Ready Capital Corp
For the period ended Mar 31, 2026. Filed May 8, 2026.
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.
Mar 31, 2026 · Filed May 8, 2026
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 2025-09-30; filed 2025-11-07.
0001628280-25-050686
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001628280-26-032982
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 734 previous paragraphs and 671 current paragraphs.
529 unchanged; 84 reworded; 53 added; 113 removed; 8 previous and 5 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 (53)
Current report
•our potential entry into certain hedging arrangements related to the delivery of shares of common stock upon
Current report
vesting of certain performance-based equity awards and restricted stock awards and the risk that such
Current report
arrangements may not have the desired impact and may expose us to additional risks, including the failure of
Current report
the counterparty to perform under the contracts;
Current report
•our ability to obtain a license for the Freddie Mac Conventional Small program, which is replacing the Freddie
Current report
Mac Small Balance Loan program that expired on April 30, 2026;
Current report
most attractive risk-adjusted returns.
Current report
iBusiness Funding LLC and we service USDA loans through our subsidiary, ReadyCap Commercial.
Current report
Federal Reserve did not decrease interest rates in the quarter and there is uncertainty regarding if and when decreases
Current report
flows.
Current report
Assets of consolidated VIEs decreased $1.0 billion, primarily due to thecollapseof RCMF 2021-FL7, RCMF 2023-
Current report
FL11 and RCMF 2023-FL12 and paydowns on securitized loans. Loans, held for sale decreased $0.2 billion, primarily
Current report
due to loans sold, partially offset by loans transferred from Loans, net. Loans, netdecreased $0.1 billion, primarily due
Current report
to loan sales and loans transferred from Loans, net to Loans, held for sale, partially offset by the collapse of RCMF
Current report
2021-FL7, RCMF 2023-FL11 and RCMF 2023-FL12.
Current report
RCMF 2021-FL7, RCMF 2023-FL11 and RCMF 2023-FL12. Secured borrowings decreased $0.5 billion due to payoffs,
Current report
partially offset by the collapse of RCMF 2021-FL7, RCMF 2023-FL11 and RCMF 2023-FL12.
Current report
primarily due to net losses.
Current report
Q1 2026 versus Q1 2025. Interest income of$58.9 million representeda decrease of$66.1 million, primarily due to
Current report
decreased loan balances primarily driven by loan sales and an increased balance of loans on non-accrual status driven by
Current report
a higher probability that principal and interest will not be collected under the original contractual terms. Interest expense
Current report
of$80.7 million representeda decrease of$39.7 million, driven by decreased loan balances and interest rates. Provision
Current report
for loan losses of$66.5 million representedan increase of$184.5 million, due to changes in the forecasted
Current report
transferred from Loans, net to Loans, held for sale. Non-interest loss of$68.0 million representeda decrease of$46.5
Current report
million, primarily due to a decrease in the transfer of Loans, net to Loans, held for sale and the recovery of the valuation
Current report
allowance from loans sold, partially offset by net realized losses on financial instruments and real estate owned driven by
Current report
loan sales. Non-interest expense of$40.9 million representedan increase of$13.2 million, due to an increasein other
Current report
Q1 2026 versus Q1 2025. Interest income of$22.8 million representeda decrease of$7.2 million, primarily due to
Current report
decreased loan balances and interest rates. Interest expense of$16.2 million representeda decrease of$4.0 million,
Current report
driven by decreased loan balances and interest rates. Provision for loan losses of$4.4 million representeda decrease of
Current report
in specific loan reserves. Non-interest income of$19.1 million representeda decrease of$17.4 million, primarily due to
Current report
a decrease in net realized gains on financial instruments. Non-interest expense of$29.2 million was essentially
Current report
unchanged from the prior year period.
Current report
representeda decrease of$2.2 million, primarily due to decreased transaction related expenses.
Current report
representedan increase of$282.1 million from thethree months ended March 31, 2025, primarily due to provision for
Current report
reserves, partially offset by a decrease in the provision for loan losses related to loans transferred from Loans, net to
Current report
Loans, held for sale, a gain on bargain purchase recognized from the UDF IV Merger in the prior year period, primarily
Current report
change in our stock price between the date of the agreement and the closing date of the UDF IV Merger and net realized
Current report
losses on financial instruments and real estate owned driven by loan sales, partially offset bydecrease in the valuation
Current report
allowance related to the transfer of Loans, net to Loans, held for sale driven by loan sales. Consolidated distributable
Showing the first 40 of 53 passages. Open the source sections for the rest.
