Ready Capital Corporation · NYSE:RC
Ready Capital — Q1 2023 Earnings Presentation
20 slides from Ready Capital's earnings presentation, May 8, 2023
Slide 1: Supplemental Financial Data Q1 2023
SUPPLEMENTAL FINANCIAL DATA Q1 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: First Quarter 2023 Results
3 First Quarter 2023 Results Net income of $37.0 million1, or $0.30 per common share Distributable earnings of $38.1 million2, or $0.31 per common share Declared dividend of $0.40 per common share Earnings / Dividends Return on Equity3 of 8.2% Distributable Return on Equity4 of 8.5% Divi
Slide 4: First Quarter 2023 Results (continued)
4 First Quarter 2023 Results (continued) Completed the securitization of $586.0 million of floating rate SBC loans and sold $483.5 million of senior bonds with a weighted average cost of debt of SOFR + 2.9%. Capital Markets Net book value per share of $15.07 per common share Total leverage of
Slide 5: Return on Equity
5 Return on Equity 1. Levered yield includes interest income, accretion of discount, MSR creation, income from unconsolidated joint ventures, realized gains (losses) on loans held for sale, unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization
Slide 6: Diversified, Complementary, & Scalable Platforms
6 Diversified, Complementary, & Scalable Platforms 68% 10% 5% 1% 6% 7% 3% Bridge Fixed rate/CMBS Construction Freddie Mac Other Small Business Lending Residential Mortgage Banking PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 ($ in thousands) $51,372 $934 $10,125 $4,552 $2,088 $18,509 $13,123 $0 $10,000 $
Slide 7: SBC and SBA Investment by Platform
7 SBC and SBA Investment by Platform $1,287.8 $955.2 $531.9 $189.7 $110.2 $60.9 $5.9 $8.3 $58.0 $4.0 $36.0 $116.4 $167.3 $19.4 $197.4 $255.5 $174.5 $475.6 $276.9 $658.1 $1.5 $100.8 $128.3 $133.6 $136.9 $92.3 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Bridge Fixed Rate/CMB
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 2,557 $564M $536M 90.2% 9.4% 0.2 / 99.8% 1.1% CURRENT QUARTER HIGHLIGHTS 17.6% 15.2% 15.0% 19.6% 19.5% 25.7% 27.6% 24.2% 22.5% 20.8% 0% 20% 40% 60% 80% 100% Q1 2022 Q2 2022 Q3 2022 Q
Slide 10: Loan Portfolio Composition
10 Loan Portfolio Composition 23% 17% 12% 10% 38% Small Business Lending Lodging Retail Doctors Eating Place Other 1. Calculated on unpaid principal balance and excludes assets offset by guaranteed loan financing liabilities 72% 9% 5% 5% 9% SBC Lending and Acquisitions Multi-family Mixed-use Retail
Slide 11: Residential Mortgage Banking
11 QUARTERLY ORIGINATIONS UPB $326.0M Residential Mortgage Banking 77% 23% Production by Purpose Purchased Refinanced QUARTERLY SALES UPB $325.6M 71% 23% 6% Sales by Investor Fannie/Freddie Ginnie Mae Other MSR PORTFOLIO UPDATE ($ in billions) 48% 35% 17% 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 10% 28% 31% 8% 8% 15% $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 PROF
Slide 14: Debt - Leverage
14 Debt - Leverage Corporate Debt PPPLF Securitized Debt Obligations Non-Recourse Secured Borrowings Recourse Secured Borrowings 0.1x 3.0x 0.6x 0.8x 0.6x Debt Balance Leverage Ratio • Total leverage of 5.1x • Recourse leverage ratio of 1.4x • Majority of secured borrowings subject to non-recourse or
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 $ 9,763,848 8.2% $ 7,357,550 7.2% 11.5% Small Business Lending $ 345,317 22.0% $ 206,034 9.7% 40.3% Total $ 10,109,165 8.7% $ 7,563,584 7.2% 12
Slide 16: Appendix: Additional Financial Information
APPENDIX Additional Financial Information
Slide 17: Balance Sheet by Quarter
_ READY CAPITAL. Balance Sheet by Quarter 9130/2022 Assets Cash and cash equivalents s 211369 $ 127939 $ 208,037 $ 163081 § 11192 Restricted cash 56,963 64.748 57.675 $5,927 49.632 Loans, net 4,062,335 3,907,321 4,158,807 3,576,310 3,128,197 Loans, nel for sale, a fair value s23214 469,442 403,609 2
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.