Core Viewpoint - The Broadmark Realty Capital Inc. class action lawsuit alleges violations of the Securities Exchange Act of 1934 related to the merger with Ready Capital Corporation, with claims of misleading statements and undisclosed financial distress among borrowers [1][3]. Group 1: Class Action Lawsuit Details - Holders of Broadmark common stock as of the May 2023 merger record date can seek lead plaintiff status until July 28, 2025 [1][2]. - The lawsuit is titled Grant v. Broadmark Realty Capital, No. 25-cv-01013 (W.D. Wash.) and involves Broadmark, Ready Capital, and certain executives and directors [1][2]. - The proxy statement for the merger allegedly contained false or misleading information regarding financial conditions and projections [3]. Group 2: Allegations Against Broadmark and Ready Capital - A significant portion of Ready Capital's borrowers faced financial distress due to high interest rates, impacting their ability to cover debt costs [3]. - An oversupply of multifamily properties limited rent increases necessary for borrowers to manage growing debt [3]. - A major development project acquired during the merger faced severe setbacks, including cost overruns and funding shortfalls, affecting approximately $500 million of Ready Capital's loan portfolio [3]. - Ready Capital's expected credit loss reserves were allegedly understated, leading to unrealistic financial projections [3]. Group 3: Legal Representation and Firm Background - The plaintiff is represented by Robbins Geller, a law firm with extensive experience in prosecuting investor class actions [4]. - Robbins Geller has secured over $2.5 billion for investors in securities-related class action cases in 2024, ranking first in monetary relief for investors [6].

Group 1 - The Company declared a quarterly cash dividend of $0.125 per share of common stock and Operating Partnership unit for the quarter ended June 30, 2025, payable on July 31, 2025 [1] - The Company announced a dividend of $0.390625 per share of its 6.25% Series C Cumulative Convertible Preferred Stock, payable on July 15, 2025 [2] - A dividend of $0.40625 per share of its 6.50% Series E Cumulative Redeemable Preferred Stock was also declared, payable on July 31, 2025 [3] Group 2 - Ready Capital Corporation 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 [4] - The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge loans, as well as U.S. Small Business Administration loans under its Section 7(a) program [4] - The Company is headquartered in New York and employs approximately 500 professionals nationwide [4]

Core Points - Ready Capital Corporation declared a quarterly cash dividend of $0.125 per share of common stock and Operating Partnership unit for the quarter ended June 30, 2025, payable on July 31, 2025, to shareholders of record as of June 30, 2025 [1] - The Company also declared a dividend of $0.390625 per share of its 6.25% Series C Cumulative Convertible Preferred Stock, payable on July 15, 2025, to Series C Preferred stockholders of record as of June 30, 2025 [2] - Additionally, a dividend of $0.40625 per share of its 6.50% Series E Cumulative Redeemable Preferred Stock was declared, payable on July 31, 2025, to Series E Preferred stockholders of record as of June 30, 2025 [3] Company Overview - Ready Capital Corporation 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 [4] - The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge loans, as well as U.S. Small Business Administration loans under its Section 7(a) program [4] - Headquartered in New York, the Company employs approximately 500 professionals nationwide [4]

Core Viewpoint - The article discusses the investment in Ready Capital's 6.50% Series E Cumulative Preferreds, highlighting the significant decline in the common shares and the preferred shares year-to-date, indicating a potential buying opportunity in the context of a broader market selloff [1]. Group 1: Company Performance - Ready Capital's common shares have decreased by 40% year-to-date, while the Series E preferred shares have dipped by 16% over the same period [1]. Group 2: Investment Strategy - The investment strategy focuses on long-term wealth creation by targeting undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1].

