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 9, 2024

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
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 9, 2024, Ready Capital Corporation (the “Company”) issued an earnings release announcing the financial results for the quarter ended March 31, 2024. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

On May 9, 2024, 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 9, 2024
99.2	Supplemental Financial Information for the quarter ended March 31, 2024
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 9, 2024

EX-99.1

Exhibit 99.1

READY CAPITAL CORPORATION REPORTS FIRST QUARTER 2024 RESULTS

- GAAP LOSS PER COMMON SHARE FROM CONTINUING OPERATIONS OF $(0.45) -

- DISTRIBUTABLE EARNINGS PER COMMON SHARE OF $0.29 -

- DISTRIBUTABLE RETURN ON AVERAGE STOCKHOLDERS’ EQUITY OF 8.6% -

New York, New York, May 9, 2024 / Globe Newswire / – Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market (“LMM”) investor and owner occupied commercial real estate loans, today reported financial results for the quarter ended March 31, 2024.

“We continue to address the challenges caused by the current recession in commercial real estate,” said Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “The quarter’s valuation allowance is indicative of our intent to aggressively reposition underperforming loans into market yielding investments and further reduce the Company’s limited 4.4% office exposure. Despite these allowances, the Company’s Distributable Earnings moved towards our long-term target and growth in our Small Business Lending segment reached all-time highs.”

First Quarter Highlights

● Total investments of $457 million, including $260 million of LMM originations and a record $197 million of U.S. Small Business Administration 7(a) loans

● Declared and paid dividend of $0.30 per share in cash

● Net book value of $13.44 per share of common stock as of March 31, 2024

● Acquired approximately 2.1 million shares of the Company’s common stock at an average price of $8.88 per share as part of stock repurchase program

Subsequent Events

● On April 12, 2024, the Company entered into a credit agreement that provides for a delayed draw term loan in an aggregate principal amount not to exceed $115.25 million. The Company borrowed $75.0 million on the initial closing of the agreement.

● During April 2024, the Company acquired approximately 1.6 million shares of the Company’s common stock, par value $0.0001 per share, at an average price of $8.57 per share through the Company’s stock repurchase program.

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”) from discontinued operations, unrealized changes in our current expected credit loss reserve, unrealized gains or losses on de-designated cash flow hedges, unrealized gains or losses on foreign exchange hedges, unrealized gains or losses on certain unconsolidated joint ventures, non-cash compensation expense related to our stock-based incentive plan, and one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses.

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 from discontinued operations. Servicing rights relating to the Company’s small business commercial business are accounted for under ASC 860, Transfer and Servicing. In calculating distributable earnings, the Company does not exclude realized gains or losses on commercial MSRs, 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, 2024
Net Loss	$	(74,167)
Reconciling items:
Unrealized gain on joint ventures		(35)
Decrease in CECL reserve		(32,181)
Increase in valuation allowance		146,180
Non-recurring REO impairment		15,512
Non-cash compensation		1,877
Merger transaction costs and other non-recurring expenses		1,931
Total reconciling items	$	133,284
Income tax adjustments		(5,141)
Distributable earnings	$	53,976
Less: Distributable earnings attributable to non-controlling interests		1,108
Less: Income attributable to participating shares		2,335
Distributable earnings attributable to common stockholders	$	50,533
Distributable earnings per common share – basic and diluted	$	0.29

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 Thursday, May 9, 2024 at 8:30am ET to provide a general business update and discuss the financial results for the quarter ended March 31, 2024.

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: 1-877-407-0792

International: 1-201-689-8263

Conference Call Playback:

Domestic: 1-844-512-2921

International: 1-412-317-6671

Replay Pin #: 13743092

The playback can be accessed through May 23, 2024.

