這需要我們預測債券價格將是多少，以及資本市場將在定價方面做什麼。因此，我確實認為就前滾而言，您可能會在該優惠券上滯後。因此，您在最近的兩次加息之間進行了部分調整。但全面調整，例如我們剛剛在全盛時期得到的 0.75 點，這是第二個 3 個季度。這是關於第四季度的事件，我稱之為投資組合的玫瑰券。但是您可以看到，我們的費用出現了短期變動，但投資組合的全部收益卻沒有。

With respect to gain on sale, with our portfolio mix, I don't believe we've ever had a gain on sale that's been lower than the number we had in the second quarter, going back over 7 years. You could actually see that in the chart. Is it fair for me to say, gee, I think that will be the floor. I can't say that, although I'm optimistic that we should do better from that number. Hopefully, that's somewhat helpful.

關於銷售收益，通過我們的投資組合，我認為我們的銷售收益從未低於我們在第二季度的數字，這可以追溯到 7 年多。您實際上可以在圖表中看到這一點。我這樣說公平嗎，哎呀，我認為這將是地板。我不能這麼說，儘管我樂觀地認為我們應該從這個數字上做得更好。希望這有點幫助。

Yes. That's very helpful. And I understand it's a difficult question to answer. So I appreciate that. My next question is just kind of around I guess how you look at sort of a risk as you're underwriting the portfolio in a given quarter. Is there any point during the cycle where you would begin to shift your origination strategy to focus on potentially like a higher-quality subset of the 7(a) market such as a point in time like today, where risks are obviously increasing, recession or no recession, it seems to be a fairly telegraphed slowdown just primarily due to the quantitative tightening that's ongoing. So I'm just curious how you evaluate credit quality in this business risk in an environment like this.

是的。這很有幫助。我知道這是一個很難回答的問題。所以我很感激。我的下一個問題是，我猜你在給定季度承保投資組合時如何看待某種風險。在周期中的任何時刻，您是否會開始將您的發起策略轉移到可能像 7(a) 市場中更高質量的子集上，例如像今天這樣風險明顯增加、經濟衰退或沒有衰退，這似乎是一個相當明顯的放緩，主要是由於正在進行的量化緊縮。所以我只是好奇你如何在這樣的環境中評估這種商業風險中的信用質量。

So I think that one way to evaluate it is -- and I think this is important to note. There are businesses that have adjusted and adapted to the changing environment to where they've actually -- they're in a better spot post-pandemic than they were pre-pandemic. They really looked at their business and they analyzed it. So part of it is to -- in conversations with the client, ask them in the underwriting process, what have they done to adjust prospectively to rising rates going forward? How liquid are they? What do they plan on doing with respect to cost of labor and running their business? Do they see those pressures?

所以我認為評估它的一種方法是——我認為這很重要。有些企業已經根據實際情況調整併適應了不斷變化的環境——與大流行前相比，它們在大流行後處於更好的位置。他們真正審視了他們的業務並對其進行了分析。因此，其中一部分是 - 在與客戶的對話中，在承保過程中詢問他們，他們做了哪些調整以適應未來的利率上升？它們的流動性如何？他們計劃在勞動力成本和經營業務方面做什麼？他們看到這些壓力了嗎？

But also, it's very important that if you're anticipating a downturn in revenues, does the business have enough liquidity to be able to weather 12 to 24 months of any kind of a reduction in revenue. How are they able to reduce expenses to be able to maintain their cash flows and service their debt? The good news with respect to our business model is, we're seeing tremendous amounts of opportunity to be able to pick through the best credits. There's certain markets and industries we're more sensitive to, particularly what I'll call leisure, retail, hospitality, where the cost of labor is difficult, hiring is difficult and it's affecting numbers.

