Toggle SGML Header (+)


Section 1: 8-K (8-K)

rc_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, 2019

 

 

 

READY CAPITAL 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. 

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.0001 par value per share

7.00% Convertible Senior Notes due 2023

6.50% Senior Notes due 2021

RC

RCA

RCP

New York Stock Exchange

New York Stock Exchange

New York Stock Exchange


 

 

 

 

 

Item 2.02.

Results of Operations and Financial Condition.

 

 

On May 8, 2019, the Company issued an earnings release announcing the financial results for the quarter ended March 31, 2019. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

 

On May 8,  2019,  Ready Capital Corporation (the “Company”) posted supplemental financial information on the Investor Relations section of its website (www.readycapital.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 May 8, 2019

99.2

 

Supplemental Financial Information for the quarter ended March 31, 2019

 

  

 


 

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.

 

 

 

 

 

 

READY CAPITAL CORPORATION

 

 

 

 

 

 

 

 

 

 

By:

/s/ Frederick C. Herbst

 

 

 

Name:  Frederick C. Herbst

 

 

 

Title:   Chief Financial Officer

 

 

Date: May 8,  2019

 

 


(Back To Top)

Section 2: EX-99.1 (EX-99.1)

rc_Ex99_1

 

Exhibit 99.1

 

READY CAPITAL CORPORATION ANNOUNCES FIRST QUARTER 2019 RESULTS

-  Net Income of $0.90 per share of common stock in the first quarter   -

-  Core Earnings of $0.34 per share of common stock in the first quarter   -

-  Originated and acquired $465 million of Small Balance Commercial (SBC) loans in first quarter 2019   -

 

New York, New York, May 8, 2019 / PRNewswire / – Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services small- to medium-sized balance commercial loans, today reported financial results for the quarter ended March 31, 2019.  A summary of Ready Capital’s operating results for the quarter ended March 31, 2019 is presented below. Ready Capital reported U.S. GAAP Net Income for the three months ended March 31, 2019 of $30.5 million, or $0.90 per share of common stock, and Core Earnings (a non-GAAP financial measure) of $11.3 million, or $0.34 per share of common stock.

   First Quarter Highlights:

·

U.S. GAAP Net Income of $30.5 million, or $0.90 per diluted share of common stock

·

Core Earnings of $11.3 million, or $0.34 per diluted share of common stock

·

Adjusted net book value of $16.65 per share of common stock as of March 31, 2019

·

Originated $292.0 million and acquired $128.7 million of small balance commercial (“SBC”) loans

·

Originated $44.1 million of loans guaranteed by the U.S. Small Business Administration (the “SBA”) under its Section 7(a) loan program

·

Originated $344.4 million of residential mortgage loans

·

Declared and paid dividend of $0.40 per share

·

Completed the merger with Owens Realty Mortgage, Inc., increasing the capital base to approximately $760 million 

·

Subsequent to quarter end, completed the securitization of $320.8 million of transitional loans and issued $267.9 million of senior bonds at a weighted average pass-through rate of LIBOR plus 1.33%

 

“We are proud to have completed our transformational merger with Owens Realty.  This combination creates a company with greater scale and additional capital that is well positioned to continue to execute our strategic vision of building a full-service platform with scale,” commented Ready Capital’s Chairman and chief executive officer Thomas Capasse. “With the market volatility we experienced at year end followed immediately by an unprecedented government shutdown that closed the SBA for an extended period of time, we are even more convinced our long-term strategic objectives will yield strong and growing cash flow over-time.  As we look ahead we remain focused on the accretive expansion of our platform to drive loan growth that ultimately enhances earnings and increases shareholder value.”

 

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 gains and losses related to certain mortgage backed securities, realized gains and losses on sales of certain MBS, unrealized gains and 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.

In calculating Core Earnings, Net Income (in accordance with GAAP) is adjusted to exclude unrealized gains and losses on MBS acquired by the Company in the secondary market, but is not adjusted to exclude unrealized gains and losses on MBS retained by Ready Capital as part of its loan origination businesses, where the Company transfers originated loans into an MBS securitization and the Company retains an interest in the securitization. In calculating Core Earnings, the Company does not adjust Net Income (in accordance


 

with GAAP) to take into account unrealized gains and losses on MBS retained by us as part of the loan origination businesses because the unrealized gains and losses that are generated in the loan origination and securitization process are considered to be a fundamental part of this business and an indicator of the ongoing performance and credit quality of the Company’s historical loan originations. In calculating Core Earnings, Net Income (in accordance with GAAP) is adjusted to exclude realized gains and losses on certain MBS securities considered to be non-core.  Certain MBS positions are considered to be non-core due to a variety of reasons which may include collateral type, duration, and size.

In addition, in calculating Core Earnings, Net Income (in accordance with GAAP) is adjusted to exclude unrealized gains or losses on residential MSRs, held at fair value.  The Company treats its commercial MSRs and residential MSRs as two separate classes based on the nature of the underlying mortgages and the treatment of these assets as two separate pools for risk management purposes.  Servicing rights relating to the Company’s small business commercial business are accounted for under ASC 860, Transfer and Servicing, while the Company’s residential MSRs are accounted for under the fair value option under ASC 825, Financial Instruments.  In calculating Core Earnings, the Company does not exclude realized gains or losses on either commercial MSRs or Residential MSRs, held at fair value, as servicing income is a fundamental part of Ready Capital’s business and as an indicator of the ongoing performance.

The following table reconciles net income computed in accordance with U.S. GAAP to Core Earnings for the three months ended March 31, 2019:  

 

 

 

 

 

Three Months Ended

(In Thousands)

 

March 31, 2019

Net Income

$

30,450

Reconciling items:

 

 

Unrealized loss on mortgage-backed securities

 

14

Unrealized loss on mortgage servicing rights

 

7,128

Gain on bargain purchase

 

(30,728)

Merger transaction costs

 

5,467

Non-recurring expenses

 

726

Total reconciling items

$

(17,393)

Core earnings before income taxes

$

13,057

     Income tax adjustments

 

(1,782)

Core earnings

$

11,275

U.S. GAAP Return on Equity is based on U.S. GAAP Net Income, while Core Return on Equity is based on Core Earnings, which adjusts GAAP Net Income for the items in the Core reconciliation above.

