Ready Capital Corporation Reports Fourth Quarter 2024 Results and Declares First Quarter 2025 Dividends
Ready Capital (NYSE: RC) reported challenging Q4 2024 results with a GAAP loss per share of $(1.80) and distributable loss per share of $(0.03). The company declared a reduced quarterly dividend of $0.125 per share for Q1 2025.
Key Q4 highlights include $436 million in LMM commercial real estate originations and $348 million in Small Business Lending originations. Book value stood at $10.61 per share. The company repurchased 5.8 million shares at an average price of $7.35.
For full-year 2024, Ready Capital posted a GAAP loss of $(2.52) per share and achieved total LMM and SBL originations of $2.4 billion. The company has taken strategic actions including fully reserving non-performing CRE loans and adjusting dividends to preserve capital for reinvestment and share repurchases.
Subsequently, the Board approved a new $150 million stock repurchase program, and the company closed a $220 million private placement of 9.375% Senior Secured Notes due 2028.
Ready Capital (NYSE: RC) ha riportato risultati del Q4 2024 difficili, con una perdita per azione GAAP di $(1.80) e una perdita distribuibile per azione di $(0.03). L'azienda ha dichiarato un dividendo trimestrale ridotto di $0.125 per azione per il Q1 2025.
Tra i principali punti salienti del Q4 ci sono $436 milioni in origini di immobili commerciali LMM e $348 milioni in origini di prestiti per piccole imprese. Il valore contabile si attestava a $10.61 per azione. L'azienda ha riacquistato 5.8 milioni di azioni a un prezzo medio di $7.35.
Per l'intero anno 2024, Ready Capital ha registrato una perdita GAAP di $(2.52) per azione e ha raggiunto origini totali di LMM e SBL di $2.4 miliardi. L'azienda ha intrapreso azioni strategiche, tra cui la riserva totale dei prestiti CRE non performanti e l'aggiustamento dei dividendi per preservare il capitale per il reinvestimento e il riacquisto delle azioni.
Successivamente, il Consiglio ha approvato un nuovo programma di riacquisto di azioni da $150 milioni e l'azienda ha chiuso un collocamento privato di $220 milioni di Note Senior Secured al 9.375% in scadenza nel 2028.
Ready Capital (NYSE: RC) reportó resultados desafiantes en el Q4 2024, con una pérdida por acción GAAP de $(1.80) y una pérdida distribuible por acción de $(0.03). La empresa declaró un dividendo trimestral reducido de $0.125 por acción para el Q1 2025.
Los puntos destacados clave del Q4 incluyen $436 millones en originaciones de bienes raíces comerciales LMM y $348 millones en originaciones de préstamos para pequeñas empresas. El valor contable se situó en $10.61 por acción. La empresa recompró 5.8 millones de acciones a un precio promedio de $7.35.
Para el año completo 2024, Ready Capital registró una pérdida GAAP de $(2.52) por acción y logró originaciones totales de LMM y SBL de $2.4 mil millones. La empresa ha tomado acciones estratégicas, incluyendo la reserva total de préstamos CRE no rentables y el ajuste de dividendos para preservar capital para reinversiones y recompras de acciones.
Posteriormente, la Junta aprobó un nuevo programa de recompra de acciones de $150 millones, y la empresa cerró un colocación privada de $220 millones de Notas Senior Secured al 9.375% con vencimiento en 2028.
레디 캐피탈 (NYSE: RC)는 2024년 4분기 어려운 실적을 보고했으며, GAAP 기준 주당 손실은 $(1.80), 분배 가능한 주당 손실은 $(0.03)입니다. 회사는 2025년 1분기 주당 $0.125의 감소된 분기 배당금을 선언했습니다.
4분기의 주요 하이라이트에는 $436백만의 LMM 상업용 부동산 기원과 $348백만의 소기업 대출 기원이 포함됩니다. 장부 가치는 주당 $10.61로 나타났습니다. 회사는 평균 가격 $7.35에 580만 주를 재매입했습니다.
2024년 전체 연도 동안 레디 캐피탈은 GAAP 기준 주당 $(2.52)의 손실을 기록했으며, 총 LMM 및 SBL 기원액이 $24억에 달했습니다. 회사는 비수익 CRE 대출에 대한 전액 충당금 설정 및 재투자 및 주식 재매입을 위한 자본 보존을 위한 배당금 조정 등 전략적 조치를 취했습니다.
