Ready Capital Corporation Reports Second Quarter 2026 Results
Rhea-AI Summary
Ready Capital (NYSE: RC) reported a second quarter 2026 GAAP net loss attributable to common stockholders of $103.5 million, or $(0.63) per common share, and a distributable loss attributable to common stockholders of $77.6 million, or $(0.47) per share, including realized losses on investments.
The company generated $1.4 billion of cash year-to-date from loan sales and portfolio runoff, used to pay down over $1.0 billion of asset-level financing and retire $184 million of corporate debt, including its 6.20% Senior Unsecured Notes. It completed a $158.2 million securitization of unguaranteed SBA 7(a) loans, adding $24.6 million of net liquidity and $500 million of additional funding capacity.
Total Q2 loan originations were $278.8 million, and book value stood at $6.83 per common share at June 30, 2026. Ready Capital ended the quarter with $124 million of cash, $690 million of unencumbered assets, total leverage of 3.0x, and recourse leverage of 1.7x.
Positive
- $1.4 billion cash generated year-to-date from loan sales and runoff
- Over $1.0 billion of asset-level financing paydowns and $184 million corporate debt retired year-to-date
- Securitized $158.2 million of unguaranteed SBA 7(a) loans, adding $24.6 million net liquidity and $500 million 7(a) funding capacity
- Ended Q2 2026 with $124 million cash and $690 million unencumbered assets; total leverage 3.0x, recourse 1.7x
- Q2 2026 loan originations of $278.8 million, including $155.9 million LMM CRE and $82.1 million SBA 7(a)
- Portland Ritz RevPar up 20% year-over-year to $244 on 10% higher occupancy
Negative
- Q2 2026 GAAP net loss attributable to RC of $103.5 million, EPS $(0.63) vs $(0.34) in Q2 2025
- Q2 2026 distributable loss attributable to common stockholders of $77.6 million, or $(0.47) per share
- Q2 2026 provision for loan losses of $21.6 million vs $8.6 million in Q2 2025
- Q2 2026 realized losses on sale of investments of $41.2 million
- Book value per common share $6.83 at June 30, 2026 amid a retained deficit of $1.12 billion
- Common dividend declared of $0.01 per share in Q2 2026 vs $0.125 in Q2 2025
News Explained
At June 30, Ready Capital’s repositioning remained unfinished, with fourth-quarter debt maturities ahead and 165,209,516 common shares outstanding.
Ready Capital reported second-quarter results for the quarter ended
The SBA 7(a) securitization used a 92% advance and was priced at SOFR plus 2.4%; it generated
The next stated financing milestone is meeting fourth-quarter debt maturities; management also said it is looking toward restarting growth through core CRE debt investing and SBA 7(a) lending.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 07 | 1Q26 earnings report | Negative | -12.5% | Reported substantial losses, rising delinquencies, and initiated a large loan sale process. |
| May 01 | Earnings call notice | Neutral | -4.1% | Announced the scheduled release of first-quarter results and management conference call. |
| Feb 26 | 4Q25 earnings report | Negative | +13.5% | Reported quarterly losses despite loan originations and subsequent portfolio actions. |
| Feb 13 | Earnings call notice | Neutral | +3.0% | Scheduled fourth-quarter and full-year results release with a management webcast. |
| Nov 06 | 3Q25 earnings report | Negative | -1.7% | Reported losses alongside portfolio sales and actions intended to restore financial health. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were mixed, with two negative earnings announcements followed by declines and one negative announcement followed by a gain.
Key Terms
gaap financial
cecl reserve financial
mbs financial
sofr financial
reit financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market (“LMM”) investor and owner-occupied commercial real estate loans, today reported financial results for the quarter ended June 30, 2026.
“Our second quarter results demonstrate continued progress on our balance sheet repositioning plan with the pace of book value reduction decelerating and earnings pressure narrowing,” said Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “Although there is still work to be done, we are encouraged by the progress made, remain focused on meeting our fourth quarter debt maturities, and are increasingly looking towards restarting growth through our core CRE debt investing and SBA 7(a) lending business.”
