エドガーで原本を確認する
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 |
(in thousands) |
March 31, 2025 |
December 31, 2024 |
|
Assets |
|||
Cash and cash equivalents |
$205,917 |
$143,803 |
|
Restricted cash |
39,603 |
30,560 |
|
Loans, net (including $2,018 and $3,533 held at fair value) |
4,354,017 |
3,378,149 |
|
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 |
|
Mortgage-backed securities |
31,415 |
31,006 |
|
Investment in unconsolidated joint ventures (including $6,371 and $6,577 held at fair value) |
170,920 |
161,561 |
|
Derivative instruments |
6,907 |
7,963 |
|
Servicing rights |
129,814 |
128,440 |
|
Real estate owned, held for sale |
199,910 |
193,437 |
|
Other assets |
399,702 |
362,486 |
|
Assets of consolidated VIEs |
3,723,738 |
5,175,295 |
|
Assets held for sale (refer to Note 9) |
185,782 |
287,595 |
|
Total Assets |
$9,976,451 |
$10,141,921 |
|
Liabilities |
|||
Secured borrowings |
2,713,415 |
2,035,176 |
|
Securitized debt obligations of consolidated VIEs, net |
2,574,139 |
3,580,513 |
|
Senior secured notes, net |
671,510 |
437,847 |
|
Corporate debt, net |
817,156 |
895,265 |
|
Guaranteed loan financing |
668,847 |
691,118 |
|
Contingent consideration |
15,982 |
573 |
|
Derivative instruments |
575 |
352 |
|
Dividends payable |
23,929 |
43,168 |
|
Loan participations sold |
98,128 |
95,578 |
|
Due to third parties |
1,071 |
1,442 |
|
Accounts payable and other accrued liabilities |
185,533 |
188,051 |
|
Liabilities held for sale (refer to Note 9) |
156,614 |
228,735 |
|
Total Liabilities |
$7,926,899 |
$8,197,818 |
|
Preferred stock Series C, liquidation preference $25.00 per share (refer to Note 20) |
8,361 |
8,361 |
|
Commitments & contingencies (refer to Note 24) |
|||
Stockholders’ Equity |
|||
Preferred stock Series E, liquidation preference $25.00 per share (refer to Note 20) |
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 |
|
Retained earnings (deficit) |
(450,276) |
(505,089) |
|
Accumulated other comprehensive loss |
(21,673) |
(18,552) |
|
Total Ready Capital Corporation equity |
1,941,547 |
1,838,045 |
|
Non-controlling interests |
99,644 |
97,697 |
|
Total Stockholders’ Equity |
$2,041,191 |
$1,935,742 |
|
Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity |
$9,976,451 |
$10,141,921 |
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% |
LTV(1) |
|||||||||||||
(in thousands) |
0.0 – 20.0% |
20.1 – 40.0% |
40.1 – 60.0% |
60.1 – 80.0% |
80.1 – 100.0% |
Greater than
100.0%
|
Total |
||||||
March 31, 2025 |
|||||||||||||
Bridge |
$— |
$96,692 |
$531,953 |
$2,926,995 |
$547,304 |
$273,407 |
$4,376,351 |
||||||
Fixed rate |
1,023 |
31,609 |
347,931 |
415,858 |
19,308 |
— |
815,729 |
||||||
Construction |
8,665 |
34,915 |
187,496 |
144,279 |
44,053 |
463,388 |
882,796 |
||||||
Freddie Mac |
— |
— |
— |
1,377 |
— |
— |
$1,377 |
||||||
SBA - 7(a) |
13,800 |
63,028 |
187,048 |
338,460 |
221,996 |
432,512 |
1,256,844 |
||||||
Other |
98,159 |
112,742 |
90,934 |
29,898 |
16,372 |
4,875 |
352,980 |
||||||
Total Loans, net |
$121,647 |
$338,986 |
$1,345,362 |
