Ready Capital Corp. Files Q2 2024 10-Q

TL;DR

**Ready Capital Corp. Q2 2024 10-Q filed. Financials out.**

AI Summary

Ready Capital Corp. filed its 10-Q for the period ending June 30, 2024. The company, formerly known as Sutherland Asset Management Corp. and ZAIS Financial Corp., reported financial results for the second quarter. Key financial data and operational details are provided in this filing.

Why It Matters

This filing provides investors with the latest financial performance and operational status of Ready Capital Corp., crucial for understanding its current market position and future prospects.

Risk Assessment

Risk Level: medium — As a real estate investment trust, Ready Capital Corp. is subject to market fluctuations and interest rate risks inherent in the real estate sector.

Key Numbers

• 172,276,105 — Prepaid Expense and Other Assets (As of June 30, 2024, compared to prior periods.)
• 168,167,272 — Prepaid Expense and Other Assets (As of the prior period end.)

Key Players & Entities

• Ready Capital Corp. (company) — Filer of the 10-Q
• Sutherland Asset Management Corp. (company) — Former company name
• ZAIS Financial Corp. (company) — Former company name
• 20240630 (date) — Period of report
• 20240809 (date) — Filing date

FAQ

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value per share RC New York Sto

Filing Documents

• rc-20240630x10q.htm (10-Q) — 7537KB
• rc-20240630xex31d1.htm (EX-31.1) — 16KB
• rc-20240630xex31d2.htm (EX-31.2) — 16KB
• rc-20240630xex32d1.htm (EX-32.1) — 7KB
• rc-20240630xex32d2.htm (EX-32.2) — 7KB
• 0001558370-24-011768.txt ( ) — 33337KB
• rc-20240630.xsd (EX-101.SCH) — 168KB
• rc-20240630_cal.xml (EX-101.CAL) — 213KB
• rc-20240630_def.xml (EX-101.DEF) — 739KB
• rc-20240630_lab.xml (EX-101.LAB) — 1355KB
• rc-20240630_pre.xml (EX-101.PRE) — 1030KB
• rc-20240630x10q_htm.xml (XML) — 9070KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Unaudited Consolidated Balance Sheets 4 Unaudited Consolidated Statements of Operations 5 Unaudited Consolidated Statements of Comprehensive Income (Loss) 6 Unaudited Consolidated Statements of Changes in Equity 7 Unaudited Consolidated Statements of Cash Flows 9 Notes to the Consolidated Financial Statements (Unaudited) 10 Note 1. Organization 10 Note 2. Basis of Presentation 11 Note 3. Summary of Significant Accounting Policies 11 Note 4. Recent Accounting Pronouncements 22 Note 5. Business Combinations 23 Note 6. Loans and Allowance for Credit Losses 25 Note 7. Fair Value Measurements 32 Note 8. Servicing Rights 36 Note 9. Discontinued Operations and Assets and Liabilities Held for Sale 37 Note 10. Secured Borrowings 38 Note 11. Senior Secured Notes and Corporate Debt, net 39 Note 12. Guaranteed Loan Financing 41 Note 13. Variable Interest Entities and Securitization Activities 42 Note 14. Interest Income and Interest Expense 43 Note 15. Derivative Instruments 44 Note 16. Real Estate Owned, Held for Sale 45 Note 17. Agreements and Transactions with Related Parties 46 Note 18. Other Assets and Other Liabilities 47 Note 19. Other Income and Operating Expenses 49 Note 20. Redeemable Preferred Stock and Stockholders' Equity 49 Note 21. Earnings per Share of Common Stock 52 Note 22. Offsetting Assets and Liabilities 53 Note 23. Financial Instruments with Off-Balance Sheet Risk, Credit Risk, and Certain Other Risks 54 Note 24. Commitments, Contingencies and Indemnifications 56 Note 25. Income Taxes 56 Note 26. Segment Reporting 57 Note 27. Subsequent Events 59 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 60 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 77 Item 4.

Controls and Procedures

Controls and Procedures 80 2 Table of Contents PART II. OTHER INFORMATION 81 Item 1.

Legal Proceedings

Legal Proceedings 81 Item 1A.

Risk Factors

Risk Factors 81 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 81 Item 3. Default Upon Senior Securities 81 Item 4. Mine Safety Disclosures 82 Item 5. Other Information 82 Item 6. Exhibits 83

SIGNATURES

SIGNATURES 86 3 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) READY CAPITAL CORPORATION UNAUDITED CONS OLIDATED BALANCE SHEETS (in thousands) June 30, 2024 December 31, 2023 Assets Cash and cash equivalents $ 226,286 $ 138,532 Restricted cash 29,971 30,063 Loans, net (including $ 0 and $ 9,348 held at fair value) 3,444,879 4,020,160 Loans, held for sale (including $ 89,380 and $ 81,599 held at fair value and net of valuation allowance of $ 217,719 and $ 0 ) 532,511 81,599 Mortgage-backed securities 30,174 27,436 Investment in unconsolidated joint ventures (including $ 6,974 and $ 7,360 held at fair value) 134,602 133,321 Derivative instruments 14,382 2,404 Servicing rights 119,768 102,837 Real estate owned, held for sale 187,883 252,949 Other assets 379,413 300,175 Assets of consolidated VIEs (net of valuation allowance of $ 9,448 and $ 0 ) 6,250,570 6,897,145 Assets held for sale (refer to Note 9) 423,894 454,596 Total Assets $ 11,774,333 $ 12,441,217 Liabilities Secured borrowings 2,311,969 2,102,075 Securitized debt obligations of consolidated VIEs, net 4,407,241 5,068,453 Senior secured notes, net 417,040 345,127 Corporate debt, net 767,271 764,908 Guaranteed loan financing 782,345 844,540 Contingent consideration 3,926 7,628 Derivative instruments 2,638 212 Dividends payable 53,119 54,289 Loan participations sold 89,532 62,944 Due to third parties 1,995 3,641 Accounts payable and other accrued liabilities 204,766 207,481 Liabilities held for sale (refer to Note 9) 332,265 333,157 Total Liabilities $ 9,374,107 $ 9,794,455 Preferred stock Series C, liquidation preference $ 25.00 per share (refer to Note 20) 8,361 8,361 Commitments & contingencies (refer to Note 24) Stockholders' Equity Preferred stock Series E, liquidation preference $ 25.00 per share (refer to Note 20) 111,378 111,378 Common stock, $ 0.0001 par va

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