8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 6, 2022

READY CAPITAL CORPORATION

(Exact name of registrant as specified in its charter)

Maryland	001-35808	90-0729143
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		Identification No.)

1251 Avenue of the Americas, 50^th Floor
New York, NY 10020

(Address of principal executive offices)
(Zip Code)

Registrant's telephone number, including area code: (212) 257-4600

n/a
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value per share	RC	New York Stock Exchange
Preferred Stock, 6.25% Series C Cumulative Convertible, par value $0.0001 per share	RC PRC	New York Stock Exchange
Preferred Stock, 6.50% Series E Cumulative Redeemable, par value $0.0001 per share	RC PRE	New York Stock Exchange
7.00% Convertible Senior Notes due 2023	RCA	New York Stock Exchange
6.20% Senior Notes due 2026 5.75% Senior Notes due 2026	RCB RCC	New York Stock Exchange New York Stock Exchange

Item 2.02. Results of Operations and Financial Condition

On May 6, 2022, Ready Capital Corporation (the “Company”) issued an earnings release announcing the financial results for the quarter ended March 31, 2022. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

On May 6, 2022, the Company posted supplemental financial information on the Investor Relations section of its website (www.readycapital.com). A copy of the supplemental financial information is furnished as Exhibit 99.2 hereto and incorporated herein by reference.

The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, unless it is specifically incorporated by reference therein.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

1,
Exhibit No.	Description
99.1	Earnings Release, dated May 6, 2022
99.2	Supplemental Financial Information for the quarter ended March 31, 2022
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

READY CAPITAL CORPORATION
By:	/s/ Andrew Ahlborn
	Name:  Andrew Ahlborn
	Title:   Chief Financial Officer

Date: May 6, 2022

EX-99.1

Exhibit 99.1

READY CAPITAL CORPORATION REPORTS FIRST QUARTER 2022 RESULTS

- GAAP EARNINGS PER COMMON SHARE OF $0.70 -

- DISTRIBUTABLE EARNINGS PER COMMON SHARE OF $0.52 -

- DISTRIBUTABLE RETURN ON AVERAGE STOCKHOLDERS’ EQUITY OF 13.6% -

New York, New York, May 6, 2022 / PRNewswire / – Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services small-to-medium balance commercial loans, today reported financial results for the quarter ended March 31, 2022.

“Ready Capital’s first quarter results are reflective of our sustained expansion of our core lending channels, the addition of complimentary lending products and the ongoing growth of our business,” commented Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “The quarter was highlighted by record SBC originations in addition to the closing of the merger with Mosaic Real Estate Credit. Both mark significant milestones in achieving the scale necessary to deliver consistent solutions to our customers.”

First Quarter Highlights

● Completed a $542 million merger with Mosaic Real Estate Credit to expand the Company’s ability to provide full life-cycle lending to small balance commercial (“SBC”) properties

● Total investments of $3.1 billion, including $2.2 billion of SBC originations and acquisitions, $769.1 million of residential mortgage loans, and $101.0 million of U.S. Small Business Administration 7(a) loans

● Closed a $1.1 billion commercial mortgage collateralized loan obligation, the Company’s largest CRE CLO to date

● Raised $107.1 million in gross proceeds in an underwritten public offering of 7,000,000 shares of common stock

● Declared and paid dividend of $0.42 per share in cash with distributable earnings coverage of the common dividend at 1.3x

● Net book value of $15.22 per share of common stock as of March 31, 2022

Subsequent Events

● Closed an underwritten public offering of $120.0 million in aggregate principal amount of 6.125% senior unsecured notes due 2025

● Completed the securitization of $276.8 million of fixed-rate SBC loans and issued $204.5 million of senior bonds at a weighted average pass-through rate of 4.2%

Use of Non-GAAP Financial Information

In addition to the results presented in accordance with U.S. GAAP, this press release includes distributable earnings, formerly referred to as core earnings, which is a non-U.S. GAAP financial measure. The Company defines distributable earnings as net income adjusted for unrealized gains and losses related to certain mortgage backed securities (“MBS”) not retained by us as part of our loan origination business, realized gains and losses on sales of certain MBS, unrealized gains and losses related to residential mortgage servicing rights (“MSR”), unrealized current non-cash provision for credit losses on accrual loans and one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, merger related expenses, or other one-time items.

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, including the determination of dividends. However, because Distributable Earnings is an incomplete measure of the Company's financial performance and involves differences from net income computed in accordance with U.S. GAAP, it should be considered along with, but not as an alternative to, the Company's net income computed in accordance with U.S. GAAP as a measure of the Company's financial performance. In addition, because not all companies use identical calculations, the Company's presentation of Distributable Earnings may not be comparable to other similarly-titled measures of other companies.

In calculating Distributable Earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains and losses on MBS acquired by the Company in the secondary market but is not adjusted to exclude unrealized gains and losses on MBS retained by Ready Capital as part of its loan origination businesses, where the Company transfers originated loans into an MBS securitization and the Company retains an interest in the securitization. In calculating Distributable Earnings, the Company does not adjust Net Income (in accordance with U.S. GAAP) to take into account unrealized gains and losses on MBS retained by us as part of the loan origination businesses because the unrealized gains and losses that are generated in the loan origination and securitization process are considered to be a fundamental part of this business and an indicator of the ongoing performance and credit quality of the Company’s historical loan originations. In calculating Distributable Earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude realized gains and losses on certain MBS securities considered to be non-distributable. Certain MBS positions are considered to be non-distributable due to a variety of reasons which may include collateral type, duration, and size.