Webcast and Earnings Conference Call

Management will host a webcast and conference call on Thursday,  May 9, 2019 at 8:30 am ET to provide a general business update and discuss the financial results for the quarter ended March 31, 2019. A webcast will be available on the Company’s website at www.readycapital.com. To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register and download and install any necessary audio software.

 

To Participate in the Telephone Conference Call:

 

Dial in at least five minutes prior to start time.

 

Domestic: 1-877-407-0792

International: 1-201-689-8263

Conference ID #: 13689763

 

Conference Call Playback:

 

Domestic: 1-844-512-2921

International: 1-412-317-6671

Replay Pin #: 13689763

 

The playback can be accessed through May 23, 2019.

 

 

 


 

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.

 

 

About Ready Capital Corporation

Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services small- to medium-sized balance commercial loans. Ready Capital specializes in loans backed by commercial real estate, including agency multifamily, investor and bridge as well as SBA 7(a) business loans. Headquartered in New York, New York, Ready Capital employs over 400 lending professionals nationwide. The company is externally managed and advised by Waterfall Asset Management, LLC.

 

 

Contact

Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com

 

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

 

 


 

READY CAPITAL CORPORATION

UNAUDITED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

(In Thousands)

    

March 31, 2019

    

December 31, 2018

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

47,597

 

$

54,406

Restricted cash

 

 

29,979

 

 

28,921

Loans, net (including $22,595 and $22,664 held at fair value)

 

 

1,057,023

 

 

1,193,392

Loans, held for sale, at fair value

 

 

115,778

 

 

115,258

Mortgage backed securities, at fair value

 

 

91,435

 

 

91,937

Loans eligible for repurchase from Ginnie Mae

 

 

73,057

 

 

74,180

Investment in unconsolidated joint ventures

 

 

39,025

 

 

33,438

Derivative instruments

 

 

2,483

 

 

2,070

Servicing rights (including $88,218 and $93,065 held at fair value)

 

 

115,652

 

 

120,062

Receivable from third parties

 

 

718

 

 

8,888

Real estate acquired in settlement of loans, held for sale

 

 

75,517

 

 

7,787

Other assets

 

 

68,886

 

 

55,447

Assets of consolidated VIEs

 

 

1,561,864

 

 

1,251,057

Total Assets

 

$

3,279,014

 

$

3,036,843

Liabilities

 

 

 

 

 

 

Secured borrowings

 

 

848,225

 

 

834,547

Securitized debt obligations of consolidated VIEs, net

 

 

1,140,919

 

 

905,367

Convertible notes, net

 

 

110,241

 

 

109,979

Senior secured notes, net

 

 

178,979

 

 

178,870

Corporate debt, net

 

 

48,629

 

 

48,457

Guaranteed loan financing

 

 

34,047

 

 

229,678

Liabilities for loans eligible for repurchase from Ginnie Mae

 

 

73,057

 

 

74,180

Derivative instruments

 

 

3,392

 

 

3,625

Dividends payable

 

 

13,396

 

 

13,346

Accounts payable and other accrued liabilities

 

 

67,240

 

 

74,719

Total Liabilities

 

$

2,518,125

 

$

2,472,768

Stockholders’ Equity

 

 

 

 

 

 

Common stock, $0.0001 par value, 500,000,000 shares authorized, 44,395,713 and 32,105,112 shares issued and outstanding, respectively

 

 

 4

 

 

 3

Additional paid-in capital

 

 

720,680

 

 

540,478

Retained earnings

 

 

21,790

 

 

5,272

Accumulated other comprehensive loss

 

 

(1,328)

 

 

(922)

Total Ready Capital Corporation equity

 

 

741,146

 

 

544,831

Non-controlling interests

 

 

19,743

 

 

19,244

Total Stockholders’ Equity

 

$

760,889

 

$

564,075

Total Liabilities and Stockholders’ Equity

 

$

3,279,014

 

$

3,036,843

 


 

READY CAPITAL CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

(In Thousands, except share data)

    

2019

    

2018

Interest income

 

$

48,753

 

$

37,150

Interest expense

 

 

(35,775)

 

 

(22,666)

Net interest income before provision for loan losses

 

$

12,978

 

$

14,484

Provision for loan losses

 

 

(518)

 

 

(167)

Net interest income after provision for loan losses

 

$

12,460

 

$

14,317

Non-interest income

 

 

 

 

 

 

Residential mortgage banking activities

 

 

14,587

 

 

14,024

Net realized gain on financial instruments and real estate owned

 

 

7,282

 

 

12,232

Net unrealized gain (loss) on financial instruments

 

 

(6,912)

 

 

3,008

Other income

 

 

900

 

 

1,334

Servicing income, net of amortization and impairment of $1,763 and $1,350

 

 

6,752

 

 

6,410

Income on unconsolidated joint ventures

 

 

2,929

 

 

5,739

Gain on bargain purchase

 

 

30,728

 

 

 —

Total non-interest income

 

$

56,266

 

$

42,747

Non-interest expense

 

 

 

 

 

 

Employee compensation and benefits

 

 

(11,448)

 

 

(15,320)

Allocated employee compensation and benefits from related party

 

 

(853)

 

 

(1,200)

Variable expenses on residential mortgage banking activities

 

 

(9,176)

 

 

(2,290)

Professional fees

 

 

(1,829)

 

 

(2,648)

Management fees – related party

 

 

(1,997)

 

 

(2,013)

Incentive fees – related party

 

 

 —

 

 

(408)

Loan servicing expense

 

 

(3,648)

 

 

(4,093)

Merger related expenses

 

 

(5,467)

 

 

 —

Other operating expenses

 

 

(6,861)

 

 

(8,011)

Total non-interest expense

 

$

(41,279)

 

$

(35,983)

Income before provision for income taxes

 

$

27,447

 

$

21,081

Provision for income (taxes) benefit

 

 

3,003

 

 

(2,563)

Net income

 

$

30,450

 

$

18,518

Less: Net income attributable to non-controlling interest

 

 

983

 

 

664

Net income attributable to Ready Capital Corporation

 

$

29,467

 

$

17,854

 

 

 

 

 

 

 

Earnings per common share - basic

 

$

0.90

 

$

0.56

Earnings per common share - diluted

 

$

0.90

 

$

0.56

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

 

 

 

 

 

Basic

 

 

32,556,875

 

 

32,036,504

Diluted

 

 

32,563,644

 

 

32,045,844

 

 

 

 

 

 

 

Dividends declared per share of common stock

 

$

0.40

 

$

0.37

 


 

 

