Ready Capital Corporation Reports First Quarter 2026 Results

NEW YORK, May 07, 2026 (GLOBE NEWSWIRE) — Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market (“LMM”) investor and owner-occupied commercial real estate loans, today reported financial results for the quarter ended March 31, 2026.

“Our first quarter results reflect ongoing execution of our previously shared balance sheet repositioning plan that focuses on de-levering to generate liquidity in excess of 2026 debt maturities, thereby resetting Ready Capital’s financials for long-term success,” said Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “Year-to-date we have generated $1.4 billion in cash from loan sales and liquidations to facilitate the repayment of $1.1 billion of asset level financing and $184 million of corporate debt. These actions have resulted in a negative impact on earnings and book value, but are necessary to return the Company to profitability. With our remaining large-scale asset sales expected to close by the end of the second quarter, we anticipate the material book value pressure of the recent quarters will begin to subside, leaving a lower-leverage platform positioned to restart growth through our core CRE debt investing and SBA 7(a) lending businesses.”

GAAP loss per common share of $(1.25)

Distributable loss per common share of $(1.00)

Distributable loss per common share before realized losses of $(0.33)

Balance Sheet Repositioning

Generated $1.4 billion in cash year-to-date from loan sales and portfolio runoff, paying down over $1.1 billion in asset-level financing and retiring $184 million of corporate debt

Sold 48 CRE loans totaling $1.0 billion in unpaid principal balance across four transactions (66% performing, 34% non- and sub-performing) for net proceeds after asset-level financing paydowns of $177 million

Retired the 5.75% Senior Unsecured Notes in February 2026 and the 6.20% Senior Unsecured Notes in April 2026, reducing remaining 2026 corporate debt maturities to $450 million

Collapsed the Company’s last remaining CLOs, RCMF 2021-FL7, RCMF 2023-FL11 and RCMF 2023-FL12

Total loan originations of $464 million, including $288 million of LMM commercial real estate loans, $110 million of Small Business Administration 7(a) loans and $28 million of United States Department of Agriculture loans

60+ day core delinquencies increased to 14.8% of the core CRE portfolio at quarter end. The large majority of this increase reflects the impact of loan sales as part of our balance sheet repositioning strategy and aggressive asset management strategies to accelerate liquidations

Book value of $7.43 per share of common stock as of March 31, 2026

Ended the quarter with $200 million in cash and $730 million of unencumbered assets; total leverage of 3.0x with recourse leverage of 1.8x

Sold 43 Ritz-Carlton branded condominium units to date (74% year-to-date) with an additional 4 units under contract or reservation agreement which represents 36% sell out of 132 original inventory

Hotel occupancy increased 5% year-over-year to 46% along with a 1% increase in ADR to $482 resulted in a 13% increase in RevPar to $221

Initiated a sale process for up to $1.2 billion of performing and sub- and non-performing loans as the last phase of the balance sheet repositioning plan

Use of Non-GAAP Financial Information

In addition to the results presented in accordance with U.S. GAAP, this press release includes distributable earnings, formerly referred to as core earnings, which is a non-U.S. GAAP financial measure. The Company defines distributable earnings as net income adjusted for unrealized gains and losses related to certain mortgage backed securities (“MBS”) not retained by us as part of our loan origination business, realized gains and losses on sales of certain MBS, unrealized changes in our current expected credit loss reserve and valuation allowance, unrealized gains or losses on de-designated cash flow hedges, unrealized gains or losses on foreign exchange hedges, unrealized gains or losses on certain unconsolidated joint ventures, non-cash compensation expense related to our stock-based incentive plan, unrealized gains or losses on preferred equity, at fair value, unrealized gain or losses or other non-cash items related to real estate owned and one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses.

The Company believes that this non-U.S. GAAP financial information, in addition to the related U.S. GAAP measures, provides investors greater transparency into the information used by management in its financial and operational decision-making, including the determination of dividends. However, because distributable earnings is an incomplete measure of the Company’s financial performance and involves differences from net income computed in accordance with U.S. GAAP, it should be considered along with, but not as an alternative to, the Company’s net income computed in accordance with U.S. GAAP as a measure of the Company’s financial performance. In addition, because not all companies use identical calculations, the Company’s presentation of distributable earnings may not be comparable to other similarly-titled measures of other companies.

In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains and losses on MBS acquired by the Company in the secondary market but is not adjusted to exclude unrealized gains and losses on MBS retained by Ready Capital as part of its loan origination businesses, where the Company transfers originated loans into an MBS securitization and the Company retains an interest in the securitization. In calculating distributable earnings, the Company does not adjust Net Income (in accordance with U.S. GAAP) to take into account unrealized gains and losses on MBS retained by us as part of the loan origination businesses because the unrealized gains and losses that are generated in the loan origination and securitization process are considered to be a fundamental part of this business and an indicator of the ongoing performance and credit quality of the Company’s historical loan originations. In calculating distributable earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude realized gains and losses on certain MBS securities considered to be non-distributable. Certain MBS positions are considered to be non-distributable due to a variety of reasons which may include collateral type, duration, and size.

Servicing rights relating to the Company’s small business commercial business are accounted for under ASC 860, Transfer and Servicing. In calculating distributable earnings, the Company does not exclude realized gains or losses on commercial MSRs, as servicing income is a fundamental part of Ready Capital’s business and is an indicator of the ongoing performance.

To qualify as a REIT, the Company must distribute to its stockholders each calendar year at least 90% of its REIT taxable income (including certain items of non-cash income), determined without regard to the deduction for dividends paid and excluding net capital gain. There are certain items, including net income generated from the creation of MSRs, that are included in distributable earnings but are not included in the calculation of the current year’s taxable income. These differences may result in certain items that are recognized in the current period’s calculation of distributable earnings not being included in taxable income, and thus not subject to the REIT dividend distribution requirement until future years.

