Slide 1: Supplemental Financial Data Q2 2023
SUPPLEMENTAL FINANCIAL DATA Q2 2023
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 2023 Results
3 Second Quarter 2023 Results Net income of $253.4 million1, or $1.87 per common share Distributable earnings of $51.3 million2, or $0.36 per common share Declared dividends totaling $0.40 per common share Earnings / Dividends Return on Equity3 of 47.7% Distributable Return on Equity4 of 9
Slide 4: Second Quarter 2023 Results (continued)
4 Second Quarter 2023 Results (continued) Initiated a new share repurchase program authorizing the repurchase of $100.0 million of the Company’s common stock. The Company acquired approximately 1.7 million shares of the Company’s common stock at an average price of $10.82. Completed a securitiza
Slide 5: Return on Equity
5 Return on Equity 1. Levered yield includes interest income, accretion of discount, MSR creation, income from unconsolidated joint ventures, realized gains (losses) on loans held for sale, unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization
Slide 6: Diversified, Complementary, & Scalable Platforms
6 Diversified, Complementary, & Scalable Platforms 63% 1% 9% 12% 6% 6% 3% Bridge Freddie Mac Fixed rate/CMBS Construction Other Small Business Lending Residential Mortgage Banking PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 ($ in thousands) $46,328 $4,477 $18,930 $7,446 $845 $19,444 $12,271 $0 $10,000 $
Slide 7: SBC and SBA Investment by Platform
7 SBC and SBA Investment by Platform $955.2 $531.9 $189.7 $110.2 $123.1 $5.9 $8.3 $58.0 $4.0 $3.9 $36.0 $116.4 $167.3 $19.4 $255.5 $174.5 $475.6 $276.9 $384.6 $1.5 $128.3 $133.6 $136.9 $92.3 $120.8 $0 $400 $800 $1,200 $1,600 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Bridge Fixed Rate/CMBS Construction Freddie M
Slide 8: SBC Lending and Acquisitions
8 SBC Lending and Acquisitions 1. Excludes joint venture investments 2. 72% of fixed rate loans match funded 3. Includes realized and unrealized gains (losses) on loans held for sale and MSR creation 4. Includes interest income, accretion of discount, and servicing income net of interest expense and
Slide 9: Small Business Lending
9 Small Business Lending GROSS LEVERED YIELD LOAN COUNT UPB BOOK VALUE WA LTV WA COUPON FIXED/FLOAT 60+ Days Past Due 2,672 $570M $540M 90.5% 9.9% 0.3 / 99.7% 2.2% CURRENT QUARTER HIGHLIGHTS 15.2% 15.0% 19.6% 19.5% 20.9% 27.6% 24.2% 22.5% 20.8% 22.7% 0% 20% 40% 60% 80% 100% Q2 2022 Q3 2022 Q4 2022 Q
Slide 10: Loan Portfolio Composition
10 Loan Portfolio Composition 23% 16% 11% 11% 39% Small Business Lending Lodging Retail Doctors Eating Place Other 1. Calculated on unpaid principal balance and excludes assets offset by guaranteed loan financing liabilities 8% 69% 5% 5% 13% SBC Lending and Acquisitions Multi-family Mixed-use Retail
Slide 11: Residential Mortgage Banking
11 QUARTERLY ORIGINATIONS UPB $423.6M Residential Mortgage Banking 84% 16% Production by Purpose Purchased Refinanced QUARTERLY SALES UPB $410.7M 68% 27% 5% Sales by Investor Fannie/Freddie Ginnie Mae Other MSR PORTFOLIO UPDATE ($ in billions) 46% 32% 22% Production by Platform Retail Correspondent
Slide 12: Loan Portfolio – Risk Rating
12 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 13: Financial Flexibility
13 Financial Flexibility 11% 19% 42% 8% 12% 8% $2.1B Total Unencumbered Assets Unrestricted cash Securities Loans Servicing rights REO Other Assets UNENCUMBERED ASSET POOL HIGHLIGHTS $115 $120 $761 $100 $146 $0 $200 $400 $600 $800 2023 2024 2025 2026 2027 2028 and beyond CORPORATE DEBT MATURITY PROF
Slide 14: Debt - Leverage
14 Debt - Leverage Corporate Debt PPPLF Securitized Debt Obligations Non-Recourse Secured Borrowings Recourse Secured Borrowings <0.1x 2.1x 0.4x 0.5x 0.5x Debt Balance Leverage Ratio • Total leverage of 3.5x • Recourse leverage ratio of 1.0x • Majority of secured borrowings subject to non-recourse o
Slide 15: Financial Snapshot
15 Financial Snapshot Investment Type Average Carrying Value(1) Gross Yield(2) Average Debt Balance Debt Cost (3) Levered Yield SBC Lending and Acquisitions $ 10,041,285 8.8% $ 7,338,842 7.8% 11.5% Small Business Lending $ 360,014 22.7% $ 223,013 9.8% 43.6% Total $ 10,401,299 9.3% $ 7,561,855 7.8% 1
Slide 16: Appendix: Additional Financial Information
APPENDIX Additional Financial Information
Slide 17: Balance Sheet by Quarter
READY CAPITAL. Balance Sheet by Quarter [in thousands) Assets: ‘Cash and cash equivalents s 127839 $ 208.037 $ sego41 $s 1492 $ 227504 Restricted cash 64748 ST7.875 55927 49632 34534 Loans, net 3,907,321 4.188.807 3576310 3,128,197 371.520 Loans, eld forsale, at far value 469,442 403.609 258.377 226
Slide 18: Statement of Income by Quarter
18 Statement of Income by Quarter
Slide 19: Distributable Earnings Reconciliation by Quarter
19 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 20: * READY
* READY ». CAPITAL.