READY CAPITAL CORPORATION

 UNAUDITED SEGMENT REPORTING

fOR THE three MONTHS ENDED March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

    

SBA Originations,

    

Residential

    

 

    

 

 

 

Loan

 

SBC

 

Acquisitions,

 

Mortgage

 

Corporate-

 

 

(In Thousands)

 

Acquisitions

 

Originations

 

and Servicing

 

Banking

 

Other

 

Consolidated

Interest income

 

$

10,674

 

$

28,188

 

$

9,109

 

$

782

 

$

 —

 

$

48,753

Interest expense

 

 

(7,705)

 

 

(20,666)

 

 

(6,490)

 

 

(914)

 

 

 —

 

 

(35,775)

Net interest income before provision for loan losses

 

$

2,969

 

$

7,522

 

$

2,619

 

$

(132)

 

$

 —

 

$

12,978

Provision for loan losses

 

 

(133)

 

 

41

 

 

(426)

 

 

 —

 

 

 —

 

 

(518)

Net interest income after provision for loan losses

 

$

2,836

 

$

7,563

 

$

2,193

 

$

(132)

 

$

 —

 

$

12,460

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage banking activities

 

$

 —

 

$

 —

 

$

 —

 

$

14,587

 

$

 —

 

$

14,587

Net realized gain on financial instruments

 

 

(49)

 

 

3,540

 

 

3,791

 

 

 —

 

 

 —

 

 

7,282

Net unrealized gain on financial instruments

 

 

(19)

 

 

810

 

 

(575)

 

 

(7,128)

 

 

 —

 

 

(6,912)

Other income

 

 

68

 

 

786

 

 

14

 

 

17

 

 

15

 

 

900

Servicing income

 

 

 1

 

 

436

 

 

1,015

 

 

5,300

 

 

 —

 

 

6,752

Income from unconsolidated joint venture

 

 

2,929

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

2,929

Gain on bargain purchase

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

30,728

 

 

30,728

Total non-interest income

 

$

2,930

 

$

5,572

 

$

4,245

 

$

12,776

 

$

30,743

 

$

56,266

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

(1)

 

 

(2,260)

 

 

(3,768)

 

 

(4,595)

 

 

(824)

 

 

(11,448)

Allocated employee compensation and benefits from related party

 

 

(85)

 

 

 —

 

 

 —

 

 

 —

 

 

(768)

 

 

(853)

Variable expenses on residential mortgage banking activities

 

 

 —

 

 

 —

 

 

 —

 

 

(9,176)

 

 

 —

 

 

(9,176)

Professional fees

 

 

(170)

 

 

(301)

 

 

(187)

 

 

(236)

 

 

(935)

 

 

(1,829)

Management fees – related party

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(1,997)

 

 

(1,997)

Loan servicing expense

 

 

(801)

 

 

(1,215)

 

 

143

 

 

(1,740)

 

 

(35)

 

 

(3,648)

Merger related expenses

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(5,467)

 

 

(5,467)

Other operating expenses

 

 

(421)

 

 

(2,117)

 

 

(1,050)

 

 

(2,073)

 

 

(1,200)

 

 

(6,861)

Total non-interest expense

 

$

(1,478)

 

$

(5,893)

 

$

(4,862)

 

$

(17,820)

 

$

(11,226)

 

$

(41,279)

Net income (loss) before provision for income taxes

 

$

4,288

 

$

7,242

 

$

1,576

 

$

(5,176)

 

$

19,517

 

$

27,447

Total assets

 

$

864,881

 

$

1,823,166

 

$

251,778

 

$

277,727

 

$

61,462

 

$

3,279,014

 

 


(Back To Top)

Section 3: EX-99.2 (EX-99.2)

Exhibit 99.2

GRAPHIC

Supplemental Financial Data First Quarter 2019


GRAPHIC

DISCLAIMER 2 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; Ready Capital 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, 2019 unless otherwise noted.


GRAPHIC

FIRST QUARTER 2019 HIGHLIGHTS 3 ▪ Net income of $30.5 million(1), or $0.90 per common share ▪ Core earnings of $11.3 million(1), or $0.34 per common share ▪ Declared dividend of $0.40 per share EARNINGS / DIVIDENDS ▪ Return on Equity(2) of 21.6% ▪ Core Return on Equity(3) of 8.0% ▪ Dividend Yield(4) of 10.9% RETURNS ▪ Total SBC loan investment of $464.8 million ▪ SBC loan originations of $292.0 million and $128.7 million of loan acquisitions ▪ SBA loan originations of $44.1 million ▪ Residential mortgage loan originations of $344.4 million LOANORIGINATIONS(5) / ACQUISITIONS ▪ Completed the securitization of $399.2 million of fixed-rate SBC loans and issued $355.8 million of senior bonds at a weighted average pass-through rate of 4.1% ▪ Adjusted net book value(6) of $16.65 per common share ▪ Loans increased by 5.8% to $2.7 billion(7) BALANCE SHEET (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 the “Core Earnings Reconciliation” slide for a reconciliation of GAAP Net Income to Core Earnings (4) Q1 Dividend yield for the period based on the 3/31/2019 closing share price of $14.67 (5) Represents fully committed amounts (6) Excludes the equity component of our 2017 convertible note issuance (7) Represents carrying value of loans


GRAPHIC

MERGER WITH OWENS REALTY MORTGAGE, INC. TRANSACTION HIGHLIGHTS • Completed previously announced merger on March 29, 2019 • Increases total equity by 38% to approximately $760 million • Larger market capitalization may benefit the company as smaller commercial mortgage REITs trade at a price/book discount to larger commercial mortgage REITs • Additional 12.2 million shares increased equity float by over 50% • Additional capital and portfolio turnover expected to generate $650 million in investment capacity • Enhanced scale, liquidity and larger capital base will improve operating efficiencies and metrics $556.3 $472.0 $760.9 $651.3 $- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 Total Equity Implied Market Cap Capital Base - Pre vs Post Merger Pre Merger Post Merger IMPACT ON TOTAL EQUITY SUMMARY OF NET ASSET ALLOCATION 7.6% 62.0% 30.4% Net Assets Acquired Cash & Other Loans REO 4