In addition, in calculating Distributable Earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains or losses on residential MSRs, held at fair value.  The Company treats its commercial MSRs and residential MSRs as two separate classes based on the nature of the underlying mortgages and the treatment of these assets as two separate pools for risk management purposes.  Servicing rights relating to the Company’s small business commercial business are accounted for under ASC 860, Transfer and Servicing, while the Company’s residential MSRs are accounted for under the fair value option under ASC 825, Financial Instruments.  In calculating Distributable Earnings, the Company does not exclude realized gains or losses on either commercial MSRs or residential MSRs, held at fair value, as servicing income is a fundamental part of Ready Capital’s business and is an indicator of the ongoing performance.

To qualify as a REIT, the Company must distribute to its stockholders each calendar year at least 90% of its REIT taxable income (including certain items of non-cash income), determined without regard to the deduction for dividends paid and excluding net capital gain. There are certain items, including net income generated from the creation of MSRs, that are included in distributable earnings but are not included in the calculation of the current year’s taxable income. These differences may result in certain items that are recognized in the current period’s calculation of distributable earnings not being included in taxable income, and thus not subject to the REIT dividend distribution requirement until future years.

The table below reconciles Net Income computed in accordance with U.S. GAAP to Distributable Earnings.

(in thousands)	Three Months Ended March 31, 2022
Net Income	$	64,263
Reconciling items:
Unrealized gain on mortgage servicing rights		(32,599)
Impact of ASU 2016-13 on accrual loans		1,968
Non-recurring REO impairment		1,567
Merger transaction costs and other non-recurring expenses		6,655
Total reconciling items	$	(22,409)
Income tax adjustments		7,009
Distributable earnings	$	48,863
Less: Distributable earnings attributable to non-controlling interests		589
Less: Income attributable to participating shares		2,412
Distributable earnings attributable to common stockholders	$	45,862
Distributable earnings per common share - basic	$	0.52
Distributable earnings per common share - diluted	$	0.48

U.S. GAAP return on equity is based on U.S. GAAP net income, while distributable return on equity is based on distributable earnings, which adjusts U.S. GAAP net income for the items in the distributable earnings reconciliation above.

Webcast and Earnings Conference Call

Management will host a webcast and conference call on Friday, May 6, 2022 at 8:30 am ET to provide a general business update and discuss the financial results for the quarter ended March 31, 2022.

The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in. The webcast of the conference call will be available in the Investor Relations section of the Company’s website at www.readycapital.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.  

To Participate in the Telephone Conference Call:

Dial in at least five minutes prior to start time.

Domestic: 1-844-825-9789

International: 1-412-317-5180

Conference Call Playback:

Domestic: 1-844-512-2921

International: 1-412-317-6671

Replay Pin #: 10166523

The playback can be accessed through May 20, 2022.

Safe Harbor Statement

This press release 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 safe harbor provided by the same. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, applicable regulatory changes; general volatility of the capital markets; changes in the Company’s investment objectives and business strategy; the availability of financing on acceptable terms or at all; the availability, terms and deployment of capital; the availability of suitable investment opportunities; changes in the interest rates or the general economy; increased rates of default and/or decreased recovery rates on investments; changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of Company’s assets; the degree and nature of competition, including competition for the Company's target assets; and other factors, including those set forth in the Risk Factors section of the Company's most recent Annual Report on Form 10-K filed with the SEC, and other reports filed by the Company with the SEC, copies of which are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

About Ready Capital Corporation

Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services small- to medium-sized balance commercial loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program. Headquartered in New York, New York, the Company employs over 600 professionals nationwide.

Contact

Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com

Additional information can be found on the Company’s website at www.readycapital.com

READY CAPITAL CORPORATION

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands)	March 31, 2022		December 31, 2021
Assets
Cash and cash equivalents	$	211,369	$	229,531
Restricted cash		56,963		51,569
Loans, net (including $10,722 and $10,766 held at fair value)		4,062,335		2,915,446
Loans, held for sale, at fair value		523,214		552,935
Paycheck Protection Program loans (including $1,843 and $3,243 held at fair value)		554,656		870,352
Mortgage-backed securities, at fair value		93,259		99,496
Loans eligible for repurchase from Ginnie Mae		82,975		94,111
Investment in unconsolidated joint ventures (including $8,610 and $8,894 held at fair value)		149,475		141,148
Investments held to maturity (including $17,053 held at fair value)		57,285		—
Purchased future receivables, net		8,753		7,872
Derivative instruments		36,852		7,022
Servicing rights (including $159,834 and $120,142 held at fair value)		244,143		204,599
Real estate owned, held for sale		119,207		42,288
Other assets		186,089		172,098
Assets of consolidated VIEs		5,089,669		4,145,564
Total Assets	$	11,476,244	$	9,534,031
Liabilities
Secured borrowings		3,274,324		2,517,600
Paycheck Protection Program Liquidity Facility (PPPLF) borrowings		627,445		941,505
Securitized debt obligations of consolidated VIEs, net		3,864,150		3,214,303
Convertible notes, net		113,531		113,247
Senior secured notes, net		342,454		342,035
Corporate debt, net		446,118		441,817
Guaranteed loan financing		332,398		345,217
Contingent consideration		92,148		16,400
Liabilities for loans eligible for repurchase from Ginnie Mae		82,975		94,111
Derivative instruments		2,620		410
Dividends payable		51,161		34,348
Loan participations sold		56,386		—
Due to third parties		38,846		668
Accounts payable and other accrued liabilities		184,592		183,411
Total Liabilities	$	9,509,148	$	8,245,072
Preferred stock Series C, liquidation preference $25.00 per share (refer to Note 21)		8,361		8,361
Commitments & contingencies (refer to Note 25)
Stockholders’ Equity
Preferred stock Series E, liquidation preference $25.00 per share (refer to Note 21)		111,378		111,378
Common stock, $0.0001 par value, 500,000,000 shares authorized, 114,335,948 and 75,838,050 shares issued and outstanding, respectively		11		8
Additional paid-in capital		1,723,099		1,161,853
Retained earnings		21,661		8,598
Accumulated other comprehensive income (loss)		(4,704)		(5,733)
Total Ready Capital Corporation equity		1,851,445		1,276,104
Non-controlling interests		107,290		4,494
Total Stockholders’ Equity	$	1,958,735	$	1,280,598
Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity	$	11,476,244	$	9,534,031

