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 June 30, | Six Months Ended June 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Net income (loss) | $(53,677) | $(34,201) | $28,288 | $(108,368) | |||
Other comprehensive income (loss) - net change by component: | |||||||
Derivative financial instruments (cash flow hedges) | (3,341) | (1,440) | (7,285) | 4,805 | |||
Foreign currency translation | 1,747 | (116) | 2,560 | (723) | |||
Other comprehensive income (loss) | $(1,594) | $(1,556) | $(4,725) | $4,082 | |||
Comprehensive income (loss) | $(55,271) | $(35,757) | $23,563 | $(104,286) | |||
Less: Comprehensive income attributable to non-controlling interests | 1,807 | 1,806 | 4,246 | 1,964 | |||
Comprehensive income (loss) attributable to Ready Capital Corporation | $(57,078) | $(37,563) | $19,317 | $(106,250) | |||
Three Months Ended June 30, 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 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 | |||||||||
Dividend declared: | |||||||||||||||||||
Common stock ($0.125 per share) | — | — | — | — | — | (20,758) | — | (20,758) | — | (20,758) | |||||||||
OP units | — | — | — | — | — | — | — | — | (75) | (75) | |||||||||
$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 | — | — | — | — | — | — | — | — | (87) | (87) | |||||||||
Stock-based compensation | — | — | 55,010 | — | 440 | — | — | 440 | — | 440 | |||||||||
Conversion of OP units into common stock | — | — | 282,614 | — | 1,197 | — | — | 1,197 | (1,197) | — | |||||||||
Share repurchases | — | — | (8,518,464) | — | (37,779) | — | — | (37,779) | — | (37,779) | |||||||||
Reallocation of non-controlling interest | — | — | — | — | 1,581 | — | (33) | 1,548 | (1,548) | — | |||||||||
Net income (loss) | — | — | — | — | — | (55,491) | — | (55,491) | 1,814 | (53,677) | |||||||||
Other comprehensive loss | — | — | — | — | — | — | (1,587) | (1,587) | (7) | (1,594) | |||||||||
Balance at June 30, 2025 | 4,600,000 | $111,378 | 164,326,387 | $17 | $2,267,540 | $(528,524) | $(23,293) | $1,827,118 | $98,544 | $1,925,662 | |||||||||
Three Months Ended June 30, 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 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 | |||||||||
Dividend declared: | |||||||||||||||||||
Common stock ($0.30 per share) | — | — | — | — | — | (50,753) | — | (50,753) | — | (50,753) | |||||||||
OP units | — | — | — | — | — | — | — | — | (368) | (368) | |||||||||
$0.390625 per Series C preferred share | — | — | — | — | — | (131) | — | (131) | — | (131) | |||||||||
$0.406250 per Series E preferred share | — | — | — | — | — | (1,868) | — | (1,868) | — | (1,868) | |||||||||
Contributions, net | — | — | — | — | — | — | — | — | 600 | 600 | |||||||||
Conversion of OP units into common stock | — | — | 15,000 | — | 126 | — | — | 126 | (126) | — | |||||||||
Stock-based compensation | — | — | 60,154 | — | 496 | — | — | 496 | — | 496 | |||||||||
Share repurchases | — | — | (2,353,215) | — | (20,236) | — | — | (20,236) | — | (20,236) | |||||||||
Reallocation of non-controlling interest | — | — | — | — | (5) | — | (3) | (8) | 8 | — | |||||||||
Net income (loss) | — | — | — | — | — | (36,021) | — | (36,021) | 1,820 | (34,201) | |||||||||
Other comprehensive loss | — | — | — | — | — | — | (1,542) | (1,542) | (14) | (1,556) | |||||||||
Balance at June 30, 2024 | 4,600,000 | $111,378 | 168,167,272 | $17 | $2,287,684 | $(92,319) | $(13,880) | $2,292,880 | $98,985 | $2,391,865 | |||||||||
Six Months Ended June 30, 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 ($0.25 per share) | — | — | — | — | — | (43,451) | — | (43,451) | — | (43,451) | |||||||||
OP units | — | — | — | — | — | — | — | — | (186) | (186) | |||||||||
$0.78125 per Series C preferred share | — | — | — | — | — | (262) | — | (262) | — | (262) | |||||||||
$0.81250 per Series E preferred share | — | — | — | — | — | (3,736) | — | (3,736) | — | (3,736) | |||||||||
Distributions, net | — | — | — | — | — | — | — | — | (187) | (187) | |||||||||
Shares issued pursuant to merger transaction | — | — | 12,766,819 | — | 64,600 | — | — | 64,600 | — | 64,600 | |||||||||
Stock-based compensation | — | — | 737,090 | — | 6,678 | — | — | 6,678 | — | 6,678 | |||||||||
Conversion of OP units into common stock | — | — | 282,614 | — | 1,197 | — | — | 1,197 | (1,197) | — | |||||||||
Share repurchases | — | — | (12,252,508) | — | (57,099) | — | — | (57,099) | — | (57,099) | |||||||||
Reallocation of non-controlling interest | — | — | — | — | 1,873 | — | (44) | 1,829 | (1,829) | — | |||||||||
Net income | — | — | — | — | — | 24,014 | — | 24,014 | 4,274 | 28,288 | |||||||||
Other comprehensive loss | — | — | — | — | — | — | (4,697) | (4,697) | (28) | (4,725) | |||||||||
Balance at June 30, 2025 | 4,600,000 | $111,378 | 164,326,387 | $17 | $2,267,540 | $(528,524) | $(23,293) | $1,827,118 | $98,544 | $1,925,662 | |||||||||
Six Months Ended June 30, 2024 | |||||||||||||||||||
Preferred Series E | Common Stock | Additional Paid- In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (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 ($0.60 per share) | — | — | — | — | — | (102,429) | — | (102,429) | — | (102,429) | |||||||||
OP units | — | — | — | — | — | — | — | — | (740) | (740) | |||||||||
$0.78125 per Series C preferred share | — | — | — | — | — | (262) | — | (262) | — | (262) | |||||||||
$0.81250 per Series E preferred share | — | — | — | — | — | (3,736) | — | (3,736) | — | (3,736) | |||||||||
Contributions, net | — | — | (1,981) | — | (18) | — | — | (18) | 600 | 582 | |||||||||
Stock-based compensation | — | — | 386,072 | — | 4,606 | — | — | 4,606 | — | 4,606 | |||||||||
Conversion of OP units into common stock | — | — | 105,000 | — | 983 | — | — | 983 | (983) | — | |||||||||
Share repurchases | — | — | (4,597,924) | — | (40,271) | — | — | (40,271) | — | (40,271) | |||||||||
Reallocation of non-controlling interest | — | — | — | — | 395 | — | (75) | 320 | (320) | — | |||||||||
Net income (loss) | — | — | — | — | — | (110,305) | — | (110,305) | 1,937 | (108,368) | |||||||||
Other comprehensive income | — | — | — | — | — | — | 4,055 | 4,055 | 27 | 4,082 | |||||||||
Balance at June 30, 2024 | 4,600,000 | $111,378 | 168,167,272 | $17 | $2,287,684 | $(92,319) | $(13,880) | $2,292,880 | $98,985 | $2,391,865 | |||||||||
Six Months Ended June 30, | |||
(in thousands) | 2025 | 2024 | |
Cash Flows From Operating Activities: | |||
Net income (loss) | $28,288 | $(108,368) | |
Net income (loss) from discontinued operations, net of tax | (5,371) | (1,359) | |
Net income (loss) from continuing operations | 33,659 | (107,009) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Amortization of premiums, discounts, and debt issuance costs, net | 27,040 | 23,548 | |
Stock-based compensation | 3,419 | 3,768 | |
Recovery of loan losses | (100,928) | (45,415) | |
Impairment loss on real estate owned, held for sale | 6,614 | 26,102 | |
Repair and denial reserve | 1,158 | 606 | |
Paid-in-kind accrued interest | (1,048) | (28,547) | |
Provision for loan losses on purchased future receivables | — | 2,118 | |
Valuation allowance, loans held for sale | 139,464 | 227,167 | |
Net (income) loss of unconsolidated joint ventures, net of distributions | 6,451 | (808) | |
Realized (gains) losses, net | (27,506) | (25,491) | |
Unrealized (gains) losses, net | 2,499 | (3,318) | |
Bargain purchase (gain) loss | (88,090) | 18,306 | |
Loans, held for sale, net | 50,174 | 48,911 | |
Changes in operating assets and liabilities: | |||
