8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 4, 2021

READY CAPITAL CORPORATION

(Exact name of registrant as specified in its charter)

Maryland	001-35808	90-0729143
(State or other jurisdiction	(Commission File Number)	(IRS Employer
of incorporation)		Identification No.)

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

(Address of principal executive offices)
(Zip Code)

Registrant's telephone number, including area code: (212) 257-4600

n/a
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ☐

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	RC	New York Stock Exchange
Preferred Stock, 6.25% Series C Cumulative Convertible, par value $0.0001 per share	RC PRC	New York Stock Exchange
Preferred Stock, 6.50% Series E Cumulative Redeemable, par value $0.0001 per share	RC PRD	New York Stock Exchange
7.00% Convertible Senior Notes due 2023	RCA	New York Stock Exchange
6.20% Senior Notes due 2026 5.75% Senior Notes due 2026	RCB RCC	New York Stock Exchange New York Stock Exchange

Item 2.02. Results of Operations and Financial Condition

On November 4, 2021, Ready Capital Corporation (the “Company”) issued an earnings release announcing the financial results for the quarter ended September 30, 2021. A copy of the earnings release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

On November 4, 2021, the Company posted supplemental financial information on the Investor Relations section of its website (www.readycapital.com). A copy of the supplemental financial information is furnished as Exhibit 99.2 hereto and incorporated herein by reference.

The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, unless it is specifically incorporated by reference therein.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

1,
Exhibit No.	Description
99.1	Earnings Release, dated November 4, 2021
99.2	Supplemental Financial Information for the quarter ended September 30, 2021
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

READY CAPITAL CORPORATION
By:	/s/ Andrew Ahlborn
	Name:  Andrew Ahlborn
	Title:   Chief Financial Officer

Date: November 4, 2021

EX-99.1

Exhibit 99.1

READY CAPITAL CORPORATION REPORTS THIRD QUARTER 2021 RESULTS

- GAAP EARNINGS PER COMMON SHARE OF $0.61 -

- DISTRIBUTABLE EARNINGS PER COMMON SHARE OF $0.64 -

- DISTRIBUTABLE RETURN ON AVERAGE STOCKHOLDERS’ EQUITY OF 17.3% -

New York, New York, November 4, 2021 / PRNewswire / – Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services small-to-medium balance commercial loans, today reported financial results for the quarter ended September 30, 2021.

“The strength of originations and earnings from the first half of the year continued to accelerate through the third quarter. The quarter over quarter growth in Distributable Earnings reflects the evolution of our business, driven by increased scale, expanded capabilities and an attractive economic climate,” commented Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “Our focus on providing life-cycle financing to small balance commercial properties continues to differentiate Ready Capital from the peer group and our diverse platform continues to produce attractive returns for our shareholders.”

Third Quarter Highlights

● Declared and paid dividend of $0.42 per share in cash with Distributable Earnings coverage of the dividend at 1.5x

● Total investments of $2.3 billion, including $1.2 billion in SBC originations and acquisitions, $1.0 billion of residential mortgage loans, and $138.3 million of U.S. Small Business Administration 7(a) loans

● Total year-to-date investment activity of $6.8 billion, 67% year-over-year growth

● Adjusted net book value of $15.06 per share of common stock as of September 30, 2021, 1.5% year-over-year growth

● Completed the Company’s sixth CRE CLO with $652.5 million of transitional loans securitized at an 83% advance rate and weighted average cost of 1.3%

Subsequent Events

● Issued $350 million of 4.5% Senior Secured Notes to retire $180 million of 7.5% Senior Secured Notes due February 2022 and for reinvestment into the Company’s investment pipeline

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”), realized gains and losses on sales of certain MBS, unrealized gains and losses related to residential mortgage servicing rights, unrealized current non-cash provision for credit losses on accrual loans and one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, merger related expenses, or other one-time items.

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.

In addition, in calculating Distributable Earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains or losses on residential MSRs, held at fair value.  The Company treats its commercial MSRs and residential MSRs as two separate classes based on the nature of the underlying mortgages and the treatment of these assets as two separate pools for risk management purposes.  Servicing rights relating to the Company’s small business commercial business are accounted for under ASC 860, Transfer and Servicing, while the Company’s residential MSRs are accounted for under the fair value option under ASC 825, Financial Instruments.  In calculating Distributable Earnings, the Company does not exclude realized gains or losses on either commercial MSRs or residential MSRs, held at fair value, 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.

