Maryland | 90-0729143 |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) |
1251 Avenue of the Americas, 50th Floor, New York, NY 10020 | |
(Address of Principal Executive Offices, Including Zip Code) | |
(212) 257-4600 | |
(Registrant's Telephone Number, Including Area Code) | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.0001 par value per share | RC | New York Stock Exchange |
Preferred Stock, 6.25% Series C Cumulative Convertible, par value $0.0001 per share | RC PRC | New York Stock Exchange |
Preferred Stock, 6.50% Series E Cumulative Redeemable, par value $0.0001 per share | RC PRE | New York Stock Exchange |
6.20% Senior Notes due 2026 | RCB | New York Stock Exchange |
5.75% Senior Notes due 2026 | RCC | New York Stock Exchange |
9.00% Senior Notes due 2029 | RCD | New York Stock Exchange |
Page |
Three Months Ended March 31, | |||
(in thousands, except share data) | 2025 | 2024 | |
Interest income | $154,967 | $232,354 | |
Interest expense | (140,466) | (183,805) | |
Net interest income before recovery of loan losses | $14,501 | $48,549 | |
Recovery of loan losses | 109,568 | 26,544 | |
Net interest income after recovery of loan losses | $124,069 | $75,093 | |
Non-interest income | |||
Net realized gain (loss) on financial instruments and real estate owned | 10,669 | 18,868 | |
Net unrealized gain (loss) on financial instruments | (1,750) | 4,632 | |
Valuation allowance, loans held for sale | (99,718) | (146,180) | |
Servicing income, net of amortization and impairment of $5,294 and $3,697 | 6,456 | 3,758 | |
Gain on bargain purchase | 102,471 | — | |
Income (loss) on unconsolidated joint ventures | (3,982) | 468 | |
Other income | 11,590 | 15,826 | |
Total non-interest income (expense) | $25,736 | $(102,628) | |
Non-interest expense | |||
Employee compensation and benefits | (21,254) | (18,414) | |
Allocated employee compensation and benefits from related party | (3,276) | (2,500) | |
Professional fees | (5,488) | (7,065) | |
Management fees – related party | (5,577) | (6,648) | |
Loan servicing expense | (15,844) | (12,794) | |
Transaction related expenses | (2,694) | (650) | |
Impairment on real estate | (2,346) | (16,972) | |
Other operating expenses | (16,123) | (13,215) | |
Total non-interest expense | $(72,602) | $(78,258) | |
Income (loss) from continuing operations before benefit (provision) for income taxes | 77,203 | (105,793) | |
Income tax benefit | 5,207 | 30,211 | |
Net income (loss) from continuing operations | $82,410 | $(75,582) | |
Discontinued operations (refer to Note 9) | |||
Income (loss) from discontinued operations before benefit (provision) for income taxes | (594) | 1,887 | |
Income tax benefit (provision) | 149 | (472) | |
Net income (loss) from discontinued operations | $(445) | $1,415 | |
Net income (loss) | $81,965 | $(74,167) | |
Less: Dividends on preferred stock | 1,999 | 1,999 | |
Less: Net income attributable to non-controlling interest | 2,460 | 117 | |
Net income (loss) attributable to Ready Capital Corporation | $77,506 | $(76,283) | |
Earnings per common share from continuing operations - basic | $0.47 | $(0.45) | |
Earnings per common share from discontinued operations - basic | $0.00 | $0.01 | |
Total earnings per common share - basic | $0.47 | $(0.44) | |
Earnings per common share from continuing operations - diluted | $0.46 | $(0.45) | |
Earnings per common share from discontinued operations - diluted | $0.00 | $0.01 | |
Total earnings per common share - diluted | $0.46 | $(0.44) | |
Weighted-average shares outstanding | |||
Basic | 165,166,276 | 172,032,866 | |
Diluted | 167,723,519 | 173,104,415 | |
Dividends declared per share of common stock | $0.125 | $0.30 | |
Three Months Ended March 31, | |||
(in thousands) | 2025 | 2024 | |
Net income (loss) | $81,965 | $(74,167) | |
Other comprehensive income (loss) - net change by component: | |||
Derivative financial instruments (cash flow hedges) | (3,944) | 6,245 | |
Foreign currency translation | 813 | (607) | |
Other comprehensive income (loss) | $(3,131) | $5,638 | |
Comprehensive income (loss) | $78,834 | $(68,529) | |
Less: Comprehensive income attributable to non-controlling interests | 2,439 | 158 | |
Comprehensive income (loss) attributable to Ready Capital Corporation | $76,395 | $(68,687) | |
Three Months Ended March 31, 2025 | |||||||||||||||||||
Preferred Series E | Common Stock | Additional Paid- In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss | Total Ready Capital Corporation Equity | Non-controlling Interests | Total Stockholders' Equity | ||||||||||||
(in thousands, except share data) | Shares | Amount | Shares | Amount | |||||||||||||||
Balance at December 31, 2024 | 4,600,000 | $111,378 | 162,792,372 | $17 | $2,250,291 | $(505,089) | $(18,552) | $1,838,045 | $97,697 | $1,935,742 | |||||||||
Dividend declared: | |||||||||||||||||||
Common stock ($0.125 per share) | — | — | — | — | — | (22,693) | — | (22,693) | — | (22,693) | |||||||||
OP units | — | — | — | — | — | — | — | — | (111) | (111) | |||||||||
$0.390625 per Series C preferred share | — | — | — | — | — | (131) | — | (131) | — | (131) | |||||||||
$0.406250 per Series E preferred share | — | — | — | — | — | (1,868) | — | (1,868) | — | (1,868) | |||||||||
Distributions, net | — | — | — | — | — | — | — | — | (100) | (100) | |||||||||
Shares issued pursuant to merger transaction | — | — | 12,766,819 | — | 64,600 | — | — | 64,600 | — | 64,600 | |||||||||
Stock-based compensation | — | — | 682,080 | — | 6,238 | — | — | 6,238 | — | 6,238 | |||||||||
Share repurchases | — | — | (3,734,044) | — | (19,320) | — | — | (19,320) | — | (19,320) | |||||||||
Reallocation of non-controlling interest | — | — | — | — | 292 | — | (11) | 281 | (281) | — | |||||||||
Net income | — | — | — | — | — | 79,505 | — | 79,505 | 2,460 | 81,965 | |||||||||
Other comprehensive loss | — | — | — | — | — | — | (3,110) | (3,110) | (21) | (3,131) | |||||||||
Balance at March 31, 2025 | 4,600,000 | $111,378 | 172,507,227 | $17 | $2,302,101 | $(450,276) | $(21,673) | $1,941,547 | $99,644 | $2,041,191 | |||||||||
Three Months Ended March 31, 2024 | |||||||||||||||||||
Preferred Series E | Common Stock | Additional Paid- In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Loss | Total Ready Capital Corporation Equity | Non-controlling Interests | Total Stockholders' Equity | ||||||||||||
(in thousands, except share data) | Shares | Amount | Shares | Amount | |||||||||||||||
Balance at December 31, 2023 | 4,600,000 | $111,378 | 172,276,105 | $17 | $2,321,989 | $124,413 | $(17,860) | $2,539,937 | $98,464 | $2,638,401 | |||||||||
Dividend declared: | |||||||||||||||||||
Common stock ($0.30 per share) | — | — | — | — | — | (51,676) | — | (51,676) | — | (51,676) | |||||||||
OP units | — | — | — | — | — | — | — | — | (372) | (372) | |||||||||
$0.390625 per Series C preferred share | — | — | — | — | — | (131) | — | (131) | — | (131) | |||||||||
$0.406250 per Series E preferred share | — | — | — | — | — | (1,868) | — | (1,868) | — | (1,868) | |||||||||
Distributions, net | — | — | (1,981) | — | (18) | — | — | (18) | — | (18) | |||||||||
Stock-based compensation | — | — | 325,918 | — | 4,110 | — | — | 4,110 | — | 4,110 | |||||||||
Conversion of OP units into common stock | — | — | 90,000 | — | 612 | — | — | 612 | (612) | — | |||||||||
Share repurchases | — | — | (2,244,709) | — | (20,035) | — | — | (20,035) | — | (20,035) | |||||||||
Reallocation of non-controlling interest | — | — | — | — | 645 | — | (72) | 573 | (573) | — | |||||||||
Net income (loss) | — | — | — | — | — | (74,284) | — | (74,284) | 117 | (74,167) | |||||||||
Other comprehensive income | — | — | — | — | — | — | 5,597 | 5,597 | 41 | 5,638 | |||||||||
Balance at March 31, 2024 | 4,600,000 | $111,378 | 170,445,333 | $17 | $2,307,303 | $(3,546) | $(12,335) | $2,402,817 | $97,065 | $2,499,882 | |||||||||
Three Months Ended March 31, | |||
(in thousands) | 2025 | 2024 | |
Cash Flows From Operating Activities: | |||
Net income (loss) | $81,965 | $(74,167) | |
Net income (loss) from discontinued operations, net of tax | (445) | 1,415 | |
Net income (loss) from continuing operations | 82,410 | (75,582) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Amortization of premiums, discounts, and debt issuance costs, net | 11,265 | 30,322 | |
Stock-based compensation | 1,785 | 1,894 | |
Recovery of loan losses | (109,568) | (26,544) | |
Impairment loss on real estate owned, held for sale | 2,346 | 16,972 | |
Repair and denial reserve | 823 | 1,067 | |
Paid-in-kind accrued interest | (241) | (29,982) | |
Provision for loan losses on purchased future receivables | — | 1,206 | |
Valuation allowance, loans held for sale | 99,718 | 146,180 | |