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 lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, 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 approximately 350 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, 2024		December 31, 2023
Assets
Cash and cash equivalents	$	166,004	$	138,532
Restricted cash		24,915		30,063
Loans, net (including $0 and $9,348 held at fair value)		3,400,481		4,020,160
Loans, held for sale (net of valuation allowance of $146,180 and $0)		584,072		81,599
Mortgage-backed securities		29,546		27,436
Investment in unconsolidated joint ventures (including $7,169 and $7,360 held at fair value)		132,730		133,321
Derivative instruments		15,448		2,404
Servicing rights		103,555		102,837
Real estate owned, held for sale		239,874		252,949
Other assets		315,772		300,175
Assets of consolidated VIEs		6,591,834		6,897,145
Assets held for sale		439,301		454,596
Total Assets	$	12,043,532	$	12,441,217
Liabilities
Secured borrowings		2,198,272		2,102,075
Securitized debt obligations of consolidated VIEs, net		4,769,057		5,068,453
Senior secured notes, net		345,570		345,127
Corporate debt, net		766,084		764,908
Guaranteed loan financing		814,784		844,540
Contingent consideration		—		7,628
Derivative instruments		593		212
Dividends payable		53,908		54,289
Loan participations sold		73,749		62,944
Due to third parties		3,401		3,641
Accounts payable and other accrued liabilities		193,896		207,481
Liabilities held for sale		315,975		333,157
Total Liabilities	$	9,535,289	$	9,794,455
Preferred stock Series C, liquidation preference $25.00 per share		8,361		8,361
Commitments & contingencies
Stockholders’ Equity
Preferred stock Series E, liquidation preference $25.00 per share		111,378		111,378
Common stock, $0.0001 par value, 500,000,000 shares authorized, 170,445,333 and 172,276,105 shares issued and outstanding, respectively		17		17
Additional paid-in capital		2,307,303		2,321,989
Retained earnings (deficit)		(3,546)		124,413
Accumulated other comprehensive loss		(12,335)		(17,860)
Total Ready Capital Corporation equity		2,402,817		2,539,937
Non-controlling interests		97,065		98,464
Total Stockholders’ Equity	$	2,499,882	$	2,638,401
Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity	$	12,043,532	$	12,441,217

READY CAPITAL CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended March 31,
(in thousands, except share data)	2024		2023
Interest income	$	232,354	$	215,968
Interest expense		(183,805)		(158,868)
Net interest income before recovery of loan losses	$	48,549	$	57,100
Recovery of loan losses		26,544		6,734
Net interest income after recovery of loan losses	$	75,093	$	63,834
Non-interest income
Net realized gain (loss) on financial instruments and real estate owned		18,868		11,575
Net unrealized gain (loss) on financial instruments		4,632		(5,635)
Valuation allowance, loans held for sale		(146,180)		—
Servicing income, net of amortization and impairment of $3,697 and $1,759		3,758		4,642
Income on purchased future receivables, net of allowance for credit losses of $1,206 and $1,594		446		540
Income on unconsolidated joint ventures		468		656
Other income		15,380		19,852
Total non-interest income (loss)	$	(102,628)	$	31,630
Non-interest expense
Employee compensation and benefits		(18,414)		(19,727)
Allocated employee compensation and benefits from related party		(2,500)		(2,326)
Professional fees		(7,065)		(5,543)
Management fees – related party		(6,648)		(5,081)
Incentive fees – related party		—		(1,720)
Loan servicing expense		(12,794)		(8,155)
Transaction related expenses		(650)		(893)
Other operating expenses		(30,187)		(12,609)
Total non-interest expense	$	(78,258)	$	(56,054)
Income (loss) from continuing operations before provision for income taxes		(105,793)		39,410
Income tax benefit (provision)		30,211		(901)
Net income (loss) from continuing operations	$	(75,582)	$	38,509
Discontinued operations
Income (loss) from discontinued operations before benefit (provision) for income taxes		1,887		(2,041)
Income tax benefit (provision)		(472)		510
Net income (loss) from discontinued operations		1,415		(1,531)
Net income (loss)		(74,167)		36,978
Less: Dividends on preferred stock		1,999		1,999
Less: Net income attributable to non-controlling interest		117		1,835
Net income (loss) attributable to Ready Capital Corporation	$	(76,283)	$	33,144
Earnings per common share from continuing operations - basic	$	(0.45)	$	0.31
Earnings per common share from discontinued operations - basic	$	0.01	$	(0.01)
Total earnings per common share - basic	$	(0.44)	$	0.30
Earnings per common share from continuing operations - diluted	$	(0.45)	$	0.30
Earnings per common share from discontinued operations - diluted	$	0.01	$	(0.01)
Total earnings per common share - diluted	$	(0.44)	$	0.29
Weighted-average shares outstanding
Basic		172,032,866		110,672,939
Diluted		173,104,415		121,025,909
Dividends declared per share of common stock	$	0.30	$	0.40