但同樣重要的是，如果您預計收入會下降，那麼企業是否有足夠的流動性來承受 12 到 24 個月的任何形式的收入減少。他們如何能夠減少開支以維持現金流和償還債務？關於我們的商業模式的好消息是，我們看到了大量的機會來挑選最好的信用。我們對某些市場和行業更敏感，特別是我所說的休閒、零售、酒店業，這些行業的勞動力成本高，招聘難，而且影響人數。

You also want to be really, really careful in looking at the 2021 history or recent quarters where you kind of had a little bit of a Goldilocks environment that might change, particularly if demand changes. So we've been very pleased that our underwriting has, I'll call it, tightened. We're doing smaller loans. We're getting more diversification, which we're big fans of because that is clearly a risk reducer. Diversification across units, geography and industry. You want to be careful in particular industries like transportation that are -- or energy costs or energy shortages could be really problematic and disruptive, particularly with supply chain issues. You just need to be a lot more thoughtful when you go through the underwriting process for approval.

您還想非常非常小心地查看 2021 年的歷史或最近幾個季度，在這些情況下，您可能會遇到一些可能會發生變化的金發姑娘環境，尤其是在需求發生變化的情況下。因此，我們很高興我們的承銷，我會稱之為，收緊。我們正在做小額貸款。我們正在變得更加多元化，我們非常喜歡這種多元化，因為這顯然可以降低風險。跨單位、地域和行業的多樣化。在運輸等特定行業中，您要小心——或者能源成本或能源短缺可能真的是有問題和破壞性的，尤其是在供應鏈問題方面。當您通過承保流程以獲得批准時，您只需要更加深思熟慮。

Yes, that makes sense. And that's a great answer, great color there. Appreciate that. Last few questions. I'm assuming just as we're probably in the final quarters here as a BDC, we can expect you're pretty much expecting to be paying out 100% of NII at this point. So just want to make sure I'm looking at the dividend forecast $1 to $1.50 for second half of this year. I think that should be a fairly good approximation of what you expect for earnings in the second half?

是的，這是有道理的。這是一個很好的答案，那裡的顏色很好。感謝。最後幾個問題。我假設就像我們可能在 BDC 的最後幾個季度一樣，我們可以預期您現在非常期望支付 100% 的 NII。因此，只想確保我正在查看今年下半年 1 至 1.50 美元的股息預測。我認為這應該是您對下半年收益預期的一個相當不錯的近似值？

Yes. I think that -- well, we will be pretty close to the top end. I mean, at this point, it does not pay to retain because you've ultimately got to pay. You have to pay it out when you withdraw the election. So I think that the very wide range that you show on dividends will be pretty close to what I'll call the full payout.

是的。我認為——嗯，我們將非常接近高端。我的意思是，在這一點上，保留是不值得的，因為你最終必須付出代價。當您撤回選舉時，您必須支付這筆費用。所以我認為你在股息上顯示的非常廣泛的範圍將非常接近我所說的全額支付。

Got it. Got it. My last question, kind of just has to do with the bank, and I'm not sure if you're able to -- how much you're able to answer at this point. But I'm just curious around the sort of the legacy SBA portfolio. I guess your current SBA portfolio today, which will reside outside the bank. And just going forward, will that portfolio -- I mean, as that sort of runs off, how do you sort of intend to use the proceeds from that? Do you kind of expect to use that to just drop down funding, I guess, into bank? Or is that kind of something that will sit sort of on the parent company balance sheets on JVs and other investments? Just curious about what the expectations are for that as that continues to wind down over the years.

知道了。知道了。我的最後一個問題，與銀行有關，我不確定你是否能夠——此時你能回答多少。但我只是對遺留的 SBA 投資組合感到好奇。我猜你今天的 SBA 投資組合將駐留在銀行之外。就向前看，那個投資組合 - 我的意思是，隨著那種情況的流失，你打算如何使用從中獲得的收益？我猜你是不是希望用它來將資金投入銀行？還是這種東西會出現在母公司的合資企業和其他投資資產負債表上？只是好奇人們對此的期望是什麼，因為這些年來這種情況繼續減弱。

Sure. So I think what's been difficult, I think, for us to get across to the investment community is we've historically had to fund SBA 7(a) growth and 504 loan growth by selling $1 of stock which reduces your EPS because you're increasing your share count (technical difficulty) unsecured secured probably 5 or 6. Those businesses can be fund almost 100% out of the bank with retail deposits. That's -- even though you're paying tax, it's immeasurably beneficial, immeasurably. And that activity should be in the bank. Now the legacy portfolio, as we have said previously, Newtek Small Business Finance, the licensed nonbank lender. That is designed, and we're still waiting for, obviously, final approval and everything, but we believe based upon conversations to sit up at the bank holding company in a runoff mode.