$3,856,867 |
$849,033 |
$1,174,182 |
$7,686,077 |
||||||
Percentage of loans outstanding |
1.6% |
4.4% |
17.5% |
50.2% |
11.0% |
15.3% |
100.0% |
||||||
December 31, 2024 |
|||||||||||||
Bridge |
$— |
$103,364 |
$553,768 |
$3,230,535 |
$471,137 |
$742,903 |
$5,101,707 |
||||||
Fixed rate |
1,348 |
29,799 |
379,043 |
446,246 |
26,231 |
— |
882,667 |
||||||
Construction |
27,973 |
4,725 |
90,615 |
160,507 |
17,892 |
431,564 |
733,276 |
||||||
SBA - 7(a) |
14,222 |
65,279 |
184,965 |
354,891 |
219,371 |
382,890 |
1,221,618 |
||||||
Other |
105,417 |
116,848 |
61,974 |
62,662 |
16,661 |
5,380 |
368,942 |
||||||
Total Loans, net |
$148,960 |
$320,015 |
$1,270,365 |
$4,254,841 |
$751,292 |
$1,562,737 |
$8,308,210 |
||||||
Percentage of loans outstanding |
1.8% |
3.9% |
15.3% |
51.2% |
9.0% |
18.8% |
100.0% |
||||||
Geographic Concentration (% of UPB) |
March 31, 2025 |
December 31, 2024 |
|
Texas |
22.4% |
19.3% |
|
California |
11.1 |
10.8 |
|
Florida |
8.5 |
7.9 |
|
Oregon |
8.1 |
7.3 |
|
Arizona |
6.6 |
7.7 |
|
Georgia |
5.7 |
6.7 |
|
New York |
4.9 |
4.8 |
|
Illinois |
3.4 |
3.1 |
|
Washington |
3.3 |
3.1 |
|
Ohio |
2.4 |
2.5 |
|
Other |
23.6 |
26.8 |
|
Total |
100.0% |
100.0% |
Collateral Concentration (% of UPB) |
March 31, 2025 |
December 31, 2024 |
|
Multi-family |
54.5% |
60.1% |
|
SBA |
16.2 |
14.6 |
|
Mixed Use |
9.7 |
9.5 |
|
Industrial |
4.8 |
4.8 |
|
Retail |
4.3 |
4.1 |
|
Land |
4.0 |
1.0 |
|
Office |
3.4 |
3.2 |
|
Other |
3.1 |
2.7 |
|
Total |
100.0% |
100.0% |
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 |
|||||
March 31, 2025 |
|||||||||||
General |
$17,690 |
$7,043 |
$2,274 |
$25,063 |
$2,146 |
$54,216 |
|||||
Specific |
13,359 |
2,187 |
146,289 |
4,972 |
709 |
167,516 |
|||||
PCD |
— |
— |
17,488 |
— |
— |
17,488 |
|||||
Ending balance |
$31,049 |
$9,230 |
$166,051 |
$30,035 |
$2,855 |
$239,220 |
|||||
December 31, 2024 |
|||||||||||
General |
$126,471 |
$3,156 |
$493 |
$18,825 |
$1,523 |
$150,468 |
|||||
Specific |
43,974 |
1,958 |
137,812 |
3,262 |
631 |
187,637 |
|||||
PCD |
— |
— |
1,834 |
— |
— |
1,834 |
|||||
Ending balance |
$170,445 |
$5,114 |
$140,139 |
$22,087 |
$2,154 |
$339,939 |
(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) |
Preliminary Purchase Price Allocation |
UPB |
$200,729 |
Allowance for credit losses |
(16,626) |
Non-credit discount |
(87,141) |
Purchase price of loans classified as PCD |
$96,962 |
(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 |
|||
Three Months Ended March 31, |
|||
(in thousands) |
2025 |
2024 |
|
SBA |
|||
Beginning net carrying amount |
$39,227 |
$29,536 |
|
Additions |
4,863 |
2,677 |
|
Amortization |
(1,634) |
(855) |
|
Recovery (impairment) |
833 |
(15) |
|
Ending net carrying amount |
$43,289 |
$31,343 |
|
Multi-family |
|||
Beginning net carrying amount |
67,996 |
73,301 |
|
Additions |
572 |
1,738 |
|
Amortization |
(3,009) |
(2,827) |
|
Ending net carrying amount |
$65,559 |
$72,212 |
|
USDA |
|||
Beginning net carrying amount |
16,465 |
— |
|
Additions |
689 |
— |
|
Amortization |
(687) |
— |
|
Recovery |