Derivative instruments | (996) | 4,399 | |
Assets of consolidated VIEs (excluding loans, net), accrued interest and due from servicers | 50,882 | (23,249) | |
Receivable from third parties | 2,656 | 3,624 | |
Other assets | (105,016) | (70,970) | |
Accounts payable and other accrued liabilities | 31,554 | (3,681) | |
Net cash provided by operating activities from continuing operations | $31,986 | $50,061 | |
Net cash used for operating activities from discontinued operations | (23,784) | (25,554) | |
Net cash provided by operating activities | $8,202 | $24,507 | |
Cash Flows From Investing Activities: | |||
Origination of loans | (300,692) | (505,224) | |
Proceeds from disposition and principal payment of loans | 1,034,968 | 1,044,121 | |
Funding of investments held to maturity | (2,385) | — | |
Funding of real estate, held for sale | (215) | (981) | |
Proceeds from sale of real estate, held for sale | 8,312 | 34,684 | |
Investment in unconsolidated joint ventures | (11,897) | (2,245) | |
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 2,928 | 1,772 | |
Proceeds from liabilities under participation agreements | — | 25,697 | |
Payment of liabilities under participation agreements | (1,335) | (1,474) | |
Net cash provided by (used for) business acquisitions | 16,020 | (32,063) | |
Net cash provided by investing activities from continuing operations | $745,704 | $564,287 | |
Net cash provided by investing activities from discontinued operations | 43,316 | 60,709 | |
Net cash provided by investing activities | $789,020 | $624,996 | |
Cash Flows From Financing Activities: | |||
Proceeds from secured borrowings | 2,385,296 | 1,620,500 | |
Repayment of secured borrowings | (917,296) | (1,409,193) | |
Repayment of the Paycheck Protection Program Liquidity Facility borrowings | (8,134) | (11,206) | |
Repayment of securitized debt obligations of consolidated VIEs | (2,075,012) | (681,336) | |
Proceeds from senior secured note | 290,250 | 72,118 | |
Repayment of corporate debt | (231,511) | — | |
Repayment of guaranteed loan financing | (83,492) | (62,195) | |
Payment of deferred financing costs | (18,099) | (7,047) | |
Common stock repurchased | (55,151) | (39,190) | |
Settlement of share-based awards in satisfaction of withholding tax requirements | (1,948) | (1,081) | |
Dividend payments | (67,886) | (107,167) | |
Distributions, net | — | (18) | |
Net cash used for financing activities from continuing operations | $(782,983) | $(625,815) | |
Net cash used for financing activities from discontinued operations | (4,324) | (1,059) | |
Net cash used for financing activities | $(787,307) | $(626,874) | |
Net increase in cash, cash equivalents, and restricted cash including cash classified within assets held for sale | 9,915 | 22,629 | |
Less: Net increase (decrease) in cash and cash equivalents within assets held for sale | (29,792) | 6,096 | |
Net increase in cash, cash equivalents, and restricted cash | 39,707 | 16,533 | |
Cash, cash equivalents, and restricted cash beginning balance | 182,774 | 262,506 | |
Cash, cash equivalents, and restricted cash ending balance | $222,481 | $279,039 | |
Six Months Ended June 30, | |||
(in thousands) | 2025 | 2024 | |
Supplemental disclosures: | |||
Cash paid for interest | $263,125 | $355,012 | |
Cash received for income taxes | $(258) | $(11,940) | |
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 | $719,623 | |
Loans transferred to real estate owned, held for sale | $35,546 | $18,711 | |
Contingent consideration in connection with acquisitions | $15,242 | $3,926 | |
Non-cash financing activities | |||
Shares and OP units issued in connection with merger transactions | $64,600 | $— | |
Conversion of OP units to common stock | $1,197 | $983 | |
Cash, cash equivalents, and restricted cash reconciliation | |||
Cash and cash equivalents | $162,935 | $226,286 | |
Restricted cash | 56,769 | 29,971 | |
Cash, cash equivalents, and restricted cash in assets of consolidated VIEs | 2,777 | 22,782 | |
Cash, cash equivalents, and restricted cash ending balance | $222,481 | $279,039 | |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
Assets | |||||
Cash and cash equivalents | $16,020 | $— | $16,020 | ||
Loans, net | 158,469 | (10,624) | 147,845 | ||
Investment in unconsolidated joint ventures | 5,290 | — | 5,290 | ||
Other Assets: | |||||
Accrued interest | 1,231 | — | 1,231 | ||
Receivable from third party | 738 | — | 738 | ||
Other | 1,946 | — | 1,946 | ||
Total assets acquired | $183,694 | $(10,624) | $173,070 | ||
Liabilities | |||||
Accounts payable and other accrued liabilities | 1,214 | (605) | 609 | ||
Contract liability | — | 4,529 | 4,529 | ||
Total liabilities assumed | $1,214 | $3,924 | $5,138 | ||
Net assets acquired | $182,480 | $(14,548) | $167,932 |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
Fair value of net assets acquired | $182,480 | $(14,548) | $167,932 | ||
Consideration transferred based on the value of common stock issued | 64,600 | — | 64,600 | ||
Contingent consideration | 15,409 | (167) | 15,242 | ||
Total consideration transferred | $80,009 | $(167) | $79,842 | ||
Bargain purchase gain | $102,471 | $(14,381) | $88,090 |
(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 |
June 30, 2025 | December 31, 2024 | ||||||
(in thousands) | Carrying Value | UPB | Carrying Value | UPB | |||
Loans | |||||||
Bridge | $2,769,324 | $2,810,114 | $1,246,725 | $1,309,683 | |||
Fixed rate | 181,013 | 181,819 | 197,162 | 197,272 | |||
Construction | 885,016 | 1,181,888 | 733,276 | 874,558 | |||
Freddie Mac | 1,377 | 1,337 | — | — | |||
SBA - 7(a) | 1,073,576 | 1,121,093 | 1,043,120 | 1,075,845 | |||
Other | 156,388 | 176,943 | 157,866 | 177,155 | |||
Total Loans, net | $5,066,694 | $5,473,194 | $3,378,149 | $3,634,513 | |||
Loans in consolidated VIEs | |||||||
Bridge | 1,155,199 | 1,158,362 | 3,854,982 | 3,970,084 | |||
Fixed rate | 608,183 | 610,873 | 685,505 | 688,347 | |||
SBA - 7(a) | 160,591 | 169,546 | 178,498 | 189,737 | |||
Other | 194,245 | 195,210 | 211,076 | 212,020 | |||
Total Loans, net, in consolidated VIEs | $2,118,218 | $2,133,991 | $4,930,061 | $5,060,188 | |||
Loans, held for sale | |||||||
Bridge | 478,231 | 680,088 | 58,703 | 134,065 | |||
Fixed rate | — | — | 2,750 | 6,056 | |||
Construction | 20,012 | 31,421 | 54,392 | 77,487 | |||
Freddie Mac | 13,496 | 13,334 | 36,248 | 35,931 | |||
SBA - 7(a) | 116,499 | 108,573 | 87,825 | 81,524 | |||
Other | 4,546 | 4,399 | 1,708 | 1,817 | |||
Total Loans, held for sale | $632,784 | $837,815 | $241,626 | $336,880 | |||
Loans, held for sale in consolidated VIEs | |||||||
Bridge | 77,948 | 97,468 | — | — | |||
Total Loans, held for sale in consolidated VIEs | $77,948 | $97,468 | $— | $— | |||
Total | $7,895,644 | $8,542,468 | $8,549,836 | $9,031,581 | |||
Carrying Value by Year of Origination | |||||||||||||||
(in thousands) | UPB | 2025 | 2024 | 2023 | 2022 | 2021 | Pre 2021 | Total | |||||||
June 30, 2025 | |||||||||||||||
Bridge | $3,968,476 | $— | $293,425 | $235,194 | $1,566,376 | $1,694,179 | $135,349 | $3,924,523 | |||||||
Fixed rate | 792,692 | — | — | — | 109,309 | 176,861 | 503,026 | 789,196 | |||||||
Construction | 1,181,888 | 11,440 | 31,661 | 26,940 | 180,648 | 47,237 | 587,090 | 885,016 | |||||||
Freddie Mac | 1,337 | — | — | — | 1,377 | — | — | 1,377 | |||||||
SBA - 7(a) | 1,290,639 | 130,963 | 224,041 | 131,741 | 296,885 | 202,740 | 247,797 | 1,234,167 | |||||||
Other | 372,153 | 10,029 | 14,402 | 2,790 | 4,138 | 684 | 318,590 | 350,633 | |||||||