READY CAPITAL CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended March 31,
(in thousands, except share data)	2022		2021
Interest income	$	124,405	$	73,371
Interest expense		(61,017)		(50,761)
Net interest income before provision for loan losses	$	63,388	$	22,610
Recovery of (provision for loan losses)		(1,542)		8
Net interest income after (provision for) recovery of loan losses	$	61,846	$	22,618
Non-interest income
Residential mortgage banking activities		8,424		41,409
Net realized gain on financial instruments and real estate owned		8,007		8,846
Net unrealized gain on financial instruments		45,315		20,996
Servicing income, net of amortization and impairment of $3,345 and $1,942		10,528		15,635
Income on purchased future receivables, net of allowance for doubtful accounts of ($125) and $995		2,469		2,317
Income (loss) on unconsolidated joint ventures		6,563		(809)
Other income		6,501		571
Total non-interest income	$	87,807	$	88,965
Non-interest expense
Employee compensation and benefits		(27,968)		(22,777)
Allocated employee compensation and benefits from related party		(3,000)		(2,123)
Variable expenses on residential mortgage banking activities		(979)		(15,485)
Professional fees		(5,126)		(2,982)
Management fees – related party		(3,196)		(2,693)
Loan servicing expense		(8,920)		(6,104)
Transaction related expenses		(5,699)		(6,307)
Other operating expenses		(12,653)		(15,484)
Total non-interest expense	$	(67,541)	$	(73,955)
Income before provision for income taxes		82,112		37,628
Income tax provision		(17,849)		(8,681)
Net income	$	64,263	$	28,947
Less: Dividends on preferred stock		1,999		281
Less: Net income attributable to non-controlling interest		775		659
Net income attributable to Ready Capital Corporation	$	61,489	$	28,007
Earnings per common share - basic	$	0.70	$	0.49
Earnings per common share - diluted	$	0.66	$	0.49
Weighted-average shares outstanding
Basic		87,707,281		56,817,632
Diluted		95,402,494		56,843,448
Dividends declared per share of common stock	$	0.42	$	0.40

READY CAPITAL CORPORATION

UNAUDITED SEGMENT REPORTING

FOR THE THREE MONTHS ENDED MARCH 31, 2022

			Small		Residential
	SBC Lending		Business		Mortgage		Corporate-
(in thousands)	and Acquisitions		Lending		Banking		Other		Consolidated
Interest income	$	96,343	$	26,237	$	1,825	$	—	$	124,405
Interest expense		(53,093)		(5,690)		(1,958)		(276)		(61,017)
Net interest income before provision for loan losses	$	43,250	$	20,547	$	(133)	$	(276)	$	63,388
Provision for loan losses		(270)		(1,272)		—		—		(1,542)
Net interest income after provision for loan losses	$	42,980	$	19,275	$	(133)	$	(276)	$	61,846
Non-interest income
Residential mortgage banking activities	$	—	$	—	$	8,424	$	—	$	8,424
Net realized gain on financial instruments and real estate owned		882		7,125		—		—		8,007
Net unrealized gain on financial instruments		12,429		288		32,598		—		45,315
Servicing income, net		920		1,493		8,115		—		10,528
Income on purchased future receivables, net		—		2,469		—		—		2,469
Income on unconsolidated joint ventures		6,563		—		—		—		6,563
Other income		3,014		2,871		24		592		6,501
Total non-interest income	$	23,808	$	14,246	$	49,161	$	592	$	87,807
Non-interest expense
Employee compensation and benefits		(10,160)		(9,518)		(7,534)		(756)		(27,968)
Allocated employee compensation and benefits from related party		(300)		—		—		(2,700)		(3,000)
Variable expenses on residential mortgage banking activities		—		—		(979)		—		(979)
Professional fees		(2,401)		(1,468)		(264)		(993)		(5,126)
Management fees – related party		—		—		—		(3,196)		(3,196)
Loan servicing expense		(5,875)		(502)		(2,543)		—		(8,920)
Transaction related expenses		—		—		—		(5,699)		(5,699)
Other operating expenses		(5,376)		(3,787)		(2,024)		(1,466)		(12,653)
Total non-interest expense	$	(24,112)	$	(15,275)	$	(13,344)	$	(14,810)	$	(67,541)
Income (loss) before provision for income taxes	$	42,676	$	18,246	$	35,684	$	(14,494)	$	82,112
Total assets	$	9,520,677	$	1,217,726	$	493,671	$	244,170	$	11,476,244

