John Silas Good morning. This is John Silos, a member of the Investor Relations team for Goldman Sachs BDC, Inc. And I would like to welcome everyone to the Goldman Sachs BDC, Inc. Fourth Quarter and Fiscal Year End 2024 Earnings Conference Call. Please note that all participants will be in listen-only mode until the end of the call when we will open the line for questions. Before we begin today's call, I would like to remind our listeners that today's remarks may include forward-looking statements. These s ...

Group 1 - Goldman Sachs BDC reported quarterly earnings of $0.47 per share, missing the Zacks Consensus Estimate of $0.50 per share, and down from $0.55 per share a year ago, representing an earnings surprise of -6% [1] - The company posted revenues of $103.8 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.77%, and down from $115.4 million year-over-year [2] - Over the last four quarters, Goldman Sachs BDC has surpassed consensus EPS estimates two times, but has not beaten consensus revenue estimates [2] Group 2 - The stock has gained about 7.1% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the coming quarter is $0.47 on revenues of $108.97 million, and for the current fiscal year, it is $1.83 on revenues of $435.57 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the top 22% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Net investment income per share for Q4 2024 was $0.48, with adjusted net investment income per share at $0.47, reflecting an annualized yield of 14.0%[2] - Total investment income for Q4 2024 was $103.8 million, down from $110.4 million in Q3 2024, primarily due to exits and downsizing of certain investments[3] - The company's distributable earnings showed a loss of $(373,670) as of December 31, 2024, compared to a loss of $(224,579) as of December 31, 2023, indicating a worsening of approximately 66.5%[15] - Investment income for the year ended December 31, 2024, was $434.37 million, compared to $454.91 million in 2023, reflecting a decrease of approximately 4%[16] - Interest income increased to $374.20 million in 2024 from $329.64 million in 2023, representing a growth of about 13.5%[16] - Net investment income before taxes was $257.85 million, compared to $252.08 million in 2023, showing a slight increase of about 2.9%[16] - Net investment income after taxes was $252.5 million, compared to $247.2 million in the previous period, reflecting an increase of approximately 2.6%[1] - The company reported net realized and unrealized gains (losses) on investment transactions of $(155.9) million, compared to $(49.4) million in the prior period, indicating a significant decline[1] Investment and Asset Management - Total investments at fair value and commitments reached $3,968.2 million, with 97.6% in senior secured debt[2] - New investment commitments totaled $173.0 million, with sales and repayments amounting to $187.5 million during the quarter[5] - As of December 31, 2024, investments on non-accrual status represented 2.0% of the total investment portfolio at fair value[6] - The weighted average yield on debt and income-producing investments at fair value was 14.1%[6] - The company aims to generate current income primarily through direct originations of secured debt, including first lien and mezzanine debt, as well as select equity investments[18] - The company focuses on investing primarily in middle-market companies in the United States[18] Debt and Equity - The company's ending net debt-to-equity ratio was 1.17x, slightly up from 1.16x in the previous quarter[2] - The company's total debt outstanding as of December 31, 2024, was $1,926,452, compared to $1,826,794 as of December 31, 2023, indicating an increase of about 5.5%[15] - The weighted average net debt-to-EBITDA ratio is calculated based on the fair value of debt investments, with 20.5% of total debt investments at fair value as of December 31, 2024, being potentially inappropriate measures of credit risk[14] - The ending net debt-to-equity leverage ratio is calculated using total borrowings net of cash and cash equivalents, excluding unfunded commitments as of December 31, 2024[14] Dividends - The company declared a base dividend of $0.32 per share for Q1 2025, with additional special dividends of $0.16 per share for the next two quarters[2] - The company declared a base dividend of $0.32 per share and a special dividend of $0.16 per share, payable on April 28, 2025, to stockholders of record as of March 31, 2025[13] Cash and Assets - Cash and cash equivalents increased to $61,795 as of December 31, 2024, up from $52,363 as of December 31, 2023, marking a growth of approximately 17.5%[15] - The total assets of the company increased to $3,603,383 as of December 31, 2024, from $3,522,819 as of December 31, 2023, reflecting a growth of approximately 2.3%[15] Expenses - Total expenses for the year were $176.52 million, a decrease from $204.81 million in 