Net (income) loss of unconsolidated joint ventures, net of distributions | 5,782 | (85) | |
Realized (gains) losses, net | (10,242) | (18,107) | |
Unrealized (gains) losses, net | 1,922 | (4,639) | |
Bargain purchase gain | (102,471) | — | |
Loans, held for sale, net | 89,106 | 11,553 | |
Changes in operating assets and liabilities: | |||
Derivative instruments | (1,982) | (1,383) | |
Assets of consolidated VIEs (excluding loans, net), accrued interest and due from servicers | 32,964 | (2,293) | |
Receivable from third parties | (862) | 2,332 | |
Other assets | (46,464) | (24,002) | |
Accounts payable and other accrued liabilities | 24,126 | (12,966) | |
Net cash provided by operating activities from continuing operations | $80,417 | $15,943 | |
Net cash provided by operating activities from discontinued operations | 28,052 | 7,507 | |
Net cash provided by operating activities | $108,469 | $23,450 | |
Cash Flows From Investing Activities: | |||
Origination of loans | (174,330) | (206,063) | |
Proceeds from disposition and principal payment of loans | 414,830 | 499,368 | |
Funding of real estate, held for sale | (5) | (591) | |
Proceeds from sale of real estate, held for sale | 7,096 | 1,310 | |
Investment in unconsolidated joint ventures | (11,508) | (41) | |
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 1,657 | 717 | |
Proceeds from liabilities under participation agreements | — | 10,316 | |
Payment of liabilities under participation agreements | (1,335) | — | |
Net cash provided by business acquisitions | 16,020 | — | |
Net cash provided by investing activities from continuing operations | $252,425 | $305,016 | |
Net cash provided by (used for) investing activities from discontinued operations | 54,843 | (192) | |
Net cash provided by investing activities | $307,268 | $304,824 | |
Cash Flows From Financing Activities: | |||
Proceeds from secured borrowings | 1,235,533 | 924,896 | |
Repayment of secured borrowings | (558,475) | (827,609) | |
Repayment of the Paycheck Protection Program Liquidity Facility borrowings | (5,639) | (7,688) | |
Repayment of securitized debt obligations of consolidated VIEs | (1,010,685) | (309,875) | |
Proceeds from senior secured note | 240,250 | — | |
Repayment of corporate debt | (79,477) | — | |
Repayment of guaranteed loan financing | (41,532) | (48,264) | |
Payment of deferred financing costs | (12,850) | (4,909) | |
Common stock repurchased | (17,405) | (19,050) | |
Settlement of share-based awards in satisfaction of withholding tax requirements | (1,915) | (985) | |
Dividend payments | (44,042) | (54,428) | |
Distributions, net | — | (18) | |
Net cash used for financing activities from continuing operations | $(296,237) | $(347,930) | |
Net cash used for financing activities from discontinued operations | (58,753) | (11,798) | |
Net cash used for financing activities | $(354,990) | $(359,728) | |
Net increase (decrease) in cash, cash equivalents, and restricted cash including cash classified within assets held for sale | 60,747 | (31,454) | |
Less: Net decrease in cash and cash equivalents within assets held for sale | (4,858) | (4,483) | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 65,605 | (26,971) | |
Cash, cash equivalents, and restricted cash beginning balance | 182,774 | 262,506 | |
Cash, cash equivalents, and restricted cash ending balance | $248,379 | $235,535 | |
Three Months Ended March 31, | |||
(in thousands) | 2025 | 2024 | |
Supplemental disclosures: | |||
Cash paid for interest | $134,316 | $177,618 | |
Cash paid (received) for income taxes | $(297) | $215 | |
Non-cash investing activities | |||
Loans transferred from loans, held for sale to loans, net | $72,826 | $— | |
Loans transferred from loans, net to loans, held for sale | $722,797 | $655,126 | |
Loans transferred to real estate owned, held for sale | $32,336 | $5,902 | |
Contingent consideration in connection with acquisitions | $15,409 | $— | |
Non-cash financing activities | |||
Shares and OP units issued in connection with merger transactions | $64,600 | $— | |
Conversion of OP units to common stock | $— | $612 | |
Cash, cash equivalents, and restricted cash reconciliation | |||
Cash and cash equivalents | $205,917 | $166,004 | |
Restricted cash | 39,603 | 24,915 | |
Cash, cash equivalents, and restricted cash in assets of consolidated VIEs | 2,859 | 44,616 | |
Cash, cash equivalents, and restricted cash ending balance | $248,379 | $235,535 | |
(in thousands) | Preliminary Purchase Price Allocation |
Assets | |
Cash and cash equivalents | $16,020 |
Loans, net | 158,469 |
Investment in unconsolidated joint ventures | 5,290 |
Other Assets: | |
Accrued interest | 1,231 |
Receivable from third party | 738 |
Other | 1,946 |
Total assets acquired | $183,694 |
Liabilities | |
Accounts payable and other accrued liabilities | 1,214 |
Total liabilities assumed | $1,214 |
Net assets acquired | $182,480 |
(in thousands) | Preliminary Purchase Price Allocation |
Fair value of net assets acquired | $182,480 |
Consideration transferred based on the value of common stock issued | 64,600 |
Contingent consideration | 15,409 |
Total consideration transferred | $80,009 |
Bargain purchase gain | $102,471 |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
Assets | |||||
Cash and cash equivalents | $29,209 | $— | $29,209 | ||
Loans, net | 8,167 | — | 8,167 | ||
Investment in unconsolidated joint ventures | 891 | — | 891 | ||
Servicing rights | 5,388 | — | 5,388 | ||
Other assets: | |||||
Deferred tax asset | 32,186 | — | 32,186 | ||
Intangible assets | 10,052 | — | 10,052 | ||
Other | 4,558 | — | 4,558 | ||
Total assets acquired | $90,451 | $— | $90,451 | ||
Liabilities | |||||
Secured borrowings | 2,022 | — | 2,022 | ||
Accounts payable and other accrued liabilities | 14,952 | — | 14,952 | ||
Total liabilities assumed | $16,974 | $— | $16,974 | ||
Net assets acquired | $73,477 | $— | $73,477 |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
Fair value of net assets acquired | $73,477 | $— | $73,477 | ||
Consideration transferred | 41,312 | — | 41,312 | ||
Bargain purchase gain | $32,165 | $— | $32,165 |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
Assets | |||||
Cash and cash equivalents | $83 | $— | $83 | ||
Restricted cash | 721 | (200) | 521 | ||
Servicing rights | 16,304 | 612 | 16,916 | ||
Other assets: | |||||
Intangible assets | 10,400 | 900 | 11,300 | ||
Other | 303 | — | 303 | ||
Total assets acquired | $27,811 | $1,312 | $29,123 | ||
Liabilities | |||||
Accounts payable and other accrued liabilities | 978 | 1,722 | 2,700 | ||
Total liabilities assumed | $978 | $1,722 | $2,700 | ||
Non-controlling interests | (600) | — | (600) | ||
Net assets acquired, net of non-controlling interests | $26,233 | $(410) | $25,823 |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
Fair value of net assets acquired | $26,233 | $(410) | $25,823 | ||
Cash paid | 32,868 | — | 32,868 | ||
Contingent consideration | $3,926 | $— | $3,926 | ||
Total consideration transferred | $36,794 | $— | $36,794 | ||
Goodwill | $10,561 | $410 | $10,971 |
March 31, 2025 | December 31, 2024 | ||||||
(in thousands) | Carrying Value | UPB | Carrying Value | UPB | |||
Loans | |||||||
Bridge | $2,044,864 | $2,074,360 | $1,246,725 | $1,309,683 | |||
Fixed rate | 186,974 | 188,781 | 197,162 | 197,272 | |||
Construction | 882,796 | 1,158,495 | 733,276 | 874,558 | |||
Freddie Mac | 1,377 | 1,337 | — | — | |||
SBA - 7(a) | 1,087,330 | 1,130,892 | 1,043,120 | 1,075,845 | |||
Other | 150,676 | 170,727 | 157,866 | 177,155 | |||
Total Loans, net | $4,354,017 | $4,724,592 | $3,378,149 | $3,634,513 | |||
Loans in consolidated VIEs | |||||||
Bridge | 2,331,487 | 2,337,776 | 3,854,982 | 3,970,084 | |||
Fixed rate | 628,755 | 634,354 | 685,505 | 688,347 | |||
SBA - 7(a) | 169,514 | 179,760 | 178,498 | 189,737 | |||
Other | 202,304 | 203,396 | 211,076 | 212,020 | |||
Total Loans, net, in consolidated VIEs | $3,332,060 | $3,355,286 | $4,930,061 | $5,060,188 | |||
Loans, held for sale | |||||||
Bridge | 426,925 | 573,999 | 58,703 | 134,065 | |||
Fixed rate | 2,760 | 6,056 | 2,750 | 6,056 | |||
Construction | 20,012 | 31,421 | 54,392 | 77,487 | |||
Freddie Mac | 3,281 | 3,273 | 36,248 | 35,931 | |||
SBA - 7(a) | 74,027 | 68,895 | 87,825 | 81,524 | |||
Other | 1,721 | 1,812 | 1,708 | 1,817 | |||
Total Loans, held for sale | $528,726 | $685,456 | $241,626 | $336,880 | |||
Loans, held for sale in consolidated VIEs | |||||||
Bridge | 168,415 | 202,973 | — | — | |||
Total Loans, held for sale in consolidated VIEs | $168,415 | $202,973 | $— | $— | |||
Total | $8,383,218 | $8,968,307 | $8,549,836 | $9,031,581 | |||
Carrying Value by Year of Origination | |||||||||||||||
