Ready Capital (NYSE: RC) posts Q1 2026 loss amid major balance sheet deleveraging
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Ready Capital Corporation reported a challenging first quarter of 2026 as it aggressively repositioned its balance sheet. The company recorded a GAAP net loss of $200.1 million, or $(1.25) per common share, and a distributable loss of $(1.00) per share, including significant realized losses on asset sales.
Year-to-date, Ready Capital generated $1.4 billion of cash from loan sales and portfolio runoff, using this to repay over $1.1 billion of asset-level financing and retire $184 million of corporate debt. These actions reduced total assets to $6.3 billion from $7.8 billion at year-end and cut total liabilities to $4.9 billion.
Book value fell to $7.43 per common share, down from $8.79, as loan sales and credit provisions pressured equity. The core commercial real estate portfolio showed 60+ day delinquencies of 14.8%, reflecting loan sales and intensified asset management. The company ended the quarter with $200 million in cash, $730 million of unencumbered assets, total leverage of 3.0x and recourse leverage of 1.8x, and declared a quarterly dividend of $0.01 per common share.
Positive
- None.
Negative
- Significant Q1 loss and book value decline: GAAP net loss of $200.1 million and distributable loss of $159.8 million drove book value per common share down from $8.79 to $7.43.
- Rising credit stress in core CRE portfolio: 60+ day core delinquencies increased to 14.8% of the core commercial real estate portfolio, alongside higher non-accrual levels.
Insights
Large Q1 loss as Ready Capital accelerates deleveraging and absorbs heavy credit and sale-related hits.
Ready Capital posted a Q1 2026 GAAP net loss of $200.1M and distributable loss of $159.8M, or $(1.00) per share. Results reflect sizable realized losses of $119.5M on investment sales and higher credit costs, including a $26.7M CECL reserve increase and $6.6M valuation allowance.
Management is executing a balance sheet repositioning focused on de-levering. Year-to-date, it generated $1.4B in cash from loan sales and runoff, paying down over $1.1B of asset-level financing and retiring $184M of corporate debt. Total assets fell to $6.3B from $7.8B, while total liabilities dropped to $4.9B. Book value per share declined from $8.79 to $7.43.
Credit metrics in the core CRE portfolio weakened, with 60+ day delinquencies rising to 14.8% of carrying value, and non-accrual loans increasing to 36.3%. The company ended the quarter with $200M of cash, $730M of unencumbered assets, total leverage of 3.0x and recourse leverage of 1.8x. A sale process for up to $1.2B of loans represents the last phase of the repositioning plan, with timing indicated through the expected closing of remaining large-scale asset sales by the end of Q2 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
GAAP net loss: $200.1M
Distributable loss attributable to common stockholders: $163.6M
Distributable loss per common share: $(1.00) per share
+5 more
8 metrics
GAAP net loss
$200.1M
Net loss for quarter ended March 31, 2026
Distributable loss attributable to common stockholders
$163.6M
Q1 2026 distributable loss to common stockholders
Distributable loss per common share
$(1.00) per share
Q1 2026 distributable EPS basic and diluted
Book value per common share
$7.43
As of March 31, 2026
Cash from loan sales and runoff
$1.4B
Year-to-date 2026 balance sheet repositioning cash generation
Debt repaid from repositioning
$1.284B
$1.1B asset-level financing plus $184M corporate debt repaid YTD 2026
Core CRE 60+ day delinquencies
14.8%
Share of core CRE portfolio 60+ days delinquent at Q1 2026 quarter end
Total leverage
3.0x
Leverage ratio at March 31, 2026
Key Terms
distributable earnings, CECL reserve, non-accrual, recourse leverage, +2 more
6 terms
distributable earnings financial
"this press release includes distributable earnings, formerly referred to as core earnings, which is a non-U.S. GAAP financial measure"
Distributable earnings are the portion of a company’s reported profits that management determines is safe to pay out to shareholders after accounting for cash needs, required reserves, and non-cash bookkeeping items. Think of it like the money left in your household budget after paying bills and putting aside savings — it shows what can realistically be handed out as dividends or distributions and helps investors judge how sustainable and reliable future payouts may be.
CECL reserve financial
"Increase in CECL reserve | 26,673"
CECL reserve is the amount a lender or financial firm sets aside under the Current Expected Credit Loss accounting rule to cover estimated lifetime losses on loans and other financial assets. It matters to investors because the size and changes of this reserve directly affect reported profits, capital strength and a lender’s cushion against bad loans — think of it as a rainy‑day fund that reflects how much future trouble the firm expects from its loans.
non-accrual financial
"ACCRUAL 76.6% 63.7% NON-ACCRUAL 23.4% 36.3%"
A non-accrual loan or asset is one for which a lender has stopped counting expected interest as income because the borrower is very late on payments or in serious financial trouble. For investors, non-accruals signal that future cash from interest is uncertain and that the lender may need to write down the loan’s value or set aside extra reserves, similar to a landlord who stops recording rent when a tenant stops paying.
recourse leverage financial
"total leverage of 3.0x with recourse leverage of 1.8x"
real estate owned financial
"Real estate owned | 610,215"
Real estate owned (REO) describes properties that a lender has taken ownership of after a borrower failed to keep up mortgage payments and the bank completed the repossession process. It matters to investors because REO shows up on a lender’s books as unsold inventory—affecting the lender’s financial health, cash flow and future profits—and presents buying opportunities or risks for real estate investors due to repair, holding, and resale costs.
mortgage-backed securities financial
"Mortgage-backed securities | 31,649"
A mortgage-backed security is an investment made by pooling many home loans and selling the right to the borrowers’ monthly payments to investors, so you receive a stream of principal and interest much like collecting payments on a bundle of IOUs. It matters to investors because it provides regular income but carries risks from homeowners missing payments or paying off loans early, and its value moves with interest rates and housing market conditions.
Earnings Snapshot
Revenue proxy (interest income): $81.7M
Q1 2026
Revenue proxy (interest income)
$81.7M
down from $155.0M in Q1 2025
GAAP net income (loss)
$(200.1M)
down from $82.0M net income in Q1 2025
GAAP EPS
$(1.25)
down from $0.47 basic EPS in Q1 2025
Distributable EPS
$(1.00)
worse than $(0.09) distributable EPS in Q1 2025
Book value per share
$7.43
down from $8.79 at December 31, 2025
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 2026
(Exact name of registrant as specified in its charter)
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Registrant's telephone number, including area code: (212 ) 257-4600
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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Securities registered pursuant to Section 12(b) of the Exchange Act:
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Item 2.02. Results of Operations and Financial Condition
On May 7, 2026, Ready Capital Corporation (the “Company”) issued an earnings release announcing the financial results for the quarter ended March 31, 2026. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
On May 7, 2026, the Company posted supplemental financial information on the Investor Relations section of its website (www.readycapital.com). A copy of the supplemental financial information is furnished as Exhibit 99.2 hereto and incorporated herein by reference.