(in thousands)	Three Months Ended September 30, 2021
Net Income	$	46,535
Reconciling items:
Unrealized gain on mortgage servicing rights		(147)
Impact of ASU 2016-13 on accrual loans		(1,329)
Non-recurring REO impairment		(10)
Merger transaction costs and other non-recurring expenses		5,485
Total reconciling items	$	3,999
Income tax adjustments		(1,169)
Distributable earnings	$	49,365
Less: Distributable earnings attributable to non-controlling interests		802
Less: Income attributable to participating shares		2,444
Distributable earnings attributable to common stockholders	$	46,119
Distributable Earnings per common share - basic and diluted	$	0.64

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, November 5, 2021 at 8:30 am ET to provide a general business update and discuss the financial results for the quarter ended September 30, 2021.

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, access the site at least 15 minutes prior to the scheduled start time in order to register and 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: 1-877-407-0792

International: 1-201-689-8263

Conference Call Playback:

Domestic: 1-844-512-2921

International: 1-412-317-6671

Replay Pin #: 13724143

The playback can be accessed through November 19, 2021.

Safe Harbor Statement

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 small-to-medium balance commercial loans. Ready Capital specializes in loans backed by commercial real estate, including agency multi-family, investor and bridge as well as SBA 7(a) business loans. Headquartered in New York, New York, Ready Capital employs over 500 lending professionals nationwide. The company is externally managed and advised by Waterfall Asset Management, LLC.

Contact

Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com

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

READY CAPITAL CORPORATION

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In Thousands)	September 30, 2021		December 31, 2020
Assets
Cash and cash equivalents	$	209,769	$	138,975
Restricted cash		52,692		47,697
Loans, net (including $12,162 and $13,795 held at fair value)		2,384,497		1,550,624
Loans, held for sale, at fair value		549,917		340,288
Paycheck Protection Program loans (including $9,873 and $74,931 held at fair value)		1,784,826		74,931
Mortgage backed securities, at fair value		117,681		88,011
Loans eligible for repurchase from Ginnie Mae		149,723		250,132
Investment in unconsolidated joint ventures		125,547		79,509
Purchased future receivables, net		6,567		17,308
Derivative instruments		6,180		16,363
Servicing rights (including $107,589 and $76,840 held at fair value)		171,106		114,663
Real estate owned, held for sale		70,643		45,348
Other assets		196,827		89,503
Assets of consolidated VIEs		3,438,423		2,518,743
Total Assets	$	9,264,398	$	5,372,095
Liabilities
Secured borrowings		2,044,069		1,294,243
Paycheck Protection Program Liquidity Facility (PPPLF) borrowings		1,945,883		76,276
Securitized debt obligations of consolidated VIEs, net		2,676,265		1,905,749
Convertible notes, net		112,966		112,129
Senior secured notes, net		179,914		179,659
Corporate debt, net		333,975		150,989
Guaranteed loan financing		348,774		401,705
Contingent consideration		12,400		—
Liabilities for loans eligible for repurchase from Ginnie Mae		149,723		250,132
Derivative instruments		—		11,604
Dividends payable		33,564		19,746
Accounts payable and other accrued liabilities		189,194		135,655
Total Liabilities	$	8,026,727	$	4,537,887
Preferred stock Series C, liquidation preference $25.00 per share		8,361		—
Commitments & contingencies
Stockholders’ Equity
Preferred stock Series E, liquidation preference $25.00 per share		111,378		—
Common stock, $0.0001 par value, 500,000,000 shares authorized, 72,919,824 and 54,368,999 shares issued and outstanding, respectively		7		5
Additional paid-in capital		1,115,471		849,541
Retained earnings (deficit)		(10,395)		(24,203)
Accumulated other comprehensive income (loss)		(6,276)		(9,947)
Total Ready Capital Corporation equity		1,210,185		815,396
Non-controlling interests		19,125		18,812
Total Stockholders’ Equity	$	1,229,310	$	834,208
Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity	$	9,264,398	$	5,372,095