Total Loans, net | $7,607,185 | $152,432 | $563,529 | $396,665 | $2,158,733 | $2,121,701 | $1,791,852 | $7,184,912 | |||||||
Gross write-offs | $— | $231 | $178 | $588 | $688 | $9,825 | $11,510 | ||||||||
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 | |||||||
June 30, 2025 | |||||||||||||||
Current | $6,326,461 | $151,782 | $492,028 | $372,170 | $1,846,736 | $1,950,666 | $1,298,396 | $6,111,778 | |||||||
30 - 59 days past due | 293,590 | — | 63,524 | 98 | 172,736 | 27,857 | 28,017 | 292,232 | |||||||
60+ days past due | 987,134 | 650 | 7,977 | 24,397 | 139,261 | 143,178 | 465,439 | 780,902 | |||||||
Total Loans, net | $7,607,185 | $152,432 | $563,529 | $396,665 | $2,158,733 | $2,121,701 | $1,791,852 | $7,184,912 | |||||||
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 | |||||
June 30, 2025 | |||||||||||
Bridge | $3,408,464 | $266,194 | $249,865 | $3,924,523 | $233,559 | $79,695 | |||||
Fixed rate | 750,388 | 15,971 | 22,837 | 789,196 | 17,799 | 8,344 | |||||
Construction | 422,153 | — | 462,863 | 885,016 | 475,165 | 18,295 | |||||
Freddie Mac | — | — | 1,377 | 1,377 | 1,377 | — | |||||
SBA - 7(a) | 1,196,808 | 840 | 36,519 | 1,234,167 | 84,376 | — | |||||
Other | 333,965 | 9,227 | 7,441 | 350,633 | 12,639 | 404 | |||||
Total Loans, net | $6,111,778 | $292,232 | $780,902 | $7,184,912 | $824,915 | $106,738 | |||||
Percentage of loans outstanding | 85.0% | 4.1% | 10.9% | 100% | 11.5% | 1.5% | |||||
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) | June 30, 2025 | December 31, 2024 | |
Lodging | 19.5% | 20.9% | |
Gasoline Service Stations | 10.7 | 12.0 | |
Eating Places | 6.2 | 6.5 | |
Child Day Care Services | 5.6 | 5.7 | |
Offices of Physicians | 3.3 | 3.7 | |
General Freight Trucking, Local | 2.7 | 3.0 | |
Grocery Stores | 2.3 | 2.3 | |
Coin-Operated Laundries and Drycleaners | 1.4 | 1.4 | |
Car Washes | 1.3 | 1.1 | |
Assisted Living Facilities for the Elderly | 1.0 | 1.0 | |
Other | 46.0 | 42.4 | |
Total | 100.0% | 100.0% |
(in thousands) | Bridge | Fixed rate | Construction | SBA - 7(a) | Other | Total |
Three Months Ended June 30, 2025 | ||||||
Beginning balance | $31,049 | $9,230 | $166,051 | $30,035 | $2,855 | $239,220 |
Provision for (recoveries of) loan losses | 9,661 | (3,313) | (834) | 3,412 | 427 | 9,353 |
Measurement period adjustment - PCD | — | — | (7,198) | — | — | (7,198) |
Charge-offs and sales | — | (802) | (7,882) | (396) | — | (9,080) |
Recoveries | — | — | — | 284 | — | 284 |
Ending balance | $40,710 | $5,115 | $150,137 | $33,335 | $3,282 | $232,579 |
Three Months Ended June 30, 2024 | ||||||
Beginning balance | $13,181 | $7,264 | $23,755 | $20,579 | $2,644 | $67,423 |
Provision for (recoveries of) loan losses | 1,217 | (784) | (12,579) | (4,409) | (166) | (16,721) |
Charge-offs and sales | — | — | (3,266) | (2,680) | — | (5,946) |
Recoveries | — | — | — | 76 | — | 76 |
Ending balance | $14,398 | $6,480 | $7,910 | $13,566 | $2,478 | $44,832 |
Six Months Ended June 30, 2025 | ||||||
Beginning balance | $170,445 | $5,114 | $140,139 | $22,087 | $2,154 | $339,939 |
Provision for (recoveries of) loan losses | (129,735) | 1,803 | 9,656 | 11,500 | 1,128 | (105,648) |
PCD(1) | — | — | 9,428 | — | — | 9,428 |
Charge-offs and sales | — | (1,802) | (9,086) | (622) | — | (11,510) |
Recoveries | — | — | — | 370 | — | 370 |
Ending balance | $40,710 | $5,115 | $150,137 | $33,335 | $3,282 | $232,579 |
Six Months Ended June 30, 2024 | ||||||
Beginning balance | $36,241 | $13,598 | $30,870 | $17,867 | $3,029 | $101,605 |
Recoveries of loan losses | (21,843) | (4,489) | (18,215) | (246) | (485) | (45,278) |
Charge-offs and sales | — | (2,629) | (4,745) | (4,259) | (66) | (11,699) |
Recoveries | — | — | — | 204 | — | 204 |
Ending balance | $14,398 | $6,480 | $7,910 | $13,566 | $2,478 | $44,832 |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
UPB | $200,729 | $20,879 | $221,608 | ||
Allowance for credit losses | (16,626) | 7,198 | (9,428) | ||
Non-credit discount | (87,141) | (30,338) | (117,479) | ||
Purchase price of loans classified as PCD | $96,962 | $(2,261) | $94,701 |
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||
June 30, 2025 | |||||||
Assets: | |||||||
Money market funds (1) | $93,900 | $— | $— | $93,900 | |||
Loans, net | — | — | 1,263 | 1,263 | |||
Loans, held for sale | — | 134,541 | — | 134,541 | |||
PPP loans (2) | — | 688 | — | 688 | |||
MBS | — | 32,310 | — | 32,310 | |||
Derivative instruments | — | 5,754 | — | 5,754 | |||
Investment in unconsolidated joint ventures | — | — | 6,163 | 6,163 | |||
Preferred equity investment (3) | — | — | 88,583 | 88,583 | |||
Total assets | $93,900 | $173,293 | $96,009 | $363,202 | |||
Liabilities: | |||||||
Derivative instruments | — | 1,986 | — | 1,986 | |||
Contingent consideration | — | — | 17,189 | 17,189 | |||
Total liabilities | $— | $1,986 | $17,189 | $19,175 | |||
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 | ||||
June 30, 2025 | |||||||||
Assets: | |||||||||
Investment in unconsolidated joint ventures | $6,163 | Income Approach | Discount rate | 9.0% | 9.0% | ||||
Preferred equity investment | 88,583 | Income Approach | Discount rate | 12.0% | 12.0% | ||||
Total assets | $94,746 | ||||||||
Liabilities: | |||||||||
Contingent consideration- Madison One | $665 | Monte Carlo Simulation Model | Net income volatility | Risk- adjusted discount rate | 65.0% | 49.8% | 65.0% | 49.8% | ||||
Contingent consideration - UDF | 16,524 | Distributable Cash Flow Approach | Discount factor | 18.0% | 18.0% | ||||
Total liabilities | $17,189 | ||||||||
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 |
June 30, 2025 | December 31, 2024 | ||||||
(in thousands) | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||
Assets: | |||||||
Loans, net | $7,183,649 | $7,220,563 | $8,304,677 | $8,426,700 | |||
Loans, held for sale | 576,191 | 576,191 | 113,095 | 113,095 | |||
Servicing rights | 124,283 | 138,762 | 128,440 | 141,513 | |||
Total assets | $7,884,123 | $7,935,516 | $8,546,212 | $8,681,308 | |||
Liabilities: | |||||||
Secured borrowings | 3,506,670 | 3,506,670 | 2,035,176 | 2,035,176 | |||
Securitized debt obligations of consolidated VIEs, net | 1,513,297 | 1,478,175 | 3,580,513 | 3,532,765 | |||
Senior secured notes, net | 720,893 | 700,023 | 437,847 | 421,427 | |||
Guaranteed loan financing | 629,380 | 660,355 | 691,118 | 724,747 | |||
Corporate debt, net | 666,136 | 628,405 | 895,265 | 865,380 | |||
Total liabilities | $7,036,376 | $6,973,628 | $7,639,919 | $7,579,495 | |||
June 30, 2025 | December 31, 2024 | ||||||||||
Range of input values | Weighted Average | Range of input values | Weighted Average | ||||||||
SBA | |||||||||||
Forward prepayment rate | 4.1% | - | 21.7% | 9.7% | 9.9% | - | 21.6% | 10.6% | |||
Forward default rate | 0.0% | - | 4.0% | 1.4% | 0.0% | - | 6.8% | 6.6% | |||
Discount rate | 13.8% | - | 20.9% | 14.6% | 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% | 6.9% | 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% | - | 5.5% | 5.5% | 5.5% | - | 6.0% | 5.8% | |||
Servicing expense | 0.0% | - | 0.8% | 0.1% | 0.0% | - | 0.8% | 0.1% | |||
USDA | |||||||||||
Forward prepayment rate | 6.6% | - | 13.1% | 12.4% | 12.2% | - | 12.2% | 12.2% | |||
Discount rate | 7.8% | - | 8.3% | 8.2% | 4.9% | - | 5.2% | 5.1% | |||
Servicing expense | 0.1% | - | 0.8% | 0.3% | 0.1% | - | 0.3% | 0.2% | |||
Small business loans | |||||||||||
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) | June 30, 2025 | December 31, 2024 | |
