Toggle SGML Header (+)


Section 1: 8-K (8-K)

sld_8K_earnings-shell

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 8, 2018

 

 

 

SUTHERLAND ASSET MANAGEMENT CORPORATION
(Exact name of registrant as specified in its charter)

 

 

 

 

Maryland

001-35808

90-0729143

(State or other jurisdiction
of incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

  

 

 

1140 Avenue of the Americas, 7th Floor

New York, NY 10036

 

(Address of principal executive offices))
(Zip Code)

 

 

 

Registrant's telephone number, including area code: (212) 257-4600

 

n/a
(Former name or former address, if changed since last report.)

 

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

 

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 


 

 

 

 

 

Item 2.02.

Results of Operations and Financial Condition.

 

 

On May 8, 2018, the Company issued an earnings release announcing the financial results for the quarter ended March 31, 2018. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

 

On May 8, 2018,  Sutherland Asset Management Corporation (the “Company”) posted supplemental financial information on the Investor Relations section of its website (www.sutherlandam.com). A copy of the supplemental financial information is furnished as Exhibit 99.2 hereto and incorporated herein by reference.

 

The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, unless it is specifically incorporated by reference therein.

 

 

Item 9.01 Financial Statements and Exhibits.

 

 

 

 

 

 

(d)

Exhibits

 

 

1,

 

 

Exhibit No.

 

Description

 

 

99.1

 

 

Earnings Release, dated March 31, 2018

99.2

 

Supplemental Financial Information for the quarter ended March 31, 2018

 

  

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

SUTHERLAND ASSET MANAGEMENT CORPORATION

 

 

 

 

 

 

 

 

 

 

By:

/s/ Frederick C. Herbst

 

 

 

Name:  Frederick C. Herbst

 

 

 

Title:   Chief Financial Officer

 

Date: May 8,  2018

 

 


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

sld_Ex99_1

Picture 6

Exhibit 99.1

 

SUTHERLAND ASSET MANAGEMENT CORPORATION ANNOUNCES FIRST QUARTER 2018 RESULTS

-  First Quarter Net Income of $0.56 per share of common stock      -

-  First Quarter Core Earnings of $0.47 per share of common stock   -

-  Added $402.1 Million of SBC Loans During First Quarter 2018      -

-  Declared and Paid First Quarter Dividend of $0.37 Per Share      -

 

New York, New York, May 8, 2018 / PRNewswire / – Sutherland Asset Management Corporation (“Sutherland” or the “Company”) (NYSE: SLD) today reported financial results for the quarter ended March 31, 2018.      

First Quarter Highlights:

·

Net income of $18.5 million, or $0.56 per share of common stock

·

Core earnings of $15.5 million, or $0.47 per share of common stock

·

Adjusted net book value of $16.88 per share of common stock as of March 31, 2018

·

Originated $211.6 million of small balance commercial (“SBC”) loans

·

Originated $48.3 million of loans guaranteed by the U.S. Small Business Administration (the “SBA”) under its Section 7(a) loan program

·

Originated $439.0 million of residential mortgage loans

·

Acquired $142.2 million of SBC loans

Highlights Subsequent to Quarter End:

·

Issued $50.0 million in aggregate principal of 6.50% Senior Notes due 2021 

 

A summary of Sutherland’s operating results for the quarter ended March 31, 2018 is presented below. Sutherland reported U.S. GAAP net income for the three months ended March 31, 2018 of $18.5 million, or $0.56 per share of common stock, and Core Earnings (a non-GAAP financial measure) of $15.5 million, or $0.47 per share of common stock.

 

Thomas Capasse, Chairman and Chief Executive Officer commented, “We are pleased with our team’s ability to deploy capital by growing new loan originations and identifying accretive portfolio acquisition opportunities with the potential to generate outsized returns, which we benefitted from this quarter.  As a result, our quarterly per share earnings increased by $0.18 per share over the fourth quarter.  As we move further into 2018, we continue to be focused on growing our core origination platform while sourcing opportunistic acquisitions.”

 

The Company issued a full detailed presentation of its first quarter 2018 results, which can be viewed in the investor relations section at www.sutherlandam.com.

Use of Non-GAAP Financial Information

In addition to the results presented in accordance with U.S. GAAP, this press release includes Core Earnings which is a non-U.S. GAAP financial measure. The Company defines Core Earnings as net income adjusted for unrealized or realized gains (losses) related to certain mortgage backed securities, unrealized gains (losses) related to residential mortgage servicing rights, and one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains or merger related expenses.

The Company believes that providing investors with this non-U.S. GAAP financial information, in addition to the related U.S. GAAP measures, gives investors greater transparency into the information used by management in its financial and operational decision-making. However, because Core Earnings is an incomplete measure of the Company's financial performance and involves differences from net income computed in accordance with U.S. GAAP, it should be considered along with, but not as an alternative to, the Company's net income computed in accordance with U.S. GAAP as a measure of the Company's financial performance. In addition, because not all companies use identical calculations, the Company's presentation of Core Earnings may not be comparable to other similarly-titled measures of other companies.


 

The following table reconciles net income computed in accordance with U.S. GAAP to Core Earnings for the three months ended March 31, 2018:  

 

 

 

 

(In Thousands)

    

 

Three Months Ended March 31, 2018

Net Income

 

$

18,518

Reconciling items:

 

 

 

Unrealized loss on mortgage-backed securities

 

 

79

Unrealized (gain) on mortgage servicing rights

 

 

(4,155)

Total reconciling items

 

$

(4,076)

Core earnings before income taxes

 

$

14,442

     Income tax adjustments

 

 

1,047

Core earnings

 

$

15,489

Webcast and Earnings Conference Call

Management will host a webcast and conference call on Wednesday, May 9, 2018 at 8:30 am ET to provide a general business update and discuss the financial results for the quarter ended March 31, 2018.  The conference call can be accessed by dialing 888-289-0438 (domestic) or 323-794-2423 (international).

 

The conference call will also be available in the Investor Relations section of the Company’s website at www.sutherlandam.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.  A replay of the call will also be available on the Company’s website approximately two hours after the live call through May 23, 2018.  To access the replay, dial 844-512-2921 (domestic) or 412-317-6671 (international). The replay pin number is 5676498.

