·

Core earnings of $10.1 million, or $0.30 per share of common stock

·

Net income of $9.6 million, or $0.28 per share of common stock 

·

Declared dividend of $0.30 per share of common stock. Total dividends declared year-to-date represent a 9.9% annualized dividend yield based on December 31, 2015 book value per share of common stock

·

Net Book Value of $14.38 per share of common stock as of September 30, 2016 

·

Completed merger with ZAIS Financial Corp on October 31, 2016 increasing the Company’s stockholders’ equity to approximately $561 million and delivering liquidity to stockholder base

·

Pro-forma Net Book Value of $17.07 per share of common stock, post-closing of the ZAIS merger

·

Originated $153.6 million of loans during the quarter

·

Robust pipeline with substantial acquisition opportunities

(in millions)

Net Income

$

Reconciling items:

Unrealized (gain) loss on mortgage-backed securities

Merger transaction costs

Employee severance

Total reconciling items

Core earnings

$

Supplemental Financial Data 3Q16

SutherLand Asset Management

Disclaimer This presentation contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; Sutherland Asset Management Corporation (the "Company") can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include those set forth in the Risk Factors section of the Company's Registration Statement on Form S-4, the most recent Annual Report on Form 10-K filed with the SEC on March 10, 2016, Form 10-K/A filed with the SEC on April 29, 2016 and other reports filed by the Company with the SEC, copies of which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. This presentation includes certain non-GAAP financial measures, including Core Earnings. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures in accordance with GAAP. Please refer to Appendix A for the most recent GAAP information. This presentation also contains market statistics and industry data which are subject to uncertainty and are not necessarily reflective of market conditions. These have been derived from third party sources and have not been independently verified by the Company or its affiliates. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. All data is as of September 30, 2016, unless otherwise noted. 1 SutherLand Asset Management

Return on Equity Business Line Levered Yield(1) Equity Allocation Acquisitions 15.7% 31.0% SBC Conventional Originations 13.0% 49.2% SBA Originations, Acquisitions & Servicing 28.6% 19.8% Cash and Other Non-earning Assets, Net Non-earning Equity Realized & Unrealized Gain, net Operating Expenses Investment advisory fees Provision for income taxes Non-recurring expenses Return on Equity Net ROE 16.9% (2.5%) 6.7% (9.6%) (1.5%) (1.1%) (1.0%) 7.9% Core Earnings 16.9% (2.5%) 6.1% (9.6%) (1.5%) (1.1%) -- 8.3% 5 Levered yields are based on net interest income and net servicing income for the quarter ended 09/30/2016 on an annualized basis, which reflects contractual interest rates, accretion of discount and servicing income net of interest expense and amortization of deferred financing costs on an annualized basis

SBC Conventional Originations ► Originations of $140 million, a 31% increase quarter over quarter ► Origination pipeline of $154 million ► Post-election rise in 10-year Treasury yields likely to benefit SBC conventional originations ► Completed repo facility with KeyBank to fund Freddie Mac originations Number of loans 258 Unpaid principal balance $703,916 Carrying value $721,059 Weighted average LTV 67% Weighted average interest rate 6.0% Weighted average maturity 68 months Weighted average UPB $2,278,358 Percentage of loans fixed/floating 96% / 4% Percentage of loans perf./non-perf. 100% / 0% Portfolio Metrics Gross Levered Yield 7 12.5% 12.3% 14.0% 15.0% 11.6% 13.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Sutherland Asset Management

Quarterly Investment Allocation (Dollars in thousands) Acquisitions Originations SBC Freddie MAC Transitional SBA Total Gross investments $25,832 $51,597 $48,759 $39,681 $13,521 $153,558 Number of loans 102 23 23 8 15 69 Average balance(1) $279 $3,623 $2,120 $9,915 $901 $4,500 Gross Yield(2) 7.2% 6.2% 4.3%(3) 6.6% 5.9%(4) 5.7% Weighted average duration(1) 135 months 66 months 178 months 28 months 255 months 109 months FX / ARM 8% / 92% 37% / 63% 41% / 59% 6% / 94% 0% / 100% 27% / 73% Avg. Advance Rate 70% 70% 100% 52% 74% 68% Debt Cost Libor + 300 Libor + 225 Libor + 175 Libor + 200-250 Libor + 350 Libor + 231 Based on fully funded loan amount Gross yield equals contractual interest rates and accretion of discount based on Sutherland’s estimates of loan performance where applicable Please refer to slide 28 for summary of Freddie Mac return profile Please refer to slide 27 for summary of SBA 7(a) return profile 9

