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Newtek Your Business Solutions Company ™ Newtek Business Services Corp. Signs Agreement to Acquire National Bank of New York City August 2 , 2021 Acquisition will be Discussed during a Shareholder Conference Call Tuesday , August 3 , 2021 at 7:30 am ET BOCA RATON , Fla . , Aug. 02 , 2021 ( GLOBE NEWSWIRE ) -- Newtek Business Services Corp. , ( Nasdaq : NEWT ) , an internally managed business development company ( " BDC " ) , today announced that it entered into an agreement to acquire National Bank of New York City ( " NBNYC " or the " Bank " ) , a nationally chartered bank with approximately $ 204 million in total assets and $ 36.5 million in tier 1 capital ( each as of June 30 , 2021 ; does not reflect the impact of pre - closing dividends to selling NBNYC shareholders ) for $ 20 million in cash ( the " Acquisition " ) . The agreement requires that NBNYC have $ 20 million of tangible common equity as of the closing date of the Acquisition . The Acquisition is part of a plan to reposition Newtek as a bank holding company , and is subject to the approval of , among others , federal banking regulators and the U.S. Small Business Administration ( SBA ) , and Newtek shareholders to withdraw Newtek's election as a BDC . Upon shareholder and regulatory approvals , and other closing conditions , Newtek will become a bank holding company that will elect financial holding company ( FHC ) status . Newtek anticipates the Acquisition to close in approximately six to twelve months . Barry Sloane , President , Chairman and CEO of Newtek said , " We are pleased with the manner in which Newtek has responded to adverse market conditions throughout its over two - decade operating history . During our enterprise's lifetime , the 2008-2009 credit crisis and the COVID - 19 pandemic clearly were major hurdles for our organization to overcome , and we did so with success . We are proud that our management and team members have always been able to not only respond to challenges but , more importantly , have been able to adapt and persevere in the face of difficult operating environments , and always work to strategically position the company for future success . " Mr. Sloane continued , " There is no doubt that our economy and financial system are demanding changes to the way services and solutions are offered to commercial clients . Newtek , throughout its over 20 - year operating history , has been able to adapt to an ever - changing environment and meet clients ' needs with best - in - class services and solutions offerings . We greatly appreciate our successful 6.5 - year track record as a BDC , which we believe speaks volumes to our ability to adapt and grow and are extremely proud of where we are today , with approximately $ 800 million in market capitalization . Newtek believes this Acquisition and conversion to a bank holding company has the capacity to significantly reduce risk , provide enhanced shareholder value , and provide greater flexibility to serve our business clientele in the future in ways we cannot under our current structure . With Newtek's management and board of directors continuing to collectively own 5 % of Newtek's common stock , our interests are aligned with those of Newtek's shareholders . We expect Newtek's current management and board to remain in place and we expect to add additional hires with banking experience at the appropriate time . We expect that the Acquisition and conversion to a bank holding company will be accretive to Newtek's shareholders over time and believe we have the potential to become a bank for the future - a true tech - enabled bank - and achieve an ancillary goal of commercializing the technologies that we have utilized successfully over two decades . We anticipate that this Acquisition will enable us to unlock hidden value in our client base , as the lines between lending , payments , payroll , and technology are blurring . We further believe that Newtek is well positioned to take advantage of these changes as the Business Solutions Company® " Mr. Sloane further commented , " Newtek is reaffirming its 2021 annual dividend forecast of $ 3.00 to $ 3.30 per share¹ . Newtek has paid a total of $ 1.20 per share in dividends through the first six months of 2021. Newtek's current 2021 annual dividend forecast indicates a remaining dividend payment of $ 1.95 per share , at the midpoint of the 2021 annual dividend forecast range , subject to Company performance and board approval . Newtek believes that its current business model and structure is performing well and is positioned to distribute between 90 % and 100 % of its taxable income in the form of dividends in 2021. However , management believes that , on a go - forward basis , a bank holding company will be a superior structure for its shareholders . " Mr. Sloane concluded , " We have a great deal of information to review with our shareholders , and have scheduled a call for tomorrow morning , Tuesday , August 3 , 2021 , at 7:30 am ET to review the details of the Acquisition and its meaning for our bright future . In addition , the Presentation for tomorrow's call is now available in the ' Events & Presentations ' section of the Investor Relations portion of Newtek's website at http://investor.newtekbusinessservices.com/events-and-presentations . Thank you in advance for your support , patience and faith in Newtek throughout its 21 - year history as a publicly traded Company . " Additional details on the Acquisition will be contained in a Curr Report on Form 8 - K that Newtek will be filing with the Securities and Exchange Commission on Monday , August 2 , 2021- available on the SEC's website at www.sec.gov . Advisors Keefe , Bruyette & Woods , A Stifel Company , served as exclusive financial advisor to Newtek in connection with the Acquisition and Sullivan and Cromwell LLP and Eversheds Sutherland ( US ) LLP served as Newtek's legal counsel . In addition , Michael Rose of Metropolitan Capital Investment Banc acted as an advisor to Newtek . Piper Sandler & Co. acted as financial advisor to NBNYC and Silver , Freedman , Taff & Tiernan LLP is serving as legal counsel to NBNYC . Conference Call and Webcast Information Newtek will host a conference call to discuss the Acquisition on Tuesday , August 3 , 2021 at 7:30 am ET . The live conference call can be accessed by dialing ( 877 ) 303-6993 or ( 760 ) 666-3611 A live webcast of the call and 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 be