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Previous NFL players are supporting athletes prepare for daily life off the discipline.
Wale Ogunleye, a Professional Bowl defensive stop for the duration of a 10-yr career with Miami, Chicago and Houston, sales opportunities UBS World-wide Wealth Management’s athletes and entertainers strategic shopper segment.
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Copeland Bryan, who played 3 seasons in Buffalo and Detroit, and Cameron Lynch, who used 4 seasons with the Rams and Tampa Bay, participated in the NFL Enterprise Progress Plan in partnership with Visa. They took component in the NFL Participant Treatment Foundation’s fourth once-a-year Super Bowl Profession Fair in Los Angeles, and are completing, two-calendar year rotational method across a variety of Visa enterprise lines.
Chicago Bears’ Adewale Ogunleye, accompanied by Danieal Manning (38) and Hunter Hillenmeyer (92), runs just after recovering a Denver Broncos fumble throughout the second quarter of an NFL soccer activity Nov. 25, 2007, in Chicago. Ogunleye, a Professional Bowl defensive stop during a 10-12 months job, qualified prospects UBS Worldwide Wealth Management’s athletes and entertainers strategic customer phase. (AP Photo/Nam Y. Huh, File)
“Remaining a previous athlete, I just recognized that the sector could do a improved career of furnishing steering to our higher web-well worth folks, specifically our athletes, and employing our platform to help with economic decisions,” Ogunleye claimed on the AP Pro Soccer Podcast. “I created a ton of cash that didn’t make me an pro in funds. So, I went back again to university, I educated myself. But, I do come to feel like our advisors at our organization need to have an obligation to instruct as they go, instruct our athletes to understand what their finances are, and make certain that they have a legacy to tumble back on when their participating in days are in excess of.”
Ogunleye made the Professional Bowl in 2003 following registering a vocation-best 15 sacks with the Dolphins. He was traded to Chicago next a agreement dispute and signed a $34 million, 6-yr deal with the Bears.
In his part with UBS, he wants to equip players with information to make sensible selections for their foreseeable future.
“Monetary education, working with our financial advisors, make positive they recognize, that our athletes want to have a legacy,” he claimed. “And then also, last of all, working with our clients by themselves, the athletes on their own and entertainers, building absolutely sure that we get driving them, their philanthropic endeavors, the daily life soon after the phase, immediately after sports activities. Because even if you are a Tom Brady, you even now have the relaxation of your daily life to are living, appropriate? What are you going to do with that? Even if you are an anomaly like myself and performed 11 a long time in the league, I was carried out in my 30s. I’m still pretty younger, so I haven’t retired from everyday living. And I feel that what we’re heading to do at UBS is we’re heading to search at our athletes as businessmen, business gals, business people, being aware of that this is just a modest segment of their lifetime. And at the time all those 15 minutes of fame are up on the on the discipline, we want to make guaranteed that you have a considerably for a longer time, extended life to reside towards having that legacy for you and your relatives, maybe the communities that you have occur from.”
Bryan thought of pursuing his MBA at Harvard, Yale or Stanford in advance of the NFL Gamers Affiliation gave him an prospect to be part of the league’s organization program with Visa. He is completing his rotation on Visa’s Strategic Initiatives and World-wide Know-how Partnerships crew.
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“Considering that coming on, I have had a couple several years finding to do some pretty appealing get the job done,” Bryan reported. “This has been an chance to truly hone the techniques that I had produced form of from a startup and enterprise enhancement consulting planet. I’d always been corporate adjacent, never ever in company. Just finding to see variety of the procedures in a corporate framework, in a large company like Visa that receives to touch like just about every other company in the planet is extremely eye-opening.”
Lynch pressured the value of preparing for a occupation just after retirement. He very last performed with the Buccaneers in 2018 but the 28-year-old was prepared for the future section of his lifestyle at a young age. He began planning in higher education and ongoing in the NFL.
“While I was taking part in, I interned in the offseason. I manufactured guaranteed on my off days I did neighborhood support to make up that resume for when soon after I retired,” he said. “Currently being undrafted, I understood it could occur at any working day. Luckily, I ended up at Visa, Silicon Valley, the place we’re equipped to use my skills from on the field and provide them to the boardroom and also getting my MBA, acquiring that terminology down, heading from just one staff to the other. The playbook is diverse heading from the Rams to the Buccaneers. So going from the industry to the boardroom, the playbook is distinctive. So I acquired my MBA to get knowledge, to get educated and to apply those people capabilities at Visa.”
Former NFL players are supporting athletes prepare for life off the discipline.
Wale Ogunleye, a Pro Bowl defensive finish in the course of a 10-yr job with Miami, Chicago and Houston, qualified prospects UBS World Prosperity Management’s athletes and entertainers strategic client section.
