Chicago Atlantic BDC Q2 Earnings Call Highlights

Chicago Atlantic BDC (NASDAQ:LIEN) reported second-quarter nett concern income of $7.7 million, oregon $0.34 per share, arsenic indebtedness repayments exceeded caller originations and reduced the size of its concern portfolio.

The institution declared a quarterly dividend of $0.34 per share, its eighth consecutive 4th astatine that level. Net concern income declined from $10 million, oregon $0.44 per share, successful the archetypal quarter, which absorption attributed to a smaller portfolio, little interest income from originations and, successful part, little income-based inducement fees.

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Chief Executive Officer Peter Sack described the 4th arsenic beardown but said comparisons with the anterior 4th were hard due to the fact that originations and repayments tin alteration materially from play to period.

Portfolio Declines connected Paydowns, While Credit Quality Remains Stable

The just worth of Chicago Atlantic BDC's portfolio was $334.8 cardinal arsenic of June 30, down $29.1 cardinal from March 31. The diminution chiefly reflected $32.2 cardinal of gross paydowns, including 3 afloat indebtedness payoffs, partially offset by $2.7 cardinal successful caller originations during the quarter.

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The paydowns included $26.7 cardinal from 3 borrowers that afloat repaid their loans, positive $5.5 cardinal of amortization and unscheduled payments. Sack said the loans were repaid astatine par, with nary realized losses, and had generated a weighted-average contractual output successful the precocious teens implicit their lives.

Interim Chief Financial Officer Tom Geoffroy said the diminution successful portfolio worth did not effect from deterioration successful recognition quality. Fair worth continued to way intimately with main outstanding, helium said, and the institution reported nary loans connected non-accrual status.