The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, unless it is specifically incorporated by reference therein.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | Earnings Release, dated May 7, 2026 | |||||||
| 99.2 | Supplemental Financial Information for the quarter ended March 31, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| READY CAPITAL CORPORATION | ||||||||
| By: | /s/ Andrew Ahlborn | |||||||
| Name: Andrew Ahlborn | ||||||||
| Title: Chief Financial Officer | ||||||||
Date: May 7, 2026
Exhibit 99.1
READY CAPITAL CORPORATION REPORTS FIRST QUARTER 2026 RESULTS
New York, New York, May 7, 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 March 31, 2026.
“Our first quarter results reflect ongoing execution of our previously shared balance sheet repositioning plan that focuses on de-levering to generate liquidity in excess of 2026 debt maturities, thereby resetting Ready Capital’s financials for long-term success,” said Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “Year-to-date we have generated $1.4 billion in cash from loan sales and liquidations to facilitate the repayment of $1.1 billion of asset level financing and $184 million of corporate debt. These actions have resulted in a negative impact on earnings and book value, but are necessary to return the Company to profitability. With our remaining large-scale asset sales expected to close by the end of the second quarter, we anticipate the material book value pressure of the recent quarters will begin to subside, leaving a lower-leverage platform positioned to restart growth through our core CRE debt investing and SBA 7(a) lending businesses.”
Financial Metrics
•GAAP loss per common share of $(1.25)
•Distributable loss per common share of $(1.00)
•Distributable loss per common share before realized losses of $(0.33)
Balance Sheet Repositioning
•Generated $1.4 billion in cash year-to-date from loan sales and portfolio runoff, paying down over $1.1 billion in asset-level financing and retiring $184 million of corporate debt
•Sold 48 CRE loans totaling $1.0 billion in unpaid principal balance across four transactions (66% performing, 34% non- and sub-performing) for net proceeds after asset-level financing paydowns of $177 million
•Retired the 5.75% Senior Unsecured Notes in February 2026 and the 6.20% Senior Unsecured Notes in April 2026, reducing remaining 2026 corporate debt maturities to $450 million
•Collapsed the Company’s last remaining CLOs, RCMF 2021-FL7, RCMF 2023-FL11 and RCMF 2023-FL12
Portfolio & Credit
•Total loan originations of $464 million, including $288 million of LMM commercial real estate loans, $110 million of Small Business Administration 7(a) loans and $28 million of United States Department of Agriculture loans
•60+ day core delinquencies increased to 14.8% of the core CRE portfolio at quarter end. The large majority of this increase reflects the impact of loan sales as part of our balance sheet repositioning strategy and aggressive asset management strategies to accelerate liquidations
Capitalization
•Book value of $7.43 per share of common stock as of March 31, 2026
•Ended the quarter with $200 million in cash and $730 million of unencumbered assets; total leverage of 3.0x with recourse leverage of 1.8x
Portland Ritz
•Sold 43 Ritz-Carlton branded condominium units to date (74% year-to-date) with an additional 4 units under contract or reservation agreement which represents 36% sell out of 132 original inventory
•Hotel occupancy increased 5% year-over-year to 46% along with a 1% increase in ADR to $482 resulted in a 13% increase in RevPar to $221
Subsequent Events
•Initiated a sale process for up to $1.2 billion of performing and sub- and non-performing loans as the last phase of the balance sheet repositioning plan
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 90% of its REIT taxable income (including certain items of non-cash income), determined without regard to the deduction for dividends paid and excluding net capital gain. There are certain items, including net income generated from the creation of MSRs, that are included in distributable earnings but are not included in the calculation of the current year’s taxable income. These differences may result in certain items that are recognized in the current period’s calculation of distributable earnings not being included in taxable income, and thus not subject to the REIT dividend distribution requirement until future years.
The table below reconciles Net Income computed in accordance with U.S. GAAP to Distributable Earnings.
| (in thousands) | Three Months Ended March 31, 2026 | ||||
| Net Loss | $ | (200,087) | |||
| Reconciling items: | |||||
| Unrealized gain on joint ventures | (1,137) | ||||
| Increase in CECL reserve | 26,673 | ||||
| Increase in valuation allowance | 6,557 | ||||
| Non-recurring REO recovery | (469) | ||||
| Non-cash compensation | 1,629 | ||||
| Unrealized loss on preferred equity, at fair value | 7,236 | ||||
| Merger transaction costs and other non-recurring expenses | 654 | ||||
| Depreciation and amortization on real estate owned | 1,576 | ||||
| Realized losses on sale of investments | 119,520 | ||||
| Total reconciling items | $ | 162,239 | |||
| Income tax adjustments | (11,360) | ||||
| Distributable loss before realized losses | $ | (49,208) | |||
| Realized losses on sale of investments, net of tax | (110,626) | ||||
| Distributable loss | $ | (159,834) | |||
| Less: Distributable earnings attributable to non-controlling interests | 1,725 | ||||
| Less: Income attributable to participating shares | 2,059 | ||||
| Distributable loss attributable to common stockholders | $ | (163,618) | |||
| Distributable loss before realized losses on investments, net of tax per common share - basic and diluted | $ | (0.33) | |||
| Distributable loss per common share - basic and diluted | $ | (1.00) | |||
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, May 8, 2026 at 8:30am ET to provide a general business update and discuss the financial results for the quarter ended March 31, 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 #: 13759490
The playback can be accessed through May 22, 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
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com
Additional information can be found on the Company’s website at www.readycapital.com.
