Ready Capital Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

Commission File Number: 001-35808

READY CAPITAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)


Maryland	90-0729143
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification No.)

1251 Avenue of the Americas, 50^th Floor, New York, NY 10020

(Address of Principal Executive Offices, Including Zip Code)

(212) 257-4600

(Registrant's Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.0001 par value per share

7.00% Convertible Senior Notes due 2023

6.50% Senior Notes due 2021

6.20% Senior Notes due 2026

RCA

RCP

RCB

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ◻

Accelerated filer ⌧

Non-accelerated filer ◻

Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date:

The Company has 54,466,581 shares of common stock, par value $0.0001 per share, outstanding as of October 30, 2020.

Table of Contents

TABLE OF CONTENTS


PART I.	FINANCIAL INFORMATION	3
Item 1.	Financial Statements	3
Item 1A.	Forward-Looking Statements	66
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	68
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	102
Item 4.	Controls and Procedures	106
PART II.	OTHER INFORMATION	107
Item 1.	Legal Proceedings	107
Item 1A.	Risk Factors	107
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	110
Item 3.	Defaults Upon Senior Securities	110
Item 4.	Mine Safety Disclosures	110
Item 5.	Other Information	110
Item 6.	Exhibits	110
SIGNATURES		113
EXHIBIT 31.1 CERTIFICATIONS
EXHIBIT 31.2 CERTIFICATIONS
EXHIBIT 32.1 CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, 10 U.S.C. SECTION 1350
EXHIBIT 32.2 CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, 10 U.S.C. SECTION 1350

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

READY CAPITAL CORPORATION

unaudited CONSOLIDATED BALANCE SHEETS


(In Thousands)	September 30, 2020		December 31, 2019
Assets
Cash and cash equivalents	$	149,847	$	67,928
Restricted cash		46,204		51,728
Loans, net (including $119,965 and $20,212 held at fair value)		1,393,139		1,727,984
Loans, held for sale, at fair value		348,719		188,077
Mortgage backed securities, at fair value		90,427		92,466
Loans eligible for repurchase from Ginnie Mae		237,542		77,953
Investment in unconsolidated joint ventures		69,204		58,850
Purchased future receivables, net		16,659		43,265
Derivative instruments		20,849		2,814
Servicing rights (including $74,384 and $91,174 held at fair value)		110,045		121,969
Real estate, held for sale		45,063		58,573
Other assets		98,614		106,925
Assets of consolidated VIEs		2,691,198		2,378,486
Total Assets	$	5,317,510	$	4,977,018
Liabilities
Secured borrowings		1,176,621		1,189,392
Securitized debt obligations of consolidated VIEs, net		2,059,114		1,815,154
Convertible notes, net		111,855		111,040
Senior secured notes, net		179,572		179,289
Corporate debt, net		150,658		149,986
Guaranteed loan financing		421,183		485,461
Liabilities for loans eligible for repurchase from Ginnie Mae		237,542		77,953
Derivative instruments		7,774		5,250
Dividends payable		16,934		21,302
Accounts payable and other accrued liabilities		132,087		97,407
Total Liabilities	$	4,493,340	$	4,132,234
Stockholders’ Equity
Common stock, $0.0001 par value, 500,000,000 shares authorized, 54,175,648 and 51,127,326 shares issued and outstanding, respectively		5		5
Additional paid-in capital		846,960		822,837
Retained earnings		(31,779)		8,746
Accumulated other comprehensive loss		(9,916)		(6,176)
Total Ready Capital Corporation equity		805,270		825,412
Non-controlling interests		18,900		19,372
Total Stockholders’ Equity	$	824,170	$	844,784
Total Liabilities and Stockholders’ Equity	$	5,317,510	$	4,977,018

See Notes To Unaudited Consolidated Financial Statements

Table of Contents

READY CAPITAL CORPORATION

Unaudited CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended September 30,				Nine Months Ended September 30,
(In Thousands, except share data)	2020		2019		2020		2019
Interest income	$	61,074	$	59,723	$	193,826	$	165,510
Interest expense		(43,823)		(39,390)		(134,162)		(110,919)
Net interest income before provision for loan losses	$	17,251	$	20,333	$	59,664	$	54,591
Provision for (Recovery of) loan losses		4,231		(693)		(34,984)		(2,559)
Net interest income after provision for (recovery of) loan losses	$	21,482	$	19,640	$	24,680	$	52,032
Non-interest income
Residential mortgage banking activities		75,524		29,013		192,757		64,621
Net realized gains on financial instruments and real estate owned

Price	15.92	EPS	2
Shares	44	P/E	8
MCap	708	P/FCF	-11
Net Debt	289	EBIT	186
TEV	997	TEV/EBIT	5
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-11-06
10-Q	2020-06-30	Filed 2020-08-10
10-Q	2020-03-31	Filed 2020-05-11
10-K	2019-12-31	Filed 2020-03-12
10-Q	2019-09-30	Filed 2019-11-07
10-Q	2019-06-30	Filed 2019-08-08
10-Q	2019-03-31	Filed 2019-05-09
10-K	2018-12-31	Filed 2019-03-13
10-Q	2018-09-30	Filed 2018-11-08
10-Q	2018-06-30	Filed 2018-08-08
10-Q	2018-03-31	Filed 2018-05-10
10-K	2017-12-31	Filed 2018-03-16
10-Q	2017-09-30	Filed 2017-11-09
10-Q	2017-06-30	Filed 2017-08-03
10-Q	2017-03-31	Filed 2017-05-10
10-K	2016-12-31	Filed 2017-03-15
10-Q	2016-09-30	Filed 2016-10-25
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-10
10-K	2015-12-31	Filed 2016-03-10
10-Q	2015-09-30	Filed 2015-11-05
10-Q	2015-06-30	Filed 2015-08-06
10-Q	2015-03-31	Filed 2015-05-11
10-K	2014-12-31	Filed 2015-03-16
10-Q	2014-09-30	Filed 2014-11-13
10-Q	2014-06-30	Filed 2014-08-12
10-Q	2014-03-31	Filed 2014-05-14
10-K	2013-12-31	Filed 2014-03-13
10-Q	2013-09-30	Filed 2013-11-12
10-Q	2013-06-30	Filed 2013-08-13
10-Q	2013-03-31	Filed 2013-05-15

8-K	2020-11-04
8-K	2020-08-06
8-K	2020-07-15
8-K	2020-06-24
8-K	2020-05-11
8-K	2020-03-11
8-K	2020-01-07
8-K	2019-12-04
8-K	2019-11-25
8-K	2019-11-06
8-K	2019-10-25
8-K	2019-09-03
8-K	2019-08-07
8-K	2019-07-18
8-K	2019-07-10
8-K	2019-05-08
8-K	2019-04-03
8-K	2019-03-29
8-K	2019-03-21
8-K	2019-03-12
8-K	2019-03-11
8-K	2019-02-22
8-K	2019-02-15
8-K	2019-02-11
8-K	2019-02-08
8-K	2019-01-04
8-K	2018-11-09
8-K	2018-11-07
8-K	2018-11-07
8-K	2018-09-25
8-K	2018-08-31
8-K	2018-08-07
8-K	2018-06-13
8-K	2018-05-08
8-K	2018-04-25
8-K	2018-03-14
8-K	2018-01-30

EX-31.1	rc-20200930xex31d1.htm
EX-31.2	rc-20200930xex31d2.htm
EX-32.1	rc-20200930xex32d1.htm
EX-32.2	rc-20200930xex32d2.htm

RC 10Q Quarterly Report

Ready Capital Earnings 2020-09-30