(in thousands) | UPB | 2025 | 2024 | 2023 | 2022 | 2021 | Pre 2021 | Total | |||||||
March 31, 2025 | |||||||||||||||
Bridge | $4,412,136 | $— | $301,588 | $247,367 | $1,817,879 | $1,833,604 | $175,913 | $4,376,351 | |||||||
Fixed rate | 823,135 | — | — | — | 108,694 | 176,806 | 530,229 | 815,729 | |||||||
Construction | 1,158,495 | 5,124 | 20,017 | 26,940 | 164,340 | 69,026 | 597,349 | 882,796 | |||||||
Freddie Mac | 1,337 | — | — | — | 1,377 | — | — | 1,377 | |||||||
SBA - 7(a) | 1,310,652 | 88,574 | 232,389 | 135,586 | 307,290 | 226,846 | 266,159 | 1,256,844 | |||||||
Other | 374,123 | 710 | 14,400 | 2,777 | 4,090 | 641 | 330,362 | 352,980 | |||||||
Total Loans, net | $8,079,878 | $94,408 | $568,394 | $412,670 | $2,403,670 | $2,306,923 | $1,900,012 | $7,686,077 | |||||||
Gross write-offs | $— | $19 | $52 | $21 | $788 | $1,550 | $2,430 | ||||||||
UPB | 2024 | 2023 | 2022 | 2021 | 2020 | Pre 2020 | Total | ||||||||
December 31, 2024 | |||||||||||||||
Bridge | $5,279,767 | $321,439 | $244,283 | $2,083,723 | $2,270,504 | $105,279 | $76,479 | $5,101,707 | |||||||
Fixed rate | 885,619 | — | — | 109,733 | 180,209 | 86,013 | 506,712 | 882,667 | |||||||
Construction | 874,558 | 9,233 | 26,925 | 162,309 | 83,287 | 144 | 451,378 | 733,276 | |||||||
SBA - 7(a) | 1,265,582 | 235,374 | 138,670 | 322,007 | 237,105 | 94,730 | 193,732 | 1,221,618 | |||||||
Other | 389,175 | 14,769 | 2,881 | 4,225 | 685 | 9,205 | 337,177 | 368,942 | |||||||
Total Loans, net | $8,694,701 | $580,815 | $412,759 | $2,681,997 | $2,771,790 | $295,371 | $1,565,478 | $8,308,210 | |||||||
Gross write-offs | $28 | $1,440 | $1,710 | $3,022 | $617 | $7,776 | $14,593 | ||||||||
Carrying Value by Year of Origination | |||||||||||||||
(in thousands) | UPB | 2025 | 2024 | 2023 | 2022 | 2021 | Pre 2021 | Total | |||||||
March 31, 2025 | |||||||||||||||
Current | $6,926,733 | $94,030 | $558,156 | $351,187 | $2,208,928 | $2,128,358 | $1,377,208 | $6,717,867 | |||||||
30 - 59 days past due | 178,984 | 378 | 7,277 | 32,191 | 57,551 | 40,281 | 38,897 | 176,575 | |||||||
60+ days past due | 974,161 | — | 2,961 | 29,292 | 137,191 | 138,284 | 483,907 | 791,635 | |||||||
Total Loans, net | $8,079,878 | $94,408 | $568,394 | $412,670 | $2,403,670 | $2,306,923 | $1,900,012 | $7,686,077 | |||||||
UPB | 2024 | 2023 | 2022 | 2021 | 2020 | Pre 2020 | Total | ||||||||
December 31, 2024 | |||||||||||||||
Current | $8,094,859 | $575,781 | $392,201 | $2,488,252 | $2,566,736 | $289,352 | $1,475,325 | $7,787,647 | |||||||
30 - 59 days past due | 148,612 | 3,666 | 1,676 | 92,516 | 26,385 | 734 | 6,311 | 131,288 | |||||||
60+ days past due | 451,230 | 1,368 | 18,882 | 101,229 | 178,669 | 5,285 | 83,842 | 389,275 | |||||||
Total Loans, net | $8,694,701 | $580,815 | $412,759 | $2,681,997 | $2,771,790 | $295,371 | $1,565,478 | $8,308,210 | |||||||
(in thousands) | Current | 30 - 59 days past due | 60+ days past due | Total | Non-Accrual Loans | 90+ days past due and Accruing | |||||
March 31, 2025 | |||||||||||
Bridge | $4,019,861 | $62,915 | $293,575 | $4,376,351 | $200,640 | $96,990 | |||||
Fixed rate | 764,535 | 33,011 | 18,183 | 815,729 | 12,791 | — | |||||
Construction | 408,773 | 26,940 | 447,083 | 882,796 | 552,110 | — | |||||
Freddie Mac | — | — | 1,377 | 1,377 | 1,377 | — | |||||
SBA - 7(a) | 1,182,037 | 50,667 | 24,140 | 1,256,844 | 68,345 | — | |||||
Other | 342,661 | 3,042 | 7,277 | 352,980 | 13,112 | 179 | |||||
Total Loans, net | $6,717,867 | $176,575 | $791,635 | $7,686,077 | $848,375 | $97,169 | |||||
Percentage of loans outstanding | 87.4% | 2.3% | 10.3% | 100% | 11.0% | 1.3% | |||||
December 31, 2024 | |||||||||||
Bridge | $4,732,393 | $93,078 | $276,236 | $5,101,707 | $366,890 | $88,396 | |||||
Fixed rate | 840,951 | 8,421 | 33,295 | 882,667 | 33,295 | — | |||||
Construction | 691,655 | — | 41,621 | 733,276 | 60,018 | — | |||||
SBA - 7(a) | 1,160,844 | 27,124 | 33,650 | 1,221,618 | 64,687 | — | |||||
Other | 361,804 | 2,665 | 4,473 | 368,942 | 1,871 | 973 | |||||
Total Loans, net | $7,787,647 | $131,288 | $389,275 | $8,308,210 | $526,761 | $89,369 | |||||
Percentage of loans outstanding | 93.7% | 1.6% | 4.7% | 100% | 6.3% | 1.1% |
Collateral Concentration (% of UPB) | March 31, 2025 | December 31, 2024 | |
Lodging | 19.6% | 20.9% | |
Gasoline Service Stations | 11.3 | 12.0 | |
Eating Places | 6.3 | 6.5 | |
Child Day Care Services | 5.6 | 5.7 | |
Offices of Physicians | 3.5 | 3.7 | |
General Freight Trucking, Local | 2.9 | 3.0 | |
Grocery Stores | 2.3 | 2.3 | |
Coin-Operated Laundries and Drycleaners | 1.3 | 1.4 | |
Car Washes | 1.3 | 1.1 | |
Assisted Living Facilities for the Elderly | 1.0 | 1.0 | |
Other | 44.9 | 42.4 | |
Total | 100.0% | 100.0% |
(in thousands) | Bridge | Fixed rate | Construction | SBA - 7(a) | Other | Total |
Three Months Ended March 31, 2025 | ||||||
Beginning balance | $170,445 | $5,114 | $140,139 | $22,087 | $2,154 | $339,939 |
Provision for (recoveries of) loan losses | (139,396) | 5,116 | 10,490 | 8,088 | 701 | (115,001) |
PCD | — | — | 16,626 | — | — | 16,626 |
Charge-offs and sales | — | (1,000) | (1,204) | (226) | — | (2,430) |
Recoveries | — | — | — | 86 | — | 86 |
Ending balance | $31,049 | $9,230 | $166,051 | $30,035 | $2,855 | $239,220 |
Three Months Ended March 31, 2024 | ||||||
Beginning balance | $36,241 | $13,598 | $30,870 | $17,867 | $3,029 | $101,605 |
Provision for (recoveries of) loan losses | (23,060) | (3,705) | (5,636) | 4,163 | (319) | (28,557) |
Charge-offs and sales | — | (2,629) | (1,479) | (1,579) | (66) | (5,753) |
Recoveries | — | — | — | 128 | — | 128 |
Ending balance | $13,181 | $7,264 | $23,755 | $20,579 | $2,644 | $67,423 |
(in thousands) | March 31, 2025 | December 31, 2024 | |
Non-accrual loans | |||
With an allowance | $797,685 | $509,752 | |
Without an allowance | 50,690 | 17,009 | |
Total recorded carrying value of non-accrual loans | $848,375 | $526,761 | |
Allowance for loan losses related to non-accrual loans | $(192,634) | $(125,218) | |
UPB of non-accrual loans | $1,129,944 | $654,526 | |
March 31, 2025 | March 31, 2024 | ||
Interest income on non-accrual loans for the three months ended | $3,214 | $3,052 |
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||
March 31, 2025 | |||||||
Assets: | |||||||
Money market funds (1) | $58,630 | $— | $— | $58,630 | |||
Loans, net | — | — | 2,018 | 2,018 | |||
Loans, held for sale | — | 79,029 | 2,760 | 81,789 | |||
PPP loans (2) | — | 936 | — | 936 | |||
MBS | — | 31,415 | — | 31,415 | |||
Derivative instruments | — | 6,907 | — | 6,907 | |||
Investment in unconsolidated joint ventures | — | — | 6,371 | 6,371 | |||
Preferred equity investment (3) | — | — | 92,810 | 92,810 | |||
Total assets | $58,630 | $118,287 | $103,959 | $280,876 | |||
Liabilities: | |||||||
Derivative instruments | — | 575 | — | 575 | |||
Contingent consideration | — | — | 15,982 | 15,982 | |||
Total liabilities | $— | $575 | $15,982 | $16,557 | |||
December 31, 2024 | |||||||
Assets: | |||||||
Money market funds (1) | $86,637 | $— | $— | $86,637 | |||
Loans, net | — | — | 3,533 | 3,533 | |||
Loans, held for sale | — | 125,781 | 2,750 | 128,531 | |||
PPP loans (2) | — | 1,340 | — | 1,340 | |||
MBS | — | 31,006 | — | 31,006 | |||
Derivative instruments | — | 7,963 | — | 7,963 | |||
Investment in unconsolidated joint ventures | — | — | 6,577 | 6,577 | |||
Preferred equity investment (3) | — | — | 92,810 | 92,810 | |||
Total assets | $86,637 | $166,090 | $105,670 | $358,397 | |||
Liabilities: | |||||||
Derivative instruments | — | 352 | — | 352 | |||
Contingent consideration | — | — | 573 | 573 | |||
Total liabilities | $— | $352 | $573 | $925 |
(in thousands) | Fair Value | Predominant Valuation Technique (1) | Type | Range | Weighted Average | ||||
March 31, 2025 | |||||||||
Assets: | |||||||||
Investment in unconsolidated joint ventures | $6,371 | Income Approach | Discount rate | 9.0% | 9.0% | ||||
Preferred equity investment | 92,810 | Income Approach | Discount rate | 12.0% | 12.0% | ||||
Total assets | $99,181 | ||||||||
Liabilities: | |||||||||
Contingent consideration- Madison One | $573 | Monte Carlo Simulation Model | Net income volatility | Risk- adjusted discount rate | 66.0% | 44.3% | 66.0% | 44.3% | ||||
Contingent consideration - UDF | 15,409 | Distributable Cash Flow Approach | Discount factor | 18.0% | 18.0% | ||||
Total liabilities | $15,982 | ||||||||
December 31, 2024 | |||||||||
Assets: | |||||||||
Investment in unconsolidated joint ventures | $6,577 | Income Approach | Discount rate | 9.0% | 9.0% | ||||
Preferred equity investment | 92,810 | Income Approach | Discount rate | 12.0% | 12.0% | ||||
Total assets | $99,387 | ||||||||
Liabilities: | |||||||||
