Slide 1: Supplemental Financial Data Q2 2021
SUPPLEMENTAL FINANCIAL DATA Q2 2021
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 2021 Results
3 Second Quarter 2021 Results .. Net income of $30.9 million1, or $0.38 per common share .. Distributable earnings of $41.4 million1, or $0.52 per common share .. Declared dividend of $0.42 per common share Earnings / Dividends .. Return on Equity2 of 10.0% .. Distributable Return on Equity3 of 13.8
Slide 4: Second Quarter 2021 Results (continued)
4 Second Quarter 2021 Results (continued) .. Total liquidity of $428(1) million including cash, anticipated warehouse advances, principal and interest receivable from servicers and anticipated proceeds from available-for-sale assets. Current Liquidity .. Closed $232 million acquired SBC loan securit
Slide 5: Return on Equity
5 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 6: SBC Investment by Product Type
6 SBC Investment by Product Type $20.8 $82.9 $65.0 $50.2 $145.7 $17.0 $6.0 $53.6 $157.9 $105.6 $132.1 $164.4 $240.5 $16.9 $243.2 $652.8 $807.2 $15.8 $140.2 $0 $100 $200 $300 $400 $500 $600 $700 $800 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 SBA Fixed Rate Freddie Mac Transitional Acquired 1. Origination volumes
Slide 7: SBC Originations
7 SBC Originations • Freddie Mac loan originations of $240.5 million driven by continued low rates averaging 3.6% o Current money up pipeline of $109.9 million, including $56.3 million funded in July • CRE originations of $860.83 million closed in the quarter o Current money up pipeline of $524.5 mi
Slide 8: Small Business Lending
8 Small Business Lending • SBA 7(a) loans originations of $145.7 million o Current money up pipeline of $223.8 million, including $28.7 million funded in July • SBA net sales premiums peaking at 16.3% and averaging 13.2%, net 1. $ in millions, as of quarter end. 2. Calculated on unpaid principal bal
Slide 9: Loan Acquisitions
9 Loan Acquisitions • Current acquisition pipeline of $1.3 billion with $193 million in closing • Future liquidation of ANH non-agency MBS and residential loans to be managed in coordination with investment pipeline 1. Excludes joint venture investments. 2. $ in millions, as of quarter end. 3. Repre
Slide 10: Residential Mortgage Banking
10 • Originations of $1.1 billion • Recapture rates of 28% • Average margin of 107 bps for the quarter, leveling off at 93 bps at quarter end 1. $ in millions. Represents activity during the quarter. CURRENT QUARTER HIGHLIGHTS MSR PORTFOLIO (UPB IN $ BILLIONS) $8.7 $9.1 $9.5 $9.9 $10.4 $7.5 $8.0 $8.
Slide 11: Diversified, Complementary, & Scalable Platforms
11 Diversified, Complementary, & Scalable Platforms 13% 14% 31% 1% 34% 7% Acquisitions SBC Originations - Fixed rate SBC Originations - Bridge SBC Originations - Freddie Mac Small Business Lending Residential Mortgage Banking PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 $13,191 $4,376 $18,670 $8,672 $41,
Slide 12: Loan Portfolio Composition
12 Loan Portfolio Composition 12 1. As a percent of unpaid principal balance 2. Excludes loans held-for-sale, at fair value COLLATERAL TYPE SBA COLLATERAL TYPE LIEN POSITION 19% 13% 8% 6% 4% 50% Lodging Offices of Physicians Child Day Care Services Eating Places Gasoline Service Stations Other 31% 1
Slide 13: Current Expected Credit Losses
13 Current Expected Credit Losses • Total ending Q2 2021 allowance reserves of $50.0 million representing 1.0% of the total loan balance • Incremental reserves of $4.0 million across our loan portfolios during the quarter: • Acquired loans: Net reserves remained consistent quarter-over-quarter. • Sm
Slide 14: Loan Portfolio – Risk Rating
14 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 15: Capital Structure
17% 18% 18% 16% 13% 2% 3% 2% 3% 3% 1% 1% 7% 7% 7% 7% 6% 27% 26% 30% 44% 49% 46% 46% 42% 30% 28% Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Funding Mix Securitized debt oblications Credit faciities and repurchase agreements Senior secured notes and Corporate debt Convertible senior notes Preferred Equit
Slide 16: Financing and Leverage
16 Financing and Leverage 2.1x 2.0x 2.2x 2.3x 1.8x 4.7x 4.5x 4.5x 5.1x 5.4x 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Recourse Total HISTORICAL LEVERAGE $ in millions Total debt-to-equity ratio Secured borrowings (warehouse credit facilities and borrowings under repo transa
Slide 17: Credit and Repurchase Facilities
17 Credit and Repurchase Facilities 1. Commitment size is €200.0 million and has been converted for purposes of this disclosure. 2. The Company subsequently extended the agreement pursuant to an amendment with an updated maturity of August 2021 3. The Company subsequently extended the agreement purs
Slide 18: Financial Snapshot
18 Financial Snapshot 1. Average carrying value includes average quarterly carrying value of loan and servicing asset balances 2. Gross yields include interest income, accretion of discount, MSR creation, income from our unconsolidated joint venture, realized gains (losses) on loans held for sale, u
Slide 19: Appendix: Additional Financial Information
APPENDIX Additional Financial Information
Slide 20: Balance Sheet by Quarter
20 Balance Sheet by Quarter (In Thousands) Assets Cash and cash equivalents $ 257,017 $ 149,847 $ 138,975 $ 308,428 $ 200,723 Restricted cash 91,539 46,204 47,697 62,961 57,118 Loans, net 1,432,807 1,286,935 1,550,624 1,611,826 2,222,284 Loans, held for sale, at fair value 297,669 348,719 340,288 47
Slide 21: Statement of Income by Quarter
21 Statement of Income by Quarter (1) Certain balances have been reclassified to match current period presentation (In thousands, except share data) Interest income $ 63,211 $ 61,074 $ 64,810 $ 73,371 $ 103,047 Interest expense (43,408) (43,823) (41,319) (50,761) (55,415) Net interest income before
Slide 22: Distributable Earnings Reconciliation by Quarter
22 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 23: ®
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