READY CAPITAL CORPORATION

UNAUDITED SEGMENT REPORTING

FOR THE THREE MONTHS ENDED MARCH 31, 2024

			Small
	LMM Commercial		Business		Corporate-
(in thousands)	Real Estate		Lending		Other		Consolidated
Interest income	$	200,763	$	31,591	$	—	$	232,354
Interest expense		(158,885)		(24,920)		—		(183,805)
Net interest income before recovery of (provision for) loan losses	$	41,878	$	6,671	$	—	$	48,549
Recovery of (provision) for loan losses		30,755		(4,211)		—		26,544
Net interest income after recovery of (provision for) loan losses	$	72,633	$	2,460	$	—	$	75,093
Non-interest income
Net realized gain (loss) on financial instruments and real estate owned		5,755		13,113		—		18,868
Net unrealized gain (loss) on financial instruments		2,986		1,646		—		4,632
Valuation allowance, loans held for sale		(146,180)		—		—		(146,180)
Servicing income, net		1,298		2,460		—		3,758
Income on purchased future receivables, net		—		446		—		446
Income on unconsolidated joint ventures		468		—		—		468
Other income		12,727		2,653		—		15,380
Total non-interest income (loss)	$	(122,946)	$	20,318	$	—	$	(102,628)
Non-interest expense
Employee compensation and benefits		(7,476)		(9,292)		(1,646)		(18,414)
Allocated employee compensation and benefits from related party		(250)		—		(2,250)		(2,500)
Professional fees		(1,641)		(3,215)		(2,209)		(7,065)
Management fees – related party		—		—		(6,648)		(6,648)
Loan servicing expense		(12,547)		(247)		—		(12,794)
Transaction related expenses		—		—		(650)		(650)
Other operating expenses		(21,534)		(5,353)		(3,300)		(30,187)
Total non-interest expense	$	(43,448)	$	(18,107)	$	(16,703)	$	(78,258)
Income (loss) before provision for income taxes	$	(93,761)	$	4,671	$	(16,703)	$	(105,793)
Total assets	$	9,905,732	$	1,357,398	$	341,101	$	11,604,231

EX-99.2

Exhibit 99.2

SUPPLEMENTAL FINANCIAL DATA Q1 2024

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 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; Ready Capital Corporation (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 those set forth in the Risk Factors section of the 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. This presentation includes certain non-GAAP financial measures, including Distributable earnings. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures in accordance with GAAP. Please refer to the Appendix for the most recent GAAP information. This presentation also contains market statistics and industry data which are subject to uncertainty and are not necessarily reflective of market conditions. These have been derived from third party sources and have not been independently verified by the Company or its affiliates. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. All data is as of March 31, 2024, unless otherwise noted.

3 First Quarter 2024 Results  Net loss from continuing operations1 of $ (75.6) million, or $ (0.45) per common share  Distributable earnings2 of $54.0 million, or $0.29 per common share  Declared dividend of $0.30 per common share Earnings / Dividends  Return on Equity from continuing operations3 of (13.3)%  Distributable Return on Equity4 of 8.6%  Dividend Yield5 of 13.1% Returns  Transferred $655 million of loans into held-for-sale, recording a $146 million valuation allowance. The population of transferred assets is primarily office collateral and 60+ day delinquent loans.  The disposition of the Company’s residential mortgage banking segment is expected to be completed during 2024 Loans Held for Sale & Discontinued Operations 1. Before dividends on preferred securities and inclusive of non-controlling interest 2. Before dividends on preferred securities and inclusive of non-controlling interest. Refer to the “Distributable Earnings Reconciliation by Quarter” slide for a reconciliation of GAAP Net Income to Distributable Earnings 3. Return on equity from continuing operations is an annualized percentage equal to quarterly net income from continuing operations over the average monthly total stockholders’ equity allocated to continuing operations for the period 4. 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 Earnings 5. Q1 dividend yield for the period is based on the 3/28/2024 closing share price of $9.13 6. Recourse leverage ratio excludes $1.2 billion of secured borrowings that are non-recourse to the Company  Net book value per share of $13.44 per common share  Total leverage of 3.4x and recourse leverage ratio6 of 0.9x Balance Sheet Multi-strategy real estate finance company that originates, acquires and services lower-to-middle-market (“LMM”) investor and owner occupied commercial real estate loans

4 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 of deferred financing costs on an annualized basis. 2. GAAP ROE is based on GAAP Net Income, while Distributable ROE is based on Distributable Earnings, which adjusts GAAP Net Income for certain items detailed on the “Distributable Earnings Reconciliation” slide. 3. Includes PPP revenue, net of direct expenses. 4. Non-recurring gains, losses and expenses before applicable tax expenses.