READY CAPITAL CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended September 30,				Nine Months Ended September 30,
(In Thousands, except share data)	2021		2020		2021		2020
Interest income	$	105,136	$	61,074	$	281,554	$	193,826
Interest expense		(50,136)		(43,823)		(156,312)		(134,162)
Net interest income before provision for loan losses	$	55,000	$	17,251	$	125,242	$	59,664
Recovery of (provision for) loan losses		(1,579)		4,231		(7,088)		(34,984)
Net interest income after recovery of (provision for) loan losses	$	53,421	$	21,482	$	118,154	$	24,680
Non-interest income
Residential mortgage banking activities		37,270		75,524		115,369		192,757
Net realized gain on financial instruments and real estate owned		23,210		7,507		49,239		22,118
Net unrealized gain (loss) on financial instruments		5,688		3,420		31,296		(43,762)
Servicing income, net of amortization and impairment of $2,798 and $7,344 for the three and nine months ended September 30, 2021, and $1,555 and $4,556 for three and nine months ended September 30, 2020, respectively		10,243		10,115		37,806		27,193
Income on purchased future receivables, net of allowance for (recovery of) doubtful accounts of ($279) and $1,260 for the three and nine months ended September 30, 2021, and $2,888 and $9,805 for three and nine months ended September 30, 2020, respectively		2,838		4,848		7,934		13,917
Income (loss) on unconsolidated joint ventures		3,548		1,996		6,100		(1,035)
Other income		5,674		4,496		5,557		40,163
Total non-interest income	$	88,471	$	107,906	$	253,301	$	251,351
Non-interest expense
Employee compensation and benefits		(24,537)		(27,612)		(71,584)		(73,836)
Allocated employee compensation and benefits from related party		(3,804)		(2,250)		(9,226)		(4,750)
Variable expenses on residential mortgage banking activities		(24,380)		(30,918)		(61,286)		(87,494)
Professional fees		(6,900)		(4,158)		(12,754)		(8,632)
Management fees – related party		(2,742)		(2,714)		(8,061)		(7,941)
Incentive fees – related party		(2,775)		(1,134)		(3,061)		(4,640)
Loan servicing expense		(8,124)		(8,231)		(21,079)		(24,122)
Transaction related expenses		(2,629)		(6)		(10,202)		(63)
Other operating expenses		(12,926)		(10,448)		(45,600)		(41,927)
Total non-interest expense	$	(88,817)	$	(87,471)	$	(242,853)	$	(253,405)
Income before provision for income taxes		53,075		41,917		128,602		22,626
Income tax provision		(6,540)		(6,554)		(22,216)		(4,116)
Net income	$	46,535	$	35,363	$	106,386	$	18,510
Less: Dividends on preferred stock		1,999		—		5,504		—
Less: Net income attributable to non-controlling interest		756		805		1,859		551
Net income attributable to Ready Capital Corporation	$	43,780	$	34,558	$	99,023	$	17,959
Earnings per common share - basic	$	0.61	$	0.63	$	1.47	$	0.32
Earnings per common share - diluted	$	0.60	$	0.63	$	1.46	$	0.31
Weighted-average shares outstanding
Basic		71,618,168		54,626,995		66,606,749		53,534,497
Diluted		71,787,228		54,704,611		66,768,918		53,612,113
Dividends declared per share of common stock	$	0.42	$	0.30	$	1.24	$	0.95

READY CAPITAL CORPORATION

UNAUDITED SEGMENT REPORTING

	Three Months Ended September 30, 2021
					Small		Residential
			SBC		Business		Mortgage		Corporate-
(In Thousands)	Acquisitions		Originations		Lending		Banking		Other		Consolidated
Interest income	$	18,954	$	55,230	$	28,739	$	2,213	$	—	$	105,136
Interest expense		(11,951)		(29,300)		(6,511)		(2,374)		—		(50,136)
Net interest income before provision for loan losses	$	7,003	$	25,930	$	22,228	$	(161)	$	—	$	55,000
Recovery of (provision for) loan losses		1,217		(2,774)		(22)		—		—		(1,579)
Net interest income after recovery of (provision for) loan losses	$	8,220	$	23,156	$	22,206	$	(161)	$	—	$	53,421
Non-interest income
Residential mortgage banking activities	$	—	$	—	$	—	$	37,270	$	—	$	37,270
Net realized gain on financial instruments and real estate owned		4,699		4,192		14,319		—		—		23,210
Net unrealized gain on financial instruments		1,211		4,256		74		147		—		5,688
Servicing income, net		—		998		1,497		7,748		—		10,243
Income on purchased future receivables, net		—		—		2,838		—		—		2,838
Income on unconsolidated joint ventures		2,506		1,042		—		—		—		3,548
Other income		1,167		2,778		1,696		31		2		5,674
Total non-interest income	$	9,583	$	13,266	$	20,424	$	45,196	$	2	$	88,471
Non-interest expense
Employee compensation and benefits		—		(7,034)		(10,716)		(5,399)		(1,388)		(24,537)
Allocated employee compensation and benefits from related party		(383)		—		—		—		(3,421)		(3,804)
Variable expenses on residential mortgage banking activities		—		—		—		(24,380)		—		(24,380)
Professional fees		(411)		(782)		(582)		(1,534)		(3,591)		(6,900)
Management fees – related party		—		—		—		—		(2,742)		(2,742)
Incentive fees – related party		—		—		—		—		(2,775)		(2,775)
Loan servicing expense		(1,694)		(2,640)		(426)		(3,364)		—		(8,124)
Transaction related expenses		—		—		—		—		(2,629)		(2,629)
Other operating expenses		(1,108)		(3,969)		(4,139)		(1,908)		(1,802)		(12,926)
Total non-interest expense	$	(3,596)	$	(14,425)	$	(15,863)	$	(36,585)	$	(18,348)	$	(88,817)
Income (loss) before provision for income taxes	$	14,207	$	21,997	$	26,767	$	8,450	$	(18,346)	$	53,075
Total assets	$	1,249,569	$	4,546,757	$	2,462,862	$	570,236	$	434,974	$	9,264,398