그 후, 이사회는 새로운 $150백만 주식 재매입 프로그램을 승인했으며, 회사는 2028년 만기 9.375%의 Senior Secured Notes의 $220백만 사모 배치를 마감했습니다.
Ready Capital (NYSE: RC) a signalé des résultats difficiles pour le Q4 2024, avec une perte par action GAAP de $(1.80) et une perte distribuable par action de $(0.03). La société a déclaré un dividende trimestriel réduit de $0.125 par action pour le Q1 2025.
Les points forts du Q4 incluent $436 millions en origines de biens immobiliers commerciaux LMM et $348 millions en origines de prêts pour petites entreprises. La valeur comptable s'élevait à $10.61 par action. L'entreprise a racheté 5,8 millions d'actions à un prix moyen de $7.35.
Pour l'année complète 2024, Ready Capital a enregistré une perte GAAP de $(2.52) par action et a atteint des origines totales de LMM et SBL de $2.4 milliards. L'entreprise a pris des mesures stratégiques, y compris la constitution d'une réserve totale pour les prêts CRE non performants et l'ajustement des dividendes pour préserver le capital pour le réinvestissement et les rachats d'actions.
Par la suite, le Conseil a approuvé un nouveau programme de rachat d'actions de $150 millions, et l'entreprise a clôturé un placement privé de $220 millions de Senior Secured Notes à 9,375% arrivant à échéance en 2028.
Ready Capital (NYSE: RC) hat herausfordernde Ergebnisse für das 4. Quartal 2024 gemeldet, mit einem GAAP-Verlust pro Aktie von $(1.80) und einem distributiven Verlust pro Aktie von $(0.03). Das Unternehmen erklärte eine reduzierte vierteljährliche Dividende von $0.125 pro Aktie für das 1. Quartal 2025.
Wichtige Höhepunkte des 4. Quartals umfassen $436 Millionen in LMM-Immobilienfinanzierungen und $348 Millionen in Finanzierungen für kleine Unternehmen. Der Buchwert betrug $10.61 pro Aktie. Das Unternehmen hat 5,8 Millionen Aktien zu einem Durchschnittspreis von $7.35 zurückgekauft.
Für das gesamte Jahr 2024 verzeichnete Ready Capital einen GAAP-Verlust von $(2.52) pro Aktie und erreichte insgesamt LMM- und SBL-Finanzierungen in Höhe von $2,4 Milliarden. Das Unternehmen hat strategische Maßnahmen ergriffen, darunter die vollständige Rückstellung für notleidende CRE-Darlehen und die Anpassung der Dividenden zur Kapitalerhaltung für Reinvestitionen und Aktienrückkäufe.
In der Folge genehmigte der Vorstand ein neues Aktienrückkaufprogramm über $150 Millionen, und das Unternehmen schloss eine Privatplatzierung von $220 Millionen an 9,375% Senior Secured Notes mit Fälligkeit im Jahr 2028 ab.
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Insights
Ready Capital's Q4 2024 results reveal significant challenges, with a GAAP loss per share of $(1.80) and a distributable loss per share of $(0.03). The company has taken decisive but difficult measures, fully reserving for all non-performing loans in their CRE portfolio—a necessary step that impacts short-term book value but potentially accelerates recovery in net interest margin.
Most notably, management has reduced the quarterly dividend by approximately 46% to $0.125 per share, aligning with anticipated cash earnings. This substantial dividend cut signals management's prioritization of capital preservation for reinvestment and share repurchases over maintaining unsustainable payouts.
The mixed operational performance shows a clear divergence between segments: Small Business Lending performed well with $348 million in originations, while the multi-family focused business struggled against macroeconomic headwinds. Total LMM commercial real estate originations reached $436 million for the quarter.
The company's strategic positioning includes aggressive capital management—RC repurchased 5.8 million shares at an average $7.35 per share in Q4 and has authorized a new $150 million buyback program. Additionally, their $130 million senior notes issuance and subsequent $220 million secured notes placement indicate a comprehensive balance sheet restructuring.