5 Diversified, Complementary, & Scalable Platforms 61% 9% 12% 1% 5% 12% Bridge Fixed rate/CMBS Construction Freddie Mac Other Small Business Lending PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 ($ in thousands) $37,224 $1,967 $18,033 $3,308 $1,838 $23,327 $0 $10,000 $20,000 $30,000 $40,000 Bridge Fixed rate/ CMBS Construction Freddie Mac Other Small Business Lending 3 1. Assets include loans, MBS, servicing assets, JV investments, real estate owned, and purchased future receivables. 2. Based on QTD Distributable Earnings including 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 of deferred financing costs on an annualized basis. 3. Loans with the “Other” classification are generally LMM acquired loans that have nonconforming characteristics for the Fixed rate, Bridge, or Construction categories. 3

6 Investment Portfolio Originations $110.2 $123.1 $90.7 $8.8 $98.1 $4.0 $3.9 $5.3 $19.4 $276.9 $384.6 $373.7 $288.0 $156.2 $92.3 $120.8 $128.6 $152.2 $197.2 $0 $400 $800 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Bridge Fixed Rate/CMBS Construction Freddie Mac Acquired SBA $502.8 $632.4 $593.0 $449.0 $456.8 1. Origination volumes are based on fully committed amounts in millions QUARTERLY INVESTMENT ACTIVITY1

• Liquidation and payoffs of $461 million, including $50 million of assets acquired in the Broadmark Merger • LMM money up pipeline of $528 million, including $165 million funded in April • Transfer of $655 million of delinquent loans into held-for-sale 10.9% 10.2% 9.1% 9.1% 8.2% 0.6% 1.3% 1.7% 0.7% 0.5% 0% 5% 10% 15% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Income on joint venture investments and gains on loans, held for sale Gross levered yield (ex. gains) 6 7 LMM Commercial Real Estate 1. Excludes joint venture investments, loans held for sale, at fair value, and preferred equity investments 2. Gross of general reserves 3. Loan-to-value (LTV) is calculated by dividing the current unpaid principal balance by the most recent collateral value received. The most recent value for performing loans is often the third-party as-is valuation utilized during the original underwriting process 4. 73% of fixed rate loans match funded 5. Loans with the “Other” classification are generally LMM acquired loans that have nonconforming characteristics for the Fixed rate, Bridge, or Construction categories 6. Includes realized and unrealized gains (losses) on loans held for sale and MSR creation 7. Includes interest income, accretion of discount, and servicing income net of interest expense and amortization of deferred financing costs 8. Calculated based on UPB GROSS LEVERED YIELD PRODUCT TYPE LOAN COUNT(1) UPB BOOK VALUE(2) WA LTV(3) WA COUPON FIXED/FLOAT(4) 60+ Days Past Due(8) 1,935 $9.3B $9.1B 65.6% 9.1% 20.1 / 79.9% 11.2% FIXED RATE 229 $1.02B $1.02B 60.1% 5.1% 100.0 / 0.0% 4.0% BRIDGE 453 $6.59B $6.48B 69.5% 9.2% 0.2 / 99.8% 10.4% CONSTRUCTION (RC ORIGINATED) 6 $64M $63M 49.5% 8.9% 53.6 / 46.4% 0.0% MOSAIC ACQUIRED ASSETS 5 $560M $548M 76.2% 14.3% 17.1 / 82.9% 10.1% BROADMARK ACQUIRED ASSETS 97 $595M $564M 81.4% 10.8% 91.8 / 8.2% 43.1% OTHER(5) 1,145 $446M $442M 36.8% 6.6% 34.4 / 65.6% 0.9% 1,935 $9.3B $9.1B 65.6% 9.1% 20.1 / 79.9% 11.2% ORIGINATED 712 $7.72B $7.60B 66.1% 8.7% 13.9 / 86.1% 9.4% ACQUIRED 1,223 $1.55B $1.49B 62.7% 10.9% 51.0 / 49.0% 20.5% CURRENT QUARTER HIGHLIGHTS 7

