Benzinga | Aug 2, 2021 04:17PM EDT

Newtek Business Services Corp. Signs Agreement To Acquire National Bank Of New York City For $20M In Cash

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.