READY CAPITAL CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
| (in thousands) | March 31, 2026 | December 31, 2025 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 200,430 | $ | 207,841 | |||||||
| Restricted cash | 38,906 | 39,746 | |||||||||
| Loans, net (including $462 and $737 held at fair value) | 3,350,560 | 3,500,298 | |||||||||
| Loans, held for sale (including $87,198 and $73,094 held at fair value and net of valuation allowance of $74,315 and $67,612) | 360,228 | 585,820 | |||||||||
| Mortgage-backed securities | 31,649 | 34,501 | |||||||||
| Investment in unconsolidated joint ventures (including $5,517 and $5,737 held at fair value) | 167,251 | 161,424 | |||||||||
| Derivative instruments | 4,104 | 6,740 | |||||||||
| Servicing rights | 123,687 | 126,279 | |||||||||
| Real estate owned | 610,215 | 620,225 | |||||||||
| Other assets | 466,383 | 508,238 | |||||||||
| Assets of consolidated VIEs | 960,875 | 1,978,684 | |||||||||
| Total Assets | $ | 6,314,288 | $ | 7,769,796 | |||||||
| Liabilities | |||||||||||
| Secured borrowings | 2,321,443 | 2,788,926 | |||||||||
| Securitized debt obligations of consolidated VIEs, net | 526,535 | 1,174,785 | |||||||||
| Senior secured notes, net | 723,707 | 722,729 | |||||||||
| Corporate debt, net | 536,972 | 652,487 | |||||||||
| Guaranteed loan financing | 501,736 | 524,091 | |||||||||
| Contingent consideration | 20,441 | 18,698 | |||||||||
| Derivative instruments | 948 | 1,432 | |||||||||
| Dividends payable | 3,685 | 3,633 | |||||||||
| Loan participations sold | 56,616 | 56,616 | |||||||||
| Due to third parties | 12,304 | 3,135 | |||||||||
| Accounts payable and other accrued liabilities | 161,201 | 171,636 | |||||||||
| Total Liabilities | $ | 4,865,588 | $ | 6,118,168 | |||||||
| 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, 165,255,559 and 163,010,012 shares issued and outstanding, respectively | 17 | 17 | |||||||||
| Additional paid-in capital | 2,265,534 | 2,264,355 | |||||||||
| Retained deficit | (1,012,927) | (807,522) | |||||||||
| Accumulated other comprehensive loss | (24,476) | (24,196) | |||||||||
| Total Ready Capital Corporation equity | 1,339,526 | 1,544,032 | |||||||||
| Non-controlling interests | 100,813 | 99,235 | |||||||||
| Total Stockholders’ Equity | $ | 1,440,339 | $ | 1,643,267 | |||||||
| Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity | $ | 6,314,288 | $ | 7,769,796 | |||||||
READY CAPITAL CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended March 31, | ||||||||
| (in thousands, except share data) | 2026 | 2025 | ||||||
| Interest income | $ | 81,730 | $ | 154,967 | ||||
| Interest expense | (96,834) | (140,466) | ||||||
| Net interest income before (provision for) recovery of loan losses | $ | (15,104) | $ | 14,501 | ||||
| (Provision for) recovery of loan losses | (70,907) | 109,568 | ||||||
| Net interest income (loss) after provision for loan losses | $ | (86,011) | $ | 124,069 | ||||
| Non-interest income | ||||||||
| Net realized gain (loss) on financial instruments and real estate owned | (60,085) | 10,669 | ||||||
| Net unrealized gain (loss) on financial instruments | (6,920) | (1,750) | ||||||
| Valuation allowance, loans held for sale | (6,557) | (99,718) | ||||||
Servicing income, net of amortization and impairment of $6,587 and $5,294 | 5,421 | 6,456 | ||||||
| Gain (loss) on bargain purchase | — | 102,471 | ||||||
| Income (loss) on unconsolidated joint ventures | 2,059 | (3,982) | ||||||
| Other income | 18,065 | 11,590 | ||||||
| Total non-interest income (expense) | $ | (48,017) | $ | 25,736 | ||||
| Non-interest expense | ||||||||
| Employee compensation and benefits | (23,848) | (21,254) | ||||||
| Allocated employee compensation and benefits from related party | (3,600) | (3,276) | ||||||
| Professional fees | (6,655) | (5,488) | ||||||
| Management fees – related party | (4,076) | (5,577) | ||||||
| Loan servicing expense | (15,674) | (15,844) | ||||||
| Transaction related expenses | (335) | (2,694) | ||||||
| Impairment on real estate | 469 | (2,346) | ||||||
| Other operating expenses | (29,014) | (16,123) | ||||||
| Total non-interest expense | $ | (82,733) | $ | (72,602) | ||||
| Loss from continuing operations before benefit for income taxes | (216,761) | 77,203 | ||||||
| Income tax benefit | 16,674 | 5,207 | ||||||
| Net loss from continuing operations | $ | (200,087) | $ | 82,410 | ||||
| Discontinued operations | ||||||||
| Loss from discontinued operations before income tax benefit | — | (594) | ||||||
| Income tax benefit | — | 149 | ||||||
| Net loss from discontinued operations | $ | — | $ | (445) | ||||
| Net loss | $ | (200,087) | $ | 81,965 | ||||
| Less: Dividends on preferred stock | 1,999 | 1,999 | ||||||
| Less: Net income attributable to non-controlling interest | 1,642 | 2,460 | ||||||
| Net loss attributable to Ready Capital Corporation | $ | (203,728) | $ | 77,506 | ||||
| Earnings per common share from continuing operations - basic | $ | (1.25) | $ | 0.47 | ||||
| Earnings per common share from discontinued operations - basic | $ | 0.00 | $ | 0.00 | ||||
| Total earnings per common share - basic | $ | (1.25) | $ | 0.47 | ||||
| Earnings per common share from continuing operations - diluted | $ | (1.25) | $ | 0.46 | ||||
| Earnings per common share from discontinued operations - diluted | $ | 0.00 | $ | 0.00 | ||||
| Total earnings per common share - diluted | $ | (1.25) | $ | 0.46 | ||||
| Weighted-average shares outstanding | ||||||||
| Basic | 163,674,011 | 165,166,276 | ||||||
| Diluted | 167,650,149 | 167,723,519 | ||||||
| Dividends declared per share of common stock | $ | 0.01 | $ | 0.125 | ||||
READY CAPITAL CORPORATION
UNAUDITED SEGMENT REPORTING
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||
| (in thousands) | LMM Commercial Real Estate | Small Business Lending | Corporate-Other | Consolidated | |||||||||||||||||||
| Interest income | $ | 58,893 | $ | 22,837 | $ | — | $ | 81,730 | |||||||||||||||
| Interest expense | (80,672) | (16,162) | — | (96,834) | |||||||||||||||||||
| Net interest income (loss) before provision for loan losses | $ | (21,779) | $ | 6,675 | $ | — | $ | (15,104) | |||||||||||||||
| Provision for loan losses | (66,523) | (4,384) | — | (70,907) | |||||||||||||||||||
| Net interest income (loss) after provision for loan losses | $ | (88,302) | $ | 2,291 | $ | — | $ | (86,011) | |||||||||||||||
| Non-interest income | |||||||||||||||||||||||
| Net realized gain (loss) on financial instruments and real estate owned | (68,242) | 8,157 | — | (60,085) | |||||||||||||||||||
| Net unrealized gain (loss) on financial instruments | (8,796) | 1,876 | — | (6,920) | |||||||||||||||||||
| Valuation allowance, loans held for sale | (6,557) | — | — | (6,557) | |||||||||||||||||||
| Servicing income, net | 1,597 | 3,824 | — | 5,421 | |||||||||||||||||||
| Income on unconsolidated joint ventures | 2,054 | 5 | — | 2,059 | |||||||||||||||||||
| Other income | 11,940 | 5,191 | 934 | 18,065 | |||||||||||||||||||
| Total non-interest income (loss) | $ | (68,004) | $ | 19,053 | $ | 934 | $ | (48,017) | |||||||||||||||
| Non-interest expense | |||||||||||||||||||||||
| Employee compensation and benefits | (7,649) | (15,323) | (876) | (23,848) | |||||||||||||||||||
| Allocated employee compensation and benefits from related party | (360) | — | (3,240) | (3,600) | |||||||||||||||||||
| Professional fees | (1,476) | (3,476) | (1,703) | (6,655) | |||||||||||||||||||
| Management fees – related party | — | — | (4,076) | (4,076) | |||||||||||||||||||
| Loan servicing expense | (14,573) | (1,101) | — | (15,674) | |||||||||||||||||||
| Transaction related expenses | — | — | (335) | (335) | |||||||||||||||||||
| Recovery (impairment) on real estate | 469 | — | — | 469 | |||||||||||||||||||
| Other operating expenses | (17,350) | (9,312) | (2,352) | (29,014) | |||||||||||||||||||
| Total non-interest expense | $ | (40,939) | $ | (29,212) | $ | (12,582) | $ | (82,733) | |||||||||||||||
| Income (loss) before provision for income taxes | $ | (197,245) | $ | (7,868) | $ | (11,648) | $ | (216,761) | |||||||||||||||
| Total assets | $ | 4,522,372 | $ | 1,293,092 | $ | 498,824 | $ | 6,314,288 | |||||||||||||||
SUPPLEMENTAL FINANCIAL DATA Q1 2026
2 Disclaimer This presentation contains statements that constitute “forward-looking statements,” as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; Ready Capital Corporation (the “Company”) can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company’s expectations include those set forth in the Risk Factors section of the most recent Annual Report on Form 10-K filed with the SEC and other reports filed by the Company with the SEC, copies of which are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. This presentation includes certain non-GAAP financial measures, including Distributable earnings. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures in accordance with GAAP. Please refer to the Appendix for the most recent GAAP information. This presentation also contains market statistics and industry data which are subject to uncertainty and are not necessarily reflective of market conditions. These have been derived from third party sources and have not been independently verified by the Company or its affiliates. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. All data is as of March 31, 2026, unless otherwise noted.