Financial Metrics
- GAAP loss per common share of
$(0.63) - Distributable loss per common share of
$(0.47) - Distributable loss per common share before realized losses of
$(0.24)
Balance Sheet Repositioning
- Generated
$1.4 billion in cash year-to-date from loan sales and portfolio runoff, paying down over$1 billion in asset-level financing and retiring$184 million of corporate debt - Retired the
6.20% Senior Unsecured Notes in April 2026 - Securitization of
$158.2 million of unguaranteed SBA 7(a) loans at a92% advance priced at SOFR +2.4% ; the transaction generated$24.6 million of net liquidity and$500 million of additional funding capacity for 7(a) production
Portfolio & Credit
- Total loan originations of
$278.8 million , including$155.9 million of LMM commercial real estate loans and$82.1 million of Small Business Administration 7(a) loans
Capitalization
- Book value of
$6.83 per share of common stock as of June 30, 2026 - Ended the quarter with
$124 million in cash and$690 million of unencumbered assets; total leverage of 3.0x with recourse leverage of 1.7x
Portland Ritz
- Sold 50 Ritz-Carlton branded condominium units to date totaling
38% completion - Hotel occupancy increased
10% year-over-year to52% along with a4% decrease in ADR to$468 resulted in a20% increase in RevPar to$244
Use of Non-GAAP Financial Information
In addition to the results presented in accordance with U.S. GAAP, this press release includes distributable earnings, formerly referred to as core earnings, which is a non-U.S. GAAP financial measure. The Company defines distributable earnings as net income adjusted for unrealized gains and losses related to certain mortgage backed securities (“MBS”) not retained by us as part of our loan origination business, realized gains and losses on sales of certain MBS, unrealized changes in our current expected credit loss reserve and valuation allowance, unrealized gains or losses on de-designated cash flow hedges, unrealized gains or losses on foreign exchange hedges, unrealized gains or losses on certain unconsolidated joint ventures, non-cash compensation expense related to our stock-based incentive plan, unrealized gains or losses on preferred equity, at fair value, unrealized gain or losses or other non-cash items related to real estate owned and one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses.
The Company believes that this non-U.S. GAAP financial information, in addition to the related U.S. GAAP measures, provides investors greater transparency into the information used by management in its financial and operational decision-making, including the determination of dividends. However, because distributable earnings is an incomplete measure of the Company's financial performance and involves differences from net income computed in accordance with U.S. GAAP, it should be considered along with, but not as an alternative to, the Company's net income computed in accordance with U.S. GAAP as a measure of the Company's financial performance. In addition, because not all companies use identical calculations, the Company's presentation of distributable earnings may not be comparable to other similarly-titled measures of other companies.
In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains and losses on MBS acquired by the Company in the secondary market but is not adjusted to exclude unrealized gains and losses on MBS retained by Ready Capital as part of its loan origination businesses, where the Company transfers originated loans into an MBS securitization and the Company retains an interest in the securitization. In calculating distributable earnings, the Company does not adjust Net Income (in accordance with U.S. GAAP) to take into account unrealized gains and losses on MBS retained by us as part of the loan origination businesses because the unrealized gains and losses that are generated in the loan origination and securitization process are considered to be a fundamental part of this business and an indicator of the ongoing performance and credit quality of the Company’s historical loan originations. In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude realized gains and losses on certain MBS securities considered to be non-distributable. Certain MBS positions are considered to be non-distributable due to a variety of reasons which may include collateral type, duration, and size.
Servicing rights relating to the Company’s small business commercial business are accounted for under ASC 860, Transfer and Servicing. In calculating distributable earnings, the Company does not exclude realized gains or losses on commercial MSRs, as servicing income is a fundamental part of Ready Capital’s business and is an indicator of the ongoing performance.
To qualify as a REIT, the Company must distribute to its stockholders each calendar year at least
The table below reconciles Net Income computed in accordance with U.S. GAAP to Distributable Earnings.
