Florida-based AFC Gamma Inc. (Nasdaq: AFCG) reported net income of just $8 million for the quarter that ended Sept. 30, a drop of more than 50% from the second quarter, when the company reported $12.1 million in net income.
The results were also down significantly year-over-year, from $11.4 million in income for Q3 in 2022.
In its quarterly regulatory filing the company attributed the decline to a decrease in interest income, from lower fees collected and two months of nonaccrual for a client.
Earlier this year, AFC Gamma leadership earlier this year said that the cannabis industry has proven challenging to navigate, and the business had already sold some of its credit facilities as a result.
AFC Gamma distributed $9.8 million in dividends to shareholders on Oct. 13, the equivalent of $0.48 per share.
After the end of the quarter, the company also announced the appointment of Daniel Neville as CEO, effective Oct. 30. Neville most recently served as chief financial officer at multistate marijuana operator Ascend Wellness Holdings Inc. (TSX: TSND) (OTCQX: TSNDF).
“As the company solidifies its position as a leading institutional lender in the industry, we look forward to lending to additional borrowers that aim to take advantage of cannabis 3.0,” outgoing CEO Leonard Tannenbaum said in a statement. “Adding Dan gives us additional capacity to support our existing borrowers and expand our platform to support well-capitalized operators expanding within the industry.”