EX-99.2 3 rc-20220804xex99d2.htm EX-99.2
Exhibit 99.2

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SUPPLEMENTAL FINANCIAL DATAQ2 2022

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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.AlldataisasofJune30,2022,unlessotherwisenoted.

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3Second Quarter 2022 Results Net income of $59.0 million1, or $0.47 per common share Distributable earnings of $60.1 million1, or $0.48 per common shareDeclared dividend of $0.42 per common share Earnings / Dividends Return on Equity2of 12.8%Distributable Return on Equity3of 13.1%Dividend Yield4of 14.1% Returns CREoriginationsandacquisitionsof$1.2billionSBAloanoriginationsof$128.8millionResidentialmortgageloanoriginationsof$746.4million 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.Q2 dividend yield for the period is based on the 6/30/2022 closing share price of $11.925.Represents fully committed amounts

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4Second Quarter 2022 Results (continued) Total liquidity of $238million1including cash, anticipated proceeds from liquidations and committed advances Current Liquidity Closeda$754.2millioncommercialmortgagecollateralizedloanobligation,consistingof25first-lienfloatingrateloansoriginatedbyRCCloseda$276.8millionfixedratesecuritizationwitha4.8%weightedaveragecostofdebtCloseda$120.0millionofferingof6.125%SeniorUnsecuredNotesdue2025Issued$80.0millioninaggregateprincipalamountof7.375%SeniorUnsecuredNotesdue2027 Capital Markets Netbookvaluepershareof$15.28percommonshareTotalleverageof4.9xandrecourseleverageratioof1.5x2 Balance Sheet Enteredintoajointventurewithpan-EuropeancommercialrealestatelendingplatformStarzRealEstate,withthegoaloforiginatingapproximately€300millioninseniorcommercialrealestateloansinEuropeoverthenexttwoyears Geographic Expansion1.Liquidity balance as of July 29, 20222.Recourse leverage ratio excludes $1.4 billion of secured borrowings that are non-recourse to the Company.

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5Return on Equity1.Leveredyieldincludesinterestincome,accretionofdiscount,MSRcreation,incomefromunconsolidatedjointventures,realizedgains(losses)onloansheldforsale,unrealizedgains(losses)onloansheldforsaleandservicingincomenetofinterestexpenseandamortizationofdeferredfinancingcostsonanannualizedbasis.2.GAAPROEisbasedonGAAPNetIncome,whileDistributableROEisbasedonDistributableEarnings,whichadjustsGAAPNetIncomeforcertainitemsdetailedonthe“DistributableEarningsReconciliation”slide.3.ROEbasedonnetincomebeforetaxoftheResidentialMortgageBankingbusinesslinedividedbythebusinessline’saveragemonthlyequity.4.Non-recurringgains,lossesandexpensesbeforeapplicabletaxexpenses SegmentSBC Lending and Acquisitions12.2%12.2%90.6% Small Business Lending35.3%35.3%4.4% Residential Mortgage Banking (3)12.5%12.5%5.0% 3.9 7.3 3.9 4.0 17.2%27.7%17.2%18.4%1.3 4.9 1.3 4.9 1.0 (0.4) 0.5 0.1 5.9 5.3 5.9 5.3 (4)(0.5) (2.1) - - (8.1) (10.7) (7.6) (10.5) (1.2) (0.9) (1.2) (0.9) (2.3) (5.2) (2.5) (3.1) Dividends on preferred stock(0.5) (0.6) (0.5) (0.6) 12.8%18.0%13.1%13.6% 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 13.3 % % Corporate leverage, net of non-earning assets 14.4 20.4 % 13.3 % GAAP ROE (2) Distributable ROE (2) Levered Yield (1) DistributableLevered Yield (1) EquityAllocation Q2'22 Q1'22 Q2'22 Q1'22

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6Diversified, Complementary, & Scalable Platforms 11%62%5%1%9%9%3% Fixed rate/CMBS Bridge Construction Freddie Mac Other Small Business Lending Residential Mortgage Banking PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 ($ in thousands) $9,185$38,698$10,000$7,901$10,601$34,750$16,049$0$10,000$20,000$30,000$40,000Fixed rate/CMBSBridgeConstructionFreddie MacOtherSmallBusinessLendingResidentialMortgageBanking31.Assetsincludeloans,MBS,servicingassets,JVinvestments,realestateowned,andpurchasedfuturereceivables.2.BasedonQTDDistributableEarningsincludinginterestincome,accretionofdiscount,MSRcreation,incomefromunconsolidatedjointventures,realizedgains(losses)onloansheldforsale,unrealizedgains(losses)onloansheldforsaleandservicingincomenetofinterestexpenseandamortizationofdeferredfinancingcostsonanannualizedbasis.3.Loanswiththe“Other”classificationaregenerallySBCacquiredloansthathavenonconformingcharacteristicsfortheFixedrate,Bridge,orConstructioncategories3