READY CAPITAL CORPORATION

UNAUDITED SEGMENT REPORTING

	Nine Months Ended September 30, 2021
					Small		Residential
			SBC		Business		Mortgage		Corporate-
(In Thousands)	Acquisitions		Originations		Lending		Banking		Other		Consolidated
Interest income	$	53,919	$	141,040	$	80,304	$	6,291	$	—	$	281,554
Interest expense		(36,206)		(81,402)		(29,698)		(6,997)		(2,009)		(156,312)
Net interest income before provision for loan losses	$	17,713	$	59,638	$	50,606	$	(706)	$	(2,009)	$	125,242
Recovery of (provision for) loan losses		2,405		(9,032)		(461)		—		—		(7,088)
Net interest income after recovery of (provision for) loan losses	$	20,118	$	50,606	$	50,145	$	(706)	$	(2,009)	$	118,154
Non-interest income
Residential mortgage banking activities	$	—	$	—	$	—	$	115,369	$	—	$	115,369
Net realized gain on financial instruments and real estate owned		465		14,992		33,782		—		—		49,239
Net unrealized gain on financial instruments		8,240		9,197		3,055		10,804		—		31,296
Servicing income, net		—		2,520		12,966		22,320		—		37,806
Income on purchased future receivables, net		—		—		7,934		—		—		7,934
Income on unconsolidated joint ventures		5,058		1,042		—		—		—		6,100
Other income (loss)		3,240		5,602		(3,454)		84		85		5,557
Total non-interest income	$	17,003	$	33,353	$	54,283	$	148,577	$	85	$	253,301
Non-interest expense
Employee compensation and benefits	$	—	$	(13,580)	$	(26,097)	$	(29,114)	$	(2,793)	$	(71,584)
Allocated employee compensation and benefits from related party		(926)		—		—		—		(8,300)		(9,226)
Variable expenses on residential mortgage banking activities		—		—		—		(61,286)		—		(61,286)
Professional fees		(1,306)		(1,725)		(1,930)		(1,929)		(5,864)		(12,754)
Management fees – related party		—		—		—		—		(8,061)		(8,061)
Incentive fees – related party		—		—		—		—		(3,061)		(3,061)
Loan servicing expense		(4,829)		(7,968)		(468)		(7,814)		—		(21,079)
Transaction related expenses		—		—		—		—		(10,202)		(10,202)
Other operating expenses		(4,958)		(11,718)		(19,209)		(6,325)		(3,390)		(45,600)
Total non-interest expense	$	(12,019)	$	(34,991)	$	(47,704)	$	(106,468)	$	(41,671)	$	(242,853)
Income (loss) before provision for income taxes	$	25,102	$	48,968	$	56,724	$	41,403	$	(43,595)	$	128,602
Total assets	$	1,249,569	$	4,546,757	$	2,462,862	$	570,236	$	434,974	$	9,264,398

EX-99.2

Exhibit 99.2

SUPPLEMENTAL FINANCIAL DATA Q3 2021

2 Disclaimer This presentation 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; Ready Capital Corporation (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 those set forth in the Risk Factors section of the 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. This presentation includes certain non-GAAP financial measures, including Distributable earnings. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures in accordance with GAAP. Please refer to the Appendix for the most recent GAAP information. This presentation also contains market statistics and industry data which are subject to uncertainty and are not necessarily reflective of market conditions. These have been derived from third party sources and have not been independently verified by the Company or its affiliates. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. All data is as of September 30, 2021, unless otherwise noted.