With book value at $10.61 per share, the current market price represents a ~35% discount to book value, reflecting investor skepticism about the recovery timeline but potentially offering value if management successfully executes on their strategy to accelerate non-performing loan resolutions and redeploy capital into higher-yielding originations.
Ready Capital's Q4 results represent a critical inflection point for the company. The significant GAAP loss of $(1.80) per share masks the underlying transition occurring in their portfolio. Management is essentially performing surgery on their balance sheet—painful in the short term but potentially beneficial for long-term health.
The decision to fully reserve against non-performing CRE loans is a classic "kitchen sink" approach that frontloads pain. This strategy typically precedes recovery, as it removes uncertainty and creates a cleaner runway for future quarters. The distributable earnings of $0.23 before realized losses indicates the core business maintains some earnings power despite headwinds.
The dividend reduction to $0.125 (a 46% cut) will conserve approximately $80 million annually in capital. Combined with the new $150 million share repurchase authorization, management is signaling they believe shares are undervalued at current levels. The 7.1% distributable return on equity before realized losses shows potential for reasonable returns once the portfolio stabilizes.
Their capital markets activity is particularly noteworthy—issuing $130 million in unsecured notes and $220 million in secured notes demonstrates continued market access despite challenges. This liquidity provides important flexibility for managing distressed assets and funding new originations. The United Development Funding IV acquisition suggests management remains opportunistic even while addressing internal challenges.
While credit deterioration remains a significant concern, the company's decisive action to address problem loans, combined with continued access to capital markets and strong SBA lending originations, creates a potential foundation for recovery as interest rates potentially moderate through 2025.
- GAAP LOSS PER COMMON SHARE FROM CONTINUING OPERATIONS OF
- DISTRIBUTABLE LOSS PER COMMON SHARE OF
- DISTRIBUTABLE EARNINGS PER COMMON SHARE BEFORE REALIZED LOSSES OF
- DISTRIBUTABLE RETURN ON AVERAGE STOCKHOLDERS’ EQUITY BEFORE REALIZED LOSSES OF
- DECLARED A QUARTERLY CASH DIVIDEND OF
NEW YORK, March 03, 2025 (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 December 31, 2024 and declared dividends for the quarter ending March 31, 2025.
“The fourth quarter closes out a year of mixed results. On one hand, our Small Business Lending segment performed well, with significant origination growth reflecting the benefits of past investments. Meanwhile, our multi-family lending focused business faced challenges from higher rates, inflationary pressures, and lower rent growth,” said Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “Entering 2025, we have taken decisive actions to stabilize and better position our balance sheet going forward by fully reserving for all of our non-performing loans in our CRE portfolio. While this reduces our book value per share in the short term, we believe it provides a path to recovery in our net interest margin through the accelerated resolution of our non-performing loans to generate liquidity for reinvestment in higher-yielding new originations. Additionally, we have adjusted our dividend to
Fourth Quarter Highlights
- LMM commercial real estate originations of
$436 million - Small Business Lending (“SBL”) loan originations of
$348 million , including$315 million of Small Business Administration 7(a) loans - Book value of
$10.61 per share of common stock as of December 31, 2024 - Entered into a definitive merger agreement to acquire United Development Funding IV, a real estate investment trust providing capital solutions to residential real estate developers and regional homebuilders
- Acquired approximately 5.8 million shares of the Company’s common stock at an average price of
$7.35 per share as part of stock repurchase program - Issued
$130 million in aggregate principal amount of9.00% Senior Unsecured Notes due 2029
Full Year Highlights
- GAAP Loss per common share from continuing operations of
$(2.52) - Distributable earnings per common share before realized losses of
$0.97 - Distributable return on average stockholders’ equity before realized losses of
7.5% - Total LMM and SBL originations of
$2.4 billion , including$1.1 billion of Small Business Administration 7(a) loans - Sold
