EX-99.2 3 rc-20221107xex99d2.htm EX-99.2
Exhibit 99.2

| SUPPLEMENTAL FINANCIAL DATAQ3 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.AlldataisasofSeptember30,2022,unlessotherwisenoted.

| 3Third Quarter 2022 Results Net income of $66.3 million1, or $0.53 per common share Distributable earnings of $58.2 million1, or $0.46 per common shareDeclared dividend of $0.42 per common share Earnings / Dividends Return on Equity2of 14.5%Distributable Return on Equity3of 12.7%Dividend Yield4of 16.6% Returns CREoriginationsandacquisitionsof$831.1millionSBAloanoriginationsof$133.6millionResidentialmortgageloanoriginationsof$534.3million 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.Q3 dividend yield for the period is based on the 9/30/2022 closing share price of $10.145.Represents fully committed amounts

| 4Third Quarter 2022 Results (continued) Issued$100.0millioninaggregateprincipalamountof7.375%SeniorUnsecuredNotesdue2027Fullmarkettomarketliabilitiesandcreditmarktomarketliabilitiesrepresent16%and13%oftotaldebt,respectivelyIncreasedthesizeoftheCompany'sexistingstockrepurchaseprogrambyanadditional$25million,bringingthetotalamountauthorizedundertheprogramto$50million.TheCompanyacquiredapproximately370thousandsharesoftheCompany’scommonstockatanaveragepriceof$10.29. Capital Markets Netbookvaluepershareof$15.40percommonshareTotalleverageof4.9xandrecourseleverageratioof1.6x1 Balance Sheet TheCompanyacquiredapproximately3.6millionsharesoftheCompany’scommonstockatanaveragepriceof$10.34.Completedthesecuritizationof$860.1millionoffloatingrateSBCloansandsold$656.9millionofseniorbondswithaweightedaveragecostofdebtofSOFR+3.0% Subsequent Events1. Recourse leverage ratio excludes $1.5 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.4.IncludesEmployeeRetentionCreditprocessingfeeincome5.Non-recurringgains,lossesandexpensesbeforeapplicabletaxexpenses.

| 6Diversified, Complementary, & Scalable Platforms 66%11%4%1%7%8%3% Bridge Fixed rate/CMBS Construction Freddie Mac Other Small Business Lending Residential Mortgage Banking PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 ($ in thousands) $46,070$5,666$11,201$4,954$3,874$25,908$11,635$0$10,000$20,000 $30,000$40,000 $50,000BridgeFixed rate/CMBSConstructionFreddie MacOtherSmallBusinessLendingResidentialMortgageBanking31.Assetsincludeloans,MBS,servicingassets,JVinvestments,realestateowned,andpurchasedfuturereceivables.2.BasedonQTDDistributableEarningsincludinginterestincome,accretionofdiscount,MSRcreation,incomefromunconsolidatedjointventures,realizedgains(losses)onloansheldforsale,unrealizedgains(losses)onloansheldforsaleandservicingincomenetofinterestexpenseandamortizationofdeferredfinancingcostsonanannualizedbasis.3.Loanswiththe“Other”classificationaregenerallySBCacquiredloansthathavenonconformingcharacteristicsfortheFixedrate,Bridge,orConstructioncategories3

| 7SBC and SBA Investment by Platform $730.4$1,529.2$1,287.8$955.2$531.9$104.9$98.2$60.9$5.9$8.3$36.0$116.4$240.2$613.1$197.4$255.5$174.5$168.0$29.0$658.1$1.5$31.4$144.3$135.7$100.8$128.3$133.6$0$400$800$1,200 $1,600 $2,000 $2,400Q3'21Q4'21Q1'22Q2'22Q3'22 Bridge Fixed Rate/CMBS Construction Freddie Mac Acquired Other SBA $2,305.0 $2,405.2 $1,419.2 $964.71.Origination volumes are based on fully committed amounts in millions QUARTERLY INVESTMENT ACTIVITY1 $1,382.4

