Newtek Business Services announced that its board of directors declared a third quarter cash dividend of approximately $6.3 million
OREANDA-NEWS. Newtek Business Services Corp. (“Newtek” or the “Company”), (NASDAQ:NEWT), an internally managed business development company ("BDC"), today announced that its board of directors declared a third quarter cash dividend of approximately $6.3 million, or $0.43 per share, payable on September 30, 2016 to shareholders of record as of September 20, 2016. The Company is reconfirming its full year 2016 dividend forecast of approximately $22.2 million, or $1.53 per share.
In addition, the Company announced that it funded $20.6 million in SBA 7(a) loans in August 2016, which represents the largest dollar volume of SBA 7(a) loans funded during the month of August in the Company's history. The Company maintains its loan funding forecast of approximately $300 million in SBA 7(a), and approximately $20 million in SBA 504 loans to be originated by one of Newtek’s controlled portfolio companies, which in total would represent an approximate 32% increase over total loan fundings in 2015.
Barry Sloane, Chairman, President and Chief Executive Officer stated, “As we move through the second half of 2016, we are extremely pleased with the consistent strong performance of our business. We continue to experience an enormous appetite for our SBA 7(a) loan product and are proud to say that we have been able to significantly increase our loan funding growth year over year while maintaining the credit quality of our loan portfolio. In fact, year-to-date through August 31, 2016, our SBA 7(a) loan fundings have increased by approximately 48.1% to $178.3 million compared to the same period last year. Furthermore, our portfolio companies have been performing well in line with our expectations. We have continued to actively target companies for investment and currently have two companies in our investment pipeline. We look forward to continuing to report our performance milestones to our shareholders and remain optimistic regarding our full year 2016 results.”
The Company’s board of directors expects to maintain a dividend policy with the objective of distributing approximately 90% to 98% 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 and distributions paid for the year.
About Newtek Business Services Corp.
Newtek Business Services Corp., Your Business Solutions CompanyTM, is an internally managed BDC, which along with its controlled portfolio companies, provides a wide range of business services and financial products 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 over 100,000 SMB accounts across all 50 states to help them grow their sales, control their expenses and reduce their risk.