
Maryland | 90-0729143 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1251 Avenue of the Americas, 50th Floor, New York, NY 10020 | |
(Address of Principal Executive Offices, Including Zip Code) | |
(212) 257-4600 | |
(Registrant's telephone number, including area code) | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.0001 par value per share | RC | New York Stock Exchange |
Preferred Stock, 6.25% Series C Cumulative Convertible, par value $0.0001 per share | RC PRC | New York Stock Exchange |
Preferred Stock, 6.50% Series E Cumulative Redeemable, par value $0.0001 per share | RC PRE | New York Stock Exchange |
6.20% Senior Notes due 2026 | RCB | New York Stock Exchange |
5.75% Senior Notes due 2026 | RCC | New York Stock Exchange |
9.00% Senior Notes due 2029 | RCD | New York Stock Exchange |
Page |
December 31, 2024 | |||
(in thousands, except personnel) | LMM Commercial Real Estate | Small Business Lending | |
Coordinating Affiliate/ Manager | Waterfall, ReadyCap Commercial and Red Stone | ReadyCap Lending, Madison One and iBusiness | |
Strategy | LMM loan originations and acquisitions | SBA and USDA loan originations, acquisitions and servicing | |
Gross Assets | $8,058,707 | $1,427,281 | |
Loan Portfolio Allocation | 84.7% | 15.3% | |
Equity Allocation | 88.9% | 9.7% | |
Distributable Earnings | $29,779 | $57,066 | |
Distributable Earnings Allocation | 29.8% | 57.1% | |
Personnel | 118 | 357 | |
HISTORICAL PRE-TAX INCOME (LOSS) ($ millions) | NET INCOME (LOSS) TO ASSETS (%) | |
DISTRIBUTABLE EARNINGS ($ millions) | RETURN ON EQUITY (%) | |




December 31, 2024 | ||||||||
(in thousands) | Segment | UPB | % of Total | Carrying Value | % of Total | |||
Bridge | LMM Commercial Real Estate | $5,413,832 | 60.0% | $5,160,410 | 60.4% | |||
Fixed rate | LMM Commercial Real Estate | 891,675 | 9.9 | 885,417 | 10.4 | |||
Construction | LMM Commercial Real Estate | 952,045 | 10.5 | 787,668 | 9.2 | |||
Freddie Mac | LMM Commercial Real Estate | 35,931 | 0.4 | 36,248 | 0.4 | |||
Other | LMM Commercial Real Estate and Small Business Lending | 390,992 | 4.3 | 370,650 | 4.3 | |||
SBA - 7(a) | Small Business Lending | 1,347,106 | 14.9 | 1,309,443 | 15.3 | |||
Total | $9,031,581 | 100.0% | $8,549,836 | 100.0% | ||||



December 31, 2024 | |||||||
(in millions) | Asset Class | Issuance | Bonds Issued | Weighted Average Debt Cost | Outstanding Balance | ||
RCMT 2014-1 | LMM Originated conventional | September 2014 | $181.7 | 3.2% | $— | ||
RCMT 2015-2 | LMM Originated conventional | November 2015 | 218.8 | 4.0% | — | ||
FRESB 2016-SB11 | Originated agency multi-family | January 2016 | 110.0 | 2.8% | 13.7 | ||
FRESB 2016-SB18 | Originated agency multi-family | July 2016 | 118.0 | 2.2% | 12.7 | ||
RCMT 2016-3 | LMM Originated conventional | November 2016 | 162.1 | 3.4% | 25.9 | ||
FRESB 2017-SB33 | Originated agency multi-family | June 2017 | 197.9 | 2.6% | 41.3 | ||
RCMF 2017-FL1 | LMM Originated bridge | August 2017 | 198.8 | L+139 bps | — | ||
FRESB 2018-SB45 | Originated agency multi-family | January 2018 | 362.0 | 2.8% | 103.9 | ||
RCMT 2018-4 | LMM Originated conventional | March 2018 | 165.0 | 3.8% | 60.5 | ||
RCMF 2018-FL2 | LMM Originated bridge | June 2018 | 217.1 | L+121 bps | — | ||
FRESB 2018-SB52 | Originated agency multi-family | September 2018 | 505.0 | 2.9% | 223.5 | ||
FRESB 2018-SB56 | Originated agency multi-family | December 2018 | 507.3 | 3.6% | 259.6 | ||
RCMT 2019-5 | LMM Originated conventional | January 2019 | 355.8 | 4.1% | 103.6 | ||
RCMF 2019-FL3 | LMM Originated bridge | April 2019 | 320.2 | L+133 bps | — | ||
RCMT 2019-6 | LMM Originated conventional | November 2019 | 430.7 | 3.2% | 218.5 | ||
RCMF 2020-FL4 | LMM Originated bridge | June 2020 | 405.3 | L+290 bps | — | ||
KCMT 2020-S3 | LMM Originated conventional | September 2020 | 263.2 | 5.3% | 238.0 | ||
RCMF 2021-FL5 | LMM Originated bridge | March 2021 | 628.9 | SOFR+140 bps | 193.9 | ||
RCMF 2021-FL6 | LMM Originated bridge | August 2021 | 652.5 | SOFR+120 bps | 315.7 | ||
RCMF 2021-FL7 | LMM Originated bridge | November 2021 | 927.2 | SOFR+150 bps | 597.4 | ||
RCMF 2022-FL8 | LMM Originated bridge | March 2022 | 1,135.0 | SOFR+250 bps | 809.0 | ||
RCMT 2022-7 | LMM Originated conventional | April 2022 | 276.8 | 4.1% | 262.7 | ||
RCMF 2022-FL9 | LMM Originated bridge | June 2022 | 754.2 | SOFR+341 bps | 469.9 | ||
RCMF 2022-FL10 | LMM Originated bridge | October 2022 | 860.1 | SOFR+326 bps | 718.6 | ||
RCMF 2023-FL11 | LMM Originated bridge | February 2023 | 586.0 | SOFR+277 bps | 425.2 | ||
RCMF 2023-FL12 | LMM Originated bridge | June 2023 | 648.6 | SOFR+314 bps | 421.7 | ||
Total | $11,188.2 | 6.1% | $5,515.3 |
December 31, 2024 | |||||||
(in millions) | Asset Class | Issuance | Bonds Issued | Weighted Average Debt Cost | Outstanding Balance | ||
WVMT 2011-SBC1 | LMM Acquired Loans - NPL | February 2011 | $40.5 | 7.0% | $— | ||
WVMT 2011-SBC2 | LMM Acquired Loans | March 2011 | 97.6 | 5.1% | — | ||
WVMT 2011-SBC3 | LMM Acquired Loans - NPL | October 2011 | 143.4 | 6.4% | — | ||
SCML 2015-SBC4 | LMM Acquired Loans - NPL | August 2015 | 125.4 | 4.0% | — | ||
SCMT 2017-SBC6 | LMM Acquired Loans | August 2017 | 154.9 | 3.5% | 10.2 | ||
SCMT 2018-SBC7 | LMM Acquired Loans | November 2018 | 217.0 | 4.7% | — | ||
SCMT 2019-SBC8 | LMM Acquired Loans | June 2019 | 306.5 | 2.9% | 116.4 | ||
SCMT 2020-SBC9 | LMM Acquired Loans | June 2020 | 203.6 | 3.7% | — | ||
SCMT 2021-SBC10 | LMM Acquired Loans | May 2021 | 232.6 | 1.6% | 76.8 | ||
Total | $1,521.5 | 3.8% | $203.4 |
75% Guaranteed | Guaranteed portion sold at premium. (Premiums over 10% are split 50/50 with SBA) | or | Guaranteed portion sold at par | ||
25% Unguaranteed & Retained | |||||
Interest income is earned on the retained portion of the loan | The premium paid by purchaser is immediate income to us. A 1% annual servicing fee is retained. | When sold at par, service fee will be in excess of 1.0% and all of the fee is retained. |



(in thousands) | Proceeds Received for Sale of Guaranteed Portion of Loans | UPB Sold | Net Proceeds | Weighted Average Sales Premium (1) | |||
Q1 2022 | $67,257 | $60,323 | $6,934 | 11.5% | |||
Q2 2022 | 109,287 | 99,827 | 9,460 | 9.5 | |||
Q3 2022 | 105,351 | 97,025 | 8,326 | 8.6 | |||
Q4 2022 | 109,874 | 101,956 | 7,918 | 7.8 | |||
Q1 2023 | 81,315 | 74,252 | 7,063 | 9.5 | |||
Q2 2023 | 106,825 | 97,879 | 8,946 | 9.1 | |||
Q3 2023 | 98,868 | 90,965 | 7,903 | 8.7 | |||
Q4 2023 | 107,273 | 98,525 | 8,748 | 8.9 | |||
Q1 2024 | 149,303 | 135,392 | 13,911 | 10.3 | |||
Q2 2024 | 189,471 | 170,663 | 18,808 | 11.0 | |||
Q3 2024 | 280,341 | 254,285 | 26,056 | 10.2 | |||
Q4 2024 | 232,678 | 210,718 | 21,960 | 10.4 | |||
Total | $1,637,843 | $1,491,810 | $146,033 | 9.8% |
December 31, 2024 | |||||||
(in millions) | Asset Class | Issuance | Bonds Issued | Weighted Average Debt Cost | Outstanding Balance | ||
RCLT 2015-1 | SBA 7(a) Loans | June 2015 | $189.5 | Lesser of L+125 bps or Prime-150 bps | $— | ||
RCLT 2019-2 | SBA 7(a) Loans | December 2019 | 131.0 | SOFR+250 bps | 18.2 | ||
RCLT 2023-3 | SBA 7(a) Loans | July 2023 | 132.0 | Lesser of 30 day Avg SOFR or Prime+0.07% | 101.0 |

As of the period ended | As of December 31, | |||||||||
Index | October 31, 2016 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
RC | 100.0 | 100.4 | 124.9 | 125.8 | 155.3 | 147.0 | 206.5 | 165.3 | 173.0 | 130.5 |
S&P 500 | 100.0 | 105.3 | 125.7 | 117.9 | 152.0 | 176.7 | 224.2 | 180.6 | 224.3 | 279.5 |
Competitor Composite Average | 100.0 | 100.6 | 115.0 | 125.3 | 169.9 | 160.7 | 203.5 | 165.4 | 204.0 | 194.8 |
Three Months Ended December 31, | Year Ended December 31, | ||||
($ in thousands, except share data) | 2024 | 2024 | 2023 | ||
Net Income (loss) from continuing operations | $(297,517) | $(411,999) | $351,245 | ||
Earnings per common share from continuing operations - basic | $(1.80) | $(2.52) | $2.27 | ||
Earnings per common share from continuing operations - diluted | $(1.80) | $(2.52) | $2.24 | ||
Distributable earnings before realized losses | $44,513 | $181,931 | $190,120 | ||
Distributable earnings before realized losses per common share - basic | $0.23 | $0.97 | $1.18 | ||
Distributable earnings before realized losses per common share - diluted | $0.23 | $0.97 | $1.17 | ||
Distributable earnings | $267 | $28,360 | $190,120 | ||
Distributable earnings per common share - basic | $(0.03) | $0.07 | $1.18 | ||
Distributable earnings per common share - diluted | $(0.03) | $0.07 | $1.17 | ||
Dividends declared per common share | $0.25 | $1.10 | $1.46 | ||
Dividend yield (1) | 14.7% | 14.7% | 13.5% | ||
Return on equity from continuing operations | (60.3)% | (19.6)% | 17.2% | ||
Distributable return on equity before realized losses | 7.1% | 7.5% | 8.6% | ||
Distributable return on equity | (0.3)% | 0.9% | 8.6% | ||
Book value per common share | $10.61 | $10.61 | $14.10 | ||
(in thousands) | December 31, 2024 | December 31, 2023 | $ Change | % Change | |||
Assets | |||||||
Cash and cash equivalents | $143,803 | $138,532 | $5,271 | 3.8% | |||
Restricted cash | 30,560 | 30,063 | 497 | 1.7 | |||
Loans, net (including $3,533 and $9,348 held at fair value) | 3,378,149 | 4,020,160 | (642,011) | (16.0) | |||
Loans, held for sale (including $128,531 and $81,599 held at fair value and net of valuation allowance of $97,620 and $0) | 241,626 | 81,599 | 160,027 | 196.1 | |||
Mortgage-backed securities | 31,006 | 27,436 | 3,570 | 13.0 | |||
Investment in unconsolidated joint ventures (including $6,577 and $7,360 held at fair value) | 161,561 | 133,321 | 28,240 | 21.2 | |||
Derivative instruments | 7,963 | 2,404 | 5,559 | 231.2 | |||
Servicing rights | 128,440 | 102,837 | 25,603 | 24.9 | |||
Real estate owned, held for sale | 193,437 | 252,949 | (59,512) | (23.5) | |||
Other assets | 362,486 | 300,175 | 62,311 | 20.8 | |||
Assets of consolidated VIEs | 5,175,295 | 6,897,145 | (1,721,850) | (25.0) | |||
Assets held for sale | 287,595 | 454,596 | (167,001) | (36.7) | |||
Total Assets | $10,141,921 | $12,441,217 | $(2,299,296) | (18.5)% | |||
Liabilities | |||||||
Secured borrowings | 2,035,176 | 2,102,075 | (66,899) | (3.2) | |||
Securitized debt obligations of consolidated VIEs, net | 3,580,513 | 5,068,453 | (1,487,940) | (29.4) | |||
Senior secured notes, net | 437,847 | 345,127 | 92,720 | 26.9 | |||
Corporate debt, net | 895,265 | 764,908 | 130,357 | 17.0 | |||
Guaranteed loan financing | 691,118 | 844,540 | (153,422) | (18.2) | |||
Contingent consideration | 573 | 7,628 | (7,055) | (92.5) | |||
Derivative instruments | 352 | 212 | 140 | 66.0 | |||
Dividends payable | 43,168 | 54,289 | (11,121) | (20.5) | |||
Loan participations sold | 95,578 | 62,944 | 32,634 | 51.8 | |||
Due to third parties | 1,442 | 3,641 | (2,199) | (60.4) | |||
Accounts payable and other accrued liabilities | 188,051 | 207,481 | (19,430) | (9.4) | |||
Liabilities held for sale | 228,735 | 333,157 | (104,422) | (31.3) | |||
Total Liabilities | $8,197,818 | $9,794,455 | $(1,596,637) | (16.3)% | |||
Preferred stock Series C, liquidation preference $25.00 per share | 8,361 | 8,361 | — | — | |||
Commitments & contingencies | |||||||
Stockholders’ Equity | |||||||
Preferred stock Series E, liquidation preference $25.00 per share | 111,378 | 111,378 | — | — | |||
Common stock, $0.0001 par value, 500,000,000 shares authorized, 162,792,372 and 172,276,105 shares issued and outstanding, respectively | 17 | 17 | — | — | |||
Additional paid-in capital | 2,250,291 | 2,321,989 | (71,698) | (3.1) | |||
Retained earnings (deficit) | (505,089) | 124,413 | (629,502) | (506.0) | |||
Accumulated other comprehensive loss | (18,552) | (17,860) | (692) | (3.9) | |||
Total Ready Capital Corporation equity | 1,838,045 | 2,539,937 | (701,892) | (27.6) | |||