| 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 categories7.100%ofconstructionloans60+dayspastdue were acquired as part of the Mosaic Merger GROSS LEVERED YIELD PRODUCT TYPELOAN COUNT(1)UPBBOOK VALUEWA LTVWA COUPONFIXED/FLOAT(2)60+ Days Past Due2,325$9.55B$9.44B65.2%6.4%15.6 / 84.4%3.2%FIXED RATE(5)255$976M$972M60.9%5.0%99.4 / 0.6%3.0%BRIDGE577$7.41B$7.34B68.5%6.3%1.1 / 98.9%1.7%CONSTRUCTION22$517M$496M65.3%11.1%31.1 / 68.9%21.3%(7)OTHER(6)1,471$644M$636M34.0%5.7%43.7 / 56.3%5.5% CURRENT QUARTER HIGHLIGHTS 10.1%10.3%11.5%11.3%10.5%2.2%2.0%1.3%0.9%1.0%0%5%10% 15%Q3 2021Q4 2021Q1 2022Q2 2022Q3 2022 Income on joint venture investments and gains on loans, held for sale Gross levered yield (ex. gains)34•Bridgeloanoriginationsof$531.9millionataveragespreadofplus468bps•SBCmoneyuppipelineof$284.4million,including$271.3millionfundedinOctober•84%oftheSBCportfolioisfloatingratewithaveragefloorsof61bps•Averagespreadof559bpsincurrentpipeline

| 9Small Business Lending GROSS LEVERED YIELD LOAN COUNTUPBBOOK VALUEWA LTVWA COUPONFIXED/FLOAT60+ Days Past Due2,320$585M$546M89.5%6.7%0.3 / 99.7%1.5% CURRENT QUARTER HIGHLIGHTS 20.7%16.5%17.6%15.2%15.0%55.4%33.2%25.7%27.6%24.2%0%20%40%60%80%100%Q3 2021Q4 2021Q1 2022Q2 2022Q3 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•SBAnetsalespremiumspeakingat13.1%andaveraging8.6%net•$133.6millionofSBAloanoriginations,including$19.8millionofsmallbalanceloanoriginations.•Currentmoneyuppipelineof$225.1million,including$33.1millionfundedinOctober3

| 10Loan Portfolio Composition 22%15%14%10%39%Small Business Lending Lodging Retail Doctors Eating Place Other1. Calculated on unpaid principal balance and excludes assets offset by guaranteed loan financing liabilities 72%8%6%5%9%SBC Lendingand Acquisitions Multi-family Mixed-use Retail Office Other Investments PROPERTY TYPE1 GEOGRAPHY1 22%10%8%7%6%47%SBC Lendingand Acquisitions Texas California Georgia Arizona Florida Other 17%12%6%6%5%54%Small Business Lending California Texas Florida Washington Oregon Other

| 11 QUARTERLY ORIGINATIONS UPB $534.3MResidential Mortgage Banking 80%20%Production by Purpose Purchased Refinanced QUARTERLY SALES UPB $566.5M 68%30% 2% Sales by Investor Fannie/Freddie Ginnie Mae Other MSR PORTFOLIO UPDATE ($ in billions) 45%36%19%Production by Platform Retail Correspondent Wholesale $10.7$11.0$11.4$11.7$12.03.4%3.4%3.3%3.4%3.5%2.0%2.5% 3.0% 3.5% 4.0%$0$2$4$6 $8$10 $12Q3'21Q4'21Q1'22Q2'22Q3'22 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 89%5%3%3%88%6%4%2%0%20%40% 60% 80%100%1 & 2345 SBC SBA 1.62 1.51 1.47 1.48 1.52 1.71 1.68 1.63 1.70 1.67 1.35 1.40 1.45 1.50 1.55 1.60 1.65 1.70 1.75Q3'21Q4'21Q1'22Q2'22Q3'22 SBC SBA AVERAGE RISK RATING