Group 1 - The Conservative Income Portfolio targets value stocks with high margins of safety and aims to reduce volatility through well-priced options [1] - Ready Capital Corporation (NYSE: RC) has experienced a negative return of 14.19% since its inception, highlighting the risks associated with income chasing [2] - The Covered Calls Portfolio is designed for lower volatility income investing with a focus on capital preservation, while the fixed income portfolio emphasizes high income potential and undervaluation [2][3] Group 2 - Trapping Value consists of a team of analysts with over 40 years of combined experience in generating options income and capital preservation [3] - The investing group Conservative Income Portfolio operates in partnership with Preferred Stock Trader, featuring two income-generating portfolios and a bond ladder [3]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Ready Capital Corporation's unaudited consolidated financial statements for Q1 2025, detailing financial position, performance, and cash flows, alongside notes on significant events like the UDF IV acquisition and segment divestiture [Consolidated Balance Sheets](index=3&type=section&id=UNAUDITED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets slightly decreased to **$10.0 billion** by March 31, 2025, while total liabilities decreased to **$7.9 billion**, and stockholders' equity increased to **$2.04 billion** Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$9,976,451** | **$10,141,921** | | Loans, net | $4,354,017 | $3,378,149 | | Assets of consolidated VIEs | $3,723,738 | $5,175,295 | | **Total Liabilities** | **$7,926,899** | **$8,197,818** | | Secured borrowings | $2,713,415 | $2,035,176 | | Securitized debt obligations of consolidated VIEs, net | $2,574,139 | $3,580,513 | | **Total Stockholders' Equity** | **$2,041,191** | **$1,935,742** | [Consolidated Statements of Operations](index=3&type=section&id=UNAUDITED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Net income for Q1 2025 was **$82.0 million**, a significant improvement from a **$74.2 million** loss in Q1 2024, driven by a bargain purchase gain and loan loss recovery, resulting in **$0.47** basic EPS Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $14,501 | $48,549 | | Recovery of loan losses | $109,568 | $26,544 | | Gain on bargain purchase | $102,471 | $— | | **Net Income (Loss)** | **$81,965** | **($74,167)** | | Net Income (Loss) Attributable to Ready Capital | $77,506 | ($76,283) | | **Total earnings per common share - basic** | **$0.47** | **($0.44)** | | Dividends declared per share of common stock | $0.125 | $0.30 | [Consolidated Statements of Cash Flows](index=5&type=section&id=UNAUDITED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Q1 2025 saw **$108.5 million** net cash from operations and **$307.3 million** from investing activities, offset by **$355.0 million** used in financing, leading to a **$60.7 million** net cash increase Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | | :--- | :--- | | Net cash provided by operating activities | $108,469 | | Net cash provided by investing activities | $307,268 | | Net cash used for financing activities | ($354,990) | | **Net increase in cash and cash equivalents** | **$60,747** | [Notes to the Consolidated Financial Statements](index=7&type=section&id=NOTES%20TO%20THE%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) These notes detail accounting policies and financial activities, highlighting the **$102.5 million** UDF IV bargain purchase gain, increased non-accrual loans to **$848.4 million**, Residential Mortgage Banking segment divestiture, and new senior secured note issuance - On March 13, 2025, the Company acquired United Development Funding IV (UDF IV), resulting in a preliminary bargain purchase gain of **$102.5 million**[24](index=24&type=chunk)[132](index=132&type=chunk) - The company is divesting its Residential Mortgage Banking segment, which is now classified as discontinued operations. In Q1 2025, it sold **$4.2 billion** of residential mortgage servicing rights for net proceeds of **$9.8 million**[216](index=216&type=chunk) - Non-accrual loans increased to **$848.4 million** as of March 31, 2025, up from **$526.8 million** at the end of 2024[154](index=154&type=chunk)[169](index=169&type=chunk) - In February 2025, the company issued **$220.0 million** of 9.375% Senior Secured Notes due 2028. An additional **$50.0 million** was issued subsequent to the quarter end in April 2025[232](index=232&type=chunk)[375](index=375&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the