Ready Capital Corporation Reports Third Quarter 2025 Results

Core Insights - Ready Capital Corporation reported a GAAP loss per common share from continuing operations of $(0.13) and a distributable loss per common share of $(0.94) for the quarter ended September 30, 2025 [1][22] - The company is focused on restoring financial health through decisive exit strategies for underperforming loans and risk management of upcoming debt maturities, aiming for balance sheet stability and profitability [2] Financial Performance - The company reported LMM commercial real estate originations of $139 million and Small Business Lending loan originations of $283 million, which included $173 million of Small Business Administration 7(a) loans [6] - The book value of common stock was $10.28 per share as of September 30, 2025 [6] - The company completed two portfolio sales consisting of 217 loans with an unpaid principal balance of $758 million for net proceeds of $109 million [6] Non-GAAP Financial Information - Distributable earnings, a non-GAAP measure, is defined as net income adjusted for various unrealized gains and losses, providing greater transparency into financial performance [3][4] - The calculation of distributable earnings excludes unrealized gains and losses on mortgage-backed securities retained as part of the loan origination business, as these are considered fundamental to ongoing performance [5] Income Statement Highlights - For the three months ended September 30, 2025, the company reported net interest income before provision for loan losses of $10,520 thousand, with a net loss from continuing operations of $(16,947) thousand [22][23] - Total non-interest income was $74,914 thousand, while total non-interest expense was $74,339 thousand, resulting in a loss from continuing operations before income taxes of $(26,882) thousand [22][23] Balance Sheet Overview - As of September 30, 2025, total assets were $8,332,101 thousand, with total liabilities of $6,448,542 thousand, resulting in stockholders' equity of $1,875,198 thousand [20][21] - The company had cash and cash equivalents of $147,505 thousand and loans net of $4,360,501 thousand [20]