$7.6 billion in mortgage servicing rights in connection with the disposition of its residential mortgage banking segment - Completed the acquisitions of Madison One, a leading originator and servicer of USDA and SBA guaranteed loan product, and Funding Circle USA, Inc., an online lending platform that originates and services small business loans
- Acquired approximately 10.3 million shares of the Company’s common stock at an average price of
$7.95 per share as part of stock repurchase program
Subsequent Events
- On January 16, 2025, the Board approved a new stock repurchase program authorizing the repurchase of up to
$150 million of the Company’s common stock - On February 21, 2025, ReadyCap Holdings, LLC, a taxable REIT subsidiary of the Company, closed a private placement of
$220 million in aggregate principal amount of its9.375% Senior Secured Notes due 2028. The Company intends to use the net proceeds from the private placement to repay its indebtedness and for general corporate purposes
Dividends
- The Company announced that its Board of Directors declared a quarterly cash dividend of
$0.12 5 per share of common stock and Operating Partnership unit for the quarter ending March 31, 2025. The dividend is payable on April 30, 2025, to shareholders of record as of the close of business on March 31, 2025 - Additionally, the Company announced that its Board of Directors declared quarterly cash dividends on its
6.25% Series C Cumulative Convertible Preferred Stock (the “Series C Preferred Stock”), and its6.50% Series E Cumulative Redeemable Preferred Stock (the “Series E Preferred Stock”) - The Company declared a dividend of
$0.39 0625 per share of Series C Preferred Stock payable on April 15, 2025, to Series C Preferred stockholders of record as of the close of business on March 31, 2025 - The Company declared a dividend of
$0.40 625 per share of Series E Preferred Stock payable on April 30, 2025, to Series E Preferred stockholders of record as of the close of business on March 31, 2025
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 gains and losses related to residential mortgage servicing rights (“MSR”) from discontinued operations, unrealized changes in our current expected credit loss reserve, 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, 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.
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. 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 December 31, 2024 | Year Ended December 31, 2024 | ||||
| Net Loss | $ | (314,751 | ) | $ | (430,398 | ) |
| Reconciling items: | ||||||
| Unrealized loss on MSR - discontinued operations | 33,175 | 40,394 | ||||
| Unrealized gain on joint ventures | (5,015 | ) | (3,503 | ) | ||
| Increase in CECL reserve | 277,277 | 272,964 | ||||
| Increase (decrease) in valuation allowance | (31,229 | ) | 124,878 | |||
| Non-recurring REO impairment | 31,175 | 55,686 | ||||
| Non-cash compensation | 2,826 | 8,510 | ||||
| Unrealized loss on preferred equity, at fair value | 15,613 | 15,613 | ||||
| Merger transaction costs and other non-recurring expenses | 6,579 | 17,432 | ||||
| Bargain purchase gain | — | (13,859 | ) | |||
| Realized losses on sale of investments | 51,688 | 183,718 | ||||
| Total reconciling items | $ | 382,089 | $ | 701,833 | ||
| Income tax adjustments | (22,825 | ) | (89,504 | ) | ||
| Distributable earnings before realized losses | $ | 44,513 | $ | 181,931 | ||
| Realized losses on sale of investments, net of tax | (44,246 | ) | (153,571 | ) | ||
| Distributable earnings | $ | 267 | $ | 28,360 | ||
| Less: Distributable earnings attributable to non-controlling interests | 3,113 | 8,167 | ||||
| Less: Income attributable to participating shares | 2,248 | 9,125 | ||||
| Distributable earnings attributable to common stockholders | $ | (5,094 | ) | $ | 11,068 | |
| Distributable earnings before realized losses on investments, net of tax per common share - basic and diluted | $ | 0.23 | $ | 0.97 | ||
| Distributable earnings per common share - basic and diluted | $ | (0.03 | ) | $ | 0.07 | |
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 Din the distributable earnings reconciliation above.
Webcast and Earnings Conference Call
Management will host a webcast and conference call on Monday, March 3, 2025 at 8:30am ET to provide a general business update and discuss the financial results for the quarter ended December 31, 2024. 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 #: 13750356
The playback can be accessed through March 17, 2025.