Safe Harbor Statement

This press release contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, applicable regulatory changes; general volatility of the capital markets; changes in the Company’s investment objectives and business strategy; the availability of financing on acceptable terms or at all; the availability, terms and deployment of capital; the availability of suitable investment opportunities; changes in the interest rates or the general economy; increased rates of default and/or decreased recovery rates on investments; changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of Company’s assets; the degree and nature of competition, including competition for the Company's target assets; and other factors, including those set forth in the Risk Factors section of the Company's most recent Annual Report on Form 10-K filed with the SEC, and other reports filed by the Company with the SEC, copies of which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

 

 

 

 

 

Contact

Investor Relations
Sutherland Asset Management Corporation
212-257-4666
SutherlandIR@waterfallam.com

 

Additional information can be found on the Company’s website at www.sutherlandam.com. 


 

SUTHERLAND ASSET MANAGEMENT CORPORATION

UNAUDITED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

(In Thousands)

    

March 31, 2018

    

December 31, 2017

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

86,773

 

$

63,425

Restricted cash

 

 

13,964

 

 

11,666

Loans, net (including $40,430 and $188,150 held at fair value)

 

 

1,057,034

 

 

1,017,920

Loans, held for sale, at fair value

 

 

160,999

 

 

216,022

Mortgage backed securities, at fair value

 

 

47,181

 

 

39,922

Loans eligible for repurchase from Ginnie Mae

 

 

81,484

 

 

95,158

Investment in unconsolidated joint venture

 

 

50,229

 

 

55,369

Derivative instruments

 

 

5,022

 

 

4,725

Servicing rights (including $81,591 and $72,295 held at fair value)

 

 

104,613

 

 

94,038

Receivable from third parties

 

 

11,064

 

 

6,756

Other assets

 

 

53,592

 

 

56,840

Assets of consolidated VIEs

 

 

968,999

 

 

861,662

Total Assets

 

$

2,640,954

 

$

2,523,503

Liabilities

 

 

 

 

 

 

Secured borrowings

 

 

657,233

 

 

631,286

Promissory note

 

 

5,883

 

 

6,107

Securitized debt obligations of consolidated VIEs, net

 

 

679,871

 

 

598,148

Convertible notes, net

 

 

109,226

 

 

108,991

Senior secured notes, net

 

 

178,688

 

 

138,078

Guaranteed loan financing

 

 

278,500

 

 

293,045

Contingent consideration

 

 

10,732

 

 

10,016

Liabilities for loans eligible for repurchase from Ginnie Mae

 

 

81,484

 

 

95,158

Derivative instruments

 

 

756

 

 

282

Dividends payable

 

 

12,335

 

 

12,289

Accounts payable and other accrued liabilities

 

 

64,490

 

 

74,636

Total Liabilities

 

$

2,079,198

 

$

1,968,036

Stockholders’ Equity

 

 

 

 

 

 

Common stock, $0.0001 par value, 500,000,000 shares authorized, 31,996,440 and 31,996,440 shares issued and outstanding, respectively

 

 

 3

 

 

 3

Additional paid-in capital

 

 

539,457

 

 

539,455

Retained earnings (deficit)

 

 

2,559

 

 

(3,385)

Total Sutherland Asset Management Corporation equity

 

 

542,019

 

 

536,073

Non-controlling interests

 

 

19,737

 

 

19,394

Total Stockholders’ Equity

 

$

561,756

 

$

555,467

Total Liabilities and Stockholders’ Equity

 

$

2,640,954

 

$

2,523,503

 


 

SUTHERLAND ASSET MANAGEMENT CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

(In Thousands, except share data)

    

2018

    

2017

Interest income

 

$

37,150

 

$

33,884

Interest expense

 

 

(22,666)

 

 

(16,441)

Net interest income before provision for loan losses

 

$

14,484

 

$

17,443

Provision for loan losses

 

 

(167)

 

 

(1,232)

Net interest income after provision for loan losses

 

$

14,317

 

$

16,211

Non-interest income

 

 

 

 

 

 

Gains on residential mortgage banking activities, net of variable loan expenses

 

 

11,734

 

 

10,509

Other income

 

 

1,334

 

 

840

Income on unconsolidated joint venture

 

 

5,739

 

 

 —

Servicing income, net of amortization and impairment of $1,350 and $2,765

 

 

6,410

 

 

4,442

Total non-interest income

 

$

25,217

 

$

15,791

Non-interest expense

 

 

 

 

 

 

Employee compensation and benefits

 

 

(15,320)

 

 

(13,464)

Allocated employee compensation and benefits from related party

 

 

(1,200)

 

 

(1,012)

Professional fees

 

 

(2,648)

 

 

(2,159)

Management fees – related party

 

 

(2,013)

 

 

(1,977)

Incentive fees – related party

 

 

(408)

 

 

 —

Loan servicing expense

 

 

(4,093)

 

 

(1,513)

Other operating expenses

 

 

(8,011)

 

 

(5,534)

Total non-interest expense

 

$

(33,693)

 

$

(25,659)

Net realized gain on financial instruments

 

 

12,232

 

 

2,966

Net unrealized gain on financial instruments

 

 

3,008

 

 

1,282

Income before provision for income taxes

 

$

21,081

 

$

10,591

Provision for income taxes

 

 

(2,563)

 

 

(1,034)

Net income

 

$

18,518

 

$

9,557

Less: Net income attributable to non-controlling interest

 

 

664

 

 

701

Net income attributable to Sutherland Asset Management Corporation

 

$

17,854

 

$

8,856

 

 

 

 

 

 

 

Earnings per common share - basic

 

$

0.56

 

$

0.29

Earnings per common share - diluted

 

$

0.56

 

$

0.29

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

 

 

 

 

 

Basic

 

 

32,036,504

 

 

30,549,806

Diluted

 

 

32,045,844

 

 

30,549,806

 

 

 

 

 

 

 

Dividends declared per share of common stock

 

$

0.37

 

$

0.37

 

 

 


 

 

SUTHERLAND ASSET MANAGEMENT CORPORATION

UNAUDITED SEGMENT REPORTING

fOR THE three MONTHS ENDED march 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

    

SBA Originations,

    

Residential

    

 

    

 

 

 

Loan

 

SBC

 

Acquisitions,

 

Mortgage

 

Corporate-

 

 

(In Thousands)

 

Acquisitions

 

Originations

 

and Servicing

 

Banking

 

Other

 

Consolidated

Interest income

 

$

9,688

 

$

17,858

 

$

8,715

 

$

889

 

$

 —

 

$

37,150

Interest expense

 

 

(5,831)