19 |
— |
|
Ending net carrying amount |
$16,486 |
$— |
|
Small business loans |
|||
Beginning net carrying amount |
4,752 |
— |
|
Additions |
544 |
— |
|
Amortization |
(789) |
— |
|
Impairment |
(27) |
— |
|
Ending net carrying amount |
$4,480 |
$— |
|
Total servicing rights |
$129,814 |
$103,555 |
|
As of March 31, 2025 |
As of December 31, 2024 |
||||||
(in thousands) |
UPB |
Carrying Value |
UPB |
Carrying Value |
|||
SBA |
$1,924,410 |
$43,289 |
$1,779,233 |
$39,227 |
|||
Multi-family |
6,222,795 |
65,559 |
6,160,486 |
67,996 |
|||
USDA |
559,538 |
16,486 |
599,362 |
16,465 |
|||
Small business loans |
471,896 |
4,480 |
494,609 |
4,752 |
|||
Total |
$9,178,639 |
$129,814 |
$9,033,690 |
$128,440 |
|||
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 |
|
SBA |
|||
Forward prepayment rate |
|||
Impact of 10% adverse change |
$(1,413) |
$(1,273) |
|
Impact of 20% adverse change |
$(2,746) |
$(2,473) |
|
Forward default rate |
|||
Impact of 10% adverse change |
$(230) |
$(192) |
|
Impact of 20% adverse change |
$(458) |
$(382) |
|
Discount rate |
|||
Impact of 10% adverse change |
$(1,380) |
$(1,349) |
|
Impact of 20% adverse change |
$(2,673) |
$(2,605) |
|
Servicing expense |
|||
Impact of 10% adverse change |
$(2,828) |
$(2,545) |
|
Impact of 20% adverse change |
$(5,656) |
$(5,091) |
|
Multi-family |
|||
Forward prepayment rate |
|||
Impact of 10% adverse change |
$(507) |
$(530) |
|
Impact of 20% adverse change |
$(997) |
$(1,041) |
|
Forward default rate |
|||
Impact of 10% adverse change |
$(14) |
$(14) |
|
Impact of 20% adverse change |
$(27) |
$(28) |
|
Discount rate |
|||
Impact of 10% adverse change |
$(2,006) |
$(2,132) |
|
Impact of 20% adverse change |
$(3,923) |
$(4,161) |
|
Servicing expense |
|||
Impact of 10% adverse change |
$(2,505) |
$(2,519) |
|
Impact of 20% adverse change |
$(5,010) |
$(5,037) |
|
USDA |
|||
Forward prepayment rate |
|||
Impact of 10% adverse change |
$(868) |
$(958) |
|
Impact of 20% adverse change |
$(1,656) |
$(1,829) |
|
Discount rate |
|||
Impact of 10% adverse change |
$(370) |
$(399) |
|
Impact of 20% adverse change |
$(724) |
$(782) |
|
Servicing expense |
|||
Impact of 10% adverse change |
$(626) |
$(681) |
|
Impact of 20% adverse change |
$(1,251) |
$(1,362) |
|
Small business loans |
|||
Discount rate |
|||
Impact of 10% adverse change |
$(28) |
$(28) |
|
Impact of 20% adverse change |
$(56) |
$(58) |
|
Servicing expense |
|||
Impact of 10% adverse change |
$(287) |
$(300) |
|
Impact of 20% adverse change |
$(574) |
$(600) |
(in thousands) |
March 31, 2025 |
2025 |
$17,857 |
2026 |
20,386 |
2027 |
17,122 |
2028 |
14,541 |
2029 |
12,620 |
Thereafter |
47,288 |
Total |
$129,814 |
(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 at |
|||||||||
Lenders (1) |
Asset Class |
Current Maturity (2) |
Pricing (3) |
Facility Size |
Carrying
Value
|
March 31, 2025 |
December 31, 2024 |
|||
3 |
SBA loans |
June 2025 - March 2026 |
SOFR + 2.83%
Prime - 0.82%
|
$260,000 |
$334,153 |
$257,131 |
$250,601 |
|||
1 |
LMM loans - USD |
February 2026 |
SOFR + 1.35% |