| 13Financial Flexibility 20%8%32%14%7%19%$1.0B Total Unencumbered Assets Unrestricted cash Securities Loans Servicing rights REO Other Assets UNENCUMBERED ASSET POOL HIGHLIGHTS $115 $120 $661 $246$0$200$400$600 $80020232024202520262027 andbeyond CORPORATE DEBT MATURITY PROFILE ($ in millions) •Diversifiedunencumberedassetpoolof$1.0billion,including$200millionofunrestrictedcash•1.4xunencumberedassetstounsecureddebt•$2.4billioninavailablewarehouseborrowingcapacityacross20counterparties•Limitedusageofsecuritiesrepofinancingat4.0%oftotaldebt•Fullmarkettomarketliabilitiesandcreditmarktomarketliabilitiesrepresent16%and13%oftotaldebt,respectively•90%ofcorporatedebtmaturitiesin2025orlater

| 14Debt -LeverageCorporate DebtPPPLFSecuritized Debt ObligationsNon-Recourse Secured BorrowingsRecourse Secured Borrowing 0.1x2.4x0.8x1.0x0.6xDebt Balance Leverage Ratio•Totalleverageof4.9x•Recourseleverageratioof1.6x•Majorityofsecuredborrowingssubjecttonon-recourseorlimitedrecourseterms Recourse Leverage by Reporting Segment(1)($ in millions) $1,449$148$206$1,1190.5x1.8x1.3x0.6x-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 $306$4,430$1,545$1,803$1,119

| 15Financial Snapshot Investment Type Average Carrying Value (1) Gross Yield(2) Average Debt Balance Debt Cost (3) Levered Yield SBC Lending and Acquisitions $ 9,879,574 6.5%$ 7,373,830 4.8% 11.5% Small Business Lending $ 323,715 19.2%$ 199,263 6.7% 39.2% Total $ 10,203,289 6.9% $ 7,573,093 4.9% 14.8% Book Equity Value Metrics Common Stockholders' equity $ 1,755,604 Common Stockholders' equity (adjusted) (5) $ 1,755,297 Total Common Shares outstanding 114,015,355 Net Book Value per Common Share $ 15.40 Adjusted Net Book Value per Common Share $ 15.40 Loan Portfolio Metrics (4)% Fixed vs Floating Rate 15% / 85% % Originated vs Acquired 77% / 23% Weighted Average LTV -SBC 65% Weighted Average LTV -SBA 90% Q3 2022 Earnings Data Metrics Net income | Distributable earnings $66,253 | $58,186 Earnings per share -Basic and diluted $0.53 | $0.50 Distributable Earnings per share -Basic and diluted $0.46 | $0.44 Return on Equity per Common Share 14.5% Distributable Return on Equity per Common Share 12.7% Dividend Yield (6) 16.6% Servicing Portfolio MetricsSBA servicing rights -UPB $ 976,135 SBA servicing rights-carrying value $ 21,897 Multi-family servicing rights -UPB $ 4,659,868 Multi-family servicing rights -carrying value $ 63,642 Residential servicing rights -UPB $ 11,971,972 Residential servicing rights -carrying value $ 192,153 1.Averagecarryingvalueincludesaveragequarterlycarryingvalueofloanandservicingassetbalances2.Grossyieldsincludeinterestincome,accretionofdiscount,MSRcreation,incomefromourunconsolidatedjointventure,realizedgains(losses)onloansheldforsale,unrealizedgains(losses)onloansheldforsaleandservicingincomenetofinterestexpenseandamortizationofdeferredfinancingcostsonanannualizedbasis.3.TheCompanyfinancestheassetsincludedintheInvestmentTypethroughsecuritizations,repurchaseagreements,warehousefacilitiesandbankcreditfacilities.Interestexpenseiscalculatedbasedoninterestexpenseanddeferredfinancingamortizationforthequarterended9/30/2022onanannualizedbasis.4.Excludesloans,heldforsale,atfairvalue5.Excludestheequitycomponentofour2017convertiblenoteissuance.6.Q3Dividendyieldfortheperiodisbasedonthe9/30/2022closingsharepriceof$10.14

| APPENDIXAdditional Financial Information

| 17Balance Sheet by Quarter

| 18Statement of Income by Quarter

| 19Distributable 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.