Assets | |||
Cash and cash equivalents | $— | $24,328 | |
Restricted cash | — | 5,464 | |
Loans, net | — | 222 | |
Loans, held for sale | — | 158,152 | |
Loans eligible for repurchase from Ginnie Mae | — | 14,107 | |
Servicing rights(1) | — | 55,582 | |
Other assets | — | 29,740 | |
Total Assets | $— | $287,595 | |
Liabilities | |||
Secured borrowings | $— | $190,333 | |
Liabilities for loans eligible for repurchase from Ginnie Mae | — | 14,107 | |
Derivative instruments | — | 1,443 | |
Accounts payable and other accrued liabilities | — | 22,852 | |
Total Liabilities | $— | $228,735 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Interest income | $2,575 | $2,121 | $4,693 | $3,962 | |||
Interest expense | (2,491) | (2,755) | (4,515) | (5,285) | |||
Net interest income (expense) | $84 | $(634) | $178 | $(1,323) | |||
Non-interest income | |||||||
Residential mortgage banking activities | 10,540 | 11,353 | 20,955 | 20,595 | |||
Net realized gain (loss) on financial instruments | — | 2,938 | 9,832 | 2,938 | |||
Net unrealized gain (loss) on financial instruments | — | (7,219) | (8,952) | (7,219) | |||
Servicing income, net of amortization and impairment | 343 | 8,472 | 1,776 | 17,888 | |||
Other income | 4 | 4 | 8 | 8 | |||
Total non-interest income | $10,887 | $15,548 | $23,619 | $34,210 | |||
Non-interest expense | |||||||
Employee compensation and benefits | (2,792) | (5,818) | (6,353) | (11,502) | |||
Variable expenses on residential mortgage banking activities | (7,180) | (8,122) | (13,599) | (14,208) | |||
Professional fees | (276) | (259) | (824) | (412) | |||
Loan servicing expense | (2,274) | (2,412) | (3,702) | (4,741) | |||
Other operating expenses | (2,006) | (2,002) | (3,470) | (3,836) | |||
Total non-interest expense | $(14,528) | $(18,613) | $(27,948) | $(34,699) | |||
Loss from discontinued operations before income tax benefit | (3,557) | (3,699) | (4,151) | (1,812) | |||
Loss from disposal of discontinued operations before income tax benefit | (3,010) | — | (3,010) | — | |||
Net loss from discontinued operations before income tax benefit | $(6,567) | $(3,699) | $(7,161) | $(1,812) | |||
Income tax benefit | 1,641 | 925 | 1,790 | 453 | |||
Net loss from discontinued operations | $(4,926) | $(2,774) | $(5,371) | $(1,359) | |||
Pledged Assets Carrying Value | |||
(in thousands) | June 30, 2025 | December 31, 2024 | |
Collateral pledged - borrowings under credit facilities and other financing agreements | |||
Loans, held for sale | $13,496 | $36,249 | |
Loans, net | 425,174 | 351,443 | |
Total | $438,670 | $387,692 | |
Collateral pledged - borrowings under repurchase agreements | |||
Loans, net | 3,602,461 | 2,036,311 | |
MBS | 22,575 | 21,729 | |
Retained interest in assets of consolidated VIEs | 400,180 | 436,617 | |
Loans, held for sale | 463,616 | 81,708 | |
Real estate acquired in settlement of loans | 142,353 | 127,828 | |
Total | $4,631,185 | $2,704,193 | |
Total collateral pledged on secured borrowings | $5,069,855 | $3,091,885 | |
(in thousands) | Coupon Rate | Maturity Date | June 30, 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 | 270,000 | ||
Term loan principal amount(3) | SOFR + 5.50% | 4/12/2029 | 115,250 | ||
Unamortized discount | (2,173) | ||||
Unamortized deferred financing costs | (12,184) | ||||
Total senior secured notes, net | $720,893 | ||||
Corporate debt principal amount(4) | 5.50% | 12/30/2028 | 110,000 | ||
Corporate debt principal amount(5) | 6.20% | 7/30/2026 | 67,437 | ||
Corporate debt principal amount(5) | 5.75% | 2/15/2026 | 131,852 | ||
Corporate debt principal amount(6) | 7.375% | 7/31/2027 | 100,000 | ||
Corporate debt principal amount(7) | 5.00% | 11/15/2026 | 100,000 | ||
Corporate debt principal amount(8) | 9.00% | 12/15/2029 | 130,000 | ||
Unamortized discount - corporate debt | (6,597) | ||||
Unamortized deferred financing costs - corporate debt | (2,806) | ||||
Junior subordinated notes principal amount(9) | SOFR + 3.10% | 3/30/2035 | 15,000 | ||
Junior subordinated notes principal amount(10) | SOFR + 3.10% | 4/30/2035 | 21,250 | ||
Total corporate debt, net | $666,136 | ||||
Total carrying amount of debt | $1,387,029 |
(in thousands) | Weighted Average Interest Rate | Range of Interest Rates | Range of Maturities (Years) | Ending Balance | |||
June 30, 2025 | 8.21% | 1.45-9.50% | 2025-2048 | $629,380 | |||
December 31, 2024 | 8.69% | 1.45-10.00% | 2025-2048 | $691,118 |
(in thousands) | June 30, 2025 | December 31, 2024 | |
Assets: | |||
Cash and cash equivalents | $— | $— | |
Restricted cash | 2,777 | 8,411 | |
Loans, net | 2,118,218 | 4,930,061 | |
Loans, held for sale (1) | 77,948 | — | |
Preferred equity investment (2) | 88,583 | 92,810 | |
Receivable from third parties (2) | 1,551 | — | |
Accrued interest (2) | 89,997 | 140,607 | |
Other assets | 16,324 | 3,406 | |
Total assets | $2,395,398 | $5,175,295 | |
Liabilities: | |||
Securitized debt obligations of consolidated VIEs, net | 1,513,297 | 3,580,513 | |
Due to third parties (3) | 2,526 | 4,116 | |
Accounts payable and other accrued liabilities | 15,111 | 93 | |
Total liabilities | $1,530,934 | $3,584,722 |
June 30, 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 | $11,042 | $11,042 | 7.0% | $18,189 | $18,189 | 7.9% | |||||
ReadyCap Lending Small Business Trust 2023-3 | 84,773 | 83,481 | 7.6 | 101,004 | 99,390 | 8.4 | |||||
Sutherland Commercial Mortgage Trust 2019-SBC8 | 81,494 | 80,362 | 2.9 | 89,496 | 88,231 | 2.9 | |||||
Sutherland Commercial Mortgage Trust 2021-SBC10 | 54,170 | 53,416 | 1.6 | 60,816 | 59,907 | 1.6 | |||||
ReadyCap Commercial Mortgage Trust 2016-3 | 3,484 | 3,449 | 5.4 | 6,401 | 6,289 | 5.3 | |||||
ReadyCap Commercial Mortgage Trust 2018-4 | 46,004 | 44,967 | 4.7 | 46,980 | 45,707 | 4.6 | |||||
ReadyCap Commercial Mortgage Trust 2019-5 | 60,192 | 56,813 | 5.1 | 68,125 | 64,209 | 5.0 | |||||
ReadyCap Commercial Mortgage Trust 2019-6 | 138,233 | 135,607 | 3.6 | 168,946 | 165,943 | 3.5 | |||||
ReadyCap Commercial Mortgage Trust 2022-7 | 175,144 | 170,380 | 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 | 341,172 | 341,172 | 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 | — | — | — | 328,522 | 328,090 | 8.5 | |||||
Ready Capital Mortgage Financing 2022-FL10 | — | — | — | 576,655 | 573,924 | 8.2 | |||||
Ready Capital Mortgage Financing 2023-FL11 | 271,367 | 271,365 | 7.5 | 322,630 | 321,742 | 8.2 | |||||
Ready Capital Mortgage Financing 2023-FL12 | 261,470 | 261,243 | 7.9 | 331,692 | 330,437 | 8.2 | |||||
Total | $1,528,545 | $1,513,297 | 5.9% | $3,603,451 | $3,580,411 | 7.1% | |||||
June 30, 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 | $2,797 | $26,300 | $3,506 | $— | ||||||
Interest Rate Swaps - designated as hedges | Interest rate risk | 396,943 | 20,870 | (354) | 396,943 | 29,030 | — | |||||
FX forwards | Foreign exchange rate risk | 34,133 | 339 | (1,632) | 34,133 | 851 | (352) | |||||
Total | $457,376 | $24,006 | $(1,986) | $457,376 | $33,387 | $(352) | ||||||
(in thousands) | Net Realized Gain (Loss) | Net Unrealized Gain (Loss) | |
Three Months Ended June 30, 2025 | |||
Interest rate swaps | $2,019 | $(397) | |
Total | $2,019 | $(397) | |
Three Months Ended June 30, 2024 | |||
Interest rate swaps | $3,566 | $(1,803) | |
FX forwards | 912 | — | |
Total | $4,478 | $(1,803) | |
Six Months Ended June 30, 2025 | |||
Interest rate swaps | $3,965 | $(912) | |
Total | $3,965 | $(912) | |
Six Months Ended June 30, 2024 | |||
Interest rate swaps | $7,958 | $5,083 | |