8 Small Business Lending GROSS LEVERED YIELD LOAN COUNT UPB BOOK VALUE(1) WA LTV(2) WA COUPON FIXED/FLOAT 60+ Days Past Due(5) 3,922 $1.23B $1.21B 90.4% 10.4% 0.8 / 99.2% 1.1% CURRENT QUARTER HIGHLIGHTS 19.5% 20.9% 21.2% 19.7% 18.1% 20.8% 22.7% 22.5% 24.4% 32.1% 0% 15% 30% 45% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Gross levered yield (ex. gains) Gains on loans, held for sale 1. Gross of general reserves 2. Loan-to-value (LTV) is calculated by dividing the current unpaid principal balance by the most recent collateral value received. The most recent value for performing loans is often the third-party as-is valuation utilized during the original underwriting process 3. Includes interest income, accretion of discount, and servicing income net of interest expense and amortization of deferred financing costs; excludes impairment 4. Includes realized and unrealized gains (losses) on loans held for sale and MSR creation 5. Calculated based on UPB 3 4 • SBA net sales premiums peaking at 14.0% and averaging 10.3% net • $197 million of SBA loan originations, including $101 million of small balance loan originations • Current money up pipeline of $381 million, including $65 million funded in April

9 Loan Portfolio Composition 23% 22% 7% 10% 38% Small Business Lending Lodging Retail Eating Place Doctors Other 1. Calculated on UPB and excludes assets offset by guaranteed loan financing liabilities 69% 9% 5% 5% 12% LMM Commercial Real Estate Multi-family Mixed-use Retail Office Other Investments PROPERTY TYPE1 GEOGRAPHY1 19% 11% 7% 6% 6% 51% LMM Commercial Real Estate Texas California Arizona Georgia Florida Other 20% 13% 9% 5% 7% 46% Small Business Lending California Texas Washington Florida Georgia Other

10 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 losses. BUCKET 3: Medium Risk of Loss: Current with near term maturities or in forbearance. Loss unlikely with no specific reserves booked. BUCKET 4: Higher Risk: Loan delinquent or in maturity default. Potential issues with sponsor or business plans. Minimal losses possible and adequately reserved in current period. BUCKET 5: Highest risk: Loan in default or special servicing. Specific losses identified and adequately reserved for in current period. LMM RISK RATING DISTRIBUTION RISK RATING CRITERIA AVERAGE RISK RATING 2.66 2.91 2.91 3.01 2.32 1.62 1.92 1.92 2.23 2.39 1.67 1.71 1.59 1.63 1.44 - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 LMM CRE Acquired LMM CRE Originated SBA 57% 28% 5% 10% 69% 21% 8% 2% 93% 2% 2% 3% 0% 20% 40% 60% 80% 100% 1 & 2 3 4 5 LMM CRE Acquired LMM CRE Originated SBA

11 LMM CRE Loan Portfolio - Migration TOTAL Q4’23 Q1’24 CURRENT 88.8% 87.8% 30+ DAYS PAST DUE 1.7% 2.3% 60+ DAYS PAST DUE 9.5% 9.9% RC ORIGINATED Q4’23 Q1’24 CURRENT 92.1% 89.9% 30+ DAYS PAST DUE 1.3% 2.2% 60+ DAYS PAST DUE 6.6% 7.9% M&A Q4’23 Q1’24 CURRENT 62.2% 72.8% 30+ DAYS PAST DUE 4.7% 3.1% 60+ DAYS PAST DUE 33.1% 24.1% CONTRACTUAL STATUS(1) ACCRUAL STATUS (1) RISK RATING (1) TOTAL Q4’23 Q1’24 ACCRUAL 93.5% 92.8% NON-ACCRUAL 6.5% 7.2% RC ORIGINATED Q4’23 Q1’24 ACCRUAL 95.6% 94.2% NON-ACCRUAL 4.4% 5.8% M&A Q4’23 Q1’24 ACCRUAL 77.0% 82.6% NON-ACCRUAL 23.0% 17.4% TOTAL Q4’23 Q1’24 1 & 2 65.6% 67.2% 3 19.3% 22.1% 4 11.1% 7.6% 5 4.0% 3.1% RC ORIGINATED Q4’23 Q1’24 1 & 2 68.5% 69.7% 3 19.1% 20.7% 4 10.0% 7.9% 5 2.4% 1.7% M&A Q4’23 Q1’24 1 & 2 42.7% 48.2% 3 21.4% 32.4% 4 19.5% 5.6% 5 16.4% 13.8% 1. Calculated on carrying value

12 Financial Flexibility 12% 33% 26% 7% 4% 18% $1.4B Total Unencumbered Assets Unrestricted cash Securities Loans Servicing rights REO Other Assets UNENCUMBERED ASSET POOL HIGHLIGHTS $120 $761 $100 $110 $36 $0 $200 $400 $600 $800 2024 2025 2026 2027 2028 2029 and beyond CORPORATE DEBT MATURITY PROFILE ($ in millions) • Diversified unencumbered asset pool of $1.4 billion, including $166 million of unrestricted cash • 1.9x unencumbered assets to unsecured debt • $2.9 billion in available warehouse borrowing capacity across 12 counterparties • Limited usage of securities repo financing at 3.0% of total debt • Full mark to market liabilities and credit mark to market liabilities represent 19% of total debt • 89% of corporate debt maturities in 2026 or later