Copeland Bryan, who played 3 seasons in Buffalo and Detroit, and Cameron Lynch, who expended 4 seasons with the Rams and Tampa Bay, participated in the NFL Enterprise Progress Method in partnership with Visa. They took component in the NFL Player Treatment Foundation’s fourth yearly Tremendous Bowl Occupation Truthful in Los Angeles, and are finishing, two-yr rotational plan across a variety of Visa organization lines.
“Being a former athlete, I just recognized that the sector could do a better career of supplying direction to our superior net-worth folks, specially our athletes, and using our system to help with economic decisions,” Ogunleye said on the AP Pro Soccer Podcast. “I produced a ton of revenue that did not make me an professional in revenue. So, I went again to college, I educated myself. But, I do really feel like our advisors at our agency ought to have an obligation to train as they go, teach our athletes to recognize what their funds are, and make confident that they have a legacy to slide back on when their taking part in times are in excess of.”
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Ogunleye built the Pro Bowl in 2003 just after registering a vocation-best 15 sacks with the Dolphins. He was traded to Chicago next a agreement dispute and signed a $34 million, 6-calendar year deal with the Bears.
In his role with UBS, he would like to equip gamers with information to make intelligent decisions for their long term.
“Financial education and learning, working with our economical advisors, make guaranteed they understand, that our athletes require to have a legacy,” he stated. “And then also, and finally, dealing with our purchasers on their own, the athletes on their own and entertainers, building positive that we get guiding them, their philanthropic endeavors, the existence right after the phase, soon after sports. Because even if you are a Tom Brady, you nevertheless have the relaxation of your daily life to dwell, correct? What are you heading to do with that? Even if you are an anomaly like myself and played 11 decades in the league, I was performed in my 30s. I’m however quite youthful, so I have not retired from daily life. And I think that what we’re likely to do at UBS is we’re heading to seem at our athletes as businessmen, business enterprise girls, entrepreneurs, knowing that this is just a tiny phase of their lifetime. And as soon as these 15 minutes of fame are up on the on the discipline, we want to make absolutely sure that you have a a lot for a longer period, for a longer period daily life to reside toward acquiring that legacy for you and your loved ones, maybe the communities that you’ve arrive from.”
Bryan viewed as pursuing his MBA at Harvard, Yale or Stanford just before the NFL Gamers Association gave him an prospect to be part of the league’s enterprise software with Visa. He is finishing his rotation on Visa’s Strategic Initiatives and Worldwide Know-how Partnerships crew.
“Since coming on, I have experienced a handful of decades having to do some pretty exciting work,” Bryan mentioned. “This has been an chance to really hone the techniques that I experienced made kind of from a startup and small business advancement consulting earth. I’d constantly been corporate adjacent, never ever in company. Just obtaining to see form of the procedures in a company framework, in a major company like Visa that receives to touch like each and every other enterprise in the planet is incredibly eye-opening.”
Lynch stressed the worth of preparing for a career immediately after retirement. He very last played with the Buccaneers in 2018 but the 28-yr-outdated was completely ready for the subsequent stage of his lifestyle at a young age. He began planning in college or university and continued in the NFL.
“While I was actively playing, I interned in the offseason. I made positive on my off days I did neighborhood services to make up that resume for when just after I retired,” he stated. “Being undrafted, I realized it could come at any day. Luckily, I ended up at Visa, Silicon Valley, where by we’re in a position to use my capabilities from on the industry and convey them to the boardroom and also receiving my MBA, finding that terminology down, heading from a single crew to the other. The playbook is diverse going from the Rams to the Buccaneers. So likely from the industry to the boardroom, the playbook is unique. So I acquired my MBA to get expertise, to get educated and to use those people abilities at Visa.”
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With universities sending out their admissions selections in March and April, just one component on a lot of families’ minds these times is how they program to finance their kid’s future college education and learning.
Though the huge anticipation revolves all over the college acceptance letter, along with it will be a pretty essential document that can deliver budding faculty mom and dad a lot more steerage on just how a lot the following 4 several years will charge. This document is the money help award letter. This letter outlines how much assist you can expect to be acquiring in the kind of grants, scholarships, perform-analyze or scholar loans.
There is certainly a great likelihood the economical assist offer you isn’t more than enough to send your kid to that precise college, but authorities recommend you can find a way to get more out of it: Pupils and mom and dad can optimize their school support bundle by attractive for added money.
“If [the financial aid package] is a lot more than just unaffordable…then there’s a signal that possibly a little something wasn’t taken into account,” claims larger schooling expert Mark Kantrowitz, creator of “How to Appeal for A lot more Faculty Economical Assist. “[Colleges] do not know about your specific conditions except you explain to them.”
Here’s how to attraction your college or university economic aid supply, plus what you can count on.
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If you might be skeptical that you happen to be getting a monetary assist offer that is much less generous than you predicted, an quick very first action is to glimpse up the typical value of attendance by relatives earnings by way of the Section of Education’s College or university Navigator web page. In this article, you can see no matter whether the money support offer you obtained is comparable to assist gained by people of comparable incomes.