The table below reconciles Net Income computed in accordance with U.S. GAAP to Distributable Earnings.

Three Months EndedMarch 31, 2026

Unrealized gain on joint ventures

Increase in valuation allowance

Non-recurring REO recovery

Unrealized loss on preferred equity, at fair value

Merger transaction costs and other non-recurring expenses

Depreciation and amortization on real estate owned

Realized losses on sale of investments

Distributable loss before realized losses

Realized losses on sale of investments, net of tax

Less: Distributable earnings attributable to non-controlling interests

Less: Income attributable to participating shares

Distributable loss attributable to common stockholders

Distributable loss before realized losses on investments, net of tax per common share – basic and diluted

Distributable loss per common share – basic and diluted

U.S. GAAP return on equity is based on U.S. GAAP net income, while distributable return on equity is based on distributable earnings, which adjusts U.S. GAAP net income for the items in the distributable earnings reconciliation above.

Webcast and Earnings Conference Call

Management will host a webcast and conference call on Friday, May 8, 2026 at 8:30am ET to provide a general business update and discuss the financial results for the quarter ended March 31, 2026. During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.

The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in. The webcast of the conference call will be available in the Investor Relations section of the Company’s website at www.readycapital.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

To Participate in the Telephone Conference Call:

Dial in at least five minutes prior to start time.

Domestic: 1-877-407-0792International: 1-201-689-8263

Domestic: 1-844-512-2921International: 1-412-317-6671Replay Pin #: 13759490

The playback can be accessed through May 22, 2026.

This press release contains statements that constitute “forward-looking statements,” as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, applicable regulatory changes; general volatility of the capital markets; changes in the Company’s investment objectives and business strategy; the availability of financing on acceptable terms or at all; the availability, terms and deployment of capital; the availability of suitable investment opportunities; changes in the interest rates or the general economy; increased rates of default and/or decreased recovery rates on investments; changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of Company’s assets; the degree and nature of competition, including competition for the Company’s target assets; and other factors, including those set forth in the Risk Factors section of the Company’s most recent Annual Report on Form 10-K filed with the SEC, and other reports filed by the Company with the SEC, copies of which are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

About Ready Capital Corporation

Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services lower-to-middle-market investor and owner occupied commercial real estate loans. The Company specializes in loans backed by commercial real estate, including agency multifamily, investor, construction, and bridge as well as U.S. Small Business Administration loans under its Section 7(a) program. Headquartered in New York, New York, the Company employs over 400 professionals nationwide.

Investor Relations Ready Capital Corporation212-257-4666 [email protected]

Additional information can be found on the Company’s website at www.readycapital.com.

READY CAPITAL CORPORATIONUNAUDITED CONSOLIDATED BALANCE SHEETS

Loans, net (including $462 and $737 held at fair value)

Loans, held for sale (including $87,198 and $73,094 held at fair value and net of valuation allowance of $74,315 and $67,612)

Mortgage-backed securities

Investment in unconsolidated joint ventures (including $5,517 and $5,737 held at fair value)

Assets of consolidated VIEs

Securitized debt obligations of consolidated VIEs, net

Accounts payable and other accrued liabilities

Preferred stock Series C, liquidation preference $25.00 per share

Commitments & contingencies

Preferred stock Series E, liquidation preference $25.00 per share

Common stock, $0.0001 par value, 500,000,000 shares authorized, 165,255,559 and 163,010,012 shares issued and outstanding, respectively

Additional paid-in capital

Accumulated other comprehensive loss

Total Ready Capital Corporation equity

Total Stockholders’ Equity

Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity

READY CAPITAL CORPORATIONUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,

(in thousands, except share data)

Net interest income before (provision for) recovery of loan losses

(Provision for) recovery of loan losses

Net interest income (loss) after provision for loan losses

Net realized gain (loss) on financial instruments and real estate owned

Net unrealized gain (loss) on financial instruments

Valuation allowance, loans held for sale

Servicing income, net of amortization and impairment of $6,587 and $5,294

Gain (loss) on bargain purchase

Income (loss) on unconsolidated joint ventures

Total non-interest income (expense)

Employee compensation and benefits

Allocated employee compensation and benefits from related party

Management fees – related party

Transaction related expenses

Total non-interest expense

Loss from continuing operations before benefit for income taxes

Net loss from continuing operations

Loss from discontinued operations before income tax benefit

Net loss from discontinued operations

Less: Dividends on preferred stock

Less: Net income attributable to non-controlling interest

Net loss attributable to Ready Capital Corporation

Earnings per common share from continuing operations – basic

Earnings per common share from discontinued operations – basic

Total earnings per common share – basic

Earnings per common share from continuing operations – diluted

Earnings per common share from discontinued operations – diluted

Total earnings per common share – diluted

Weighted-average shares outstanding

Dividends declared per share of common stock

READY CAPITAL CORPORATIONUNAUDITED SEGMENT REPORTING

Three Months Ended March 31, 2026

LMM Commercial Real Estate

Net interest income (loss) before provision for loan losses

Net interest income (loss) after provision for loan losses

Net realized gain (loss) on financial instruments and real estate owned

Net unrealized gain (loss) on financial instruments

Valuation allowance, loans held for sale

Income on unconsolidated joint ventures

Total non-interest income (loss)

Employee compensation and benefits

Allocated employee compensation and benefits from related party

Management fees – related party

Transaction related expenses

Recovery (impairment) on real estate

Total non-interest expense

Income (loss) before provision for income taxes