13 Debt - Leverage Corporate Debt PPPLF Securitized Debt Obligations Non-Recourse Secured Borrowings Recourse Secured Borrowings <0.1x 2.0x 0.5x 0.4x 0.5x Debt Balance Leverage Ratio • Total leverage of 3.4x • Recourse leverage ratio of 0.9x • Majority of secured borrowings subject to non-recourse or limited recourse terms Recourse Leverage by Reporting Segment(1) ($ in millions) $850 $153 $1,112 0.3x 1.1x 0.5x 0.0 1.0 2.0 3.0 4.0 $0 $300 $600 $900 $1,200 LMM Commercial Real Estate Small Business Lending Corporate Debt Recourse Leverage 1. Recourse leverage by reporting segment is based on the segment recourse debt balance over invested equity in the segment and excludes guaranteed loan financings $28 $4,769 $1,195 $1,003 $1,112

14 Financial Snapshot Investment Type Average Carrying Value(1) Gross Yield(2) Average Debt Balance Debt Cost (3) Levered Yield LMM CRE $ 9,663,964 8.4% $ 6,790,137 8.3% 8.7% SBA $ 460,196 25.5% $ 276,527 9.1% 50.2% Total $ 10,124,160 9.2% $ 7,066,664 8.4% 11.2% Book Equity Value Metrics Common Stockholders' equity $ 2,291,439 Total Common Shares outstanding 170,445,333 Net Book Value per Common Share $ 13.44 Loan Portfolio Metrics (4) % Fixed vs Floating Rate 18% / 82% % Originated vs Acquired 84% / 16% Weighted Average LTV (5) - LMM CRE 66% Weighted Average LTV (5) – SBA 90% Q1 2024 Earnings Data Metrics Net loss - continuing operations | Distributable earnings $ (75,582) | $53,976 Earnings per share - continuing operations - Basic and diluted $(0.45) | $(0.45) Distributable Earnings per share - Basic and diluted $0.29 | $0.29 Return on Equity - continuing operations - per Common Share (13.3)% Distributable Return on Equity per Common Share 8.6% Dividend Yield (6) 13.1% Servicing Portfolio Metrics SBA servicing rights - UPB $ 1,289,023 SBA servicing rights- carrying value $ 31,343 Multi-family servicing rights - UPB $ 5,763,756 Multi-family servicing rights - carrying value $ 72,212 1. Average carrying value includes average quarterly carrying value of loan and servicing asset balances. 2. Gross yields include interest income, accretion of discount, MSR creation, income from our unconsolidated joint venture, 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 of deferred financing costs on an annualized basis. 3. The Company finances the assets included in the Investment Type through securitizations, repurchase agreements, warehouse facilities and bank credit facilities. Interest expense is calculated based on interest expense and deferred financing amortization for the quarter ended 3/31/2024 on an annualized basis. 4. Excludes loans, held for sale. 5. Loan-to-value (LTV) is calculated by dividing the current unpaid principal balance by the most recent collateral value received. The most recent value for performing loans is often the third-party as-is valuation utilized during the original underwriting process. 6. Q1 Dividend yield for the period is based on the 3/28/2024 closing share price of $9.13.

APPENDIX Additional Financial Information

16 Balance Sheet by Quarter

17 Statement of Income by Quarter

18 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, 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. We calculate Distributable earnings as GAAP net income (loss) excluding the following: i) any unrealized gains or losses on certain MBS not retained by us as part of our loan origination businesses ii) any realized gains or losses on sales of certain MBS iii) any unrealized gains or losses on Residential MSRs from discontinued operations iv) any unrealized change in current expected credit loss reserve and valuation allowances v) any unrealized gains or losses on de-designated cash flow hedges vi) any unrealized gains or losses on foreign exchange hedges vii) any unrealized gains or losses on certain unconsolidated joint ventures viii) any non-cash compensation expense related to stock-based incentive plan ix) one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses 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 from discontinued operations. In calculating Distributable Earnings, the Company does not exclude realized gains or losses on either commercial MSRs 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.

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Document and Entity Information	May 09, 2024
Document Information [Line Items]
Document Type	8-K
Document Period End Date	May 09, 2024
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
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