Ready Capital (US:RC)2026-02-26 21:34Financial Performance - GAAP loss per common share from continuing operations was $(1.46) for Q4 2025[1] - Distributable loss per common share was $(0.43) for Q4 2025, and $(1.59) for the full year 2025[1][10] - Distributable loss attributable to common stockholders was $(69.220) million for Q4 2025[10] - Net loss attributable to Ready Capital Corporation for the year ended December 31, 2025, was $236,183, compared to a loss of $236,911 in the previous year[21] - The company reported an income loss before provision for income taxes of $302,556,000[25] Asset and Liability Management - Total assets decreased from $10,141,921 in 2024 to $7,769,796 in 2025, a decline of approximately 23.4%[19] - Total liabilities decreased from $8,197,818 in 2024 to $6,118,168 in 2025, a reduction of approximately 25.4%[19] - Total stockholders' equity decreased from $1,935,742 in 2024 to $1,643,267 in 2025, a decline of approximately 15.1%[19] - Total assets as of December 31, 2025, were $7,769,796,000, with LMM Commercial Real Estate assets at $5,937,031,000[25] Income and Expenses - Interest income for the year ended December 31, 2025, was $569,166, while interest expense was $514,125, resulting in a net interest income before provision for loan losses of $55,041[21] - Net interest income before provision for loan losses for the year ended December 31, 2025, was $55,041, down from $13,122 in the last quarter of 2025[21] - Total non-interest income was $46,708,000, with notable contributions from servicing income ($18,703,000) and a gain on bargain purchase of $109,549,000[25] - Total non-interest expenses amounted to $317,267,000, with employee compensation and benefits being the largest component at $89,487,000[25] - Employee compensation and benefits for the year ended December 31, 2025, totaled $89,487, reflecting ongoing operational costs[21] Loan Loss Provisions - The increase in the Current Expected Credit Loss (CECL) reserve was $113.974 million for Q4 2025[10] - Provision for loan losses increased significantly to $149,989 for the three months ended December 31, 2025, compared to $87,038 for the year[21] - The provision for loan losses included $61,725,000 for LMM Commercial Real Estate and $25,313,000 for Small Business Lending[25] - Net interest income before provision for loan losses was $55,041,000, with a significant provision for loan losses of $87,038,000 leading to a net interest loss of $31,997,000[25] Strategic Actions - The company completed the acquisition of United Development Funding IV, enhancing its capital solutions for residential real estate developers[5] - The company sold GMFS, its Residential Mortgage Banking business, and completed the sale of 34 loans with an unpaid principal balance of $855.3 million[5] - Management is focused on improving liquidity and financial stability amid ongoing pressures in the commercial real estate cycle[2] - The company is focusing on recovery strategies, as indicated by the valuation recovery of $15,443,000 for loans held for sale[25] Financial Instruments - The company reported a net unrealized loss on financial instruments of $12,703 for the three months ended December 31, 2025[21] - The net realized loss on financial instruments and real estate owned was $142,112,000, significantly impacting overall performance[25] Shareholder Information - Book value per share of common stock was $8.79 as of December 31, 2025[5] - The weighted-average shares outstanding for basic earnings per share was 161,734,869 for the three months ended December 31, 2025[21]