Non-controlling interests | 97,697 | 98,464 | (767) | (0.8) | |||
Total Stockholders’ Equity | $1,935,742 | $2,638,401 | $(702,659) | (26.6)% | |||
Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity | $10,141,921 | $12,441,217 | $(2,299,296) | (18.5)% |
(in thousands) | LMM Commercial Real Estate | Small Business Lending | Total | ||
December 31, 2024 | |||||
Assets | |||||
Loans, net | $7,081,659 | $1,226,551 | $8,308,210 | ||
Loans, held for sale | 152,093 | 89,533 | 241,626 | ||
MBS | 31,006 | — | 31,006 | ||
Investment in unconsolidated joint ventures | 161,034 | 527 | 161,561 | ||
Servicing rights | 67,634 | 60,806 | 128,440 | ||
Real estate owned, held for sale | 194,769 | 251 | 195,020 | ||
Liabilities | |||||
Secured borrowings | 1,784,575 | 250,601 | 2,035,176 | ||
Securitized debt obligations of consolidated VIEs | 3,462,934 | 117,579 | 3,580,513 | ||
Senior secured notes, net | 427,411 | 10,436 | 437,847 | ||
Corporate debt, net | 895,265 | — | 895,265 | ||
Guaranteed loan financing | — | 691,118 | 691,118 | ||
Loan participations sold | 95,578 | — | 95,578 |
For the Year Ended December 31, | |||||
(in thousands) | 2024 | 2023 | $ Change | ||
Interest income | |||||
LMM commercial real estate | $766,354 | $847,253 | $(80,899) | ||
Small business lending | 130,621 | 98,561 | 32,060 | ||
Total interest income | $896,975 | $945,814 | $(48,839) | ||
Interest expense | |||||
LMM commercial real estate | (598,846) | (650,624) | 51,778 | ||
Small business lending | (97,609) | (65,844) | (31,765) | ||
Total interest expense | $(696,455) | $(716,468) | $20,013 | ||
Net interest income before provision for loan losses | $200,520 | $229,346 | $(28,826) | ||
Provision for loan losses | |||||
LMM commercial real estate | (283,800) | (1,413) | (282,387) | ||
Small business lending | (8,959) | (5,817) | (3,142) | ||
Total provision for loan losses | $(292,759) | $(7,230) | $(285,529) | ||
Net interest income after provision for loan losses | $(92,239) | $222,116 | $(314,355) | ||
Non-interest income (loss) | |||||
LMM commercial real estate | (238,972) | 85,965 | (324,937) | ||
Small business lending | 118,574 | 112,068 | 6,506 | ||
Unallocated corporate expenses | 18,633 | 210,435 | (191,802) | ||
Total non-interest income (loss) | $(101,765) | $408,468 | $(510,233) | ||
Non-interest expense | |||||
LMM commercial real estate | (148,230) | (103,776) | (44,454) | ||
Small business lending | (96,889) | (88,328) | (8,561) | ||
Unallocated corporate expenses | (77,388) | (80,061) | 2,673 | ||
Total non-interest expense | $(322,507) | $(272,165) | $(50,342) | ||
Net income (loss) before provision for income taxes | |||||
LMM commercial real estate | (503,494) | 177,405 | (680,899) | ||
Small business lending | 45,738 | 50,640 | (4,902) | ||
Unallocated corporate expenses | (58,755) | 130,374 | (189,129) | ||
Total net income (loss) before provision for income taxes | $(516,511) | $358,419 | $(874,930) | ||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||
(in thousands) | 2024 | 2023 | $ Change | 2024 | 2023 | $ Change | |||||
Net Income (loss) | $(314,751) | $10,881 | $(325,632) | $(430,398) | $348,411 | $(778,809) | |||||
Reconciling items: | |||||||||||
Unrealized (gain) loss on MSR - discontinued operations | 33,175 | 20,715 | 12,460 | 40,394 | 15,427 | 24,967 | |||||
Unrealized loss on joint ventures | (5,015) | 2,124 | (7,139) | (3,503) | 2,124 | (5,627) | |||||
Unrealized loss on foreign exchange hedges | — | 1,582 | (1,582) | — | 1,582 | (1,582) | |||||
Increase in CECL reserve | 277,277 | 3,195 | 274,082 | 272,964 | 3,133 | 269,831 | |||||
Increase (decrease) in valuation allowance | (31,229) | — | (31,229) | 124,878 | — | 124,878 | |||||
Non-recurring REO impairment | 31,175 | — | 31,175 | 55,686 | — | 55,686 | |||||
Non-cash compensation | 2,826 | 1,360 | 1,466 | 8,510 | 7,550 | 960 | |||||
Unrealized (gain) loss on preferred equity, at fair value | 15,613 | — | 15,613 | 15,613 | — | 15,613 | |||||
Merger transaction costs and other non-recurring expenses | 6,579 | 7,361 | (782) | 17,432 | 25,807 | (8,375) | |||||
Bargain purchase (gain) loss | — | 7,060 | (7,060) | (13,859) | (207,972) | 194,113 | |||||
Realized losses on sale of investments | 51,688 | — | 51,688 | 183,718 | — | 183,718 | |||||
Total reconciling items | $382,089 | $43,397 | $338,692 | $701,833 | $(152,349) | $854,182 | |||||
Income tax adjustments | (22,825) | (5,754) | (17,071) | (89,504) | (5,942) | (83,562) | |||||
Distributable earnings before realized losses | $44,513 | $48,524 | $(4,011) | $181,931 | $190,120 | $(8,189) | |||||
Realized losses on sale of investments, net of tax | (44,246) | — | (44,246) | (153,571) | — | (153,571) | |||||
Distributable earnings | $267 | $48,524 | $(48,257) | $28,360 | $190,120 | $(161,760) | |||||
Less: Distributable earnings attributable to non-controlling interests | 3,113 | 1,358 | 1,755 | 8,167 | 7,180 | 987 | |||||
Less: Income attributable to participating shares | 2,248 | 2,206 | 42 | 9,125 | 9,284 | (159) | |||||
Distributable earnings attributable to common stockholders | $(5,094) | $44,960 | $(50,054) | $11,068 | $173,656 | $(162,588) | |||||
Distributable earnings before realized losses on investments, net of tax per common share - basic | $0.23 | $0.26 | $(0.03) | $0.97 | $1.18 | $(0.21) | |||||
Distributable earnings before realized losses on investments, net of tax per common share - diluted | $0.23 | $0.26 | $(0.03) | $0.97 | $1.17 | $(0.20) | |||||
Distributable earnings per common share - basic | $(0.03) | $0.26 | $(0.29) | $0.07 | $1.18 | $(1.11) | |||||
Distributable earnings per common share - diluted | $(0.03) | $0.26 | $(0.29) | $0.07 | $1.17 | $(1.10) | |||||
Pledged Assets | Carrying Value at | |||||||||
Lenders (1) | Asset Class | Current Maturity (2) | Facility Size | Carrying Value | December 31, 2024 | December 31, 2023 | ||||
9 | LMM loans | March 2025 - November 2026 | SOFR + 3.17% | $3,806,000 | $2,245,847 | $1,482,085 | $1,677,885 | |||
1 | LMM loans - Non-USD (4) | Matured | EURIBOR + 3.00% | — | — | — | 45,031 | |||
7 | MBS | January 2025 - June 2025 | 7.59% | 236,046 | 458,346 | 236,046 | 229,236 | |||
Total borrowings under repurchase agreements | $4,042,046 | $2,704,193 | $1,718,131 | $1,952,152 | ||||||
(in thousands) | Quarter End Balance | Average Balance in Quarter | Highest Month End Balance in Quarter | ||
Q1 2023 | 1,959,888 | 2,094,621 | 2,371,413 | ||
Q2 2023 | 1,792,366 | 1,945,290 | 2,022,433 | ||
Q3 2023 | 1,915,878 | 1,876,204 | 1,915,879 | ||
Q4 2023 | 1,952,152 | 1,889,494 | 1,952,152 | ||
Q1 2024 | 1,998,132 | 1,956,153 | 1,998,132 | ||
Q2 2024 | 2,087,661 | 2,058,766 | 2,087,661 | ||
Q3 2024 | 1,882,327 | 1,971,347 | 2,049,273 | ||
Q4 2024 | 1,718,131 | 1,795,627 | 1,846,677 |
(in thousands) | Coupon Rate | Maturity Date | December 31, 2024 | ||
Senior secured notes principal amount(1) | 4.50% | 10/20/2026 | $350,000 | ||
Term loan principal amount(2) | SOFR + 5.50% | 4/12/2029 | 95,000 | ||
Unamortized discount - Senior secured notes | (2,456) | ||||
Unamortized deferred financing costs - Term loan | (4,697) | ||||
Total senior secured notes, net | $437,847 | ||||
Corporate debt principal amount(3) | 5.50% | 12/30/2028 | 110,000 | ||
Corporate debt principal amount(4) | 6.20% | 7/30/2026 | 104,614 | ||
Corporate debt principal amount(4) | 5.75% | 2/15/2026 | 206,270 | ||
Corporate debt principal amount(5) | 6.125% | 4/30/2025 | 120,000 | ||
Corporate debt principal amount(6) | 7.375% | 7/31/2027 | 100,000 | ||
Corporate debt principal amount(7) | 5.00% | 11/15/2026 | 100,000 | ||
Corporate debt principal amount(8) | 9.00% | 12/15/2029 | 130,000 | ||
Unamortized discount - corporate debt | (8,318) | ||||
Unamortized deferred financing costs - corporate debt | (3,551) | ||||
Junior subordinated notes principal amount(9) | SOFR + 3.10% | 3/30/2035 | 15,000 | ||
Junior subordinated notes principal amount(10) | SOFR + 3.10% | 4/30/2035 | 21,250 | ||
Total corporate debt, net | $895,265 | ||||
Total carrying amount of debt | $1,333,112 |
(in thousands) | December 31, 2024 |
2025 | $120,000 |
2026 | 760,884 |
2027 | 100,000 |
2028 | 110,000 |
2029 | 225,000 |
Thereafter | 36,250 |
Total contractual amounts | $1,352,134 |
Unamortized deferred financing costs, discounts, and premiums, net | (19,022) |
Total carrying amount of debt | $1,333,112 |
(in millions) | Collateral Asset Class | Issuance | Active / Collapsed | Bonds Issued |
Trusts (Firm sponsored) | ||||
Waterfall Victoria Mortgage Trust 2011-1 (SBC1) | LMM Acquired loans | February 2011 | Collapsed | $40.5 |
Waterfall Victoria Mortgage Trust 2011-3 (SBC3) | LMM Acquired loans | October 2011 | Collapsed | 143.4 |
Sutherland Commercial Mortgage Trust 2015-4 (SBC4) | LMM Acquired loans | August 2015 | Collapsed | 125.4 |
Sutherland Commercial Mortgage Trust 2018 (SBC7) | LMM Acquired loans | November 2018 | Collapsed | 217.0 |
ReadyCap Lending Small Business Trust 2015-1 (RCLT 2015-1) | Acquired SBA 7(a) loans | June 2015 | Collapsed | 189.5 |
ReadyCap Lending Small Business Loan Trust 2019-2 (RCLT 2019-2) | Originated SBA 7(a) loans, Acquired SBA 7(a) loans | December 2019 | Active | 131.0 |
ReadyCap Lending Small Business Loan Trust 2023-3 (RCLT 2023-3) | Originated SBA 7(a) loans, Acquired SBA 7(a) loans | July 2023 | Active | 132.0 |
Real Estate Mortgage Investment Conduits (REMICs) | ||||
ReadyCap Commercial Mortgage Trust 2014-1 (RCMT 2014-1) | LMM Originated conventional | September 2014 | Collapsed | 181.7 |
ReadyCap Commercial Mortgage Trust 2015-2 (RCMT 2015-2) | LMM Originated conventional | November 2015 | Collapsed | 218.8 |
ReadyCap Commercial Mortgage Trust 2016-3 (RCMT 2016-3) | LMM Originated conventional | November 2016 | Active | 162.1 |
ReadyCap Commercial Mortgage Trust 2018-4 (RCMT 2018-4) | LMM Originated conventional | March 2018 | Active | 165.0 |
Ready Capital Mortgage Trust 2019-5 (RCMT 2019-5) | LMM Originated conventional | January 2019 | Active | 355.8 |
Ready Capital Mortgage Trust 2019-6 (RCMT 2019-6) | LMM Originated conventional | November 2019 | Active | 430.7 |
Ready Capital Mortgage Trust 2022-7 (RCMT 2022-7) | LMM Originated conventional | April 2022 | Active | 276.8 |
Waterfall Victoria Mortgage Trust 2011-2 (SBC2) | LMM Acquired loans | March 2011 | Collapsed | 97.6 |
Sutherland Commercial Mortgage Trust 2018 (SBC6) | LMM Acquired loans | August 2017 | Active | 154.9 |
Sutherland Commercial Mortgage Trust 2019 (SBC8) | LMM Acquired loans | June 2019 | Active | 306.5 |
Sutherland Commercial Mortgage Trust 2020 (SBC9) | LMM Acquired loans | June 2020 | Collapsed | 203.6 |
Sutherland Commercial Mortgage Trust 2021 (SBC10) | LMM Acquired loans | May 2021 | Active | 232.6 |
Collateralized Loan Obligations (CLOs) | ||||
Ready Capital Mortgage Financing 2017– FL1 | LMM Originated bridge | August 2017 | Collapsed | 198.8 |
Ready Capital Mortgage Financing 2018 – FL2 | LMM Originated bridge | June 2018 | Collapsed | 217.1 |
Ready Capital Mortgage Financing 2019 – FL3 | LMM Originated bridge | April 2019 | Collapsed | 320.2 |
Ready Capital Mortgage Financing 2020 – FL4 | LMM Originated bridge | June 2020 | Collapsed | 405.3 |
Ready Capital Mortgage Financing 2021 – FL5 | LMM Originated bridge | March 2021 | Active | 628.9 |
Ready Capital Mortgage Financing 2021 – FL6 | LMM Originated bridge | August 2021 | Active | 652.5 |
Ready Capital Mortgage Financing 2021 – FL7 | LMM Originated bridge | November 2021 | Active | 927.2 |
Ready Capital Mortgage Financing 2022 – FL8 | LMM Originated bridge | March 2022 | Active | 1,135.0 |
Ready Capital Mortgage Financing 2022 – FL9 | LMM Originated bridge | June 2022 | Active | 754.2 |
Ready Capital Mortgage Financing 2022 – FL10 | LMM Originated bridge | October 2022 | Active | 860.1 |