3 Third Quarter 2021 Results .. Net income of $46.5 million1, or $0.61 per common share .. Distributable earnings of $49.4 million1, or $0.64 per common share .. Declared dividend of $0.42 per common share Earnings / Dividends .. Return on Equity2 of 16.3% .. Distributable Return on Equity3 of 17.3% .. Dividend Yield4 of 11.6% Returns .. CRE originations and acquisitions of $1.2 billion .. SBA loan originations of $138.3 million .. Residential mortgage loan originations of $1.0 billion Loan Originations5 / Acquisitions .. Adjusted net book value6 of $15.06 per common share .. Recourse leverage ratio of 2.2x consisting of 1.5x of warehouse credit facilities and borrowings under repurchase agreements, 0.5x of corporate debt and 0.2x of agency secured borrowings Balance Sheet 1. Before dividends on preferred securities and inclusive of non-controlling interest 2. Return on Equity is an annualized percentage equal to quarterly net income over the average monthly total stockholders’ equity for the period 3. Distributable Return on Equity is an annualized percentage equal to Distributable earnings over the average monthly total stockholders’ equity for the period. Refer to the “Distributable Earnings Reconciliation” slide for a reconciliation of GAAP Net Income to Distributable Earnings 4. Q3 Dividend yield for the period based on the 09/30/2021 closing share price of $14.43 5. Represents fully committed amounts 6. Excludes the equity component of our 2017 convertible note issuance

4 Third Quarter 2021 Results (continued) .. Total liquidity of $341 million(1) including cash, anticipated warehouse advances, principal and interest receivable from servicers, and anticipated proceeds from available-for-sale assets Current Liquidity .. Closed $652.5 million commercial mortgage collateralized loan obligation with the limited right to acquire all or part of $87.8 million in future funding .. Closed a private placement of $350.0 million in aggregate principal amount of 4.5% Senior Secured Notes due 2026. The Company used a portion of the net proceeds to redeem all the outstanding 7.5% Senior Secured Notes due 2022. Capital Markets .. Surpassed $1 billion in SBA 7(a) loans and has grown to become the second largest non-bank SBA lender in the US SBA 7(a) .. Acquired Red Stone, a privately owned real estate finance and investment company that provides innovative financial products and services to the multifamily affordable housing industry. Red Stone Acquisition 1. Liquidity balance as of October 25, 2021

5 Return on Equity 1. Levered yield includes interest income, accretion of discount, MSR creation, income from unconsolidated joint ventures, realized gains (losses) on loans held for sale, unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization of deferred financing costs on an annualized basis. 2. GAAP ROE is based on GAAP Net Income, while Distributable ROE is based on Distributable Earnings, which adjusts GAAP Net Income for certain items detailed on the “Distributable Earnings Reconciliation” slide. 3. ROE based on net income before tax of the Residential Mortgage Banking business line divided by the business line’s average monthly equity. Segment Loan Acquisitions 10.2 % 10.2 % 26.3 % SBC Originations 13.2 % 13.2 % 63.0 % Small Business Lending 76.1 % 76.1 % 6.3 % Residential Mortgage Banking (3) 46.7 % 45.9 % 4.4 % 5.1 2.6 5.1 3.1 22.9 % 21.0 % 22.9 % 22.7 % 6.6 2.4 6.6 2.4 (0.6) (2.0) (1.1) (0.5) 6.5 4.8 6.5 4.8 (1.0) (0.9) - - (13.0) (10.6) (12.1) (10.3) (2.0) (1.0) (2.0) (1.0) (2.4) (2.5) (2.8) (3.1) Dividends on preferred stock (0.7) (1.2) (0.7) (1.2) 16.3 % 10.0 % 17.3 % 13.8 % GAAP ROE (2) Distributable ROE (2) Levered Yield (1) Distributable Levered Yield (1) Equity Allocation Q3'21 Q2'21 Q3'21 Q2'21 Corporate leverage, net of non-earning assets 19.6 18.4 % 17.8 % Return on equity Gross return on equity Realized & unrealized gains, net Non-recurring gains, losses and expenses Investment advisory fees Provision for income taxes Loan loss provision PPP revenue, net of direct expenses Operating expenses 17.8 % %