3 First Quarter 2026 Results ■ Net loss1 of $(1.25) per common share ■ Distributable losses2 of $(1.00) per common share ■ Distributable losses before realized losses3 of $(0.33) per common share ■ Declared dividend of $0.01 per common share Performance ■ Total loan portfolio of $4.5 billion ■ Total loan originations4 of $464.3 million including $287.6 million of LMM commercial real estate loans, $110.0 million of SBA 7(a) loans and $28.5 million of USDA loans ■ Loan repayments of $410 million and sales of $1.0 billion Loan Portfolio Capitalization ■ Book value per share of $7.43 ■ Total leverage of 3.0x and recourse leverage ratio6 of 1.8x Business Update ■ Completed the sale of 48 loans totaling $1.0 billion in unpaid principal balance for net proceeds of $177 million after financing paydowns ■ Collapsed the last remaining CLOs, RCMF 2021-FL7, RCMF 2023-FL11 and RCMF 2023-FL12 ■ Retired the outstanding 5.75% Senior Unsecured Notes in February 2026 and 6.20% Senior Unsecured Notes in April 2026
4 CRE Portfolio Review QTD INVESTMENT ROLL ($ in billions) COUNT7 UPB ALLOWANCE CARRY VALUE 60+ DQ STATUS5 WA RISK RATING GROSS YIELD CASH YIELD CORE 949 3.47B 194M 3.25B 14.8% 2.67 5.9% 5.1% NON-CORE 21 224M 77M 146M 90.4% 4.79 0.6% 0.6% TOTAL 970 3.69B 271M 3.40B 18.1% 2.76 5.7% 4.9% LOAN VINTAGE ($ in billions) 0.7 0.9 1.0 0.2 0.3 0.1 0.1 Core Non-Core 2020 and prior 2021 2022 2023 2024 2025 $0.0 $0.4 $0.8 $1.2 4.78 (1.30) 0.07 (0.15) 3.40 Beg CV Sales/ Paydowns Originations Allowance/ Other End CV $3.0 $3.5 $4.0 $4.5 $5.0 306 259 (71) (6) (6) 482 Beg 60+ New 60+ Sales/Payoffs Allowance Other End 60+ $250 $300 $350 $400 $450 $500 $550 $600 60+ DQ CORE MIGRATION ($ in millions)
5 CRE Core Portfolio Overview LOAN PRODUCT8 RISK RATINGCOLLATERAL MODIFICATION STATUS18 HISTORICAL LEVERED YIELD 11.1% 10.9% 11.0% 9.6% 7.0% Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 0% 2% 4% 6% 8% 10% 12% QUARTERLY PORTFOLIO CREDIT MIGRATION Bridge 63% Fixed rate 18% Construction 12% Other 7% Multi-family 71% Industrial 6% Retail 7% Office 4% Land 5% Other 7% 1&2 44% 3 33% 4&5 23% Extensions 30% Modifications 25% Not Modified 45% Q4’25 CV (%) Q1’26 CV (%) CURRENT 85.2% 79.9% 30-59 8.1% 5.3% 60+ 6.7% 14.8% TOTAL 100.0% 100.0% ACCRUAL 76.6% 63.7% NON-ACCRUAL 23.4% 36.3% TOTAL 100.0% 100.0%
6 CRE Non-Core Portfolio Overview ASSET MANAGEMENT STRATEGY NON-CORE EXIT TIMELINE ($ in millions) Bridge 77% Construction 14% Fixed 9% LOAN PRODUCT RISK RATINGCOLLATERAL Multi-family 58% Hotel 11% Mixed Use 11% Office 8% Other 12% 4 21% 5 79% QTD ROLL ($ in thousands) $222 $(46) $(30) $146 Beginning CV Exits REO/Write- downs Ending CV $100 $150 $200 $250 21 loans 27 loans $55 $31 $1 $46 $13 Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 and beyond $— $20 $40 $60 STRATEGY LOAN COUNT CARRY VALUE (%) Liquidation pending commencement of marketing 9 32% Actively marketed for sale 10 68% Modified/performing 2 —% Total 21 100% 3 loans 3 loans
7 Real Estate Owned Exposure # OF ASSETS CARRY VALUE PORTLAND MIXED USE 1 $407M OPERATE TO SELL 4 $55M SELL 14 $107M UNDER CONTRACT 9 $57M TOTAL 28 $626M Land 11% Multi-family 14% Mixed use 69% Other 6% Collateral Texas 11% California 7% Colorado 3% Oregon 69% Other 10% Geography 635,513 25,818 (31,551) (4,277) 625,503 Beginning Balance REO acquired via foreclosure/ capitalized costs Liquidations Depreciation/ Impairment Ending Balance 600,000 650,000 700,000 QUARTERLY REO MIGRATION (in thousands)REO DETAILS19
RITZ-CARLTON RESIDENCES • 132 Ritz-Carlton branded condominium residences • Located on floors 21 – 35 • Avg. Unit SF: 1,639 • Amenities: • Balcony or terrace • Dedicated lobby • Hotel amenity access • Private rooftop terrace (8th floor) Key Metrics (Sales to Date)20 • # of units sold: 43 • % of units sold: 33% • Avg SF/unit sold: 1,537 • Avg Sale Price: $1.384M • Avg Sale Price/SF: $900 8 Portland OR, Mixed-Use • The four-phase condo sellout strategy is ongoing, whereby unit pricing will increase in subsequent phases. Thirty-two units have been sold YTD ($745 WA PPSF). • Twenty-three of the twenty-five fully reserved Phase 1 condos have sold year-to-date. One unit converted from Reservation Agreement to Purchase Agreement with a hard deposit and one Phase 1 unit remains under reservation with a refundable deposit. • Phase 2 (31 units) launched in February 2026. Nine Phase 2 units sold year-to-date, and two units are under Purchase Agreement to date. • Hotel revenue performance has improved year-over-year, with total March 2026 TTM RevPAR up 8% to $372, driven by a 5% increase in occupancy to 46% and 13% increase in Room RevPAR to $221 compared to March 2025 TTM. • Marriott’s targeted room rate reduction strategy implemented in Q4 2025 continues to yield RevPAR improvement, with January, February and March 2026 Room RevPAR up 23%, 31%, and 22%, respectively, compared to the SPLY. QUARTERLY UPDATES RITZ-CARLTON HOTEL OFFICE/RETAIL • 251 rooms (floors 8 – 20) • Amenities: • Lobby lounge • Bellpine restaurant and bar; Meadowrue restaurant • Ritz-Carlton Club • Meeting & Event space (12,222 sf) • Business center • Fitness center, full-service spa and swimming pool • Class A office: 158,577 sf (floors 3– 7) • Office Tenants: • Davis Wright Tremaine LLP • Fisher & Phillips • Banneker Partners • Retail: 10,638 sf (floors 1– 2) • Retail Tenants: • The Flock (food hall) • Mahler Jewelers Key Metrics (3/31/2026 TTM) • Occupancy: 45.8% • ADR: $482 • Room RevPAR: $221 • Total RevPAR: $372 Key Metrics (3/31/2026 Rent Roll) • Total Occupancy: 28% • Office Occupancy: 23% • WA Office Rent/SF: $38 NNN • Office WAULT: 9 yrs. • Retail Occupancy: 100% • WA Retail Rent/SF: $46 NNN • Retail WAULT: 11 yrs.
