Slide 1: Supplemental Financial Data Q2 2024
SUPPLEMENTAL FINANCIAL DATA Q2 2024
Slide 2: Disclaimer
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
Slide 3: Second Quarter 2024 Results
3 Second Quarter 2024 Results Net loss from continuing operations1 of $ (31.4) million, or $ (0.21) per common share Distributable earnings2 of $16.6 million, or $0.07 per common share Distributable earnings before realized losses3 of $36.9 million, or $0.19 per common share Declared dividen
Slide 4: Return on Equity
4 Return on Equity 1. Levered yield includes interest income, accretion of discount, MSR creation, income from unconsolidated joint ventures, realized gains (losses) on loans held for sale, unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization
Slide 5: Diversified, Complementary, & Scalable Platforms
5 Diversified, Complementary, & Scalable Platforms 61% 9% 12% 1% 5% 12% Bridge Fixed rate/CMBS Construction Freddie Mac Other Small Business Lending PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 ($ in thousands) $36,843 $388 $19,923 $2,024 $4,846 $26,230 $0 $10,000 $20,000 $30,000 $40,000 Bridge Fixed rat
Slide 6: Investment Portfolio Originations
6 Investment Portfolio Originations $123.1 $90.7 $8.8 $98.1 $157.3 $3.9 $5.3 $384.6 $373.7 $288.0 $156.2 $99.1 $120.8 $128.6 $152.2 $197.2 $217.3 $0 $400 $800 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Bridge Fixed Rate/CMBS Freddie Mac SBA $632.4 $593.0 $449.0 $456.8 $473.7 1. Origination volumes are based on f
Slide 7: LMM Commercial Real Estate
• Liquidation and payoffs of $530 million, including $66 million of assets acquired in the Broadmark Merger • LMM money up pipeline of $545 million, including $121 million funded in July • Transfer of $74 million of delinquent loans into held-for-sale 10.2% 9.1% 9.1% 8.2% 9.0% 1.3% 1.7% 0.7% 0.5% 0.
Slide 8: Small Business Lending
8 Small Business Lending GROSS LEVERED YIELD LOAN COUNT UPB BOOK VALUE(1) WA LTV(2) WA COUPON FIXED/FLOAT 60+ Days Past Due(5) 4,877 $1.31B $1.29B 94.6% 10.4% 0.7 / 99.3% 2.1% CURRENT QUARTER HIGHLIGHTS 20.9% 21.2% 19.7% 18.1% 18.9% 22.7% 22.5% 24.4% 32.1% 36.2% 0% 15% 30% 45% 60% Q2 2023 Q3 2023 Q4
Slide 9: Loan Portfolio Composition
9 Loan Portfolio Composition 21% 22% 8% 10% 39% Small Business Lending Lodging Retail Eating Place Doctors Other 1. Calculated on UPB 69% 10% 5% 5% 11% LMM Commercial Real Estate Multi-family Mixed-use Retail Office Other Investments PROPERTY TYPE1 GEOGRAPHY1 20% 11% 8% 7% 7% 47% LMM Commercial Real
Slide 10: Loan Portfolio – Risk Rating
10 Loan Portfolio – Risk Rating 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 l
Slide 11: LMM CRE Loan Portfolio - Migration
11 LMM CRE Loan Portfolio - Migration TOTAL Q4’23 Q1’24 Q2’24 CURRENT 88.8% 87.8% 92.8% 30+ DAYS PAST DUE 1.7% 2.3% 0.9% 60+ DAYS PAST DUE 9.5% 9.9% 6.3% RC ORIGINATED Q4’23 Q1’24 Q2’24 CURRENT 92.1% 89.9% 94.4% 30+ DAYS PAST DUE 1.3% 2.2% 0.4% 60+ DAYS PAST DUE 6.6% 7.9% 5.2% M&A Q4’23 Q1’24 Q2’24
Slide 12: Financial Flexibility
12 Financial Flexibility 17% 35% 17% 9% 4% 18% $1.3B Total Unencumbered Assets Unrestricted cash Securities Loans Servicing rights REO Other Assets UNENCUMBERED ASSET POOL HIGHLIGHTS $120 $761 $100 $110 $111 $0 $200 $400 $600 $800 2024 2025 2026 2027 2028 2029 and beyond CORPORATE DEBT MATURITY PROF
Slide 13: Debt - Leverage
<0.1x 2.0x 0.5x 0.5x 0.5x $25 $4,407 $1,163 $1,148 $1,184 13 Debt - Leverage Corporate Debt PPPLF Securitized Debt Obligations Non-Recourse Secured Borrowings Recourse Secured Borrowings Debt Balance ($ in millions) Leverage Ratio • Total leverage of 3.5x • Recourse leverage ratio of 1.0x • 61% of s
Slide 14: Financial Snapshot
14 Financial Snapshot ($ in thousands, except share data) Investment Type Average Carrying Value(1) Gross Yield(2) Average Debt Balance Debt Cost (3) Levered Yield LMM CRE $ 9,278,308 8.8% $ 6,505,582 8.6% 9.2% SBA $ 505,128 26.5% $ 311,834 8.8% 55.1% Total $ 9,783,526 9.7% $ 6,817,416 8.6% 12.2% Bo
Slide 15: Appendix: Additional Financial Information
APPENDIX Additional Financial Information
Slide 16: Balance Sheet by Quarter
16 Balance Sheet by Quarter (in thousands) Assets Cash and cash equivalents $ 197,651 $ 165,731 $ 138,532 $ 166,004 $ 226,286 Restricted cash 29,179 31,498 30,063 24,915 29,971 Loans, net 3,567,588 4,150,251 4,020,160 3,400,481 3,444,879 Loans, held for sale 104,496 74,655 81,599 584,072 532,511 Mor
Slide 17: Statement of Income by Quarter
17 Statement of Income by Quarter (In thousands, except share data) Interest income $ 231,004 $ 248,711 $ 250,130 $ 232,354 $ 234,119 Interest expense (170,221) (189,788) (197,591) (183,805) (183,167) Net interest income before (provision for) recovery of loan losses $ 60,783 $ 58,923 $ 52,539 $ 48,
Slide 18: Distributable Earnings Reconciliation by Quarter
18 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, inc
Slide 19: * READY
* READY ». CAPITAL.