Net Interest Margin(1) Contribution by Operating Segment 10 Net interest margin is based on interest income and net servicing income, which reflects contractual interest rates, accretion of discount and servicing income net of interest expense, which reflects contractual interest rates, and deferred financing amortization 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Acquired Originated SBA

Top 10 Loans 5.5% Sub. Mt . 5% Oth r 2% CA 16% Other 31% TX 14% GEOGRAPHIC DIVERSIFICATION LOAN SIZE LIEN POSITION IL 3% PA 3% FL 11% NC 3% AZ 5% NY 9% GA 5% First Mtg. 93% Remaining 94.5% 12 PORTFOLIO COMPOSITION AS OF 09/30/2016

loans 7(a) loans and newly originated SBA loans loans, CRE bridge loans and acquired CRE 2.5 2 1.5 1 0.5 0 2.0x 2.0x 2.0x 2.0x 1.9 x 1.9x 1.8x 1.3x Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Recourse Total (1) Excludes reverse repurchase agreement secured by U.S. Treasuries and guaranteed loan financings13 1.4x 1.4x 1.2x 1.1x 1.1x 1.2x BANK RATE TERM FACILITY SIZE AVAILABLE CAPACITY DESCRIPTION Deutsche Bank L + 225(1) 1 – Year $275 million $115 million Master repurchase agreement used to finance newly originated SBC Citibank L + 300 1 – Year $200 million(3) $135 million Master repurchase agreement used to finance legacy SBC loans J.P. Morgan L + 350 2 – Year $250 million $45 million Credit facility to fund CIT loan acquisition, legacy SBA 504 and J.P. Morgan L + 200 – 250(2) 2 – Year $100 million $58 million Master repurchase agreement used to finance newly originated SBC KeyBank L + 175 1 – Year $50 million $27 million Credit facility to fund Freddie Mac Small Balance originations Total $875 million $380 million HISTORICAL LEVERAGE(1) FINANCING AND LEVERAGE

The Company is actively pursuing various strategies to optimize financial results. Except as noted, no assurance can be given that such strategies will be successfully implemented. LOW END HIGH END Q316 Core ROE Subsidiaries directly to the REIT. The pro forma information above is presented for illustrative purposes only based on hypothetical events and should not be relied upon for any investment decis cert borrowings, to purchase additional interest earning assets that will generate net interest income over the quarterly period after origination or purchase that is comparable to the net interest income generated by Sutherland over the three-month period ended September 30, 2016 as well as other expense reduction measures. The generation of net interest income at the hypothetical levels illustrated in the above table is based on certain assumptions, including those related to asset allocation, asset selection, leverage, asset yields, financing, hedging costs and expenses. Actual results will vary from the hypothetical returns illustrated in the above table based on the timing of asset originations or purchases and/or asset sales and the returns generated by the interest earning assets that are in fact originated or purchased. Such actual returns will also be impacted by economic and market factors and will be subject to a variety of risks and uncertainties. In no circumstances should the hypothetical returns illustrated in the above table be regarded as a representation, warrant y or prediction that any interest earning assets will reflect any particular performance or that they will achieve or are likely to achieve any particular result or that stockholders will be able to avoid losses, including total loss of their investment. 14 Sutherland currently in process of potentially four financing transactions, which, if executed, will provide additional leverage: a) Note Offering b) 11/2016 conventional loan securitization c) 12/2016 owner occupied loan securitization d) 1Q17 transitional loan CLO Staff reductions made in 3Q16 Sutherland is evaluating opportunities to transfer taxable income from Taxable REIT Implementation of various strategies to reduce the level of non-earning assets. Potential Core ROE 8.3% 3.0% 0.4% 0.7% 0.4% 12.8% ain debt offerings, together with additional 8.3% 0.6% 0.4% 0.5% 0.2% 10.0% ion. The pro forma assumes that Sutherland completes ILLUSTRATIVE PRO-FORMA RETURN ON EQUITY