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7SBC and SBA Investment by Platform $148.7$144.3$135.7$101.0$128.8$53.6$104.9$98.2$60.9$5.9$240.5$240.3$613.1$197.4$257.0$807.2$730.4$1,529.2$1,936.6$955.2$168.0$29.0$5.2$1.5$31.4$0$400$800$1,200 $1,600 $2,000 $2,400Q2'21Q3'21Q4'21Q1'22Q2'22 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 INVESTMENT ACTIVITY1 $1,348.4

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8SBC Lending and Acquisitions1.Excludes joint venture investments2.75% of fixed rate loans match funded3. Includes realized and unrealized gains (losses) on loans held for sale and MSR creation4. Includes interest income, accretion of discount, and servicing income net of interest expense and amortization of deferredfinancing costs5. Includes originated SBC floating rate loans that are included in our RCMT securitization and therefore, categorized as Fixed/CMBS6. Loans with the “Other” classification are generally SBC acquired loans that have nonconforming characteristics for the Fixed rate, Bridge, or Construction categories GROSS LEVERED YIELD PRODUCT TYPELOAN COUNT(1)UPBBOOK VALUEWA LTVWA COUPONFIXED/FLOAT(2)60+ Days Past Due2,446$9.40B$9.32B64.9%5.2%16.5 / 83.5%2.9%FIXED RATE(5)274$1.02B$1.02B60.8%5.0%99.3 / 0.7%3.1%BRIDGE599$7.09B$7.01B69.2%4.7%0.8 / 99.2%1.3%CONSTRUCTION24$588M$594M56.5%11.4%28.0 / 72.0%18.7%OTHER(6)1,549$701M$693M33.9%5.5%44.7 / 55.3%5.3% CURRENT QUARTER HIGHLIGHTS 10.4%10.1%10.3%11.5%11.3%3.0%2.2%2.0%1.3%0.9%0%5%10% 15%Q2 2021Q3 2021Q4 2021Q1 2022Q2 2022 Income on joint venture investments and gains on loans, held for sale Gross levered yield (ex. gains)34•Bridgeloanoriginationsof$955.2millionataveragespreadofplus404bps•SBCmoneyuppipelineof$770.7million,including$435.9millionfundedinJuly•84%oftheSBCportfolioisfloatingratewithaveragefloorsof59bps•Averagespreadof480bpsincurrentpipeline

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9Small Business Lending GROSS LEVERED YIELD LOAN COUNTUPBBOOK VALUEWA LTVWA COUPONFIXED/FLOAT60+ Days Past Due2,117$590M$551M89.1%5.5%0.3 / 99.7%1.2% CURRENT QUARTER HIGHLIGHTS 18.6%20.7%16.5%17.6%15.2%80.6%55.4%33.2%25.7%27.6%0%20%40%60%80%100%Q2 2021Q3 2021Q4 2021Q1 2022Q2 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 creation3. Excludes impairment21•SBAnetsalespremiumspeakingat14.7%andaveraging9.6%net•$128.8millionofSBAloanoriginations,including$18.2millionofsmallbalanceloanoriginations.•Currentmoneyuppipelineof$235.7million,including$29.1millionfundedinJuly3

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10Loan Portfolio Composition 21%14%14%10%41%Small Business Lending Lodging Retail Doctors Eating Place Other1. Calculated on unpaid principal balance and excludes assets offset by guaranteed loan financing liabilities 69%9%7%6%9%SBC Lendingand Acquisitions Multi-family Mixed-use Retail Office Other Investments PROPERTY TYPE1 GEOGRAPHY1 20%11%7%7%7%48%SBC Lendingand Acquisitions Texas California Arizona Florida Georgia Other 16%12%8%5%5%54%Small Business Lending California Texas Florida Washington Georgia Other

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11 QUARTERLY ORIGINATIONS UPB $746.4MSEGMENT SNAPSHOTResidential Mortgage Banking 78%22%Production by Purpose Purchased Refinanced QUARTERLY SALES UPB $776.4M 72%26% 2% Sales by Investor Fannie/Freddie Ginnie Mae Other MSR PORTFOLIO UPDATE ($ in billions) 41%37%22%Production by Platform Retail Correspondent Wholesale $10.4$10.7$11.0$11.4$11.73.5%3.4%3.4%3.3%3.4%2.0%2.5%3.0%3.5% 4.0%$0$2$4$6$8$10 $12Q2'21Q3'21Q4'21Q1'22Q2'22 UPB WAC