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 and government guaranteed loans focused on the United States Department of Agriculture. Headquartered in New York, New York, the Company employs approximately 500 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) | December 31, 2024 | December 31, 2023 | |||||
| Assets | |||||||
| Cash and cash equivalents | $ | 143,803 | $ | 138,532 | |||
| Restricted cash | 30,560 | 30,063 | |||||
| Loans, net (including | 3,378,149 | 4,020,160 | |||||
| Loans, held for sale (including | 241,626 | 81,599 | |||||
| Mortgage-backed securities | 31,006 | 27,436 | |||||
| Investment in unconsolidated joint ventures (including | 161,561 | 133,321 | |||||
| Derivative instruments | 7,963 | 2,404 | |||||
| Servicing rights | 128,440 | 102,837 | |||||
| Real estate owned, held for sale | 193,437 | 252,949 | |||||
| Other assets | 362,486 | 300,175 | |||||
| Assets of consolidated VIEs | 5,175,295 | 6,897,145 | |||||
| Assets held for sale | 287,595 | 454,596 | |||||
| Total Assets | $ | 10,141,921 | $ | 12,441,217 | |||
| Liabilities | |||||||
| Secured borrowings | 2,035,176 | 2,102,075 | |||||
| Securitized debt obligations of consolidated VIEs, net | 3,580,513 | 5,068,453 | |||||
| Senior secured notes, net | 437,847 | 345,127 | |||||
| Corporate debt, net | 895,265 | 764,908 | |||||
| Guaranteed loan financing | 691,118 | 844,540 | |||||
| Contingent consideration | 573 | 7,628 | |||||
| Derivative instruments | 352 | 212 | |||||
| Dividends payable | 43,168 | 54,289 | |||||
| Loan participations sold | 95,578 | 62,944 | |||||
| Due to third parties | 1,442 | 3,641 | |||||
| Accounts payable and other accrued liabilities | 188,051 | 207,481 | |||||
| Liabilities held for sale | 228,735 | 333,157 | |||||
| Total Liabilities | $ | 8,197,818 | $ | 9,794,455 | |||
| 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 | 2,250,291 | 2,321,989 | |||||
| Retained earnings (deficit) | (505,089 | ) | 124,413 | ||||
| Accumulated other comprehensive loss | (18,552 | ) | (17,860 | ) | |||
| Total Ready Capital Corporation equity | 1,838,045 | 2,539,937 | |||||
| Non-controlling interests | 97,697 | 98,464 | |||||
| Total Stockholders’ Equity | $ | 1,935,742 | $ | 2,638,401 | |||
| Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity | $ | 10,141,921 | $ | 12,441,217 | |||
| READY CAPITAL CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (in thousands, except share data) | Three Months Ended December 31, 2024 | Year Ended December 31, 2024 | |||||
| Interest income | $ | 203,965 | $ | 896,975 | |||
| Interest expense | (153,911 | ) | (696,455 | ) | |||
| Net interest income before provision for loan losses | $ | 50,054 | $ | 200,520 | |||
| Provision for loan losses | (285,008 | ) | (292,759 | ) | |||
| Net interest income after provision for loan losses | $ | (234,954 | ) | $ | (92,239 | ) | |
| Non-interest income | |||||||
| Net realized gain (loss) on financial instruments and real estate owned | (10,934 | ) | (54,000 | ) | |||
| Net unrealized gain (loss) on financial instruments | (17,025 | ) | (14,991 | ) | |||
| Valuation allowance, loans held for sale | 31,229 | (124,878 | ) | ||||
| Servicing income, net of amortization and impairment of | 4,112 | 16,556 | |||||
| Gain on bargain purchase | — | 13,859 | |||||
| Income on unconsolidated joint ventures | 6,065 | 10,886 | |||||
| Other income | 13,557 | 50,803 | |||||
| Total non-interest income (expense) | $ | 27,004 | $ | (101,765 | ) | ||
| Non-interest expense | |||||||
| Employee compensation and benefits | (23,320 | ) | (82,522 | ) | |||
| Allocated employee compensation and benefits from related party | (3,350 | ) | (11,387 | ) | |||