AVG. CARRYING VALUE AVG. DEBT BALANCE LEVERED INVESTMENT TYPE GROSS YIELD(1) DEBT COST(2) (3) YIELD Book Equity Value per Common Share Pro-forma Earnings per Common Share 15 accretion of discount and servicing income expense is calculated based on interest expense and deferred financing amortization for the quarter ended 09/30/2016 on an annualized basis. (3) Levered yields are based on net interest income and net servicing income for the quarter ended 09/30/2016 on an annualized basis, which reflects contractual interest rates, accretion of discount and servicing income net of interest expense and amortization of deferred financing costs on an annualized basis (1) Gross yields are based on interest income and net servicing income for the quarter ended 09/30/2016 on an annualized basis, which reflects contractual interest rates, (2) Sutherland finances the assets included in the Investment Type through securitizations, repurchase agreements, warehouse facilities and bank credit facilities. Interest GAAP earnings $8,794 GAAP earnings per Common Share $0.28 ROE per Common Share 7.9% Dividend yield (on beginning book value per share) 8.3% $521,055 30,521,844 $17.07 Common Stockholders’ equity $445,233 Total Common Shares outstanding 30,960,370 Book value per Common Share $14.38 Acquired portfolio $462,596 8.2% $334,972 5.3% 15.7% SBC conventional origination portfolio $696,403 6.6% $493,919 4.0% 13.0% SBA Originations, Acquisitions & Servicing $613,766 6.5% $532,005 3.2% 28.6% Total $1,772,765 7.0% $1,360,896 4.0% 16.9% SUTHERLAND SNAPSHOT

Historical Financial Performance 17 Refer to slide 20 for a reconciliation of GAAP earnings to Core earnings $0.40 $0.27 $0.27 $0.26 $0.28 $0.40 $0.43 $0.31 $0.27 $0.30 $0.35 $0.50 $0.38 $0.38 $0.30 $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 $ Per share Earnings Core earnings (1) Dividend declared

Sutherland Asset Management

Balance Sheet by Quarter 18 (In millions, except per share values) 9/30/2015 12/31/2015 3/31/2016 6/30/2016 9/30/2016 Assets Cash and cash equivalents $ 80.3 $ 41.6 $ 59.9 $ 55.0 $ 38.5 Restricted cash 27.7 14.8 16.7 14.7 15.9 Short term investments 250.0 250.0 250.0 250.0 250.0 Loans, held at fair value 360.8 155.1 174.3 212.9 233.6 Loans held for sale, at fair value - - - - 23.3 Loans, held-for-investment 847.3 927.2 899.5 939.0 923.5 Mortgage backed securities, at fair value 205.0 213.5 117.1 27.0 34.8 Real estate acquired in settlement of loans 11.4 8.2 6.7 8.0 6.3 Derivative instruments, at fair value (asset) 1.5 0.7 0.7 0.6 0.4 Servicing rights 30.3 27.3 26.0 24.4 23.4 Assets of consolidated VIEs 478.9 649.0 622.7 577.5 554.3 Other assets 55.0 42.4 43.7 38.2 44.7 Total Assets $ 2,348.2 $ 2,329.8 $ 2,217.3 $ 2,147.3 $ 2,148.7 Liabilities Borrowings under credit facilities 112.0 175.3 161.4 191.0 228.0 Promissory note payable - - - 9.2 9.0 Securitized debt obligations of consolidated VIEs 361.2 461.5 435.0 401.8 374.8 Borrowings under repurchase agreements 769.0 644.1 614.6 568.8 581.8 Guaranteed loan financing 528.1 499.2 470.6 439.5 415.4 Repair and denial reserve 13.0 8.1 6.6 6.5 6.8 Accrued salaries, wages and commissions 5.5 7.1 3.0 4.0 5.5 Derivative instruments, at fair value (liabilities) 5.9 1.5 3.7 4.4 3.4 Accounts payable and other accrued liabilities 59.4 52.8 33.1 34.2 39.4 Total Liabilities $ 1,854.1 $ 1,849.6 $ 1,728.0 $ 1,659.4 $ 1,664.1 Stockholders’ Equity Additional paid-in capital 442.6 447.2 447.2 449.5 449.5 Retained earnings (deficit) 12.4 (5.9) 2.5 (1.3) (4.3) Sutherland Asset Management Corporation Equity 455.0 441.3 449.7 448.2 445.2 Non-controlling interests 39.1 38.9 39.6 39.7 39.4 Total Stockholders' Equity 494.1 480.2 489.3 487.9 484.6 Total Liabilities andStockholders' Equity $ 2,348.2 $ 2,329.8 $ 2,217.3 $ 2,147.3 $ 2,148.7 Book Value per Share $ 14.90 $ 14.32 $ 14.59 $ 14.47 $ 14.38