 

 

(12,470)

 

 

(3,620)

 

 

(745)

 

 

 —

 

 

(22,666)

Net interest income before provision for loan losses

 

$

3,857

 

$

5,388

 

$

5,095

 

$

144

 

$

 —

 

$

14,484

Provision for loan losses

 

 

(272)

 

 

36

 

 

69

 

 

 —

 

 

 —

 

 

(167)

Net interest income after provision for loan losses

 

$

3,585

 

$

5,424

 

$

5,164

 

$

144

 

$

 —

 

$

14,317

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on residential mortgage banking activities, net of variable loan expenses

 

$

 —

 

$

 —

 

$

 —

 

$

11,734

 

$

 —

 

$

11,734

Other income

 

 

156

 

 

1,259

 

 

(123)

 

 

42

 

 

 —

 

 

1,334

Income from unconsolidated joint venture

 

 

5,739

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

5,739

Servicing income

 

 

 5

 

 

252

 

 

1,252

 

 

4,901

 

 

 —

 

 

6,410

Total non-interest income

 

$

5,900

 

$

1,511

 

$

1,129

 

$

16,677

 

$

 —

 

$

25,217

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

(173)

 

 

(2,637)

 

 

(3,255)

 

 

(9,114)

 

 

(141)

 

 

(15,320)

Allocated employee compensation and benefits from related party

 

 

(120)

 

 

 —

 

 

 —

 

 

 —

 

 

(1,080)

 

 

(1,200)

Professional fees

 

 

(317)

 

 

(389)

 

 

(479)

 

 

(109)

 

 

(1,354)

 

 

(2,648)

Management fees – related party

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(2,013)

 

 

(2,013)

Incentive fees – related party

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(408)

 

 

(408)

Loan servicing expense

 

 

(808)

 

 

(631)

 

 

76

 

 

(2,730)

 

 

 —

 

 

(4,093)

Other operating expenses

 

 

(818)

 

 

(2,679)

 

 

(1,110)

 

 

(2,700)

 

 

(704)

 

 

(8,011)

Total non-interest expense

 

$

(2,236)

 

$

(6,336)

 

$

(4,768)

 

$

(14,653)

 

$

(5,700)

 

$

(33,693)

Net realized gain on financial instruments

 

 

148

 

 

8,699

 

 

3,385

 

 

 —

 

 

 —

 

 

12,232

Net unrealized gain (loss) on financial instruments

 

 

(46)

 

 

(2,367)

 

 

533

 

 

4,888

 

 

 —

 

 

3,008

Income before provision for income taxes

 

$

7,351

 

$

6,931

 

$

5,443

 

$

7,056

 

$

(5,700)

 

$

21,081

Total Assets

 

$

609,997

 

$

1,223,608

 

$

503,512

 

$

283,000

 

$

20,837

 

$

2,640,954

 

 


(Back To Top)

Section 3: EX-99.2 (EX-99.2)

sld_Ex99_2

Exhibit 99.2

 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_01.gif

Supplemental Financial Data First Quarter 2018

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_02.gif

This presentation contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; Sutherland Asset Management Corporation (the "Company") can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include those set forth in the Risk Factors section of the most recent Annual Report on Form 10-K filed with the SEC and other reports filed by the Company with the SEC, copies of which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. This presentation includes certain non-GAAP financial measures, including Core Earnings. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures in accordance with GAAP. Please refer to Appendix A for the most recent GAAP information. This presentation also contains market statistics and industry data which are subject to uncertainty and are not necessarily reflective of market conditions. These have been derived from third party sources and have not been independently verified by the Company or its affiliates. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. All data is as of March 31, 2018, unless otherwise noted. 1 DISCLAIMER

 

 


 

Doc1_sutherland asset management corporation - supplemental financial data 1q18v2_page_03.gif

   Net income of $18.5 million(1), or $0.56 per common share Core earnings of $15.5 million(1), or $0.47 per common share Declared dividend of $0.37 per share Q1 Return on Equity(2) of 13.1% Q1 Core Return on Equity(3) of 11.0% Q1 Dividend Yield(4) of 9.8%        SBC loan originations of $211.6 million SBA loan originations of $48.3 million Residential mortgage loan originations of $439.0 million Acquired $142.2 million of SBC loans Completed the securitization of $165.0 million SBC loans and sold $148.5 million of senior bonds at a weighted average pass-through rate of 3.8% Adjusted net book value(6) of $16.88 per common share as of March 31, 2018 Loans increased by 4.4% to $2.2 billion(7)   Income to Core Earnings Q1 Dividend yield for the period based on the 3/31/2018 closing share price of $15.15 Represents fully committed amounts Excludes the equity component of our 2017 convertible note issuance (4) (5) (6) (7) Represents carrying value of loans (8) Represents unpaid principal balance of loans Servicing portfolio increased by 5.1% to $7.9 billion(8) (1)Inclusive of non-controlling interest (2)Return on Equity is an annualized percentage equal to quarterly net income over the average monthly total stockholders’ equity for the period (3)Core Return on Equity is an annualized percentage equal to core earnings over the average monthly total stockholders’ equity for the period. Refer to slide 20 for a reconciliation of GAAP Net2 BALANCE SHEET LOAN ORIGINATIONS(5) / ACQUISITIONS RETURNS EARNINGS / DIVIDENDS FIRST QUARTER 2018 HIGHLIGHTS

 

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_04.gif

GAAP ROE (2) Core ROE (2) Core Levered Levered Equity Q4'17(4) Q4'17(4) Q1'18 Q1'18 Segment Yield (1) Allocation Yi eld (1) Loan Acquisitions SBC Originations SBA Originations, Acquisitions, & Servicing 56.1 % 20.1 % 56.1 % 20.1 % 13.9 % 40.6 % 30.4 % 30.4 % 26.0 % (3) 32.4 % 18.2 % 19.5 % Residential Mortgage Banking Corporate finance and non-earning assets, net Gross return on equity Realized & unrealized gains, net Other income and expenses, net Investment advisory fees Provision for income taxes Return on equity unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization of deferred financing costs on an annualized basis. (3) (4) ROE based on net income before tax of the Residential Mortgage Banking business line divided by the business line’s equity. Prior period updated to conform with current period presentation. (1) Levered yields include interest income, accretion of discount, MSR creation, income from our unconsolidated joint venture, realized gains (losses) on loans held for sale,3 (2) GAAP ROE is based on GAAP Net Income, while Core ROE is based on Core Earnings, which adjusts GAAP Net Income for the items in slide 20. (2.0) 16.5 % 4.3 (10.0) (1.5) (0.4) 8.9 % (5.7) 21.7 % 3.7 (10.9) (1.7) (1.8) 11.0 % (2.0) 16.5 % 4.3 (10.0) (1.5) (0.2) 9.1 % (6.4) 23.8 % 3.7 (10.9) (1.7) (1.8) 13.1 % 18.5 % 27.4 % 18.5 % 30.2 % RETURN ON EQUITY