FX forwards | 912 | — | |
Total | $8,870 | $5,083 |
(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 June 30, 2025 | $(244) | $(3,585) | $(3,341) | ||
Three Months Ended June 30, 2024 | $(278) | $(1,718) | $(1,440) | ||
Six Months Ended June 30, 2025 | $(496) | $(7,781) | $(7,285) | ||
Six Months Ended June 30, 2024 | $(561) | $4,244 | $4,805 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Management fee - total | $5.1million | $6.2million | $10.6million | $12.8million | |||
Management fee - amount unpaid | $10.7million | $12.8million | $10.7million | $12.8million | |||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Incentive fee distribution - total | $— | $— | $— | $— | |||
Incentive fee distribution - amount unpaid | $— | $— | $— | $— | |||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Reimbursable expenses payable to Manager - total | $4.0million | $3.3million | $8.9million | $6.1million | |||
Reimbursable expenses payable to Manager - amount unpaid | $5.2million | $3.0million | $5.2million | $3.0million | |||
(in thousands) | June 30, 2025 | December 31, 2024 | |
Other assets: | |||
Goodwill | $49,501 | $49,501 | |
Deferred loan exit fees | 23,707 | 27,811 | |
Accrued interest | 108,172 | 45,416 | |
Due from servicers | — | 7,039 | |
Intangible assets | 37,559 | 37,006 | |
Receivable from third party | 41,086 | 34,540 | |
Deferred financing costs | 10,168 | 8,053 | |
Deferred tax asset | 111,325 | 111,325 | |
Tax receivable | 50,021 | 1,654 | |
Right-of-use lease asset | 3,704 | 7,362 | |
PPP receivables | 12,587 | 18,363 | |
Investments held to maturity | 4,645 | 3,000 | |
Other | 10,236 | 11,416 | |
Other assets | $462,711 | $362,486 | |
Accounts payable and other accrued liabilities: | |||
Accrued salaries, wages and commissions | 31,204 | 39,565 | |
Accrued interest payable | 42,966 | 39,723 | |
Servicing principal and interest payable | 23,397 | 13,609 | |
Repair and denial reserve | 8,517 | 7,359 | |
Payable to related parties | 10,693 | 5,566 | |
PPP liabilities | 12,758 | 20,892 | |
Accrued professional fees | 7,910 | 5,538 | |
Lease payable | 8,778 | 17,806 | |
Liabilities of consolidated VIEs | 17,637 | 4,209 | |
Other | 20,792 | 33,784 | |
Total accounts payable and other accrued liabilities | $184,652 | $188,051 |
(in thousands) | June 30, 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 | ||
June 30, 2025 | |||||
Amortized intangible assets: | |||||
Internally developed software | $24,046 | $9,227 | $14,819 | ||
Customer relationships | 10,299 | 1,838 | 8,461 | ||
Broker network | 10,200 | 2,200 | 8,000 | ||
Other | 3,534 | 1,017 | 2,517 | ||
Unamortized intangible assets: | |||||
Trade name | 2,500 | — | 2,500 | ||
Trademark | 262 | — | 262 | ||
SBA license | 1,000 | — | 1,000 | ||
Total intangible assets | $51,841 | $14,282 | $37,559 | ||
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 June 30, | Six Months Ended June 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Other income: | |||||||
Origination income | $9,530 | $2,473 | $16,542 | $5,130 | |||
Change in repair and denial reserve | (511) | (959) | (1,334) | (2,166) | |||
ERC consulting income | — | 95 | 149 | 2,586 | |||
Other | 2,285 | 4,988 | 7,537 | 16,873 | |||
Total other income | $11,304 | $6,597 | $22,894 | $22,423 | |||
Other operating expenses: | |||||||
Origination costs | 5,571 | 1,415 | 12,027 | 3,229 | |||
Technology expense | 2,907 | 2,232 | 5,792 | 4,825 | |||
Rent and property tax expense | 2,337 | 1,372 | 3,691 | 3,690 | |||
Recruiting, training and travel expense | 665 | 525 | 1,445 | 1,232 | |||
Marketing expense | 340 | 350 | 703 | 749 | |||
Bad debt expense - ERC | — | 1,808 | 109 | 3,621 | |||
Other | 4,313 | 4,970 | 8,489 | 8,541 | |||
Total other operating expenses | $16,133 | $12,672 | $32,256 | $25,887 | |||
Declaration Date | Record Date | Payment Date | Dividend per Share | |||
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 | |||
June 13, 2025 | June 30, 2025 | July 31, 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 | ||
Granted | 22,506 | 113 | 5.02 | ||
Vested | (55,010) | (454) | 8.25 | ||
Forfeited | (63,955) | (479) | 7.49 | ||
Outstanding, June 30, 2025 | 1,736,510 | $13,288 | $7.65 | ||
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 | |||||
June 30, 2025 | |||||||||||
Assets | |||||||||||
FX forwards | $339 | $— | $339 | $— | $— | $339 | |||||
Interest rate swaps | 23,667 | 18,252 | 5,415 | — | — | 5,415 | |||||
Total | $24,006 | $18,252 | $5,754 | $— | $— | $5,754 | |||||
Liabilities | |||||||||||
Interest rate swaps | 354 | — | 354 | — | — | 354 | |||||
FX forwards | 1,632 | — | 1,632 | — | — | 1,632 | |||||
Secured borrowings | 3,506,670 | — | 3,506,670 | 3,506,670 | — | — | |||||
PPPLF | 12,758 | — | 12,758 | 12,586 | — | 172 | |||||
Total | $3,521,414 | $— | $3,521,414 | $3,519,256 | $— | $2,158 | |||||
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) | June 30, 2025 | December 31, 2024 | |
Loans, net | $515,425 | $444,838 | |
Loans, held for sale | $57,236 | $28,566 |
Three Months Ended June 30, 2025 | |||||
(in thousands) | LMM Commercial Real Estate | Small Business Lending | Total | ||
Interest income | $122,268 | $30,467 | $152,735 | ||
Interest expense | (116,088) | (19,749) | (135,837) | ||
Net interest income before provision for loan losses | $6,180 | $10,718 | $16,898 | ||
Provision for loan losses | (5,146) | (3,494) | (8,640) | ||
Net interest income after provision for loan losses | $1,034 | $7,224 | $8,258 | ||
Non-interest income (loss) | |||||
Net realized gain (loss) on financial instruments and real estate owned | 2,766 | 15,448 | 18,214 | ||
Net unrealized gain (loss) on financial instruments | (4,128) | 3,380 | (748) | ||
Valuation allowance, loans held for sale | (39,746) | — | (39,746) | ||
Servicing income, net | 1,931 | (2,235) | (304) | ||
Income (loss) on unconsolidated joint ventures | (155) | 11 | (144) | ||
Other income | 2,775 | 7,522 | 10,297 | ||
Total non-interest income (loss) | $(36,557) | $24,126 | $(12,431) | ||
Non-interest expense | |||||
Employee compensation and benefits | (6,479) | (14,435) | (20,914) | ||
Allocated employee compensation and benefits from related party | (360) | — | (360) | ||
Professional fees | (929) | (3,291) | (4,220) | ||
Loan servicing expense | (11,013) | (25) | (11,038) | ||
Impairment on real estate | (4,268) | — | (4,268) | ||
Other operating expenses | (4,472) | (9,972) | (14,444) | ||
Total non-interest expense | $(27,521) | $(27,723) | $(55,244) | ||
Income (loss) before unallocated expenses and provision for income taxes | $(63,044) | $3,627 | $(59,417) | ||
Unallocated corporate expenses | |||||
Loss on bargain purchase | (14,381) | ||||
Employee compensation and benefits | (5,485) | ||||
Professional fees | (2,148) | ||||
Management fees – related party | (5,072) | ||||
Transaction related expenses | (639) | ||||
Other operating expenses - net | (1,548) | ||||
Total unallocated corporate expenses | $(29,273) | ||||
Loss before provision for income taxes | $(88,690) | ||||
Total assets | $7,377,104 | $1,530,810 | $8,907,914 | ||
Six Months Ended June 30, 2025 | |||||
(in thousands) | LMM Commercial Real Estate | Small Business Lending | Total | ||
Interest income | $247,241 | $60,461 | $307,702 | ||
Interest expense | (236,442) | (39,861) | (276,303) | ||
Net interest income before recovery of (provision for) loan losses | $10,799 | $20,600 | $31,399 | ||