GRAPHIC

RETURN ON EQUITY 5 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, 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. 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 the “Core Earnings Reconciliation” slide. 3) ROE based on net income before tax of the Residential Mortgage Banking business line divided by the business line’s equity. 4) Excludes the effects of the ORM merger on the Company’s equity. Segment Loan Acquisitions 22.2 % 22.2 % 17.7 % SBC Originations 11.2 % 11.2 % 56.8 % SBA Originations, Acquisitions, & Servicing 26.1 % 26.1 % 14.6 % Residential Mortgage Banking (3) (24.2) % 9.1 % 10.9 % 2.7 4.3 5.5 4.9 (3.0) (2.5) (4.3) (2.7) 11.2 % 16.1 % 16.3 % 17.2 % 3.8 (2.1) 3.8 (1.9) (10.2) (7.6) (10.2) (7.6) 16.1 - (1.4) - (1.4) (1.7) (1.4) (1.7) 2.1 2.1 0.9 2.1 21.6 % 6.8 % 8.0 % 8.1 %Return on equity(4) Realized & unrealized gains, net Other income and expenses, net Investment advisory fees Provision for income taxes Unallocated corporate finance and non-earning assets, net Gross return on equity Corporate leverage Non-recurring gains and expenses 11.5 % 14.3 % 15.1 % 15.0 % GAAP ROE (2) Core ROE (2) Levered Yield (1) Core Levered Yield (1) Equity Allocation Q1'19 Q4'18 Q1'19 Q4'18


GRAPHIC

SBC INVESTMENT BY PRODUCT TYPE(1) 6 (1) Origination volumes are based on fully committed amounts $48.3 $48.3 $51.1 $65.4 $44.1 $23.0 $69.4 $125.4 $95.7 $86.3 $110.6 $160.3 $70.3 $70.3 $62.9 $78.0 $122.6 $95.5 $166.9 $142.8 $142.4 $142.8 $86.4 $8.8 $128.7 0 20 40 60 80 100 120 140 160 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 SBA Conventional Freddie Mac Transitional Acquired


GRAPHIC

Q1 2019 QUARTERLY SBC LOAN INVESTMENT ALLOCATION 7 • Total funded investments of $450.5 million added during the quarter. • Funded $321.8 million(1) of SBC and SBA loan originations. • Acquired $128.7 million of SBC loans • Excludes acquired loans from ORM (1) Represents actual disbursements during the quarter. (2) $ in millions (3) Based on fully funded loan amount (4) Gross yield equals contractual interest rates and accretion of discount based on the Company’s estimates of loan performance, where applicable (5) Weighted average advance rate of all assets of this loan type currently financed on the Company’s facilities (6) Weighted average debt cost of all assets of this loan type currently financed on the Company’s facilities (7) SBA loan counts include the guaranteed and unguaranteed loan portion. (in millions, except loan count information) # of Loans Gross Yield(4) Weighted Avg Maturity(3) FX / ARM Avg Advance Rate(5) Debt Cost (6) Loan Originations Held-for-investment SBC $ 85.2 25 $ 3.4 5.4% 8 years 100% / 0% 66% 1M Libor +241 Transitional 149.7 84 1.8 5.9% 3 years 0% / 100% 69% 1M Libor + 238 SBA(7) 8.2 26 0.2 7.5% 23 years 0% / 100% 74% 1M Libor + 250 Prime + 29 Held-for-sale SBA(7) $ 24.7 26 $ 0.5 7.5% 23 years 0% / 100% 74% 1M Libor + 250 Prime + 29 Freddie Mac 54 21 2.6 5.1% 15 years 45% / 55% 100% 1M Libor + 175 Total Loan Originations $ 321.8 182 $ 1.8 5.8% 8 years 34% / 66% 74% Loan Acquisitions SBC $ 128.7 124 $ 1.1 5.7% 13 years 36% / 64% 75% SBC: 1M Libor + 250 Total Loan Acquisitions $ 128.7 124 $ 1.1 5.7% 13 years 36% / 64% 75% Total SBC Investment (Originations + Acquisitions) $ 450.5 306 $ 1.5 6.3% 10 years 39% / 61% 72% Avg Balance Gross Investments(2)


GRAPHIC

SBC ORIGINATIONS -SEGMENT SNAPSHOT 8 1) Represents fully committed amounts. 2) As of April 30, 2019 including April 2019 fundings. 3) $ in millions, as of quarter end. 4) Represents fixed rate loans that have been securitized. 5) Includes interest income, accretion of discount, and servicing income net of interest expense and amortization of deferred financing costs. 6) Includes realized and unrealized gains (losses) on loans held for sale and MSR creation. • Originations of $292.0 million(1), 62% of loans held-for-investment are floating rate • Origination pipeline of $458.4 million(2) : 11.7% 12.5% 9.4% 8.9% 9.3% 2.3% 2.4% 2.3% 1.8% 1.9% 0.0% 5.0% 10.0% 15.0% 20.0% Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Gross Levered Yield (ex. Gains) Gains on Loans, held for sale GROSS LEVERED YIELDCURRENT QUARTER HIGHLIGHTS (5) (6) Portfolio Metrics (Balance Sheet) Number of loans 357 397 403 421 429 Unpaid Principal Balance (3) $ 1,120 $ 1,202 $ 1,305 $ 1,479 $ 1,582 Carrying Value (3) $ 1,132 $ 1,213 $ 1,314 $ 1,488 $ 1,589 Weighted Average LTV 61% 60% 60% 63% 63% Weighted Average Coupon 6.4% 6.4% 6.3% 6.3% 6.2% Weighted Average Maturity 5 years 5 years 5 years 5 years 5 years Weighted Average Principal Balance (3) $ 3.1 $ 3.0 $ 3.2 $ 3.5 $ 3.7 Percentage of loans fixed / floating 56% / 44% 55% / 45% 56% / 44% 55% / 45% 53% / 47% Percentage of fixed, match funded (4) 82.2% 73.9% 62.8% 54.2% 87.3% Percentage of loans 30+ days delinquent 1.3% 1.7% 1.3% 2.3% 2.7% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Fixed Rate $ 44.5 $ 126.9 $ 171.4 Transitional 24.9 133.9 158.8 Freddie Mac 22.4 105.8 128.2 Total $ 91.8 $ 366.6 $ 458.4 Product April 2019 Forward Total Pipeline