9 Small Business Lending Portfolio Review* QTD SALES BY PROGRAM PROGRAM COUNT15 UPB ALLOWANCE CARRY VALUE 60+ DQ STATUS5 WA RISK RATING GROSS YIELD CASH YIELD LARGE 1,849 1.01B 22M 977M 3.0% 1.74 8.1% 7.8% SMALL/MICRO 5,941 143M 17M 123M 3.5% 1.37 10.9% 9.9% USDA 36 37M 1 34M —% 2.60 9.6% 8.4% WORKING CAPITAL** 165 16M — 1M 20.3% 2.72 12.9% 12.9% TOTAL 7,991 1.21B 40M 1.14B 3.0% 1.73 8.5% 8.1% COLLATERAL Hotel 17% Eating Place 17% Retail 14%Doctors 6% Other 46% PROGRAM SALES PROCEEDS % PREMIUM LARGE $47M $51M 9.9% SMALL/MICRO $21M $23M 11.4% USDA $9M $10M 9.5% WORKING CAPITAL $38M $39M 1.2% *Includes assets offset by guaranteed loan financing liabilities of $502 million. **Purchased as part of the Funding Circle acquisition. 57% 60+ days delinquent at the time of purchase.
$28.9 $89.4 $171.7 $39.1 $58.0 $10.7 $173.4 $81.2 $145.4 $115.9 $343.3 $216.1 $173.5 $84.4 $110.0 $2.7 $96.5 $67.3 $18.4 $28.5 $41.4 $46.1 $41.9 $37.0 $38.2 Bridge Bridge Off- Balance Sheet Construction Freddie Mac SBA USDA Working Capital Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 0 200 400 600 10 Quarterly Investment Activity $466.1M $421.9M $374.6M $464.3 $532.2M 4
11 Earnings Profile Gain on sale, net of variable costs: SBA 7(a): $5M USDA: $2M Business Loans: $2M Freddie Mac: $3M LMM Loans: $1M Primary/Special Servicing Fees: $(8)M Advances: $(7)M Balance (in thousands) Annualized ROE Contribution Recurring Revenue: Net interest loss $ (11,709) (3.4)% Gain on sale, net of variable costs 12,519 3.7% Other recurring revenue 15,369 4.5% Total recurring revenue $ 16,179 4.8% Operating Expenses: Employee compensation & benefits (23,946) (7.0)% Fixed operating costs (18,384) (5.4)% Servicing expenses (15,406) (4.5)% Portland mixed-use asset (6,069) (1.8)% Investment advisory fees (4,076) (1.2)% Tax 156 —% Total operating costs and tax $ (67,725) (19.9)% Net loss from normal operations, net of tax $ (51,546) (15.1)% Other Items included in Earnings: Realized losses $ (75,285) (22.0)% Charge off of specific loan loss reserve (44,235) (12.9)% CECL & valuation allowances (32,760) (9.6)% Mark-to-market (8,629) (2.5)% Non-cash compensation (1,479) (0.4)% Bargain purchase gain adj net of costs (335) (0.1)% Other income (expenses) (2,336) (0.7)% Tax 16,518 4.8% Dividends on preferred stock (1,999) (0.6)% Total other items included in earnings $ (150,540) (44.0)% Net loss including dividends on preferred stock $ (202,086) (59.1)% Servicing Income: $6M Income from Unconsolidated JV's: $2M Realized gains on REO sales: $2M Realized gains on MBS sales: $3M Other Income: $2M Ritz Depreciation: $(2)M Professional Fees: $(6)M Technology Expense: $(4)M Depreciation and amortization: $(2)M Rent and property tax exp: $(1)M Other operating expenses: $(5)M Net operating income (loss): $(3)M Interest expense: $(3)M
12 Operating Segment Contribution16 LMM CRE TOTAL OPERATING EXPENSES EQUITY ALLOCATION17 EPS CONTRIBUTION RECURRING REVENUE DISTRIBUTABLE RETURN BEFORE REALIZED LOSSES9 ON ALLOCATED EQUITY DISTRIBUTABLE RETURN BEFORE REALIZED LOSSES9 CORPORATE & OTHER SMALL BUSINESS LENDINGCORE NON-CORE & REO $4.5B / 69% $0.8B / 12% $0.8B / 12% $0.5B / 7% $6.6B / 100% 66% 21% 13% N/A 100% $(0.89) $(0.09) $(0.03) $(0.24) $(1.25) $(0.02) $(0.07) $(0.01) $(0.23) $(0.33) (1.1)% (3.5)% (0.5)% (9.9)% (15.0)% (1.0)% (9.7)% (2.0)% N/A (15.0)% $26.0M $(6.0)M $21.0M $(24.8)M $16.2M $(31.5)M $(2.7)M $(22.7)M $(10.8)M $(67.7)M AVERAGE TOTAL ASSETS ($ / %) DISTRIBUTABLE EPS BEFORE REALIZED LOSSES3
13 Book Value per Share $8.79 $(0.47) $(0.42) $(0.36) $(0.11) $7.43 Q4'25 GAAP BVPS CECL and Valuation Allowance Losses from loan sales Losses from operations Other Q1'26 GAAP BVPS $7.00 $7.50 $8.00 $8.50 $9.00
14 Capitalization Debt Balance ($ in millions) Leverage Ratio PPPLF $4 0.0x Securitized Debt Obligations $527 0.4x Non-Recourse Secured Borrowings $1,128 0.8x Recourse Secured Borrowings $1,193 0.9x Corporate Debt $1,261 0.9x UNENCUMBERED ASSET POOL 27% 20% 17% 11% 25% Unrestricted cash Loans Servicing rights REO Other Assets HIGHLIGHTS • 1.4x unencumbered assets to unsecured debt • $1.9 billion in available warehouse borrowing capacity across 13 counterparties • Limited usage of securities repo financing at 3.0% of total debt • Full mark-to-market liabilities and credit mark-to-market liabilities represent 47% of total debt $0.7B UNENCUMBERED ASSET POOL
APPENDIX Additional Financial Information
16 LMM CRE Loan Portfolio - Migration CONTRACTUAL STATUS (5) CORE Q2’25 Q3’25 Q4’25 Q1’26 CURRENT 90.4% 90.9% 85.2% 79.9% 30-59 DAYS PAST DUE 5.0% 3.2% 8.1% 5.3% 60+ DAYS PAST DUE 4.6% 5.9% 6.7% 14.8% NON-CORE Q2’25 Q3’25 Q4’25 Q1’26 CURRENT 30.0% 50.4% 22.3% 9.6% 30-59 DAYS PAST DUE 2.4% 3.0% —% —% 60+ DAYS PAST DUE 67.6% 46.6% 77.7% 90.4% ACCRUAL STATUS (5) CORE Q2’25 Q3’25 Q4’25 Q1’26 ACCRUAL 94.8% 95.6% 76.6% 63.7% NON-ACCRUAL 5.2% 4.4% 23.4% 36.3% NON-CORE Q2’25 Q3’25 Q4’25 Q1’26 ACCRUAL 11.6% 42.8% —% 0.1% NON-ACCRUAL 88.4% 57.2% 100.0% 99.9% RISK RATING (5) CORE Q2’25 Q3’25 Q4’25 Q1’26 1 & 2 56.5% 44.0% 43.4% 43.5% 3 38.2% 50.5% 44.3% 33.4% 4 1.7% 4.1% 10.5% 11.5% 5 3.6% 1.4% 1.8% 11.6% NON-CORE Q2’25 Q3’25 Q4’25 Q1’26 1 & 2 2.4% 9.2% 10.7% 0.1% 3 35.8% 26.6% 6.5% —% 4 3.8% 13.4% 24.8% 20.9% 5 58.0% 50.8% 58.0% 79.0%