strategic shift to LMM commercial real estate and small business lending, the impact of the UDF IV merger, and a Q1 2025 distributable loss of **$11.4 million** ($(0.09) per share), with a total leverage ratio of **3.5x** - The company's core focus is on LMM commercial real estate and small business lending, with the Residential Mortgage Banking segment being divested and reported as a discontinued operation[381](index=381&type=chunk)[385](index=385&type=chunk) Key Financial Indicators Q1 2025 vs Q1 2024 | Indicator | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Distributable earnings per common share - diluted | $(0.09) | $0.29 | | Dividends declared per common share | $0.125 | $0.30 | | Return on equity from continuing operations | 18.4% | (13.3)% | | Book value per common share | $10.61 | $13.44 | - Total loan originations were **$466.0 million** in Q1 2025, a slight increase from **$456.8 million** in Q1 2024, with a significant increase in Small Business Lending (SBL) loans[404](index=404&type=chunk) - As of March 31, 2025, the company had a total leverage ratio of **3.5x** and a recourse leverage ratio of **1.3x**[441](index=441&type=chunk) - Consolidated distributable losses were **$11.4 million** for Q1 2025, a decrease of **$65.4 million** from Q1 2024, primarily due to charge-offs and realized losses on sales of real estate owned assets and LMM loans[428](index=428&type=chunk)[430](index=430&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company details exposure to market, credit, interest rate, liquidity, and counterparty risks, with a **100 bps** rate increase positively impacting net interest income by **$8.4 million**, and JPMorgan Chase Bank, N.A. being the largest counterparty risk at **29.8%** of equity - The company is exposed to market, credit, interest rate, liquidity, prepayment, real estate, fair value, and counterparty risks[491](index=491&type=chunk)[500](index=500&type=chunk)[501](index=501&type=chunk)[503](index=503&type=chunk)[504](index=504&type=chunk)[505](index=505&type=chunk) Net Interest Income Sensitivity to Interest Rate Changes | Change in Rates (Basis Points) | 12-Month Impact on Net Interest Income (in thousands) | | :--- | :--- | | +100 bps | $8,413 | | +50 bps | $4,044 | | -50 bps | ($2,973) | | -100 bps | ($4,319) | - The company's largest counterparty risk exposure for repurchase agreements is with JPMorgan Chase Bank, N.A., amounting to **$608.3 million**, or **29.8%** of stockholders' equity[509](index=509&type=chunk)[510](index=510&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 2025 - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[514](index=514&type=chunk) - No material changes were identified in the Company's internal control over financial reporting during the quarter ended March 31, 2025[515](index=515&type=chunk) [PART II. OTHER INFORMATION](index=62&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) The company faces multiple legal challenges, including class action lawsuits from Broadmark and UDF IV mergers, and securities and derivative lawsuits alleging false statements regarding its commercial real estate loan portfolio - The company is a defendant in two separate putative stockholder class action lawsuits (Quinn Action and Goebel Action) filed in March and April 2025, alleging violations of the Exchange Act related to statements about its commercial real estate loan portfolio[522](index=522&type=chunk) - Two derivative lawsuits have been filed against certain officers and directors, asserting claims related to the allegations in the securities class actions[523](index=523&type=chunk) - The company is subject to indemnification obligations for lawsuits related to the Broadmark and UDF IV mergers, which allege breaches of fiduciary duty by the former boards of those companies[518](index=518&type=chunk)[520](index=520&type=chunk)[521](index=521&type=chunk) [Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported from the risk factors previously disclosed in the Company's Annual Report on Form 10-K - No material changes from the risk factors previously disclosed in the Company's Form 10-K were reported[529](index=529&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board approved a **$150.0 million** share repurchase program in January 2025, with **3,734,044** shares repurchased in Q1 at an average price of **$5.14**, leaving **$132.7 million** available - A new share repurchase program for up to **$150.0 million** of common stock was approved by the Board on January 16, 2025[530](index=530&type=chunk) Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Maximum Value Remaining Under Program | | :--- | :--- | :--- | :--- | | **Q1 2025 Total** | **3,734,044** | **$5.14** | **$132,698,476** | [Default Upon Senior Securities](index=64&type=section&id=Item%203.