2023, indicating a reduction of approximately 13.8%[16] - The company reported net expenses of $176.52 million for 2024, down from $202.83 million in 2023, which is a decrease of approximately 13%[16] - The company experienced a significant increase in management fees, which rose to $35.23 million in 2024 from $32.54 million in 2023, reflecting an increase of approximately 8.2%[16] - Interest and other debt expenses totaled $113.71 million, slightly up from $111.30 million in 2023, indicating a marginal increase of about 2.2%[16] Forward-Looking Statements - The forward-looking statements indicate potential risks and uncertainties that could materially affect actual results, including factors identified in the "Risk Factors" section of SEC filings[18] - The company has no obligation to update or revise forward-looking statements unless required by law, emphasizing the uncertainty of future events[18] Management - The company is externally managed by Goldman Sachs Asset Management, L.P., which is a wholly-owned subsidiary of Goldman Sachs[18] Unrealized Gains and Losses - The net change in unrealized appreciation (depreciation) from non-controlled/non-affiliated investments was $(35.11) million, indicating a decrease in value[1] - The company reported a net increase (decrease) in net assets from operations of $62.86 million, compared to $19.58 million in the previous period[1]

Incentive Fees - For the years ended December 31, 2024 and 2023, Incentive Fees based on income amounted to $17.21 million and $49.42 million respectively, with the Investment Adviser waiving $1.99 million of Incentive Fees for 2023[105] - As of December 31, 2024, $6.33 million remained payable in Incentive Fees[105] - The Incentive Fee based on capital gains is calculated as 20% of the positive difference between aggregate realized capital gains and losses, excluding unrealized capital appreciation[106] - No Incentive Fees based on capital gains were accrued for the years ended December 31, 2024 and 2023[108] - In Quarter 1, the Incentive Fee based on income payable was $1.2 million, calculated from an Ordinary Income of $6.0 million exceeding the Hurdle Amount of $1.75 million[111] - In Quarter 2, the Incentive Fee based on income payable was $300,000, as the aggregate Ordinary Income for the Trailing Twelve Quarters exceeded the aggregate Hurdle Amount[112] - In Quarter 3, due to an aggregate Net Capital Loss of ($4.0) million, no Incentive Fee based on income was payable[113] - In Quarter 4, the Incentive Fee based on income payable was capped at $900,000 due to an aggregate Net Capital Loss of ($1.0) million[114] - The calculation of the Incentive Fee based on capital gains for Year 1 resulted in a fee of $1.0 million[118] Management Fees and Investment Management Agreement - The Board of Directors approved the continuation of the Investment Management Agreement, focusing on the quality of advisory services and comparative fee structures[120] - For the year ended December 31, 2024, the company paid a total of $59.08 million in fees to its Investment Adviser, a decrease from $70.22 million in 2023, representing a reduction of approximately 15%[122] - Management Fees for 2024 amounted to $35.16 million, while Incentive Fees were $23.92 million, compared to $35.83 million and $34.39 million respectively in 2023[122] - The Investment Management Agreement is set to continue until August 31, 2025, subject to annual approval by a majority of Independent Directors and the Board of Directors[123] Regulatory Compliance and Risk Management - The Investment Adviser is not liable for losses except in cases of willful misfeasance, bad faith, or gross negligence, which may lead to riskier investment behavior[124] - The company is subject to regulatory requirements under the Investment Company Act, including restrictions on transactions with affiliates and the need for majority approval for certain changes[132] - The company is required to adopt and implement written policies and procedures to prevent violations of federal securities laws and designate a chief compliance officer[158] - The Sarbanes-Oxley Act mandates that the principal executive officer and principal financial officer certify the accuracy of financial statements in periodic reports[159] - Compliance with the Bank Holding Company Act may impose restrictions on the company's investments and operations, potentially affecting its investment strategies[161] - The company is subject to supervision and regulation by the Federal Reserve, which may limit its ability to make certain investments[161] - There is a risk that regulatory requirements applicable to the company may change, potentially having a material adverse effect on its operations[161] Investment Strategy and Asset Management - The company may invest up to 100% of its assets in privately negotiated transactions, with specific limitations on investments in registered investment