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_05.gif

120 100 $87.2 80 $75.4 60 40 20 0 Q1'17 Q2'17 SBA Q3'17 Freddie Mac Q4'17 Q1'18 Conventional Transitional Fully committed ($ in millions) (1) (1) Origination volumes are based on fully committed amounts4 Highlights • Total SBC loan originations of $211.6 million for the quarter • SBA loan originations increased by $10.0 million, or 26%, for the quarter • Strong Q2 2018 origination pipeline $111.4$110.6 $105.2 $91.0 $78.0 $69.7 $39.5 $47.4 $46.7 $38.3 $48.3 $39.3 $38.9 $26.0 $28.5 $23.0 $29.7 SBC ORIGINATION VOLUME BY PRODUCT TYPE $126.9

 

 


 

Doc1_sutherland asset management corporation - supplemental financial data 1q18v2_page_06.gif

► Acquired $142.2 million of SBC loans, comprised of primarily performing loans. ► Funded $250.5 million(1) of SBC and SBA loan originations. HELD FOR SALE TOTAL HELD FOR INVESTMENT SBC TRANSITIONAL SBA(7) SBA(7) FREDDIE MAC + 285 (2) $ in millions (4) (5) (6) Gross yield equals contractual interest rates and accretion of discount based on the Company’s estimates of loan performance, where applicable Weighted average advance rate of all assets of this loan type currently financed on the Company’s facilities Weighted average debt cost of all assets of this loan type currently financed on the Company’s facilities Gross investments(2) Number of loans Average balance(3) Gross Yield(4) Weighted average duration(3) FX / ARM Avg. Advance Rate(5) Debt Cost(6) $142.2 $23.1 $68.0 $12.2 $36.6 $110.6 $250.5 179 7 18 66 66 45 136 $0.8 $3.3 $3.8 $0.2 $0.5 $2.5 $1.2 6.7% 5.8% 6.7% 6.5% 6.5% 4.3% 5.5% 6 years 10 years 3 years 19 years 19 years 14 years 11 years 81% / 19% 100% / 0% 0% / 100% 0% / 100% 0% / 100% 56% / 44% 29% / 71% 77% 60% 63% 55% 55% 100% 76% 3M Libor + 273 3M Libor + 254 3M Libor + 277 3M Libor + 350 3M Libor + 350 1M Libor + 175 1M / 3M Libor (1)Represents actual disbursements during the quarter.(7) SBA loan counts include the guaranteed and unguaranteed loan portion.5 (3)Based on fully funded loan amount LOANS ACQUISITIONS(2) ORIGINATIONS(2) Q1 2018 QUARTERLY SBC INVESTMENT ALLOCATION ► Total funded investments of $392.7 million added during the quarter.

 

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_07.gif

CURRENT QUARTER HIGHLIGHTS GROSS LEVERED YIELD ► Originations of $211.6 million(1), 60% of loans held-for-investment are floating rate 22.5% 20.5% 18.5% 16.5% 14.5% 12.5% 10.5% 8.5% 6.5% 4.5% 2.5% ► Gains on sales of Freddie Mac loans of $2.1 million (2) ► Origination pipeline of $477.9 million ► $223.0 million of Freddie Mac loans ► $163.1 million of transitional loans ► $91.8 million of conventional SBC loans Q1 '17 Q2 '17 Q3 '17 (5) Q4 '17 Q1 '18 (6) (3) $ in millions, as of quarter end. (5) (6) Includes interest income, accretion of discount, and servicing income net of interest expense and amortization of deferred financing costs. Includes realized and unrealized gains (losses) on loans held for sale and MSR creation. Gross Levered Yield (ex. Gains)Gains on Loans, held for sale (1) Represents fully committed amounts. (2) As of April 30, 2018, including April 2018 fundings.6 (4) Represents fixed rate loans that have been securitized. 4.2% 3.3% 4.5% 15.9% 13.8% 1.5% 1.7% 11.2% 11.2% 11.4% Portfolio Me trics (B alance Shee t) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Number of loans 297 326 368 365 357 (3) Unpaid Principal Balance $785 $971 $1,068 $1,094 $1,120 (3) Carrying Value $801 $989 $1,088 $1,108 $1,132 Weighted Average LTV 62% 63% 60% 61% 61% Weighted Average Coupon 6.1% 6.2% 6.3% 6.2% 6.4% Weighted Average Maturity 5 y ears 5 y ears 5 y ears 5 y ears 5 y ears (3) Weighted Average Principal Balance $2.6 $3.0 $2.9 $3.0 $3.1 Percentage of loans fixed / floating 73% / 27% 62% / 38% 64% / 36% 58% / 42% 56% / 44% (4) Percentage of fixed, match funded 76.8% 70.5% 60.2% 60.4% 82.2% Percentage of loans 30+ days delinquent 1.2% 0.9% 0.2% 1.4% 1.3% SBC ORIGINATIONS - SEGMENT SNAPSHOT

 

 


 

 