%20Default%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - The company reported no defaults upon senior securities[533](index=533&type=chunk) [Other Information](index=64&type=section&id=Item%205.%20Other%20Information) No officers or directors entered into, modified, or terminated any Rule 10b5-1 trading arrangements during the quarter ended March 31, 2025 - No officers or directors entered into, modified, or terminated any Rule 10b5-1 trading arrangements during the quarter[535](index=535&type=chunk) [Signatures](index=66&type=section&id=SIGNATURES) The report was signed and authorized on May 9, 2025, by Thomas E. Capasse (Chairman, CEO, CIO) and Andrew Ahlborn (CFO) - The report was signed on May 9, 2025, by Thomas E. Capasse (Principal Executive Officer) and Andrew Ahlborn (Principal Accounting and Financial Officer)[543](index=543&type=chunk)[545](index=545&type=chunk)

Financial Data and Key Metrics Changes - First quarter GAAP earnings per common share were $0.47, while distributable earnings were a loss of $0.09 per common share [15] - Net interest income declined to $14.6 million, primarily due to non-core assets moving to nonaccrual status, generating a cash yield of 1.3% [15] - Book value per share remained flat at $10.61, with total leverage declining to 3.5 times [18] Business Line Data and Key Metrics Changes - The total CRE loan portfolio was bifurcated into $5.9 billion core loans and $1.2 billion non-core loans, with a 5% decline in the core portfolio due to payoffs [7][8] - The core portfolio generated a levered yield of 10.2%, resulting in $43.4 million of net interest income, with 80% being current pay [10] - The non-core portfolio was reduced by 6% to $740 million, with expectations to further reduce it to approximately $270 million in the second quarter [10] Market Data and Key Metrics Changes - The multifamily sector showed resilience, with a 1% increase in rents in Q1 2025 despite macroeconomic pressures [5] - The twelve-month default rate for the SBA business was 3.2%, slightly better than the industry average of 3.4% [12] - The company anticipates SBA volume to be below $1.5 billion in 2025 due to current capital constraints and policy changes [13][52] Company Strategy and Development Direction - The company initiated a balance sheet repositioning plan in Q4 2024, focusing on liquidating non-core assets to reinvest in the core portfolio [14] - The strategy aims to restore net interest margin (NIM) to peer group levels by 2026, assuming stable macroeconomic conditions [14] - The company remains committed to supporting the Portland mixed-use asset project, which is expected to stabilize over time [11][42] Management's Comments on Operating Environment and Future Outlook - Management noted that the recovery in the commercial real estate (CRE) market has been affected by tariffs and recession risks, but the multifamily sector remains strong [5] - The company expects to maintain its current dividend level until the earnings profile warrants an increase [14] - Management expressed confidence in navigating the shifting policy landscape in the SBA business, despite potential short-term volume declines [12][50] Other Important Information - The company completed the UDF merger, resulting in a bargain purchase gain of $102.5 million, which added $167.1 million of equity to the balance sheet [17] - Liquidity remains healthy with unrestricted cash exceeding $200 million and $1 billion of total unencumbered assets [20] Q&A Session Summary Question: Impact of April's volatility on non-core book expectations - Management indicated that ongoing conversations with various parties regarding liquidations are progressing well, and they do not expect significant impact from April's volatility [23][24] Question: Near-term expectations for distributable earnings trajectory - Management expects the second quarter earnings profile to be similar to Q1, with upward movement anticipated post-reinvestment of equity [30] Question: Current views on share repurchases - Management is balancing the benefits of share repurchases with upcoming debt maturities and the need to reestablish net interest income [31] Question: Catalyst for CLO interest coverage issues - Management noted that elevated rates are impacting NOIs, leading to increased modifications in the portfolio [38] Question: Status of the Portland asset and stabilization timeline - The Portland asset is currently levered, and management plans to stabilize and sequentially exit its components over the next few years [42][45] Question: Expected moderation in SBA volumes - Management anticipates SBA volumes to be below $1.5 billion for at least a couple of quarters due to policy changes and administrative delays [52] Question: Freddie Mac business outlook - Management reported a decrease in Freddie Mac volume due to tightened processes and competition from banks and credit unions [56]