當然。因此，我認為，對於我們來說，要與投資界交流的困難在於，我們歷來必須通過出售 1 美元的股票來為 SBA 7(a) 增長和 504 貸款增長提供資金，這會降低你的每股收益，因為你是增加您的股票數量（技術難度） 無擔保 可能有 5 或 6 個。這些企業幾乎可以 100% 從銀行獲得零售存款的資金。那是——即使你正在納稅，它也是不可估量的，不可估量的。那個活動應該在銀行里。正如我們之前所說，現在是傳統的投資組合，Newtek Small Business Finance，一家有執照的非銀行貸方。這是設計好的，顯然，我們仍在等待最終批准和一切，但我們相信根據對話，以決勝模式坐在銀行控股公司。

So those loans are in securitizations. Those will run down. So the new business will be in the bank. The other business will be up at the bank holding company in a runoff mode, and that we believe also will be attractive because we'll be able to ultimately harvest the equity that's sitting in that particular relationship over time. So we do think that primarily using core deposits versus securitization and other interim funding amounts will be immeasurably beneficial. We still will be utilizing securitization at the bank holding company and may actually do securitizations out of the bank from time to time from a diversification standpoint.

所以這些貸款是證券化的。那些會跑下來的。所以新業務將在銀行。銀行控股公司的另一項業務將以徑流模式出現，我們相信這也將具有吸引力，因為隨著時間的推移，我們將能夠最終獲得該特定關係中的股權。因此，我們確實認為，主要使用核心存款而不是證券化和其他臨時資金數額將是不可估量的有益的。我們仍將在銀行控股公司使用證券化，從多元化的角度來看，實際上可能會不時在銀行外進行證券化。

(Operator Instructions) And we have our next question from the line of Adam Morton of RBC.

（操作員說明）我們的下一個問題來自 RBC 的 Adam Morton。

Congrats on the quarter. Just kind of looking forward as we're in this new paradigm, I guess, with the Fed, what do you think is -- if you could just talk about unlocking value as a bank for owning a bank for shareholders. How does that -- if you could kind of just summarize some of the points on what that might look like?

祝賀本季度。只是有點期待，因為我們處於這種新的範式中，我想，對於美聯儲，你認為是什麼——如果你可以談論為股東擁有銀行而釋放作為銀行的價值。那是怎麼回事——如果你可以總結一下它可能是什麼樣子的一些觀點？

Sure. Adam, I appreciate the question because today, Newtek has primarily 5 lines of business that they do operate primarily independently from each other. And by being able to get our client base to focus on the fact that we do all these things without having to have human activity, talk about them or coordinate them to be able to message them. So the Newtek Advantage or the Dashboard is going to be illuminating to our customer base. The Dashboard or the Newtek advantage is going to be right there as we open up their depository account as we're able to margin pool.

當然。亞當，我很欣賞這個問題，因為今天，Newtek 主要有 5 條業務線，它們主要彼此獨立運營。通過能夠讓我們的客戶群專注於我們做所有這些事情而不必進行人工活動、談論它們或協調它們以便能夠向它們發送消息這一事實。因此，Newtek Advantage 或 Dashboard 將照亮我們的客戶群。當我們打開他們的存款賬戶時，儀表板或 Newtek 的優勢將就在那裡，因為我們能夠進行保證金池。

Look, my payment processing clients today, they have their deposit elsewhere, my payroll accounts, they have the deposits elsewhere. The ability to margin pool and give breaks on web hosting, terminals, hosting plans, payroll -- these things are going to be very beneficial to the client and the analytical tools that they're going to get. So they're going to get a lot of things in one place that they typically go to 2, 3, 4, 5 times a week, 12 times a month to be able to see it in front of them.

看，我今天的付款處理客戶，他們的存款在別處，我的工資賬戶，他們在別處的存款。在網絡託管、終端、託管計劃、工資單上進行保證金池和休息的能力——這些東西將對客戶和他們將獲得的分析工具非常有益。所以他們會在一個地方得到很多東西，他們通常每週去 2、3、4、5 次，每月 12 次，以便能夠在他們面前看到它。

In addition, when they compare what we do versus their current depository, it's night and day. The depositories don't give the customers anything. They take their money and maybe we'll make them alone. With us, they're going to get analytical tools to run their business. Futuristically, we believe that we'll be able to integrate most of these things into 1 GL. We currently have GL integrations today that we'll be able to illuminate. They're going to realize that they've got a full team of professional solution providers, where they don't get that today, whether it's the top 4 banks or the several thousand community banks or the super regionals.

