Ready Capital Corp

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULE

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID 34)

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and the Board of Directors of Ready Capital Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Ready Capital Corporation and subsidiaries (the

"Company") as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive

income, changes in equity, and cash flows, for each of the three years in the period ended December 31, 2024, and the

related notes and the schedule listed in the Index at Item 8 (collectively referred to as the "financial statements"). In our

opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of

December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period

ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United

States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria

established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations

of the Treadway Commission and our report dated March 3, 2025, expressed an unqualified opinion on the Company's

internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an

opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the

PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities

laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether the financial statements are free of material

misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material

misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those

risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the

financial statements. Our audits also included evaluating the accounting principles used and significant estimates made

by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits

provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements

that was communicated or required to be communicated to the audit committee and that (1) relate to accounts or

disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or

complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial

statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate

opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Allowance for loan losses - Refer to Notes 3 and 6 to the financial statements

Critical Audit Matter Description

The allowance for loan losses is intended to provide for credit losses of loans within the loans held-for-investment

portfolio and is reviewed quarterly for adequacy considering credit quality indicators, including probable and historical

losses, collateral values, loan-to-value ratio and economic conditions. The allowance for loan losses is increased through

provisions for loan losses charged to earnings and reduced by charge-offs, net of recoveries. For loans that do not share

similar risk characteristics with the remainder of the portfolio, the Company evaluates the allowance for loan losses on

an individual basis, and not as part of the pool. In addition, the Company considers loan investments to be “collateral-

dependent” loans if they are both (i) expected to be substantially repaid through the operation or sale of the underlying

collateral, and (ii) for which the borrower is experiencing financial difficulty.

Significant inputs to the Company’s forecasting methods include loan-to-value, vintage year, loan-term, underlying

property type, occupancy, geographic location, and others. Significant judgments are required in determining the

allowance, including making assumptions regarding the ongoing performance of the loan, and the value of the

underlying collateral.

Given the judgment necessary to estimate internal and external factors that may affect collectability of these loans,

auditing the estimated allowance for loan losses involved especially complex and subjective judgment, including the

need to involve our specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the Company’s the allowance for loan losses, including procedures around the fair value

of collateral included the following, among others:

•We tested the effectiveness of controls over the allowance for loan losses, including management’s controls

over the monitoring of loan performance, and the value of the underlying collateral.

•With the assistance of our fair value specialists, we evaluated the reasonableness of the underlying collateral

values for consistency with external data from other sources.

•We tested the significant inputs into the forecast methods, including loan performance, to determine whether the

information used was relevant, accurate and complete. We also tested the mathematical accuracy of the

calculation.

/s/DELOITTE & TOUCHE LLP

New York, New York

March 3, 2025

We have served as the Company's auditor since 2012.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and the Board of Directors of Ready Capital Corporation

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Ready Capital Corporation and subsidiaries (the

“Company”) as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013)

issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the

Company maintained, in all material respects, effective internal control over financial reporting as of December 31,

2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United

States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2024, of the

Company and our report dated March 3, 2025, expressed an unqualified opinion on those consolidated financial

statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its

assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s

Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s

internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB

and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and

the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was

maintained in all material respects. Our audit included obtaining an understanding of internal control over financial

reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness

of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the

circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding

the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with

generally accepted accounting principles. A company’s internal control over financial reporting includes those policies

and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the

transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are

recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting

principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of

management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely

detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the

financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become

inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may

deteriorate.

/s/ DELOITTE & TOUCHE LLP

New York, New York

March 3, 2025

CONSOLIDATED BALANCE SHEETS