GRAPHIC

SBA ORIGINATIONS, ACQUISITIONS, & SERVICING-SEGMENT SNAPSHOT 9 1) Represents fully committed amounts. 2) $ in millions, as of quarter end. 3) Includes interest income, accretion of discount, and servicing income net of interest expense and amortization of deferred 4) Includes realized and unrealized gains (losses) on loans held for sale and MSR creation. • $43.6 million of SBA secondary market loans sales, with an average sale premium of 9.6% • Originations of $44.1 million(1) • Origination pipeline of $135.9 million SBA loans, including $17.5 million of April 2019 fundings 20.4% 17.1% 16.6% 17.1% 15.0% 8.0% 11.8% 11.6% 13.9% 11.1% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Gross Levered Yield (ex. Gains) Gains on Loans, held for sale CURRENT QUARTER HIGHLIGHTS GROSS LEVERED YIELD (3) (4) Portfolio Metrics (Balance Sheet) Number of loans 2,062 2,029 1,976 1,931 1,876 Unpaid Principal Balance (2) $ 502 $ 489 $ 481 $ 467 $ 262 Carrying Value (2) $ 452 $ 438 $ 434 $ 424 $ 220 Weighted Average LTV 78% 79% 80% 79% 82% Weighted Average Coupon 6.2% 6.4% 6.7% 7.0% 7.4% Weighted Average Maturity 14 years 14 years 14 years 14 years 15 years Weighted Average Principal Balance (2) $ 0.2 $ 0.2 $ 0.2 $ 0.2 $ 0.1 Percentage of loans fixed / floating 1% / 99% 1% / 99% 1% / 99% 1% / 99% 1% / 99% Percentage of loans 30+ days delinquent 6.0% 3.6% 4.1% 7.0% 9.0% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019


GRAPHIC

LOAN ACQUISITIONS-SEGMENT SNAPSHOT 10 1) Excludes joint venture investment. 2) $ in millions, as of quarter end. 3) Represents fixed rate loans that have been securitized. • At this stage of the credit cycle, ample inventory of opportunistic performing SBC loans • Acquired $128.7 million of SBC loans • Acquisition pipeline of $573.3 million SBC loans, including April 2019 acquisitions of $19.5 million 12.5% 11.1% 11.9% 12.2% 13.8% 15.0% 3.0% 4.5% 7.0% 8.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Income on joint venture investment Gross Levered Yield (ex. Gains) CURRENT QUARTER HIGHLIGHTS GROSS LEVERED YIELD Portfolio Metrics(1) (Balance Sheet) Number of loans 976 1,019 949 896 1,018 Unpaid Principal Balance (2) $ 525 $ 602 $ 617 $ 573 $ 798 Carrying Value (2) $ 488 $ 569 $ 588 $ 548 $ 770 Weighted Average LTV 50% 51% 49% 44% 53% Weighted Average Coupon 6.5% 6.6% 6.7% 6.6% 6.7% Weighted Average Maturity 8 years 8 years 8 years 7 years 7 years Weighted Average Principal Balance (2) $ 0.5 $ 0.6 $ 0.6 $ 0.6 $ 0.8 Percentage of loans fixed / floating 58% / 42% 62% / 38% 65% / 35% 66% / 34% 61% / 39% Percentage of fixed, match funded (3) 27.0% 15.5% 11.4% 51.6% 51.6% Percentage of loans performing / non-performing 97% / 3% 97% / 3% 98% / 2% 98% / 2% 95% / 5% Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019


GRAPHIC

RESIDENTIAL MORTGAGE BANKING –SEGMENT SNAPSHOT 111) $ in millions. Represents activity during the quarter. 2) Represents fully committed amounts • MSR portfolio of approximately $7.6 billion in UPB, up 2% compared to Q4 • Fair market value of $88.2 million • Originations of $344.4 million(2) • Loan sales of $326.5 million • Origination pipeline of $198.7 million in commitments to originate residential agency loans(2) $6.8 $7.0 $7.3 $7.5 $7.6 $0.0 $2.0 $4.0 $6.0 $8.0 MSR PORTFOLIO (UPB IN $ BILLIONS)CURRENT QUARTER HIGHLIGHTS Portfolio Metrics (quarterly activity) Unpaid principal balance (1) $ 438.9 $ 498.6 $ 472.1 $ 369.1 $ 344.4 % of Originations - Purchased 72.8% 80.6% 79.6% 76.7% 74.3% % of Originations - Refinanced 27.2% 19.4% 20.4% 23.3% 25.7% Channel - % Correspondent 41.0% 36.7% 37.0% 38.2% 34.5% Channel - % Retail 39.3% 41.6% 42.5% 44.0% 47.2% Channel - % Wholesale 19.7% 21.7% 20.5% 17.8% 18.2% Unpaid principal balance (1) $ 475.5 $ 479.9 $ 496.1 $ 382.7 $ 326.5 % of UPB - Fannie/ Freddie securitizations 68.8% 67.6% 65.6% 62.8% 68.4% % of UPB - Ginnie Mae securitizations 20.4% 23.0% 24.3% 25.8% 24.6% % of UPB - Other investors 10.8% 9.4% 10.1% 11.5% 7.0% Q4 2018 Q1 2019 Originations Sales Q1 2018 Q2 2018 Q3 2018 Fair Q1' 18 Q2' 18 Q3' 18 Q4' 18 Q1' 19 Value ($ mm) $ 81.6 $ 85.6 $ 91.7 $ 93.1 $ 88.2


GRAPHIC

ACTIVE SBC AND SBA LOAN SECURITIZATION PERFORMANCE 121) Represents remaining collateral in the securitization Issuance Date Delinquency 30+ Delinquency 60+ Delinquency 90+ Cumulative Loss Fixed Rate $ 1,126,954 RCMT 2014-1 September 2014 181,922 0.25 0.0% 0.0% 0.0% 0.0% RCMT 2015-2 November 2015 218,757 0.55 0.9% 0.0% 0.0% 0.0% RCMT 2016-3 November 2016 162,075 0.49 0.0% 0.0% 0.0% 0.0% RCMT 2018-4 March 2018 165,000 0.96 0.0% 0.0% 0.0% 0.0% RCMT 2019-5 January 2019 399,200 0.98 0.0% 0.0% 0.0% 0.0% Floating Rate $ 522,080 RCMF 2017-FL1 August 2017 243,797 0.26 0.0% 0.0% 0.0% 0.0% RCMF 2018-FL2 June 2018 278,283 0.73 2.8% 0.0% 0.0% 0.0% $ 1,878,787 FRESB 2016-SB11 January 2016 109,965 0.58 0.0% 0.0% 0.0% 0.0% FRESB 2016-SB18 July 2016 118,037 0.81 0.0% 0.0% 0.0% 0.0% FRESB 2017-SB33 June 2017 219,852 0.87 1.8% 0.0% 0.0% 0.0% FRESB 2018-SB45 January 2018 362,018 0.95 0.0% 0.0% 0.0% 0.0% FRESB 2018-SB52 September 2018 561,584 0.97 0.0% 0.0% 0.0% 0.0% FRESB 2018-SB56 December 2018 507,331 1.00 0.0% 0.0% 0.0% 0.0% Acquired - Performing $ 515,153 WVMT 2011-SBC2 March 2011 97,557 0.23 3.0% 2.5% 2.5% 3.7% SCMT 2017-SBC6 August 2017 154,929 0.48 2.3% 0.1% 0.1% 0.0% SCMT 2018-SBC7 November 2018 262,667 0.87 0.3% 0.2% 0.2% 0.0% $ 4,042,974 Freddie Mac Acquired Originated Total loan securitizations Securitization Original Collateral Balance Pool - Factor(1)