Contingent consideration- Madison One | $573 | Monte Carlo Simulation Model | Net income volatility | Risk- adjusted discount rate | 66.0% | 44.3% | 66.0% | 44.3% | ||||
Total liabilities | $573 |
Three Months Ended March 31, | |||
(in thousands) | 2025 | 2024 | |
Assets: | |||
Loans, net | |||
Beginning balance | $3,533 | $9,348 | |
Sales / Principal payments | (834) | — | |
Unrealized gains (losses), net | (681) | 680 | |
Transfer to (from) Level 3 | — | (10,028) | |
Ending balance | $2,018 | $— | |
Loans, held for sale | |||
Beginning balance | 2,750 | — | |
Unrealized gains (losses), net | 10 | — | |
Ending balance | $2,760 | $— | |
Investment in unconsolidated joint ventures | |||
Beginning balance | 6,577 | 7,360 | |
Unrealized gains (losses), net | (206) | (191) | |
Ending balance | $6,371 | $7,169 | |
Preferred equity investment (1) | |||
Beginning balance | 92,810 | 108,423 | |
Unrealized gains (losses), net | — | (1,875) | |
Ending balance | $92,810 | $106,548 | |
Total assets | |||
Beginning balance | 105,670 | 125,131 | |
Sales / Principal payments | (834) | — | |
Unrealized gains (losses), net | (877) | (1,386) | |
Transfer to (from) Level 3 | — | (10,028) | |
Ending balance | $103,959 | $113,717 | |
Liabilities: | |||
Contingent consideration | |||
Beginning balance | 573 | 7,628 | |
Realized (gains) losses, net | — | (7,628) | |
Mergers and acquisitions (2) | $15,409 | $— | |
Ending balance | $15,982 | $— | |
March 31, 2025 | December 31, 2024 | ||||||
(in thousands) | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||
Assets: | |||||||
Loans, net | $7,684,059 | $7,730,770 | $8,304,677 | $8,426,700 | |||
Loans, held for sale | 615,352 | 615,352 | 113,095 | 113,095 | |||
Servicing rights | 129,814 | 143,677 | 128,440 | 141,513 | |||
Total assets | $8,429,225 | $8,489,799 | $8,546,212 | $8,681,308 | |||
Liabilities: | |||||||
Secured borrowings | 2,713,415 | 2,713,415 | 2,035,176 | 2,035,176 | |||
Securitized debt obligations of consolidated VIEs, net | 2,574,139 | 2,540,330 | 3,580,513 | 3,532,765 | |||
Senior secured notes, net | 671,510 | 655,022 | 437,847 | 421,427 | |||
Guaranteed loan financing | 668,847 | 706,250 | 691,118 | 724,747 | |||
Corporate debt, net | 817,156 | 783,913 | 895,265 | 865,380 | |||
Total liabilities | $7,445,067 | $7,398,930 | $7,639,919 | $7,579,495 | |||
March 31, 2025 | December 31, 2024 | ||||||||||
Range of input values | Weighted Average | Range of input values | Weighted Average | ||||||||
SBA | |||||||||||
Forward prepayment rate | 9.9% | - | 21.5% | 10.4% | 9.9% | - | 21.6% | 10.6% | |||
Forward default rate | 0.0% | - | 2.7% | 1.3% | 0.0% | - | 6.8% | 6.6% | |||
Discount rate | 10.8% | - | 16.8% | 10.9% | 11.9% | - | 21.8% | 12.2% | |||
Servicing expense | 0.4% | - | 0.4% | 0.4% | 0.4% | - | 0.4% | 0.4% | |||
Multi-family | |||||||||||
Forward prepayment rate | 0.0% | - | 7.3% | 6.7% | 0.0% | - | 7.3% | 6.7% | |||
Forward default rate | 0.0% | - | 1.0% | 0.1% | 0.0% | - | 1.0% | 0.6% | |||
Discount rate | 5.5% | - | 5.6% | 5.5% | 5.5% | - | 6.0% | 5.8% | |||
Servicing expense | 0.0% | - | 0.8% | 0.1% | 0.0% | - | 0.8% | 0.1% | |||
USDA (1) | |||||||||||
Forward prepayment rate | 10.2% | - | 12.5% | 12.2% | 12.2% | - | 12.2% | 12.2% | |||
Discount rate | 3.7% | - | 5.4% | 5.2% | 4.9% | - | 5.2% | 5.1% | |||
Servicing expense | 0.1% | - | 0.3% | 0.2% | 0.1% | - | 0.3% | 0.2% | |||
Small business loans (2) | |||||||||||
Discount rate | 6.0% | - | 6.0% | 6.0% | 6.0% | - | 6.0% | 6.0% | |||
Servicing expense | 0.5% | - | 0.5% | 0.5% | 0.5% | - | 0.5% | 0.5% | |||
(in thousands) | March 31, 2025 | December 31, 2024 | |
Assets | |||
Cash and cash equivalents | $19,942 | $24,328 | |
Restricted cash | 4,992 | 5,464 | |
Loans, net | — | 222 | |
Loans, held for sale | 137,929 | 158,152 | |
Loans eligible for repurchase from Ginnie Mae | 10,932 | 14,107 | |
Servicing rights(1) | — | 55,582 | |
Other assets | 11,987 | 29,740 | |
Total Assets | $185,782 | $287,595 | |
Liabilities | |||
Secured borrowings | $131,680 | $190,333 | |
Liabilities for loans eligible for repurchase from Ginnie Mae | 10,932 | 14,107 | |
Derivative instruments | 1,657 | 1,443 | |
Accounts payable and other accrued liabilities | 12,345 | 22,852 | |
Total Liabilities | $156,614 | $228,735 |
Three Months Ended March 31, | |||
(in thousands) | 2025 | 2024 | |
Interest income | $2,118 | $1,842 | |
Interest expense | (2,024) | (2,530) | |
Net interest expense | $94 | $(688) | |
Non-interest income | |||
Residential mortgage banking activities | 10,415 | 9,242 | |
Net realized gain (loss) on financial instruments | 9,832 | — | |
Net unrealized gain (loss) on financial instruments | (8,952) | — | |
Servicing income, net of amortization and impairment | 1,433 | 9,416 | |
Other income | 4 | 4 | |
Total non-interest income | $12,732 | $18,662 | |
Non-interest expense | |||
Employee compensation and benefits | (3,561) | (5,684) | |
Variable expenses on residential mortgage banking activities | (6,419) | (6,086) | |
Professional fees | (548) | (153) | |
Loan servicing expense | (1,428) | (2,329) | |
Other operating expenses | (1,464) | (1,835) | |
Total non-interest expense | $(13,420) | $(16,087) | |
Income (loss) from discontinued operations before provision for income taxes | (594) | 1,887 | |
Income tax (provision) benefit | 149 | (472) | |
Net income (loss) from discontinued operations | $(445) | $1,415 | |
Pledged Assets Carrying Value | |||
(in thousands) | March 31, 2025 | December 31, 2024 | |
Collateral pledged - borrowings under credit facilities and other financing agreements | |||
Loans, held for sale | $8,317 | $36,249 | |
Loans, net | 363,512 | 351,443 | |
Total | $371,829 | $387,692 | |
Collateral pledged - borrowings under repurchase agreements | |||
Loans, net | 2,601,262 | 2,036,311 | |
MBS | 21,821 | 21,729 | |
Retained interest in assets of consolidated VIEs | 381,372 | 436,617 | |
Loans, held for sale | 368,375 | 81,708 | |
Real estate acquired in settlement of loans | 132,540 | 127,828 | |
Total | $3,505,370 | $2,704,193 | |
Total collateral pledged on secured borrowings | $3,877,199 | $3,091,885 | |
(in thousands) | Coupon Rate | Maturity Date | March 31, 2025 | ||
Senior secured notes principal amount(1) | 4.50% | 10/20/2026 | $350,000 | ||
Senior secured notes principal amount(2) | 9.375% | 3/1/2028 | 220,000 | ||
Term loan principal amount(3) | SOFR + 5.50% | 4/12/2029 | 115,250 | ||
Unamortized discount | (2,314) | ||||
Unamortized deferred financing costs | (11,426) | ||||
Total senior secured notes, net | $671,510 | ||||
Corporate debt principal amount(4) | 5.50% | 12/30/2028 | 110,000 | ||
Corporate debt principal amount(5) | 6.20% | 7/30/2026 | 90,081 | ||
Corporate debt principal amount(5) | 5.75% | 2/15/2026 | 158,900 | ||
Corporate debt principal amount(6) | 6.125% | 4/30/2025 | 102,426 | ||
Corporate debt principal amount(7) | 7.375% | 7/31/2027 | 100,000 | ||
Corporate debt principal amount(8) | 5.00% | 11/15/2026 | 100,000 | ||
Corporate debt principal amount(9) | 9.00% | 12/15/2029 | 130,000 | ||
Unamortized discount - corporate debt | (7,380) | ||||
Unamortized deferred financing costs - corporate debt | (3,121) | ||||
Junior subordinated notes principal amount(10) | SOFR + 3.10% | 3/30/2035 | 15,000 | ||
Junior subordinated notes principal amount(11) | SOFR + 3.10% | 4/30/2035 | 21,250 | ||
Total corporate debt, net | $817,156 | ||||
Total carrying amount of debt | $1,488,666 |
(in thousands) | Weighted Average Interest Rate | Range of Interest Rates | Range of Maturities (Years) | Ending Balance | |||
March 31, 2025 | 8.20% | 1.45-9.57% | 2025-2048 | $668,847 | |||
December 31, 2024 | 8.69% | 1.45-10.00% | 2025-2048 | $691,118 |
(in thousands) | March 31, 2025 | December 31, 2024 | |
Assets: | |||
Cash and cash equivalents | $16 | $— | |
Restricted cash | 2,843 | 8,411 | |
Loans, net | 3,332,060 | 4,930,061 | |
Loans, held for sale | 168,415 | — | |
Preferred equity investment (1) | 92,810 | 92,810 | |
Accrued interest (1) | 107,965 | 140,607 | |
Other assets | 19,629 | 3,406 | |
Total assets | $3,723,738 | $5,175,295 | |
Liabilities: | |||
Securitized debt obligations of consolidated VIEs, net | 2,574,139 | 3,580,513 | |
Due to third parties (2) | 2,532 | 4,116 | |
Accounts payable and other accrued liabilities (2) | — | 93 | |
Total liabilities | $2,576,671 | $3,584,722 |
March 31, 2025 | December 31, 2024 | ||||||||||
(in thousands) | Current Principal Balance | Carrying value | Weighted Average Interest Rate | Current Principal Balance | Carrying value | Weighted Average Interest Rate | |||||
ReadyCap Lending Small Business Trust 2019-2 | $13,792 | $13,792 | 7.0% | $18,189 | $18,189 | 7.9% | |||||