Financial Data and Key Metrics Changes - First quarter GAAP earnings per common share were $0.47 while distributable earnings were a loss of $0.09 per common share [15] - Net interest income declined to $14.6 million, primarily due to the movement of non-core assets to nonaccrual status [15] - Book value per share remained flat at $10.61, with total leverage declining to 3.5 times [18] Business Line Data and Key Metrics Changes - The total CRE loan portfolio was bifurcated into $5.9 billion core loans and $1.2 billion non-core loans [7] - Core portfolio payoffs resulted in a 5% decline to $5.9 billion, with 78% concentration in multifamily [8] - Non-core portfolio was reduced by 6% to $740 million, with expectations to further reduce it to approximately $270 million in the second quarter [10] Market Data and Key Metrics Changes - The multifamily sector showed resilience with a 1% increase in rents in Q1 2025 despite macroeconomic pressures [5] - The twelve-month default rate for the SBA business was 3.2%, slightly better than the industry average of 3.4% [12] - Freddie Mac volume was down in Q1 due to tightened processes, with a more robust pipeline expected in Q2 [58] Company Strategy and Development Direction - The company initiated a balance sheet repositioning plan in Q4 2024, focusing on liquidating non-core assets to reinvest in the core portfolio [14] - The strategy aims to restore net interest margin (NIM) to peer group levels by 2025, with accretion expected in 2026 [14] - The company remains committed to supporting the Portland mixed-use asset project, aiming for stabilization and eventual exit of components [11][43] Management's Comments on Operating Environment and Future Outlook - Management noted that the recovery in the commercial real estate (CRE) market is affected by tariffs and recession risks, but the multifamily sector remains strong [5] - The company expects to maintain its current dividend level until the earnings profile warrants an increase [14] - Management expressed confidence in navigating the shifting policy landscape in the SBA business, despite anticipated moderation in volume [12][51] Other Important Information - The company completed the UDF merger, generating a bargain purchase gain of $102.5 million, which added $167.1 million of equity to the balance sheet [17] - Liquidity remains healthy with unrestricted cash over $200 million and $1 billion of total unencumbered assets [20] Q&A Session Summary Question: Impact of April's volatility on non-core book expectations - Management indicated that ongoing conversations with various parties are progressing well and do not expect material diversion from pricing or timing expectations [23][24] Question: Near-term expectations for distributable earnings trajectory - Management highlighted that the repositioning of assets is a key catalyst for future earnings improvement, with expectations for a gradual upward trend post-liquidation [30] Question: Current views on share repurchases versus liquidity - Management is balancing the benefits of share repurchases with the need to maintain liquidity given upcoming debt maturities [31] Question: Catalyst for CLO interest coverage issues - Management noted that elevated rates are impacting NOIs, leading to increased modifications and stress within CLOs [39] Question: Status of the Portland asset and future plans - Management confirmed that the asset is currently levered and will remain so, with plans to stabilize and sequentially exit components as they improve [43][44] Question: Expected moderation in SBA volumes - Management anticipates SBA volumes to be below the $1.5 billion mark for at least a couple of quarters due to policy changes and administrative delays [52]