| Professional fees | (7,557 | ) | (26,887 | ) | |||
| Management fees – related party | (5,518 | ) | (24,862 | ) | |||
| Loan servicing expense | (12,749 | ) | (46,656 | ) | |||
| Transaction related expenses | (4,878 | ) | (10,118 | ) | |||
| Impairment on real estate | (29,876 | ) | (56,503 | ) | |||
| Other operating expenses | (19,637 | ) | (63,572 | ) | |||
| Total non-interest expense | $ | (106,885 | ) | $ | (322,507 | ) | |
| Loss from continuing operations before benefit for income taxes | (314,835 | ) | (516,511 | ) | |||
| Income tax benefit | 17,318 | 104,512 | |||||
| Net loss from continuing operations | $ | (297,517 | ) | $ | (411,999 | ) | |
| Discontinued operations | |||||||
| Loss from discontinued operations before benefit for income taxes | (22,978 | ) | (24,532 | ) | |||
| Income tax benefit | 5,744 | 6,133 | |||||
| Net loss from discontinued operations | $ | (17,234 | ) | $ | (18,399 | ) | |
| Net loss | $ | (314,751 | ) | $ | (430,398 | ) | |
| Less: Dividends on preferred stock | 1,999 | 7,996 | |||||
| Less: Net income attributable to non-controlling interest | 1,389 | 5,357 | |||||
| Net loss attributable to Ready Capital Corporation | $ | (318,139 | ) | $ | (443,751 | ) | |
| Earnings per common share from continuing operations - basic | $ | (1.80 | ) | $ | (2.52 | ) | |
| Earnings per common share from discontinued operations - basic | $ | (0.10 | ) | $ | (0.11 | ) | |
| Total earnings per common share - basic | $ | (1.90 | ) | $ | (2.63 | ) | |
| Earnings per common share from continuing operations - diluted | $ | (1.80 | ) | $ | (2.52 | ) | |
| Earnings per common share from discontinued operations - diluted | $ | (0.10 | ) | $ | (0.11 | ) | |
| Total earnings per common share - diluted | $ | (1.90 | ) | $ | (2.63 | ) | |
| Weighted-average shares outstanding | |||||||
| Basic | 167,434,683 | 169,107,477 | |||||
| Diluted | 168,845,426 | 170,472,273 | |||||
| Dividends declared per share of common stock | $ | 0.25 | $ | 1.10 | |||
| READY CAPITAL CORPORATION UNAUDITED SEGMENT REPORTING | |||||||||||||||
| Three Months Ended December 31, 2024 | |||||||||||||||
| (in thousands) | LMM Commercial Real Estate | Small Business Lending | Corporate-Other | Consolidated | |||||||||||
| Interest income | $ | 170,292 | $ | 33,673 | $ | — | $ | 203,965 | |||||||
| Interest expense | (131,128 | ) | (22,783 | ) | — | (153,911 | ) | ||||||||
| Net interest income before provision for loan losses | $ | 39,164 | $ | 10,890 | $ | — | $ | 50,054 | |||||||
| Provision for loan losses | (279,483 | ) | (5,525 | ) | — | (285,008 | ) | ||||||||
| Net interest income after provision for loan losses | $ | (240,319 | ) | $ | 5,365 | $ | — | $ | (234,954 | ) | |||||
| Non-interest income | |||||||||||||||
| Net realized gain (loss) on financial instruments and real estate owned | (33,206 | ) | 22,272 | — | (10,934 | ) | |||||||||
| Net unrealized gain (loss) on financial instruments | (19,629 | ) | 2,604 | — | (17,025 | ) | |||||||||
| Valuation allowance, loans held for sale | 31,229 | — | — | 31,229 | |||||||||||
| Servicing income, net | 1,761 | 2,351 | — | 4,112 | |||||||||||
| Income on unconsolidated joint ventures | 6,065 | — | — | 6,065 | |||||||||||
| Other income | 2,279 | 9,155 | 2,123 | 13,557 | |||||||||||
| Total non-interest income (loss) | $ | (11,501 | ) | $ | 36,382 | $ | 2,123 | $ | 27,004 | ||||||
| Non-interest expense | |||||||||||||||
| Employee compensation and benefits | (4,741 | ) | (14,564 | ) | (4,015 | ) | (23,320 | ) | |||||||
| Allocated employee compensation and benefits from related party | (335 | ) | — | (3,015 | ) | (3,350 | ) | ||||||||