Ready Capital Mortgage Financing 2023 – FL11 | LMM Originated bridge | February 2023 | Active | 586.0 |
Ready Capital Mortgage Financing 2023 – FL12 | LMM Originated bridge | June 2023 | Active | 648.6 |
Trusts (Non-firm sponsored) | ||||
Freddie Mac Small Balance Mortgage Trust 2016-SB11 | Originated agency multi-family | January 2016 | Active | 110.0 |
Freddie Mac Small Balance Mortgage Trust 2016-SB18 | Originated agency multi-family | July 2016 | Active | 118.0 |
Freddie Mac Small Balance Mortgage Trust 2017-SB33 | Originated agency multi-family | June 2017 | Active | 197.9 |
Freddie Mac Small Balance Mortgage Trust 2018-SB45 | Originated agency multi-family | January 2018 | Active | 362.0 |
Freddie Mac Small Balance Mortgage Trust 2018-SB52 | Originated agency multi-family | September 2018 | Active | 505.0 |
Freddie Mac Small Balance Mortgage Trust 2018-SB56 | Originated agency multi-family | December 2018 | Active | 507.3 |
Key Commercial Mortgage Trust 2020-S3(1) | LMM Originated conventional | September 2020 | Active | 263.2 |
December 31, 2024 | |||||||||
(in thousands) | Total | < 1 year | 1 to 3 years | 3 to 5 years | > 5 years | ||||
Borrowings under credit facilities | $317,045 | $286,532 | $30,513 | $— | $— | ||||
Borrowings under repurchase agreements | 1,718,131 | 623,538 | 1,094,593 | — | — | ||||
Guaranteed loan financing | 691,118 | 226 | 7,181 | 17,565 | 666,146 | ||||
Senior secured notes | 445,000 | — | 350,000 | 95,000 | — | ||||
Corporate debt | 907,134 | 120,000 | 510,884 | 240,000 | 36,250 | ||||
Loan funding commitments | 473,404 | 236,702 | 236,702 | — | — | ||||
Future operating lease commitments | 20,699 | 6,768 | 7,140 | 3,893 | 2,898 | ||||
Total | $4,572,531 | $1,273,766 | $2,237,013 | $356,458 | $705,294 | ||||
For the Year Ended December 31, | |||||
(in thousands, except share data) | 2024 | 2023 | 2022 | ||
Interest income | $896,975 | $945,814 | $663,217 | ||
Interest expense | (696,455) | (716,468) | (392,360) | ||
Net interest income before provision for loan losses | $200,520 | $229,346 | $270,857 | ||
Provision for loan losses | (292,759) | (7,230) | (34,442) | ||
Net interest income after provision for loan losses | $(92,239) | $222,116 | $236,415 | ||
Non-interest income | |||||
Net realized gain (loss) on financial instruments and real estate owned | (54,000) | 65,008 | 53,764 | ||
Net unrealized gain (loss) on financial instruments | (14,991) | 9,718 | 21,890 | ||
Valuation allowance, loans held for sale | (124,878) | — | — | ||
Servicing income, net of amortization and impairment of $21,972, $7,911, and $19,653 | 16,556 | 21,161 | 11,428 | ||
Gain on bargain purchase | 13,859 | 207,972 | — | ||
Income (loss) on unconsolidated joint ventures | 10,886 | (905) | 11,661 | ||
Other income | 50,803 | 105,514 | 56,208 | ||
Total non-interest income (expense) | $(101,765) | $408,468 | $154,951 | ||
Non-interest expense | |||||
Employee compensation and benefits | (82,522) | (81,530) | (74,989) | ||
Allocated employee compensation and benefits from related party | (11,387) | (10,837) | (9,549) | ||
Professional fees | (26,887) | (34,738) | (17,302) | ||
Management fees – related party | (24,862) | (25,103) | (19,295) | ||
Incentive fees – related party | — | (1,791) | (3,105) | ||
Loan servicing expense | (46,656) | (40,811) | (30,814) | ||
Transaction related expenses | (10,118) | (17,764) | (13,633) | ||
Impairment on real estate | (56,503) | (8,638) | (4,033) | ||
Other operating expenses | (63,572) | (50,953) | (43,620) | ||
Total non-interest expense | $(322,507) | $(272,165) | $(216,340) | ||
Income (loss) from continuing operations before benefit (provision) for income taxes | (516,511) | 358,419 | 175,026 | ||
Income tax benefit (provision) | 104,512 | (7,174) | (15,475) | ||
Net income (loss) from continuing operations | $(411,999) | $351,245 | $159,551 | ||
Discontinued operations (refer to Note 9) | |||||
Income (loss) from discontinued operations before benefit (provision) for income taxes | (24,532) | (3,779) | 57,870 | ||
Income tax benefit (provision) | 6,133 | 945 | (14,258) | ||
Net income (loss) from discontinued operations | $(18,399) | $(2,834) | $43,612 | ||
Net income (loss) | $(430,398) | $348,411 | $203,163 | ||
Less: Dividends on preferred stock | 7,996 | 7,997 | 7,996 | ||
Less: Net income attributable to non-controlling interest | 5,357 | 8,960 | 8,900 | ||
Net income (loss) attributable to Ready Capital Corporation | $(443,751) | $331,454 | $186,267 | ||
Earnings per common share from continuing operations - basic | $(2.52) | $2.27 | $1.32 | ||
Earnings per common share from discontinued operations - basic | $(0.11) | $(0.02) | $0.41 | ||
Total earnings per common share - basic | $(2.63) | $2.25 | $1.73 | ||
Earnings per common share from continuing operations - diluted | $(2.52) | $2.24 | $1.28 | ||
Earnings per common share from discontinued operations - diluted | $(0.11) | $(0.02) | $0.37 | ||
Total earnings per common share - diluted | $(2.63) | $2.22 | $1.65 | ||
Weighted-average shares outstanding | |||||
Basic | 169,107,477 | 146,841,594 | 106,878,139 | ||
Diluted | 170,472,273 | 148,567,026 | 117,193,958 | ||
Dividends declared per share of common stock | $1.10 | $1.46 | $1.66 | ||
Year Ended December 31, | |||||
(in thousands) | 2024 | 2023 | 2022 | ||
Net income (loss) | $(430,398) | $348,411 | $203,163 | ||
Other comprehensive income (loss) - net change by component: | |||||
Derivative financial instruments (cash flow hedges) | 871 | (10,533) | (2,133) | ||
Foreign currency translation | (1,461) | 1,974 | (1,616) | ||
Other comprehensive loss | $(590) | $(8,559) | $(3,749) | ||
Comprehensive income (loss) | $(430,988) | $339,852 | $199,414 | ||
Less: Comprehensive income attributable to non-controlling interests | 5,339 | 8,909 | 8,915 | ||
Comprehensive income (loss) attributable to Ready Capital Corporation | $(436,327) | $330,943 | $190,499 | ||
Preferred Series E | Common Stock | Additional Paid- In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Total Ready Capital Corporation Equity | Non-Controlling Interest | Total Stockholders' Equity | ||||||||||||
(in thousands, except share data) | Shares | Amount | Shares | Amount | |||||||||||||||
Balance at December 31, 2021 | 4,600,000 | $111,378 | 75,838,050 | $8 | $1,161,853 | $8,598 | $(5,733) | $1,276,104 | $4,494 | $1,280,598 | |||||||||
Dividend declared: | |||||||||||||||||||
Common Stock ($1.66 per share) | — | — | — | — | — | (189,871) | — | (189,871) | — | (189,871) | |||||||||
OP units | — | — | — | — | — | — | — | — | (2,794) | (2,794) | |||||||||
$1.5625 per Series C preferred share | — | — | — | — | — | (524) | — | (524) | — | (524) | |||||||||
$1.6250 per Series E preferred share | — | — | — | — | — | (7,472) | — | (7,472) | — | (7,472) | |||||||||
Distributions, net | — | — | — | — | — | — | — | — | (14,317) | (14,317) | |||||||||
Shares issued pursuant to merger transactions | — | — | 30,252,764 | 3 | 437,308 | — | — | 437,311 | — | 437,311 | |||||||||
OP units issued pursuant to merger transactions | — | — | — | — | — | — | — | — | 20,745 | 20,745 | |||||||||
Non-controlling interest acquired in merger transaction | — | — | — | — | — | — | — | — | 82,524 | 82,524 | |||||||||
Retirement of OP units | — | — | — | — | — | — | — | — | (2,000) | (2,000) | |||||||||
Equity issuances | — | — | 8,100,926 | — | 124,515 | — | — | 124,515 | — | 124,515 | |||||||||
Offering costs | — | — | — | — | (1,178) | — | — | (1,178) | (10) | (1,188) | |||||||||
Equity component of 2017 convertible note issuance | — | — | — | — | (443) | — | — | (443) | (5) | (448) | |||||||||
Sale of subsidiary interest to non-controlling interest | — | — | — | — | — | — | — | — | 167 | 167 | |||||||||
Stock-based compensation | — | — | 409,642 | — | 6,196 | — | — | 6,196 | — | 6,196 | |||||||||
Share repurchases | — | — | (4,077,741) | — | (42,622) | — | — | (42,622) | — | (42,622) | |||||||||
Reallocation of non-controlling interest | — | — | — | — | (1,555) | — | 128 | (1,427) | 1,427 | — | |||||||||
Net income | — | — | — | — | — | 194,263 | — | 194,263 | 8,900 | 203,163 | |||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | (3,764) | (3,764) | 15 | (3,749) | |||||||||
Balance at December 31, 2022 | 4,600,000 | $111,378 | 110,523,641 | $11 | $1,684,074 | $4,994 | $(9,369) | $1,791,088 | $99,146 | $1,890,234 | |||||||||
Dividend declared: | |||||||||||||||||||
Common Stock ($1.46 per share) | — | — | — | — | — | (212,035) | — | (212,035) | — | (212,035) | |||||||||
OP units | — | — | — | — | — | — | — | — | (2,169) | (2,169) | |||||||||
$1.5625 per Series C preferred share | — | — | — | — | — | (524) | — | (524) | — | (524) | |||||||||
$1.6250 per Series E preferred share | — | — | — | — | — | (7,473) | — | (7,473) | — | (7,473) | |||||||||
Distributions, net | — | — | (503) | — | (6) | — | — | (6) | (187) | (193) | |||||||||
Shares issued pursuant to merger transactions | — | — | 62,229,429 | 6 | 637,223 | — | — | 637,229 | — | 637,229 | |||||||||
Equity issuances | — | — | — | — | 125 | — | — | 125 | — | 125 | |||||||||
Offering costs | — | — | — | — | (226) | — | — | (226) | (2) | (228) | |||||||||
Equity component of 2017 convertible note issuance | — | — | — | — | (191) | — | — | (191) | (3) | (194) | |||||||||
Stock-based compensation | — | — | 1,266,615 | — | 15,622 | — | — | 15,622 | — | 15,622 | |||||||||
Conversion of OP units into common stock | — | — | 263,401 | — | 2,842 | — | — | 2,842 | (2,842) | — | |||||||||
Share repurchases | — | — | (2,006,478) | — | (21,845) | — | — | (21,845) | — | (21,845) | |||||||||
Reallocation of non-controlling interest | — | — | — | — | 4,371 | — | 17 | 4,388 | (4,388) | — | |||||||||
Net income | — | — | — | — | — | 339,451 | — | 339,451 | 8,960 | 348,411 | |||||||||
Other comprehensive loss | — | — | — | — | — | — | (8,508) | (8,508) | (51) | (8,559) | |||||||||
Balance at December 31, 2023 | 4,600,000 | $111,378 | 172,276,105 | $17 | $2,321,989 | $124,413 | $(17,860) | $2,539,937 | $98,464 | $2,638,401 | |||||||||
Dividend declared: | |||||||||||||||||||
Common Stock ($1.10 per share) | — | — | — | — | — | (185,751) | — | (185,751) | — | (185,751) | |||||||||
OP units | — | — | — | — | — | — | — | — | (1,189) | (1,189) | |||||||||
$1.5625 per Series C preferred share | — | — | — | — | — | (524) | — | (524) | — | (524) | |||||||||
$1.6250 per Series E preferred share | — | — | — | — | — | (7,472) | — | (7,472) | — | (7,472) | |||||||||
Contributions, net | — | — | (1,981) | — | (18) | — | — | (18) | 600 | 582 | |||||||||
Stock-based compensation | — | — | 515,183 | — | 6,171 | — | — | 6,171 | — | 6,171 | |||||||||
Conversion of OP units into common stock | — | — | 445,000 | — | 3,812 | — | — | 3,812 | (3,812) | — | |||||||||
Share repurchases | — | — | (10,441,935) | — | (83,488) | — | — | (83,488) | — | (83,488) | |||||||||
Reallocation of non-controlling interest | — | — | — | — | 1,825 | — | (120) | 1,705 | (1,705) | — | |||||||||
Net income (loss) | — | — | — | — | — | (435,755) | — | (435,755) | 5,357 | (430,398) | |||||||||
Other comprehensive loss | — | — | — | — | — | — | (572) | (572) | (18) | (590) | |||||||||
Balance at December 31, 2024 | 4,600,000 | $111,378 | 162,792,372 | $17 | $2,250,291 | $(505,089) | $(18,552) | $1,838,045 | $97,697 | $1,935,742 | |||||||||
For the Year Ended December 31, | |||||
(in thousands) | 2024 | 2023 | 2022 | ||
Cash Flows From Operating Activities: | |||||
Net income (loss) | $(430,398) | $348,411 | $203,163 | ||
Net income (loss) from discontinued operations, net of tax | (18,399) | (2,834) | 43,612 | ||