| (in thousands) | Three Months Ended June 30, 2026 | ||
| Net Loss | $ | (99,683 | ) |
| Reconciling items: | |||
| Unrealized loss on joint ventures | 3,037 | ||
| Increase in CECL reserve | 8,250 | ||
| Decrease in valuation allowance | (2,447 | ) | |
| Non-recurring REO impairment | 952 | ||
| Non-cash compensation | 2,484 | ||
| Unrealized loss on preferred equity, at fair value | 10,065 | ||
| Merger transaction costs and other non-recurring expenses | 2,339 | ||
| Depreciation and amortization on real estate owned | 1,575 | ||
| Realized losses on sale of investments | 41,234 | ||
| Total reconciling items | $ | 67,489 | |
| Income tax adjustments | (2,931 | ) | |
| Distributable loss before realized losses | $ | (35,125 | ) |
| Realized losses on sale of investments, net of tax | (38,493 | ) | |
| Distributable loss | $ | (73,618 | ) |
| Less: Distributable earnings attributable to non-controlling interests | 1,904 | ||
| Less: Income attributable to participating shares | 2,055 | ||
| Distributable loss attributable to common stockholders | $ | (77,577 | ) |
| Distributable loss before realized losses on investments, net of tax per common share - basic and diluted | $ | (0.24 | ) |
| Distributable loss per common share - basic and diluted | $ | (0.47 | ) |
U.S. GAAP return on equity is based on U.S. GAAP net income, while distributable return on equity is based on distributable earnings, which adjusts U.S. GAAP net income for the items in the distributable earnings reconciliation above.
Webcast and Earnings Conference Call
Management will host a webcast and conference call on Friday, August 7, 2026 at 8:30am ET to provide a general business update and discuss the financial results for the quarter ended June 30, 2026. During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in. The webcast of the conference call will be available in the Investor Relations section of the Company’s website at www.readycapital.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
To Participate in the Telephone Conference Call:
Dial in at least five minutes prior to start time.
Domestic: 1-877-407-0792
International: 1-201-689-8263
Conference Call Playback:
Domestic: 1-844-512-2921
International: 1-412-317-6671
Replay Pin #: 13761020
The playback can be accessed through August 21, 2026.
Safe Harbor Statement
This press release contains statements that constitute "forward-looking statements," as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, applicable regulatory changes; general volatility of the capital markets; changes in the Company’s investment objectives and business strategy; the availability of financing on acceptable terms or at all; the availability, terms and deployment of capital; the availability of suitable investment opportunities; changes in the interest rates or the general economy; increased rates of default and/or decreased recovery rates on investments; changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of Company’s assets; the degree and nature of competition, including competition for the Company's target assets; and other factors, including those set forth in the Risk Factors section of the Company's most recent Annual Report on Form 10-K filed with the SEC, and other reports filed by the Company with the SEC, copies of which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
About Ready Capital Corporation
Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program. Headquartered in New York, New York, the Company employs over 400 professionals nationwide.
Contact
Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com
Additional information can be found on the Company’s website at www.readycapital.com.
| READY CAPITAL CORPORATION | |||||||
| UNAUDITED CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands) | June 30, 2026 | December 31, 2025 | |||||
| Assets | |||||||