Sutherland Asset Management

Statement of Income by Quarter 19 (In millions, except per share values) Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Interest income Loans, held-for-investment $ 31.6 $ 32.0 $ 32.3 $ 30.8 $ 27.0 Loans, held at fair value 5.0 3.8 3.4 2.7 3.9 Loans, held for sale, at fair value - - - - 0.2 Mortgage backed securities, at fair value 3.0 3.1 2.2 1.0 0.8 Total interest income 39.6 38.9 37.9 34.5 31.9 Interest expense Borrowings under credit facilities (1.4) (1.3) (2.0) (2.1) (2.5) Securitized debt obligations (2.9) (3.7) (4.5) (4.4) (4.2) Borrowings under repurchase agreements (4.4) (4.0) (3.9) (3.7) (4.1) Guaranteed loan financing (4.9) (4.1) (3.9) (3.4) (3.3) Total interest expense (13.6) (13.1) (14.3) (13.6) (14.1) Net interest income before provision for loan losses 26.0 25.8 23.6 20.9 17.8 Provision for loan losses (4.1) (4.1) (2.2) (2.0) (0.5) Net interest income after provision for loan losses 21.9 21.7 21.4 18.9 17.3 Other income (expense) Other income 4.0 4.4 2.3 1.3 1.7 Servicing income, net of amortization and impairment 1.0 (0.3) 1.4 1.3 1.7 Employee compensation and benefits (5.5) (6.4) (6.0) (4.2) (5.7) Professional fees (1.5) (1.1) (1.8) (3.7) (3.1) Management and incentive fees (2.6) (1.6) (1.8) (1.8) (1.8) Loan servicing expense (0.7) (1.0) (0.9) (1.2) (1.8) Operating expenses (3.6) (3.1) (3.8) (4.8) (3.4) Total other income (expense) (8.9) (9.1) (10.6) (13.1) (12.4) Realized gain (loss) 3.0 (2.2) 0.2 1.1 2.5 Unrealized gain (loss) (0.3) 2.8 (0.3) 2.6 3.5 Net income before income tax (expense) benefit and discontinued operations 15.7 13.2 10.7 9.5 10.9 Gain (loss) from discontinued operations 0.3 (1.6) (0.4) - - Income tax (expense) benefit (2.6) (2.7) (1.2) (0.9) (1.3) Net income after tax (expense) benefit and discontinued operations 13.4 8.9 9.1 8.6 9.6 Less: Net income attributable to non-controlling interests 1.1 0.7 0.7 0.7 0.8 Net income attributable to Common Shareholders $ 12.3 $ 8.2 $ 8.4 $ 7.9 $ 8.8 Earnings per share $ 0.40 $ 0.27 $ 0.27 $ 0.26 $ 0.28 Weighted average common shares outstanding 30,360,347 30,804,029 30,804,029 30,960,370 30,960,370

Sutherland Asset Management

Core Earnings Reconciliation 20 (In millions, except per share values) Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Net income $ 13.4 $ 8.9 $ 9.1 $ 8.6 $ 9.6 Reconciling items: Unrealized (gain) loss on mortgage-backed securities 1.3 3.8 (2.0) (1.6) (0.7) Realized (gain) loss on mortgage-backed securities - - 3.1 0.5 - Merger transaction costs - - - 1.7 0.9 Gain on sale of SBA license (1.3) - - - - Employee severance - - - - 0.3 (Gain) loss on discontinued operations, net of tax (0.3) 1.6 0.3 - - Total reconciling items (0.3) 5.4 1.4 0.6 0.5 Core earning before income taxes 13.1 14.3 10.5 9.2 10.1 Income tax adjustment 0.5 - - - - Core earnings 13.6 14.3 10.5 9.2 10.1

Sutherland Asset Management