Secondly, since faculties use income and tax information and facts from two decades prior, you must notify the fiscal help workplace of any economic instances that have modified in the earlier two a long time. This could be a occupation loss, a death in the household, a divorce, substantial medical costs or even a normal catastrophe like a hurricane or flood.
Furthermore, if you been given a economic aid package from a faculty that offers out merit aid, you could possibly want to include things like updates on improvements in exam scores or GPAs. Due to the fact quite a few college rankings count on students’ test scores and GPAs, some educational facilities draw in students with major stats by supplying them benefit support. Kantrowitz details out, however, that merit support is frequently not significant, typically a several hundred or thousand dollars.
Dad and mom and college students must make an appeal as soon as they can, Kantrowitz provides. Some schools will have a sort that prospective students will need to fill out to appeal, whilst other colleges may possibly require that learners send out in an appeal letter.
Your attractiveness letter
In order to compose an charm letter, you can expect to have to have documentation or proof of any changes in your family’s financial situation. For example, if a father or mother shed their position, you could provide a receipt of unemployment rewards or a copy of evidence that they applied for unemployment positive aspects, Kantrowitz explains. He also suggests that folks be concise in their letters: Make bullet details for just about every specific circumstance and then supply copies of files that establish that the specific circumstances have transpired.
Two other ideas for producing your appeal letter involve reiterating your exhilaration in attending that college and mentioning any other standout economic help features you’ve gained from a competing college, if that is the case. You could locate that a college or university is inclined to match or even exceed another give.
What you can expect when captivating
Kantrowitz needs you to be aware that various sorts of colleges are considerably less or far more amenable to building changes to financial support packages. For-income schools are the least probably to make changes, whilst in-state community colleges are far more most likely to make alterations, and non-public nonprofit schools with big endowments are the most probable to make adjustments.
And not all sorts of appeals have an equivalent chance of achievement. Appeals produced regarding a modify of money are more probably to be profitable than other forms of appeals, in accordance to Kantrowitz.
The moment school is in session, get your funds off to a strong begin
With an application like Goodbudget, users are expected to manually input each 1 of their transactions using the “envelope method.” This way, they’re held accountable to apply aware spending and can see particularly where their revenue goes each thirty day period.
And for university students looking to help save, regardless of whether it can be for a spring crack journey or a new notebook, Digit connects to your bank account and instantly will save small amounts of funds for you every day. This could be 75 cents, a single greenback, five dollars and anything at all in in between. (You can reveal a highest volume you want Digit to help you save on any provided day.) Digit puts conserving on autopilot, so you you should not have to manually go dollars into a different account.
Bottom line
It is really no magic formula that greater instruction comes with an high priced price tag. That is why tens of millions of American people count on the money aid bundle colleges supply them. Prior to settling for what a university awards your boy or girl together with that college or university admission letter, attraction ASAP to see if there are any other money you can squeeze out. At the end of the working day, any little bit will help.
Editorial Take note: Opinions, analyses, reviews or tips expressed in this posting are those people of the Pick editorial staff’s on your own, and have not been reviewed, accepted or in any other case endorsed by any 3rd celebration.
A new analyze sponsored by Franklin Templeton found that a sizeable greater part (67{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}) of staff have reassessed what they want from their companies due to the COVID-19 pandemic—with just about 50 percent (44{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}) owning deemed leaving or in fact deciding to leave their work over the past 12 months.
The “Voice of the American Employee” analyze suggests that there has in no way been a more urgent time for organizations to consider their advantage offerings and look at strategies to evolve their added benefits and payment methods.
Regardless of striving to improve across all three elements of well-being—mental, physical and economical health—workers nowadays even now don’t experience significantly control, particularly over their fiscal well being. The study observed that 83{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of U.S. personnel carry at the very least one particular variety of financial debt, with several staff carrying a number of types of personal debt concurrently, which includes credit card credit card debt (54{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}), home loan or home equity financial debt (40{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}), utility, mobile cell phone or car loan credit card debt (38{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}), particular loan financial debt (21{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}) and scholar bank loan debt (19{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}).
“If men and women had been robots, they should really possibly pay down especially any credit card debt with a better curiosity fee than what they would reasonably be expecting to make on a sector return if they were investing,” suggests Matthew Eickman, Skilled Program Advisors national retirement practice chief. “If people today ended up robots, they would just make all the reasonable conclusions, and at the conclude of the working day they would occur out ahead fiscally.”
Of training course, as Eickman observes, folks are not robots. When it arrives to selecting to pay down financial debt or preserve for retirement, Eickman states, there are some behavioral advantages in beginning to conserve at a youthful age, generally mainly because it develops the mentality of remaining a saver. In addition, getting some amount of price savings right after personal debt is paid off is normally additional emotionally desirable than waiting to conserve and setting up from zero at an more mature age.
The truth for most individuals is that it can make sense to equally help save for retirement and pay out down debt, but normally at unique proportions, dependent on the kind of credit card debt and the related curiosity rates, Eickman claims.
