Slide 1: Supplemental Financial Data Q4 2022
SUPPLEMENTAL FINANCIAL DATA Q4 2022
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 2022 Results
3 Fourth Quarter 2022 Results Net income of $13.7 million1, or $0.08 per common share Distributable earnings of $51.6 million2, or $0.42 per common share Declared dividend of $0.40 per common share Earnings / Dividends Return on Equity3 of 2.7% (10.5% excluding the impact of CECL reserves)
Slide 4: Fourth Quarter 2022 Results (continued)
4 Fourth Quarter 2022 Results (continued) Completed the securitization of $860.1 million of floating rate SBC loans and sold $656.9 million of senior bonds with a weighted average cost of debt of SOFR + 3.0% The Company acquired approximately 3.6 million shares of the Company’s common stock at a
Slide 5: 2022 Highlights
5 2022 Highlights EARNINGS ($ in millions) RETURN ON EQUITY INVESTMENT ACTIVITY ($ in millions) BALANCE SHEET GROWTH ($ in millions) $75.1 $46.1 $160.0 $203.2 $67.3 $101.4 $168.0 $218.7 $0 $50 $100 $150 $200 $250 2019 2020 2021 2022 Net income Distributable earnings 10.5% 5.6% 14.6% 11.9% 9.4% 12.3%
Slide 6: Return on Equity
6 Return on Equity 1. Levered yield includes interest income, accretion of discount, MSR creation, income from unconsolidated joint ventures, realized gains (losses) on loans held for sale, unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization
Slide 7: Diversified, Complementary, & Scalable Platforms
7 Diversified, Complementary, & Scalable Platforms 67% 10% 5% 1% 7% 7% 3% Bridge Fixed rate/CMBS Construction Freddie Mac Other Small Business Lending Residential Mortgage Banking PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 ($ in thousands) $50,857 $1,360 $12,361 $7,762 $4,182 $14,545 $10,559 $0 $10,000
Slide 8: SBC and SBA Investment by Platform
8 SBC and SBA Investment by Platform $1,529.2 $1,287.8 $955.2 $531.9 $189.7 $98.2 $60.9 $5.9 $8.3 $58.0 $36.0 $116.4 $167.3 $613.1 $197.4 $255.5 $174.5 $475.6 $29.0 $658.1 $1.5 $135.7 $100.8 $128.3 $133.6 $136.9 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Bridge Fixed Rate
Slide 9: SBC Lending and Acquisitions
9 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 10: Small Business Lending
10 Small Business Lending GROSS LEVERED YIELD LOAN COUNT UPB BOOK VALUE WA LTV WA COUPON FIXED/FLOAT 60+ Days Past Due 2,450 $581M $541M 90.0% 8.2% 0.2 / 99.8% 1.4% CURRENT QUARTER HIGHLIGHTS 16.5% 17.6% 15.2% 15.0% 19.6% 33.2% 25.7% 27.6% 24.2% 22.5% 0% 20% 40% 60% 80% 100% Q4 2021 Q1 2022 Q2 2022
Slide 11: Loan Portfolio Composition
11 Loan Portfolio Composition 23% 16% 12% 10% 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 71% 9% 6% 5% 9% SBC Lending and Acquisitions Multi-family Mixed-use Retail
Slide 12: Residential Mortgage Banking
12 QUARTERLY ORIGINATIONS UPB $326.6M Residential Mortgage Banking 78% 22% Production by Purpose Purchased Refinanced QUARTERLY SALES UPB $351.7M 64% 31% 5% Sales by Investor Fannie/Freddie Ginnie Mae Other MSR PORTFOLIO UPDATE ($ in billions) 44% 35% 21% Production by Platform Retail Correspondent
Slide 13: Loan Portfolio – Risk Rating
13 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 14: Financial Flexibility
14 Financial Flexibility 15% 20% 26% 14% 11% 14% $1.1B Total Unencumbered Assets Unrestricted cash Securities Loans Servicing rights REO Other Assets UNENCUMBERED ASSET POOL HIGHLIGHTS $115 $120 $661 $100 $146 $0 $200 $400 $600 $800 2023 2024 2025 2026 2027 2028 and beyond CORPORATE DEBT MATURITY PR
Slide 15: Debt - Leverage
15 Debt - Leverage Corporate Debt PPPLF Securitized Debt Obligations Non-Recourse Secured Borrowings Recourse Secured Borrowings 0.1x 2.8x 0.7x 0.9x 0.6x Debt Balance Leverage Ratio • Total leverage of 5.1x • Recourse leverage ratio of 1.5x • Majority of secured borrowings subject to non-recourse or
Slide 16: Financial Snapshot
16 Financial Snapshot Investment Type Average Carrying Value(1) Gross Yield(2) Average Debt Balance Debt Cost (3) Levered Yield SBC Lending and Acquisitions $ 9,820,719 7.6% $ 7,360,399 6.3% 11.6% Small Business Lending $ 332,027 21.6% $ 204,018 8.7% 42.1% Total $ 10,152,746 8.1% $ 7,564,417 6.3% 12
Slide 17: Appendix: Additional Financial Information
APPENDIX Additional Financial Information
Slide 18: Balance Sheet by Quarter
_ READY CAPITAL. Balance Sheet by Quarter (in thousands) 1213112024 0012022 1201/2022 Assets ‘Cash and cash equivalents S295 S 127939 $ 208037 $163,061 Restricted cash 51,569 64,748 $7675 55,927 Loans, net 2915446 3.907.321 4,158,807 3576310 ‘Loans, held forsale at fair value 552,935 469.442 403,609
Slide 19: Statement of Income by Quarter
19 Statement of Income by Quarter
Slide 20: Distributable Earnings Reconciliation by Quarter
20 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 21: * READY
* READY ». CAPITAL.