Ready Capital Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Ready Capital Corp. has filed its 2023 10-K annual report detailing its financial performance and corporate structure.</b>

AI Summary

Ready Capital Corp (RC-PE) filed a Annual Report (10-K) with the SEC on February 28, 2024. Ready Capital Corp. filed its 10-K report for the fiscal year ending December 31, 2023. The company's principal executive offices are located at 1251 Avenue of the Americas, 50th Floor, New York, NY 10020. Ready Capital Corp. was formerly known as Sutherland Asset Management Corp. and ZAIS Financial Corp. The filing includes data related to various equity and preferred stock series, including Series E, D, and B. Key financial statement components such as Retained Earnings, Additional Paid-In Capital, and Accumulated Other Comprehensive Income are detailed for multiple fiscal years.

Why It Matters

For investors and stakeholders tracking Ready Capital Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Ready Capital Corp.'s financial health, operational performance, and strategic positioning for the fiscal year 2023, crucial for investors assessing its current value and future prospects. The detailed breakdown of equity, preferred stock, and retained earnings offers insights into the company's capital structure and profitability trends, aiding in the evaluation of its financial stability and growth potential.

Risk Assessment

Risk Level: medium — Ready Capital Corp shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not present immediate, significant positive or negative catalysts, placing its risk profile at a medium level for immediate market reaction.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Ready Capital Corp.'s performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (The period covered by the 10-K filing.)
• 2024-02-28 — Filing Date (The date the 10-K was filed with the SEC.)
• 001-35808 — SEC File Number (SEC registration number for Ready Capital Corp.)
• 0001527590 — Central Index Key (Unique identifier for Ready Capital Corp. in SEC filings.)

Key Players & Entities

• Ready Capital Corp. (company) — Filer of the 10-K report.
• Sutherland Asset Management Corp (company) — Former name of Ready Capital Corp.
• ZAIS Financial Corp. (company) — Former name of Ready Capital Corp.
• 1251 Avenue of the Americas (company) — Business address of Ready Capital Corp.
• New York (company) — City in the business address.
• MD (company) — State of incorporation.

FAQ

Industry Context

Ready Capital Corp. operates within the Real Estate Investment Trusts (REITs) sector, focusing on commercial real estate debt and equity investments.

Regulatory Implications

As a publicly traded company, Ready Capital Corp. is subject to the reporting requirements of the Securities Exchange Act of 1934, including the annual filing of Form 10-K.

What Investors Should Do

1. Analyze the company's balance sheet and income statement for the fiscal year 2023.
2. Review any disclosed risk factors that could impact future performance.
3. Compare key financial metrics to previous years to identify trends.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-28: Filing Date — The date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the annual 10-K for the fiscal year ending December 31, 2023, providing a comprehensive update compared to previous quarterly or annual filings.

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value per share RC New York Sto
• $40 million — ginal principal amounts generally up to $40 million and are used by businesses to purchase
• $536 million — st five years; our book value grew from $536 million as of December 31, 2017 to approximatel
• $2.6 billion — s of December 31, 2017 to approximately $2.6 billion as of December 31, 2023 and our total a
• $500,000 — h original principal amounts of between $500,000 and $40 million and are primarily finan

Filing Documents

• rc-20231231x10k.htm (10-K) — 8643KB
• rc-20231231xex4d21.htm (EX-4.21) — 465KB
• rc-20231231xex10d14.htm (EX-10.14) — 34KB
• rc-20231231xex10d15.htm (EX-10.15) — 31KB
• rc-20231231xex19d1.htm (EX-19.1) — 55KB
• rc-20231231xex21d1.htm (EX-21.1) — 162KB
• rc-20231231xex23d1.htm (EX-23.1) — 3KB
• rc-20231231xex31d1.htm (EX-31.1) — 15KB
• rc-20231231xex31d2.htm (EX-31.2) — 16KB
• rc-20231231xex32d1.htm (EX-32.1) — 7KB
• rc-20231231xex32d2.htm (EX-32.2) — 7KB
• rc-20231231xex97d1.htm (EX-97.1) — 59KB
• rc-20231231x10k003.jpg (GRAPHIC) — 4KB
• rc-20231231x10k006.jpg (GRAPHIC) — 58KB
• rc-20231231x10k007.jpg (GRAPHIC) — 83KB
• rc-20231231x10k008.jpg (GRAPHIC) — 34KB
• rc-20231231x10k009.jpg (GRAPHIC) — 26KB
• rc-20231231x10k010.jpg (GRAPHIC) — 49KB
• rc-20231231x10k011.jpg (GRAPHIC) — 40KB
• 0001558370-24-002034.txt (&nbsp;) — 37193KB
• rc-20231231.xsd (EX-101.SCH) — 185KB
• rc-20231231_cal.xml (EX-101.CAL) — 256KB
• rc-20231231_def.xml (EX-101.DEF) — 792KB
• rc-20231231_lab.xml (EX-101.LAB) — 1511KB
• rc-20231231_pre.xml (EX-101.PRE) — 1153KB
• rc-20231231x10k_htm.xml (XML) — 9049KB