ReadyCap Lending Small Business Trust 2023-3 | 92,086 | 90,633 | 7.6 | 101,004 | 99,390 | 8.4 | |||||
Sutherland Commercial Mortgage Trust 2019-SBC8 | 85,829 | 84,632 | 2.9 | 89,496 | 88,231 | 2.9 | |||||
Sutherland Commercial Mortgage Trust 2021-SBC10 | 57,743 | 56,914 | 1.6 | 60,816 | 59,907 | 1.6 | |||||
ReadyCap Commercial Mortgage Trust 2016-3 | 6,209 | 6,124 | 5.4 | 6,401 | 6,289 | 5.3 | |||||
ReadyCap Commercial Mortgage Trust 2018-4 | 46,496 | 45,340 | 4.7 | 46,980 | 45,707 | 4.6 | |||||
ReadyCap Commercial Mortgage Trust 2019-5 | 61,728 | 58,080 | 5.1 | 68,125 | 64,209 | 5.0 | |||||
ReadyCap Commercial Mortgage Trust 2019-6 | 142,452 | 139,642 | 3.6 | 168,946 | 165,943 | 3.5 | |||||
ReadyCap Commercial Mortgage Trust 2022-7 | 188,468 | 183,227 | 4.1 | 190,426 | 184,852 | 4.1 | |||||
Ready Capital Mortgage Financing 2021-FL5 | — | — | — | 75,970 | 75,970 | 7.3 | |||||
Ready Capital Mortgage Financing 2021-FL6 | — | — | — | 206,377 | 206,377 | 6.7 | |||||
Ready Capital Mortgage Financing 2021-FL7 | 415,829 | 415,829 | 6.3 | 423,529 | 423,529 | 7.0 | |||||
Ready Capital Mortgage Financing 2022-FL8 | — | — | — | 587,693 | 587,625 | 7.5 | |||||
Ready Capital Mortgage Financing 2022-FL9 | 328,215 | 328,215 | 7.9 | 328,522 | 328,090 | 8.5 | |||||
Ready Capital Mortgage Financing 2022-FL10 | 523,822 | 522,289 | 7.5 | 576,655 | 573,924 | 8.2 | |||||
Ready Capital Mortgage Financing 2023-FL11 | 311,476 | 311,254 | 7.5 | 322,630 | 321,742 | 8.2 | |||||
Ready Capital Mortgage Financing 2023-FL12 | 318,727 | 318,168 | 7.8 | 331,692 | 330,437 | 8.2 | |||||
Total | $2,592,872 | $2,574,139 | 6.5% | $3,603,451 | $3,580,411 | 7.1% | |||||
Three Months Ended March 31, | |||
(in thousands) | 2025 | 2024 | |
Interest income | |||
Loans, net | |||
Bridge | $96,197 | $148,273 | |
Fixed rate | 10,215 | 12,266 | |
Construction | 7,543 | 30,168 | |
SBA - 7(a) | 26,999 | 31,290 | |
PPP (1) | 446 | 301 | |
Other | 6,291 | 7,785 | |
Total loans, net (2) | $147,691 | $230,083 | |
Loans, held for sale | |||
Fixed rate | 26 | — | |
Construction | 327 | — | |
SBA - 7(a) | 2,381 | — | |
Other | 208 | 218 | |
Total loans, held for sale (2) | $2,942 | $218 | |
Loans, held at fair value | |||
Other | 38 | — | |
Total loans, held at fair value | $38 | $— | |
Investments held to maturity (1) | — | 13 | |
Preferred equity investment (2) | 3,302 | 1,084 | |
MBS | 994 | 956 | |
Total interest income | $154,967 | $232,354 | |
Interest expense | |||
Secured borrowings | (41,123) | (47,638) | |
PPPLF borrowings (3) | (14) | (28) | |
Securitized debt obligations of consolidated VIEs | (60,680) | (100,252) | |
Guaranteed loan financing | (12,930) | (18,508) | |
Senior secured notes | (10,110) | (4,381) | |
Corporate debt | (15,609) | (12,998) | |
Total interest expense | $(140,466) | $(183,805) | |
Net interest income before provision for loan losses | $14,501 | $48,549 | |
March 31, 2025 | December 31, 2024 | |||||||||||
(in thousands) | Primary Underlying Risk | Notional Amount | Derivative Asset | Derivative Liability | Notional Amount | Derivative Asset | Derivative Liability | |||||
Interest Rate Swaps - not designated as hedges | Interest rate risk | $26,300 | $3,882 | $26,300 | $3,506 | $— | ||||||
Interest Rate Swaps - designated as hedges | Interest rate risk | 396,943 | 22,788 | (154) | 396,943 | 29,030 | — | |||||
FX forwards | Foreign exchange rate risk | 34,133 | 384 | (421) | 34,133 | 851 | (352) | |||||
Total | $457,376 | $27,054 | $(575) | $457,376 | $33,387 | $(352) | ||||||
(in thousands) | Net Realized Gain (Loss) | Net Unrealized Gain (Loss) | |
Three Months Ended March 31, 2025 | |||
Interest rate swaps | $1,946 | $(515) | |
Total | $1,946 | $(515) | |
Three Months Ended March 31, 2024 | |||
Interest rate swaps | $4,392 | $6,886 | |
Total | $4,392 | $6,886 |
(in thousands) | Derivatives - effective portion reclassified from AOCI to income | Derivatives - effective portion recorded in OCI | Total change in OCI for period | ||
Interest rate swaps | |||||
Three Months Ended March 31, 2025 | $(252) | $(4,196) | $(3,944) | ||
Three Months Ended March 31, 2024 | $(283) | $5,962 | $6,245 |
Three Months Ended March 31, | |||
2025 | 2024 | ||
Management fee - total | $5.6million | $6.6million | |
Management fee - amount unpaid | $5.6million | $6.6million | |
Three Months Ended March 31, | |||
2025 | 2024 | ||
Incentive fee distribution - total | $— | $— | |
Incentive fee distribution - amount unpaid | $— | $— | |
Three Months Ended March 31, | |||
2025 | 2024 | ||
Reimbursable expenses payable to Manager - total | $4.9million | $2.8million | |
Reimbursable expenses payable to Manager - amount unpaid | $5.3million | $1.2million | |
(in thousands) | March 31, 2025 | December 31, 2024 | |
Other assets: | |||
Goodwill | $49,501 | $49,501 | |
Deferred loan exit fees | 25,894 | 27,811 | |
Accrued interest | 78,882 | 45,416 | |
Due from servicers | 8,124 | 7,039 | |
Intangible assets | 36,784 | 37,006 | |
Receivable from third party | 35,402 | 34,540 | |
Deferred financing costs | 10,063 | 8,053 | |
Deferred tax asset | 111,325 | 111,325 | |
Tax receivable | 7,695 | 1,654 | |
Right-of-use lease asset | 6,899 | 7,362 | |
PPP receivables | 14,877 | 18,363 | |
Investments held to maturity | 3,000 | 3,000 | |
Other | 11,256 | 11,416 | |
Other assets | $399,702 | $362,486 | |
Accounts payable and other accrued liabilities: | |||
Accrued salaries, wages and commissions | 29,274 | 39,565 | |
Accrued interest payable | 42,758 | 39,723 | |
Servicing principal and interest payable | 15,693 | 13,609 | |
Repair and denial reserve | 8,182 | 7,359 | |
Payable to related parties | 5,164 | 5,566 | |
PPP liabilities | 15,253 | 20,892 | |
Accrued professional fees | 4,814 | 5,538 | |
Lease payable | 16,466 | 17,806 | |
Liabilities of consolidated VIEs | 23,846 | 4,209 | |
Other | 24,083 | 33,784 | |
Total accounts payable and other accrued liabilities | $185,533 | $188,051 |
(in thousands) | March 31, 2025 | December 31, 2024 | |
LMM Commercial Real Estate | $27,324 | $27,324 | |
Small Business Lending | 22,177 | 22,177 | |
Total | $49,501 | $49,501 |
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | ||
March 31, 2025 | |||||
Amortized intangible assets: | |||||
Internally developed software | $21,873 | $8,098 | $13,775 | ||
Customer relationships | 10,350 | 1,690 | 8,660 | ||
Broker network | 10,200 | 1,950 | 8,250 | ||
Other | 3,483 | 884 | 2,599 | ||
Unamortized intangible assets: | |||||
Trade name | 2,500 | — | 2,500 | ||
SBA license | 1,000 | — | 1,000 | ||
Total intangible assets | $49,406 | $12,622 | $36,784 | ||
December 31, 2024 | |||||
Amortized intangible assets: | |||||
Internally developed software | $20,518 | $7,051 | $13,467 | ||
Customer relationships | 10,332 | 1,474 | 8,858 | ||
Broker network | 10,200 | 1,700 | 8,500 | ||
Other | 3,499 | 818 | 2,681 | ||
Unamortized intangible assets: | |||||
Trade name | 2,500 | — | 2,500 | ||
SBA license | 1,000 | — | 1,000 | ||
Total intangible assets | $48,049 | $11,043 | $37,006 |
Three Months Ended March 31, | |||
(in thousands) | 2025 | 2024 | |
Other income: | |||
Origination income | $7,012 | $2,657 | |
Change in repair and denial reserve | (823) | (1,207) | |
ERC consulting income | 149 | 2,491 | |
Other | 5,252 | 11,885 | |
Total other income | $11,590 | $15,826 | |
Other operating expenses: | |||
Origination costs | 6,456 | 1,814 | |
Technology expense | 2,885 | 2,593 | |
Rent and property tax expense | 1,354 | 2,318 | |
Recruiting, training and travel expense | 780 | 707 | |
Marketing expense | 363 | 399 | |
Bad debt expense - ERC | 109 | 1,813 | |
Other | 4,176 | 3,571 | |
Total other operating expenses | $16,123 | $13,215 | |
Declaration Date | Record Date | Payment Date | Dividend per Share | |||
March 15, 2024 | March 28, 2024 | April 30, 2024 | $0.300 | |||
June 14, 2024 | June 28, 2024 | July 31, 2024 | $0.300 | |||
September 13, 2024 | September 30, 2024 | October 31, 2024 | $0.250 | |||
December 13, 2024 | December 31, 2024 | January 31, 2025 | $0.250 | |||
March 3, 2025 | March 31, 2025 | April 30, 2025 | $0.125 |
Restricted Stock Units/Awards | |||||
(in thousands, except share data) | Number of shares | Grant date fair value | Weighted-average grant date fair value (per share) | ||
Outstanding, December 31, 2024 | 996,549 | $10,248 | $10.28 | ||
Granted | 1,545,723 | 10,313 | 6.67 | ||
Vested | (682,080) | (6,238) | 9.15 | ||
Forfeited | (27,223) | (215) | 7.90 | ||
Outstanding, March 31, 2025 | 1,832,969 | $14,108 | $7.70 | ||
Three Months Ended March 31, | |||
(in thousands, except for share and per share amounts) | 2025 | 2024 | |
Basic Earnings | |||