EX-99.2

Exhibit 99.2

SUPPLEMENTAL FINANCIAL DATAQ1 2022

2DisclaimerThispresentationcontainsstatementsthatconstitute“forward-lookingstatements,”assuchtermisdefinedinSection27AoftheSecuritiesActof1933,asamended,andSection21EoftheSecuritiesExchangeActof1934,asamended,andsuchstatementsareintendedtobecoveredbythesafeharborprovidedbythesame.Thesestatementsarebasedonmanagement’scurrentexpectationsandbeliefsandaresubjecttoanumberoftrendsanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromthosedescribedintheforward-lookingstatements;ReadyCapitalCorporation(the“Company”)cangivenoassurancethatitsexpectationswillbeattained.FactorsthatcouldcauseactualresultstodiffermateriallyfromtheCompany’sexpectationsincludethosesetforthintheRiskFactorssectionofthemostrecentAnnualReportonForm10-KfiledwiththeSECandotherreportsfiledbytheCompanywiththeSEC,copiesofwhichareavailableontheSEC’swebsite,www.sec.gov.TheCompanyundertakesnoobligationtoupdatethesestatementsforrevisionsorchangesafterthedateofthisrelease,exceptasrequiredbylaw.Thispresentationincludescertainnon-GAAPfinancialmeasures,includingDistributableearnings.Thesenon-GAAPfinancialmeasuresshouldbeconsideredonlyassupplementalto,andnotassuperiorto,financialmeasuresinaccordancewithGAAP.PleaserefertotheAppendixforthemostrecentGAAPinformation.Thispresentationalsocontainsmarketstatisticsandindustrydatawhicharesubjecttouncertaintyandarenotnecessarilyreflectiveofmarketconditions.ThesehavebeenderivedfromthirdpartysourcesandhavenotbeenindependentlyverifiedbytheCompanyoritsaffiliates.Allmaterialpresentediscompiledfromsourcesbelievedtobereliableandcurrent,butaccuracycannotbeguaranteed.AlldataisasofMarch31,2022,unlessotherwisenoted.

3First Quarter 2022 Results Net income of $64.3 million1, or $0.70 per common share Distributable earnings of $48.9 million1, or $0.52 per common shareDeclared dividend of $0.42 per common share Earnings / Dividends Return on Equity2of 18.0%Distributable Return on Equity3of 13.6%Dividend Yield4of 11.2% Returns CREoriginationsandacquisitionsof$2.2billionSBAloanoriginationsof$101.0millionResidentialmortgageloanoriginationsof$769.1million Loan Originations5/ Acquisitions1.Before dividends on preferred securities and inclusive of non-controlling interest2.Return on equity is an annualized percentage equal to quarterly net income over the average monthly total stockholders’ equity for the period3.Distributable return on equity is an annualized percentage equal to distributable earnings over the average monthly total stockholders’ equity for the period. Refer to the “Distributable Earnings Reconciliation by Quarter” slide for a reconciliation of GAAP Net Income to Distributable Earnings4.Q1 dividend yield for the period is based on the 3/31/2022 closing share price of $15.065.Represents fully committed amounts

4First Quarter 2022 Results (continued) Total liquidity of $326million1including cash, anticipated warehouse advances, principal and interest receivable from servicers, and anticipated proceeds from available-for-sale assets Current Liquidity Closeda$1.1billioncommercialmortgagecollateralizedloanobligation,theCompany’slargestCRECLOtodateClosedanunderwrittenpublicofferingof$120.0millionaggregateprincipalamountof6.125%seniorunsecurednotesdue2025Closedasecondaryofferingof7,000,000sharesofcommonstockfornetproceedsof$106.6million Capital Markets Netbookvaluepershareof$15.22percommonshareTotalleverageof4.4xandrecourseleverageratioof1.4x2 Balance Sheet TheCompanycloseditsacquisitionofMosaicRealEstateCredit,LLC.(MREC)andrelatedentities.Thetransactionincreasedcapitalization$458.1millionandexpandedtheCompany’slendingcapabilitiesintoconstructionlending. Mosaic Merger1.Liquidity balance as of April 28, 20222.Recourse leverage ratio excludes $1.4 billion of secured borrowings that are non-recourse to the Company.

5Return on Equity1.Leveredyieldincludesinterestincome,accretionofdiscount,MSRcreation,incomefromunconsolidatedjointventures,realizedgains(losses)onloansheldforsale,unrealizedgains(losses)onloansheldforsaleandservicingincomenetofinterestexpenseandamortizationofdeferredfinancingcostsonanannualizedbasis.2.GAAPROEisbasedonGAAPNetIncome,whileDistributableROEisbasedonDistributableEarnings,whichadjustsGAAPNetIncomeforcertainitemsdetailedonthe“DistributableEarningsReconciliation”slide.3.ROEbasedonnetincomebeforetaxoftheResidentialMortgageBankingbusinesslinedividedbythebusinessline’saveragemonthlyequity. SegmentSBC Lending and Acquisitions12.8%12.8%89.7% Small Business Lending43.3%43.3%5.4% Residential Mortgage Banking (3)134.5%11.6%4.9% 7.3 5.9 4.0 5.1 27.7%23.9%18.4%21.8%4.9 4.0 4.9 4.0 (0.4) (0.3) 0.1 - 5.3 7.5 5.3 7.5 (2.1) (0.9) - - (10.7) (11.2) (10.5) (10.8) (0.9) (1.8) (0.9) (1.8) (5.2) (2.4) (3.1) (2.2) Dividends on preferred stock(0.6) (0.7) (0.6) (0.7) 18.0%18.1%13.6%17.8% GAAP ROE (2) Distributable ROE (2) Levered Yield (1) DistributableLevered Yield (1) EquityAllocation Q1'22 Q4'21 Q1'22 Q4'21 Corporate leverage, net of non-earning assets 16.7 18.0 % 14.4 % Return on equity Gross return on equity Realized unrealized gains, net Non-recurring gains, losses and expenses Investment advisory fees Provision for income taxes Loan loss provision PPP revenue, net of direct expenses Operating expenses 20.4 % %