Business

Item 1. Business 7

Risk Factors

Item 1A. Risk Factors 19

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 69

Cybersecurity

Item 1C. Cybersecurity 70

Properties

Item 2. Properties 70

Legal Proceedings

Item 3. Legal Proceedings 71

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 71 PART II 71

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 71

[Reserved]

Item 6. [Reserved] 73

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 74

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 92

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 96

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 160

Controls and Procedures

Item 9A. Controls and Procedures 160

Other Information

Item 9B. Other Information 161

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 161 PART III 161

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 161

Executive Compensation

Item 11. Executive Compensation 161

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 161

Certain Relationships and Related Transactions and Director Independence

Item 13. Certain Relationships and Related Transactions and Director Independence 161

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 161 PART IV 162

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 162

Form 10-K Summary

Item 16. Form 10-K Summary 166

SIGNATURES

SIGNATURES 167 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Except where the context suggests otherwise, the terms "Company," "we," "us" and "our" refer to Ready Capital Corporation and its subsidiaries. We make forward-looking statements in this annual report on Form 10-K within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We intend such statements to be covered by the safe harbor provisions for forward-looking statements contained therein. Forward-looking statements contained in this annual report reflect our current views about future events and are inherently subject to substantial risks and uncertainties, many of which are difficult to predict and beyond our control, that may cause our actual results to materially differ. These forward-looking statements include information about possible or assumed future results of our operations, financial condition, liquidity, plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "could," "would," "may," "potential" or other comparable terminology, we intend to identify forward-looking statements, although not all forward-looking statements may contain such words. Statements regarding the following subjects, among others, may be forward-looking, and the occurrence of events impacting these subjects, or otherwise impacting our business, may cause our financial condition, liquidity and consolidated results of operations to vary materially from those expressed in, or implied by, any such forward-looking statements: our investment objectives and business strategy; our ability to borrow funds or otherwise raise capital on favorable terms; our expected leverage; our expected investments; estimates or statements relating to, and our ability to make, future distributions; projected capital

Business

Item 1. Business In this Annual Report on Form 10-K, we refer to Ready Capital Corporation and its subsidiaries as "we," "us," "our," or "our Company" unless we specifically state otherwise or the context indicates otherwise. General We are a multi-strategy real estate finance company that originates, acquires, finances, and services LMM loans, SBA loans, residential mortgage loans, construction loans and, to a lesser extent, MBS collateralized primarily by LMM loans, or other real estate-related investments. Our loans range in original principal amounts generally up to $40 million and are used by businesses to purchase real estate used in their operations or by investors seeking to acquire multi-family, office, retail, mixed use or warehouse properties. Our objective is to provide attractive risk-adjusted returns to our stockholders primarily through dividends, as well as through capital appreciation. In order to achieve this objective, we continue to grow our investment portfolio and believe that the breadth of our full-service real estate finance platform will allow us to adapt to market conditions and deploy capital to asset classes and segments with the most attractive risk-adjusted returns. In the fourth quarter of 2023, the Board approved a plan to strategically shift our Company's core focus to LMM commercial real estate lending and government backed small business loans, which contemplates the disposition of assets and liabilities of our residential mortgage banking activities. Accordingly, as of December 31, 2023, our Residential Mortgage Banking segment met the criteria to be classified as held for sale on the consolidated balance sheets, presented as discontinued operations on the consolidated statements of income, and excluded from continuing operations for all periods presented in this annual report on Form 10-K. Item 1. "Business" in this annual report on Form 10-K has been adjusted to exclude discontinued operations unless otherwise noted. We

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View this 10-K filing on SEC EDGAR