Ready Capital Corporation Reports Second Quarter 2024 Results

Core Insights - Ready Capital Corporation reported a GAAP loss per common share from continuing operations of $(0.21) for the quarter ended June 30, 2024, with distributable earnings per common share of $0.07 and $0.19 before realized losses [1][18]. Financial Performance - Total investments amounted to $474 million, including $257 million in lower-to-middle-market (LMM) originations and a record $217 million in U.S. Small Business Administration 7(a) loans [2]. - The company declared and paid a dividend of $0.30 per share in cash [2]. - The net book value of common stock was $12.97 per share as of June 30, 2024 [2]. - Approximately 2.3 million shares of common stock were repurchased at an average price of $8.61 per share [2]. - The company sold $4.7 billion of residential mortgage servicing rights for net proceeds of $61.8 million [2]. - The sale process of $462 million of under-performing loans was completed, with expected settlement in the third quarter [2]. Subsequent Events - The company acquired Funding Circle USA, Inc., an online lending platform that originates and services small business loans [3]. Non-GAAP Financial Information - Distributable earnings, previously referred to as core earnings, are defined as net income adjusted for various unrealized gains and losses, providing greater transparency into financial performance [4][5]. - The company emphasizes that distributable earnings should be considered alongside GAAP net income as it is an incomplete measure of financial performance [4]. Segment Reporting - For the three months ended June 30, 2024, interest income from LMM commercial real estate was $202.0 million, while business lending contributed $32.1 million [20]. - The net interest income after recovery of loan losses was $69.8 million for the quarter [20]. - Total non-interest income for the quarter was $(82.4) million, reflecting various losses and expenses [20]. Balance Sheet Highlights - As of June 30, 2024, total assets were $11.77 billion, with cash and cash equivalents of $226.3 million and loans net of $3.44 billion [16]. - Total liabilities were $9.37 billion, with secured borrowings of $2.31 billion and securitized debt obligations of $4.41 billion [16].