Recovery of (provision for) loan losses | 112,795 | (11,867) | 100,928 | ||
Net interest income after recovery of (provision for) loan losses | $123,594 | $8,733 | $132,327 | ||
Non-interest income | |||||
Net realized gain (loss) on financial instruments and real estate owned | (11,834) | 40,717 | 28,883 | ||
Net unrealized gain (loss) on financial instruments | (4,732) | 2,234 | (2,498) | ||
Valuation allowance, loans held for sale | (139,464) | — | (139,464) | ||
Servicing income, net | 3,346 | 2,806 | 6,152 | ||
Income (loss) on unconsolidated joint ventures | (4,160) | 34 | (4,126) | ||
Other income | 5,812 | 14,784 | 20,596 | ||
Total non-interest income (loss) | $(151,032) | $60,575 | $(90,457) | ||
Non-interest expense | |||||
Employee compensation and benefits | (12,350) | (29,739) | (42,089) | ||
Allocated employee compensation and benefits from related party | (688) | — | (688) | ||
Professional fees | (1,747) | (6,196) | (7,943) | ||
Loan servicing expense | (26,077) | (805) | (26,882) | ||
Impairment on real estate | (6,614) | — | (6,614) | ||
Other operating expenses | (7,808) | (21,043) | (28,851) | ||
Total non-interest expense | $(55,284) | $(57,783) | $(113,067) | ||
Income (loss) before unallocated expenses and provision for income taxes | $(82,722) | $11,525 | $(71,197) | ||
Unallocated corporate income (expenses) | |||||
Gain on bargain purchase | 88,090 | ||||
Employee compensation and benefits | (8,512) | ||||
Professional fees | (3,913) | ||||
Management fees – related party | (10,649) | ||||
Transaction related expenses | (3,333) | ||||
Other operating expenses - net | (1,973) | ||||
Total unallocated corporate income | $59,710 | ||||
Loss before provision for income taxes | $(11,487) | ||||
Total assets | $7,377,104 | $1,530,810 | $8,907,914 | ||
Three Months Ended June 30, 2024 | |||||
(in thousands) | LMM Commercial Real Estate | Small Business Lending | Total | ||
Interest income | $202,047 | $32,072 | $234,119 | ||
Interest expense | (158,344) | (24,823) | (183,167) | ||
Net interest income before recovery of loan losses | $43,703 | $7,249 | $50,952 | ||
Recovery of loan losses | 14,414 | 4,457 | 18,871 | ||
Net interest income after recovery of loan losses | $58,117 | $11,706 | $69,823 | ||
Non-interest income | |||||
Net realized gain (loss) on financial instruments and real estate owned | (10,089) | 17,339 | 7,250 | ||
Net unrealized gain (loss) on financial instruments | (1,497) | 140 | (1,357) | ||
Valuation allowance, loans held for sale | (80,987) | — | (80,987) | ||
Servicing income, net | 1,255 | 2,016 | 3,271 | ||
Income on unconsolidated joint ventures | 1,139 | — | 1,139 | ||
Other income | 4,796 | 376 | 5,172 | ||
Total non-interest income (loss) | $(85,383) | $19,871 | $(65,512) | ||
Non-interest expense | |||||
Employee compensation and benefits | (7,142) | (8,328) | (15,470) | ||
Allocated employee compensation and benefits from related party | (300) | — | (300) | ||
Professional fees | (874) | (2,930) | (3,804) | ||
Loan servicing expense | (10,896) | (116) | (11,012) | ||
Impairment on real estate | (9,130) | — | (9,130) | ||
Other operating expenses | (2,924) | (5,918) | (8,842) | ||
Total non-interest expense | $(31,266) | $(17,292) | $(48,558) | ||
Income (loss) before unallocated expenses and provision for income taxes | $(58,532) | $14,285 | $(44,247) | ||
Unallocated corporate expenses | |||||
Loss on bargain purchase | (18,306) | ||||
Employee compensation and benefits | (5,029) | ||||
Professional fees | (2,229) | ||||
Management fees – related party | (6,198) | ||||
Transaction related expenses | (1,592) | ||||
Other operating expenses - net | (2,405) | ||||
Total unallocated corporate expenses | $(35,759) | ||||
Loss before provision for income taxes | $(80,006) | ||||
Total assets | $9,527,088 | $1,367,463 | $10,894,551 | ||
Six Months Ended June 30, 2024 | |||||
(in thousands) | LMM Commercial Real Estate | Small Business Lending | Total | ||
Interest income | $402,810 | $63,663 | $466,473 | ||
Interest expense | (317,229) | (49,743) | (366,972) | ||
Net interest income before recovery of loan losses | $85,581 | $13,920 | $99,501 | ||
Recovery of loan losses | 45,169 | 246 | 45,415 | ||
Net interest income after recovery of loan losses | $130,750 | $14,166 | $144,916 | ||
Non-interest income | |||||
Net realized gain (loss) on financial instruments and real estate owned | (4,334) | 30,452 | 26,118 | ||
Net unrealized gain (loss) on financial instruments | 1,489 | 1,786 | 3,275 | ||
Valuation allowance, loans held for sale | (227,167) | — | (227,167) | ||
Servicing income, net | 2,553 | 4,476 | 7,029 | ||
Income on unconsolidated joint ventures | 1,607 | — | 1,607 | ||
Other income | 17,523 | 3,475 | 20,998 | ||
Total non-interest income (loss) | $(208,329) | $40,189 | $(168,140) | ||
Non-interest expense | |||||
Employee compensation and benefits | (14,618) | (17,620) | (32,238) | ||
Allocated employee compensation and benefits from related party | (550) | — | (550) | ||
Professional fees | (2,515) | (6,145) | (8,660) | ||
Loan servicing expense | (23,443) | (363) | (23,806) | ||
Impairment on real estate | (26,102) | — | (26,102) | ||
Other operating expenses | (7,486) | (11,271) | (18,757) | ||
Total non-interest expense | $(74,714) | $(35,399) | $(110,113) | ||
Income (loss) before unallocated expenses and provision for income taxes | $(152,293) | $18,956 | $(133,337) | ||
Unallocated corporate expenses | |||||
Loss on bargain purchase | (18,306) | ||||
Employee compensation and benefits | (8,925) | ||||
Professional fees | (4,438) | ||||
Management fees – related party | (12,846) | ||||
Transaction related expenses | (2,242) | ||||
Other operating expenses - net | (5,705) | ||||
Total unallocated corporate expenses | $(52,462) | ||||
Loss before provision for income taxes | $(185,799) | ||||
Total assets | $9,527,088 | $1,367,463 | $10,894,551 | ||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
($ in thousands, except share data) | 2025 | 2024 | 2025 | 2024 | |||
Net Income (loss) from continuing operations | $(48,751) | $(31,427) | $33,659 | $(107,009) | |||
Earnings per common share from continuing operations - basic | $(0.31) | $(0.21) | $0.15 | $(0.67) | |||
Earnings per common share from continuing operations - diluted | $(0.31) | $(0.21) | $0.15 | $(0.67) | |||
Distributable earnings before realized losses | $(12,704) | $36,884 | $(8,564) | $90,860 | |||
Distributable earnings before realized losses per common share - basic | $(0.10) | $0.19 | $(0.10) | $0.49 | |||
Distributable earnings before realized losses per common share - diluted | $(0.10) | $0.19 | $(0.10) | $0.49 | |||
Distributable earnings | $(19,792) | $16,631 | $(31,176) | $70,607 | |||
Distributable earnings per common share - basic | $(0.14) | $0.07 | $(0.24) | $0.37 | |||
Distributable earnings per common share - diluted | $(0.14) | $0.07 | $(0.23) | $0.37 | |||
Dividends declared per common share | $0.125 | $0.30 | $0.25 | $0.60 | |||
Dividend yield (1) | 11.4% | 14.7% | 11.4% | 14.7% | |||
Return on equity from continuing operations | (11.3)% | (6.1)% | 3.4% | (9.8)% | |||
Distributable return on equity before realized losses | (2.2)% | 5.8% | (1.6)% | 7.3% | |||
Distributable return on equity | (4.9)% | 2.6% | (4.0)% | 5.7% | |||
Book value per common share | $10.44 | $12.97 | $10.44 | $12.97 | |||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Loan originations: | |||||||
LMM loans | $173,356 | $256,485 | $252,013 | $516,161 | |||