GRAPHIC

INTEREST RATE RISK SENSITIVITY 13 1) As a percent of carrying value 2) Excludes loans held-for-sale, at fair value 3) Based on portfolio as of March 31, 2019 and assumes no future changes in the composition of the portfolio. PORTFOLIO -FIXED VS FLOATING INTEREST RATESENSITIVITY ► 69% of our fixed rate loan portfolio is match funded $- $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 25 basis point increase 50 basis point increase 75 basis point increase 100 basis point increase Annual Net Interest Income Per Share (Pre-tax)(3) Floating Rate, 46.6% Fixed Rate, match funded, 36.7% Fixed Rate, not match funded, 16.7% % of Total Loan Exposure (1)(2)


GRAPHIC

LOAN PORTFOLIO COMPOSITION AS OF MARCH 31, 2019(1)(2) Geographic Location Lien Position (1) As a percent of unpaid principal balance (2) Excludes loans held-for-sale, at fair value (3) 14 Collateral Type SBA Collateral Type California, 18.4% Texas, 13.7% Florida, 8.9% New York, 5.2%Georgia, 5.2% Other, 48.6% SBA, 9.5% Multi-Family, 30.0% Retail, 20.8% Office, 15.0% Mixed use, 9.1% Other, 15.6% Physicians Offices, 14.4% Child Day Care Services, 9.5% Lodging, 6.5% Veterinarians, 5.5% Restaurants, 7.2% Other, 56.9% First Mortgage, 97.9% Subordinated Mortgage, 1.3% Other, 0.8%


GRAPHIC

CAPITAL STRUCTURE –REDUCTION IN LIQUIDITY RISK ► Since going public in Q4 2016, we continue to optimize our capital structure: • Issued $345 million of corporate debt: • Convertible notes: 6 year notes, 7.0% coupon, $115 million • Senior secured notes: 5 year notes, 7.5% coupon • $75 million in 2/2017; YTM of 7.5% • $65 million in 6/2017; YTM of 6.75% • $40 million in 1/2018, YTM of 6.5% • Retail Baby Bonds: 3 year notes, 6.5% coupon, $50 million ► Completed $320 million securitization of originated transitional loans in April 2019 15 Funding Mix Total Debt + Equity CURRENT SOURCES OF FUNDINGHISTORICAL CAPITAL STRUCTURETotal Debt + Equity ($M) Funding Mix $2,193 $2,382 $2,480 $2,641 $3,088 Convertible Notes $ 115 7.0% 7.0% Senior Secured Notes $ 180 7.5% 7.0% Retail Baby Bonds $ 50 6.5% 6.5% Total $ 345 7.2% 7.0% Principal Balance Coupon YTM Corporate Financing (in $M) 26% 24% 23% 21% 25% 5% 5% 4% 4% 4% 8% 10% 9% 9% 7% 30% 29% 33% 32% 27% 31% 33% 30% 34% 37% Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Common Equity Convertible senior notes Senior secured notes and Corporate debt Credit facilities and repurchase agreements Securitized debt obligations


GRAPHIC

FINANCING AND LEVERAGE 16 1.7x 1.8x 2.0x 2.1x 1.6x 2.9x 3.2x 3.4x 3.7x 3.1x 0 0.5 1 1.5 2 2.5 3 3.5 4 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Historical Leverage Recourse Total HISTORICAL LEVERAGE Total Debt-to-Equity Ratio Secured borrowings (warehouse credit facilities and borrowings under repo transactions) $ 848 Securitized debt obligations 1,141 Senior secured notes and corporate bonds 228 Convertible notes 110 Total Debt $ 2,327 Total Stockholders' Equity $ 761 Total debt-to-equity ratio 3.06 Total recourse debt-to-equity ratio Total Debt $ 2,327 Less: Securitized debt obligations (1,141) Total recourse debt $ 1,186 Total Stockholders' Equity $ 761 Total recourse debt-to-equity ratio 1.56 3/31/2019 (in millions)


GRAPHIC

LOAN WAREHOUSE FACILITIES 17(1) $ in millions Bank Maturity Rate Description and Uses of Funds JPMorgan May '19 1M L + 2.50% $ 225 $ 158 Borrowings are used to finance SBC and SBA loan acquisitions, and SBA loan originations. KeyBank Feb '20 1M L + 1.50% 125 120 Borrowings are used to finance Freddie Mac SBC loan originations. East West July '20 Prime - 0.821 to + 0.029% 50 17 Borrowings are used to finance SBA loan originations and acquisitions. FCB June '21 2.75% 3 - Borrowings are used to finance SBC loan acquisitions. GMFS facilities < 1 year 1M L + 1.75 to 2.0% 180 91 Borrowings are used to finance Residential Agency loan originations. GMFS - MSR Sept '23 1M L + 2.50% 50 9 Borrowings are used to finance Residential Agency MSRs. Rabobank Jan '21 4.22% 15 2 Borrowings are used to finance acquired REO properties. $ 648 $ 395 Citibank June '19 1M L + 2.125 to 2.50% $ 500 $ 397 Borrowings are used to finance SBC loan originations and SBC loan acquisitions. Deutsche Bank Feb '20 3M L + 2.30 to 2.80% 300 168 Borrowings are used to finance SBC loan originations and Transitional loan originations. JPMorgan Dec '20 1M L + 2.25 to 4.00% 200 25 Borrowings are used to finance SBC and Transitional loan originations, and SBC loan acquisitions. $ 1,000 $ 590 Total Secured Borrowings $ 1,648 $ 985 Borrowings under repurchase agreements Total Borrowings under repurchase agreements Total Borrowings under credit facilities Borrowings under credit facilities Available Capacity (1) Facility Size (1)