“There’s some thing demoralizing about paying out off your financial debt from age 25 to 35 and getting age 35 and acknowledging that you have $ saved for retirement,” Eickman claims. “That’s why carrying out a minor bit of both of those helps make feeling.”
Lack of staff wellbeing has an effects on their function, the study implies. Amid personnel who at this time carry personal debt, several say their stages of debt are impactful on their lives, careers and final decision-creating. This form of financial anxiety is a important contributor to workers’ deficiency of total very well-being.
Workforce are interested in financial administration and instruction gains, the examine notes. The study demonstrates that 56{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of staff are fascinated in owning accessibility to a financial specialist, 62{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} want fiscal preparing equipment these kinds of as an on the internet dashboard or recommendations for retirement financial savings, and 52{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} say they are fascinated in non-retirement-targeted fiscal training and sources.
Its significant for advisers to understand that whilst there are digital equipment and mobile phone financial institutions to give participants’ help, individuals however like to speak to an genuine human being about their finances, Eickman says. The nation’s most effective advisers are possibly figuring out how to have the means about them internally, or they are partnering with outdoors companies to do the economic wellness get the job done.
“If you feel back again to March 2020 to see how promptly Congress put collectively the Cares Act to deliver individuals obtain to a coronavirus-connected distribution of up to $100,000, it truly highlights the concept that the economic predicament for most People in america isn’t built to stand up to emergencies,” Eickman says. “So, in addition to concerns about no matter if to fork out down personal debt or help you save for retirement, having an emergency limited-term discounts is the 3rd pillar of what staff members have to have to do to get their fiscal household in get.”
People today will need a standard knowledge of economic ideas to make excellent financial decisions. Our recently released exploration observed most learners generally do not know a good deal about individual finance. This features becoming able to use standard numeracy to genuine-existence money conditions, such as producing paying for choices that are value-for-dollars and understanding desire on financial loans and investments.
Our report also would make six suggestions to strengthen money literacy education in universities.
Our findings had been consistent with previous proof that 16{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of Australian 15-calendar year-olds deficiency even the essential level of fiscal literacy they have to have to participate in culture. There is evidence that money literacy in this age group is declining.
Examine more:
Aussie kids’ fiscal know-how is on the decrease. The proposed national curriculum has downgraded it even even further
This development is relating to. The senior a long time of high university are a time when learners just take on additional particular obligation and monetary independence. The monetary behaviors they sort then could final as a result of adulthood. Reduced fiscal literacy is persistently joined to poorer monetary outcomes.
The Australian Curriculum acknowledges students need economic literacy to function in our monetary planet. Nonetheless, this curriculum only covers up to calendar year 10. In several years 11 and 12, the a long time that are significantly important in shaping students’ fiscal ability, monetary literacy is taught only in reduced-degree maths subjects.
How Australia compares to other international locations in the PISA 2018 assessment of students’ money literacy. ACER/PISA 2018, CC BY-NC-ND
What did the review locate?
Our analysis explored the economic literacy of students in yrs 10, 11 and 12 at two urban and two rural faculties. We observed what college students do know about money literacy has been uncovered from home, maths or enterprise research. Learners who were being enterprise company studies were much more informed than other pupils.
Browse additional:
How to train your little ones to consider extra critically about income
The students we spoke to were unbelievably various. Home constructions assorted drastically, with lots of learners not dwelling with their dad or mum/s. There was also evidence of dad and mom not getting capable to give money steerage.
Virtually 50 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} the surveyed learners favored not to imagine about their fiscal circumstance.
We talked to a great deal of the pupils about maths and discovered this was not the most powerful curriculum place for understanding about personal finance. When taught as aspect of the maths curriculum it tends to final result in learners fixating on formulation and calculations, without the need of comprehension the fundamental principles. As one college student stated:
“I only genuinely try to remember the formulation due to the fact which is all we acquired taught.”
Numerous learners also dislike maths. This means they are disengaged from mastering at the outset. A person pupil explained to us:
“If I was in class executing that [a simple question about interest], I would just study it, hold looking at it, but not basically process it or try it since I’d just give up.”
There was also typically a disconnect among the economic scenarios learners had been understanding about and their encounters in their possess lives.
Learners who could bear in mind economical concepts would usually remember an working experience or a thing from record when talking about it. This suggests stories might be extra helpful in speaking fiscal principles. For instance, one scholar stated of inflation:
“Over time, because certainly far more funds is currently being printed […] persons believe printing money results in additional income and you are richer, when in fact you’re just producing the currency you have worthless, mainly because there’s so a great deal of it, that it’s not hard to receive it at all. I realized most of that from historical past.”
Interestingly, we found proof of young women of all ages in individual needing a lot more context to make economic choices. When requested economical issues, they puzzled about diverse aspects of the question relatively than swiftly answering. Take a look at questions normally applied to assess economic understanding generally offer you tiny context.
About a person in a few students agreed they identified handling their private funds tough and complicated.
