Ready Capital Corp
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
RC$0.85-20.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001628280-25-039276
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001628280-25-050686
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 693 previous paragraphs and 734 current paragraphs.
559 unchanged; 88 reworded; 84 added; 36 removed; 10 previous and 3 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (84)
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•our ability to use our liquidity and capital resources, including cash on hand, anticipated net payments from the
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loan portfolio, debt financings and proceeds from the potential disposition of assets, to provide liquidity to fund
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ongoing obligations and address upcoming debt maturities;
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•our ability to utilize liquidity and capital resources, together with our access to the capital markets and
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potentially other balance-sheet actions, such as adjustments to our dividend rate, to meet our liquidity needs;
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Circle”), and our increased scale;
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Commission (“SEC”);
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results may also be impacted by changes in our provision for loan losses. Increases in the provision for loan loss are
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primarily driven by a deterioration in the contractual performance of a loan. Macroeconomic factors including interest
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rates and inflation, as well as supply absorption and cap rate movements, may contribute to a deterioration in a loan’s
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contractual performance. In certain circumstances, the Company may choose to modify a loan which had experienced
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financial difficulty due to the factors previously described. Our operating results may also be impacted by our available
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Federal Reserve delivered its first interest rate cut since November 2024, but there is uncertainty regarding if and when
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operations and cash flows.
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RCMF 2022-FL8, RCMF 2022-FL9 and RCMF 2022-FL10, partially offset by sales, paydowns and the transfer of
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Loans, net to both Loans, held for sale and Real estate owned. Real estate owned increased $0.4 billion, due to the
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settlement of the Portland, mixed-use asset loan obligation via a consensual deed-in-lieu arrangement, partially offset by
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sales.
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RCMF 2021-FL5, RCMF 2021-FL6, RCMF 2022-FL8, RCMF 2022-FL9 and RCMF 2022-FL10, partially offset by
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payoffs.
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•Real estate owned includes assets of consolidated VIEs.
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Refer to Exhibit 99.1 to this Form 10-Q for additional financial information related to a selection of our loan portfolio as
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of June 30, 2025.
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Q3 2025 versus Q3 2024. Interest income of$105.9 million representeda decrease of$87.4 million, primarily due to an
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decrease of$43.9 million, driven by decreased loan balances and interest rates. Provision for loan losses of$31.0 million
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representeda decrease of$18.3 million, primarily due to loan sales. Non-interest income of$17.0 million representedan
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increase of$36.2 million, primarily due to an increase inthe valuation recovery and income from the Portland mixed-use
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asset, partially offset by an increase in realized losses on financial instruments related to loan sales. Non-interest expense
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of$29.1 million representedan increase of$8.1 million, due to an increase in other operating expenses primarily driven
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by operating costs and depreciation related to the Portland mixed-use asset.
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YTD 2025 versus YTD 2024. Interest income of$353.1 million representeda decrease of$243.0 million, primarily due
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for sale, partially offset by loan sales. Non-interest loss of$134.0 million representeda decrease of$93.5 million,
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an increase in realized losses on financial instruments related to loan sales. Non-interest expense of$84.4 million
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partially offset by an increase in other operating expenses primarily driven by operating costs and depreciation related to
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the Portland mixed-use asset.
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Q3 2025 versus Q3 2024. Interest income of$31.6 million representeda decrease of$1.7 million, primarily due to
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an increase in asset specific reserves. Non-interest income of$32.6 million representeda decrease of$9.4 million,
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servicing income. Non-interest expense of$28.4 million representeda decrease of$2.0 million, due to decreases in loan
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origination expenses, partially offset by increases in loan servicing expenses.
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YTD 2025 versus YTD 2024. Interest income of$92.1 million representeda decrease of$4.9 million, primarily due to
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•our ability to borrow funds or otherwise raise capital on favorable terms;
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and our increased scale;
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Exchange Commission (“SEC”);
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While the U.S. Federal Reserve lowered rates in 2024, there is uncertainty if and when further decreases will occur.