GRAPHIC

READY CAPITAL SNAPSHOT ($ amounts in thousands, except per share data) 18 (5) Excludes the equity component of our 2017 convertible note issuance 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 held for sale, 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) The Company 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 3/31/2019 on an annualized basis. 4) Excludes loans, held for sale, at fair value 5) Excludes the equity component of our 2017 convertible note issuance. Common Stockholders' equity $ 741,146 Common Stockholders' equity (adjusted)(5) $ 739,166 Total Common Shares outstanding 44,395,713 Net Book Value per Common Share $ 16.69 Adjusted Net Book Value per Common Share $ 16.65 Book Equity Value Metrics Net income attributable to Ready Capital Corporation $ 29,467 Earnings per share - Basic and diluted $ 0.90 Core Earnings per Common Share $ 0.34 Return on Equity per Common Share 21.6% Core Return on Equity per Common Share 8.0% Dividend Yield 10.9% Q1 2019 Earnings Data Metrics SBA servicing rights - UPB $ 510,789 SBA servicing rights- carrying value $ 16,448 Freddie Mac servicing rights - UPB $ 1,023,109 Freddie Mac servicing rights - carrying value $ 10,839 Residential servicing rights - UPB $ 7,590,151 Residential servicing rights - carrying value $ 88,218 Servicing Portfolio Metrics Average Carrying Value(1) Debt Cost (3) Levered Yield Loan Acquisitions 590,110$ 8.9% 451,401$ 4.8% 22.2% SBC Originations 1,693,869$ 6.9% 1,249,703$ 5.3% 11.2% SBA Originations, Acquisitions, & Servicing 430,983$ 11.0% 316,667$ 5.6% 26.1% Total 2,714,962$ 8.0% 2,017,771$ 5.2% 15.9% Investment Type Gross Yield(2) Average Debt Balance % Fixed vs Floating Rate 46.6% / 53.4% % Originated vs Acquired 66.8% / 33.2% Weighted Average LTV - SBC 63% Weighted Average LTV - SBA 82% Weighted Average LTV - Acquired 53% Loan Portfolio Metrics (4)


GRAPHIC

APPENDIX 19


GRAPHIC

PER SHARE FINANCIAL PERFORMANCE 20 ► Adjusted net book value of $16.65 per common share as of March 31, 2019 Per Share Trends $0.56 $0.48 $0.53 $0.30 $0.90 $0.47 $0.47 $0.48 $0.34 $0.34 $0.37 $0.40 $0.40 $0.40 $0.40 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Earnings Core earnings Dividends declared


GRAPHIC

BALANCE SHEET BY QUARTER 21 (In Thousands) Assets Cash and cash equivalents $ 86,773 $ 105,833 $ 47,845 $ 54,406 $ 47,597 Restricted cash 13,964 15,108 18,864 28,921 29,979 Loans, net 1,057,034 1,035,330 1,256,177 1,193,392 1,057,023 Loans, held for sale, at fair value 160,999 188,752 124,988 115,258 115,778 Mortgage backed securities, at fair value 47,181 50,070 94,341 91,937 91,435 Loans eligible for repurchase from Ginnie Mae 81,484 79,623 79,600 74,180 73,057 Investment in unconsolidated joint venture 50,229 41,598 40,914 33,438 39,025 Derivative instruments 5,022 4,758 5,846 2,070 2,483 Servicing rights 104,613 111,274 118,221 120,062 115,652 Receivable from third parties 11,064 980 1,529 8,888 718 Real estate acquired in settlement of loans 1,652 4,837 4,045 7,787 75,517 Other assets 51,940 52,111 55,115 55,447 68,886 Assets of consolidated VIEs 968,999 1,122,706 1,053,274 1,251,057 1,561,864 Total Assets $ 2,640,954 $ 2,812,980 $ 2,900,759 $ 3,036,843 $ 3,279,014 Liabilities Secured borrow ings 663,116 684,382 822,414 834,547 848,225 Securitized debt obligations of consolidated VIEs, net 679,871 795,503 752,432 905,367 1,140,919 Convertible notes, net 109,226 109,484 109,743 109,979 110,241 Senior secured notes and Corporate notes, net 178,688 226,890 227,058 227,327 227,608 Guaranteed loan financing 278,500 263,920 246,229 229,678 34,047 Contingent consideration 10,732 1,686 1,773 1,207 — Liabilities for loans eligible for repurchase from Ginnie Mae 81,484 79,623 79,600 74,180 73,057 Derivative instruments 756 935 39 3,625 3,392 Dividends payable 12,335 13,340 13,346 13,346 13,396 Accounts payable and other accrued liabilities 64,490 72,659 79,089 73,512 67,240 Total Liabilities $ 2,079,198 $ 2,248,422 $ 2,331,723 $ 2,472,768 $ 2,518,125 Stockholders’ Equity Common stock 3 3 3 3 4 Additional paid-in capital 539,457 539,457 539,869 540,478 720,680 Retained earnings 2,559 5,870 9,698 5,272 21,790 Accumulated other comprehensive loss — — — (922) (1,328) Total Ready Capital Corporation equity 542,019 545,330 549,570 544,831 741,146 Non-controlling interests 19,737 19,228 19,466 19,244 19,743 Total Stockholders’ Equity $ 561,756 $ 564,558 $ 569,036 $ 564,075 $ 760,889 Total Liabilities and Stockholders’ Equity $ 2,640,954 $ 2,812,980 $ 2,900,759 $ 3,036,843 $ 3,279,014 Adjusted Book Value per Share $ 16.88 $ 16.95 $ 17.08 $ 16.91 $ 16.65 3/31/20193/31/2018 6/30/2018 9/30/2018 12/31/2018