Net income (loss) from continuing operations | $82,410 | $(75,582) | |
Less: Income attributable to non-controlling interest | 2,460 | 117 | |
Less: Income attributable to participating shares | 2,228 | 2,335 | |
Basic earnings - continuing operations | $77,722 | $(78,034) | |
Basic earnings - discontinued operations | $(445) | $1,415 | |
Diluted Earnings | |||
Net income (loss) from continuing operations | 82,410 | (75,582) | |
Less: Income attributable to non-controlling interest | 2,460 | 117 | |
Less: Income attributable to participating shares | 2,228 | 2,335 | |
Add: Expenses attributable to dilutive instruments | 131 | 131 | |
Diluted earnings - continuing operations | $77,853 | $(77,903) | |
Diluted earnings - discontinued operations | $(445) | $1,415 | |
Number of Shares | |||
Basic — Average shares outstanding | 165,166,276 | 172,032,866 | |
Effect of dilutive securities — Unvested participating shares | 2,557,243 | 1,071,549 | |
Diluted — Average shares outstanding | 167,723,519 | 173,104,415 | |
EPS Attributable to RC Common Stockholders: | |||
Basic - continuing operations | $0.47 | $(0.45) | |
Basic - discontinued operations | $0.00 | $0.01 | |
Basic - total | $0.47 | $(0.44) | |
Diluted - continuing operations | $0.46 | $(0.45) | |
Diluted - discontinued operations | $0.00 | $0.01 | |
Diluted - total | $0.46 | $(0.44) | |
Gross amounts not offset in the Consolidated Balance Sheets(1) | |||||||||||
(in thousands) | Gross amounts of Assets / Liabilities | Gross amounts offset | Balance in Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received / Paid | Net Amount | |||||
March 31, 2025 | |||||||||||
Assets | |||||||||||
FX forwards | $384 | $— | $384 | $— | $— | $384 | |||||
Interest rate swaps | 26,670 | 20,147 | 6,523 | — | — | 6,523 | |||||
Total | $27,054 | $20,147 | $6,907 | $— | $— | $6,907 | |||||
Liabilities | |||||||||||
Interest rate swaps | 154 | — | 154 | — | — | 154 | |||||
FX forwards | 421 | — | 421 | — | — | 421 | |||||
Secured borrowings | 2,713,415 | — | 2,713,415 | 2,713,415 | — | — | |||||
PPPLF | 15,253 | — | 15,253 | 14,877 | — | 376 | |||||
Total | $2,729,243 | $— | $2,729,243 | $2,728,292 | $— | $951 | |||||
December 31, 2024 | |||||||||||
Assets | |||||||||||
FX forwards | 851 | — | 851 | — | — | 851 | |||||
Interest rate swaps | 32,536 | 25,424 | 7,112 | — | — | 7,112 | |||||
Total | $33,387 | $25,424 | $7,963 | $— | $— | $7,963 | |||||
Liabilities | |||||||||||
FX forwards | 352 | — | 352 | — | — | 352 | |||||
Secured borrowings | 2,035,176 | — | 2,035,176 | 2,035,176 | — | — | |||||
PPPLF | 20,892 | — | 20,892 | 18,362 | — | 2,530 | |||||
Total | $2,056,420 | $— | $2,056,420 | $2,053,538 | $— | $2,882 | |||||
(in thousands) | March 31, 2025 | December 31, 2024 | |
Loans, net | $569,842 | $444,838 | |
Loans, held for sale | $54,430 | $28,566 |
Three Months Ended March 31, 2025 | |||||
(in thousands) | LMM Commercial Real Estate | Small Business Lending | Total | ||
Interest income | $124,973 | $29,994 | $154,967 | ||
Interest expense | (120,354) | (20,112) | (140,466) | ||
Net interest income before recovery of (provision for) loan losses | $4,619 | $9,882 | $14,501 | ||
Recovery of (provision for) loan losses | 117,941 | (8,373) | 109,568 | ||
Net interest income after recovery of (provision for) loan losses | $122,560 | $1,509 | $124,069 | ||
Non-interest income | |||||
Net realized gain (loss) on financial instruments and real estate owned | (14,600) | 25,269 | 10,669 | ||
Net unrealized gain (loss) on financial instruments | (604) | (1,146) | (1,750) | ||
Valuation allowance, loans held for sale | (99,718) | — | (99,718) | ||
Servicing income, net | 1,415 | 5,041 | 6,456 | ||
Income (loss) on unconsolidated joint ventures | (4,005) | 23 | (3,982) | ||
Other income | 3,037 | 7,262 | 10,299 | ||
Total non-interest income (loss) | $(114,475) | $36,449 | $(78,026) | ||
Non-interest expense | |||||
Employee compensation and benefits | (5,871) | (15,304) | (21,175) | ||
Allocated employee compensation and benefits from related party | (328) | — | (328) | ||
Professional fees | (818) | (2,905) | (3,723) | ||
Loan servicing expense | (15,064) | (780) | (15,844) | ||
Impairment on real estate | (2,346) | — | (2,346) | ||
Other operating expenses | (3,336) | (11,071) | (14,407) | ||
Total non-interest expense | $(27,763) | $(30,060) | $(57,823) | ||
Income (loss) before unallocated expenses and provision for income taxes | $(19,678) | $7,898 | $(11,780) | ||
Unallocated corporate income (expenses) | |||||
Gain on bargain purchase | 102,471 | ||||
Employee compensation and benefits | (3,027) | ||||
Professional fees | (1,765) | ||||
Management fees – related party | (5,577) | ||||
Transaction related expenses | (2,694) | ||||
Other operating expenses - net | (425) | ||||
Total unallocated corporate expenses | $88,983 | ||||
Income before provision for income taxes | $77,203 | ||||
Total assets | $7,897,270 | $1,510,635 | $9,407,905 | ||
Three Months Ended March 31, 2024 | |||||
(in thousands) | LMM Commercial Real Estate | Small Business Lending | Total | ||
Interest income | $200,763 | $31,591 | $232,354 | ||
Interest expense | (158,885) | (24,920) | (183,805) | ||
Net interest income before recovery of (provision for) loan losses | $41,878 | $6,671 | $48,549 | ||
Recovery of (provision for) loan losses | 30,755 | (4,211) | 26,544 | ||
Net interest income after recovery of (provision for) loan losses | $72,633 | $2,460 | $75,093 | ||
Non-interest income | |||||
Net realized gain (loss) on financial instruments and real estate owned | 5,755 | 13,113 | 18,868 | ||
Net unrealized gain (loss) on financial instruments | 2,986 | 1,646 | 4,632 | ||
Valuation allowance, loans held for sale | (146,180) | — | (146,180) | ||
Servicing income, net | 1,298 | 2,460 | 3,758 | ||
Income on unconsolidated joint ventures | 468 | — | 468 | ||
Other income | 12,727 | 3,099 | 15,826 | ||
Total non-interest income | $(122,946) | $20,318 | $(102,628) | ||
Non-interest expense | |||||
Employee compensation and benefits | (7,476) | (9,292) | (16,768) | ||
Allocated employee compensation and benefits from related party | (250) | — | (250) | ||
Professional fees | (1,641) | (3,215) | (4,856) | ||
Loan servicing expense | (12,547) | (247) | (12,794) | ||
Impairment on real estate | (16,972) | — | (16,972) | ||
Other operating expenses | (4,562) | (5,353) | (9,915) | ||
Total non-interest expense | $(43,448) | $(18,107) | $(61,555) | ||
Income (loss) before unallocated expenses and provision for income taxes | $(93,761) | $4,671 | $(89,090) | ||
Unallocated corporate income (expenses) | |||||
Employee compensation and benefits | (3,896) | ||||
Professional fees | (2,209) | ||||
Management fees – related party | (6,648) | ||||
Transaction related expenses | (650) | ||||
Other operating expenses - net | (3,300) | ||||
Total unallocated corporate income | $(16,703) | ||||
Loss before provision for income taxes | $(105,793) | ||||
Total assets | $9,905,732 | $1,357,398 | $11,263,130 | ||
Three Months Ended March 31, | |||
($ in thousands, except share data) | 2025 | 2024 | |
Net Income (loss) from continuing operations | $82,410 | $(75,582) | |
Earnings per common share from continuing operations - basic | $0.47 | $(0.45) | |
Earnings per common share from continuing operations - diluted | $0.46 | $(0.45) | |
Distributable earnings before realized losses | $4,140 | $53,976 | |
Distributable earnings before realized losses per common share - basic | $0.00 | $0.29 | |
Distributable earnings before realized losses per common share - diluted | $0.00 | $0.29 | |
Distributable earnings | $(11,384) | $53,976 | |
Distributable earnings per common share - basic | $(0.09) | $0.29 | |
Distributable earnings per common share - diluted | $(0.09) | $0.29 | |
Dividends declared per common share | $0.125 | $0.30 | |
Dividend yield (1) | 9.8% | 13.1% | |
Return on equity from continuing operations | 18.4% | (13.3)% | |
Distributable return on equity before realized losses | (0.9)% | 8.6% | |
Distributable return on equity | (3.1)% | 8.6% | |
Book value per common share | $10.61 | $13.44 | |
(in thousands) | March 31, 2025 | December 31, 2024 | $ Change | % Change | |||
Assets | |||||||
Cash and cash equivalents | $205,917 | $143,803 | $62,114 | 43.2% | |||
Restricted cash | 39,603 | 30,560 | 9,043 | 29.6 | |||
Loans, net (including $2,018 and $3,533 held at fair value) | 4,354,017 | 3,378,149 | 975,868 | 28.9 | |||
Loans, held for sale (including $81,789 and $128,531 held at fair value and net of valuation allowance of $158,068 and $97,620) | 528,726 | 241,626 | 287,100 | 118.8 | |||
Mortgage-backed securities | 31,415 | 31,006 | 409 | 1.3 | |||