companies[134][135] - The company must maintain at least 70% of its total assets in qualifying assets as defined by the Investment Company Act[137] - The principal categories of qualifying assets include securities purchased in private transactions from eligible portfolio companies[137] - The company may invest in temporary investments such as cash equivalents and U.S. government securities to ensure that 70% of its assets are qualifying assets[142] - The company may borrow amounts up to 5% of the value of its total assets for temporary or emergency purposes without regard to asset coverage[143] - The company is permitted to issue multiple classes of indebtedness and one class of shares senior to common stock if the asset coverage ratio is at least 150% after issuance[143] - The Small Business Credit Availability Act allows the company to borrow amounts such that the asset coverage ratio is at least 150%, reduced from the previous requirement of 200%[143] Interest Rate Sensitivity - As of December 31, 2024, approximately 99.4% of the company's performing debt investments bore interest at a floating rate, while only 0.6% bore interest at a fixed rate[462] - The company expects that changes in interest rates will significantly impact its net investment income, particularly due to its reliance on borrowings for funding investments[461] - A 300 basis point increase in interest rates is projected to result in a net income increase of $60.31 million, while a 300 basis point decrease would lead to a net income decrease of $60.14 million[464] - The company regularly measures its exposure to interest rate risk and manages this exposure by comparing interest rate sensitive assets to liabilities[463] - The company may utilize hedging instruments such as futures, options, and forward contracts to mitigate interest rate fluctuations in the future[464] - The company’s borrowings under its Revolving Credit Facility bear interest at a floating rate, which adds to its interest rate sensitivity[462] Corporate Governance - The company’s common stock is listed on the NYSE under the symbol "GSBD" and is subject to various corporate governance listing standards[160] - The company has adopted a Code of Ethics to establish procedures for personal investments and restrict certain personal securities transactions[144] - The company has delegated the voting of portfolio securities to its Investment Adviser, which has adopted a Proxy Voting Policy to maximize stockholder value[146]

man Alternatives Goldman Sachs BDC, Inc. Investor Presentation QUARTER ENDED SEPTEMBER 30, 2024 WWW.GOLDMANSACHSBDC.COM Disclaimer and Forward-Looking Statement The information contained in this presentation should be viewed in conjunction with the earnings conference call of Goldman Sachs BDC, Inc. ("GSBD" or the "Company") (NYSE: GSBD) held on November 8, 2024, and the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024. The information contained herein may not be used, reprod ...

Financial Data and Key Metrics Changes - The net investment income per share for Q3 2024 was $0.58, and the net asset value per share was $13.54, a decrease of approximately 1% from the previous quarter due to net realized and unrealized losses [8] - GAAP and adjusted after-tax net investment income for Q3 2024 were $68.2 million and $67.2 million respectively, compared to $67 million and $65.2 million in the prior quarter [24] - Total investment income for Q3 2024 was $110.4 million, an increase from $108.6 million in Q2 2024, primarily due to incremental deployment [25] Business Line Data and Key Metrics Changes - Gross originations more than doubled year-over-year, totaling approximately $376.6 million in 34 new investment commitments [11][13] - Sales and repayments activity increased by 45% from the prior quarter, totaling $329 million, with 72% of repayments coming from 2021 and older vintages [12] Market Data and Key Metrics Changes - Sponsor M&A volumes grew by 17.5% year-over-year in Q3 2024, driven by $1.4 trillion of private equity dry powder [9] - The weighted average yield of the investment portfolio at amortized cost was 10.9%, down from 11% in the prior quarter [18] Company Strategy and Development Direction - The company is focused on recycling older vintage investments into new originations, with a proactive portfolio management strategy [12][15] - The management anticipates a rebound in M&A activity in 2025, supported by the Goldman Sachs ecosystem [10][15] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about M&A activity post-election, indicating a positive sentiment in the market [31] - The company expects to be busy assessing new opportunities in Q1 2025, with actual deployment likely occurring in Q2 or later [36] Other Important Information - The company declared a fourth-quarter dividend of $0.45 per share, marking the 39th consecutive quarter of this dividend [8] - Investments on non-accrual status