| Professional fees | (1,639 | ) | (3,210 | ) | (2,708 | ) | (7,557 | ) | |||||||
| Management fees – related party | — | — | (5,518 | ) | (5,518 | ) | |||||||||
| Loan servicing expense | (11,592 | ) | (1,157 | ) | — | (12,749 | ) | ||||||||
| Transaction related expenses | — | — | (4,878 | ) | (4,878 | ) | |||||||||
| Impairment on real estate | (29,876 | ) | — | — | (29,876 | ) | |||||||||
| Other operating expenses | (4,257 | ) | (12,215 | ) | (3,165 | ) | (19,637 | ) | |||||||
| Total non-interest expense | $ | (52,440 | ) | $ | (31,146 | ) | $ | (23,299 | ) | $ | (106,885 | ) | |||
| Income (loss) before provision for income taxes | $ | (304,260 | ) | $ | 10,601 | $ | (21,176 | ) | $ | (314,835 | ) | ||||
| Total assets | $ | 8,058,707 | $ | 1,427,281 | $ | 368,338 | $ | 9,854,326 | |||||||
| READY CAPITAL CORPORATION UNAUDITED SEGMENT REPORTING | |||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||
| (in thousands) | LMM Commercial Real Estate | Small Business Lending | Corporate-Other | Consolidated | |||||||||||
| Interest income | $ | 766,354 | $ | 130,621 | $ | — | $ | 896,975 | |||||||
| Interest expense | (598,846 | ) | (97,609 | ) | — | (696,455 | ) | ||||||||
| Net interest income before provision for loan losses | $ | 167,508 | $ | 33,012 | $ | — | $ | 200,520 | |||||||
| Provision for loan losses | (283,800 | ) | (8,959 | ) | — | (292,759 | ) | ||||||||
| Net interest income after provision for loan losses | $ | (116,292 | ) | $ | 24,053 | $ | — | $ | (92,239 | ) | |||||
| Non-interest income | |||||||||||||||
| Net realized gain (loss) on financial instruments and real estate owned | (132,746 | ) | 78,746 | — | (54,000 | ) | |||||||||
| Net unrealized gain (loss) on financial instruments | (20,588 | ) | 5,597 | — | (14,991 | ) | |||||||||
| Valuation allowance, loans held for sale | (124,878 | ) | — | — | (124,878 | ) | |||||||||
| Servicing income, net | 5,759 | 10,797 | — | 16,556 | |||||||||||
| Gain on bargain purchase | — | — | 13,859 | 13,859 | |||||||||||
| Income on unconsolidated joint ventures | 10,876 | 10 | — | 10,886 | |||||||||||
| Other income | 22,605 | 23,424 | 4,774 | 50,803 | |||||||||||
| Total non-interest income (loss) | $ | (238,972 | ) | $ | 118,574 | $ | 18,633 | $ | (101,765 | ) | |||||
| Non-interest expense | |||||||||||||||
| Employee compensation and benefits | (25,821 | ) | (46,036 | ) | (10,665 | ) | (82,522 | ) | |||||||
| Allocated employee compensation and benefits from related party | (1,139 | ) | — | (10,248 | ) | (11,387 | ) | ||||||||
| Professional fees | (4,963 | ) | (12,681 | ) | (9,243 | ) | (26,887 | ) | |||||||
| Management fees – related party | — | — | (24,862 | ) | (24,862 | ) | |||||||||
| Loan servicing expense | (44,667 | ) | (1,989 | ) | — | (46,656 | ) | ||||||||
| Transaction related expenses | — | — | (10,118 | ) | (10,118 | ) | |||||||||
| Impairment on real estate | (56,428 | ) | (75 | ) | — | (56,503 | ) | ||||||||
| Other operating expenses | (15,212 | ) | (36,108 | ) | (12,252 | ) | (63,572 | ) | |||||||
| Total non-interest expense | $ | (148,230 | ) | $ | (96,889 | ) | $ | (77,388 | ) | $ | (322,507 | ) | |||
| Income (loss) before provision for income taxes | $ | (503,494 | ) | $ | 45,738 | $ | (58,755 | ) | $ | (516,511 | ) | ||||
| Total assets | $ | 8,058,707 | $ | 1,427,281 | $ | 368,338 | $ | 9,854,326 | |||||||
FAQ
What is Ready Capital's Q4 2024 dividend and how has it changed?
What were Ready Capital's (RC) key origination volumes in Q4 2024?
How many shares did Ready Capital (RC) repurchase in Q4 2024?
What was Ready Capital's (RC) book value per share as of December 31, 2024?
What strategic actions has Ready Capital taken to address its CRE portfolio?