Net income (loss) from continuing operations | (411,999) | 351,245 | 159,551 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Amortization of premiums, discounts, and debt issuance costs, net | 52,541 | 66,526 | 2,433 | ||
Stock-based compensation | 8,119 | 7,550 | 7,495 | ||
Provision for loan losses | 292,759 | 7,230 | 34,442 | ||
Impairment loss on real estate owned, held for sale | 56,503 | 8,638 | 4,033 | ||
Repair and denial reserve (recovery) | 385 | (3,872) | (8,879) | ||
Paid-in-kind accrued interest | (77,573) | (42,148) | — | ||
Provision for loan losses on purchased future receivables | 2,118 | 8,989 | 3,357 | ||
Loans, held for sale, net | 326,035 | 18,062 | 192,094 | ||
Valuation allowance, loans held for sale | 124,878 | — | — | ||
Net income (loss) of unconsolidated joint ventures, net of distributions | (7,702) | 2,933 | (9,328) | ||
Realized (gains) losses, net | 53,900 | (66,357) | (52,283) | ||
Unrealized (gains) losses, net | 15,086 | (8,867) | (23,484) | ||
Bargain purchase gain | (13,859) | (207,972) | — | ||
Changes in operating assets and liabilities: | |||||
Derivative instruments | 5,234 | 12,369 | 56,898 | ||
Assets of consolidated VIEs (excluding loans, net), accrued interest and due from servicers | (60,828) | (28,027) | (32,056) | ||
Receivable from third parties | 1,948 | (21,313) | 14,106 | ||
Other assets | (58,932) | (59,969) | (7,140) | ||
Accounts payable and other accrued liabilities | (22,214) | 13,978 | (67,504) | ||
Net cash provided by operating activities from continuing operations | $286,399 | $58,995 | $273,735 | ||
Net cash provided by (used for) operating activities from discontinued operations | (11,584) | (7,865) | 85,413 | ||
Net cash provided by operating activities | $274,815 | $51,130 | $359,148 | ||
Cash Flows From Investing Activities: | |||||
Origination of loans | (826,430) | (1,005,137) | (3,303,318) | ||
Purchase of loans | — | — | (669,137) | ||
Proceeds from disposition and principal payment of loans | 2,274,117 | 1,940,986 | 2,205,329 | ||
Funding of investments held to maturity | — | (140) | (5,848) | ||
Proceeds from principal payments of investments held to maturity | — | — | 27,006 | ||
Proceeds from sale and principal payment of mortgage-backed securities | — | 8,059 | 61,504 | ||
Funding of real estate, held for sale | (1,408) | (12,463) | (10,972) | ||
Proceeds from sale of real estate, held for sale | 67,240 | 78,001 | 7,519 | ||
Investment in unconsolidated joint ventures | (33,239) | (25,186) | (122,391) | ||
Distributions in excess of cumulative earnings from unconsolidated joint ventures | 13,593 | 7,573 | 154,226 | ||
Payment of liabilities under participation agreements | (14,535) | (9,051) | (19,015) | ||
Net cash provided by (used for) business acquisitions | (44,366) | 38,710 | 123,566 | ||
Net cash provided by (used for) investing activities from continuing operations | $1,434,972 | $1,021,352 | $(1,551,531) | ||
Net cash provided by (used for) investing activities from discontinued operations | 100,045 | (1,908) | (4,897) | ||
Net cash provided by (used for) investing activities | $1,535,017 | $1,019,444 | $(1,556,428) | ||
Cash Flows From Financing Activities: | |||||
Proceeds from secured borrowings | 2,102,388 | 4,127,416 | 7,770,435 | ||
Repayment of secured borrowings | (2,166,562) | (4,692,079) | (7,413,701) | ||
Repayment of the Paycheck Protection Program Liquidity Facility borrowings | (17,166) | (164,975) | (740,494) | ||
Proceeds from issuance of securitized debt obligations of consolidated VIEs | — | 1,120,815 | 2,387,288 | ||
Repayment of securitized debt obligations of consolidated VIEs | (1,520,669) | (976,790) | (675,843) | ||
Proceeds from corporate debt | 125,905 | — | 220,146 | ||
Proceeds from senior secured note | 92,119 | — | — | ||
Repayment of convertible note | — | (115,000) | — | ||
Repayment of guaranteed loan financing | (153,422) | (154,441) | (109,279) | ||
Payment of deferred financing costs | (12,178) | (32,210) | (43,937) | ||
Payment of contingent consideration | — | (9,000) | (9,000) | ||
Proceeds from issuance of equity, net of issuance costs | — | 108 | 123,490 | ||
Common stock repurchased | (82,250) | (18,108) | (36,969) | ||
Settlement of share-based awards in satisfaction of withholding tax requirements | (1,238) | (3,948) | (5,817) | ||
Dividend payments | (206,057) | (215,089) | (187,832) | ||
Distributions, net | (18) | (6) | (14,317) | ||
Net cash provided by (used for) financing activities from continuing operations | $(1,839,148) | $(1,133,307) | $1,264,170 | ||
Net cash provided by (used for) financing activities from discontinued operations | (40,632) | 48,220 | (93,191) | ||
Net cash provided by (used for) financing activities | $(1,879,780) | $(1,085,087) | $1,170,979 | ||
Net decrease in cash, cash equivalents, and restricted cash including cash classified within assets held for sale | (69,948) | (14,513) | (26,301) | ||
Less: Net increase (decrease) in cash and cash equivalents within assets held for sale | 9,784 | (3,415) | (23,675) | ||
Net decrease in cash, cash equivalents, and restricted cash | (79,732) | (11,098) | (2,626) | ||
Cash, cash equivalents, and restricted cash beginning balance | 262,506 | 273,604 | 276,230 | ||
Cash, cash equivalents, and restricted cash ending balance | $182,774 | $262,506 | $273,604 | ||
For the Year Ended December 31, | |||||
(in thousands) | 2024 | 2023 | 2022 | ||
Supplemental disclosures: | |||||
Cash paid for interest | $659,264 | $661,169 | $355,230 | ||
Cash paid (received) for income taxes | $(11,928) | $2,008 | $29,164 | ||
Non-cash investing activities | |||||
Loans transferred from loans, held for sale to loans, net | $13,173 | $68,661 | $3,987 | ||
Loans transferred from loans, net to loans, held for sale | $729,016 | $3,641 | $3,093 | ||
Consolidation of assets in securitization trusts | $— | $689,079 | $— | ||
Loans transferred to real estate owned, held for sale | $86,990 | $56,900 | $1,598 | ||
Investments held to maturity transferred to real estate owned | $— | $— | $29,904 | ||
Contingent consideration in connection with acquisitions | $573 | $— | $25,000 | ||
Non-cash financing activities | |||||
Shares and OP units issued in connection with merger transactions | $— | $637,229 | $458,056 | ||
Retirement of OP units | $— | $— | $2,000 | ||
Consolidation of borrowings in securitization trusts | $— | $689,079 | $— | ||
Conversion of OP units to common stock | $3,812 | $2,842 | $— | ||
Cash, cash equivalents, and restricted cash reconciliation | |||||
Cash and cash equivalents | $143,803 | $138,532 | $147,399 | ||
Restricted cash | 30,560 | 30,063 | 48,146 | ||
Cash, cash equivalents, and restricted cash in assets of consolidated VIEs | 8,411 | 93,911 | 78,059 | ||
Cash, cash equivalents, and restricted cash ending balance | $182,774 | $262,506 | $273,604 | ||
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
Assets | |||||
Cash and cash equivalents | $29,209 | $— | $29,209 | ||
Loans, net | 8,167 | — | 8,167 | ||
Investment in unconsolidated joint ventures | 891 | — | 891 | ||
Servicing rights | 5,388 | — | 5,388 | ||
Other assets: | |||||
Deferred tax asset | 32,186 | — | 32,186 | ||
Intangible assets | 10,052 | — | 10,052 | ||
Other | 4,558 | — | 4,558 | ||
Total assets acquired | $90,451 | $— | $90,451 | ||
Liabilities | |||||
Secured borrowings | 2,022 | — | 2,022 | ||
Accounts payable and other accrued liabilities | 14,952 | — | 14,952 | ||
Total liabilities assumed | $16,974 | $— | $16,974 | ||
Net assets acquired | $73,477 | $— | $73,477 |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
Fair value of net assets acquired | $73,477 | $— | $73,477 | ||
Consideration transferred | 41,312 | — | 41,312 | ||
Bargain purchase gain | $32,165 | $— | $32,165 |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
Assets | |||||
Cash and cash equivalents | $83 | $83 | |||
Restricted cash | 721 | (200) | 521 | ||
Servicing rights | 16,304 | 612 | 16,916 | ||
Other assets: | |||||
Intangible assets | 10,400 | 900 | 11,300 | ||
Other | 303 | — | 303 | ||
Total assets acquired | $27,811 | $1,312 | $29,123 | ||
Liabilities | |||||
Accounts payable and other accrued liabilities | 978 | 1,722 | 2,700 | ||
Total liabilities assumed | $978 | $1,722 | $2,700 | ||
Non-controlling interests | (600) | — | (600) | ||
Net assets acquired, net of non-controlling interests | $26,233 | $(410) | $25,823 |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
Fair value of net assets acquired | $26,233 | $(410) | $25,823 | ||
Cash paid | 32,868 | — | 32,868 | ||
Contingent consideration | $3,926 | $— | $3,926 | ||
Total consideration transferred | $36,794 | $— | $36,794 | ||
Goodwill | $10,561 | $410 | $10,971 |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
Assets | |||||
Cash and cash equivalents | $38,710 | $— | $38,710 | ||
Loans, net | 772,954 | (8,587) | 764,367 | ||
Real estate owned, held for sale | 158,911 | (23,671) | 135,240 | ||
Other assets | 17,107 | (7,151) | 9,956 | ||
Total assets acquired | $987,682 | $(39,409) | $948,273 | ||
Liabilities | |||||
Corporate debt, net | 98,028 | — | 98,028 | ||
Accounts payable and other accrued liabilities | 22,531 | 819 | 23,350 | ||
Total liabilities assumed | $120,559 | $819 | $121,378 | ||
Net assets acquired | $867,123 | $(40,228) | $826,895 |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
Fair value of net assets acquired | $867,123 | $(40,228) | $826,895 | ||
Consideration transferred based on the value of common stock issued | 637,229 | — | 637,229 | ||
Bargain purchase gain | $229,894 | $(40,228) | $189,666 |
December 31, 2024 | December 31, 2023 | ||||||
(in thousands) | Carrying Value | UPB | Carrying Value | UPB | |||
Loans | |||||||
Bridge | $1,246,725 | $1,309,683 | $1,422,091 | $1,448,281 | |||
Fixed rate | 197,162 | 197,272 | 239,586 | 241,674 | |||
Construction | 733,276 | 874,558 | 1,176,913 | 1,212,526 | |||
Freddie Mac | — | — | 9,500 | 9,719 | |||
SBA - 7(a) | 1,043,120 | 1,075,845 | 978,543 | 1,003,323 | |||
Other | 157,866 | 177,155 | 193,527 | 198,499 | |||
Total Loans, net | $3,378,149 | $3,634,513 | $4,020,160 | $4,114,022 | |||
Loans in consolidated VIEs | |||||||
Bridge | 3,854,982 | 3,970,084 | 5,356,689 | 5,389,535 | |||
Fixed rate | 685,505 | 688,347 | 784,360 | 790,967 | |||
SBA - 7(a) | 178,498 | 189,737 | 213,456 | 227,636 | |||
Other | 211,076 | 212,020 | 256,820 | 258,029 | |||
Total Loans, net, in consolidated VIEs | $4,930,061 | $5,060,188 | $6,611,325 | $6,666,167 | |||
Loans, held for sale | |||||||
Bridge | 58,703 | 134,065 | — | — | |||
Fixed rate | 2,750 | 6,056 | — | — | |||
Construction | 54,392 | 77,487 | — | — | |||
Freddie Mac | 36,248 | 35,931 | 20,955 | 20,729 | |||
SBA - 7(a) | 87,825 | 81,524 | 59,421 | 55,769 | |||
Other | 1,708 | 1,817 | 1,223 | 1,297 | |||
Total Loans, held for sale | $241,626 | $336,880 | $81,599 | $77,795 | |||
Total | $8,549,836 | $9,031,581 | $10,713,084 | $10,857,984 | |||
Carrying Value by Year of Origination | |||||||||||||||
(in thousands) | UPB | 2024 | 2023 | 2022 | 2021 | 2020 | Pre 2020 | Total | |||||||
December 31, 2024 | |||||||||||||||
Bridge | $5,279,767 | $321,439 | $244,283 | $2,083,723 | $2,270,504 | $105,279 | $76,479 | $5,101,707 | |||||||
Fixed rate | 885,619 | — | — | 109,733 | 180,209 | 86,013 | 506,712 | 882,667 | |||||||
Construction | 874,558 | 9,233 | 26,925 | 162,309 | 83,287 | 144 | 451,378 | 733,276 | |||||||
SBA - 7(a) | 1,265,582 | 235,374 | 138,670 | 322,007 | 237,105 | 94,730 | 193,732 | 1,221,618 | |||||||
Other | 389,175 | 14,769 | 2,881 | 4,225 | 685 | 9,205 | 337,177 | 368,942 | |||||||
Total Loans, net | $8,694,701 | $580,815 | $412,759 | $2,681,997 | $2,771,790 | $295,371 | $1,565,478 | $8,308,210 | |||||||
Gross write-offs | $28 | $1,440 | $1,710 | $3,022 | $617 | $7,776 | $14,593 | ||||||||