decreased to 2.2% of the total investment portfolio at fair value from 3.4% in the previous quarter [21] Q&A Session Summary Question: Recycling opportunities in the portfolio - Management noted a strong quarter of sales and repayments, with full exits in at least four portfolio companies from 2021 or earlier, indicating a positive pace of repayments and recycling [28] Question: Re-pricing activity in the portfolio - Management observed a stabilization in spreads during the quarter, with expectations for a slowdown in re-pricing activity [30] Question: Outlook for M&A activity post-election - Management reported an energetic and optimistic sentiment regarding M&A activity, particularly from the sponsor community, expected to increase in 2025 [31] Question: Credit quality and risk rating changes - A slight increase in risk-rated 3 and 4 categories was attributed to one underperforming name in the business services sector [33][34]

分组1 - Goldman Sachs BDC reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, but down from $0.64 per share a year ago, representing an earnings surprise of 1.75% [1] - The company posted revenues of $110.41 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.79%, and down from $120.06 million year-over-year [2] - Goldman Sachs BDC shares have declined approximately 10.2% year-to-date, contrasting with the S&P 500's gain of 24.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $114.25 million, and for the current fiscal year, it is $2.19 on revenues of $446.82 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - Net investment income per share for Q3 2024 was $0.58, with adjusted net investment income per share at $0.57, resulting in an annualized net investment income yield of 16.8%[2] - Total investment income for Q3 2024 was $110.4 million, an increase from $108.6 million in Q2 2024, attributed to higher levels of new originations[4] - The company reported net investment income after taxes of $68,182 for the three months ended September 30, 2024, compared to $72,949 for the same period in 2023, reflecting a decrease of approximately 10.5%[16] - Total investment income for the three months ended September 30, 2024, was $110,413, a decrease from $120,056 in the same period of 2023[16] - Basic and diluted net investment income per share was $0.58, down from $0.67 in the previous period[17] - Basic and diluted earnings (loss) per share was $0.32, compared to $0.47 in the previous period[17] Investment and Debt - Total investments at fair value and commitments as of September 30, 2024, were $4,017.5 million, with 97.6% in senior secured debt[2] - The weighted average yield on debt and income-producing investments at fair value was 13.9% as of September 30, 2024[8] - As of September 30, 2024, 66.7% of the company's $1,887.8 million total debt outstanding was unsecured[2] - Total debt outstanding as of September 30, 2024, was $1,878,107, up from $1,826,794 as of December 31, 2023[14] - The total liabilities increased to $1,959,406 as of September 30, 2024, compared to $1,920,994 as of December 31, 2023[14] Asset Valuation - The net asset value (NAV) per share decreased by 1.0% to $13.54 from $13.67 as of June 30, 2024[2] - The net asset value per share decreased to $13.54 as of September 30, 2024, down from $14.62 at the end of 2023[14] - Investments on non-accrual status represented 2.2% of the total investment portfolio at fair value as of September 30, 2024[8] Dividends - The company declared a regular fourth quarter 2024 dividend of $0.45 per share, payable to shareholders of record as of December 31, 2024[2] - The company declared a dividend of $0.45 per share, payable on January 27, 2025, to stockholders of record as of December 31, 2024[12] Operational Metrics - Gross originations during the quarter were approximately $376.6 million, with net funded investment activity of $(69.4) million[2] - The company's ending net debt-to-equity ratio improved to 1.16x as of September 30, 2024, down from 1.19x as of June 30, 2024[2] - The weighted average net debt to EBITDA ratio for portfolio companies was not specified but is calculated based on fair value of debt investments[12] Market and Management - The company primarily invests in middle-market companies in the United States through secured and unsecured debt[18] - The company is externally managed by Goldman Sachs Asset Management, L.P.[18] - Forward-looking statements indicate potential risks and uncertainties that could materially affect actual results[19] - Investor contact for inquiries is Austin Neri at 212-902-1000[20] Gains and Losses - Net realized and unrealized gains (losses) totaled $(30,865,000), compared to $(21,292,000) in the previous period[17] - Net change in unrealized appreciation (depreciation) from non-controlled/non-affiliated investments was $56,413,000, compared to $(17,813,000) in the previous period[17] - Net increase in net assets from operations was $37,081,000, compared to $51,595,000 in the previous period[17] Share Metrics - Weighted average shares outstanding increased to 116,942,390 from 109,535,156 in the previous period[17] - The company had an investment of $1.5 million in a money market fund as of September 30, 2024[12]