| Cash and cash equivalents | $ | 124,149 | $ | 207,841 | |||
| Restricted cash | 50,182 | 39,746 | |||||
| Loans, net (including | 3,409,500 | 3,500,298 | |||||
| Loans, held for sale (including | 278,214 | 585,820 | |||||
| Mortgage-backed securities | 31,587 | 34,501 | |||||
| Investment in unconsolidated joint ventures (including | 165,658 | 161,424 | |||||
| Derivative instruments | 3,096 | 6,740 | |||||
| Servicing rights | 117,463 | 126,279 | |||||
| Real estate owned | 572,850 | 620,225 | |||||
| Other assets | 466,161 | 508,238 | |||||
| Assets of consolidated VIEs | 1,045,056 | 1,978,684 | |||||
| Total Assets | $ | 6,263,916 | $ | 7,769,796 | |||
| Liabilities | |||||||
| Secured borrowings | 1,876,713 | 2,788,926 | |||||
| Securitized debt obligations of consolidated VIEs, net | 638,942 | 1,174,785 | |||||
| Senior secured notes, net | 723,915 | 722,729 | |||||
| Corporate debt, net | 470,372 | 652,487 | |||||
| Guaranteed loan financing | 950,103 | 524,091 | |||||
| Contingent consideration | 22,265 | 18,698 | |||||
| Derivative instruments | 60 | 1,432 | |||||
| Dividends payable | 3,665 | 3,633 | |||||
| Loan participations sold | 56,616 | 56,616 | |||||
| Due to third parties | 5,408 | 3,135 | |||||
| Accounts payable and other accrued liabilities | 165,620 | 171,636 | |||||
| Total Liabilities | $ | 4,913,679 | $ | 6,118,168 | |||
| Preferred stock Series C, liquidation preference | 8,361 | 8,361 | |||||
| Commitments & contingencies | |||||||
| Stockholders’ Equity | |||||||
| Preferred stock Series E, liquidation preference | 111,378 | 111,378 | |||||
| Common stock, | 17 | 17 | |||||
| Additional paid-in capital | 2,267,394 | 2,264,355 | |||||
| Retained deficit | (1,118,135 | ) | (807,522 | ) | |||
| Accumulated other comprehensive loss | (21,448 | ) | (24,196 | ) | |||
| Total Ready Capital Corporation equity | 1,239,206 | 1,544,032 | |||||
| Non-controlling interests | 102,670 | 99,235 | |||||
| Total Stockholders’ Equity | $ | 1,341,876 | $ | 1,643,267 | |||
| Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity | $ | 6,263,916 | $ | 7,769,796 | |||
| READY CAPITAL CORPORATION | |||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (in thousands, except share data) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Interest income | $ | 77,401 | $ | 152,735 | $ | 159,131 | $ | 307,702 | |||||||
| Interest expense | (82,853 | ) | (135,837 | ) | (179,687 | ) | (276,303 | ) | |||||||
| Net interest income (loss) before (provision for) recovery of loan losses | $ | (5,452 | ) | $ | 16,898 | $ | (20,556 | ) | $ | 31,399 | |||||
| (Provision for) recovery of loan losses | (21,554 | ) | (8,640 | ) | (92,461 | ) | 100,928 | ||||||||
| Net interest income (loss) after (provision for) recovery of loan losses | $ | (27,006 | ) | $ | 8,258 | $ | (113,017 | ) | $ | 132,327 | |||||
| Non-interest income | |||||||||||||||
| Net realized gain (loss) on financial instruments and real estate owned | (22,221 | ) | 18,214 | (82,306 | ) | 28,883 | |||||||||
| Net unrealized gain (loss) on financial instruments | (4,173 | ) | (1,614 | ) | (11,093 | ) | (3,364 | ) | |||||||
| Valuation allowance, loans held for sale | 2,447 | (39,746 | ) | (4,110 | ) | (139,464 | ) | ||||||||
| Servicing income, net of amortization and impairment of | 72 | (304 | ) | 5,493 | 6,152 | ||||||||||
| Gain (loss) on bargain purchase | — | (14,381 | ) | — | 88,090 | ||||||||||
| Income (loss) on unconsolidated joint ventures | 1,276 | (144 | ) | 3,335 | (4,126 | ) | |||||||||
| Other income | 14,214 | 11,304 | 32,279 | 22,894 | |||||||||||
| Total non-interest income (expense) | $ | (8,385 | ) | $ | (26,671 | ) | $ | (56,402 | ) | $ | (935 | ) | |||
| Non-interest expense | |||||||||||||||
| Employee compensation and benefits | (24,590 | ) | (23,159 | ) | (48,438 | ) | (44,413 | ) | |||||||
| Allocated employee compensation and benefits from related party | (3,376 | ) | (3,600 | ) | (6,976 | ) | (6,876 | ) | |||||||