此外，當他們將我們所做的與他們目前的存款進行比較時，這是白天和黑夜。存款人不給客戶任何東西。他們拿走了他們的錢，也許我們會讓他們獨自一人。有了我們，他們將獲得分析工具來開展業務。未來，我們相信我們將能夠將大部分這些東西集成到 1 GL 中。我們今天有 GL 集成，我們將能夠闡明。他們將意識到，他們擁有完整的專業解決方案提供商團隊，而今天他們沒有做到這一點，無論是排名前 4 位的銀行、數千家社區銀行還是超級區域銀行。

So in addition to that, we currently have got existing financial institutions that have said, "Gee, we want your dashboard, would you white label it for us?" So we become the back end bureau. So I could take a small community bank that can't afford to do all of these services, and I can put them in business overnight. And I can provide payroll to their clients. I can provide payments to their clients. I can provide insurance to their clients, all under their brand. And unlocking that value from a software and technological perspective, in addition to being a great product tool, we think will bring great shareholder value.

因此，除此之外，我們目前有現有的金融機構說，“哎呀，我們想要你的儀表板，你能為我們貼上白標嗎？”所以我們成為後端局。所以我可以選擇一家無力承擔所有這些服務的小型社區銀行，我可以讓它們在一夜之間開展業務。我可以為他們的客戶提供工資單。我可以向他們的客戶付款。我可以為他們的客戶提供保險，所有這些都是他們的品牌。從軟件和技術的角度釋放這種價值，除了成為一個偉大的產品工具外，我們認為還會帶來巨大的股東價值。

It will be similar to what I think Live Oak has been able to do with nCino where they've spun out these technologies, but sort of in a very different manner. We'll be very much behind the software. So we bring software, people and process to the customer base. We think that putting these tools that we've developed over 20 years in a banking environment is going to be easier for our clients to see. It's going to be easier for our clients to access, and it's going to be easier for our employees to deliver those solutions to the customer base. So that's -- we talk about unlocking, which is -- it's a simple word with a few syllables to it, but there's a lot more behind it. And that's what we mean by unlocking value.

這將類似於我認為 Live Oak 對 nCino 所做的事情，他們已經分離出這些技術，但以一種非常不同的方式。我們將非常支持該軟件。因此，我們將軟件、人員和流程帶給客戶群。我們認為，將我們 20 多年開發的這些工具應用到銀行環境中，我們的客戶會更容易看到。我們的客戶將更容易訪問，我們的員工將更容易將這些解決方案交付給客戶群。所以這就是——我們談論解鎖，這是一個簡單的詞，有幾個音節，但背後還有很多。這就是我們所說的釋放價值的意思。

And we don't have any more questions. I would now like to turn the conference -- for closing remarks.

我們沒有更多的問題。我現在想把會議轉至閉幕詞。

Well, we know that was a mouthful, and we appreciate getting that in within an hour, and we really appreciate your attendance. We had a lot of people on this call today, bigger numbers than I've ever seen before and very, very thankful to the audience for the questions, to the analysts that joined. We had 2 analysts put out reports on us this morning, and we appreciate the updates. And look forward to our next report and look forward to bringing you further good news from Newtek. Have a great day, everyone. Thank you.

嗯，我們知道這是一口，我們很高興在一個小時內完成，我們非常感謝您的出席。今天我們有很多人參加這次電話會議，人數比我以前見過的還要多，非常非常感謝聽眾提出的問題，感謝加入的分析師。今天早上我們有 2 位分析師發布了關於我們的報告，我們感謝這些更新。並期待我們的下一份報告，並期待為您帶來來自Newtek的更多好消息。祝大家有個美好的一天。謝謝你。

Thank you, presenters. And this concludes today's conference call. Thank you for participating, and you may now disconnect.

謝謝各位主持人。今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。