Ultimately, we mentioned lots of students were not finding out economical methods, these types of as moderating shelling out, that have lifelong gains.
Read through much more:
Would you move this monetary literacy quiz? Several is not going to – and it’s influencing high-priced aged care conclusions
How can we improve?
Supplied the significance of financial literacy for scholar perfectly-currently being, our report tends to make these tips:
fiscal literacy education and learning should really be elevated in substantial educational institutions, ideally as a standalone system, but also by injecting rules of monetary literacy into as numerous curriculum places as achievable – significantly in the perfectly-remaining and pastoral care location
economic literacy instruction in maths wants to be enhanced, making use of a selection of approaches – not limited to calculation functions
economic literacy instruction need to be expanded to subjects other than maths and company, in line with shifting the concentrate from monetary calculations to financial principles
learning functions ought to be aligned with the students’ normal amount of economical knowledge
college students require extra exposure to helpful monetary procedures, in unique how to average (or handle) spending for saving
a range of assessment procedures really should be supplied to permit learners to clearly show what they have learnt. Evaluation tasks really should go outside of calculations and could involve created parts, visual or remarkable displays, or oral explanations. These could be presented by teams or individuals.
Achieves Record SBA 7(a) Loan Fundings of $198.0 Million in the Fourth Quarter and $560.6 Million for the Full Year 2021
BOCA RATON, Fla., Feb. 23, 2022 (GLOBE NEWSWIRE) — Newtek Business Services Corp. (“Newtek” or the “Company”) (Nasdaq: NEWT), an internally managed business development company (“BDC”), announced today its financial and operating results for twelve months ended December 31, 2021.
Full Year 2021 Financial Highlights
Total investment income of $108.5 million for the twelve months ended December 31, 2021; an increase of 17.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} over total investment income of $92.2 million for the twelve months ended December 31, 2020.
Net investment income of $25.7 million, or $1.13 per share, for the twelve months ended December 31, 2021, which represents a 25.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease, on a per share basis, compared to net investment income of $32.0 million, or $1.51 per share, for the twelve months ended December 31, 2020.
Adjusted net investment income (“ANII”) of $79.1 million, or $3.47 per share, for the twelve months ended December 31, 2021; an increase of 69.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, on a per share basis, compared to ANII of $43.4 million, or $2.05 per share, for the twelve months ended December 31, 2020.
Debt-to-equity ratio of 1.19x at December 31, 2021; proforma debt-to-equity ratio was 1.10x after taking into account the sales of government-guaranteed portions of SBA 7(a) loans prior to December 31, 2021, which sales settled subsequent to the balance sheet date.
Total investment portfolio increased by 13.1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to $758.8 million at December 31, 2021, from $671.2 million at December 31, 2020.
Net asset value (“NAV”) of $403.9 million, or $16.72 per share, at December 31, 2021; an increase of 8.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, on a per share basis, compared to NAV of $15.45 per share at December 31, 2020.
On December 9, 2021, Newtek closed its eleventh small business loan securitization, with the sale of $103.4 million of Unguaranteed SBA 7(a) Loan-Backed Notes, Series 2021-1.
On August 2, 2021, the Company announced that it entered into an agreement to acquire National Bank of New York City (“NBNYC”), a nationally chartered bank, subject to certain regulatory and shareholder approvals.
2021 & 2022 Dividend Payments & 2022 Forecast
On December 30, 2021, the Company paid a fourth quarter 2021 cash dividend of $1.05 per share to shareholders of record as of December 20, 2021, which represented a 123.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase over the fourth quarter 2020 dividend of $0.47 per share.
The Company paid $3.15 per share in dividends in 2021; a 53.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase over dividends paid in 2020 and a 46.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase over dividends paid in 2019.
The Company’s board of directors declared a first quarter 2022 dividend of $0.652 per share, which represents a 30.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase over the first quarter 2021 dividend, payable on March 31, 2022 to shareholders of record on March 21, 2022.
The Company forecasts a second quarter 2022 dividend of $0.652 per share.
Lending Highlights
Newtek Small Business Finance, LLC (“NSBF”) funded a record $198.0 million of SBA 7(a) loans during the three months ended December 31, 2021; a 74.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase over the $113.6 million of SBA 7(a) loans funded for the three months ended December 31, 2020.
NSBF funded a record $560.6 million of SBA 7(a) loans during the twelve months ended December 31, 2021, an increase of 184.9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} over $196.8 million of SBA 7(a) loans funded for the twelve months ended December 31, 2020, and within the previously forecasted funding range.
NSBF forecasts funding approximately $750 million of SBA 7(a) loans for the full year 2022.
Newtek Business Lending (“NBL”), a wholly owned portfolio company, funded and/or closed $90.1 million SBA 504 loans during the twelve months ended December 31, 2021, compared to $87.2 million SBA 504 loans funded and/or closed during the twelve months ended December 31, 2020.