6 SBC Investment by Product Type $82.9 $65.0 $50.2 $145.7 $138.3 $17.0 $6.0 $53.6 $104.9 $105.6 $132.1 $164.4 $240.5 $135.5 $16.9 $243.2 $652.8 $807.2 $730.4 $15.8 $140.2 $168.0 $31.5 $0 $100 $200 $300 $400 $500 $600 $700 $800 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 SBA Fixed Rate Freddie Mac Transitional Acquired Lot Loans 1. Origination volumes are based on fully committed amounts 2. Originations include $31.5M of Lot Loans HISTORICAL GROWTH1 2

7 SBC Originations • Freddie Mac loan originations of $135.5 million driven by continued low rates averaging 3.7% o Current money up pipeline of $116.6 million, including $16.2 million funded in October • CRE originations of $1.0 billion3 closed in the quarter o Current money up pipeline of $729.5 million, including $250.4 million funded in October 1. $ in millions, as of quarter end. 2. Represents fixed rate loans that have been securitized. 3. Represents fully committed amounts. 4. Calculated on unpaid principal balance 5. Includes interest income, accretion of discount, and servicing income net of interest expense and amortization of deferred financing costs. 6. Includes realized and unrealized gains (losses) on loans held for sale and MSR creation. CURRENT QUARTER HIGHLIGHTS GROSS LEVERED YIELD 11.5% 12.0% 11.2% 11.1% 10.7% 2.5% 2.5% 2.9% 2.9% 2.5% 0% 5% 10% 15% 20% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Gross Levered Yield (ex. Gains) Gains on Loans, held for sale SEGMENT SNAPSHOT 5 6

8 Small Business Lending • SBA 7(a) loans originations of $138.3 million o Current money up pipeline of $212.4 million, including $30.4 million funded in October • SBA net sales premiums peaking at 15.9% and averaging 12.1%, net o 6.9% of SBA sales sold below market • After-tax PPP income was $13.3 million 1. $ in millions, as of quarter end. 2. Calculated on unpaid principal balance and excludes assets offset by guaranteed loan financing liabilities 3. Includes interest income, accretion of discount, and servicing income net of interest expense and amortization of deferred financing costs. 4. Includes realized and unrealized gains (losses) on loans held for sale and MSR creation. CURRENT QUARTER HIGHLIGHTS GROSS LEVERED YIELD 21.4% 28.4% 37.0% 18.6% 20.7% 37.6% 34.6% 50.4% 80.6% 55.4% 0% 20% 40% 60% 80% 100% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Gross Levered Yield (ex. Gains) Gains on Loans, held for sale SEGMENT SNAPSHOT 3 4

9 Loan Acquisitions • Current acquisition pipeline of $347 million • Loan acquisitions of $168.0 million comprised of 49 loans with an advance rate of 63%, expected levered yield of 15.3%, and weighted average LTV of 58%. 1. Excludes joint venture investments. 2. $ in millions, as of quarter end. 3. Represents fixed rate loans that have been securitized. 4. Calculated on unpaid principal balance 5. Includes interest income, accretion of discount, and servicing income net of interest expense and amortization of deferred financing costs. 6. Includes realized and unrealized gains (losses) on loans held for sale and MSR creation. CURRENT QUARTER HIGHLIGHTS GROSS LEVERED YIELD 10.3% 10.4% 8.8% 9.2% 8.5% 3.4% 5.2% -1.2% 2.7% 1.7% -5% 0% 5% 10% 15% 20% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Income on joint venture investments and Gains on loans, held for sale Gross Levered Yield (ex. Income on joint venture investments and Gains on loans, held for sale) 5 6 SEGMENT SNAPSHOT

10 • Originations of $1.0 billion • Recapture rates of 32% • Average margin of 92 bps for the quarter, leveling off at 84 bps at quarter end 1. $ in millions. Represents activity during the quarter. CURRENT QUARTER HIGHLIGHTS MSR PORTFOLIO (UPB IN $ BILLIONS) $9.1 $9.5 $9.9 $10.4 $10.7 $8.0 $8.5 $9.0 $9.5 $10.0 $10.5 $11.0 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 SEGMENT SNAPSHOT Residential Mortgage Banking Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Fair Value ($mm) $74.4 $76.8 $98.5 $100.8 $107.6

