Newtek Business Services, Inc. Agrees to Service a $56 Million Portfolio of Bank Loans from Valley National Bank -Newtek Total Loan Servicing Portfolio Reaches Approximately $650 Million at June 30, 2013
NEW YORK, July 1, 2013 /PRNewswire/ -- Newtek Business Services, Inc. (NASDAQ: NEWT) (www.thesba.com) The Small Business Authority®, today announced that is has agreed to subservice a $56.4 million portfolio of SBA 7(a) loans for Valley National Bank. The servicing is expected to transfer during the third quarter of 2013.
Newtek originates all of its SBA 7(a) loan business through its licensed non-bank lender, Newtek Small Business Finance, Inc. Valley National Bank, with 210 branches and $16 billion in total assets, chose to contract its loan servicing to Newtek Small Business Finance based on Newtek's qualifications and industry expertise.
Barry Sloane, Chairman, President and Chief Executive Officer of Newtek Business Services said, "We are thrilled about the opportunity to work with this major banking presence in New York and New Jersey, and service a high-quality portfolio of loans. The addition of this $56 million loan portfolio fits well with our current loan servicing portfolio and supports its overall growth. We fully intend to continue to grow our loan servicing portfolio both organically and through subservicing and acquisition opportunities. Loan servicing revenue creates an important recurring income stream for our organization. As such, we expect to increase our total loan servicing portfolio by a minimum of 32.4% over 2012 to at least $700 million by the end of 2013."
About Newtek Business Services, Inc.
Newtek Business Services, Inc., The Small Business Authority®, is a direct distributor of a wide range of business services and financial products to the small- and medium-sized business market under the Newtek® brand. Since 1999, Newtek has helped small- and medium-sized business owners realize their potential by providing them with the essential tools needed to manage and grow their businesses and to compete effectively in today's marketplace. Newtek provides one or more of its services to over 100,000 business accounts and has positioned the Newtek® and The Small Business Authority brands as a one-stop-shop provider of such business services. According to the U.S. Small Business Administration, there are over 27.5 million small businesses in the United States, which in total represent 99.7% of all employer firms.
Newtek Business Services, The Small Business Authority®, provides the following products and services:
- The Newtek Advantage™: A mobile real-time SMB management platform that puts all of a business's critical transactions and economic, eCommerce and web site traffic data on a smartphone, tablet, laptop or PC. The Newtek Advantage™ provides the intelligence that businesses require and will give them the advantage to succeed. This revolutionary platform will allow owners and operators of small- and medium-sized businesses to manage their businesses from their mobile device anywhere, anytime, all without an IT department.
- Electronic Payment Processing: eCommerce, electronic solutions to accept non-cash payments, including credit and debit cards, check conversion, remote deposit capture, ACH processing, and electronic gift and loyalty card programs.
- Web Hosting: Full-service web host which offers eCommerce solutions, shared and dedicated web hosting and related services including domain registration and online shopping cart tools.
- eCommerce: A suite of services that enable small businesses to get up and running on-line quickly and cost effectively, with integrated web design, payment processing and shopping cart services.
- Business Lending: A broad array of lending products.
- Insurance Services: Commercial and personal lines of insurance, including health and employee benefits in all 50 states, working with over 40 insurance carriers.
- Web Services: Customized web design and development services.
- Data Backup, Storage and Retrieval: Fast, secure, off-site data backup, storage and retrieval designed to meet the specific regulatory and compliance needs of any business.
- Accounts Receivable Financing: Receivable purchasing and financing services.
- Payroll: Complete payroll management and processing services.
The Small Business Authority® is a registered trade mark of Newtek Business Services, Inc., and neither are a part of or endorsed by the U.S. Small Business Administration.
Note Regarding Forward-Looking Statements
Statements in this press release including statements regarding Newtek's beliefs, expectations, intentions or strategies for the future, may be "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, intensified competition, operating problems and their impact on revenues and profit margins, anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. Risk factors, cautionary statements and other conditions which could cause Newtek's actual results to differ from management's current expectations are contained in Newtek's filings with the Securities and Exchange Commission and available through http://www.sec.gov.
For more information, please visit www.thesba.com.
Newtek Business Services, Inc.
Chairman and CEO
Newtek Business Services, Inc.
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SOURCE Newtek Business Services, Inc.