Removed paragraphs (113)
Previous report
and Madison One Lender Services (together, “Madison One”), and Funding Circle USA, Inc. (“Funding
Previous report
Circle”), and our increased scale;
Previous report
United States Department of Agriculture (“USDA”), mortgage backed securities (“MBS”), residential mortgage
Previous report
primarily through dividends, as well as through capital appreciation. In order to achieve this objective, we continue to
Previous report
returns.
Previous report
the Freddie Mac SBL program. These originated loans are held for sale, and subsequently sold to Freddie
Previous report
Funding LLC.
Previous report
Funding Circle. On July 1, 2024, the Company acquired Funding Circle through its subsidiary, iBusiness Funding LLC,
Previous report
for approximately $41.2 millionin cash plus the assumption of certain liabilities (the “Funding Circle Acquisition”).
Previous report
Funding Circle is an online lending platform that originates and services small business loans. The Funding Circle
Previous report
Acquisition integrates Funding Circle’s loan origination servicing platform with the Company’s Lending as a Service
Previous report
and LenderAI product offerings. Refer to Notes 1 and 5, included in Part I, Item 1, “Financial Statements,” of this Form
Previous report
10-Q, for more information about the Funding Circle Acquisition and the assets acquired and liabilities assumed as a
Previous report
result of the Funding Circle Acquisition.
Previous report
Madison One. On June 5, 2024, the Company acquired Madison One, a leading originator and servicer of USDA and
Previous report
SBA guaranteed loan products, for an initial purchase price of approximately $32.9 million paid in cash (the “Madison
Previous report
One Acquisition”). Approximately $3.6 million of the initial purchase price was paid as bonuses to certain key Madison
Previous report
One personnel in cash. Additional purchase price payments, including cash payments and the issuance of shares of
Previous report
common stock of the Company, may be made over the four years following the acquisition date contingent upon the
Previous report
Madison One business achieving certain performance metrics. Part of the Company’s strategy in acquiring Madison One
Previous report
included the value of the anticipated synergies arising from the acquisition and the value of the acquired assembled
Previous report
workforce, neither of which qualify for recognition as an intangible asset. Refer to Notes 1 and 5, included in Part I, Item
Previous report
1, “Financial Statements,” of this Form 10-Q, for more information about the Madison One Acquisition and the assets
Previous report
acquired and liabilities assumed as a result of the Madison One Acquisition.
Previous report
Federal Reserve delivered its first interest rate cut since November 2024, but there is uncertainty regarding if and when
Previous report
operations and cash flows.
Previous report
in Loans, net and Real estate owned. Assets of consolidated VIEs decreased $3.0 billion, primarily due to thecollapseof
Previous report
RCMF 2021-FL5, RCMF 2021-FL6, RCMF 2022-FL8, RCMF 2022-FL9 and RCMF 2022-FL10 and paydowns on
Previous report
securitized loans. Loans, netincreased $1.0 billion, primarily due to the collapse of RCMF 2021-FL5, RCMF 2021-FL6,
Previous report
RCMF 2022-FL8, RCMF 2022-FL9 and RCMF 2022-FL10, partially offset by sales, paydowns and the transfer of
Previous report
Loans, net to both Loans, held for sale and Real estate owned. Real estate owned increased $0.4 billion, due to the
Previous report
settlement of the Portland, mixed-use asset loan obligation via a consensual deed-in-lieu arrangement, partially offset by
Previous report
sales.
Previous report
$2.3 billion due to paydowns on securitized loans including the collapse of RCMF 2021-FL5, RCMF 2021-FL6, RCMF
Previous report
2022-FL8, RCMF 2022-FL9 and RCMF 2022-FL10. Secured borrowings increased$0.8 billion due to the collapse of
Previous report
RCMF 2021-FL5, RCMF 2021-FL6, RCMF 2022-FL8, RCMF 2022-FL9 and RCMF 2022-FL10, partially offset by
Previous report
payoffs.
Previous report
2024, primarily due to dividends paid and common stock repurchased through the Company’s share repurchase program,
Previous report
partially offset by shares issued in connection with the acquisition of UDF IV.
Previous report
Refer to Exhibit 99.1 to this Form 10-Q for additional financial information related to a selection of our loan portfolio as
Showing the first 40 of 113 passages. Open the source sections for the rest.
