Slide 1: Supplemental Financial Data Q3 2023
SUPPLEMENTAL FINANCIAL DATA Q3 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: Third Quarter 2023 Results
3 Third Quarter 2023 Results Net income of $47.2 million1, or $0.25 per common share Distributable earnings of $52.2 million2, or $0.28 per common share Declared dividend of $0.36 per common share Earnings / Dividends Return on Equity3 of 7.2% Distributable Return on Equity4 of 8.0% Divi
Slide 4: Return on Equity
4 Return on Equity 1. Levered yield includes interest income, accretion of discount, MSR creation, income from unconsolidated joint ventures, realized gains (losses) on loans held for sale, unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization
Slide 5: Diversified, Complementary, & Scalable Platforms
5 Diversified, Complementary, & Scalable Platforms 60% 1% 9% 11% 5% 11% 3% Bridge Freddie Mac Fixed rate/CMBS Construction Other Small Business Lending Residential Mortgage Banking PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 ($ in thousands) $44,164 $9,163 $19,982 $5,409 $1,027 $21,738 $12,178 $0 $10,00
Slide 6: SBC and SBA Investment by Platform
6 SBC and SBA Investment by Platform $531.9 $189.7 $110.2 $123.1 $90.7 $8.3 $58.0 $4.0 $3.9 $116.4 $167.3 $19.4 $174.5 $475.6 $276.9 $384.6 $373.7 $133.6 $136.9 $92.3 $120.8 $128.6 $0 $400 $800 $1,200 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Bridge Fixed Rate/CMBS Construction Freddie Mac Acquired SBA $1,027.5
Slide 7: SBC Lending and Acquisitions
10.5% 11.1% 10.9% 10.2% 9.1% 1.0% 0.5% 0.6% 1.3% 1.7% 0% 5% 10% 15% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Income on joint venture investments and gains on loans, held for sale Gross levered yield (ex. gains) 6 7 SBC Lending and Acquisitions 1. Excludes joint venture investments 2. Gross of general
Slide 8: Small Business Lending
8 Small Business Lending GROSS LEVERED YIELD LOAN COUNT UPB BOOK VALUE(1) WA LTV WA COUPON FIXED/FLOAT 60+ Days Past Due 2,787 $1.25B $1.22B 91.9% 10.1% 0.8 / 99.2% 1.0% CURRENT QUARTER HIGHLIGHTS 15.0% 19.6% 19.5% 20.9% 21.2% 24.2% 22.5% 20.8% 22.7% 22.5% 0% 15% 30% 45% Q3 2022 Q4 2022 Q1 2023 Q2 2
Slide 9: Loan Portfolio Composition
9 Loan Portfolio Composition 24% 22% 10% 8% 36% Small Business Lending Lodging Retail Eating Place Doctors Other 1. Calculated on unpaid principal balance and excludes assets offset by guaranteed loan financing liabilities 69% 9% 5% 5% 12% SBC Lending and Acquisitions Multi-family Mixed-use Retail O
Slide 10: Residential Mortgage Banking
10 QUARTERLY ORIGINATIONS UPB $390.8M Residential Mortgage Banking 84% 16% Production by Purpose Purchased Refinanced QUARTERLY SALES UPB $401.2M 62% 33% 5% Sales by Investor Fannie/Freddie Ginnie Mae Other MSR PORTFOLIO UPDATE ($ in billions) 43% 37% 20% Production by Platform Retail Correspondent
Slide 11: Loan Portfolio – Risk Rating
11 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 12: Financial Flexibility
12 Financial Flexibility 10% 22% 36% 9% 14% 9% $1.8B Total Unencumbered Assets Unrestricted cash Securities Loans Servicing rights REO Other Assets UNENCUMBERED ASSET POOL HIGHLIGHTS $0 $120 $761 $100 $146 $0 $200 $400 $600 $800 2023 2024 2025 2026 2027 2028 and beyond CORPORATE DEBT MATURITY PROFIL
Slide 13: Debt - Leverage
13 Debt - Leverage Corporate Debt PPPLF Securitized Debt Obligations Non-Recourse Secured Borrowings Recourse Secured Borrowings <0.1x 2.0x 0.4x 0.5x 0.4x Debt Balance Leverage Ratio • Total leverage of 3.4x • Recourse leverage ratio of 0.9x • Majority of secured borrowings subject to non-recourse o
Slide 14: Financial Snapshot
14 Financial Snapshot Investment Type Average Carrying Value(1) Gross Yield(2) Average Debt Balance Debt Cost (3) Levered Yield SBC Lending and Acquisitions $ 10,203,910 9.0% $ 7,250,903 8.3% 10.8% Small Business Lending $ 384,925 22.2% $ 243,602 9.7% 43.7% Total $ 10,588,835 9.5% $ 7,494,505 8.4% 1
Slide 15: Appendix: Additional Financial Information
APPENDIX Additional Financial Information
Slide 16: Balance Sheet by Quarter
_ READY CAPITAL. Balance Sheet by Quarter fin thousands) s23t2072 33112023 0072023 072023 Assets Cash and cash equivalents s 208037 $ 163061 Ss 111,192 $ 227504 $ 181,913, Restricted cash $7875 $5827 49632 34534 S76 Loans, net 4,158,807 3576310 3,128,197 3571520 4,151,923 Loans, held forsale, at fir
Slide 17: Statement of Income by Quarter
17 Statement of Income by Quarter
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.