 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_08.gif

CURRENT QUARTER HIGHLIGHTS GROSS LEVERED YIELD 32.5% ► $33.6 million of SBA secondary market loans sales, with an average sale premium of 11.6% 27.5% ► Originations of $48.3 million(1) 22.5% 17.5% ► Origination pipeline in excess of $120 million SBA loans(2) and an acquisition pipeline of $16.0 million in SBA loans 12.5% 7.5% 2.5% Q1 '17 Q2 '17 Q3 '17 (4) Q4 '17 Q1 '18 (5) Gross Levered Yield (ex. Gains) Gains on Loans, held for sale (2) As of April 30, 2018, including April 2018 fundings. (4) (5) Includes interest income, accretion of discount, and servicing income net of interest expense and amortization of deferred financing costs. Includes realized and unrealized gains (losses) on loans held for sale and MSR creation. (1) Represents fully committed amounts.7 (3) $ in millions, as of quarter end. 8.8% 10.6% 3.2% 5.9% 25.6% 6.4% 21.9% 21.7% 19.8% 17.0% Portfolio Me trics (B alance Shee t) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Number of loans 2,398 2,280 2,194 2,106 2,062 (3) Unpaid Principal Balance $588 $549 $530 $508 $502 (3) Carrying Value $521 $486 $471 $455 $452 Weighted Average LTV 80% 78% 78% 78% 78% Weighted Average Coupon 5.4% 5.7% 5.9% 5.9% 6.2% Weighted Average Maturity 14 y ears 14 y ears 14 y ears 14 y ears 14 y ears (3) Weighted Average Principal Balance $0.2 $0.2 $0.2 $0.2 $0.2 Percentage of loans fixed / floating 1% / 99% 1% / 99% 1% / 99% 1% / 99% 1% / 99% Percentage of loans 30+ days delinquent 7.8% 5.9% 5.7% 6.9% 6.0% SBA ORIGINATIONS, ACQUISITIONS & SERVICING – SEGMENT SNAPSHOT

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_09.gif

CURRENT QUARTER HIGHLIGHTS GROSS LEVERED YIELD 65.0% ► At this stage of the credit cycle, ample inventory opportunistic performing SBC loans of 55.0% 45.0% ► Acquired $142.2 million of SBC loans 35.0% 25.0% ► Acquisition pipeline of $259.6 million SBC loans (4) 15.0% 5.0% Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Gross Levered Yield (ex. Gains) Income on joint venture investment (2) $ in millions, as of quarter end. (4) As of April 30, 2018, including April 2018 acquisitions. (1) Excludes joint venture investment.8 (3) Represents fixed rate loans that have been securitized. 36.9% 8.0% 19.0% 19.2% 14.3% 15.0% 14.5% Portfolio Me trics (1) (B alance Shee t) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Number of loans 885 882 766 858 976 (2) Unpaid Principal Balance $467 $411 $378 $417 $525 (2) Carrying Value $408 $368 $335 $376 $488 Weighted Average LTV 55% 53% 52% 49% 50% Weighted Average Coupon 6.0% 6.1% 6.3% 6.3% 6.5% Weighted Average Maturity 10 y ears 11 y ears 9 y ears 10 y ears 8 y ears (2) Weighted Average Principal Balance $0.5 $0.5 $0.5 $0.5 $0.5 Percentage of loans fixed / floating 46% / 54% 47% / 53% 46% / 54% 49% / 51% 58% / 42% (3) Percentage of fixed, match funded 14.9% 14.3% 55.1% 43.7% 27.0% Percentage of loans performing / non-performing 94% / 6% 95% / 5% 93% / 7% 96% / 4% 97% / 3% LOAN ACQUISITIONS – SEGMENT SNAPSHOT

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_10.gif

CURRENT QUARTER HIGHLIGHTS MSR SERVICING PORTFOLIO (UPB IN $BILLIONS) $7.0 $6.8 $6.6 $6.4 $6.2 $6.0 $5.8 $5.6 $5.4 $5.2 ► MSR portfolio of approximately $6.8 billion in UPB, up 4% compared to Q4 ► Fair market value of $81.6 million, up 13% compared to Q4 ► Originations of $438.9 million(2), down 4% compared to Q4 ► Loan sales of $475.5 million, up 11% compared to Q4 ► Origination pipeline of $224.1 million in commitments originate residential agency loans(2) to Q1' 17 Q2' 17 Q3' 17 Q4' 17 Q1'18 (2) Represents fully committed amounts Originations (1) $ in millions. Represents activity during the quarter.9 Fair Q1' 17 Q2' 17 Q3' 17 Q4' 17 Q1' 18 Value ($ mm) $ 64.6 $ 66.8 $ 68.8 $ 72.3 $ 81.6 $6.8 $6.6 $6.3 $6.1 $5.8 Portfolio Me trics (quarte rly activity) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Unpaid principal balance (1) $ 461.0 $560.0 $490.9 $458.7 $438.9 % of Originations Purchas ed 74.4% 80.1% 78.8% 71.9% 72.8% % of Originations Refinanced 25.6% 19.9% 21.2% 28.1% 27.2% Channel - % Corres pondent 43.2% 40.1% 37.7% 38.6% 41.0% Channel - % Retail 33.4% 35.9% 37.6% 41.1% 39.3% Channel - % Wholes ale 23.4% 24.0% 24.7% 20.3% 19.7% Unpaid principal balance (1) $ 481.7 $547.0 $503.9 $429.1 $475.5 les % of UPB - Fannie/ Freddie s ecuritizations 62.0% 62.7% 62.0% 60.6% 68.8% Sa % of UPB - Ginnie Mae s ecuritizations 25.5% 27.3% 26.4% 28.8% 20.4% % of UPB - Other inves tors 12.5% 10.0% 11.6% 10.6% 10.8% RESIDENTIAL MORTGAGE BANKING – SEGMENT SNAPSHOT

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_11.gif

Los s (1) Represents remaining collateral in the securitization10 Recent transactions: ► In March, priced a $165.0 million securitization of fixed-rate SBC loans, at 6 basis points tighter than AAA-rated large balance CMBS. ► $148.5 million of bonds issued, collateralized by $165.0 million of originated fixed-rate SBC loans. S ecuritization Date Original Collateral Balance Pool - Factor(1 ) Delinquency 30+ Delinquency 60+ Delinquency 90+ Cumulative Fixed Rat e $727,75 4 RCMT 2014 -1 Sept ember 2014 181,92 2 0.37 0.0% 0.0 % 0.0% 0.0% RCMT 2015 -2 November 2015 218,75 7 0.82 0.0% 0.0 % 0.0% 0.0% RCMT 2016 -3 November 2016 162,07 5 0.71 1.8% 0.0 % 0.0% 0.0% RCMT 2018 -4 March 2018 165,00 0 1.00 0.0% 0.0 % 0.0% 0.0% Float ing Rat e $243,79 7 RCMF 2017 -FL1 August 2017 243,79 7 0.69 0.0% 0.0 % 0.0% 0.0% Freddie Mac $809,87 2 FRESB 2016 -SB11 January 2016 109,96 5 0.74 0.0% 0.0 % 0.0% 0.0% FRESB 2016 -SB18 July 2 016 118,03 7 0.90 0.0% 0.0 % 0.0% 0.0% FRESB 2017 -SB33 June 2 017 219,85 2 0.96 0.0% 0.0 % 0.0% 0.0% FRESB 2018 -SB45 January 2018 362,01 8 1.00 0.0% 0.0 % 0.0% 0.0% SBA $189,49 2 RCLT 2015-1 June 2 015 189,49 2 0.49 4.2% 2.9 % 2.6% 0.7% Acquired - Non -performing $270,06 0 W VMT 2011 -SBC1 February 2011 130,71 0 0.02 7 6.9% 7.4 % 7.4% N/A SCML 2015-SBC4 August 2015 139,35 0 0.31 1 7.2% 13.8% 11.9% N/A Acquired - P erforming $252,48 6 W VMT 2011 -SBC2 March 2011 97,55 7 0.28 3.4% 3.4 % 2.9% 3.6% SCMT 2017-SBC6 August 2017 154,92 9 0.80 0.7% 0.2 % 0.0% 0.0% Total l oan s e cu ri ti z a ti on s $2,493,46 1 SBC AND SBA LOAN SECURITIZATION PERFORMANCE