NBL forecasts funding and/or closing approximately $150 million SBA 504 loans for the full year 2022, which would represent an 66.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} increase over 2021 SBA 504 fundings and/or closings at the midpoint of the 2022 forecasted range.
NSBF funded a total of $1.9 billion of PPP loans from 2020 through the twelve months ended December 31, 2021.
Subsequent 2021 Events
On January 28, 2022, Newtek’s joint venture, Newtek Conventional Lending LLC (“NCL”), closed a conventional commercial loan securitization with the sale of $56.3 million Class A Notes (“Notes”), NCL Business Loan Trust 2022-1, secured by a segregated asset pool consisting primarily of conventional commercial business loans. The Notes were rated “A” (sf) by DBRS Morningstar.
Barry Sloane, Chairman, President and Chief Executive Officer said, “We couldn’t be more pleased with the operational performance and the related financial results for calendar year 2021. When we reflect back on March of 2020, when federal and state officials were shutting down most commercial and personal activities, to foresee 22 months later the current position we are in would have been almost unimaginable. Despite tremendous headwinds, Newtek’s business operations and financial model has evolved, been enhanced, and is delivering desired results.”
Focusing first on the lending business, Mr. Sloane commented, “The concept of us funding approximately $729 million of PPP loans to 16,000 clients in 2021 while simultaneously funding a record level of $560.6 million of SBA 7(a) loans and NBL funding and/or closing $90.1 million of SBA 504 loans is an incredible feat which needs to be highlighted. This window of time has forced our organization and all of its stakeholders to bear down and materially improve our technology, training and capability to enable our organization to scale and grow in lending and other solutions. As an example, our lending teams received over 2,350 hours of additional training, compliance and management directives in 2021 alone. Simply stated, we believe we are a much better company today than we were in early 2020.”
Mr. Sloane continued, “In addition, in January 2022, we closed our first securitization of non-conforming conventional loan originations with one of our joint venture partners. We believe this activity, which we will discuss in further detail on our earnings call tomorrow morning, is an opportunity for an additional revenue engine through origination fees, servicing fees, and spread income which can complement the income generated from our existing SBA 7(a) and our portfolio company’s SBA 504 loan business. In addition, in December 2021, we closed our 11th securitization of SBA 7(a) loans with tremendous investor acceptance, over 4.5x over subscribed, attractive pricing and consistent advance rates.”
Mr. Sloane concluded, “We are also pleased to report a debt-to-equity ratio of 1.19x at December 31, 2021. In addition, NAV was $403.9 million, or $16.72 per share, at December 31, 2021, which represents an increase of 8.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, on a per share basis, compared to NAV of $15.45 per share at December 31, 2020. In 2021, we also accomplished the milestone of reaching over $1.0 billion in total assets. Our payment processing businesses and managed technology solutions business generated EBITDA of approximately $19.0 million in 2021. We are proud of these accomplishments as well as the trajectory of these businesses. We look forward to discussing these results in further detail on tomorrow morning’s call.”
Full Year 2021 Conference Call and Webcast
A conference call to discuss full year 2021 results will be hosted by Barry Sloane, President, Chairman and Chief Executive Officer, and Nicholas Leger, Chief Accounting Officer, tomorrow, Thursday, February 24, 2022 at 8:30 a.m. ET. The live conference call can be accessed by dialing (800) 708-4540 or (847) 619-6397 using the confirmation number: 50281915.
In addition, a live audio webcast of the call with the corresponding presentation will be available in the ‘Events & Presentations’ section of the Investor Relations portion of Newtek’s website at http://investor.newtekbusinessservices.com/events-and-presentations. A replay of the webcast with the corresponding presentation will be available on Newtek’s website shortly following the live presentation and will remain available for 90 days.
1Use of Non-GAAP Financial Measures – Newtek Business Services Corp. and Subsidiaries
In evaluating its business, Newtek considers and uses ANII as a measure of its operating performance. ANII includes short-term capital gains from the sale of the guaranteed portions of SBA 7(a) loans and conventional loans, and beginning in 2016, capital gain distributions from controlled portfolio companies, which are reoccurring events. The Company defines ANII as Net investment income (loss) plus Net realized gains recognized from the sale of guaranteed portions of SBA 7(a) loan investments, less realized losses on non-affiliate investments, plus the net realized gains on controlled investments, plus or minus the change in fair value of contingent consideration liabilities, plus loss on extinguishment of debt, plus or minus an adjustment for gains or losses on derivative transactions.
We do not designate derivatives as hedges to qualify for hedge accounting and therefore any net payments under, or fluctuations in the fair value of, our derivatives are recognized currently in our GAAP income statement. However, fluctuations in the fair value of the related assets are not included in our income statement. We consider the gain or loss on our hedging positions related to assets that we still own as of the reporting date to be “open hedging positions.” While recognized for GAAP purposes, we exclude the results on the hedges from ANII until the related asset is sold and/or the hedge position is “closed,” whereupon they would then be included in ANII in that period. These are reflected as “Adjustment for realized gain/(loss) on derivatives” for purposes of computing ANII for the period. We believe that excluding these specifically identified gains and losses associated with the open hedging positions adjusts for timing differences between when we recognize changes in the fair values of our assets and changes in the fair value of the derivatives used to hedge such assets.