17 Financial Snapshot ($ in thousands, except share data) Investment Type Average Carrying Value Gross Yield Average Debt Balance Debt Cost Levered Yield LMM CRE $ 4,510,615 5.7 % $ 3,078,590 7.2 % 2.4 % SBL $ 697,334 21.6 % $ 399,563 13.0 % 33.7 % Total $ 5,207,949 7.8 % $ 3,478,153 7.8 % 7.7 % Book Equity Value Metrics Common Stockholders' equity $ 1,228,148 Total Common Shares outstanding 165,255,559 Net Book Value per Common Share $7.43 Loan Portfolio Metrics % Fixed vs Floating Rate 20% / 80% % Originated vs Acquired 92% / 8% Weighted Average LTV - LMM CRE 81% Weighted Average LTV - SBL 97 % Q1 2026 Earnings Data Metrics Net loss | Distributable loss before realized losses | Distributable loss $(200,087) | $(49,208) | $(159,834) EPS - Basic and diluted $(1.25) | $(1.25) Distributable EPS - Basic and diluted $(1.00) | $(1.00) Distributable EPS before realized losses - Basic and diluted $(0.33) | $(0.33) ROE per Common Share (59.0) % Distributable ROE per Common Share (47.3) % Distributable ROE before realized losses per Common Share (15.0) % Dividend Yield 2.5 % Servicing Portfolio Metrics SBA - UPB $ 1,902,485 SBA - carrying value $ 39,971 Multi-family - UPB $ 6,269,434 Multi-family - carrying value $ 60,008 USDA - UPB $ 698,288 USDA - carrying value $ 20,767 Small business loans - UPB $ 398,679 Small business loans - carrying value $ 2,941 10 11 12 13 13 14
18 Balance Sheet by Quarter (in thousands) 3/31/2025 6/30/2025 9/30/2025 12/31/2025 3/31/2026 Assets Cash and cash equivalents $ 205,917 $ 162,935 $ 147,505 $ 207,841 $ 200,430 Restricted cash 39,603 56,769 44,491 39,746 38,906 Loans, net 4,354,017 5,066,694 4,360,501 3,500,298 3,350,560 Loans, held for sale 528,726 632,784 163,792 585,820 360,228 Mortgage-backed securities 31,415 32,310 33,105 34,501 31,649 Investment in unconsolidated joint ventures 170,920 169,369 178,840 161,424 167,251 Derivative instruments 6,907 5,754 5,295 6,740 4,104 Servicing rights 129,814 124,283 126,966 126,279 123,687 Real estate owned 199,910 199,790 632,985 620,225 610,215 Other assets 399,702 462,711 472,516 508,238 466,383 Assets of consolidated VIEs 3,723,738 2,395,398 2,166,105 1,978,684 960,875 Assets held for sale 185,782 — — — — Total Assets $ 9,976,451 $ 9,308,797 $ 8,332,101 $ 7,769,796 $ 6,314,288 Liabilities Secured borrowings 2,713,415 3,506,670 2,879,172 2,788,926 2,321,443 Securitized debt obligations of consolidated VIEs, net 2,574,139 1,513,297 1,293,778 1,174,785 526,535 Senior secured notes and Corporate debt, net 1,488,666 1,387,029 1,387,775 1,375,216 1,260,679 Guaranteed loan financing 668,847 629,380 565,883 524,091 501,736 Contingent consideration 15,982 17,189 18,385 18,698 20,441 Derivative instruments 575 1,986 1,627 1,432 948 Dividends payable 23,929 22,917 22,602 3,633 3,685 Loan participations sold 98,128 101,863 102,987 56,616 56,616 Due to third parties 1,071 9,791 9,927 3,135 12,304 Accounts payable and other accrued liabilities 185,533 184,652 166,406 171,636 161,201 Liabilities held for sale 156,614 — — — — Total Liabilities $ 7,926,899 $ 7,374,774 $ 6,448,542 $ 6,118,168 $ 4,865,588 Preferred stock Series C 8,361 8,361 8,361 8,361 8,361 Stockholders’ Equity Preferred stock 111,378 111,378 111,378 111,378 111,378 Common stock 17 17 17 17 17 Additional paid-in capital 2,302,101 2,267,540 2,257,078 2,264,355 2,265,534 Retained deficit (450,276) (528,524) (569,709) (807,522) (1,012,927) Accumulated other comprehensive loss (21,673) (23,293) (24,096) (24,196) (24,476) Total Ready Capital Corporation equity 1,941,547 1,827,118 1,774,668 1,544,032 1,339,526 Non-controlling interests 99,644 98,544 100,530 99,235 100,813 Total Stockholders’ Equity $ 2,041,191 $ 1,925,662 $ 1,875,198 $ 1,643,267 $ 1,440,339 Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity $ 9,976,451 $ 9,308,797 $ 8,332,101 $ 7,769,796 $ 6,314,288 Book Value per Share $ 10.61 $ 10.44 $ 10.28 $ 8.79 $ 7.43
19 Statement of Operations by Quarter (In thousands, except share data) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Interest income $ 154,967 $ 152,735 $ 137,491 $ 123,973 $ 81,730 Interest expense (140,466) (135,837) (126,971) (110,851) (96,834) Net interest income before (provision for) recovery of loan losses $ 14,501 $ 16,898 $ 10,520 $ 13,122 $ (15,104) Recovery of (provision for) loan losses 109,568 (8,640) (37,977) (149,989) (70,907) Net interest income after (provision for) recovery of loan losses $ 124,069 $ 8,258 $ (27,457) $ (136,867) $ (86,011) Non-interest income Net realized gain (loss) on financial instruments and real estate owned 10,669 18,214 (160,396) (10,599) (60,085) Net unrealized gain (loss) on financial instruments (1,750) (1,614) 2,914 (12,703) (6,920) Valuation (allowance) recovery, loans held for sale (99,718) (39,746) 178,225 (23,318) (6,557) Servicing income, net of amortization and impairment 6,456 (304) 7,509 5,042 5,421 Income (loss) on unconsolidated joint ventures (3,982) (144) 7,417 1,271 2,059 Gain (loss) on bargain purchase 102,471 (14,381) 24,472 (3,013) — Other income 11,590 11,304 14,773 16,049 18,065 Total non-interest income (expense) $ 25,736 $ (26,671) $ 74,914 $ (27,271) $ (48,017) Non-interest expense Employee compensation and benefits (21,254) (23,159) (21,151) (23,923) (23,848) Allocated employee compensation and benefits from related party (3,276) (3,600) (3,602) (4,350) (3,600) Professional fees (5,488) (6,368) (6,008) (12,973) (6,655) Management fees – related party (5,577) (5,072) (5,156) (4,543) (4,076) Loan servicing expense (15,844) (11,038) (9,771) (4,605) (15,674) Transaction related expenses (2,694) (639) (1,910) (807) (335) Impairment on real estate (2,346) (4,268) (1,862) (15,027) 469 Other operating expenses (16,123) (16,133) (24,879) (33,821) (29,014) Total non-interest expense $ (72,602) $ (70,277) $ (74,339) $ (100,049) $ (82,733) Income (loss) from continuing operations before income tax benefit $ 77,203 $ (88,690) $ (26,882) $ (264,187) $ (216,761) Income tax benefit 5,207 39,939 9,935 31,622 16,674 Net income (loss) from continuing operations $ 82,410 $ (48,751) $ (16,947) $ (232,565) $ (200,087) Discontinued operations Income (loss) from discontinued operations before benefit (provision) for income taxes $ (594) $ (6,567) $ 280 $ (63) $ — Income tax benefit (provision) 149 1,641 (70) 16 — Net income (loss) from discontinued operations $ (445) $ (4,926) $ 210 $ (47) $ — Net income (loss) $ 81,965 $ (53,677) $ (16,737) $ (232,612) $ (200,087) Less: Dividends on preferred stock 1,999 1,999 1,999 1,999 1,999 Less: Net income attributable to non-controlling interest 2,460 1,814 2,008 1,572 1,642 Net income (loss) attributable to Ready Capital Corporation $ 77,506 $ (57,490) $ (20,744) $ (236,183) $ (203,728) Earnings per common share from continuing operations - basic $ 0.47 $ (0.31) $ (0.13) $ (1.46) $ (1.25) Earnings per common share from discontinued operations - basic $ 0.00 $ (0.03) $ 0.00 $ 0.00 $ 0.00 Earnings per common share from continuing operations - diluted $ 0.46 $ (0.31) $ (0.13) $ (1.46) $ (1.25) Earnings per common share from discontinued operations - diluted $ 0.00 $ (0.03) $ 0.00 $ 0.00 $ 0.00 Weighted-average shares outstanding - Basic 165,166,276 167,749,917 163,574,703 161,734,869 163,674,011 Weighted-average shares outstanding - Diluted 167,723,519 170,673,088 165,873,807 164,450,230 167,650,149 Dividends declared per share of common stock $ 0.125 $ 0.125 $ 0.125 $ 0.01 $ 0.01
20 Distributable Earnings Reconciliation by Quarter 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. We calculate Distributable earnings as GAAP net income (loss) excluding the following: i) any unrealized gains or losses on certain MBS not retained by us as part of our loan origination businesses ii) any realized gains or losses on sales of certain MBS iii) any unrealized gains or losses on Residential MSRs from discontinued operations iv) any unrealized change in current expected credit loss reserve and valuation allowances v) any unrealized gains or losses on de-designated cash flow hedges vi) any unrealized gains or losses on foreign exchange hedges vii) any unrealized gains or losses on certain unconsolidated joint ventures viii) any non-cash compensation expense related to stock-based incentive plan ix) any unrealized gains or losses on preferred equity, at fair value x) any unrealized gain or losses or other non-cash items related to real estate owned xi) one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses 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. In addition, in calculating Distributable Earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains or losses on residential MSRs, held at fair value from discontinued operations. In calculating Distributable Earnings, the Company does not exclude realized gains or losses on either 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 90% of its REIT taxable income (including certain items of non-cash income), determined without regard to the deduction for dividends paid and excluding net capital gain. There are certain items, including net income generated from the creation of MSRs, that are included in distributable earnings but are not included in the calculation of the current year’s taxable income. These differences may result in certain items that are recognized in the current period’s calculation of distributable earnings not being included in taxable income, and thus not subject to the REIT dividend distribution requirement until future years. (In thousands, except share data) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Net Income (loss) $ 81,965 $ (53,677) $ (16,737) $ (232,612) $ (200,087) Reconciling items: Unrealized (gain) loss on MSR - discontinued operations $ 8,952 $ — $ — $ — $ — Unrealized (gain) loss on joint ventures 5,639 1,019 (4,336) 523 (1,137) Increase (decrease) in CECL reserve (112,127) 487 32,844 113,974 26,673 Increase (decrease) in valuation allowance 99,718 39,746 (178,225) 23,318 6,557 Non-recurring REO impairment 2,346 4,418 1,862 15,027 (469) Non-cash compensation 1,785 1,634 1,591 797 1,629 Unrealized (gain) loss on preferred equity, at fair value — 4,227 (1,949) 10,645 7,236 Merger transaction costs and other non-recurring expenses 2,993 3,661 2,220 3,102 654 (Gain) loss on bargain purchase (102,471) 14,381 (24,472) 3,013 — Depreciation and amortization on real estate owned — — 1,100 1,712 1,576 Realized losses on sale of investments 20,084 8,896 188,512 64,987 119,520 Total reconciling items $ (73,081) $ 78,469 $ 19,147 $ 237,098 $ 162,239 Income tax adjustments (4,744) (37,496) (4,580) (14,556) (11,360) Distributable earnings (loss) before realized losses $ 4,140 $ (12,704) $ (2,170) $ (10,070) $ (49,208) Realized losses on sale of investments, net of tax (15,524) (7,088) (147,422) (55,209) (110,626) Distributable earnings (loss) $ (11,384) $ (19,792) $ (149,592) $ (65,279) $ (159,834) Less: Distributable earnings attributable to non-controlling interests 1,985 1,990 1,473 1,926 1,725 Less: Income attributable to participating shares 229 215 211 16 60 Less: Dividends on preferred stock 1,999 1,999 1,999 1,999 1,999 Distributable loss attributable to common stockholders $ (15,597) $ (23,996) $ (153,275) $ (69,220) $ (163,618) Distributable earnings (loss) before realized losses on investments, net of tax per common share - basic $ 0.00 $ (0.10) $ (0.04) $ (0.09) $ (0.33) Distributable loss per common share - basic $ (0.09) $ (0.14) $ (0.94) $ (0.43) $ (1.00) Weighted average common shares outstanding 165,166,276 167,749,917 163,574,703 161,734,869 163,674,011