| Professional fees | (7,671 | ) | (6,368 | ) | (14,326 | ) | (11,856 | ) | |||||||
| Management fees – related party | (3,765 | ) | (5,072 | ) | (7,841 | ) | (10,649 | ) | |||||||
| Loan servicing expense | (3,439 | ) | (11,038 | ) | (19,113 | ) | (26,882 | ) | |||||||
| Transaction related expenses | (512 | ) | (639 | ) | (847 | ) | (3,333 | ) | |||||||
| Impairment on real estate | (952 | ) | (4,268 | ) | (483 | ) | (6,614 | ) | |||||||
| Other operating expenses | (33,268 | ) | (16,133 | ) | (62,282 | ) | (32,256 | ) | |||||||
| Total non-interest expense | $ | (77,573 | ) | $ | (70,277 | ) | $ | (160,306 | ) | $ | (142,879 | ) | |||
| Loss from continuing operations before benefit for income taxes | (112,964 | ) | (88,690 | ) | (329,725 | ) | (11,487 | ) | |||||||
| Income tax benefit | 13,281 | 39,939 | 29,955 | 45,146 | |||||||||||
| Net income (loss) from continuing operations | $ | (99,683 | ) | $ | (48,751 | ) | $ | (299,770 | ) | $ | 33,659 | ||||
| Discontinued operations | |||||||||||||||
| Loss from discontinued operations before income tax benefit | — | (6,567 | ) | — | (7,161 | ) | |||||||||
| Income tax benefit | — | 1,641 | — | 1,790 | |||||||||||
| Net loss from discontinued operations | $ | — | $ | (4,926 | ) | $ | — | $ | (5,371 | ) | |||||
| Net income (loss) | $ | (99,683 | ) | $ | (53,677 | ) | $ | (299,770 | ) | $ | 28,288 | ||||
| Less: Dividends on preferred stock | 1,999 | 1,999 | 3,998 | 3,998 | |||||||||||
| Less: Net income attributable to non-controlling interest | 1,848 | 1,814 | 3,490 | 4,274 | |||||||||||
| Net income (loss) attributable to Ready Capital Corporation | $ | (103,530 | ) | $ | (57,490 | ) | $ | (307,258 | ) | $ | 20,016 | ||||
| Earnings per common share from continuing operations - basic | $ | (0.63 | ) | $ | (0.31 | ) | $ | (1.87 | ) | $ | 0.15 | ||||
| Earnings per common share from discontinued operations - basic | $ | 0.00 | $ | (0.03 | ) | $ | 0.00 | $ | (0.03 | ) | |||||
| Total earnings per common share - basic | $ | (0.63 | ) | $ | (0.34 | ) | $ | (1.87 | ) | $ | 0.12 | ||||
| Earnings per common share from continuing operations - diluted | $ | (0.63 | ) | $ | (0.31 | ) | $ | (1.87 | ) | $ | 0.15 | ||||
| Earnings per common share from discontinued operations - diluted | $ | 0.00 | $ | (0.03 | ) | $ | 0.00 | $ | (0.03 | ) | |||||
| Total earnings per common share - diluted | $ | (0.63 | ) | $ | (0.34 | ) | $ | (1.87 | ) | $ | 0.12 | ||||
| Weighted-average shares outstanding | |||||||||||||||
| Basic | 165,101,861 | 167,749,917 | 164,366,053 | 166,465,234 | |||||||||||
| Diluted | 172,781,180 | 170,673,088 | 171,173,393 | 169,320,001 | |||||||||||
| Dividends declared per share of common stock | $ | 0.01 | $ | 0.125 | $ | 0.02 | $ | 0.25 | |||||||
| READY CAPITAL CORPORATION | |||||||||||||||
| UNAUDITED SEGMENT REPORTING | |||||||||||||||
| Three Months Ended June 30, 2026 | |||||||||||||||
| (in thousands) | LMM Commercial Real Estate | Small Business Lending | Corporate-Other | Consolidated | |||||||||||
| Interest income | $ | 53,941 | $ | 23,460 | $ | — | $ | 77,401 | |||||||
| Interest expense | (65,245 | ) | (17,608 | ) | — | (82,853 | ) | ||||||||
| Net interest income (loss) before provision for loan losses | $ | (11,304 | ) | $ | 5,852 | $ | — | $ | (5,452 | ) | |||||
| Provision for loan losses | (13,689 | ) | (7,865 | ) | — | (21,554 | ) | ||||||||
| Net interest income (loss) after provision for loan losses | $ | (24,993 | ) | $ | (2,013 | ) | $ | — | $ | (27,006 | ) | ||||
| Non-interest income | |||||||||||||||
| Net realized gain (loss) on financial instruments and real estate owned | (31,965 | ) | 9,744 | — | (22,221 | ) | |||||||||
| Net unrealized gain (loss) on financial instruments | (2,620 | ) | (1,553 | ) | — | (4,173 | ) | ||||||||
| Valuation (allowance) recovery, loans held for sale | 2,447 | — | — | 2,447 | |||||||||||