UPB | 2023 | 2022 | 2021 | 2020 | 2019 | Pre 2019 | Total | ||||||||
December 31, 2023 | |||||||||||||||
Bridge | $6,837,816 | $322,762 | $2,951,573 | $2,943,874 | $284,485 | $164,800 | $111,286 | $6,778,780 | |||||||
Fixed rate | 1,032,641 | 4,004 | 109,741 | 205,895 | 88,709 | 315,905 | 299,692 | 1,023,946 | |||||||
Construction | 1,212,526 | 105,865 | 252,910 | 182,618 | 73,353 | 433,425 | 128,742 | 1,176,913 | |||||||
Freddie Mac | 9,719 | — | — | 3,833 | 5,667 | — | — | 9,500 | |||||||
SBA - 7(a) | 1,230,959 | 146,158 | 349,628 | 316,711 | 114,383 | 75,725 | 189,394 | 1,191,999 | |||||||
Other | 456,528 | 2,556 | 4,501 | 18,130 | 8,703 | 43,683 | 372,774 | 450,347 | |||||||
Total Loans, net | $10,780,189 | $581,345 | $3,668,353 | $3,671,061 | $575,300 | $1,033,538 | $1,101,888 | $10,631,485 | |||||||
Gross write-offs | $100 | $950 | $3,236 | $258 | $360 | $25,731 | $30,635 | ||||||||
Carrying Value by Year of Origination | |||||||||||||||
(in thousands) | UPB | 2024 | 2023 | 2022 | 2021 | 2020 | Pre 2020 | Total | |||||||
December 31, 2024 | |||||||||||||||
Current | $8,094,859 | $575,781 | $392,201 | $2,488,252 | $2,566,736 | $289,352 | $1,475,325 | $7,787,647 | |||||||
30 - 59 days past due | 148,612 | 3,666 | 1,676 | 92,516 | 26,385 | 734 | 6,311 | 131,288 | |||||||
60+ days past due | 451,230 | 1,368 | 18,882 | 101,229 | 178,669 | 5,285 | 83,842 | 389,275 | |||||||
Total Loans, net | $8,694,701 | $580,815 | $412,759 | $2,681,997 | $2,771,790 | $295,371 | $1,565,478 | $8,308,210 | |||||||
UPB | 2023 | 2022 | 2021 | 2020 | 2019 | Pre 2019 | Total | ||||||||
December 31, 2023 | |||||||||||||||
Current | $9,632,399 | $565,544 | $3,340,903 | $3,400,336 | $488,508 | $877,362 | $872,070 | $9,544,723 | |||||||
30 - 59 days past due | 172,355 | 551 | 59,879 | 80,545 | 507 | 22,557 | 7,101 | 171,140 | |||||||
60+ days past due | 975,435 | 15,250 | 267,571 | 190,180 | 86,285 | 133,619 | 222,717 | 915,622 | |||||||
Total Loans, net | $10,780,189 | $581,345 | $3,668,353 | $3,671,061 | $575,300 | $1,033,538 | $1,101,888 | $10,631,485 | |||||||
(in thousands) | Current | 30 - 59 days past due | 60+ days past due | Total | Non-Accrual Loans | 90+ days past due and Accruing | |||||
December 31, 2024 | |||||||||||
Bridge | $4,732,393 | $93,078 | $276,236 | $5,101,707 | $366,890 | $88,396 | |||||
Fixed rate | 840,951 | 8,421 | 33,295 | 882,667 | 33,295 | — | |||||
Construction | 691,655 | — | 41,621 | 733,276 | 60,018 | — | |||||
SBA - 7(a) | 1,160,844 | 27,124 | 33,650 | 1,221,618 | 64,687 | — | |||||
Other | 361,804 | 2,665 | 4,473 | 368,942 | 1,871 | 973 | |||||
Total Loans, net | $7,787,647 | $131,288 | $389,275 | $8,308,210 | $526,761 | $89,369 | |||||
Percentage of loans outstanding | 93.7% | 1.6% | 4.7% | 100% | 6.3% | 1.1% | |||||
December 31, 2023 | |||||||||||
Bridge | $6,169,893 | $87,047 | $521,840 | $6,778,780 | $338,982 | $— | |||||
Fixed rate | 978,897 | 21,772 | 23,277 | 1,023,946 | 13,928 | — | |||||
Construction | 778,708 | 49,626 | 348,579 | 1,176,913 | 241,751 | 82,781 | |||||
Freddie Mac | 9,500 | — | — | 9,500 | 2,674 | — | |||||
SBA - 7(a) | 1,166,695 | 8,518 | 16,786 | 1,191,999 | 30,549 | 40 | |||||
Other | 441,030 | 4,177 | 5,140 | 450,347 | 6,005 | — | |||||
Total Loans, net | $9,544,723 | $171,140 | $915,622 | $10,631,485 | $633,889 | $82,821 | |||||
Percentage of loans outstanding | 89.8% | 1.6% | 8.6% | 100% | 6.0% | 0.8% |
Collateral Concentration (% of UPB) | December 31, 2024 | December 31, 2023 | |
Lodging | 20.9% | 23.4% | |
Gasoline Service Stations | 12.0 | 12.8 | |
Eating Places | 6.5 | 6.2 | |
Child Day Care Services | 5.7 | 5.6 | |
Offices of Physicians | 3.7 | 4.1 | |
General Freight Trucking, Local | 3.0 | 3.5 | |
Grocery Stores | 2.3 | 2.3 | |
Coin-Operated Laundries and Drycleaners | 1.4 | 1.9 | |
Car Washes | 1.1 | 1.0 | |
Funeral Service & Crematories | 1.0 | 1.4 | |
Other | 42.4 | 37.8 | |
Total | 100.0% | 100.0% |
(in thousands) | Bridge | Fixed rate | Construction | SBA - 7(a) | Other | Total |
Year Ended December 31, 2024 | ||||||
Beginning balance | $36,241 | $13,598 | $30,870 | $17,867 | $3,029 | $101,605 |
Provision for (recoveries of) loan losses | 134,300 | (4,364) | 114,069 | 8,959 | (809) | 252,155 |
Charge-offs and sales | (96) | (4,120) | (4,800) | (5,511) | (66) | (14,593) |
Recoveries | 772 | 772 | ||||
Ending balance | $170,445 | $5,114 | $140,139 | $22,087 | $2,154 | $339,939 |
Year Ended December 31, 2023 | ||||||
Beginning balance | $49,905 | $6,531 | $17,334 | $14,299 | $2,450 | $90,519 |
Provision for (recoveries of) loan losses | (13,045) | 8,571 | 6,363 | 5,598 | 1,185 | 8,672 |
PCD(1) | — | — | 32,862 | — | — | 32,862 |
Charge-offs and sales | (619) | (1,504) | (25,689) | (2,217) | (606) | (30,635) |
Recoveries | — | — | — | 187 | — | 187 |
Ending balance | $36,241 | $13,598 | $30,870 | $17,867 | $3,029 | $101,605 |
(in thousands) | December 31, 2024 | December 31, 2023 | |
Non-accrual loans | |||
With an allowance | $509,752 | $607,180 | |
Without an allowance | 17,009 | 26,709 | |
Total recorded carrying value of non-accrual loans | $526,761 | $633,889 | |
Allowance for loan losses related to non-accrual loans | $(125,218) | $(50,796) | |
UPB of non-accrual loans | $654,526 | $688,282 | |
Interest income on non-accrual loans for the year ended | $47,192 | $12,282 |
(in thousands) | Preliminary Purchase Price Allocation | Measurement Period Adjustments | Updated Purchase Price Allocation | ||
UPB | $244,932 | $38,750 | $283,682 | ||
Allowance for credit losses | (27,617) | (5,245) | (32,862) | ||
Non-credit discount | (6,035) | (3,342) | (9,377) | ||
Purchase price of loans classified as PCD | $211,280 | $30,163 | $241,443 |
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||
December 31, 2024 | |||||||
Assets: | |||||||
Money market funds (1) | $86,637 | $— | $— | $86,637 | |||
Loans, net | — | — | 3,533 | 3,533 | |||
Loans, held for sale | — | 125,781 | 2,750 | 128,531 | |||
PPP loans (2) | — | 1,340 | — | 1,340 | |||
MBS | — | 31,006 | — | 31,006 | |||
Derivative instruments | — | 7,963 | — | 7,963 | |||
Investment in unconsolidated joint ventures | — | — | 6,577 | 6,577 | |||
Preferred equity investment (3) | — | — | 92,810 | 92,810 | |||
Total assets | $86,637 | $166,090 | $105,670 | $358,397 | |||
Liabilities: | |||||||
Derivative instruments | — | 352 | — | 352 | |||
Contingent consideration | — | — | 573 | 573 | |||
Total liabilities | $— | $352 | $573 | $925 | |||
December 31, 2023 | |||||||
Assets: | |||||||
Money market funds (1) | $100,238 | $— | $— | $100,238 | |||
Loans, net | — | — | 9,348 | 9,348 | |||
Loans, held for sale | — | 81,599 | — | 81,599 | |||
PPP loans (2) | — | 165 | — | 165 | |||
MBS | — | 27,436 | — | 27,436 | |||
Derivative instruments | — | 2,404 | — | 2,404 | |||
Investment in unconsolidated joint ventures | — | — | 7,360 | 7,360 | |||
Preferred equity investment (3) | — | — | 108,423 | 108,423 | |||
Total assets | $100,238 | $111,604 | $125,131 | $336,973 | |||
Liabilities: | |||||||
Derivative instruments | — | 212 | — | 212 | |||
Contingent consideration | — | — | 7,628 | 7,628 | |||
Total liabilities | $— | $212 | $7,628 | $7,840 |
(in thousands) | Fair Value | Predominant Valuation Technique (1) | Type | Range | Weighted Average | ||||
December 31, 2024 | |||||||||
Assets: | |||||||||
Investment in unconsolidated joint ventures | $6,577 | Income Approach | Discount rate | 9.0% | 9.0% | ||||
Preferred equity investment | $92,810 | Income Approach | Discount rate | 12.0% | 12.0% | ||||
Total assets | $99,387 | ||||||||
Liabilities: | |||||||||
Contingent consideration- Madison One | 573 | Monte Carlo Simulation Model | Net income volatility | Risk- adjusted discount rate | 66.0% | 44.3% | 66.0% | 44.3% | ||||
Total liabilities | $573 | ||||||||
December 31, 2023 | |||||||||
Assets: | |||||||||
Investment in unconsolidated joint ventures | $7,360 | Income Approach | Discount rate | 9.0% | 9.0% | ||||
Preferred equity investment | $108,423 | Income Approach | Discount rate | 10.0% | 10.0% | ||||
Total assets | $115,783 | ||||||||
Liabilities: | |||||||||
Contingent consideration- Mosaic CER dividends | $1,591 | Monte Carlo Simulation Model | Equity volatility | Risk-free rate of return | Discount rate | 30.0% |4.7% | 11.5% | 30.0% | 4.7% | 11.5% | ||||
Contingent consideration- Mosaic CER units | $6,037 | Income approach and PWERM Model | Revaluation discount rate | Discount rate | 12.0% | 11.5% | 12.0% | 11.5% | ||||
Total liabilities | $7,628 |
Year Ended December 31, | |||
(in thousands) | 2024 | 2023 | |
Assets: | |||
Loans, net | |||
Beginning balance | $9,348 | $9,786 | |
Purchases or Originations | 383 | — | |
Unrealized gains (losses), net | (1,021) | (438) | |
Mergers and acquisitions (1) | 4,851 | — | |
Transfer to (from) Level 3 | (10,028) | — | |
Ending balance | $3,533 | $9,348 | |
Loans, held for sale | |||
Beginning balance | — | 60,924 | |
Sales / Principal payments | (4,009) | (22) | |
Unrealized gains (losses), net | (2,386) | (3,870) | |
Transfer to loans, held for investment | $— | (57,032) | |
Transfer to (from) Level 3 | $9,145 | $— | |
Ending balance | $2,750 | $— | |
Investment in unconsolidated joint ventures | |||
Beginning balance | 7,360 | 8,094 | |
Unrealized gains (losses), net | (783) | (734) | |
Ending balance | $6,577 | $7,360 | |
Preferred equity investment (2) | |||
Beginning balance | 108,423 | 108,423 | |
Unrealized gains (losses), net | (15,613) | — | |
Ending balance | $92,810 | $108,423 | |
Total assets | |||
Beginning balance | 125,131 | 187,227 | |
Purchases or Originations | 383 | — | |
Sales / Principal payments | (4,009) | (22) | |
Unrealized gains (losses), net | (19,803) | (5,042) | |
Mergers and acquisitions (1) | 4,851 | — | |
Transfer to loans, held for investment | — | (57,032) | |
Transfer to (from) Level 3 | (883) | — | |
Ending balance | $105,670 | $125,131 | |
Liabilities: | |||
Contingent consideration | |||
Beginning balance | 7,628 | 28,500 | |
Sales / Principal payments | — | (9,000) | |
Realized (gains) losses, net | (9,109) | — | |
Unrealized (gains) losses, net | (1,872) | (11,872) | |
Mergers and acquisitions (3) | $3,926 | $— | |
Ending balance | $573 | $7,628 | |
December 31, 2024 | December 31, 2023 | ||||||
(in thousands) | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||
Assets: | |||||||
Loans, net | $8,304,677 | $8,426,700 | $10,622,137 | $10,380,893 | |||
Loans, held for sale | 113,095 | 113,095 | — | — | |||
Servicing rights | 128,440 | 141,513 | 102,837 | 113,715 | |||
Total assets | $8,546,212 | $8,681,308 | $10,724,974 | $10,494,608 | |||
Liabilities: | |||||||
Secured borrowings | 2,035,176 | 2,035,176 | 2,102,075 | 2,102,075 | |||
Securitized debt obligations of consolidated VIEs, net | 3,580,513 | 3,532,765 | 5,068,453 | 5,022,057 | |||
Senior secured notes, net | 437,847 | 421,427 | 345,127 | 317,239 | |||
Guaranteed loan financing | 691,118 | 724,747 | 844,540 | 889,744 | |||
Corporate debt, net | 895,265 | 865,380 | 764,908 | 731,104 | |||
Total liabilities | $7,639,919 | $7,579,495 | $9,125,103 | $9,062,219 | |||
December 31, 2024 | December 31, 2023 | ||||||||||
Range of input values | Weighted Average | Range of input values | Weighted Average | ||||||||
SBA | |||||||||||
Forward prepayment rate | 9.9% | - | 21.6% | 10.6% | 0.0% | - | 4.5% | 4.4% | |||
Forward default rate | 0.0% | - | 6.8% | 6.6% | 0.0% | - | 7.3% | 7.0% | |||
Discount rate | 11.9% | - | 21.8% | 12.2% | 14.4% | - | 22.9% | 14.6% | |||
Servicing expense | 0.4% | - | 0.4% | 0.4% | 0.4% | - | 0.4% | 0.4% | |||
Multi-family | |||||||||||
Forward prepayment rate | 0.0% | - | 7.3% | 6.7% | 0.0% | - | 6.5% | 5.4% | |||