GRAPHIC

STATEMENT OF INCOME BY QUARTER 22(1) Certain balances have been reclassified to match current period presentation (In Thousands, except share data) Interest income $ 37,150 $ 41,858 $ 44,287 $ 46,204 $ 48,753 Interest expense (22,666) (26,407) (28,925) (31,240) (35,775) Net interest income before provision for loan losses $ 14,484 $ 15,451 $ 15,362 $ 14,964 $ 12,978 Provision for loan losses (167) 397 (800) (1,131) (518) Net interest income after provision for loan losses $ 14,317 $ 15,848 $ 14,562 $ 13,833 $ 12,460 Non-interest income Residential mortgage banking activities $ 14,024 $ 17,255 $ 17,011 $ 11,561 $ 14,587 Net realized gain on financial instruments 12,232 8,620 6,946 10,610 7,282 Net unrealized gain (loss) on financial instruments 3,008 4,457 8,500 (11,112) (6,912) Other income 1,334 1,826 1,204 1,222 900 Servicing income, net of amortization and impairment 6,410 6,627 6,922 7,116 6,752 Income on unconsolidated joint venture 5,739 1,503 2,178 2,728 2,929 Gain on bargain purchase — — — — 30,728 Total non-interest income $ 42,747 $ 40,288 $ 42,761 $ 22,125 $ 56,266 Non-interest expense Employee compensation and benefits (15,320) (14,272) (14,163) (12,847) (11,448) Allocated employee compensation and benefits from related party (1,200) (1,200) (1,200) (600) (853) Variable expenses on residential mortgage banking activities (2,290) (7,493) (8,337) (4,108) (9,176) Professional fees (2,648) (2,401) (2,294) (420) (1,829) Management fees – related party (2,013) (2,036) (2,070) (2,058) (1,997) Incentive fees – related party (408) (269) — (467) — Loan servicing expense (4,093) (3,000) (4,247) (3,442) (3,648) ORM merger expenses — — — — (5,467) Other operating expenses (8,011) (8,916) (6,548) (5,267) (6,861) Total non-interest expense $ (35,983) $ (39,587) $ (38,859) $ (29,209) $ (41,279) Income before provision for income taxes $ 21,081 $ 16,549 $ 18,464 $ 6,749 $ 27,447 Provision for income (taxes) benefit (2,563) (665) (895) 2,737 3,003 Net income $ 18,518 $ 15,884 $ 17,569 $ 9,486 $ 30,450 Less: Net income attributable to non-controlling interest 664 588 638 309 983 Net income attributable to Ready Capital Corporation $ 17,854 $ 17,854 $ 16,931 $ 9,177 $ 29,467 Earnings per common share - basic $ 0.56 $ 0.48 $ 0.53 $ 0.30 $ 0.90 Earnings per common share - diluted $ 0.56 $ 0.48 $ 0.53 $ 0.30 $ 0.90 Weighted-average shares outstanding - Basic 32,036,504 32,073,717 32,109,642 32,122,503 32,556,875 Weighted-average shares outstanding - Diluted 32,045,844 32,092,750 32,130,262 32,138,712 32,563,644 Dividends declared per share of common stock $ 0.37 $ 0.40 $ 0.40 $ 0.40 $ 0.40 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019


GRAPHIC

CORE EARNINGS RECONCILIATION 23 We believe that providing investors with Core Earnings, a non-U.S.GAAP financial measure, in addition to the related U.S.GAAP measures, gives investors greater transparency into the information used by management in our financial and operational decision-making. However, because Core Earnings is an incomplete measure of our 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, our net income as a measure of our financial performance. In addition, because not all companies use identical calculations, our presentation of Core Earnings may not be comparable to other similarly-titled measures of other companies. We calculate Core Earnings as GAAP net income (loss) excluding the following: i) any unrealized gains or losses on certain MBS ii) any realized gains or losses on sales of certain MBS iii) any unrealized gains or losses on Residential MSRs iv) one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses In calculating Core Earnings, Net Income (in accordance with GAAP) is adjusted to exclude unrealized gains and losses on MBS acquired by us in the secondary market, but is not adjusted to exclude unrealized gains and losses on MBS retained by us as part of our loan origination businesses, where we transfer originated loans into an MBS securitization and retain an interest in the securitization. In calculating Core Earnings, we do not adjust Net Income (in accordance with GAAP) to take into account unrealized gains and losses on MBS retained by us as part of our loan origination businesses because we consider the unrealized gains and losses that are generated in the loan origination and securitization process to be a fundamental part of this business and an indicator of the ongoing performance and credit quality of our historical loan originations. In calculating Core Earnings, Net Income (in accordance with GAAP) is adjusted to exclude realized gains and losses on certain MBS securities considered to be non-core. Certain MBS positions are considered to be non-core due to a variety of reasons which may include collateral type, duration, and size. In addition, in calculating Core Earnings, Net Income (in accordance with GAAP) is adjusted to exclude unrealized gains or losses on Residential MSRs, held at fair value. We treat our commercial MSRs and Residential MSRs as two separate classes based on the nature of the underlying mortgages and our treatment of these assets as two separate pools for risk management purposes. Servicing rights relating to our small business commercial business are accounted for under ASC 860, Transfer and Servicing, while our residential MSRs are accounted for under the fair value option under ASC 825, Financial Instruments. In calculating Core Earnings, we do not exclude realized gains or losses on either commercial MSRs or Residential MSRs, held at fair value, as servicing income is a fundamental part of our business and as an indicator of the ongoing performance. (In Thousands) Net Income $ 18,518 $ 15,884 $ 17,569 $ 9,486 $ 30,450 Reconciling items: Gain on bargain purchase $ — $ — $ — $ — $ (30,728) ORM merger expenses — — — — 5,467 Non-recurring expenses — — — — 726 Unrealized (gain) loss on mortgage-backed securities 79 86 (10) 226 14 Unrealized (gain) loss on mortgage servicing rights (4,155) (253) (1,969) 2,171 7,128 Total reconciling items $ (4,076) $ (167) $ (1,979) $ 2,397 $ (17,393) Core earnings before income taxes $ 14,442 $ 15,717 $ 15,590 $ 11,883 $ 13,057 Income tax adjustments 1,047 64 495 (547) (1,782) Core earnings $ 15,489 $ 15,781 $ 16,085 $ 11,336 $ 11,275 Less: Core earnings attributable to non-controlling interests $ 555 $ 584 $ 584 $ 369 $ 364 Core earnings attributable to Common Stockholders $ 14,935 $ 15,197 $ 15,501 $ 10,967 $ 10,911 Core earnings per share $ 0.47 $ 0.47 $ 0.48 $ 0.34 $ 0.34 Weighted average common shares outstanding 32,036,504 32,073,717 32,109,642 32,122,503 32,556,875 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019


GRAPHIC


(Back To Top)