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Q2 2025 versus Q2 2024. Interest income of$122.3 million representeda decrease of$79.8 million, primarily due to
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of$42.3 million, driven by decreased loan balances and interest rates. Provision for loan losses of$5.1 million
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representedan increase of$19.6 million, primarily due to an increase in asset specific reserves. Non-interest loss of
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loans sold. Non-interest expense of$27.5 million representeda decrease of$3.7 million, due to a decrease in charge-offs
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YTD 2025 versus YTD 2024. Interest income of$247.2 million representeda decrease of$155.6 million, primarily due
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sale, partially offset by an increase in asset specific reserves. Non-interest loss of$151.0 million representeda decrease
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of$57.3 million, primarily due to a decrease in the valuation allowance related to loans sold, partially offset by net
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realized and unrealized losses on financial instruments and real estate owned. Non-interest expense of$55.3 million
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Q2 2025 versus Q2 2024. Interest income of$30.5 million representeda decrease of$1.6 million, primarily due to
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an increase in asset specific reserves. Non-interest income of$24.1 million representedan increase of$4.3 million,
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primarily due to loan origination income, partially offset by servicing expenses. Non-interest expense of$27.7 million
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expenses.
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YTD 2025 versus YTD 2024. Interest income of$60.5 million representeda decrease of$3.2 million, primarily due to
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and an increase in asset specific reserves. Non-interest income of$60.6 million representedan increase of$20.4 million,
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expenses. Non-interest expense of$57.8 million representedan increase of$22.4 million, primarily due to increases in
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employee compensation and benefits and loan origination expenses.
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loss on bargain purchase recognized from the UDF IV Merger. Non-interest expense of$15.0 million representeda
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decrease of$3.8 million, primarily due to decreased operating expenses.
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representeda decrease of$5.8 million, primarily due to decreased operating expenses.
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of$19.5 million from thesecond quarter of 2024, primarily due to a decrease in net interest income and an increase in
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provision for loan losses, partially offset by a decrease to the valuation allowance. Consolidated distributable loss before
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losses. Consolidated distributable losses of$19.8 million for thesecond quarter of 2025 representeda decrease of$36.4
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and LMM loans.
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representedan increase of$136.7 million from thesix months ended June 30, 2024, primarily due to a gain on bargain
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purchase recognized from the UDF IV Merger, an increase in recovery for loan losses and a decrease to the valuation
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of$8.6 million for thesix months ended June 30, 2025 representeda decrease of$99.4 million from thesix months
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purchase recognized from the UDF IV Merger, a decrease to the valuation allowance andan increase in recovery for
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loan losses. Consolidated distributable losses of$31.2 million for thesix months ended June 30, 2025 representeda
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corporate debt, and net cash provided by operating activities.
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of Loans, held for sale and net income, partially offset by a recovery of loan losses related to thetransfer of Loans, net to
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proceeds from secured borrowings.
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the 6.20%2026 Notes and the 5.75%2026 Notes. Sales of the 6.20%2026 Notes and the 5.75%2026 Notes pursuant to
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•changes in prepayments of our assets;
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•changes in prepayments or acceleration of the disposition of our assets;
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and Madison One Lender Services (together, “Madison One”), and Funding Circle USA, Inc “Funding Circle”),
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and Madison One Lender Services (together, “Madison One”), and Funding Circle USA, Inc. (“Funding
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pursuant to policies of the new U.S. administration, the U.S. Department of the Treasury (“Treasury”) and the
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pursuant to policies of the U.S. administration, the U.S. Department of the Treasury (“Treasury”) and the Board
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Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Federal
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of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Federal National
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National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie
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Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the
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Mac”), the Government National Mortgage Association (“Ginnie Mae”), Federal Housing Administration
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Government National Mortgage Association (“Ginnie Mae”), Federal Housing Administration (“FHA”)
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(“FHA”) Mortgagee, USDA, U.S. Department of Veterans Affairs (“VA”) and the U.S. Securities and
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Mortgagee, USDA, U.S. Department of Veterans Affairs (“VA”) and the U.S. Securities and Exchange
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license as one of only 20 non-bank Small Business Lending Companiesand have been granted preferred
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license as one of only 16 non-bank Small Business Lending Companiesand have been granted preferred
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(“LaaS”) and LenderAI product offerings. Refer to Notes 1 and 5, included in Part I, Item 1, “Financial Statements,” of
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and LenderAI product offerings. Refer to Notes 1 and 5, included in Part I, Item 1, “Financial Statements,” of this Form
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this Form 10-Q, for more information about the Funding Circle Acquisition and the assets acquired and liabilities
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10-Q, for more information about the Funding Circle Acquisition and the assets acquired and liabilities assumed as a
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assumed as a result of the Funding Circle Acquisition.