The term ANII is not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. ANII has limitations as an analytical tool and, when assessing the Company’s operating performance, investors should not consider ANII in isolation, or as a substitute for net investment income, or other consolidated income statement data prepared in accordance with U.S. GAAP. Among other things, ANII does not reflect the Company’s actual cash expenditures. Other companies may calculate similar measures differently than Newtek, limiting their usefulness as comparative tools. The Company compensates for these limitations by relying primarily on its GAAP results supplemented by ANII.
2 Note Regarding Dividend Payments Amount and timing of dividends, if any, remain subject to the discretion of the Company’s Board of Directors. The Company’s Board of Directors expects to maintain a dividend policy with the objective of making quarterly distributions in an amount that approximates 90 – 100{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of the Company’s annual taxable income. The determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s fiscal year based upon its taxable income for the full year and distributions paid for the full year.
Note Regarding PPP Income The Company’s financial results for 2020 and the twelve months ended December 31, 2021, includes income generated from NSBF’s origination of loans under the Paycheck Protection Program (PPP), which ended during the third quarter of 2021, and should not be viewed as recurring.
Newtek Business Services Corp., Your Business Solutions Company®, is an internally managed BDC, which along with its controlled portfolio companies, provides a wide range of business and financial solutions under the Newtek® brand to the small- and medium-sized business (“SMB”) market. Since 1999, Newtek has provided state-of-the-art, cost-efficient products and services and efficient business strategies to SMB relationships across all 50 states to help them grow their sales, control their expenses and reduce their risk.
Newtek® and Your Business Solutions Company®, are registered trademarks of Newtek Business Services Corp.
Note Regarding Forward Looking Statements
This press release contains certain forward-looking statements. Words such as “believes,” “intends,” “expects,” “projects,” “anticipates,” “forecasts,” “goal” and “future” or similar expressions are intended to identify forward-looking statements. 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, include our ability to close the pending acquisition of the National Bank of New York City (the “Acquisition”), obtain required regulatory approvals for the pending Acquisition and obtain shareholder approval to withdraw our election as a BDC, as well as projections concerning or considering the pending Acquisition, our ability to originate new investments, achieve certain margins and levels of profitability, the availability of additional capital and the ability to maintain certain debt to asset ratios, 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/. Newtek cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements.
SBA unguaranteed non-affiliate investments (cost of $431,970 and $420,400, respectively; includes $344,266 and $312,649, respectively, related to securitization trusts)
$
424,417
$
407,748
SBA guaranteed non-affiliate investments (cost of $65,728 and $16,964, respectively)
72,970
17,822
Controlled investments (cost of $157,289 and $138,891, respectively)
260,398
239,171
Non-control investments (cost of $1,000 and $6,447, respectively)
1,000
6,447
Total investments at fair value
758,785
671,188
Cash
2,397
2,073
Restricted cash
184,463
49,352
Broker receivable
44,537
52,730
Due from related parties
4,395
6,112
Servicing assets, at fair value
28,008
26,061
Right of use assets
7,310
6,933
Other assets
26,666
26,530
Total assets
$
1,056,561
$
840,979
LIABILITIES AND NET ASSETS
Liabilities:
Bank notes payable
$
50,000
$
86,339
Notes due 2023 (par: $0 and $57,500 as of December 31, 2021 and December 31, 2020)
—
56,505
Notes due 2024 (par: $38,250 and $63,250 as of December 31, 2021 and December 31, 2020)
37,679
61,774
Notes due 2025 (par: $15,000 and $5,000 as of December 31, 2021 and December 31, 2020)
14,545
4,735
Notes due 2026 (par: $115,000 and $0 as of December 31, 2021 and December 31, 2020)
112,128
—
Notes payable – Securitization trusts (par: $249,750 and $221,752 as of December 31, 2021 and December 31, 2020)
246,250
218,339
Notes payable – related parties
11,450
24,090
Due to related parties
1,490
2,133
Lease liabilities
9,056
8,697
Deferred tax liabilities
12,733
11,406
Due to participants
146,225
17,885
Derivative instruments
183
—
Accounts payable, accrued expenses and other liabilities
10,935
9,723
Total liabilities
652,674
501,626
Commitment and contingencies
Net assets:
Preferred stock (par value $0.02 per share; authorized 1,000 shares, no shares issued and outstanding)
—
—
Common stock (par value $0.02 per share; authorized 200,000 shares, 24,159 and 21,970 issued and outstanding, respectively)