| Servicing income, net | 1,374 | (1,302 | ) | — | 72 | ||||||||||
| Income on unconsolidated joint ventures | 1,270 | 6 | — | 1,276 | |||||||||||
| Other income | 10,213 | 3,194 | 807 | 14,214 | |||||||||||
| Total non-interest income (loss) | $ | (19,281 | ) | $ | 10,089 | $ | 807 | $ | (8,385 | ) | |||||
| Non-interest expense | |||||||||||||||
| Employee compensation and benefits | (6,217 | ) | (14,065 | ) | (4,308 | ) | (24,590 | ) | |||||||
| Allocated employee compensation and benefits from related party | (338 | ) | — | (3,038 | ) | (3,376 | ) | ||||||||
| Professional fees | (927 | ) | (3,709 | ) | (3,035 | ) | (7,671 | ) | |||||||
| Management fees – related party | — | — | (3,765 | ) | (3,765 | ) | |||||||||
| Loan servicing expense | (2,104 | ) | (1,335 | ) | — | (3,439 | ) | ||||||||
| Transaction related expenses | — | — | (512 | ) | (512 | ) | |||||||||
| Recovery (impairment) on real estate | (952 | ) | — | — | (952 | ) | |||||||||
| Other operating expenses | (22,208 | ) | (9,061 | ) | (1,999 | ) | (33,268 | ) | |||||||
| Total non-interest expense | $ | (32,746 | ) | $ | (28,170 | ) | $ | (16,657 | ) | $ | (77,573 | ) | |||
| Loss before provision for income taxes | $ | (77,020 | ) | $ | (20,094 | ) | $ | (15,850 | ) | $ | (112,964 | ) | |||
| Total assets | $ | 4,107,690 | $ | 1,716,453 | $ | 439,773 | $ | 6,263,916 | |||||||
| READY CAPITAL CORPORATION | |||||||||||||||
| UNAUDITED SEGMENT REPORTING | |||||||||||||||
| Six Months Ended June 30, 2026 | |||||||||||||||
| (in thousands) | LMM Commercial Real Estate | Small Business Lending | Corporate-Other | Consolidated | |||||||||||
| Interest income | $ | 112,834 | $ | 46,297 | $ | — | $ | 159,131 | |||||||
| Interest expense | (145,917 | ) | (33,770 | ) | — | (179,687 | ) | ||||||||
| Net interest income (loss) before provision for loan losses | $ | (33,083 | ) | $ | 12,527 | $ | — | $ | (20,556 | ) | |||||
| Provision for loan losses | (80,212 | ) | (12,249 | ) | — | (92,461 | ) | ||||||||
| Net interest income (loss) after provision for loan losses | $ | (113,295 | ) | $ | 278 | $ | — | $ | (113,017 | ) | |||||
| Non-interest income | |||||||||||||||
| Net realized gain (loss) on financial instruments and real estate owned | (100,207 | ) | 17,901 | — | (82,306 | ) | |||||||||
| Net unrealized gain (loss) on financial instruments | (11,416 | ) | 323 | — | (11,093 | ) | |||||||||
| Valuation allowance, loans held for sale | (4,110 | ) | — | — | (4,110 | ) | |||||||||
| Servicing income, net | 2,971 | 2,522 | — | 5,493 | |||||||||||
| Income on unconsolidated joint ventures | 3,324 | 11 | — | 3,335 | |||||||||||
| Other income | 22,153 | 8,385 | 1,741 | 32,279 | |||||||||||
| Total non-interest income (loss) | $ | (87,285 | ) | $ | 29,142 | $ | 1,741 | $ | (56,402 | ) | |||||
| Non-interest expense | |||||||||||||||
| Employee compensation and benefits | (13,866 | ) | (29,388 | ) | (5,184 | ) | (48,438 | ) | |||||||
| Allocated employee compensation and benefits from related party | (698 | ) | — | (6,278 | ) | (6,976 | ) | ||||||||
| Professional fees | (2,403 | ) | (7,185 | ) | (4,738 | ) | (14,326 | ) | |||||||
| Management fees – related party | — | — | (7,841 | ) | (7,841 | ) | |||||||||
| Loan servicing expense | (16,677 | ) | (2,436 | ) | — | (19,113 | ) | ||||||||
| Transaction related expenses | — | — | (847 | ) | (847 | ) | |||||||||
| Recovery (impairment) on real estate | (483 | ) | — | — | (483 | ) | |||||||||
| Other operating expenses | (39,558 | ) | (18,373 | ) | (4,351 | ) | (62,282 | ) | |||||||
| Total non-interest expense | $ | (73,685 | ) | $ | (57,382 | ) | $ | (29,239 | ) | $ | (160,306 | ) | |||
| Loss before provision for income taxes | $ | (274,265 | ) | $ | (27,962 | ) | $ | (27,498 | ) | $ | (329,725 | ) | |||
| Total assets | $ | 4,107,690 | $ | 1,716,453 | $ | 439,773 | $ | 6,263,916 | |||||||