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result of the Funding Circle Acquisition.
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results may also be impacted by our available borrowing capacity, conditions in the financial markets, credit losses in
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borrowing capacity, conditions in the financial markets, credit losses in excess of initial estimates or unanticipated credit
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excess of initial estimates or unanticipated credit events experienced by borrowers whose loans are held directly by us or
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events experienced by borrowers whose loans are held directly by us or are included in our MBS. Difficult market
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are included in our MBS. Difficult market conditions as well as inflation, energy costs, geopolitical issues, health
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conditions as well as inflation, energy costs, geopolitical issues, health epidemics and outbreaks of contagious diseases,
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epidemics and outbreaks of contagious diseases, unemployment and the availability and cost of credit are factors which
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unemployment and the availability and cost of credit are factors which could also impact our operating results.
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rate loans. As of June 30, 2025, all fixed rate loans are match funded in securitization. Floating rate loans generally have
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rate loans. As of September 30, 2025, all fixed rate loans are match funded in securitization. Floating rate loans generally
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an adjustable interest rate equal to the sum of a fixed spread plus an index rate, such as the Secured Overnight Financing
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have an adjustable interest rate equal to the sum of a fixed spread plus an index rate, such as the Secured Overnight
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Rate (“SOFR”), which typically resets monthly. As of June 30, 2025, approximately 83% of the loans in our portfolio
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Financing Rate (“SOFR”), which typically resets monthly. As of September 30, 2025, approximately 81% of the loans in
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were floating rate loans, and 17% were fixed rate loans, based on UPB.
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our portfolio were floating rate loans, and 19% were fixed rate loans, based on carrying value.
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Current market conditions. During thesecond quarter, macroeconomic concerns persisted including global market
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Current market conditions. During thethird quarter, macroeconomic concerns persisted including global market
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volatility and uncertainty about trade policies, geopolitical tensions, inflationary pressures, and elevated interest rates.
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volatility, uncertainty about trade policies, geopolitical tensions, inflationary pressures and interest rates. The U.S.
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Although the full impact of these changes remains uncertain and difficult to predict, concerns and uncertainties about the
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further decreases will occur. Although the full impact of these changes remains uncertain and difficult to predict,
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economic outlook may adversely impact our financial condition, results of operations and cash flows.
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concerns and uncertainties about the economic outlook may adversely impact our financial condition, results of
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executed a non-disclosure agreement (“NDA”) or an exclusivity agreement and commenced the due diligence process or
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executed a non-disclosure agreement or an exclusivity agreement and commenced the due diligence process or we have
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we have executed more definitive documentation, such as a letter of intent (“LOI”); and (iii) in the case of originated
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executed more definitive documentation, such as a letter of intent (“LOI”); and (iii) in the case of originated loans, we
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loans, we have issued an LOI, and the borrower has paid a deposit.
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have issued an LOI, and the borrower has paid a deposit.