Forward default rate | 0.0% | - | 1.0% | 0.6% | 0.0% | - | 0.9% | 0.6% | |||
Discount rate | 5.5% | - | 6.0% | 5.8% | 6.0% | - | 6.0% | 6.0% | |||
Servicing expense | 0.0% | - | 0.8% | 0.1% | 0.0% | - | 0.8% | 0.1% | |||
USDA (1) | |||||||||||
Forward prepayment rate | 12.2% | - | 12.2% | 12.2% | N/A | N/A | N/A | ||||
Discount rate | 4.9% | - | 5.2% | 5.1% | N/A | N/A | N/A | ||||
Servicing expense | 0.1% | - | 0.3% | 0.2% | N/A | N/A | N/A | ||||
Small business loans (2) | |||||||||||
Discount rate | 6.0% | - | 6.0% | 6.0% | N/A | N/A | N/A | ||||
Servicing expense | 0.5% | - | 0.5% | 0.5% | N/A | N/A | N/A | ||||
(in thousands) | December 31, 2024 | December 31, 2023 | |
Assets | |||
Cash and cash equivalents | $24,328 | $13,694 | |
Restricted cash | 5,464 | 6,314 | |
Loans, net | 222 | 2,778 | |
Loans, held for sale | 158,152 | 133,204 | |
Loans eligible for repurchase from Ginnie Mae | 14,107 | 86,872 | |
Derivative instruments | — | 847 | |
Servicing rights(1) | 55,582 | 188,855 | |
Other assets | 29,740 | 22,032 | |
Total Assets | $287,595 | $454,596 | |
Liabilities | |||
Secured borrowings | $190,333 | $230,965 | |
Liabilities for loans eligible for repurchase from Ginnie Mae | 14,107 | 86,872 | |
Derivative instruments | 1,443 | 1,321 | |
Accounts payable and other accrued liabilities | 22,852 | 13,999 | |
Total Liabilities | $228,735 | $333,157 |
For the Year Ended December 31, | |||||
(in thousands) | 2024 | 2023 | 2022 | ||
Interest income | $9,432 | $7,148 | $7,953 | ||
Interest expense | (11,502) | (7,655) | (8,414) | ||
Net interest expense | $(2,070) | $(507) | $(461) | ||
Non-interest income | |||||
Residential mortgage banking activities | 35,966 | 33,439 | 23,973 | ||
Net realized gain (loss) on financial instruments | 24,602 | — | — | ||
Net unrealized gain (loss) on financial instruments | (40,394) | (15,426) | 46,063 | ||
Servicing income, net of amortization and impairment | 30,411 | 37,181 | 34,497 | ||
Other income | 15 | 47 | 38 | ||
Total non-interest income | $50,600 | $55,241 | $104,571 | ||
Non-interest expense | |||||
Employee compensation and benefits | (20,531) | (19,177) | (24,237) | ||
Variable expenses on residential mortgage banking activities | (32,139) | (21,822) | (4,340) | ||
Professional fees | (1,588) | (641) | (791) | ||
Loan servicing expense | (9,567) | (10,130) | (9,222) | ||
Other operating expenses | (9,237) | (6,743) | (7,650) | ||
Total non-interest expense | $(73,062) | $(58,513) | $(46,240) | ||
Income (loss) from discontinued operations before provision for income taxes | (24,532) | (3,779) | 57,870 | ||
Income tax (provision) benefit | 6,133 | 945 | (14,258) | ||
Net income (loss) from discontinued operations | $(18,399) | $(2,834) | $43,612 | ||
Pledged Assets | Carrying Value December 31, | |||||||||
Lenders (1) | Asset Class | Current Maturity (2) | Pricing (3) | Facility Size | Carrying Value | 2024 | 2023 | |||
3 | SBA loans | March 2025-November 2025 | SOFR + 2.84% Prime - 0.82% | $285,000 | $315,507 | $250,601 | $117,115 | |||
1 | LMM loans - USD | February 2026 | SOFR + 1.35% | 80,000 | 36,249 | 35,931 | 20,729 | |||
1 | LMM loans - Non-USD (4) | January 2027 | EURIBOR + 3.00% | 208,312 | 35,936 | 30,513 | 12,079 | |||
Total borrowings under credit facilities and other financing agreements | $573,312 | $387,692 | $317,045 | $149,923 | ||||||
9 | LMM loans | March 2025 - November 2026 | SOFR + 3.17% | 3,806,000 | 2,245,847 | 1,482,085 | 1,677,885 | |||
1 | LMM loans - Non-USD (4) | Matured | EURIBOR + 3.00% | — | — | — | 45,031 | |||
7 | MBS | January 2025 - June 2025 | 7.59% | 236,046 | 458,346 | 236,046 | 229,236 | |||
Total borrowings under repurchase agreements | $4,042,046 | $2,704,193 | $1,718,131 | $1,952,152 | ||||||
Total secured borrowings | $4,615,358 | $3,091,885 | $2,035,176 | $2,102,075 | ||||||
Pledged Assets Carrying Value | |||
(in thousands) | December 31, 2024 | December 31, 2023 | |
Collateral pledged - borrowings under credit facilities and other financing agreements | |||
Loans, held for sale | $36,249 | $43,365 | |
Loans, net | 351,443 | 169,147 | |
Total | $387,692 | $212,512 | |
Collateral pledged - borrowings under repurchase agreements | |||
Loans, net | 2,036,311 | 2,560,725 | |
MBS | 21,729 | 20,770 | |
Retained interest in assets of consolidated VIEs | 436,617 | 356,772 | |
Loans, held for sale | 81,708 | 9,349 | |
Real estate acquired in settlement of loans | 127,828 | 160,455 | |
Total | $2,704,193 | $3,108,071 | |
Total collateral pledged on secured borrowings | $3,091,885 | $3,320,583 | |
(in thousands) | Coupon Rate | Maturity Date | December 31, 2024 | ||
Senior secured notes principal amount(1) | 4.50% | 10/20/2026 | $350,000 | ||
Term loan principal amount(2) | SOFR + 5.50% | 4/12/2029 | 95,000 | ||
Unamortized discount - Senior secured notes | (2,456) | ||||
Unamortized deferred financing costs - Term loan | (4,697) | ||||
Total senior secured notes, net | $437,847 | ||||
Corporate debt principal amount(3) | 5.50% | 12/30/2028 | 110,000 | ||
Corporate debt principal amount(4) | 6.20% | 7/30/2026 | 104,614 | ||
Corporate debt principal amount(4) | 5.75% | 2/15/2026 | 206,270 | ||
Corporate debt principal amount(5) | 6.125% | 4/30/2025 | 120,000 | ||
Corporate debt principal amount(6) | 7.375% | 7/31/2027 | 100,000 | ||
Corporate debt principal amount(7) | 5.00% | 11/15/2026 | 100,000 | ||
Corporate debt principal amount(8) | 9.00% | 12/15/2029 | 130,000 | ||
Unamortized discount - corporate debt | (8,318) | ||||
Unamortized deferred financing costs - corporate debt | (3,551) | ||||
Junior subordinated notes principal amount(9) | SOFR + 3.10% | 3/30/2035 | 15,000 | ||
Junior subordinated notes principal amount(10) | SOFR + 3.10% | 4/30/2035 | 21,250 | ||
Total corporate debt, net | $895,265 | ||||
Total carrying amount of debt | $1,333,112 |
(in thousands) | December 31, 2024 |
2025 | $120,000 |
2026 | 760,884 |
2027 | 100,000 |
2028 | 110,000 |
2029 | 225,000 |
Thereafter | 36,250 |
Total contractual amounts | $1,352,134 |
Unamortized deferred financing costs, discounts, and premiums, net | (19,022) |
Total carrying amount of debt | $1,333,112 |
(in thousands) | Weighted Average Interest Rate | Range of Interest Rates | Range of Maturities (Years) | Ending Balance | |||
December 31, 2024 | 8.69% | 1.45-10.00% | 2025-2048 | $691,118 | |||
December 31, 2023 | 9.17% | 1.45-10.50% | 2023-2048 | $844,540 |
(in thousands) | December 31, 2024 | December 31, 2023 | |
Assets: | |||
Cash and cash equivalents | $— | $671 | |
Restricted cash | 8,411 | 93,240 | |
Loans, net | 4,930,061 | 6,611,325 | |
Preferred equity investment (1) | 92,810 | 108,423 | |
Accrued interest (1) | 140,607 | 80,098 | |
Other assets | 3,406 | 3,388 | |
Total assets | $5,175,295 | $6,897,145 | |
Liabilities: | |||
Securitized debt obligations of consolidated VIEs, net | 3,580,513 | 5,068,453 | |
Due to third parties (2) | 4,116 | 2,944 | |
Accounts payable and other accrued liabilities (2) | 93 | 34 | |
Total liabilities | $3,584,722 | $5,071,431 |
December 31, 2024 | December 31, 2023 | ||||||||||
(in thousands) | Current Principal Balance | Carrying value | Weighted Average Interest Rate | Current Principal Balance | Carrying value | Weighted Average Interest Rate | |||||
ReadyCap Lending Small Business Trust 2019-2 | $18,189 | $18,189 | 7.9% | $32,175 | $32,175 | 7.6% | |||||
ReadyCap Lending Small Business Trust 2023-3 | 101,004 | 99,390 | 8.4 | 121,527 | 119,308 | 8.5 | |||||
Sutherland Commercial Mortgage Trust 2017-SBC6 | — | — | — | 1,550 | 1,532 | 5.0 | |||||
Sutherland Commercial Mortgage Trust 2019-SBC8 | 89,496 | 88,231 | 2.9 | 105,281 | 103,733 | 2.9 | |||||
Sutherland Commercial Mortgage Trust 2021-SBC10 | 60,816 | 59,907 | 1.6 | 81,214 | 79,952 | 1.6 | |||||
ReadyCap Commercial Mortgage Trust 2015-2 | — | — | — | 1,902 | 1,753 | 5.1 | |||||
ReadyCap Commercial Mortgage Trust 2016-3 | 6,401 | 6,289 | 5.3 | 9,038 | 8,723 | 5.2 | |||||
ReadyCap Commercial Mortgage Trust 2018-4 | 46,980 | 45,707 | 4.6 | 53,052 | 51,309 | 4.5 | |||||
ReadyCap Commercial Mortgage Trust 2019-5 | 68,125 | 64,209 | 5.0 | 88,520 | 83,529 | 4.7 | |||||
ReadyCap Commercial Mortgage Trust 2019-6 | 168,946 | 165,943 | 3.5 | 199,379 | 195,496 | 3.4 | |||||
ReadyCap Commercial Mortgage Trust 2022-7 | 190,426 | 184,852 | 4.1 | 195,866 | 188,995 | 4.2 | |||||
Ready Capital Mortgage Financing 2021-FL5 | 75,970 | 75,970 | 7.3 | 273,681 | 273,623 | 6.6 | |||||
Ready Capital Mortgage Financing 2021-FL6 | 206,377 | 206,377 | 6.7 | 417,782 | 416,467 | 6.4 | |||||
Ready Capital Mortgage Financing 2021-FL7 | 423,529 | 423,529 | 7.0 | 586,117 | 583,771 | 6.7 | |||||
Ready Capital Mortgage Financing 2022-FL8 | 587,693 | 587,625 | 7.5 | 808,671 | 805,220 | 7.0 | |||||
Ready Capital Mortgage Financing 2022-FL9 | 328,522 | 328,090 | 8.5 | 511,622 | 505,917 | 8.1 | |||||
Ready Capital Mortgage Financing 2022-FL10 | 576,655 | 573,924 | 8.2 | 654,116 | 646,141 | 7.8 | |||||
Ready Capital Mortgage Financing 2023-FL11 | 322,630 | 321,742 | 8.2 | 473,481 | 468,307 | 8.2 | |||||
Ready Capital Mortgage Financing 2023-FL12 | 331,692 | 330,437 | 8.2 | 507,646 | 500,882 | 8.0 | |||||
Total | $3,603,451 | $3,580,411 | 7.1% | $5,122,620 | $5,066,833 | 6.9% | |||||
Year Ended December 31, | |||||
(in thousands) | 2024 | 2023 | 2022 | ||
Interest income | |||||
Loans, net | |||||
Bridge | $554,723 | $654,670 | $414,308 | ||
Fixed rate | 46,894 | 50,706 | 54,998 | ||
Construction | 106,383 | 93,483 | 28,234 | ||
SBA - 7(a) | 121,108 | 88,205 | 43,571 | ||
PPP (1) | 635 | 10,350 | 54,518 | ||
Other | 31,070 | 33,158 | 38,797 | ||
Total loans, net (2) | $860,813 | $930,572 | $634,426 | ||
Loans, held for sale | |||||
Fixed rate | 517 | 2,279 | 7,581 | ||
Construction | 8,285 | — | — | ||
SBA - 7(a) | 8,504 | — | — | ||
Other | 1,098 | 620 | 1,009 | ||
Total loans, held for sale (2) | $18,404 | $2,899 | $8,590 | ||
Loans, held at fair value | |||||
Other | 753 | — | — | ||
Total loans, held at fair value | $753 | $— | $— | ||
Investments held to maturity (1) | 197 | 48 | 4,386 | ||
Preferred equity investment (2) | 12,817 | 7,854 | 10,445 | ||
MBS | 3,991 | 4,441 | 5,370 | ||
Total interest income | $896,975 | $945,814 | $663,217 | ||
Interest expense | |||||
Secured borrowings | (197,042) | (194,423) | (127,388) | ||
PPPLF borrowings (3) | (91) | (413) | (1,699) | ||
Securitized debt obligations of consolidated VIEs | (353,483) | (405,013) | (185,047) | ||
Guaranteed loan financing | (68,061) | (44,263) | (14,644) | ||
Senior secured notes | (24,941) | (17,539) | (17,503) | ||
Convertible note | — | (5,418) | (8,752) | ||
Corporate debt | (52,837) | (49,399) | (37,327) | ||
Total interest expense | $(696,455) | $(716,468) | $(392,360) | ||
Net interest income before provision for loan losses | $200,520 | $229,346 | $270,857 | ||
December 31, 2024 | December 31, 2023 | |||||||||||
(in thousands) | Primary Underlying Risk | Notional Amount | Derivative Asset | Derivative Liability | Notional Amount | Derivative Asset | Derivative Liability | |||||
Interest Rate Swaps - not designated as hedges | Interest rate risk | $26,300 | $3,506 | $— | $183,081 | $12,349 | $— | |||||
Interest Rate Swaps - designated as hedges | Interest rate risk | 396,943 | 29,030 | — | 416,139 | 24,463 | — | |||||
FX forwards | Foreign exchange rate risk | 34,133 | 851 | (352) | 39,447 | — | (212) | |||||
Total | $457,376 | $33,387 | $(352) | $638,667 | $36,812 | $(212) | ||||||
(in thousands) | Net Realized Gain (Loss) | Net Unrealized Gain (Loss) | |
Year Ended December 31, 2024 | |||
Interest rate swaps | $18,882 | $(4,760) | |
FX forwards | 912 | — | |
Total | $19,794 | $(4,760) | |
Year Ended December 31, 2023 | |||
Interest rate swaps | $20,116 | $(17,482) | |