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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 91%4%2%3%88%5%5%2%0%20%40% 60% 80%100%1 & 2345 SBC SBA 1.72 1.62 1.51 1.47 1.48 1.69 1.71 1.68 1.63 1.70 1.30 1.35 1.40 1.45 1.50 1.55 1.60 1.65 1.70 1.75Q2'21Q3'21Q4'21Q1'22Q2'22 SBC SBA AVERAGE RISK RATING

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13Debt-LeverageCorporate DebtPPPLFSecuritized Debt ObligationsNon-Recourse Secured BorrowingsRecourse Secured Borrowing 0.2x2.4x0.7x1.0x0.5xDebt BalanceLeverage Ratio•Recourseleverageratioof1.5x•Totalleverageof4.9x•Fullmarkettomarketliabilitiesandcreditmarktomarketliabilitiesrepresent17%and11%oftotaldebt,respectively Recourse Leverage by Reporting Segment(1)($ in millions) $1,439$140$241$1,0220.5x2.0x1.7x0.5x-2.00.0 2.04.06.08.010.0$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 $428$4,534$1,393$1,820$1,022

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14Financial Snapshot Investment Type Average Carrying Value (1) Gross Yield(2) Average Debt Balance Debt Cost (3) Levered Yield SBC Lending and Acquisitions $ 9,446,032 5.7%$ 6,949,169 3.3% 12.2% Small Business Lending $ 309,665 16.9%$ 188,786 5.2% 35.3% Total $ 9,755,697 6.0% $ 7,137,955 3.4% 12.5% Book Equity Value Metrics Common Stockholders' equity $ 1,748,074 Common Stockholders' equity (adjusted) (5) $ 1,747,652 Total Common Shares outstanding 114,375,070 Net Book Value per Common Share $ 15.28 Adjusted Net Book Value per Common Share $ 15.28 Loan Portfolio Metrics (4)% Fixed vs Floating Rate 16% / 84% % Originated vs Acquired 75% / 25% Weighted Average LTV -SBC 65% Weighted Average LTV -SBA 89% Q2 2022 Earnings Data Metrics Net income | Distributable earnings $58,965 | $60,102 Earnings per share -Basic and diluted $0.47 | $0.45 Distributable Earnings per share -Basic and diluted $0.48 | $0.46 Return on Equity per Common Share 12.8% Distributable Return on Equity per Common Share 13.1% Dividend Yield (6) 14.1% Servicing Portfolio MetricsSBA servicing rights -UPB $ 926,364 SBA servicing rights-carrying value $ 21,670 Multi-family servicing rights -UPB $ 4,624,421 Multi-family servicing rights -carrying value $ 63,188 Residential servicing rights -UPB $ 11,722,925 Residential servicing rights -carrying value $ 168,653 1.Averagecarryingvalueincludesaveragequarterlycarryingvalueofloanandservicingassetbalances2.Grossyieldsincludeinterestincome,accretionofdiscount,MSRcreation,incomefromourunconsolidatedjointventure,realizedgains(losses)onloansheldforsale,unrealizedgains(losses)onloansheldforsaleandservicingincomenetofinterestexpenseandamortizationofdeferredfinancingcostsonanannualizedbasis.3.TheCompanyfinancestheassetsincludedintheInvestmentTypethroughsecuritizations,repurchaseagreements,warehousefacilitiesandbankcreditfacilities.Interestexpenseiscalculatedbasedoninterestexpenseanddeferredfinancingamortizationforthequarterended6/30/2022onanannualizedbasis.4.Excludesloans,heldforsale,atfairvalue5.Excludestheequitycomponentofour2017convertiblenoteissuance.6.Q2Dividendyieldfortheperiodisbasedonthe6/30/2022closingsharepriceof$11.92

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APPENDIXAdditional Financial Information