483
439
Additional paid-in capital
367,663
316,629
Accumulated undistributed earnings
35,741
22,285
Total net assets
403,887
339,353
Total liabilities and net assets
$
1,056,561
$
840,979
Net asset value per common share
$
16.72
$
15.45
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except for Per Share Data)
Year Ended December 31,
2021
2020
2019
Investment income
From non-affiliate investments:
Interest income – PPP loans
$
49,989
$
37,743
$
—
Interest income – SBA 7(a) loans
25,951
24,719
28,467
Servicing income
11,307
11,154
10,078
Other income
5,696
2,693
5,328
Total investment income from non-affiliate investments
92,943
76,309
43,873
From non-control investments:
Interest income
428
403
—
Dividend income
95
104
111
Total investment income from non-control investments
523
507
111
From controlled investments:
Interest income
2,598
1,933
1,024
Dividend income
9,801
13,452
14,287
Other income
2,629
—
—
Total investment income from controlled investments
15,028
15,385
15,311
Total investment income
108,494
92,201
59,295
Expenses:
Salaries and benefits
17,866
14,211
14,305
Interest
20,515
17,877
20,422
Depreciation and amortization
304
402
501
Professional fees
5,610
3,718
3,807
Origination and loan processing
10,234
8,431
9,215
Origination and loan processing – related party
19,272
9,855
9,944
Change in fair value of contingent consideration liabilities
—
54
42
Loss on extinguishment of debt
1,552
—
251
Other general and administrative costs
7,454
5,668
6,427
Total expenses
82,807
60,216
64,914
Net investment income (loss)
25,687
31,985
(5,619
)
Net realized and unrealized gains (losses):
Net realized gain on non-affiliate investments – SBA 7(a) loans
53,113
11,368
47,816
Net realized gain (loss) on controlled investments
(1,266
)
—
2,585
Net realized gain on derivative transactions
590
—
Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments
6,380
(795
)
(225
)
Net unrealized appreciation (depreciation) on SBA unguaranteed non-affiliate investments
5,097
(176
)
(6,291
)
Net unrealized appreciation (depreciation) on controlled investments
2,829
(8,237
)
11,211
Change in deferred taxes
(1,327
)
999
(3,164
)
Net unrealized depreciation on derivative transactions
(183
)
—
Net unrealized depreciation on servicing assets
(6,778
)
(1,525
)
(5,178
)
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, except for Per Share Data)
Net realized and unrealized gains
$
58,455
$
1,634
$
46,754
Net increase in net assets resulting from operations
$
84,142
$
33,619
$
41,135
Net increase in net assets resulting from operations per share
$
3.69
$
1.59
$
2.13
Net investment income (loss) per share
$
1.13
$
1.51
$
(0.29
)
Dividends and distributions declared per common share
$
3.15
$
2.05
$
2.15
Weighted average number of shares outstanding
22,795
21,146
19,326
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES-
ADJUSTED NET INVESTMENT INCOME RECONCILIATION:
Year ended
Year ended
(in thousands, except per share amounts)
December 31, 2021
Per share
December 31, 2020
Per share
Net investment income
$
25,687
$
1.13
$
31,985
$
1.51
Net realized gain on non-affiliate investments – SBA 7(a) loans
53,113
2.33
11,368
0.54
Net realized loss on controlled investments
(1,266
)
(0.06
)
—
—
Adjustment for realized gain on derivatives (1)
25
0.00
—
—
Change in fair value of contingent consideration liabilities
—
—
54
0.00
Loss on debt extinguishment
1,552
0.07
—
—
Adjusted Net investment income
$
79,111
$
3.47
$
43,407
$
2.05
Note: Amounts may not foot due to rounding
(1) The following is a reconciliation of GAAP net realized gain/(loss) on derivative transactions to our adjustment for realized gain/(loss) on derivatives on closed transactions presented in the computation of ANII in the preceding tables:
Year ended
Year ended
(in thousands, except per share amounts)
December 31, 2021
Per share
December 31, 2020
Per share
Net realized gain on derivatives
$
590
$
0.03
$
—
$
—
Hedging realized result on open hedging positions
(565
)
(0.02
)
—
—
Adjustment for realized gain on derivatives
$
25
$
0.00
$
—
$
—
Note: Amounts may not foot due to rounding
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
DEBT-TO-EQUITY RATIO – ACTUAL AT DECEMBER 31, 2021
(in thousands):
Actual Debt-to-Equity Ratio at December 31, 2021
Total senior debt
$
479,450
Total equity
$
403,887
Debt-to-equity ratio – actual
1.19x
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
DEBT-TO-EQUITY RATIO – PROFORMA AT DECEMBER 31, 2021
(in thousands):
Broker receivable, including premium income receivable
$
44,537
Less: realized gain on sale included in broker receivable
(4,783
)
Broker receivable
39,754
90{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} advance rate on SBA guaranteed non-affiliate portions of loans sold, not settled
$
35,779
Proforma debt adjustments at December 31, 2021:
Total senior debt
$
479,450
Proforma adjustment for broker receivable
(35,779
)
Total proforma debt
$
443,671
Proforma Debt-to-Equity ratio at December 31, 2021:
