Financial Data and Key Metrics Changes - The company achieved a record net effective spread of $97.8 million and core earnings of $49.6 million for Q3 2025 [6][25] - Year-to-date net effective spread and core earnings reached $281 million and $143 million, respectively, reflecting double-digit year-over-year growth [7][25] - The total allowance for losses was $37.2 million, or 12 basis points of total outstanding business volume, indicating a well-diversified portfolio [11][13] Business Line Data and Key Metrics Changes - The infrastructure finance line of business grew by $600 million to $11 billion, driven by strong interest in data centers and renewable energy projects [17] - The renewable energy segment more than doubled year-over-year to $2.3 billion, with expectations for continued growth [18] - The broadband infrastructure segment also doubled year-over-year to $1.3 billion, reflecting increased demand for data centers [20] Market Data and Key Metrics Changes - The agricultural finance portfolio showed strong loan purchase growth, with a $285 million increase in the farm and ranch loan purchase portfolio [21] - Despite market uncertainties, the company reported stable credit quality metrics, with a modest uptick in 90-day delinquencies attributed to seasonal impacts [11][12] Company Strategy and Development Direction - The company is focused on diversifying its loan portfolio into newer lines of business, including renewable energy and broadband infrastructure, to enhance growth and resilience [7][14] - A successful preferred stock issuance strengthened the capital base, supporting long-term growth objectives [4][13] - The securitization program is a strategic initiative aimed at optimizing the balance sheet and enhancing growth opportunities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall health of the portfolio, citing strong asset quality metrics despite market volatility [4][12] - The company anticipates continued growth in its diversified business segments, particularly in infrastructure finance and renewable energy [18][24] - Management noted that they have not seen significant effects on the portfolio from political developments or government actions [12] Other Important Information - The company repurchased approximately 30,000 shares of Class C common stock for about $5 million, demonstrating a commitment to returning capital to shareholders [15][68] - The company is in the process of searching for a new CFO, with expectations for an announcement in the fourth quarter of 2025 [26] Q&A Session Summary Question: Outlook for spreads given Fed rate cuts - Management indicated that a cut in interest rates by the Fed should have no impact on the net effective spread due to their asset-liability management strategy [29][30] Question: Impact of tariffs on agriculture - Management noted that while there are financial pressures in major crops, they have not seen significant impacts on their portfolio, and market stabilization payments are expected soon [41][45] Question: Changes in loan structure and prepayment expectations - Management confirmed an increase in loan applications and approvals, with a focus on new money loans, and indicated that prepayments are expected to remain low [52][58] Question: Credit provision levels and charge-offs - Management characterized the credit provision as episodic and not indicative of systemic risks, with a mix of growth and specific allowances impacting the current levels [36][66]

Financial Data and Key Metrics Changes - The company achieved record net effective spread of $97.8 million and core earnings of $49.6 million for Q3 2025, with year-to-date net effective spread and core earnings at $281 million and $143 million respectively, reflecting double-digit year-over-year growth [5][6][22] - The total allowance for losses was $37.2 million, or 12 basis points of total outstanding business volume, indicating a well-diversified portfolio [11][12] Business Line Data and Key Metrics Changes - The infrastructure finance line of business grew by $600 million to $11 billion, driven by strong interest in data centers and renewable energy projects [16][19] - The renewable energy segment more than doubled year-over-year to $2.3 billion, with expectations for continued growth supported by a strong near-term pipeline [17] - The broadband infrastructure segment also doubled year-over-year to $1.3 billion, reflecting increased demand for data centers [18] Market Data and Key Metrics Changes - The agricultural finance portfolio reflected strong loan purchase growth, with the farm and ranch loan purchase portfolio growing by $285 million in Q3 2025 [19][20] - Despite market uncertainties, the company reported stable credit quality metrics, with a modest uptick in 90-day delinquencies attributed to seasonal impacts [11][22] Company Strategy and Development Direction - The company is focused on diversifying its loan portfolio into newer lines of business such as renewable energy and broadband infrastructure, which are seen as key growth areas [6][14] - The securitization program is a strategic initiative aimed at optimizing the balance sheet and enhancing growth opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall health of the portfolio, citing strong asset quality metrics and a diversified business model [4][12] - The company anticipates continued growth in its various segments despite market volatility and uncertainties [22] Other Important Information - The company successfully issued $100 million of Series H preferred stock, strengthening its capital position and improving its Tier 1 capital ratio to 13.9% [12][13] - The company repurchased approximately 30,000 shares of Class C common stock for about $5 million, demonstrating a commitment to returning capital to shareholders [14] Q&A Session Summary Question: Outlook for spreads given Fed rate cuts - Management indicated that a cut in interest rates by the Fed should have no impact on the net effective spread due to their asset-liability management strategy [25][26] Question: Credit provision levels - Management noted that the current provision levels are low compared to other financial institutions and reflect episodic events rather than systemic risks [31][32] Question: Impact of tariffs on agriculture - Management clarified that while there are financial pressures in major crops, they have not seen significant negative impacts on their portfolio, and market stabilization payments are expected soon [36][37] Question: Loan structure and prepayment expectations - Management stated that they are seeing significant increases in loan applications and approvals, with a mix of fixed and variable rate loans, and prepayment speeds are expected to remain low [41][45]