Financial Data and Key Metrics Changes - First quarter GAAP earnings per common share were $0.47 while distributable earnings were a loss of $0.09 per common share [13] - Net interest income declined to $14.6 million in the quarter, primarily due to non-core assets moving to nonaccrual status [13] - Book value per share remained flat at $10.61, with total leverage declining to 3.5 times [17] Business Line Data and Key Metrics Changes - The total CRE loan portfolio was bifurcated into $5.9 billion core loans and $1.2 billion non-core loans, with a 5% decline in the core portfolio [6] - The core portfolio generated a levered yield of 10.2%, resulting in $43.4 million of net interest income [8] - Non-core portfolio liquidations surpassed targets by close to 2x, generating $28 million of liquidity [8] Market Data and Key Metrics Changes - The multifamily sector showed resilience with a 1% increase in rents in Q1 2025, despite macroeconomic pressures [4] - The twelve-month default rate for the company was 3.2%, slightly better than the industry average of 3.4% [10] - The SBA business experienced high volumes at $343 million, although moderation is anticipated [10] Company Strategy and Development Direction - The company initiated a balance sheet repositioning plan in Q4 2024, focusing on liquidating non-core assets to reinvest in the core portfolio [12] - The strategy aims to restore net interest margin (NIM) to peer group levels by the end of 2025, with accretion expected in 2026 [12] - The company remains committed to supporting the Portland mixed-use asset project, aiming for stabilization and eventual exit [9][44] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment remains challenging, but the multifamily sector is benefiting from excess demand [4][25] - The company expects to maintain its current dividend level until the earnings profile warrants an increase [12] - Future earnings trajectory is expected to improve post-liquidation of non-core assets and reinvestment into the core portfolio [31] Other Important Information - The company completed the UDF merger, resulting in a bargain purchase gain of $102.5 million, adding $167.1 million of equity to the balance sheet [16] - Liquidity remains healthy with unrestricted cash over $200 million and $1 billion of total unencumbered assets [19] Q&A Session Summary Question: Impact of April's volatility on non-core book expectations - Management indicated that ongoing conversations with various parties are progressing well and do not expect significant impact from April's volatility [22][24] Question: Near-term expectations for distributable earnings trajectory - Management expects the second quarter earnings profile to be similar to Q1, with improvements anticipated post-reinvestment of equity [28][31] Question: Current views on share repurchases - Management is evaluating share repurchases against liquidity needs and upcoming debt maturities, indicating confidence in accessing capital markets [32][35] Question: Catalyst for CLO interest coverage issues - Management noted that elevated rates are impacting NOIs, leading to increased modifications in the portfolio [40] Question: Status of the Portland asset and future plans - The asset will remain levered, with plans to stabilize and sequentially exit components as they improve [43][44] Question: Expected moderation in SBA volumes - Management anticipates SBA volumes to be below $1.5 billion for the next few quarters due to policy changes and staffing issues at the SBA [52][54]

Financial Performance - Net income from continuing operations was $0.47 per common share[5] - Distributable losses were $(0.09) per common share[5] - Distributable earnings before realized losses were $0.00 per common share[5] - A dividend of $0.125 per common share was declared[5] Loan Portfolio - The total loan portfolio was $8.4 billion[5] - The weighted average yield in the $5.9 billion CRE core portfolio was 8.3%[5] - Total loan originations amounted to $466.1 million[5] - Loan repayments and sales totaled $758.2 million[5] - Core delinquencies (60+ days) stood at 4.1%[5] Capitalization & Acquisitions - 3.4 million shares were repurchased at an average price of $5.02, impacting book value per share by $0.11[5] - Total leverage was 3.5x, with a recourse leverage ratio of 1.3x[5] - The acquisition of United Development Funding IV was closed for $167 million, which was $0.14 per share accretive to book value per share[5] Portfolio Composition - The carrying value of the Core portfolio is $5.88 billion with 4.1% being 60+ days delinquent[7] - The carrying value of the Non-Core portfolio is $0.74 billion with 40.9% being 60+ days delinquent[7]