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As of June 30, 2025, total assets in our consolidated balance sheet were$9.3 billion, a decrease of$0.8 billion from
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As of September 30, 2025, total assets in our consolidated balance sheet were$8.3 billion, a decrease of$1.8 billion
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December 31, 2024, primarily reflectinga decrease in Assets of consolidated VIEs, partially offset by an increase in
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from December 31, 2024, primarily reflectinga decrease in Assets of consolidated VIEs, partially offset by an increase
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Loans, net. Assets of consolidated VIEs decreased $2.8 billion, primarily due to thecollapseof RCMF 2021-FL5,
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in Loans, net and Real estate owned. Assets of consolidated VIEs decreased $3.0 billion, primarily due to thecollapseof
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RCMF 2021-FL6, RCMF 2022-FL8, RCMF 2022-FL9 and RCMF 2022-FL10 and paydowns on securitized loans.
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RCMF 2021-FL5, RCMF 2021-FL6, RCMF 2022-FL8, RCMF 2022-FL9 and RCMF 2022-FL10 and paydowns on
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Loans, netincreased $1.7 billion, primarily due to the collapse of RCMF 2021-FL5, RCMF 2021-FL6, RCMF 2022-
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securitized loans. Loans, netincreased $1.0 billion, primarily due to the collapse of RCMF 2021-FL5, RCMF 2021-FL6,
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As of June 30, 2025, total liabilities in our consolidated balance sheet were$7.4 billion, a decrease of$0.8 billion from
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As of September 30, 2025, total liabilities in our consolidated balance sheet were$6.4 billion, a decrease of$1.7 billion
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December 31, 2024, primarily reflectinga decrease in Securitized debt obligations of consolidated VIEs, net, partially
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from December 31, 2024, primarily reflectinga decrease in Securitized debt obligations of consolidated VIEs, net,
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offset by an increase in Secured borrowings. Securitized debt obligations of consolidated VIEs, netdecreased $2.1
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partially offset by an increase in Secured borrowings. Securitized debt obligations of consolidated VIEs, netdecreased
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billion due to paydowns on securitized loans including the collapse of RCMF 2021-FL5, RCMF 2021-FL6, RCMF
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$2.3 billion due to paydowns on securitized loans including the collapse of RCMF 2021-FL5, RCMF 2021-FL6, RCMF
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2022-FL8, RCMF 2022-FL9 and RCMF 2022-FL10. Secured borrowings increased$1.5 billion due to the collapse of
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2022-FL8, RCMF 2022-FL9 and RCMF 2022-FL10. Secured borrowings increased$0.8 billion due to the collapse of
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As of June 30, 2025, total stockholders’ equity was$1.9 billion, a decrease of$10.1 million from December 31, 2024,
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As of September 30, 2025, total stockholders’ equity was$1.9 billion, a decrease of$60.5 million from December 31,
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primarily due to dividends paid and common stock repurchased through the Company’s share repurchase program,
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2024, primarily due to dividends paid and common stock repurchased through the Company’s share repurchase program,
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non-accrual loans, decreased loan balances and interest rates. Interest expense of$116.1 million representeda decrease
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increase innon-accrual loans, decreased loan balances and interest rates. Interest expense of$106.6 million representeda
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to non-accrual loans, decreased loan balances and interest rates. Interest expense of$236.4 million representeda
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to an increase innon-accrual loans, decreased loan balances and interest rates. Interest expense of$343.0 million
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primarily due to loan origination income, net realized gains on financial instruments and servicing income. Non-interest
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by net cash provided by investing and operating activities. The net cash used for financing activities primarily reflected
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provided by investing activities primarily reflected proceeds on disposition and principal payments of loans, partially
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could also impact our operating results.
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FL8, RCMF 2022-FL9 and RCMF 2022-FL10.
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RCMF 2021-FL5, RCMF 2021-FL6, RCMF 2022-FL8, RCMF 2022-FL9 and RCMF 2022-FL10.
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•Real estate owned, held for sale includes assets of consolidated VIEs.
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of real estate acquired in settlement of loans.
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sales of real estate owned assets and LMM loans.
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million from December 31, 2023, primarily due to cash provided by investing and operating activities, partially offset by
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cash used for financing activities. The net cash provided by investing activities primarily reflected proceeds on
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by operating activities reflected a valuation allowance related to the transfer of Loans, net to Loans, held for sale,
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RCMF 2022-FL9 and RCMF 2022-FL10.