FX forwards | 731 | (16) | |
Total | $20,847 | $(17,498) |
(in thousands) | Derivatives - effective portion reclassified from AOCI to income | Derivatives - effective portion recorded in OCI | Total change in OCI for period | ||
Interest rate swaps | |||||
Year Ended December 31, 2024 | $(1,094) | $(223) | $871 | ||
Year Ended December 31, 2023 | $(1,168) | $(11,701) | $(10,533) |
Year Ended December 31, | |||
2024 | 2023 | ||
Management fee - total | $24.9million | $25.1million | |
Management fee - amount unpaid | $5.5million | $7.0million | |
Year Ended December 31, | |||
2024 | 2023 | ||
Incentive fee distribution - total | $— | $1.8million | |
Incentive fee distribution - amount unpaid | $— | $— | |
Year Ended December 31, | |||
2024 | 2023 | ||
Reimbursable expenses payable to Manager - total | $12.3million | $12.4million | |
Reimbursable expenses payable to Manager - amount unpaid | $6.5million | $6.2million | |
(in thousands) | December 31, 2024 | December 31, 2023 | |
Other assets: | |||
Goodwill | $49,501 | $38,530 | |
Deferred loan exit fees | 27,811 | 32,271 | |
Accrued interest | 45,416 | 64,504 | |
Due from servicers | 7,039 | 20,780 | |
Intangible assets | 37,006 | 17,749 | |
Receivable from third party | 34,540 | 36,519 | |
Deferred financing costs | 8,053 | 9,544 | |
Deferred tax asset | 111,325 | — | |
Tax receivable | 1,654 | 3,069 | |
Right-of-use lease asset | 7,362 | 2,539 | |
PPP receivables | 18,363 | 34,597 | |
Investments held to maturity | 3,000 | 3,446 | |
Purchased future receivables, net | — | 9,483 | |
Other | 11,416 | 27,144 | |
Other assets | $362,486 | $300,175 | |
Accounts payable and other accrued liabilities: | |||
Accrued salaries, wages and commissions | 39,565 | 33,961 | |
Accrued interest payable | 39,723 | 35,373 | |
Servicing principal and interest payable | 13,609 | 6,249 | |
Deferred tax liability | — | 32,977 | |
Repair and denial reserve | 7,359 | 6,974 | |
Payable to related parties | 5,566 | 7,038 | |
PPP liabilities | 20,892 | 36,182 | |
Accrued professional fees | 5,538 | 5,354 | |
Lease payable | 17,806 | 8,205 | |
Liabilities of consolidated VIEs | 4,209 | 12,698 | |
Other | 33,784 | 22,470 | |
Total accounts payable and other accrued liabilities | $188,051 | $207,481 |
(in thousands) | December 31, 2024 | December 31, 2023 | |
LMM Commercial Real Estate | $27,324 | $27,324 | |
Small Business Lending | 22,177 | 11,206 | |
Total | $49,501 | $38,530 |
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | ||
December 31, 2024 | |||||
Amortized intangible assets: | |||||
Internally developed software | $20,518 | $7,051 | $13,467 | ||
Customer relationships | 10,332 | 1,474 | 8,858 | ||
Broker network | 10,200 | 1,700 | 8,500 | ||
Other | 3,499 | 818 | 2,681 | ||
Unamortized intangible assets: | |||||
Trade name | 2,500 | — | 2,500 | ||
SBA license | 1,000 | — | 1,000 | ||
Total intangible assets | $48,049 | $11,043 | $37,006 | ||
December 31, 2023 | |||||
Amortized intangible assets: | |||||
Internally developed software | $11,840 | $3,884 | $7,956 | ||
Customer relationships | 6,800 | 865 | 5,935 | ||
Other | 2,080 | 1,722 | 358 | ||
Unamortized intangible assets: | |||||
Trade name | 2,500 | — | 2,500 | ||
SBA license | 1,000 | — | 1,000 | ||
Total intangible assets | $24,220 | $6,471 | $17,749 |
For the Year Ended December 31, | |||||
(in thousands) | 2024 | 2023 | 2022 | ||
Other income: | |||||
Origination income | $20,544 | $20,866 | $15,672 | ||
Change in repair and denial reserve | (2,183) | 3,229 | 6,977 | ||
ERC consulting income | 3,887 | 53,622 | 9,410 | ||
Other | 28,555 | 27,797 | 24,149 | ||
Total other income | $50,803 | $105,514 | $56,208 | ||
Other operating expenses: | |||||
Origination costs | 16,975 | 7,345 | 12,906 | ||
Technology expense | 11,478 | 7,430 | 6,164 | ||
Rent and property tax expense | 7,613 | 5,001 | 4,519 | ||
Recruiting, training and travel expense | 2,826 | 2,782 | 2,618 | ||
Marketing expense | 2,005 | 1,120 | 706 | ||
Bad debt expense - ERC | 4,190 | 8,447 | — | ||
Other | 18,485 | 18,828 | 16,707 | ||
Total other operating expenses | $63,572 | $50,953 | $43,620 | ||
Declaration Date | Record Date | Payment Date | Dividend per Share | |||
December 14, 2023 | December 29, 2023 | January 31, 2024 | $0.30 | |||
March 15, 2024 | March 28, 2024 | April 30, 2024 | $0.30 | |||
June 14, 2024 | June 28, 2024 | July 31, 2024 | $0.30 | |||
September 13, 2024 | September 30, 2024 | October 31, 2024 | $0.25 | |||
December 13, 2024 | December 31, 2024 | January 31, 2025 | $0.25 |
Restricted Stock Units/Awards | |||||
(in thousands, except share data) | Number of shares | Grant date fair value | Weighted-average grant date fair value (per share) | ||
Outstanding, December 31, 2023 | 747,808 | $9,888 | $13.22 | ||
Granted | 768,407 | 6,993 | 9.10 | ||
Vested | (325,918) | (4,110) | 12.61 | ||
Forfeited | (58,937) | (609) | 10.33 | ||
Outstanding, March 31, 2024 | 1,131,360 | $12,162 | $10.75 | ||
Granted | 2,760 | 25 | 9.06 | ||
Vested | (60,154) | (592) | 9.84 | ||
Forfeited | (65,872) | (699) | 10.61 | ||
Outstanding, June 30, 2024 | 1,008,094 | $10,896 | $10.81 | ||
Granted | 34,994 | 330 | 9.43 | ||
Vested | (48,980) | (450) | 9.19 | ||
Forfeited | (24,161) | (245) | 10.14 | ||
Outstanding, September 30, 2024 | 969,947 | $10,531 | $10.86 | ||
Granted | 124,081 | 1,015 | 8.18 | ||
Vested | (80,131) | (1,115) | 13.91 | ||
Forfeited | (17,348) | (183) | 10.55 | ||
Outstanding, December 31, 2024 | 996,549 | $10,248 | $10.28 | ||
Year Ended December 31, | |||||
(in thousands, except for share and per share amounts) | 2024 | 2023 | 2022 | ||
Basic Earnings | |||||
Net income (loss) from continuing operations | $(411,999) | $351,245 | $159,551 | ||
Less: Income attributable to non-controlling interest | 5,357 | 8,960 | 8,900 | ||
Less: Income attributable to participating shares | 9,125 | 9,284 | 9,561 | ||
Basic earnings - continuing operations | $(426,481) | $333,001 | $141,090 | ||
Basic earnings - discontinued operations | $(18,399) | $(2,834) | $43,612 | ||
Diluted Earnings | |||||
Net income (loss) from continuing operations | (411,999) | 351,245 | 159,551 | ||
Less: Income attributable to non-controlling interest | 5,357 | 8,960 | 8,900 | ||
Less: Income attributable to participating shares | 9,125 | 9,284 | 9,561 | ||
Add: Expenses attributable to dilutive instruments | 524 | 524 | 9,276 | ||
Diluted earnings - continuing operations | $(425,957) | $333,525 | $150,366 | ||
Diluted earnings - discontinued operations | $(18,399) | $(2,834) | $43,612 | ||
Number of Shares | |||||
Basic — Average shares outstanding | 169,107,477 | 146,841,594 | 106,878,139 | ||
Effect of dilutive securities — Unvested participating shares | 1,364,796 | 1,725,432 | 10,315,819 | ||
Diluted — Average shares outstanding | 170,472,273 | 148,567,026 | 117,193,958 | ||
EPS Attributable to RC Common Stockholders: | |||||
Basic - continuing operations | $(2.52) | $2.27 | $1.32 | ||
Basic - discontinued operations | $(0.11) | $(0.02) | $0.41 | ||
Basic - total | $(2.63) | $2.25 | $1.73 | ||
Diluted - continuing operations | $(2.52) | $2.24 | $1.28 | ||
Diluted - discontinued operations | $(0.11) | $(0.02) | $0.37 | ||
Diluted - total | $(2.63) | $2.22 | $1.65 | ||
Gross amounts not offset in the Consolidated Balance Sheets(1) | |||||||||||
(in thousands) | Gross amounts of Assets / Liabilities | Gross amounts offset | Balance in Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received / Paid | Net Amount | |||||
December 31, 2024 | |||||||||||
Assets | |||||||||||
FX forwards | $851 | $— | $851 | $— | $— | $851 | |||||
Interest rate swaps | 32,536 | 25,424 | 7,112 | — | — | 7,112 | |||||
Total | $33,387 | $25,424 | $7,963 | $— | $— | $7,963 | |||||
Liabilities | |||||||||||
Interest rate swaps | — | — | — | — | — | — | |||||
FX forwards | 352 | — | 352 | — | — | 352 | |||||
Secured borrowings | 2,035,176 | — | 2,035,176 | 2,035,176 | — | — | |||||
PPPLF | 20,892 | — | 20,892 | 18,362 | — | 2,530 | |||||
Total | $2,056,420 | $— | $2,056,420 | $2,053,538 | $— | $2,882 | |||||
December 31, 2023 | |||||||||||
Assets | |||||||||||
Interest rate swaps | 36,812 | 34,408 | 2,404 | — | — | 2,404 | |||||
Total | $36,812 | $34,408 | $2,404 | $— | $— | $2,404 | |||||
Liabilities | |||||||||||
FX forwards | 212 | — | 212 | — | — | 212 | |||||
Secured borrowings | 2,102,075 | — | 2,102,075 | 2,102,075 | — | — | |||||
PPPLF | 36,036 | — | 36,036 | 34,596 | — | 1,440 | |||||
Total | $2,138,323 | $— | $2,138,323 | $2,136,671 | $— | $1,652 | |||||
Year Ended December 31, | |||||||
(in thousands) | 2024 | 2023 | |||||
U.S. statutory tax | $(108,467) | 21.0% | $75,268 | 21.0% | |||
State and local income tax | (11,487) | 2.2 | 929 | 0.3 | |||
Income attributable to REIT | 69,971 | (13.5) | (69,019) | (19.3) | |||
Income attributable to non-controlling interests | (718) | 0.1 | (1,789) | (0.5) | |||
Permanent items | (29,508) | 5.7 | 863 | 0.2 | |||
Valuation allowance | (21,085) | 4.1 | — | — | |||
Other | (3,218) | 0.6 | 922 | 0.3 | |||
Effective income tax (benefit) | $(104,512) | 20.2% | $7,174 | 2.0% | |||
Year Ended December 31, | |||
(in thousands) | 2024 | 2023 | |
Deferred tax assets: | |||
Net operating loss carryforwards | $81,883 | $22,153 | |
Accruals | 5,349 | 6,593 | |
Depreciation and amortization | — | 2,913 | |
Goodwill | 16,868 | 17,647 | |
Compensation | 599 | 119 | |
Right of use asset | 1,641 | — | |
Stock Compensation | 997 | — | |
Loan / servicing rights balance | 9,543 | — | |
Other | 642 | 45 | |
Total deferred tax assets | $117,522 | $49,470 | |
Deferred tax liabilities: | |||
Loan / servicing rights balance | — | 50,844 | |
Derivative instruments | — | 56 | |
Other taxable temporary difference | 3,932 | 5,642 | |
Depreciation and amortization | 1,541 | — | |
Unrealized gains | 724 | 4,820 | |
Total deferred tax liabilities | $6,197 | $61,362 | |
Valuation allowance | — | (21,085) | |
Net deferred tax assets (liabilities) | $111,325 | $(32,977) | |
Year Ended December 31, 2024 | |||||
(in thousands) | LMM Commercial Real Estate | Small Business Lending | Total | ||
Interest income | $766,354 | $130,621 | $896,975 | ||
Interest expense | (598,846) | (97,609) | (696,455) | ||
Net interest income before provision for loan losses | $167,508 | $33,012 | $200,520 | ||
Provision for loan losses | (283,800) | (8,959) | (292,759) | ||
Net interest income after provision for loan losses | $(116,292) | $24,053 | $(92,239) | ||
Non-interest income | |||||
Net realized gain (loss) on financial instruments and real estate owned | (132,746) | 78,746 | (54,000) | ||
Net unrealized gain (loss) on financial instruments | (20,588) | 5,597 | (14,991) | ||
Valuation allowance, loans held for sale | (124,878) | — | (124,878) | ||
Servicing income, net | 5,759 | 10,797 | 16,556 | ||
Income on unconsolidated joint ventures | 10,876 | 10 | 10,886 | ||
Other income | 22,605 | 23,424 | 46,029 | ||
Total non-interest income (loss) | $(238,972) | $118,574 | $(120,398) | ||
Non-interest expense | |||||
Employee compensation and benefits | (25,821) | (46,036) | (71,857) | ||
Allocated employee compensation and benefits from related party | (1,139) | — | (1,139) | ||
Professional fees | (4,963) | (12,681) | (17,644) | ||
Loan servicing expense | (44,667) | (1,989) | (46,656) | ||
Impairment on real estate | (56,428) | (75) | (56,503) | ||
Other operating expenses | (15,212) | (36,108) | (51,320) | ||
Total non-interest expense | $(148,230) | $(96,889) | $(245,119) | ||
Income (loss) before unallocated expenses and provision for income taxes | $(503,494) | $45,738 | $(457,756) | ||
Unallocated corporate income (expenses) | |||||
Gain on bargain purchase | 13,859 | ||||
Employee compensation and benefits | (20,913) | ||||