80,000 |
3,281 |
3,273 |
35,931 |
|||
1 |
LMM loans - Non-USD (4) |
January 2027 |
EURIBOR +
3.00%
|
54,081 |
34,395 |
27,753 |
30,513 |
|||
Total borrowings under credit facilities and other financing agreements |
$394,081 |
$371,829 |
$288,157 |
$317,045 |
||||||
8 |
LMM loans |
July 2025 - July 2027 |
SOFR + 2.91% |
3,866,411 |
3,102,177 |
2,209,018 |
1,482,085 |
|||
5 |
MBS |
April 2025 - July 2025 |
7.22% |
216,240 |
403,193 |
216,240 |
236,046 |
|||
Total borrowings under repurchase agreements |
$4,082,651 |
$3,505,370 |
$2,425,258 |
$1,718,131 |
||||||
Total secured borrowings |
$4,476,732 |
$3,877,199 |
$2,713,415 |
$2,035,176 |
||||||
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) |
March 31, 2025 |
2025 |
$102,426 |
2026 |
698,981 |
2027 |
100,000 |
2028 |
330,000 |
2029 |
245,250 |
Thereafter |
36,250 |
Total contractual amounts |
$1,512,907 |
Unamortized deferred financing costs, discounts, and premiums, net |
(24,241) |
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 |
2025 |
$127 |
2026 |
948 |
2027 |
4,682 |
2028 |
7,296 |
2029 |
9,526 |
Thereafter |
646,268 |
Total |
$668,847 |
(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% |
|||||
Carrying Amount |
Maximum Exposure to Loss (1) |
||||||
(in thousands) |
March 31, 2025 |
December 31, 2024 |
March 31, 2025 |
December 31, 2024 |
|||
MBS (2) |
$28,531 |
$28,233 |
$28,531 |
$28,233 |
|||
Investment in unconsolidated joint ventures |
170,920 |
161,561 |
170,920 |
161,561 |
|||
Total assets in unconsolidated VIEs |
$199,451 |
$189,794 |
$199,451 |
$189,794 |
|||
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 |
(in thousands) |
March 31, 2025 |
December 31, 2024 |
|
Acquired Portfolio: |
|||
Mixed use |
$13,150 |
$13,159 |
|
Multi-family |
30,700 |
18,000 |
|
Lodging |
12,965 |
16,461 |
|
Residential |
250 |
250 |
|
Office |
3,750 |
3,750 |
|
Land |
91,388 |
91,111 |
|
Total Acquired REO |
$152,203 |
$142,731 |
|
Other REO Held for Sale: |
|||
Office |
4,365 |
4,365 |
|
Mixed use |
12,211 |
15,210 |
|
Multi-family |
30,000 |
30,000 |
|
Other |
1,131 |
1,131 |
|
Total Other REO |
$47,707 |
$50,706 |
|
Total real estate owned, held for sale |
$199,910 |
$193,437 |
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 |
(in thousands) |
March 31, 2025 |
2025 |
$4,648 |
2026 |
5,567 |
2027 |
5,422 |
2028 |
4,396 |
2029 |
3,025 |
Thereafter |
10,226 |
Total |
$33,284 |
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 |
||
Preferential Cash Dividends |
Carrying Value
(in thousands)
|
||||||||||
Series |
Shares Issued and Outstanding
(in thousands)
|
Par Value |
Liquidation
Preference
|
Rate per Annum |
Annual Dividend
(per share)
|
March 31, 2025 |
|||||
C |
335 |
0.0001 |
$25.00 |
6.25% |
$1.56 |
$8,361 |
|||||
E |
4,600 |
0.0001 |
$25.00 |
6.50% |
$1.63 |
$111,378 |
|||||
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 |
|
Three Months Ended March 31, |
|||
(in thousands) |
2025 |
2024 |
|
Loan originations: |
|||
LMM loans |
$78,657 |
$259,676 |
|
SBL loans |
387,388 |
197,159 |
|
Total loan investment activity |