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_12.gif

► 54% of our held-for-investment loan portfolio is floating rate ► 67% of our fixed rate loan portfolio is match funded ► a 100 basis point increase in LIBOR would increase annual pre-tax net interest income by approximately $0.07 per share(3) Annu al Net Interest Inco me Per Share (Pre-tax) $0.08 $0.07 $0.06 $0.05 $0.04 $0.03 $0.02 $0.01 $-25 basis point increase 50 basis p oint increase 75 basis p oint increase 100 basis p oint increase (2) Excludes loans held-for-sale, at fair value (1) As a percent of carrying value11 (3) Based on portfolio as of March 31, 2018 and assumes no future changes in the composition of the portfolio. PORTFOLIO - FIXED VS FLOATING INTEREST RATE SENSITIVITY INTEREST RATE RISK SENSITIVITY

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_13.gif

Other, 0.7% Subordinated Mortgage, 1.9% California, 13.8% Texas, 11.9% Florida, 11.6% New York, Other, 49.8% First Mortgage, 97.4% Georgia, 6.0% 6.9% Physicians Offices, 16.2% Other, 15.0% Industrial, 7.9% Day Care Services, 11.7% Lodging, 10.7% SBA, 23.1% Other, 48.9% Office, 14.9% Multi-Family, 21.4% (3) Retail, 17.7% Eating Places, 5.5% Veterinarians, 7.0% (2) Excludes loans held-for-sale, at fair value (3) Average carrying value of Retail exposure is $1.5 million as of March 31, 2018 and December 31, 2017 (1) As a percent of unpaid principal balance12 SBA COLLATERAL TYPE (1)(2) COLLATERAL TYPE (1)(2) LIEN POSITION (1)(2) GEOGRAPHIC LOCATION (1)(2) LOAN PORTFOLIO COMPOSITION AS OF MARCH 31, 2018

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_14.gif

Total Debt + Equity and an additional $50 million in April 2018: $154.9 $165.0 Funding Mix ► Since going public in Q4 2016, we continue to optimize our capital structure:  Issued $295 million in non-recourse debt through 3/31/18 -Convertible notes: 6 year notes, 7.0% coupon, $115 million -Senior secured notes: 5 year notes, 7.5% coupon -$75 million in February 2017; YTM of 7.5% -$65 million in June 2017; YTM of 6.75% -$40 million in January 2018, YTM of 6.5% -Senior notes: 3 year notes, 6.5% coupon, $50 million  Sponsored two securitizations in 2017 and one in Q1 2018 -$198.8 million of bonds issued, collateralized by $243.8 million of originated transitional loans -$139.4 million of bonds issued, collateralized by million of acquired SBC owner-occupied loans -$148.5 million of bonds issued, collateralized by million of originated fixed-rate SBC loans  Paid down recourse debt of approximately $300 million 13 CURRENT SOURCES OF FUNDING HISTORICAL CAPITAL STRUCTURE $1,964$1,923$2,012$2,038$2,193 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Common Equity Convertible senior notes Senior secured notes Credit facilities and repurchase agreements Securitized debt obligations 22% 21% 34% 29% 31% 43% 46% 31% 30% 26% 7% 7% 8% 7% 5% 5% 4% 5% 29% 28% 27% 28% 26% CAPITAL STRUCTURE

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_15.gif

HISTORICAL LEVERAGE 3.5 3 2.5 2 1.5 1 0.5 0 2.9x 2.7x 2.4x 2.0x 1.9x 1.7x 1.6x 1.6x 1.2x 1.1x Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 RecourseTotal 14 3/31/2018 Total de bt-to-e quity ratio (in millions) Secured borrowings (warehous e credit facilities and borrowings under repo trans actions ) $ 657.2 Promis s ory note 5.9 Securitized debt obligations 679.9 Senior s ecured note 178.7 Convertible note 109.2 Total Debt $ 1,630.9 Total Stockholders ' Equity $ 561.8 Total debt-to-equity ratio 2.90 Total re cours e de bt-to-e quity ratio Total Debt $ 1,630.9 Les s : Securitized debt obligations (679.9) Total recours e debt $ 951.0 Total Stockholders ' Equity $ 561.8 Total recours e debt-to-equity ratio 1.69 FINANCING AND LEVERAGE

 

 


 

Doc1_sutherland asset management corporation - supplemental financial data 1q18v2_page_16.gif

Facility S ize (1) Available Capacity (1) Bank Maturity Rate Description (1) $ in millions15 Borrowings unde r cre dit facilitie s JPMorgan June '18 3M L + 3.25 to 3.50% $ 250 $ 179 Borrowings are used to finance SBC and SBA loan acquisitions, and SBA loan originations. Keybank Feb '19 1M L + 1.75% 125 76 Borrowings are used to finance Freddie M ac SBC loan originations. GMFS Credit Facilities < 1 year 1M L + 2.13 to 2.50% 230 139 Borrowings are used to finance Residential Agency loan originations. Total borrowings unde r cre dit facilitie s $ 605 $ 394 Borrowings unde r re purchase agre e me nts Deutsche Bank Feb '20 3M L + 2.30 to 2.80% $ 275 $ 137 Borrowings are used to finance SBC loan originations and Transitional loan originations. JPMorgan Dec '20 3M L + 2.50 to 4.50% 200 152 Borrowings are used to finance SBC loan originations, Transitional loan originations, and SBC loan acquisitions. Citibank June '18 3M L + 2.50% 200 19 Borrowings are used to finance SBC loan originations and SBC loan acquisitions. Total borrowings unde r re purchase agre e me nts $ 675 $ 308 Total se cure d borrowings $ 1,280 $ 702 Senior Secured Notes Feb '22 7.5% $ 180 N/A Long term financing used primarily to finance newly originated and acquired SBC and SBA loans Convertible Notes Aug '23 7.0% 115 N/A Long term financing used primarily to finance newly originated and acquired SBC and SBA loans Total $ 1,575 $ 702 LOAN WAREHOUSE FACILITIES