Reworded paragraphs (84)
Previous wording
including the acquisitions of United Development Funding IV (“UDF IV”), Madison One Capital, M1 CUSO
Current wording
including theacquisition of United Development Funding IV (“UDF IV”);
Previous wording
Section 7(a) loan program (the “SBA Section 7(a) Program”), government-guaranteed loans focused on the
Current wording
Section 7(a) loan program (the “SBA Section 7(a) Program”), mortgage backed securities (“MBS”), residential
Previous wording
loans and other real estate-related investments that satisfy our investment objectives and strategies;
Current wording
mortgage loans and other real estate-related investments that satisfy our investment objectives and strategies;
Previous wording
loans, construction loans, USDA loansand, to a lesser extent, MBS collateralized primarily by LMM loans, or other real
Current wording
loans, construction loansand, to a lesser extent, MBS collateralized primarily by LMM loans, or other real estate-related
Previous wording
estate-related investments. Our loans generally range in original principal amounts up to $40 million and are used by
Current wording
investments. Our loans generally range in original principal amounts up to $40 million and are used by businesses to
Previous wording
businesses to purchase real estate used in their operations or by investors seeking to acquire multi-family, office, retail,
Current wording
purchase real estate used in their operations or by investors seeking to acquire multi-family, office, retail, mixed use or
Previous wording
mixed use or warehouse properties. Our objective is to provide attractive risk-adjusted returns to our stockholders
Current wording
warehouse properties. Our objective is to provide attractive risk-adjusted returns to our stockholders. In order to achieve
Previous wording
grow our investment portfolio and believe that the breadth of our full-service real estate finance platform will allow us to
Current wording
this objective, we intend to grow our investment portfolio and believe that the breadth of our full-service real estate
Previous wording
adapt to market conditions and deploy capital in our asset classes and segments with the most attractive risk-adjusted
Current wording
finance platform will allow us to adapt to market conditions and deploy capital in our asset classes and segments with the
Previous wording
securitization structures. As part of this segment, we originate and service multi-family loan products under
Current wording
securitization structures. As part of this segment, we service Freddie Mac multi-family loan products. We
Previous wording
Mac. We provide construction and permanent financing for the preservation and construction of affordable
Current wording
provide construction and permanent financing for the preservation and construction of affordable housing,
Previous wording
housing, primarily utilizing tax-exempt bonds through Red Stone, a subsidiary. In addition, we acquire
Current wording
primarily utilizing tax-exempt bonds through Ready Capital Affordable, a subsidiary. In addition, we
Previous wording
LMM loans as part of our business strategy. We hold performing LMM loans to term and seek to maximize
Current wording
acquire LMM loans as part of our business strategy. We hold performing LMM loans to term and seek to
Previous wording
the value of the non-performing LMM loans acquired by us through borrower-based resolution strategies.
Current wording
maximize the value of the non-performing LMM loans acquired by us through borrower-based resolution
Previous wording
We typically acquire non-performing loans at a discount to their unpaid principal balance (“UPB”)when we
Current wording
strategies. We typically acquire non-performing loans at a discount to their unpaid principal balance
Previous wording
believe that resolution of the loans will provide attractive risk-adjusted returns.
Current wording
(“UPB”)when we believe that resolution of the loans will provide attractive risk-adjusted returns.
Previous wording
structures, orsold. In addition, we acquire, originate and service USDA loans through our subsidiary,
Current wording
structures, orsold. In addition, weoriginate and service small business loans through our subsidiary
Previous wording
SBA loans, USDA loans, construction loans, MBS and other assets we may acquire in the future, demand for housing,
Current wording
SBA loans, construction loans, MBS and other assets we may acquire in the future, demand for housing, population
Previous wording
population trends, construction costs, the availability of alternative real estate financing from other lenders, changes in
Current wording
trends, construction costs, the availability of alternative real estate financing from other lenders, changes in credit
Previous wording
credit spreads, and the financing and other costs associated with our business. These factors may have an impact on our
Current wording
spreads, and the financing and other costs associated with our business. These factors may have an impact on our ability
Previous wording
ability to originate new loans or the performance of our existing loan portfolio. Our net investment income, which
Current wording
to originate new loans or the performance of our existing loan portfolio. Our net investment income, which includes the
Previous wording
includes the amortization of purchase premiums and accretion of purchase discounts, varies primarily as a result of
Current wording
amortization of purchase premiums and accretion of purchase discounts, varies primarily as a result of changes in market
Previous wording
changes in market interest rates, the rate at which our distressed assets are liquidated and the prepayment speed of our
Current wording
interest rates, the rate at which our distressed assets are liquidated and the prepayment speed of our performing assets.