6Diversified, Complementary, & Scalable Platforms 9%12%58%2%5%11%3% Acquisitions Fixed rate Bridge Freddie Mac Construction Small Business Lending Residential Mortgage Banking PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 ($ in thousands) $14,876$3,061$39,065$4,532$28,663$15,428$0$10,000$20,000$30,000$40,000AcquisitionsFixed rateBridgeFreddieMacSmallBusinessLendingResidentialMortgageBanking1.Assetsincludeloans,MBS,servicingassets,JVinvestments,realestateowned,andpurchasedfuturereceivables.2.BasedonQTDDistributableEarningsincludinginterestincome,accretionofdiscount,MSRcreation,incomefromunconsolidatedjointventures,realizedgains(losses)onloansheldforsale,unrealizedgains(losses)onloansheldforsaleandservicingincomenetofinterestexpenseandamortizationofdeferredfinancingcostsonanannualizedbasis.

7SBC and SBA Investment by Product Type $52.0$148.7$144.3$135.7$101.0$6.0$53.6$104.9$98.2$60.9$164.4$240.5$135.5$169.3$135.0$652.8$807.2$730.4$1,529.2$1,936.6$168.0$29.0$5.2$136.2$443.8$62.4$0$400$800$1,200 $1,600 $2,000 $2,400Q1'21Q2'21Q3'21Q4'21Q1'22 SBA Fixed Rate/CMBS Freddie Mac Bridge Acquired Other $2,301.1 $2,405.2 $1,419.3 $1,250.01.Origination volumes are based on fully committed amounts in millions QUARTERLY GROWTH1 $875.2

8SBC Lending and Acquisitions1.Excludes joint venture investments2.53.2% of fixed rate loans match funded3. Calculated on unpaid principal balance4. Includes realized and unrealized gains (losses) on loans held for sale and MSR creation5. Includes interest income, accretion of discount, and servicing income net of interest expense and amortization of deferredfinancing costs6. Includes originated SBC floating rate loans that are included in our RCMT securitization and therefore, categorized as fixed/cmbs GROSS LEVERED YIELD LOAN COUNT(1)UPBBOOK VALUEWA LTVWA COUPONFIXED/FLOAT(2)60+ Days Past Due(3)2,510$8.77B$8.69B64.7%4.5%20.7 / 79.3%1.6%ACQUISITIONS1,652$798M$787M37.2%5.6%49.0 / 51.0%3.3%FIXED RATE(6)323$1.29B$1.29B60.3%4.9%1.8 / 98.2%1.9%BRIDGE517$6.29B$6.22B69.4%4.2%2.8 / 97.2%1.3%FREDDIE MAC8$25M$26M61.5%3.6%87.7 / 12.3%11.9%CONSTRUCTION10$366M$366M59.5%6.8%3.5 / 96.5%0.0% CURRENT QUARTER HIGHLIGHTS 10.4%10.4%10.1%10.3%11.5%1.7%3.0%2.2%2.0%1.3%0%5%10% 15%Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022 Income on joint venture investments and gains on loans, held for sale Gross levered yield (ex. gains)45•RecordBridgeloanoriginationsof$1.9billionataveragespreadofplus3.62%•SBCmoneyuppipelineof$876.6million,including$284.0millionfundedinApril•79%oftheSBCportfolioisfloatingratewithaverageLiborfloorsof55bps

9Small Business Lending GROSS LEVERED YIELD LOAN COUNTUPBBOOK VALUEWA LTVWA COUPONFIXED/FLOAT60+ Days Past Due(1)2,078$649M$614M88.6%5.6%0.3 / 99.7%1.3% CURRENT QUARTER HIGHLIGHTS 37.0%18.6%20.7%16.5%17.6%50.4%80.6%55.4%33.2%25.7%0%20%40%60%80%100%Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022 Gross levered yield (ex. gains) Gains on loans, held for sale1. Includes interest income, accretion of discount, and servicing income net of interest expense and amortization of deferredfinancing costs2. Includes realized and unrealized gains (losses) on loans held for sale and MSR creation21•SBAnetsalespremiumspeakingat16.1%andaveraging11.5%net,with18.0%ofSBAsalessoldforahigherfutureIOstrip•Currentmoneyuppipelineof$202.9million,including$32.0millionfundedinApril•After-taxPPPincomewas$13.7million•$101.0millionofSBAloanoriginations,including$8.3millionofsmallloanoriginations.Currentlythe8thlargestsmallloanlendernationwide.

