Core Insights - The company achieved a record loan production of $739 million in Q3, representing a 32% net increase year over year after accounting for prepayments [1][4][7] - Net income increased by 60% year over year, with core diluted EPS at $0.69 per share [2] - The nonperforming loan (NPL) rate decreased to 9.8%, down from 10.6% in the previous quarter, indicating stable asset quality [1][11] Production and Financial Performance - Loan production for Q3 was $739 million, surpassing the previous quarter's record of $725 million, with a total of 1,778 loans originated [7] - New applications exceeded $1.4 billion for the quarter, reflecting strong demand for the company's products [4] - The weighted average coupon on new held-for-investment originations was 10%, consistent with the last five-quarter average of 10.6% [7][8] Portfolio and Asset Management - The total loan portfolio reached just under $6.3 billion in unpaid principal balance (UPB), marking a 7.1% increase from Q2 and a 32% increase year over year [8] - The weighted average loan-to-value ratio remained low at 65.5%, indicating disciplined credit practices [4][10] - Nonperforming asset resolution gains totaled $2.8 million, averaging 3.8% quarterly over the last five quarters [11] Capital and Liquidity - The company maintained a strong portfolio net interest margin (NIM) at 3.65%, consistent with the last five-quarter average [10] - Total liquidity as of September 30 was just under $144 million, with over $600 million in available warehouse capacity [13][14] - The company is focused on compounding earnings by reinvesting profits back into the platform and portfolio [5][6] Strategic Initiatives - The company closed its first-ever single counterparty securitization with a top-tier money manager, which is expected to reduce transaction costs and diversify funding options [3] - The management expressed optimism about future earnings growth, citing healthy market conditions and robust capital markets, particularly in fixed income [15]