Investment in unconsolidated joint ventures (including $6,371 and $6,577 held at fair value) | 170,920 | 161,561 | 9,359 | 5.8 | |||
Derivative instruments | 6,907 | 7,963 | (1,056) | (13.3) | |||
Servicing rights | 129,814 | 128,440 | 1,374 | 1.1 | |||
Real estate owned, held for sale | 199,910 | 193,437 | 6,473 | 3.3 | |||
Other assets | 399,702 | 362,486 | 37,216 | 10.3 | |||
Assets of consolidated VIEs | 3,723,738 | 5,175,295 | (1,451,557) | (28.0) | |||
Assets held for sale | 185,782 | 287,595 | (101,813) | (35.4) | |||
Total Assets | $9,976,451 | $10,141,921 | $(165,470) | (1.6)% | |||
Liabilities | |||||||
Secured borrowings | 2,713,415 | 2,035,176 | 678,239 | 33.3 | |||
Securitized debt obligations of consolidated VIEs, net | 2,574,139 | 3,580,513 | (1,006,374) | (28.1) | |||
Senior secured notes, net | 671,510 | 437,847 | 233,663 | 53.4 | |||
Corporate debt, net | 817,156 | 895,265 | (78,109) | (8.7) | |||
Guaranteed loan financing | 668,847 | 691,118 | (22,271) | (3.2) | |||
Contingent consideration | 15,982 | 573 | 15,409 | 2,689.2 | |||
Derivative instruments | 575 | 352 | 223 | 63.4 | |||
Dividends payable | 23,929 | 43,168 | (19,239) | (44.6) | |||
Loan participations sold | 98,128 | 95,578 | 2,550 | 2.7 | |||
Due to third parties | 1,071 | 1,442 | (371) | (25.7) | |||
Accounts payable and other accrued liabilities | 185,533 | 188,051 | (2,518) | (1.3) | |||
Liabilities held for sale | 156,614 | 228,735 | (72,121) | (31.5) | |||
Total Liabilities | $7,926,899 | $8,197,818 | $(270,919) | (3.3)% | |||
Preferred stock Series C, liquidation preference $25.00 per share | 8,361 | 8,361 | — | — | |||
Commitments & contingencies | |||||||
Stockholders’ Equity | |||||||
Preferred stock Series E, liquidation preference $25.00 per share | 111,378 | 111,378 | — | — | |||
Common stock, $0.0001 par value, 500,000,000 shares authorized, 172,507,227 and 162,792,372 shares issued and outstanding, respectively | 17 | 17 | — | — | |||
Additional paid-in capital | 2,302,101 | 2,250,291 | 51,810 | 2.3 | |||
Retained earnings (deficit) | (450,276) | (505,089) | 54,813 | (10.9) | |||
Accumulated other comprehensive loss | (21,673) | (18,552) | (3,121) | (16.8) | |||
Total Ready Capital Corporation equity | 1,941,547 | 1,838,045 | 103,502 | 5.6 | |||
Non-controlling interests | 99,644 | 97,697 | 1,947 | 2.0 | |||
Total Stockholders’ Equity | $2,041,191 | $1,935,742 | $105,449 | 5.4% | |||
Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity | $9,976,451 | $10,141,921 | $(165,470) | (1.6)% |
(in thousands) | LMM Commercial Real Estate | Small Business Lending | Total | ||
March 31, 2025 | |||||
Assets | |||||
Loans, net | $6,424,889 | $1,261,188 | $7,686,077 | ||
Loans, held for sale | 621,393 | 75,748 | 697,141 | ||
MBS | 31,415 | — | 31,415 | ||
Investment in unconsolidated joint ventures | 170,376 | 544 | 170,920 | ||
Servicing rights | 65,139 | 64,675 | 129,814 | ||
Real estate owned, held for sale | 218,006 | 32 | 218,038 | ||
Liabilities | |||||
Secured borrowings | 2,456,284 | 257,131 | 2,713,415 | ||
Securitized debt obligations of consolidated VIEs | 2,469,714 | 104,425 | 2,574,139 | ||
Senior secured notes, net | 663,891 | 7,619 | 671,510 | ||
Corporate debt, net | 817,156 | — | 817,156 | ||
Guaranteed loan financing | — | 668,847 | 668,847 | ||
Loan participations sold | 98,128 | — | 98,128 |
Three Months Ended March 31, | |||||
(in thousands) | 2025 | 2024 | $ Change | ||
Interest income | |||||
LMM commercial real estate | $124,973 | $200,763 | $(75,790) | ||
Small business lending | 29,994 | 31,591 | (1,597) | ||
Total interest income | $154,967 | $232,354 | $(77,387) | ||
Interest expense | |||||
LMM commercial real estate | (120,354) | (158,885) | 38,531 | ||
Small business lending | (20,112) | (24,920) | 4,808 | ||
Total interest expense | $(140,466) | $(183,805) | $43,339 | ||
Net interest income before recovery of (provision for) loan losses | $14,501 | $48,549 | $(34,048) | ||
Recovery of (provision for) loan losses | |||||
LMM commercial real estate | 117,941 | 30,755 | 87,186 | ||
Small business lending | (8,373) | (4,211) | (4,162) | ||
Total recovery of (provision for) loan losses | $109,568 | $26,544 | $83,024 | ||
Net interest income after recovery of (provision for) loan losses | $124,069 | $75,093 | $48,976 | ||
Non-interest income (loss) | |||||
LMM commercial real estate | (114,475) | (122,946) | 8,471 | ||
Small business lending | 36,449 | 20,318 | 16,131 | ||
Unallocated corporate income | 103,762 | — | 103,762 | ||
Total non-interest income (loss) | $25,736 | $(102,628) | $128,364 | ||
Non-interest expense | |||||
LMM commercial real estate | (27,763) | (43,448) | 15,685 | ||
Small business lending | (30,060) | (18,107) | (11,953) | ||
Unallocated corporate expenses | (14,779) | (16,703) | 1,924 | ||
Total non-interest expense | $(72,602) | $(78,258) | $5,656 | ||
Net income (loss) before provision for income taxes | |||||
LMM commercial real estate | (19,678) | (93,761) | 74,083 | ||
Small business lending | 7,898 | 4,671 | 3,227 | ||
Unallocated corporate expenses | 88,983 | (16,703) | 105,686 | ||
Total net income (loss) before provision for income taxes | $77,203 | $(105,793) | $182,996 | ||
Three Months Ended March 31, | |||||
(in thousands) | 2025 | 2024 | $ Change | ||
Realized gain (loss) on financial instruments | |||||
Creation of mortgage servicing rights | |||||
SBA - 7(a) | $4,859 | $2,683 | $2,176 | ||
Multi-family | 515 | 1,733 | (1,218) | ||
USDA | 750 | — | 750 | ||
Small business loans | 544 | — | 544 | ||
Total Creation of mortgage servicing rights | $6,668 | $4,416 | $2,252 | ||
Loans | |||||
SBA - 7(a) | 18,937 | 10,435 | 8,502 | ||
Multi-family | 413 | 347 | 66 | ||
USDA | 179 | — | 179 | ||
Total loans | $19,529 | $10,782 | $8,747 | ||
Gain on sale business | |||||
SBA - 7(a) | 23,796 | 13,118 | 10,678 | ||
Multi-family | 928 | 2,080 | (1,152) | ||
USDA | 929 | — | 929 | ||
Small business loans | 544 | — | 544 | ||
Total gain on sale business | $26,197 | $15,198 | $10,999 | ||
Loans, held for sale | |||||
Bridge | (16,885) | — | (16,885) | ||
Construction | (19) | — | (19) | ||
Total loans, held for sale | $(16,904) | $— | $(16,904) | ||
Loans, net | |||||
Bridge | (393) | 328 | (721) | ||
Fixed rate | (13) | — | (13) | ||
Construction | (145) | (241) | 96 | ||
Other | (70) | (370) | 300 | ||
Total loans, net | $(621) | $(283) | $(338) | ||
Net realized gain (loss) on derivatives, at fair value | $1,946 | $4,392 | $(2,446) | ||
Net realized gain (loss) - all other | $51 | $(439) | $490 | ||
Net realized gain (loss) on financial instruments | $10,669 | $18,868 | $(8,199) | ||
Unrealized gain (loss) on financial instruments | |||||
Loans, held for sale | |||||
Fixed rate | 10 | — | 10 | ||
Freddie Mac | (309) | (141) | (168) | ||
SBA - 7(a) | (1,169) | 1,645 | (2,814) | ||
Other | — | 293 | (293) | ||
Total Loans, held for sale | $(1,468) | $1,797 | $(3,265) | ||
Net unrealized gain (loss) on derivatives, at fair value | $(515) | $376 | $(891) | ||
Net unrealized gain (loss) - all other | $233 | $2,459 | $(2,226) | ||
Net unrealized gain (loss) on financial instruments | $(1,750) | $4,632 | $(6,382) | ||
Three Months Ended March 31, | |||||
(in thousands) | 2025 | 2024 | $ Change | ||
Net Income (loss) | $81,965 | $(74,167) | $156,132 | ||
Reconciling items: | |||||
Unrealized (gain) loss on MSR - discontinued operations | 8,952 | — | 8,952 | ||
Unrealized (gain) loss on joint ventures | 5,639 | (35) | 5,674 | ||
Increase (decrease) in CECL reserve | (112,127) | (32,181) | (79,946) | ||
Increase (decrease) in valuation allowance | 99,718 | 146,180 | (46,462) | ||
Non-recurring REO impairment | 2,346 | 15,512 | (13,166) | ||
Non-cash compensation | 1,785 | 1,877 | (92) | ||
Merger transaction costs and other non-recurring expenses | 2,993 | 1,931 | 1,062 | ||
Bargain purchase (gain) loss | (102,471) | — | (102,471) | ||
Realized losses on sale of investments | 20,084 | — | 20,084 | ||
Total reconciling items | $(73,081) | $133,284 | $(206,365) | ||
Income tax adjustments | (4,744) | (5,141) | 397 | ||
Distributable earnings before realized losses | $4,140 | $53,976 | $(49,836) | ||
Realized losses on sale of investments, net of tax | (15,524) | — | (15,524) | ||
Distributable earnings | $(11,384) | $53,976 | $(65,360) | ||
Less: Distributable earnings attributable to non-controlling interests | 1,985 | 1,108 | 877 | ||
Less: Income attributable to participating shares | 2,228 | 2,335 | (107) | ||
Distributable earnings attributable to common stockholders | $(15,597) | $50,533 | $(66,130) | ||
Distributable earnings before realized losses on investments, net of tax per common share - basic | $0.00 | $0.29 | $(0.29) | ||