Financial Performance - The company originated approximately $8.51 billion in aggregate principal amount of debt and equity investments from its formation in 2012 through September 30, 2024[166]. - As of September 30, 2024, the total investments amounted to $3,640.33 million, with a fair value of $3,442.13 million[177]. - The company primarily generates revenue through interest income from investments, with additional income from various fees and capital gains[171]. - Total investment income for the three months ended September 30, 2024, was $110.41 million, compared to $120.05 million for the same period in 2023, representing a decrease of 6.8%[190]. - Net investment income after taxes for the three months ended September 30, 2024, was $68.18 million, down from $72.95 million in the prior year, a decline of 6.5%[190]. - The company’s total investment income for the nine months ended September 30, 2024, was $330.57 million, slightly down from $339.54 million in the previous year[193]. - The company declared a quarterly distribution of $0.45 per share payable on January 27, 2025, to holders of record as of December 31, 2024[223]. Investment Portfolio - The portfolio includes $3,273.04 million in first lien/senior secured debt, with a fair value of $3,153.30 million as of September 30, 2024[177]. - The number of portfolio companies increased to 167 as of September 30, 2024, from 144 as of December 31, 2023[180]. - The median EBITDA for portfolio companies was $62.49 million as of September 30, 2024, up from $53.98 million as of December 31, 2023[180]. - Performing investments accounted for 95.5% of total investments as of September 30, 2024, down from 96.2% as of December 31, 2023[185]. - The percentage of investments graded 3 or 4 (indicating higher risk) was 9.5% as of September 30, 2024, compared to 10.4% as of December 31, 2023[184]. - The company invests primarily in U.S. middle-market companies, defined as those with annual EBITDA between $5 million and $200 million[166]. Debt and Financing - The company is permitted to borrow amounts such that its asset coverage ratio is at least 150% after borrowing, subject to Investment Company Act limitations[176]. - As of September 30, 2024, the asset coverage ratio based on the aggregate amount outstanding of senior securities was 183%, indicating a strong leverage position[203]. - The Revolving Credit Facility has an aggregate committed borrowing amount of $1,695 million, with an uncommitted accordion feature allowing an increase to $2,542.50 million under certain conditions[210]. - As of September 30, 2024, the company had outstanding borrowings of $524.67 million in USD, €0 million in Euros, £30.95 million in GBP, and CAD 83.52 million in Canadian Dollars[209]. - The company closed an offering of $360 million aggregate principal amount of 3.75% unsecured notes due 2025, maturing on February 10, 2025[213]. - The company issued $500 million aggregate principal amount of 2.875% unsecured notes due 2026, maturing on January 15, 2026[214]. - The company completed an offering of $400 million aggregate principal amount of 6.375% unsecured notes due 2027, maturing on March 11, 2027[215]. Risk Management - The company may originate "covenant-lite" loans, which have fewer financial maintenance covenants, potentially increasing risk in case of borrower default[166]. - The company regularly evaluates unfunded commitments using a proprietary risk management framework to plan capital resources and ongoing liquidity[203]. - Approximately 99.4% of the company's performing debt investments bore interest at a floating rate as of September 30, 2024[225]. - A 300 basis point increase in interest rates would result in a net income increase of $61.52 million, while a 300 basis point decrease would lead to a net income decrease of $61.52 million[226]. Management and Fees - The management fee and incentive fee compensate the investment adviser for identifying, evaluating, and monitoring investments[173]. - Management fees remained relatively stable at $8.85 million for the three months ended September 30, 2024, compared to $8.87 million for the same period in 2023[194]. Changes in Investments - The net increase in portfolio for the three months ended September 30, 2024, was $47.77 million, compared to a decrease of $88.96 million in the same period last year[188]. - The total new investment commitment amount in new portfolio companies was $157.34 million, significantly up from $49.12 million in the prior year, an increase of 219.5%[188]. - The total new investment commitment amount in existing portfolio companies was $219.48 million, up from $119.28 