 

 

 


 

Doc1_sutherland asset management corporation - supplemental financial data 1q18v2_page_17.gif

AVG. DEBT BALANCE LEVERED YIELD GROSS YIELD(2) DEBT COST(3) INVESTMENT TYPE CARRYING VALUE(1) unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization of deferred fi nancing costs on an annualized basis. (3) Sutherland finances the assets included in the Investment Type through securitizations, repurchase agreements, warehouse facilities and bank credit facilities. Interest expense is calculated based on interest expense and deferred financing amortization for the quarter ended 3/31/2018 on an annualized basis. (4) Excludes loans, held for sale, at fair value Book Equity Value Metrics (5) Excludes the equity component of our 2017 convertible note issuance Q1 2018 Earnings Data Metrics Management Corporation$17,854 Loan Portfolio Metrics (4) Servicing Portfolio Metrics (1) Average carrying value includes average quarterly carrying value of loan and servicing asset balances (2) Gross yields include interest income, accretion of discount, MSR creation, income from our unconsolidated joint venture, realized gains (losses) on loans h eld for sale, 16 Net income attributable to Sutherland Asset Earnings per share – Basic and diluted$0.56 Core Earnings per Common Share$0.47 Return on Equity per Common Share13.1% Core Return on Equity per Common Share11.0% Dividend yield9.8% SBA servicing rights - UPB$437,177 SBA servicing rights - carrying value$16,318 Freddie Mac servicing rights - UPB$676,928 Freddie Mac servicing rights - carrying value$6,704 Residential servicing rights - UPB$6,817,646 Residential servicing rights - carrying value$81,591 % Fixed vs Floating Rate45.8% / 54.2% % Originated vs Acquired56.8% / 43.2% Weighted Average LTV-SBC61% Weighted Average LTV-SBA78% Weighted Average LTV-Acquired50% Common Stockholders’ equity$542,019 Common Stockholders’ equity (adjusted)(5) $539,961 Total Common Shares outstanding31,996,440 Net Book value per Common Share$16.94 Adjusted Net Book value per Common Share$16.88 Loan Acquisitions$463,49212.5%$401,3835.8%56.1% SBC origination portfolio$1,166,2807.4%$985,0115.1%20.1% SBA Originations, Acquisitions & Servicing$470,31810.6%$354,1184.1%30.4% Total$2,100,0909.2%$1,740,5125.0%29.6% SUTHERLAND SNAPSHOT ($ AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) AVG.

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_18.gif

APPENDIX

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_19.gif

   Q1’18 earnings per share up $0.18, or 47%, compared to the previous quarter Adjusted net book value of $16.88 per common share as of March 31, 2018 17 $0.60 $0.50 $0.40 $0.30 $0.20 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Earnings Core earnings Dividends declared $0.56 $0.47 (1) $0.38 $0.38 $0.37 $0.37 $0.37 $0.37 $0.37 $0.37 $0.37 $0.34 $0.34 $0.33 $0.29 Per Share Trends PER SHARE FINANCIAL PERFORMANCE

 

 


 

Doc1_sutherland asset management corporation - supplemental financial data 1q18v2_page_20.gif

Cash and cash equivalent s $ 40,000 $ 63,931 $ 70,590 $ 63,425 $ 86,773 Short -t erm invest ment s 239,856 — 99,994 — — Loans, held for sale, at fair value 152,231 206,706 200,318 216,022 160,999 Loans eligible for repurchase from Ginnie Mae 117,229 105,244 101,408 95,158 81,484 Derivat ive inst rument s 4,351 4,187 4,131 4,725 5,022 Receivable from t hird part ies 111,221 106,562 6,756 6,756 11,064 Asset s of consolidat ed VIEs 631,765 597,277 944,894 861,662 968,999 Li abi l i ti e s P romissory not e, net 7,046 6,773 6,494 6,107 5,883 Convert ible not e, net — — 109,414 108,991 109,226 Guarant eed loan financing 361,916 332,812 313,388 293,045 278,500 Liabilit ies for loans eligible for repurchase from Ginnie Mae 117,229 105,244 101,408 95,158 81,484 Dividends payable 12,162 12,289 12,289 12,289 12,335 Total Li abi l i ti e s $ 1,977,662 $ 1,894,109 $ 1,948,090 $ 1,968,036 $ 2,079,198 Common st ock 3 4 3 3 3 Ret ained earnings (Deficit ) (2,648) (4,030) (3,952) (3,385) 2,559 Non-cont rolling int erest s 38,847 19,394 19,338 19,394 19,737 Total Li abi l i ti e s an d S tock h ol de rs ’ Equ i ty $ 2,527,522 $ 2,446,920 $ 2,503,143 $ 2,523,503 $ 2,640,954 (1) Certain balances have been reclassified to match current period presentation18 (2) Excludes the equity component of our 2017 convertible note issuance. Adju s te d B ook Val u e pe r S h are (2 ) $ 16.73 $ 16.67 $ 16.68 $ 16.69 $ 16.88 Total S tock h ol de rs ’ Equ i ty $ 549,860 $ 552,811 $ 555,053 $ 555,467 $ 561,756 T ot al Sut herland Asset Management Corporat ion equit y 511,013 533,417 535,715 536,073 542,019 Addit ional paid-in capit al 513,658 537,443 539,664 539,455 539,457 S tock h ol de rs ’ Equ i ty Account s payable and ot her accrued liabilit ies 63,130 53,768 54,579 74,636 64,490 Derivat ive inst rument s 619 931 358 282 756 Cont ingent considerat ion 8,841 8,939 9,037 10,016 10,732 Senior secured not e, net 73,390 138,311 138,074 138,078 178,688 Securit ized debt obligat ions of consolidat ed VIEs, net 434,055 397,911 680,282 598,148 679,871 Secured borrowings 899,274 837,131 522,767 631,286 657,233 Total As s e ts $ 2,527,522$ 2,446,920$ 2,503,143$ 2,523,503$ 2,640,954 Ot her asset s 60,938 39,452 35,356 56,840 53,592 Servicing right s 84,997 86,751 89,372 94,038 104,613 Invest ment in unconsolidat ed joint vent ure — — — 55,369 50,229 Mort gage backed securit ies, at fair value 31,365 43,877 41,371 39,922 47,181 Loans, net 1,033,7971,175,370892,896 1,017,9201,057,034 Rest rict ed cash 19,772 17,563 16,057 11,666 13,964 As s e ts BALANCE SHEET BY QUARTER (In Th ou s an ds ) 3/31/2017 (1 ) 6/30/2017 (1 ) 9/30/2017 12/31/2017 3/31/2018