10Loan Portfolio Composition 21%15%14%11%39%Small Business Lending Lodging Retail Doctors Eating Place Other1. Calculated on unpaid principal balance and excludes assets offset by guaranteed loan financing liabilities 65%9%8%6%12%SBC Lendingand Acquisitions Multi-family Mixed-use Retail Office Other Investments PROPERTY TYPE GEOGRAPHY 20%12%7%7%7%47%SBC Lendingand Acquisitions Texas California Arizona Florida Georgia Other 17%11%8%6%5%53%Small Business Lending California Texas Florida Washington Georgia Other

11 QUARTERLY ORIGINATIONS UPB $768.9MSEGMENT SNAPSHOTResidential Mortgage Banking 61%39%Production by Purpose Purchased Refinanced QUARTERLY SALES UPB $798.7M 77%20% 3% Sales by Investor Fannie/Freddie Ginnie Mae Other MSR PORTFOLIO UPDATE ($ in billions) 46%37%17%Production by Platform Retail Correspondent Wholesale $9.9$10.4$10.7$11.0$11.43.6%3.5%3.4%3.4%3.3%2.0%2.5% 3.0% 3.5% 4.0%$0$2$4$6$8$10$12Q1'21Q2'21Q3'21Q4'21Q1'22 UPB WAC

12Loan Portfolio –Risk Rating BUCKET1:VeryLowRiskofLoss:Neworiginationorcurrentwithstrongcreditmetrics(LTV/DSCR/DY).Noexpectedlosses.BUCKET2:LowRiskofLoss:Currentwithmaturity>6months.LowercreditmetricswithpossibilityofinclusiononCREFCwatchlist.Noexpectedlosses.BUCKET3:MediumRiskofLoss:Currentwithneartermmaturitiesorinforbearance.Lossunlikelywithnospecificreservesbooked.BUCKET4:HigherRisk:Loandelinquentorinmaturitydefault.Potentialissueswithsponsororbusinessplans.Minimallossespossibleandadequatelyreservedincurrentperiod.BUCKET5:Highestrisk:Loanindefaultorspecialservicing.Specificlossesidentifiedandadequatelyreservedforincurrentperiod. RISK RATING DISTRIBUTION CRITERIA 92%3%2%3%88%6%4%2%0%20%40%60% 80%100%1 & 2345 SBC SBA 1.82 1.72 1.62 1.51 1.47 1.88 1.69 1.71 1.68 1.63 - 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00Q1'21Q2'21Q3'21Q4'21Q1'22 SBC SBA AVERAGE RISK RATING

13Debt-Leverage $902$1,833$1,441$3,864$627Corporate DebtPPPLFSecuritized Debt ObligationsNon-Recourse Secured BorrowingsRecourse Secured Borrowing 0.3x1.9x0.8x0.9x0.5x Debt BalanceLeverage Ratio•Recourseleverageratioof1.4x•Totalleverageof4.4x•Fullmarkettomarketliabilitiesandcreditmarktomarketliabilitiesrepresent20%and12%oftotaldebt Recourse Leverage by Reporting Segment(1)($ in millions) $1,454$122$257$9020.6x7.1x2.0x0.5x-2.00.02.04.06.0 8.0 10.0$0$500$1,000$1,500SBCSBLResidentialCorporate Debt Recourse Leverage1. Recourse leverage by reporting segment is based on the segment recourse debt balance over invested equity in the segment and excludes guaranteed loan financings

14Financial Snapshot Investment Type Average Carrying Value (1) Gross Yield(2) Average Debt Balance Debt Cost (3) Levered Yield SBC Lending and Acquisitions $ 7,781,688 5.2%$ 5,856,753 2.7% 12.8% Small Business Lending $ 383,989 15.8%$ 268,973 4.0% 43.3% Total $ 8,165,677 5.7% $ 6,125,726 2.8% 20.4% Book Equity Value Metrics Common Stockholders' equity $ 1,740,067 Common Stockholders' equity (adjusted) (5) $ 1,739,533 Total Common Shares outstanding 114,335,948 Net Book Value per Common Share $ 15.22 Adjusted Net Book Value per Common Share $ 15.21 Loan Portfolio Metrics (4)% Fixed vs Floating Rate 21% / 79% % Originated vs Acquired 75% / 25% Weighted Average LTV -SBC 65% Weighted Average LTV -SBA 89% Q1 2022 Earnings Data Metrics Net income | Distributable earnings $64,263 | $48,863 Earnings per share -Basic and diluted $0.70 | $0.66 Distributable Earnings per share -Basic and diluted $0.52 | $0.48 Return on Equity per Common Share 18.0% Distributable Return on Equity per Common Share 13.6% Dividend Yield (6) 11.2% Servicing Portfolio MetricsSBA servicing rights -UPB $ 883,303 SBA servicing rights-carrying value $ 22,891 Multi-family servicing rights -UPB $ 4,490,286 Multi-family servicing rights -carrying value $ 61,418 Residential servicing rights -UPB $ 11,357,330 Residential servicing rights -carrying value $ 159,834 1.Averagecarryingvalueincludesaveragequarterlycarryingvalueofloanandservicingassetbalances2.Grossyieldsincludeinterestincome,accretionofdiscount,MSRcreation,incomefromourunconsolidatedjointventure,realizedgains(losses)onloansheldforsale,unrealizedgains(losses)onloansheldforsaleandservicingincomenetofinterestexpenseandamortizationofdeferredfinancingcostsonanannualizedbasis.3.TheCompanyfinancestheassetsincludedintheInvestmentTypethroughsecuritizations,repurchaseagreements,warehousefacilitiesandbankcreditfacilities.Interestexpenseiscalculatedbasedoninterestexpenseanddeferredfinancingamortizationforthequarterended3/31/2022onanannualizedbasis.4.Excludesloans,heldforsale,atfairvalue5.Excludestheequitycomponentofour2017convertiblenoteissuance.6.Q1Dividendyieldfortheperiodisbasedonthe3/31/2022closingsharepriceof$15.06