million, reflecting an increase of 84.0%[188]. - The weighted average yield on new investment commitments was 9.9% for the three months ended September 30, 2024, down from 11.6% in the same period last year[188]. - The number of new portfolio companies with new investment commitments increased to 15 from 8 in the prior year, indicating a growth of 87.5%[188]. Unrealized Gains and Losses - Net realized and unrealized gains (losses) for the three months ended September 30, 2024, were $(30.87) million, compared to $(21.29) million in the same period last year[191]. - The net change in unrealized appreciation on investments was $56.06 million for the three months ended September 30, 2024, compared to a depreciation of $19.90 million for the same period in 2023[197]. - Unrealized depreciation for the nine months ended September 30, 2024, was $121.01 million, while unrealized appreciation was $84.49 million[197]. - The restructuring of investments in Pluralsight, Inc. and the sale of Zodiac Intermediate, LLC contributed significantly to the net change in unrealized appreciation for the three months ended September 30, 2024[200]. - The company experienced a significant realized loss of $43.25 million from the restructuring of investments in Pluralsight, Inc. during the nine months ended September 30, 2024[195].

Financial Data and Key Metrics Changes - The net investment income per share for Q2 2024 was $0.59, an increase of 7.3% from the previous quarter [5] - The net asset value (NAV) per share decreased to $13.67, a decline of approximately 6% [5] - The total investment income for Q2 2024 was $108.6 million, down from $111.5 million in Q1 2024 [16] - The weighted average yield of the investment portfolio decreased to 11% from 11.9% in the prior quarter [13] - The weighted average net debt-to-EBITDA ratio remained flat at 6.1 times [13] Business Line Data and Key Metrics Changes - The company originated $440 million in new investment commitments during the quarter, marking the highest level of originations since the integration of the Goldman Sachs private credit platform [12] - As of June 30, 2024, total investments in the portfolio were $3.52 billion, with 98% in senior secured loans [13] - Investments on nonaccrual status increased to 3.4% of the total investment portfolio at fair value from 1.6% as of March 31, 2024 [14] Market Data and Key Metrics Changes - The company experienced significant growth in originations, with investment activity up nearly four times on a dollar basis compared to the first half of 2023 [12] - The current weighted average interest coverage of the companies in the investment portfolio remained flat at 1.5 times [13] Company Strategy and Development Direction - The company aims to continue recycling capital and bolstering the portfolio with compelling new originations [8] - The focus remains on highly profitable borrowers with strong growth and best-in-class technology, particularly in recurring revenue loans [6][20] - The company is leveraging its integration into the broader Goldman Sachs private credit platform to enhance origination capabilities [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maximizing shareholder value despite markdowns in the quarter [18] - The improving M&A environment is expected to contribute positively to future origination opportunities [9] - Management acknowledged the challenges faced by certain portfolio companies but emphasized a selective approach to new investments [20] Other Important Information - The Board declared a third-quarter dividend of $0.45 per share, marking the company's 38th consecutive quarter of this dividend [9] - The company has $1 billion of capacity available under its secured revolving credit facility [15] Q&A Session Summary Question: On ARR loans, is the EBITDA flip a catalyst for credit events? - Management indicated that EBITDA flips could be a factor in underperformance, as companies may cut back on essential spending to generate EBITDA [19] Question: What is the target leverage profile? - The target leverage remains around 1.25 times, with the company finishing the quarter at 1.09 times, indicating capacity for new loans [21] Question: Are there changes in the approach to recurring revenue loans? - Management confirmed that the approach to recurring revenue loans has not changed, focusing on companies with best-in-class technology and sustainable growth [23] Question: Can you clarify the deal flow increase? - Management noted that both the quantity and quality of deals have improved, with a significant increase in originations compared to the previous year [24] Question: What is the comfort level with PIK income? - Management expressed comfort with current PIK levels, noting a slight decrease but indicating it would normalize below 10% [26] Question: What caused the decline in portfolio yield? - The decline in yield was primarily due to the impact of nonaccruals on income [27]