Barry Sloane: Yes. It would be used for the non-business primarily, that’s a big need for it. Could also be used to pay down debt as well.
Bryce Roe: Okay. Okay. I appreciate it Barry. I think all my other questions we’re asked and answered. Thanks.
Barry Sloane: Okay. Thank you.
Operator: Your next question comes from the line of Scott Sullivan from Raymond James. Your line is open.
Scott Sullivan: Hey, good morning, Barry and congrats to you and the team on, really continuing this transition rather elegantly. So, my comments and questions come from a slightly different perspective, as I’ve really been fortunate enough to be an advisor and portfolio manager for clients, and been involved with Newt’s since the early BBC days, as you know, and frankly, as everyone knows, you crushed it. You guys have really done an outstanding job. So, the natural turn towards the banking side now. My question has to do with scalability and perhaps Blue Sky Runway under some, I think, some exciting assumptions, at least that I have. I see a lack of financial stress. I see a potential eventual de-inversion of the yield curve.
Obvious, as you talked about tech developments, AI and other that are, in my opinion, are going to lead to a huge productivity boom, possibly a decade long. So, question after that ramble is what’s a Blue Sky Runway for you guys in terms of growth rate, loan growth, et cetera, with the special sauce that you prove in in terms of your process and, under these macro assumptions?
Barry Sloane: Sure. Well, I think I think that, if you look at the roadmap, which relates to people processing software, no bankers, no brokers, no BDOs, no branches, the market can visualize as the management team can that we could grow the revenue stream without matching dollar-for-dollar with expenses, then the future is pretty bright. And I want to be real clear about this. A lot of people say, well, why did you buy a bank? Do you want to leverage the deposits? Well, that’s just a fact of the banking business, but — to the ability to communicate and deliver bundle services with margin pooling that actually give that customer a tremendous advantage. So, like, here’s a simple thing. Document storage, okay? We’ve had this and used it to make loans forever.
If you bank with us, You can see your document. This is a Newtek advantage. Your consumer could be your insurance policies, your photos, your driver’s license, your rental agreements, if you’re a business that your article says, that’s free. That’s free. It’s a benefit. You can go to the advantage and look at your web traffic analytics that’s changing everything. That’s great. And then you have — and I love asking this question to anybody. Who do you know at your bank? Half the time, they say, I don’t know anybody. The other half the time they could name one person, maybe, and that one person can’t do anything, except hand them off to somebody else at the bank, to do whatever it is they need to get done. That’s not the case with the Newtek Advantage.
You get six relationships, so you get the analytics. See, I mean, there’s so many things. That’s why I’m very excited about the model, how we’re positioned. It’s different unique, and it’s very hard to replicate. Because over 20 years, we’ve owned the payments business. We’ve owned a Tech Solutions business. We’ve owned it in so we owned all these things. You’re not just stuff slapped together and hoping they work well. So, that’s kind of where I see that Blue Sky without getting into the numbers of the map. Now, when you look at the ROAA and the ROTCE, that’s where people are going to have to look at this and go, okay. I can actually compute this into numbers.
Scott Sullivan: That’s very helpful. Thank you. One last question. Could you speak to any — often talked about now, loan office exposure?
Barry Sloane: Did you say a loan office?
Scott Sullivan: Office. Office, right.
Barry Sloane: Yes. I believe that the National Bank of New York City portfolio might have had maybe 15 million-ish, but these are not These are not skyscrapers. These are like medical offices, $1 million to $1.5 million balances. So there’s no — I mean, we’re blessed. We don’t have that type of exposure in the portfolio.
Scott Sullivan: That’s very helpful. Yes. As I said we don’t get many opportunities to sort of get in at the ground floor of a of a new bank. with new techniques and expertise without all the legacy baggage. So, congratulations.
Barry Sloane: Thank you, Scott. I appreciate it.
Operator: There are no further questions. Please go ahead.
Barry Sloane: No, operator. I appreciate it. I are there any — I don’t think there’s any other questions that I’m seeing?
Operator: We just one have from Christopher Nolan from Ladenburg Thalmann & Co. Your line is now open.
Barry Sloane: Chris, thank you for being patient.