APPENDIXAdditional Financial Information

16Balance Sheet by Quarter

17Statement of Income by Quarter (In thousands, except share data) Interest income$73,371 $103,047 $105,136 $121,942 $124,405 Interest expense (50,761) (55,415) (50,136) (57,249) (61,017) Net interest income before provision for loan losses$22,610 $47,632 $55,000 $64,693 $63,388 Recovery of (provision for) loan losses 8 (5,517) (1,579) (961) (1,542) Net interest income after (provision for) recovery of loan losses$22,618 $42,115 $53,421 $63,732 $61,846 Non-interest income Residential mortgage banking activities$41,409 $36,690 $37,270 $21,928 $8,424 Net realized gain on financial instruments and real estate owned8,846 17,183 23,210 19,642 8,007 Net unrealized gain on financial instruments20,996 4,612 5,688 8,081 45,315 Servicing income, net of amortization and impairment 15,635 11,928 10,243 10,209 10,528 Income on purchased future receivables, net2,317 2,779 2,838 2,323 2,469 Gain on bargain purchase Income (loss) on unconsolidated oint ventures(809) 3,361 3,548 816 6,563 Other income (loss) 571 (688) 5,674 3,452 6,501 Total non-interest income$88,965 $75,865 $88,471 $66,451 $87,807 Non-interest expense Employee compensation and benefits$(22,777) $(24,270) $(24,537) $(18,481) $(27,968) Allocated employee compensation and benefits from related party (2,123) (3,299) (3,804) (2,805) (3,000) Variable expenses on residential mortgage banking activities(15,485) (21,421) (24,380) (13,847) (979) Professional fees (2,982) (2,872) (6,900) (3,585) (5,126) Management fees related party (2,693) (2,626) (2,742) (2,867) (3,196) Incentive fees related party (286) (2,775) (2,358) Loan servicing expense (6,104) (6,851) (8,124) (8,904) (8,920) Transaction related expenses(6,307) (1,266) (2,629) (4,080) (5,699) Other operating expenses (15,484) (17,190) (12,926) (12,801) (12,653) Total non-interest expense$(73,955) $(80,081) $(88,817) $(69,728) $(67,541) Income before provision for income taxes$37,628 $37,899 $53,075 $60,455 $82,112 Income tax (provision) benefit (8,681) (6,995) (6,540) (6,867) (17,849) Net income$28,947 $30,904 $46,535 $53,588 $64,263 Less: Dividends on preferred stock281 3,224 1,999 1,999 1,999 Less: Net income attributable to non-controlling interest 659 444 756 371 775 Net income attributable to Ready Capital Corporation$28,007 $27,236 $43,780 $51,218 $61,489 Earnings per common share - basic$0.49 $0.38 $0.61 $0.69 $0.70 Earnings per common share - diluted$0.49 $0.38 $0.60 $0.68 $0.66 Weighted-average shares outstanding - Basic56,817,632 71,221,806 71,618,168 74,163,951 87,707,281 Weighted-average shares outstanding - Diluted56,843,448 71,385,603 71,787,228 74,326,672 95,402,494 Dividends declared per share of common stock$0.40 $0.42 $0.42 $0.42 $0.42 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022