SBL loans | 358,751 | 217,258 | 746,139 | 414,417 | |||
Total loan investment activity | $532,107 | $473,743 | $998,152 | $930,578 | |||
(in thousands) | June 30, 2025 | December 31, 2024 | $ Change | % Change | |||
Assets | |||||||
Cash and cash equivalents | $162,935 | $143,803 | $19,132 | 13.3% | |||
Restricted cash | 56,769 | 30,560 | 26,209 | 85.8 | |||
Loans, net (including $1,263 and $3,533 held at fair value) | 5,066,694 | 3,378,149 | 1,688,545 | 50.0 | |||
Loans, held for sale (including $134,541 and $128,531 held at fair value and net of valuation allowance of $212,693 and $97,620) | 632,784 | 241,626 | 391,158 | 161.9 | |||
Mortgage-backed securities | 32,310 | 31,006 | 1,304 | 4.2 | |||
Investment in unconsolidated joint ventures (including $6,163 and $6,577 held at fair value) | 169,369 | 161,561 | 7,808 | 4.8 | |||
Derivative instruments | 5,754 | 7,963 | (2,209) | (27.7) | |||
Servicing rights | 124,283 | 128,440 | (4,157) | (3.2) | |||
Real estate owned, held for sale | 199,790 | 193,437 | 6,353 | 3.3 | |||
Other assets | 462,711 | 362,486 | 100,225 | 27.6 | |||
Assets of consolidated VIEs | 2,395,398 | 5,175,295 | (2,779,897) | (53.7) | |||
Assets held for sale | — | 287,595 | (287,595) | (100.0) | |||
Total Assets | $9,308,797 | $10,141,921 | $(833,124) | (8.2)% | |||
Liabilities | |||||||
Secured borrowings | 3,506,670 | 2,035,176 | 1,471,494 | 72.3 | |||
Securitized debt obligations of consolidated VIEs, net | 1,513,297 | 3,580,513 | (2,067,216) | (57.7) | |||
Senior secured notes, net | 720,893 | 437,847 | 283,046 | 64.6 | |||
Corporate debt, net | 666,136 | 895,265 | (229,129) | (25.6) | |||
Guaranteed loan financing | 629,380 | 691,118 | (61,738) | (8.9) | |||
Contingent consideration | 17,189 | 573 | 16,616 | 2,899.8 | |||
Derivative instruments | 1,986 | 352 | 1,634 | 464.2 | |||
Dividends payable | 22,917 | 43,168 | (20,251) | (46.9) | |||
Loan participations sold | 101,863 | 95,578 | 6,285 | 6.6 | |||
Due to third parties | 9,791 | 1,442 | 8,349 | 579.0 | |||
Accounts payable and other accrued liabilities | 184,652 | 188,051 | (3,399) | (1.8) | |||
Liabilities held for sale | — | 228,735 | (228,735) | (100.0) | |||
Total Liabilities | $7,374,774 | $8,197,818 | $(823,044) | (10.0)% | |||
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, 164,326,387 and 162,792,372 shares issued and outstanding, respectively | 17 | 17 | — | — | |||
Additional paid-in capital | 2,267,540 | 2,250,291 | 17,249 | 0.8 | |||
Retained earnings (deficit) | (528,524) | (505,089) | (23,435) | 4.6 | |||
Accumulated other comprehensive loss | (23,293) | (18,552) | (4,741) | (25.6) | |||
Total Ready Capital Corporation equity | 1,827,118 | 1,838,045 | (10,927) | (0.6) | |||
Non-controlling interests | 98,544 | 97,697 | 847 | 0.9 | |||
Total Stockholders’ Equity | $1,925,662 | $1,935,742 | $(10,080) | (0.5)% | |||
Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity | $9,308,797 | $10,141,921 | $(833,124) | (8.2)% |
(in thousands) | LMM Commercial Real Estate | Small Business Lending | Total | ||
June 30, 2025 | |||||
Assets | |||||
Loans, net | $5,937,804 | $1,247,108 | $7,184,912 | ||
Loans, held for sale | 589,687 | 121,045 | 710,732 | ||
MBS | 32,310 | — | 32,310 | ||
Investment in unconsolidated joint ventures | 168,903 | 466 | 169,369 | ||
Servicing rights | 64,206 | 60,077 | 124,283 | ||
Real estate owned, held for sale | 216,108 | 5 | 216,113 | ||
Liabilities | |||||
Secured borrowings | 3,179,283 | 327,387 | 3,506,670 | ||
Securitized debt obligations of consolidated VIEs | 1,418,774 | 94,523 | 1,513,297 | ||
Senior secured notes, net | 713,270 | 7,623 | 720,893 | ||
Corporate debt, net | 666,136 | — | 666,136 | ||
Guaranteed loan financing | — | 629,380 | 629,380 | ||
Loan participations sold | 101,863 | — | 101,863 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(in thousands) | 2025 | 2024 | $ Change | 2025 | 2024 | $ Change | |||||
Interest income | |||||||||||
LMM commercial real estate | $122,268 | $202,047 | $(79,779) | $247,241 | $402,810 | $(155,569) | |||||
Small business lending | 30,467 | 32,072 | (1,605) | 60,461 | 63,663 | (3,202) | |||||
Total interest income | $152,735 | $234,119 | $(81,384) | $307,702 | $466,473 | $(158,771) | |||||
Interest expense | |||||||||||
LMM commercial real estate | (116,088) | (158,344) | $42,256 | (236,442) | (317,229) | 80,787 | |||||
Small business lending | (19,749) | (24,823) | 5,074 | (39,861) | (49,743) | 9,882 | |||||
Total interest expense | $(135,837) | $(183,167) | $47,330 | $(276,303) | $(366,972) | $90,669 | |||||
Net interest income before recovery of (provision for) loan losses | $16,898 | $50,952 | $(34,054) | $31,399 | $99,501 | $(68,102) | |||||
Recovery of (provision for) loan losses | |||||||||||
LMM commercial real estate | (5,146) | 14,414 | (19,560) | 112,795 | 45,169 | 67,626 | |||||
Small business lending | (3,494) | 4,457 | (7,951) | (11,867) | 246 | (12,113) | |||||
Total recovery of (provision for) loan losses | $(8,640) | $18,871 | $(27,511) | $100,928 | $45,415 | $55,513 | |||||
Net interest income after recovery of (provision for) loan losses | $8,258 | $69,823 | $(61,565) | $132,327 | $144,916 | $(12,589) | |||||
Non-interest income (loss) | |||||||||||
LMM commercial real estate | (36,557) | (85,383) | 48,826 | (151,032) | (208,329) | 57,297 | |||||
Small business lending | 24,126 | 19,871 | 4,255 | 60,575 | 40,189 | 20,386 | |||||
Unallocated corporate income | (14,240) | (16,881) | 2,641 | 89,522 | (16,881) | 106,403 | |||||
Total non-interest income (loss) | $(26,671) | $(82,393) | $55,722 | $(935) | $(185,021) | $184,086 | |||||
Non-interest expense | |||||||||||
LMM commercial real estate | (27,521) | (31,266) | 3,745 | (55,284) | (74,714) | 19,430 | |||||
Small business lending | (27,723) | (17,292) | (10,431) | (57,783) | (35,399) | (22,384) | |||||
Unallocated corporate expenses | (15,033) | (18,878) | 3,845 | (29,812) | (35,581) | 5,769 | |||||
Total non-interest expense | $(70,277) | $(67,436) | $(2,841) | $(142,879) | $(145,694) | $2,815 | |||||
Net income (loss) before provision for income taxes | |||||||||||
LMM commercial real estate | (63,044) | (58,532) | (4,512) | (82,722) | (152,293) | 69,571 | |||||
Small business lending | 3,627 | 14,285 | (10,658) | 11,525 | 18,956 | (7,431) | |||||
Unallocated corporate expenses | (29,273) | (35,759) | 6,486 | 59,710 | (52,462) | 112,172 | |||||
Total net income (loss) before provision for income taxes | $(88,690) | $(80,006) | $(8,684) | $(11,487) | $(185,799) | $174,312 | |||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(in thousands) | 2025 | 2024 | $ Change | 2025 | 2024 | $ Change | |||||
Realized gain (loss) on financial instruments | |||||||||||
Creation of mortgage servicing rights | |||||||||||
SBA - 7(a) | $2,230 | $3,236 | $(1,006) | $7,089 | $5,919 | $1,170 | |||||
Multi-family | 2,113 | 883 | 1,230 | 2,628 | 2,616 | 12 | |||||
USDA | 2,420 | 467 | 1,953 | 3,170 | 467 | 2,703 | |||||
Small business loans | 580 | — | 580 | 1,124 | — | 1,124 | |||||
Total Creation of mortgage servicing rights | $7,343 | $4,586 | $2,757 | $14,011 | $9,002 | $5,009 | |||||
Loans | |||||||||||
SBA - 7(a) | 8,540 | 14,103 | (5,563) | 27,477 | 24,538 | 2,939 | |||||
Multi-family | 110 | 291 | (181) | 523 | 638 | (115) | |||||
USDA | 1,678 | — | 1,678 | 1,857 | — | 1,857 | |||||
Total loans | $10,328 | $14,394 | $(4,066) | $29,857 | $25,176 | $4,681 | |||||
Gain on sale business | |||||||||||