21 Loan Portfolio – Risk Rating Criteria BUCKET 1: Very Low Risk of Loss: New origination or current with strong credit metrics (LTV/DSCR/DY). No expected losses. BUCKET 2: Low Risk of Loss: Current with maturity > 6 months. Lower credit metrics with possibility of inclusion on CREFC watchlist. No expected losses. BUCKET 3: Medium Risk of Loss: Current with near term maturities or in forbearance. Loss unlikely with no specific reserves booked. BUCKET 4: Higher Risk: Loan delinquent or in maturity default. Potential issues with sponsor or business plans. Minimal losses possible and adequately reserved in current period. BUCKET 5: Highest risk: Loan in default or special servicing. Specific losses identified and adequately reserved for in current period.
22 Footnotes 1 . Before income attributable to participating shares of $2.1 million and non-controlling interest of $1.6 million 2 . Before income attributable to participating shares of $2.1 million and non-controlling interest of $1.7 million. Refer to the “Distributable Earnings Reconciliation by Quarter” slide for a reconciliation of GAAP Net Income to Distributable Earnings 3 . Before income attributable to participating shares of $2.1 million, non-controlling interest of $1.9 million and before certain charge-offs and losses on sales of real estate owned assets and LMM loans. Refer to the “Distributable Earnings Reconciliation by Quarter” slide for a reconciliation of GAAP Net Income to Distributable Earnings 4 . Represents fully committed amounts 5 . Calculated based on carrying value 6 . Recourse leverage ratio excludes $1.1 billion of secured borrowings that are non-recourse to the Company 7 . Excludes joint venture investments and preferred equity investments 8 . Loans with the “Other” classification are generally LMM acquired loans that have nonconforming characteristics for the Fixed rate, Bridge, or Construction categories 9 . Distributable return on equity from continuing operations before realized losses is an annualized percentage equal to distributable earnings over the average monthly total stockholders’ equity for the period before certain charge-offs and losses on sales of real estate owned assets and LMM loans. Refer to the “Distributable Earnings Reconciliation by Quarter” slide for a reconciliation of GAAP Net Income to Distributable Earnings 10 . Average carrying value includes average quarterly carrying value of loan and servicing asset balances. 11 . Gross yields include interest income, accretion of discount, MSR creation, income from our unconsolidated joint venture, realized gains (losses) on loans held for sale, unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization of deferred financing costs on an annualized basis. 12 . The Company finances the assets included in the Investment Type through securitizations, repurchase agreements, warehouse facilities and bank credit facilities. Interest expense is calculated based on interest expense and deferred financing amortization on an annualized basis. 13 . Loan-to-value (LTV) is calculated by dividing the current unpaid principal balance by the most recent collateral value received. The most recent value for performing loans is often the third-party as-is valuation utilized during the original underwriting process. 14 . Q1 dividend yield for the period is based on the 3/31/2026 closing share price of $1.62 15 . Includes the loans which are offset by $502M of guaranteed loan financings 16 . Respective balances are based on quarterly averages 17 . Corporate debt is allocated for purposes of determining equity allocation 18 . Represents loans that are under modifications and carried on the consolidated balance sheet as of the period end. 19 . Strategy as of May 1, 2026 20 . Strategy as of May 6, 2026
FAQ
How did Ready Capital (RC) perform financially in Q1 2026?
Ready Capital reported a GAAP net loss of $200.1 million, or $(1.25) per common share, for Q1 2026. Distributable loss was $159.8 million, or $(1.00) per share, reflecting realized losses on asset sales and higher credit provisions during its balance sheet repositioning.
How much debt did Ready Capital repay as part of its 2026 repositioning?
Year-to-date, Ready Capital generated $1.4 billion of cash from loan sales and runoff and used it to pay down over $1.1 billion of asset-level financing. It also retired $184 million of corporate debt, including 5.75% and 6.20% senior unsecured notes maturing in 2026.
What are the key credit trends in Ready Capital’s core CRE portfolio?
In the core commercial real estate portfolio, 60+ day delinquencies rose to 14.8% of carrying value. Management notes most of this increase relates to loan sales tied to the repositioning strategy and aggressive asset management aimed at accelerating loan liquidations and de-risking the portfolio.
What is Ready Capital’s leverage and liquidity position after Q1 2026?
After Q1 2026, Ready Capital reported total leverage of 3.0x and recourse leverage of 1.8x. The company held $200 million in cash and $730 million of unencumbered assets, alongside $1.9 billion of available warehouse borrowing capacity across 13 counterparties, enhancing its funding flexibility.
Did Ready Capital declare a common stock dividend for Q1 2026?
Yes. Ready Capital declared a common stock dividend of $0.01 per share for Q1 2026. This represents a lower payout compared with the $0.125 per share dividend declared for Q1 2025, aligning with the company’s focus on capital preservation during its balance sheet repositioning.