Distributable earnings before realized losses on investments, net of tax per common share - diluted | $0.00 | $0.29 | $(0.29) | ||
Distributable earnings per common share - basic | $(0.09) | $0.29 | $(0.38) | ||
Distributable earnings per common share - diluted | $(0.09) | $0.29 | $(0.38) | ||
(in thousands) | Quarter End Balance | Average Balance in Quarter | Highest Month End Balance in Quarter | ||
Q2 2023 | 1,792,366 | 1,945,290 | 2,022,433 | ||
Q3 2023 | 1,915,878 | 1,876,204 | 1,915,879 | ||
Q4 2023 | 1,952,152 | 1,889,494 | 1,952,152 | ||
Q1 2024 | 1,998,132 | 1,956,153 | 1,998,132 | ||
Q2 2024 | 2,087,661 | 2,058,766 | 2,087,661 | ||
Q3 2024 | 1,882,327 | 1,971,347 | 2,049,273 | ||
Q4 2024 | 1,718,131 | 1,795,627 | 1,846,677 | ||
Q1 2025 | 2,425,258 | 1,922,525 | 2,425,258 |
(in thousands) | Coupon Rate | Maturity Date | March 31, 2025 | ||
Senior secured notes principal amount(1) | 4.50% | 10/20/2026 | $350,000 | ||
Senior secured notes principal amount(2) | 9.375% | 3/1/2028 | 220,000 | ||
Term loan principal amount(3) | SOFR + 5.50% | 4/12/2029 | 115,250 | ||
Unamortized discount | (2,314) | ||||
Unamortized deferred financing costs | (11,426) | ||||
Total senior secured notes, net | $671,510 | ||||
Corporate debt principal amount(4) | 5.50% | 12/30/2028 | 110,000 | ||
Corporate debt principal amount(5) | 6.20% | 7/30/2026 | 90,081 | ||
Corporate debt principal amount(5) | 5.75% | 2/15/2026 | 158,900 | ||
Corporate debt principal amount(6) | 6.125% | 4/30/2025 | 102,426 | ||
Corporate debt principal amount(7) | 7.375% | 7/31/2027 | 100,000 | ||
Corporate debt principal amount(8) | 5.00% | 11/15/2026 | 100,000 | ||
Corporate debt principal amount(9) | 9.00% | 12/15/2029 | 130,000 | ||
Unamortized discount - corporate debt | (7,380) | ||||
Unamortized deferred financing costs - corporate debt | (3,121) | ||||
Junior subordinated notes principal amount(10) | SOFR + 3.10% | 3/30/2035 | 15,000 | ||
Junior subordinated notes principal amount(11) | SOFR + 3.10% | 4/30/2035 | 21,250 | ||
Total corporate debt, net | $817,156 | ||||
Total carrying amount of debt | $1,488,666 |
(in millions) | Collateral Asset Class | Issuance | Active / Collapsed | Bonds Issued |
Trusts (Firm sponsored) | ||||
Waterfall Victoria Mortgage Trust 2011-1 (SBC1) | LMM Acquired loans | February 2011 | Collapsed | $40.5 |
Waterfall Victoria Mortgage Trust 2011-3 (SBC3) | LMM Acquired loans | October 2011 | Collapsed | 143.4 |
Sutherland Commercial Mortgage Trust 2015-4 (SBC4) | LMM Acquired loans | August 2015 | Collapsed | 125.4 |
Sutherland Commercial Mortgage Trust 2018 (SBC7) | LMM Acquired loans | November 2018 | Collapsed | 217.0 |
ReadyCap Lending Small Business Trust 2015-1 (RCLT 2015-1) | Acquired SBA 7(a) loans | June 2015 | Collapsed | 189.5 |
ReadyCap Lending Small Business Loan Trust 2019-2 (RCLT 2019-2) | Originated SBA 7(a) loans, Acquired SBA 7(a) loans | December 2019 | Active | 131.0 |
ReadyCap Lending Small Business Loan Trust 2023-3 (RCLT 2023-3) | Originated SBA 7(a) loans, Acquired SBA 7(a) loans | July 2023 | Active | 132.0 |
Real Estate Mortgage Investment Conduits (REMICs) | ||||
ReadyCap Commercial Mortgage Trust 2014-1 (RCMT 2014-1) | LMM Originated conventional | September 2014 | Collapsed | 181.7 |
ReadyCap Commercial Mortgage Trust 2015-2 (RCMT 2015-2) | LMM Originated conventional | November 2015 | Collapsed | 218.8 |
ReadyCap Commercial Mortgage Trust 2016-3 (RCMT 2016-3) | LMM Originated conventional | November 2016 | Active | 162.1 |
ReadyCap Commercial Mortgage Trust 2018-4 (RCMT 2018-4) | LMM Originated conventional | March 2018 | Active | 165.0 |
Ready Capital Mortgage Trust 2019-5 (RCMT 2019-5) | LMM Originated conventional | January 2019 | Active | 355.8 |
Ready Capital Mortgage Trust 2019-6 (RCMT 2019-6) | LMM Originated conventional | November 2019 | Active | 430.7 |
Ready Capital Mortgage Trust 2022-7 (RCMT 2022-7) | LMM Originated conventional | April 2022 | Active | 276.8 |
Waterfall Victoria Mortgage Trust 2011-2 (SBC2) | LMM Acquired loans | March 2011 | Collapsed | 97.6 |
Sutherland Commercial Mortgage Trust 2018 (SBC6) | LMM Acquired loans | August 2017 | Active | 154.9 |
Sutherland Commercial Mortgage Trust 2019 (SBC8) | LMM Acquired loans | June 2019 | Active | 306.5 |
Sutherland Commercial Mortgage Trust 2020 (SBC9) | LMM Acquired loans | June 2020 | Collapsed | 203.6 |
Sutherland Commercial Mortgage Trust 2021 (SBC10) | LMM Acquired loans | May 2021 | Active | 232.6 |
Collateralized Loan Obligations (CLOs) | ||||
Ready Capital Mortgage Financing 2017– FL1 | LMM Originated bridge | August 2017 | Collapsed | 198.8 |
Ready Capital Mortgage Financing 2018 – FL2 | LMM Originated bridge | June 2018 | Collapsed | 217.1 |
Ready Capital Mortgage Financing 2019 – FL3 | LMM Originated bridge | April 2019 | Collapsed | 320.2 |
Ready Capital Mortgage Financing 2020 – FL4 | LMM Originated bridge | June 2020 | Collapsed | 405.3 |
Ready Capital Mortgage Financing 2021 – FL5 | LMM Originated bridge | March 2021 | Collapsed | 628.9 |
Ready Capital Mortgage Financing 2021 – FL6 | LMM Originated bridge | August 2021 | Collapsed | 652.5 |
Ready Capital Mortgage Financing 2021 – FL7 | LMM Originated bridge | November 2021 | Active | 927.2 |
Ready Capital Mortgage Financing 2022 – FL8 | LMM Originated bridge | March 2022 | Collapsed | 1,135.0 |
Ready Capital Mortgage Financing 2022 – FL9 | LMM Originated bridge | June 2022 | Active | 754.2 |
Ready Capital Mortgage Financing 2022 – FL10 | LMM Originated bridge | October 2022 | Active | 860.1 |
Ready Capital Mortgage Financing 2023 – FL11 | LMM Originated bridge | February 2023 | Active | 586.0 |
Ready Capital Mortgage Financing 2023 – FL12 | LMM Originated bridge | June 2023 | Active | 648.6 |
Trusts (Non-firm sponsored) | ||||
Freddie Mac Small Balance Mortgage Trust 2016-SB11 | Originated agency multi-family | January 2016 | Active | 110.0 |
Freddie Mac Small Balance Mortgage Trust 2016-SB18 | Originated agency multi-family | July 2016 | Active | 118.0 |
Freddie Mac Small Balance Mortgage Trust 2017-SB33 | Originated agency multi-family | June 2017 | Active | 197.9 |
Freddie Mac Small Balance Mortgage Trust 2018-SB45 | Originated agency multi-family | January 2018 | Active | 362.0 |
Freddie Mac Small Balance Mortgage Trust 2018-SB52 | Originated agency multi-family | September 2018 | Active | 505.0 |
Freddie Mac Small Balance Mortgage Trust 2018-SB56 | Originated agency multi-family | December 2018 | Active | 507.3 |
Key Commercial Mortgage Trust 2020-S3(1) | LMM Originated conventional | September 2020 | Active | 263.2 |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Maximum Shares (or Approximate Dollar Value) That May Yet Be Purchased Under the Program | |||||
January | 207 | $6.62 | — | $150,000,000 | ||||
February | 286,280 | 6.62 | — | 150,000,000 | ||||
March | 3,447,557 | 5.02 | 3,443,935 | 132,698,476 | ||||
Total | 3,734,044 | (1) | $5.14 | (2) | 3,443,935 | $132,698,476 |
Exhibit number | Exhibit description | |
2.1 | * | |
3.1 | * | |
3.2 | * | |
3.3 | * | |
3.4 | * | |
3.5 | * | |
3.6 | * | |
3.7 | * | |
3.8 | * | |
3.9 | * | |
3.10 | * | |
4.1 | * | |
4.2 | * | |
4.3 | * | |
4.4 | * | |
4.5 | * | |
4.6 | * | |
4.7 | * |
4.8 | * | |
4.9 | * | |
4.10 | * | |
4.11 | * | |
4.12 | * | |
4.13 | * | |
4.14 | * | |
4.15 | * | |
4.16 | * | |
10.1 | * | |
31.1 | ||
31.2 | ||
32.1 | ** | |
32.2 | ** |
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH | Inline XBRL Taxonomy Extension Scheme Document | |
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document | |
101.DEF | Inline XBRL Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (embedded with the Inline XBRL document) |
* | Previously filed. |
** | This exhibit is being furnished rather than filed, and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-K. |
Date: May 9, 2025 | By: | /s/ Thomas E. Capasse |
Thomas E. Capasse | ||
Chairman of the Board, Chief Executive Officer and Chief Investment Officer | ||
(Principal Executive Officer) | ||
Date: May 9, 2025 | By: | /s/ Andrew Ahlborn |
Andrew Ahlborn | ||
Chief Financial Officer | ||
(Principal Accounting and Financial Officer) |
| By: | /s/ Thomas E. Capasse | |||||||
| Name: Thomas E. Capasse | ||||||||
| Title: Chief Executive Officer | ||||||||
| By: | /s/ Andrew Ahlborn | |||||||
| Name: Andrew Ahlborn | ||||||||
| Title: Chief Financial Officer | ||||||||
| By: | /s/ Thomas E. Capasse | |||||||||||||
| Name: Thomas E. Capasse | ||||||||||||||
| Title: Chief Executive Officer | ||||||||||||||
| By: | /s/ Andrew Ahlborn | ||||||||||
| Name: Andrew Ahlborn | |||||||||||
| Title: Chief Financial Officer | |||||||||||