Professional fees | (9,243) | ||||
Management fees – related party | (24,862) | ||||
Transaction related expenses | (10,118) | ||||
Other operating expenses - net | (7,478) | ||||
Total unallocated corporate expenses | $(58,755) | ||||
Loss before provision for income taxes | $(516,511) | ||||
Total assets | $8,058,707 | $1,427,281 | $9,485,988 | ||
Year Ended December 31, 2023 | |||||
(in thousands) | LMM Commercial Real Estate | Small Business Lending | Total | ||
Interest income | $847,253 | $98,561 | $945,814 | ||
Interest expense | (650,624) | (65,844) | (716,468) | ||
Net interest income before provision for loan losses | $196,629 | $32,717 | $229,346 | ||
Provision for loan losses | (1,413) | (5,817) | (7,230) | ||
Net interest income after provision for loan losses | $195,216 | $26,900 | $222,116 | ||
Non-interest income | |||||
Net realized gain (loss) on financial instruments and real estate owned | 34,072 | 30,936 | 65,008 | ||
Net unrealized gain (loss) on financial instruments | 8,427 | 1,291 | 9,718 | ||
Servicing income, net | 5,819 | 15,342 | 21,161 | ||
Loss on unconsolidated joint ventures | (905) | — | (905) | ||
Other income | 38,552 | 64,499 | 103,051 | ||
Total non-interest income | $85,965 | $112,068 | $198,033 | ||
Non-interest expense | |||||
Employee compensation and benefits | (33,012) | (40,289) | (73,301) | ||
Allocated employee compensation and benefits from related party | (882) | — | (882) | ||
Professional fees | (5,369) | (19,535) | (24,904) | ||
Loan servicing expense | (40,070) | (741) | (40,811) | ||
Impairment on real estate | (8,638) | — | (8,638) | ||
Other operating expenses | (15,805) | (27,763) | (43,568) | ||
Total non-interest expense | $(103,776) | $(88,328) | $(192,104) | ||
Income before unallocated expenses and provision for income taxes | $177,405 | $50,640 | $228,045 | ||
Unallocated corporate income (expenses) | |||||
Gain on bargain purchase | 207,972 | ||||
Employee compensation and benefits | (18,184) | ||||
Professional fees | (9,834) | ||||
Management fees – related party | (25,103) | ||||
Incentive fees – related party | (1,791) | ||||
Transaction related expenses | (17,764) | ||||
Other operating expenses - net | (4,922) | ||||
Total unallocated corporate income | $130,374 | ||||
Income before provision for income taxes | $358,419 | ||||
Total assets | $10,282,531 | $1,395,687 | $11,678,218 | ||
Year Ended December 31, 2022 | |||||
(in thousands) | LMM Commercial Real Estate | Small Business Lending | Total | ||
Interest income | $565,128 | $98,089 | $663,217 | ||
Interest expense | (364,343) | (27,382) | (391,725) | ||
Net interest income before provision for loan losses | $200,785 | $70,707 | $271,492 | ||
Provision for loan losses | (31,471) | (2,971) | (34,442) | ||
Net interest income after provision for loan losses | $169,314 | $67,736 | $237,050 | ||
Non-interest income | |||||
Net realized gain (loss) on financial instruments and real estate owned | 21,813 | 31,951 | 53,764 | ||
Net unrealized gain (loss) on financial instruments | 23,321 | (1,431) | 21,890 | ||
Servicing income, net | 4,623 | 6,805 | 11,428 | ||
Income on unconsolidated joint ventures | 11,661 | — | 11,661 | ||
Other income | 29,506 | 25,872 | 55,378 | ||
Total non-interest income | $90,924 | $63,197 | $154,121 | ||
Non-interest expense | |||||
Employee compensation and benefits | (29,417) | (40,546) | (69,963) | ||
Allocated employee compensation and benefits from related party | (955) | — | (955) | ||
Professional fees | (7,030) | (5,361) | (12,391) | ||
Loan servicing expense | (30,107) | (707) | (30,814) | ||
Impairment on real estate | (4,033) | — | (4,033) | ||
Other operating expenses | (19,728) | (17,776) | (37,504) | ||
Total non-interest expense | $(91,270) | $(64,390) | $(155,660) | ||
Income before unallocated expenses and provision for income taxes | $168,968 | $66,543 | $235,511 | ||
Unallocated corporate expenses | |||||
Interest expense | (635) | ||||
Employee compensation and benefits | (13,620) | ||||
Professional fees | (4,911) | ||||
Management fees – related party | (19,295) | ||||
Incentive fees – related party | (3,105) | ||||
Transaction related expenses | (13,633) | ||||
Other operating expenses - net | (5,286) | ||||
Total unallocated corporate expenses | $(60,485) | ||||
Income before provision for income taxes | $175,026 | ||||
Total assets | $10,197,876 | $835,836 | $11,033,712 | ||
($ in thousands) | December 31, 2024 | |||||||||||||||||
Product Type | Property Type | Loan Count | Interest Rate | Maturity Date | Prior Liens | Payment Terms | Carrying Value | UPB | UPB of loans subject to delinquent principal or interest | |||||||||
First Mortgages individually >3% | ||||||||||||||||||
Construction | Mixed Use | 1 | 13.1% | 2024 | — | Interest Only | $426,100 | $494,404 | $— | |||||||||
First Mortgages individually <3% | ||||||||||||||||||
Bridge | Health Care, Industrial, Lodging, Mixed Use, Multi- Family, Office, Retail, Storage | 255 | 5.0 | - | 13.8% | 2021 | - | 2027 | N/A | N/A | 5,160,410 | 5,413,832 | 503,348 | |||||
Fixed Rate | Health Care, Industrial, Lodging, Mixed Use, Multi- Family, Office, Retail, Storage | 182 | 3.4 | - | 8.7% | 2021 | - | 2043 | N/A | N/A | 885,417 | 891,675 | 49,640 | |||||
Construction | Industrial, Land, Lodging, Mixed Use, Multi-Family, Residential, Retail | 48 | 9.0 | - | 13.0% | 2020 | - | 2028 | N/A | N/A | 329,484 | 351,820 | 80,853 | |||||
Freddie Mac | Multi-Family | 10 | 5.3 | - | 6.6% | 2030 | - | 2035 | N/A | N/A | 36,248 | 35,931 | — | |||||
SBA - 7(a) | SBA | 2,204 | 1.0 | - | 11.3% | 2024 | - | 2051 | N/A | N/A | 1,127,727 | 1,153,555 | 59,295 | |||||
Other | Health Care, Hotel, Industrial, Lodging, Mixed Use, Multi- Family, Office, Residential, Retail, Storage, Other | 1,020 | 1.0 | - | 12.0% | 2021 | - | 2054 | N/A | N/A | 348,015 | 352,019 | 5,238 | |||||
Total First Mortgages | 3,720 | $8,313,401 | $8,693,236 | $698,374 | ||||||||||||||
Subordinated Mortgages individually <3% | ||||||||||||||||||
Construction | Hotel, Mixed Used, Multi- Family | 3 | 9.0 | - | 16.0% | 2023 | - | 2025 | N/A | N/A | 32,084 | 105,821 | 29,427 | |||||
SBA - 7(a) | SBA | 4,252 | 0.0 | - | 15.0% | 2014 | - | 2050 | N/A | N/A | 181,716 | 193,551 | 12,322 | |||||
Other | Mixed Use, Retail | 447 | 1.0 | - | 29.0% | 2019 | - | 2029 | N/A | N/A | 22,635 | 38,973 | 17,434 | |||||
Total Subordinated Mortgages (1) | 4,702 | $236,435 | $338,345 | $59,183 | ||||||||||||||
Total Loans, net and Loans, held for sale | 8,422 | $8,549,836 | $9,031,581 | $757,557 | ||||||||||||||
(in thousands) | Loans, net | Loans, held for sale | Total Loan Receivables | ||
Balance as of December 31, 2021 | 6,994,728 | 317,012 | 7,311,740 | ||
Origination of loan receivables | 3,303,318 | 722,280 | 4,025,598 | ||
Purchases of loan receivables | 669,137 | — | 669,137 | ||
Proceeds from disposition and principal payment of loan receivables | (1,471,118) | (914,374) | (2,385,492) | ||
Loans acquired as part of merger transactions | 412,745 | — | 412,745 | ||
Net realized gain (loss) on sale of loan receivables | (9,281) | 21,499 | 12,218 | ||
Net unrealized gain (loss) on loan receivables | (980) | (18,695) | (19,675) | ||
Accretion/amortization of discount, premium and other fees | 14,618 | — | 14,618 | ||
Foreign currency gain (loss), net | (1,165) | — | (1,165) | ||
Transfers | 3,987 | (3,987) | — | ||
Transfers to real estate owned, held for sale | (1,598) | — | (1,598) | ||
Provision for loan losses | (30,894) | — | (30,894) | ||
Balance as of December 31, 2022 | 9,883,497 | 123,735 | 10,007,232 | ||
Origination of loan receivables | 1,005,137 | 561,997 | 1,567,134 | ||
Payments in kind | 42,148 | — | 42,148 | ||
Proceeds from disposition and principal payment of loan receivables | (1,779,990) | (579,309) | (2,359,299) | ||
Loans acquired as part of merger transactions | 764,367 | — | 764,367 | ||
Loan receivables from issuance of securitized debt obligation | 689,079 | — | 689,079 | ||
Net realized gain (loss) on sale of loan receivables | (9,661) | 34,991 | 25,330 | ||
Net unrealized gain (loss) on loan receivables | (437) | 8,846 | 8,409 | ||
Accretion/amortization of discount, premium and other fees | 34,245 | — | 34,245 | ||
Foreign currency gain (loss), net | 2,645 | — | 2,645 | ||
Transfers | 68,661 | (68,661) | — | ||
Transfers to real estate owned, held for sale | (56,900) | — | (56,900) | ||
Provision for loan losses | (11,306) | — | (11,306) | ||
Balance as of December 31, 2023 | 10,631,485 | 81,599 | 10,713,084 | ||
Origination of loan receivables | 826,095 | 1,052,926 | 1,879,021 | ||
Payments in kind | 73,518 | 4,055 | 77,573 | ||
Non-cash participations | 39,855 | — | 39,855 | ||
Proceeds from disposition and principal payment of loan receivables | (2,254,757) | (1,378,961) | (3,633,718) | ||
Loans acquired as part of merger transactions | 8,167 | — | 8,167 | ||
Net realized gain (loss) on sale of loan receivables | (9,166) | (145,622) | (154,788) | ||
Net unrealized gain (loss) on loan receivables | 3,631 | (3,265) | 366 | ||
Gain on sale of agency loans | (20,507) | 85,518 | 65,011 | ||
Accretion/amortization of discount, premium and other fees | 23,360 | — | 23,360 | ||
Foreign currency gain (loss), net | (4,086) | — | (4,086) | ||
Transfers | (715,843) | 715,843 | — | ||
Transfers to real estate, held for sale | (41,401) | (45,589) | (86,990) | ||
Provision for loan losses | (252,141) | — | (252,141) | ||
Valuation allowance | — | (124,878) | (124,878) | ||
Balance as of December 31, 2024 | 8,308,210 | 241,626 | 8,549,836 |
Exhibit number | Exhibit description | |
2.1 | * | |
3.1 | * | |
3.2 | * | |
3.3 | * | |
3.4 | * | |
3.5 | * | |
3.6 | * | |
3.7 | * | |
3.8 | * | |
3.9 | * |
3.10 | * | |
4.1 | * | |
4.2 | * | |
4.3 | * | |
4.4 | * | |
4.5 | * | |
4.6 | * | |
4.7 | * | |
4.8 | * | |
4.9 | * | |
4.10 | * | |
4.11 | * | |
4.12 | * |
4.13 | * | |
4.14 | * | |
4.15 | * | |
4.16 | * | |
4.17 | * | |
10.1 | * | |
10.2 | * | |
10.3 | * | |
10.4 | * | |
10.5 | * | |
10.6 | * | |
10.7 | * | |
10.8 | * | |
10.9 | * | |
10.10 | * | |
10.11 | * | |
10.12 | * | |
10.13 | * | |
10.14 | * | |
10.15 | * | |
10.16 | * | |
19.1 | * | Registrant's Annual Report on Form 10-K filed on February 28, 2024). |
21.1 | * | |
23.1 | ||
24.1 | * | |
31.1 | ||
31.2 | ||
32.1 | ** | |
32.2 | ** | |
97.1 | * | Exhibit 97.1 of the Registrant's Annual Report on Form 10-K filed on February 28, 2024). |
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH | Inline XBRL Taxonomy Extension Scheme Document | |
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document | |
101.DEF | Inline XBRL Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (embedded with the Inline XBRL document) |
* | Previously filed. |
** | This exhibit is being furnished rather than filed, and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-K. |
*** | Pursuant to Item 601(b)(2) of Regulation S-K, certain schedules have been omitted. Ready Capital agrees to furnish supplementally a copy of any omitted schedule to the SEC upon request. |
Date: September 29, 2025 | By: | /s/ Thomas E. Capasse |
Thomas E. Capasse | ||
Chairman of the Board, Chief Executive | ||
Officer and Chief Investment Officer | ||
| By: | /s/ Thomas E. Capasse | |||||||
| Name: Thomas E. Capasse | ||||||||
| Title: Chief Executive Officer | ||||||||
| By: | /s/ Andrew Ahlborn | |||||||
| Name: Andrew Ahlborn | ||||||||
| Title: Chief Financial Officer | ||||||||
| By: | /s/ Thomas E. Capasse | |||||||||||||
| Name: Thomas E. Capasse | ||||||||||||||
| Title: Chief Executive Officer | ||||||||||||||
| By: | /s/ Andrew Ahlborn | ||||||||||
| Name: Andrew Ahlborn | |||||||||||
| Title: Chief Financial Officer | |||||||||||