Slide 1: Supplemental Financial Data Q4 2023
SUPPLEMENTAL FINANCIAL DATA Q4 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: Fourth Quarter 2023 Results
3 Fourth Quarter 2023 Results Net income from continuing operations1 of $24.6 million, or $0.12 per common share Distributable earnings2 of $48.5 million, or $0.26 per common share Declared dividend of $0.30 per common share Earnings / Dividends Return on Equity from continuing operations3 o
Slide 4: 2023 Highlights
4 2023 Highlights EARNINGS ($ in millions) RETURN ON EQUITY INVESTMENT ACTIVITY ($ in millions) BALANCE SHEET GROWTH ($ in millions) $117.3 $159.6 $351.2 $168.0 $218.7 $190.1 $0 $100 $200 $300 $400 2021 2022 2023 Net income from continuing operations Distributable earnings 14.6% 11.9% 15.4% 16.0% 12
Slide 5: Return on Equity
5 Return on Equity 1. Levered yield includes interest income, accretion of discount, MSR creation, income from unconsolidated joint ventures, realized gains (losses) on loans held for sale, unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization
Slide 6: Diversified, Complementary, & Scalable Platforms
6 Diversified, Complementary, & Scalable Platforms 61% 9% 12% 1% 5% 12% Bridge Fixed rate/CMBS Construction Freddie Mac Other Small Business Lending PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 ($ in thousands) $41,234 $1,851 $13,286 $5,853 $1,655 $17,707 $0 $10,000 $20,000 $30,000 $40,000 $50,000 Bridge
Slide 7: Investment Portfolio Originations
7 Investment Portfolio Originations $189.7 $110.2 $123.1 $90.7 $8.8 $58.0 $4.0 $3.9 $167.3 $19.4 $475.6 $276.9 $384.6 $373.7 $288.0 $136.9 $92.3 $120.8 $128.6 $152.2 $0 $400 $800 $1,200 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Bridge Fixed Rate/CMBS Construction Freddie Mac Acquired SBA $1,027.5 $502.8 $632.4
Slide 8: LMM Commercial Real Estate
11.1% 10.9% 10.2% 9.1% 9.1% 0.5% 0.6% 1.3% 1.7% 0.7% 0% 5% 10% 15% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Income on joint venture investments and gains on loans, held for sale Gross levered yield (ex. gains) 6 8 LMM Commercial Real Estate 1. Excludes joint venture investments 2. Gross of general re
Slide 9: Small Business Lending
9 Small Business Lending GROSS LEVERED YIELD LOAN COUNT UPB BOOK VALUE(1) WA LTV(2) WA COUPON FIXED/FLOAT 60+ Days Past Due 3,137 $1.23B $1.20B 92.6% 10.4% 0.9 / 99.1% 1.8% CURRENT QUARTER HIGHLIGHTS 19.6% 19.5% 20.9% 21.2% 19.7% 22.5% 20.8% 22.7% 22.5% 24.4% 0% 15% 30% 45% Q4 2022 Q1 2023 Q2 2023 Q
Slide 10: Loan Portfolio Composition
10 Loan Portfolio Composition 23% 22% 8% 9% 38% Small Business Lending Lodging Retail Eating Place Doctors Other 1. Calculated on UPB and excludes assets offset by guaranteed loan financing liabilities 69% 9% 5% 5% 12% LMM Commercial Real Estate Multi-family Mixed-use Retail Office Other Investments
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 9% 32% 35% 7% 5% 12% $1.5B Total Unencumbered Assets Unrestricted cash Securities Loans Servicing rights REO Other Assets UNENCUMBERED ASSET POOL HIGHLIGHTS $120 $761 $100 $110 $36 $0 $200 $400 $600 $800 2024 2025 2026 2027 2028 2029 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 0.4x 0.4x Debt Balance Leverage Ratio • Total leverage of 3.3x • Recourse leverage ratio of 0.8x • 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 LMM CRE $ 9,939,566 8.9% $ 7,016,603 8.8% 9.8% SBA $ 412,526 22.3% $ 261,320 9.7% 44.1% Total $ 10,352,092 9.4% $ 7,277,923 8.8% 11.5% Book Equity Value Metrics Common Stoc
Slide 15: Appendix: Additional Financial Information
APPENDIX Additional Financial Information
Slide 16: Balance Sheet by Quarter
Balance Sheet by Quarter READY CAPITAL. n thousands} 12132022 3132023 613012023 9130120: 1213072023] Assets Cash and cash equivalents ’ 147.933 ¢ 59863 $ 197.881 ¢ 65,731 $ 138.532 Resticted cash 48.48 43.736 23173 31498 30,083, Loans. net 3571738 3,123,051 3567588 4,150,251 4,020,160 Loans, heldfor
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.