$466,045 |
$456,835 |
|
(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) |
||
Pledged Assets |
Carrying Value at |
|||||||||
Lenders (1) |
Asset Class |
Current Maturity (2) |
Pricing (3) |
Facility Size |
Carrying Value |
March 31, 2025 |
December 31, 2024 |
|||
3 |
SBA loans |
June 2025 - March 2026 |
SOFR + 2.83%
Prime - 0.82%
|
$260,000 |
$334,153 |
$257,131 |
$250,601 |
|||
1 |
LMM loans - USD |
February 2026 |
SOFR + 1.35% |
80,000 |
3,281 |
3,273 |
35,931 |
|||
1 |
LMM loans - Non-USD (4) |
January 2027 |
EURIBOR +
3.00%
|
54,081 |
34,395 |
27,753 |
30,513 |
|||
Total borrowings under credit facilities and other financing agreements |
$394,081 |
$371,829 |
$288,157 |
$317,045 |
||||||
Pledged Assets |
Carrying Value at |
|||||||||
Lenders (1) |
Asset Class |
Current Maturity (2) |
Pricing (3) |
Facility Size |
Carrying Value |
March 31, 2025 |
December 31, 2024 |
|||
8 |
LMM loans |
July 2025 - July 2027 |
SOFR + 2.91% |
$3,866,411 |
$3,102,177 |
$2,209,018 |
$1,482,085 |
|||
5 |
MBS |
April 2025 - July
2025
|
7.22% |
216,240 |
403,193 |
216,240 |
236,046 |
|||
Total borrowings under repurchase agreements |
$4,082,651 |
$3,505,370 |
$2,425,258 |
$1,718,131 |
||||||
(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 thousands) |
March 31, 2025 |
2025 |
$102,426 |
2026 |
698,981 |
2027 |
100,000 |
2028 |
330,000 |
2029 |
245,250 |
Thereafter |
36,250 |
Total contractual amounts |
$1,512,907 |
Unamortized deferred financing costs, discounts, and premiums, net |
(24,241) |
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 |
12-month pretax net interest income sensitivity profiles |
|||||||||||||||
Instantaneous change in rates |
|||||||||||||||
(in thousands) |
25 basis
point
increase
|
50 basis
point
increase
|
75 basis
point
increase
|
100 basis
point
increase
|
25 basis
point
decrease
|
50 basis
point
decrease
|
75 basis
point
decrease
|
100 basis
point
decrease
|
|||||||
Assets: |
|||||||||||||||
Loans |
$12,465 |
$25,176 |
$37,919 |
$50,674 |
$(12,352) |
$(24,105) |
$(35,433) |
$(46,580) |
|||||||
Interest rate swap hedges |
1,058 |
2,116 |
3,174 |
4,232 |
(1,058) |
(2,116) |
(3,174) |
(4,232) |
|||||||
Total |
$13,523 |
$27,292 |
$41,093 |
$54,906 |
$(13,410) |
$(26,221) |
$(38,607) |
$(50,812) |
|||||||
Liabilities: |
|||||||||||||||
Secured borrowings |
(6,235) |
(12,470) |
(18,704) |
(24,939) |
6,235 |
12,470 |
18,704 |
24,939 |
|||||||
Securitized debt obligations |
(5,010) |
(10,020) |
(15,030) |
(20,039) |
5,010 |
10,020 |
15,030 |
20,039 |
|||||||
Senior secured notes and corporate debt |
(379) |
(758) |
(1,136) |
(1,515) |
379 |
758 |
1,136 |
1,515 |
|||||||
Total |
$(11,624) |
$(23,248) |
$(34,870) |
$(46,493) |
$11,624 |
$23,248 |
$34,870 |
$46,493 |
|||||||
Total Net Impact to Net Interest Income
(Expense)
|
$1,899 |
$4,044 |
$6,223 |
$8,413 |
$(1,786) |
$(2,973) |
$(3,737) |
$(4,319) |
|||||||
March 31, 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 |
$608,301 |
16 |
29.8% |
|||
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 | |||||||||||