Previous wording
performing assets. Interest rates and prepayment speeds vary according to the type of investment, conditions in the
Current wording
Interest rates and prepayment speeds vary according to the type of investment, conditions in the financial markets,
Previous wording
financial markets, competition and other factors, none of which can be predicted with any certainty. Our operating
Current wording
competition and other factors, none of which can be predicted with any certainty. Our operating results may also be
Previous wording
results may also be impacted by changes in our provision for loan losses. Increases in the provision for loan loss are
Current wording
impacted by changes in our provision for loan losses. Increases in the provision for loan loss are primarily driven by a
Previous wording
primarily driven by a deterioration in the contractual performance of a loan. Macroeconomic factors including interest
Current wording
deterioration in the contractual performance of a loan. Macroeconomic factors including interest rates and inflation, as
Previous wording
rates and inflation, as well as supply absorption and cap rate movements, may contribute to a deterioration in a loan’s
Current wording
well as supply absorption and cap rate movements, may contribute to a deterioration in a loan’s contractual performance.
Previous wording
contractual performance. In certain circumstances, the Company may choose to modify a loan which had experienced
Current wording
In certain circumstances, the Company may choose to modify a loan which had experienced financial difficulty due to
Previous wording
financial difficulty due to the factors previously described. Our operating results may also be impacted by our available
Current wording
the factors previously described. Our operating results may also be impacted by our available borrowing capacity,
Previous wording
borrowing capacity, conditions in the financial markets, credit losses in excess of initial estimates or unanticipated credit
Current wording
conditions in the financial markets, credit losses in excess of initial estimates or unanticipated credit events experienced
Previous wording
events experienced by borrowers whose loans are held directly by us or are included in our MBS. Difficult market
Current wording
by borrowers whose loans are held directly by us or are included in our MBS. Difficult market conditions as well as
Previous wording
conditions as well as inflation, energy costs, geopolitical issues, health epidemics and outbreaks of contagious diseases,
Current wording
inflation, energy costs, geopolitical issues, health epidemics and outbreaks of contagious diseases, unemployment and
Previous wording
unemployment and the availability and cost of credit are factors which could also impact our operating results.
Current wording
the availability and cost of credit are factors which could also impact our operating results.
Previous wording
Financing Rate (“SOFR”), which typically resets monthly. As of September 30, 2025, approximately 81% of the loans in
Current wording
Financing Rate (“SOFR”), which typically resets monthly. As of March 31, 2026, approximately 80% of the loans in our
Previous wording
our portfolio were floating rate loans, and 19% were fixed rate loans, based on carrying value.
Current wording
portfolio were floating rate loans, and 20% were fixed rate loans, based on carrying value.
Previous wording
Current market conditions. During thethird quarter, macroeconomic concerns persisted including global market
Current wording
Current market conditions. During thefirst quarter, macroeconomic concerns persisted including global market
Previous wording
further decreases will occur. Although the full impact of these changes remains uncertain and difficult to predict,
Current wording
will occur. Although the full impact of these changes remains uncertain and difficult to predict, concerns and
Previous wording
concerns and uncertainties about the economic outlook may adversely impact our financial condition, results of
Current wording
uncertainties about the economic outlook may adversely impact our financial condition, results of operations and cash
Previous wording
share, dividends declared per share, distributable earnings, return on equity, and net book value per share. As further
Current wording
share, dividends declared per share, distributable earnings, return on equity, and net book value per share. Asfurther
Showing the first 40 of 84 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
IV’s market valuation due to factors such as the illiquid nature of UDF IV’s shares, and a change in our stock price
Current report — wording carried from elsewhere
resources, together with our access to the capital markets, to meet our liquidity needs.
Current report — wording carried from elsewhere
was primarily driven by a discount in UDF IV’s market valuation due to factors such as the illiquid nature of UDF IV’s
Current report — wording carried from elsewhere
offset by net proceeds from secured borrowings.
Current report — wording carried from elsewhere
ratio, and limitations on transactions with affiliates.
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
Madison One, as well as originate and service small business loans through our subsidiary iBusiness
Previous report — wording carried elsewhere
market valuation due to factors such as the illiquid nature of UDF IV’s shares, and a change in our stock price between
Previous report — wording carried elsewhere
by a discount in UDF IV’s market valuation due to factors such as the illiquid nature of UDF IV’s shares, and a change
Previous report — wording carried elsewhere
months ended September 30, 2024 due to certain charge-offs and losses realized on sales of real estate owned assets and
Previous report — wording carried elsewhere
to the capital markets and potentially other balance-sheet actions, such as adjustments to our dividend rate, to meet our
Previous report — wording carried elsewhere
discount in UDF IV’s market valuation due to factors such as the illiquid nature of UDF IV’s shares and a change in our
Previous report — wording carried elsewhere
(4)Non-USD denominated repurchase agreements have been converted into USD for purposes of this disclosure.
Previous report — wording carried elsewhere
and limitations on transactions with affiliates.