18Distributable Earnings Reconciliation by QuarterTheCompanybelievesthatthisnon-U.S.GAAPfinancialinformation,inadditiontotherelatedU.S.GAAPmeasures,providesinvestorsgreatertransparencyintotheinformationusedbymanagementinitsfinancialandoperationaldecision-making,includingthedeterminationofdividends.However,becauseDistributableEarningsisanincompletemeasureoftheCompany'sfinancialperformanceandinvolvesdifferencesfromnetincomecomputedinaccordancewithU.S.GAAP,itshouldbeconsideredalongwith,butnotasanalternativeto,theCompany'snetincomecomputedinaccordancewithU.S.GAAPasameasureoftheCompany'sfinancialperformance.Inaddition,becausenotallcompaniesuseidenticalcalculations,theCompany'spresentationofDistributableEarningsmaynotbecomparabletoothersimilarly-titledmeasuresofothercompanies.WecalculateDistributableearningsasGAAPnetincome(loss)excludingthefollowing:i)anyunrealizedgainsorlossesoncertainMBSnotretainedbyusaspartofourloanoriginationbusinessesii)anyrealizedgainsorlossesonsalesofcertainMBSiii)anyunrealizedgainsorlossesonResidentialMSRsiv)anyunrealizedcurrentnon-cashprovisionforcreditlossesonaccrualloansv)anyunrealizedgainsorlossesonde-designatedcashflowhedgesvi)one-timenon-recurringgainsorlosses,suchasgainsorlossesondiscontinuedoperations,bargainpurchasegains,ormergerrelatedexpensesIncalculatingDistributableEarnings,NetIncome(inaccordancewithU.S.GAAP)isadjustedtoexcludeunrealizedgainsandlossesonMBSacquiredbytheCompanyinthesecondarymarketbutisnotadjustedtoexcludeunrealizedgainsandlossesonMBSretainedbyReadyCapitalaspartofitsloanoriginationbusinesses,wheretheCompanytransfersoriginatedloansintoanMBSsecuritizationandtheCompanyretainsaninterestinthesecuritization.IncalculatingDistributableEarnings,theCompanydoesnotadjustNetIncome(inaccordancewithU.S.GAAP)totakeintoaccountunrealizedgainsandlossesonMBSretainedbyusaspartoftheloanoriginationbusinessesbecausetheunrealizedgainsandlossesthataregeneratedintheloanoriginationandsecuritizationprocessareconsideredtobeafundamentalpartofthisbusinessandanindicatoroftheongoingperformanceandcreditqualityoftheCompany’shistoricalloanoriginations.IncalculatingDistributableEarnings,NetIncome(inaccordancewithU.S.GAAP)isadjustedtoexcluderealizedgainsandlossesoncertainMBSsecuritiesconsideredtobenon-distributable.CertainMBSpositionsareconsideredtobenon-distributableduetoavarietyofreasonswhichmayincludecollateraltype,duration,andsize.In2016,theCompanyliquidatedthemajorityofitsMBSportfoliofromdistributableearningstofundrecurringoperatingsegments. Inaddition,incalculatingDistributableEarnings,NetIncome(inaccordancewithU.S.GAAP)isadjustedtoexcludeunrealizedgainsorlossesonresidentialMSRs,heldatfairvalue.TheCompanytreatsitscommercialMSRsandresidentialMSRsastwoseparateclassesbasedonthenatureoftheunderlyingmortgagesandthetreatmentoftheseassetsastwoseparatepoolsforriskmanagementpurposes.ServicingrightsrelatingtotheCompany’ssmallbusinesscommercialbusinessareaccountedforunderASC860,TransferandServicing,whiletheCompany’sresidentialMSRsareaccountedforunderthefairvalueoptionunderASC825,FinancialInstruments.IncalculatingDistributableEarnings,theCompanydoesnotexcluderealizedgainsorlossesoneithercommercialMSRsorresidentialMSRs,heldatfairvalue,asservicingincomeisafundamentalpartofReadyCapital’sbusinessandisanindicatoroftheongoingperformance.ToqualifyasaREIT,theCompanymustdistributetoitsstockholderseachcalendaryearatleast90%ofitsREITtaxableincome(includingcertainitemsofnon-cashincome),determinedwithoutregardtothedeductionfordividendspaidandexcludingnetcapitalgain.Therearecertainitems,includingnetincomegeneratedfromthecreationofMSRs,thatareincludedindistributableearningsbutarenotincludedinthecalculationofthecurrentyear’staxableincome.Thesedifferencesmayresultincertainitemsthatarerecognizedinthecurrentperiod’scalculationofdistributableearningsnotbeingincludedintaxableincome,andthusnotsubjecttotheREITdividenddistributionrequirementuntilfutureyears. (In thousands, except share data) Net Income$28,947 $30,904 $46,535 $53,588 $64,263 Reconciling items: Unrealized gain on mortgage servicing rights$(15,356) $4,699 $(147) $(6,119) $(32,599) Impact of ASU 2016-13 on accrual loans(29) 4,035 (1,329) 845 1,968 Non-recurring REO impairment 510 (10) (1,441) 1,567 Merger transaction costs and other non-recurring expenses7,263 2,971 5,485 5,036 6,655 Total reconciling items$(8,122) $12,215 $3,999 $(1,679) $(22,409) Distributable earnings before income taxes$20,825 $43,119 $50,534 $51,909 $41,854 Income tax adustments 3,883 (1,691) (1,169) 626 7,009 Distributable earnings$24,708 $41,428 $49,365 $52,535 $48,863 Less: Distributable earnings attributable to non-controlling interests$563 $595 $802 $364 $589 Less: Income attributable to participating shares376 392 445 377 413 Less: Dividends on preferred stock281 3,224 1,999 1,999 1,999 Distributable earnings attributable to Common Stockholders$23,488 $37,217 $46,119 $49,795 $45,862 DIstributable earnings per share$0.41 $0.52 $0.64 $0.67 $0.52 Weighted average common shares outstanding56,817,632 71,221,806 71,618,168 74,163,951 87,707,281 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022

XML

Document and Entity Information	May 06, 2022
Document Information [Line Items]
Document Type	8-K
Document Period End Date	May 06, 2022
Entity File Number	001-35808
Entity Registrant Name	READY CAPITAL CORPORATION
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	90-0729143
Entity Address, Address Line One	1251 Avenue of the Americas, 50th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10020
City Area Code	212
Local Phone Number	257-4600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001527590
Amendment Flag	false
Common Stock, $0.0001 par value per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	RC
Security Exchange Name	NYSE
Preferred Stock, 6.25% Series C Cumulative Convertible, par value $0.0001 per share
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock, 6.25% Series C Cumulative Convertible, par value $0.0001 per share
Trading Symbol	RC PRC
Security Exchange Name	NYSE
Preferred Stock, 6.50% Series E Cumulative Redeemable, par value $0.0001 per share
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock, 6.50% Series E Cumulative Redeemable, par value $0.0001 per share
Trading Symbol	RC PRE
Security Exchange Name	NYSE
7.00% Convertible Senior Notes Due 2023
Document Information [Line Items]
Title of 12(b) Security	7.00% Convertible Senior Notes due 2023
Trading Symbol	RCA
Security Exchange Name	NYSE
6.20% Senior Notes due 2026
Document Information [Line Items]
Title of 12(b) Security	6.20% Senior Notes due 2026
Trading Symbol	RCB
Security Exchange Name	NYSE
5.75% Senior Notes Due 2026
Document Information [Line Items]
Title of 12(b) Security	5.75% Senior Notes due 2026
Trading Symbol	RCC
Security Exchange Name	NYSE