 

 


 

 

 

Doc1_sutherland asset management corporation - supplemental financial data 1q18v2_page_21.gif

8  Int erest expense (16,441) (17,230) (19,908) (21,067) (22,666) P rovision for loan losses (1,232) (159) (466) (506) (167) Non -i n te re s t i n com e Ot her income 839 1,588 1,853 3,130 1,334 Servicing income, net of amort izat ion and impairment 4,442 5,631 6,134 6,787 6,410 Non -i n te re s t e xpe n s e Allocat ed employee compensat ion and benefit s from relat ed part y (1,012) (1,008) (990) (833) (1,200) Management fees – relat ed part y (1,977) (2,007) (2,034) (2,041) (2,013) Loan servicing expense (1,513) (2,611) (3,388) (2,811) (4,093) Total n on -i n te re s t e xpe n s e $ (25,659) $ (27,306) $ (29,725) $ (30,434) $ (33,693) Ne t u n re al i z e d gai n on fi n an ci al i n s tru m e n ts 1,282 974 2,678 2,066 3,008 P rovision for income t axes (1,034) (1,069) 340 (76) (2,563) Less: Net income at t ribut able t o non-cont rolling int erest 701 657 533 633 664 Earn i n gs pe r com m on s h are - bas i c $ 0.29 $ 0.34 $ 0.37 $ 0.38 $ 0.56 Weight ed-average shares out st anding - Basic 30,549,806 30,768,900 32,026,494 32,031,494 32,036,504 Di vi de n ds de cl are d pe r s h are of com m on s tock $ 0.37 $ 0.37 $ 0.37 $ 0.37 $ 0.37 (1) Certain balances have been reclassified to match current period presentation19 Weight ed-average shares out st anding - Dilut ed 30,549,806 30,769,332 32,028,980 32,034,610 32,045,844 Earn i n gs pe r com m on s h are - di l u te d $ 0.29 $ 0.34 $ 0.37 $ 0.38 $ 0.56 Ne t i n com e attri bu tabl e to S u th e rl an d As s e t Man age m e n t C orporati on $ 8,856 $ 10,496 $ 11,841 $ 12,097 $ 17,854 Ne t i n com e $ 9,557 $ 11,153 $ 12,374 $ 12,730 $ 18,518 Income before provision for income t axes (benefit ) $ 10,591 $ 12,222 $ 12,034 $ 12,806 $ 21,081 Ne t re al i z e d gai n on fi n an ci al i n s tru m e n ts 2,966 4,491 5,695 6,177 12,232 Ot her operat ing expenses (5,534) (6,206) (7,447) (7,752) (8,011) Incent ive fees – relat ed part y — — — (408) P rofessional fees (2,159) (2,023) (2,151) (2,588) (2,648) Employee compensat ion and benefit s (13,464) (13,451) (13,715) (14,409) (15,320) Total n on -i n te re s t i n com e $ 15,791 $ 18,204 $ 18,722 $ 20,435 $ 25,217 Income on unconsolidat ed joint vent ure — — — 1,048 5,739 Gains on resident ial mort gage banking act ivit ies, net of variable loan expenses $ 10,510 $ 10,985 $ 10,735 $ 9,470 $ 11,734 Ne t i n te re s t i n com e afte r provi s i on for l oan l os s e s $ 16,211 $ 15,859 $ 14,664 $ 14,562 $ 14,317 Ne t i n te re s t i n com e be fore provi s i on for l oan l os s e s $ 17,443 $ 16,018 $ 15,130 $ 15,068 $ 14,484 Int erest income $ 33,884 $ 33,248 $ 35,038 $ 36,135 $ 37,150 STATEMENT OF INCOME BY QUARTER (In Th ou s an ds , e xce pt s h are data) Q 1 2017 (1 ) Q 2 2017 (1 ) Q 3 2017 Q 4 2017 Q 1 201

 

 


 

New Microsoft Word Document_sutherland asset management corporation - supplemental financial data 1q18_page_22.gif

(In Th ou s ands ) Q 1 2017 Q 2 2017 Q 3 2017 Q 4 2017 Q 1 2018 Re con cilin g ite m s : Unrealized (gain) loss on mort gage servicing right s 1,120 1,671 1,728 47 (4,155) Rest rict ed st ock unit grant t o independent direct ors 290 — — — — C ore e arn i n gs be fore i n com e taxe s $ 11,082 $ 11,662 $ 13,908 $ 12,801 $ 14,442 C ore e arni ngs $ 10,860 $ 11,161 $ 12,871 $ 12,442 $ 15,489 C ore e arni ngs attri butabl e to C ommon Stockhol de rs $ 10,063 $ 10,503 $ 12,317 $ 11,824 $ 14,934 W e i gh te d ave rage com m on s h are s ou ts tan di n g 30,549,806 30,768,900 32,026,494 32,031,494 32,036,504 20 C ore e arni ngs pe r s h are $ 0.33 $ 0.34 $ 0.38 $ 0.37 $ 0.47 Less: Core earnings at t ribut able t o non-cont rolling int erest s $ 797 $ 657 $ 554 $ 619 $ 555 Income t ax adjust ment s (222) (501) (1,037) (359) 1,047 T ot al reconciling it ems $ 1,525 $ 509 $ 1,534 $ 71 $ (4,076) Merger t ransact ion cost s 70 — — — — Unrealized (gain) loss on mort gage-backed securit ies $ 45 $ (1,162) $ (194) $ 24 $ 79 Ne t In com e $ 9,557 $ 11,153 $ 12,374 $ 12,730 $ 18,518 CORE EARNINGS RECONCILIATION

 


(Back To Top)