SBA - 7(a) | 10,770 | 17,339 | (6,569) | 34,566 | 30,457 | 4,109 | |||||
Multi-family | 2,223 | 1,174 | 1,049 | 3,151 | 3,254 | (103) | |||||
USDA | 4,098 | 467 | 3,631 | 5,027 | 467 | 4,560 | |||||
Small business loans | 580 | — | 580 | 1,124 | — | 1,124 | |||||
Total gain on sale business | $17,671 | $18,980 | $(1,309) | $43,868 | $34,178 | $9,690 | |||||
Loans, held for sale | |||||||||||
Bridge | — | — | — | (16,885) | — | (16,885) | |||||
Construction | — | (4,922) | 4,922 | (19) | (4,922) | 4,903 | |||||
Total loans, held for sale | $— | $(4,922) | $4,922 | $(16,904) | $(4,922) | $(11,982) | |||||
Loans, net | |||||||||||
Bridge | (605) | (2) | (603) | (998) | 326 | (1,324) | |||||
Fixed rate | (3) | — | (3) | (16) | — | (16) | |||||
Construction | 71 | (6,697) | 6,768 | (74) | (6,938) | 6,864 | |||||
Other | (31) | (15) | (16) | (101) | (385) | 284 | |||||
Total loans, net | $(568) | $(6,714) | $6,146 | $(1,189) | $(6,997) | $5,808 | |||||
Net realized gain (loss) on derivatives, at fair value | $2,019 | $4,478 | $(2,459) | $3,965 | $8,870 | $(4,905) | |||||
Net realized gain (loss) - all other | $(908) | $(4,572) | $3,664 | $(857) | $(5,011) | $4,154 | |||||
Net realized gain (loss) on financial instruments | $18,214 | $7,250 | $10,964 | $28,883 | $26,118 | $2,765 | |||||
Unrealized gain (loss) on financial instruments | |||||||||||
Loans, held for sale | |||||||||||
Fixed rate | — | (884) | 884 | 10 | (884) | 894 | |||||
Freddie Mac | 154 | (78) | $232 | (155) | (219) | 64 | |||||
SBA - 7(a) | 2,793 | 141 | $2,652 | 1,624 | 1,786 | (162) | |||||
Other | 238 | — | 238 | 238 | 293 | (55) | |||||
Total Loans, held for sale | $3,185 | $(821) | $4,006 | $1,717 | $976 | $741 | |||||
Net unrealized gain (loss) on preferred equity, at fair value | $(4,227) | $— | $(4,227) | $(4,227) | $— | $(4,227) | |||||
Net unrealized gain (loss) on derivatives, at fair value | $(397) | $(789) | $392 | $(912) | $(413) | $(499) | |||||
Net unrealized gain (loss) - all other | $(175) | $253 | $(428) | $58 | $2,712 | $(2,654) | |||||
Net unrealized gain (loss) on financial instruments | $(1,614) | $(1,357) | $(257) | $(3,364) | $3,275 | $(6,639) | |||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
(in thousands) | 2025 | 2024 | $ Change | 2025 | 2024 | $ Change | |||||
Net Income (loss) | $(53,677) | $(34,201) | $(19,476) | $28,288 | $(108,368) | $136,656 | |||||
Reconciling items: | |||||||||||
Unrealized (gain) loss on MSR - discontinued operations | — | 7,219 | (7,219) | 8,952 | 7,219 | 1,733 | |||||
Unrealized (gain) loss on joint ventures | 1,019 | (626) | 1,645 | 6,658 | (661) | 7,319 | |||||
Increase (decrease) in CECL reserve | 487 | (24,574) | 25,061 | (111,640) | (56,755) | (54,885) | |||||
Increase (decrease) in valuation allowance | 39,746 | 80,987 | (41,241) | 139,464 | 227,167 | (87,703) | |||||
Non-recurring REO impairment | 4,418 | 8,474 | (4,056) | 6,764 | 23,986 | (17,222) | |||||
Non-cash compensation | 1,634 | 1,891 | (257) | 3,419 | 3,768 | (349) | |||||
Unrealized (gain) loss on preferred equity, at fair value | (4,227) | — | (4,227) | (4,227) | — | (4,227) | |||||
Merger transaction costs and other non-recurring expenses | 12,115 | 4,852 | 7,263 | 15,108 | 6,783 | 8,325 | |||||
Bargain purchase (gain) loss | 14,381 | 18,306 | (3,925) | (88,090) | 18,306 | (106,396) | |||||
Realized losses on sale of investments | 8,896 | 22,355 | (13,459) | 28,980 | 22,355 | 6,625 | |||||
Total reconciling items | $78,469 | $118,884 | $(40,415) | $5,388 | $252,168 | $(246,780) | |||||
Income tax adjustments | (37,496) | (47,799) | 10,303 | (42,240) | (52,940) | 10,700 | |||||
Distributable earnings before realized losses | $(12,704) | $36,884 | $(49,588) | $(8,564) | $90,860 | $(99,424) | |||||
Realized losses on sale of investments, net of tax | (7,088) | (20,253) | 13,165 | (22,612) | (20,253) | (2,359) | |||||
Distributable earnings | $(19,792) | $16,631 | $(36,423) | $(31,176) | $70,607 | $(101,783) | |||||
Less: Distributable earnings attributable to non- controlling interests | 1,990 | 2,206 | (216) | 3,946 | 3,312 | 634 | |||||
Less: Income attributable to participating shares | 2,214 | 2,301 | (87) | 4,442 | 4,636 | (194) | |||||
Distributable earnings attributable to common stockholders | $(23,996) | $12,124 | $(36,120) | $(39,564) | $62,659 | $(102,223) | |||||
Distributable earnings before realized losses on investments, net of tax per common share - basic | $(0.10) | $0.19 | $(0.29) | $(0.10) | $0.49 | $(0.59) | |||||
Distributable earnings before realized losses on investments, net of tax per common share - diluted | $(0.10) | $0.19 | $(0.29) | $(0.10) | $0.49 | $(0.59) | |||||
Distributable earnings per common share - basic | $(0.14) | $0.07 | $(0.21) | $(0.24) | $0.37 | $(0.61) | |||||
Distributable earnings per common share - diluted | $(0.14) | $0.07 | $(0.21) | $(0.23) | $0.37 | $(0.60) | |||||
(in thousands) | Quarter End Balance | Average Balance in Quarter | Highest Month End Balance in Quarter | ||
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 | ||
Q2 2025 | 3,135,931 | 2,673,449 | 3,135,931 |
(in thousands) | Coupon Rate | Maturity Date | June 30, 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 | 270,000 | ||
Term loan principal amount(3) | SOFR + 5.50% | 4/12/2029 | 115,250 | ||
Unamortized discount | (2,173) | ||||
Unamortized deferred financing costs | (12,184) | ||||
Total senior secured notes, net | $720,893 | ||||
Corporate debt principal amount(4) | 5.50% | 12/30/2028 | 110,000 | ||
Corporate debt principal amount(5) | 6.20% | 7/30/2026 | 67,437 | ||
Corporate debt principal amount(5) | 5.75% | 2/15/2026 | 131,852 | ||
Corporate debt principal amount(6) | 7.375% | 7/31/2027 | 100,000 | ||
Corporate debt principal amount(7) | 5.00% | 11/15/2026 | 100,000 | ||
Corporate debt principal amount(8) | 9.00% | 12/15/2029 | 130,000 | ||
Unamortized discount - corporate debt | (6,597) | ||||
Unamortized deferred financing costs - corporate debt | (2,806) | ||||
Junior subordinated notes principal amount(9) | SOFR + 3.10% | 3/30/2035 | 15,000 | ||
Junior subordinated notes principal amount(10) | SOFR + 3.10% | 4/30/2035 | 21,250 | ||
Total corporate debt, net | $666,136 | ||||
Total carrying amount of debt | $1,387,029 |
(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 | Collapsed | 754.2 |
Ready Capital Mortgage Financing 2022 – FL10 | LMM Originated bridge | October 2022 | Collapsed | 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 |
June 30, 2025 | |||||||
(in thousands) | Counterparty Rating | Amount of Risk | Weighted Average Months to Maturity for Agreement | Percentage of Stockholders’ Equity | |||
JPMorgan Chase Bank, N.A. | AA-/Aa2 | $1,093,944 | 13 | 56.8% | |||
Churchill MRA Funding I LLC | Not rated | $102,696 | 2 | 5.3% | |||
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 | |||||
April | 2,000,000 | $4.65 | 2,000,000 | $123,398,451 | ||||
May | 6,515,274 | 4.33 | 6,507,984 | 95,207,926 | ||||
June | 3,190 | 4.41 | — | 95,207,926 | ||||
Total | 8,518,464 | (1) | $4.41 | (2) | 8,507,984 | $95,207,926 |
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 | * | |
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: August 8, 2025 | By: | /s/ Thomas E. Capasse |
Thomas E. Capasse | ||
Chairman of the Board, Chief Executive Officer and Chief Investment Officer | ||
(Principal Executive Officer) | ||
Date: August 8, 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 | |||||||||||