Ready Capital Corporation · NYSE:RC
Ready Capital — Q1 2021 Earnings Presentation
23 slides from Ready Capital's earnings presentation, May 6, 2021
Slide 1: Supplemental Financial Data First Quarter 2021
Supplemental Financial Data First Quarter 2021
Slide 2: Disclaimer
DISCLAIMER 2 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: First Quarter 2021 Results
FIRST QUARTER 2021 RESULTS 3 .. Net income of $28.9 million(1), or $0.49 per common share .. Distributable earnings of $24.7 million(1), or $0.41 per common share .. Declared dividend of $0.40 per common share EARNINGS / DIVIDENDS .. Return on Equity(2) of 12.8% .. Distributable Return on Equity(3)
Slide 4: First Quarter 2021 Results (Continued)
FIRST QUARTER 2021 RESULTS (CONTINUED) 4 .. Total liquidity of $424 million including cash, approved but undrawn financing and principal and interest collections receivable from servicers CURRENT LIQUIDITY .. Closed a $768 million CRE CLO pricing AAA bonds at +100 .. Closed a $113 million non-mark-t
Slide 5: Return on Equity
RETURN ON EQUITY 5 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
SBC INVESTMENT BY PRODUCT TYPE(1) 6 1) Origination volumes are based on fully committed amounts $45.5 $20.8 $82.9 $65.0 $50.2 $60.7 $17.0 $6.0 $149.4 $157.9 $105.6 $132.1 $164.4 $259.6 $16.9 $243.2 $652.8 $51.5 $15.8 $140.2 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 Q1'2
Slide 7: SBC Originations - Segment Snapshot
SBC ORIGINATIONS -S EGMENT SNAPSHOT 7 1) $ in millions, as of quarter end. 2) Represents fixed rate loans that have been securitized. 3) Represents fully committed amounts. 4) Calculated on unpaid principal balance 5) Includes interest income, accretion of discount, and servicing income net of inter
Slide 8: SBA Originations, Acquisitions, & Servicing - Segment Snapshot
SBA ORIGINATIONS, ACQUISITIONS, & SERVICING -S EGMENT SNAPSHOT 8 1) $ in millions, as of quarter end. 2) Calculated on unpaid principal balance and excludes assets offset by guaranteed loan financing liabilities 3) Includes interest income, accretion of discount, and servicing income net of interest
Slide 9: Loan Acquisitions - Segment Snapshot
LOAN ACQUISITIONS -S EGMENT SNAPSHOT 9 1) Excludes joint venture investments. 2) $ in millions, as of quarter end. 3) Represents fixed rate loans that have been securitized. 4) Calculated on unpaid principal balance 5) Includes interest income, accretion of discount, and servicing income net of inte
Slide 10: Residential Mortgage Banking - Segment Snapshot
RESIDENTIAL MORTGAGE BANKING –S EGMENT SNAPSHOT 10 1) $ in millions. Represents activity during the quarter. • Elevated originations of $1.2 billion • Recapture rates of 37% • Average margin of 198 bps for the quarter, leveling off at 152 bps at quarter end $8.3 $8.7 $9.1 $9.5 $9.9 $7.5 $8.0 $8.5 $9
Slide 11: Diversified, Complementary, and Scalable Platforms
DIVERSIFIED, COMPLEMENTARY, AND SCALABLE PLATFORMS (1) Assets include loans, MBS, servicing assets, JV investments, real estate owned, and purchased future receivables. (2) Based on QTD Distributable Earnings. Distributable earnings includes interest income, accretion of discount, MSR creation, inco
Slide 12: Loan Portfolio Composition as of March 31, 2021
LOAN PORTFOLIO COMPOSITION AS OF MARCH 31, 2021(1)(2) Geographic Location Lien Position (1) As a percent of unpaid principal balance (2) Excludes loans held-for-sale, at fair value (3) Collateral Type SBA Collateral Type 12 California 19% Texas 14% Florida 8% New York 11% Georgia 6% Other 42% First
Slide 13: Current Expected Credit Losses
13 CURRENT EXPECTED CREDIT LOSSES
Slide 14: Loan Portfolio - Risk Ratings as of March 31, 2021
LOAN PORTFOLIO –R ISK RATINGS AS OF MARCH 31, 2021(1)(2)(3) CREDIT QUALITY INDICATORS (1) Commercial real estate portfolio only (2) As a percent of unpaid principal balance (3) Excludes loans held-for-sale, at fair value 14 Bucket 1 35% Bucket 2 47% Bucket 3 7% Bucket 4 6% Bucket 5 5% CRITERIA • Buc
Slide 15: Capital Structure
CAPITAL STRUCTURE ► Current cash and available liquidity of $424 million ► Closed $201 million in Baby Bonds in Q1 with 5-year maturity and 5 ¾ coupon ► Redeemed existing $50 million 6 ½ Baby Bonds ► Closed $768 million CRE CLO with AAA bonds pricing at +100 15 Total Debt + Equity LIQUIDITY UPDATE H
Slide 16: Financing and Leverage
FINANCING AND LEVERAGE 16 2.8x 2.1x 2.0x 2.2x 2.3x 4.9x 4.7x 4.5x 4.5x 5.1x - 1.0 2.0 3.0 4.0 5.0 6.0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Historical Leverage Recourse Total HISTORICAL LEVERAGE
Slide 17: Credit and Repurchase Facilities
CREDIT AND REPURCHASE FACILITIES 17 1) Commitment size is €200.0 million and has been converted for purposes of this disclosure.
Slide 18: Financial Snapshot
FINANCIAL SNAPSHOT ($ in thousands, except per share data) 18 (5) Excludes the equity component of our 2017 convertible note issuance 1) Average carrying value includes average quarterly carrying value of loan and servicing asset balances 2) Gross yields include interest income, accretion of discoun
Slide 19: Appendix
READY CAPITAL. APPENDIX
Slide 20: Balance Sheet by Quarter
BALANCE SHEET BY QUARTER Cash and cash equivalents S 122265 $257,017 149847 $ 138975 $ 308.428 ited cash 93,164 91530 46204 47097 62901 1,969,052 1432807 1.286.935. 1.550624 1,811,826 ‘Loans, hed forsale, at fair valve 08,328 340,719 340.288 473078 = 105,248, 106,204 74931 1.202008 78540 T5411 90.42
Slide 21: Statement of Income by Quarter
STATEMENT OF INCOME BY QUARTER 21 (1) Certain balances have been reclassified to match current period presentation
Slide 22: Distributable Earnings Reconciliation by Quarter
DISTRIBUTABLE EARNINGS RECONCILIATION BY QUARTER 22 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: Ready Capital
_ CAPITAL. RC LISTED NYSE