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16Balance Sheet by Quarter (In Thousands) Assets Cash and cash equivalents$200,723 $209,769 $229,531 $211,369 $127,939 Restricted cash 57,118 52,692 51,569 56,963 64,746 Loans, net 2,222,284 2,384,497 2,915,446 4,062,335 3,907,321 Loans, held for sale, at fair value 470,184 549,917 552,935 523,214 469,442 Payment protection program loans, net2,178,586 1,784,826 870,352 554,656 389,189 Mortgage backed securities, at fair value 260,110 117,681 99,496 93,259 40,648 Loans eligible for repurchase from Ginnie Mae173,437 149,723 94,111 82,975 54,784 Investment in unconsolidated joint ventures86,994 125,547 141,148 149,475 224,220 Investments held to maturity 57,285 50,618 Purchased future receivables, net7,213 6,567 7,872 8,753 8,704 Derivative instruments 6,600 6,180 7,022 36,852 46,530 Servicing rights 145,265 171,106 204,599 244,143 253,511 Real estate owned, held for sale71,267 70,643 42,288 119,207 119,557 Other assets 120,214 196,827 172,098 186,089 183,887 Assets of consolidated VIEs2,976,897 3,438,423 4,145,564 5,089,669 5,996,219 Total Assets$8,976,892 $9,264,398 $9,534,031 $11,476,244 $11,937,315 Liabilities Secured borrowings 1,703,034 2,044,069 2,517,600 3,274,324 3,212,383 Paycheck Protection Program Liquidity Facility (PPPLF) borrowings2,286,624 1,945,883 941,505 627,445 427,759 Securitized debt obligations of consolidated VIEs, net 2,309,217 2,676,265 3,214,303 3,864,150 4,533,789 Convertible notes, net112,684 112,966 113,247 113,531 113,818 Senior secured notes and Corporate debt, net 513,494 513,889 783,852 788,572 907,699 Guaranteed loan financing 363,955 348,774 345,217 332,398 304,158 Contingent consideration 12,400 16,400 92,148 92,548 Liabilities for loans eligible for repurchase from Ginnie Mae173,437 149,723 94,111 82,975 54,784 Derivative instruments 3,717 410 2,620 1,303 Dividends payable 33,968 33,564 34,348 51,161 51,185 Loan participations sold 56,386 53,544 Due to third parties 668 38,846 24,737 Accounts payable and other accrued liabilities 180,018 189,194 183,411 184,592 189,182 Total Liabilities$7,680,148 $8,026,727 $8,245,072 $9,509,148 $9,966,889 Preferred stock Series C8,361 8,361 8,361 8,361 8,361 Stockholders’ Equity Preferred stock209,619 111,378 111,378 111,378 111,378 Common stock 7 7 8 11 11 Additional paid-in capital 1,090,162 1,115,471 1,161,853 1,723,099 1,723,580 Retained earnings (23,105) (10,395) 8,598 21,661 27,298 Accumulated other comprehensive income (loss)(7,157) (6,276) (5,733) (4,704) (2,815) Total Ready Capital Corporation equity 1,269,526 1,210,185 1,276,104 1,851,445 1,859,452 Non-controlling interests 18,857 19,125 4,494 107,290 102,613 Total Stockholders’ Equity$1,288,383 $1,229,310 $1,280,598 $1,958,735 $1,962,065 Total Liabilities and Stockholders’ Equity$8,976,892 $9,264,398 $9,534,031 $11,476,244 $11,937,315 Adjusted Book Value per Share$14.87 $15.06 $15.35 $15.21 $15.28 6/30/2022 6/30/2021 9/30/2021 12/31/2021 3/31/2022

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17Statement of Income by Quarter

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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$30,904 $46,535 $53,588 $64,263 $58,965 Reconciling items: Unrealized (gain) loss on mortgage servicing rights$4,699 $(147) $(6,119) $(32,599) $16 Impact of ASU 2016-13 on accrual loans4,035 (1,329) 845 1,968 (2,110) Non-recurring REO impairment510 (10) (1,441) 1,567 700 Merger transaction costs and other non-recurring expenses2,971 5,485 5,036 6,655 3,248 Total reconciling items$12,215 $3,999 $(1,679) $(22,409) $1,854 Distributable earnings before income taxes$43,119 $50,534 $51,909 $41,854 $60,819 Income tax adjustments (1,691) (1,169) 626 7,009 (717) Distributable earnings$41,428 $49,365 $52,535 $48,863 $60,102 Less: Distributable earnings attributable to non-controlling interests$595 $802 $364 $589 $2,929 Less: Income attributable to participating shares392 445 377 413 413 Less: Dividends on preferred stock3,224 1,999 1,999 1,999 1,999 Distributable earnings attributable to Common Stockholders$37,217 $46,119 $49,795 $45,862 $54,761 DIstributable earnings per share- basic$0.52 $0.64 $0.67 $0.52 $0.48 Weighted average common shares outstanding71,221,806 71,618,168 74,163,951 87,707,281 114,359,026 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022

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