11 Diversified, Complementary, & Scalable Platforms 14% 13% 37% 2% 28% 6% Acquisitions SBC Originations - Fixed rate SBC Originations - Bridge SBC Originations - Freddie Mac Small Business Lending Residential Mortgage Banking PORTFOLIO BREAKDOWN1 REVENUE BREAKDOWN2 $11,054 $3,924 $22,157 $8,104 $37,703 $20,733 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Acquisitions SBC Originations - Fixed rate SBC Originations - Bridge SBC Originations - Freddie Mac Small Business Lending Residential Mortgage Banking 1. Assets include loans, MBS, servicing assets, JV investments, real estate owned, and purchased future receivables. 2. Based on QTD Distributable Earnings. Distributable earnings includes interest income, accretion of discount, MSR creation, income from unconsolidated joint ventures, realized gains (losses) on loans held for sale, unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization of deferred financing costs on an annualized basis.

12 Loan Portfolio Composition 12 1. As a percent of unpaid principal balance 2. Excludes loans held-for-sale, at fair value COLLATERAL TYPE SBA COLLATERAL TYPE LIEN POSITION 19% 12% 7% 5% 4% 53% Lodging Offices of Physicians Child Day Care Services Eating Places Gasoline Service Stations Other 44% 13% 10% 10% 9% 14% Multi-family Retail SBA Office Mixed Use Other GEOGRAPHIC LOCATION 16% 16% 8% 8% 8% 44% California Texas Florida New York Georgia Other 99.1% 0.9% First Mortgage Subordinated Mortgage As of September 30, 20211, 2

13 Current Expected Credit Losses • Total ending Q2 2021 allowance reserves of $50.0 million representing 1.0% of loan balances • Total ending Q3 2021 allowance reserves of $49.5 million representing 0.9% of loan balances • Net recovery of $0.5 million across our loan portfolios during the quarter: • Originated Fixed Rate loans: Reduction in pooled reserves due to stabilizing assumptions, and a lower weighted average maturity of portfolio. • Originated Transitional loans: Incremental pooled reserves attributable to new loan originations in Q3 and increase in certain specific reserves, offset by stabilizing assumptions. • Acquired loans: Reduction in reserves attributable to liquidations and stabilizing assumptions. • Small Business loans (7(a)): Reduction in reserves attributable to liquidations and stabilizing assumptions. (In Thousands) Originated SBC loans Originated Transitional loans Acquired loans Acquired SBA 7(a) loans Originated SBA 7(a) loans Originated Residential Agency loans Total held-for- investment loans Beginning balance 7,980 21,201 7,098 3,975 9,375 — 49,629 Provision for loan losses (1,029) 3,944 (1,217) (210) 232 — 1,720 Charge-offs — — (26) (464) (938) — (1,428) Recoveries — — (703) 29 — — (674) Ending balance 6,951 25,145 5,152 3,330 8,669 — 49,247 Allowance on unfunded commitments — 86 — — 133 — 219 Ending balance 6,951 25,231 5,152 3,330 8,802 — 49,466 Loan balance 1,056,936 3,191,008 977,943 197,097 391,200 3,173 5,817,357 % of Loan balance 0.7% 0.8% 0.5% 1.7% 2.3% 0.0% 0.9%

14 Loan Portfolio – Risk Rating BUCKET 1: Very Low Risk of Loss: New origination or current with strong credit metrics (LTV/DSCR/DY). No expected losses. BUCKET 2: Low Risk of Loss: Current with maturity > 6 months. Lower credit metrics with possibility of inclusion on CREFC watchlist. No expected losses. BUCKET 3: Medium Risk of Loss: Current with near term maturities or in forbearance. Loss unlikely with no specific reserves booked. BUCKET 4: Higher Risk: Loan delinquent or in maturity default. Potential issues with sponsor or business plans. Minimal losses possible and adequately reserved in current period. BUCKET 5: Highest risk: Loan in default or special servicing. Specific losses identified and adequately reserved for in current period. 56% 28% 7% 5% 4% CREDIT QUALITY INDICATORS 1. Commercial real estate portfolio only 2. As a percent of unpaid principal balance 3. Excludes loans held-for-sale, at fair value CRITERIA As of September 30, 20211, 2, 3

18% 18% 15% 13% 13% 2% 3% 2% 3% 3% 2% 1% 1% 7% 7% 7% 6% 6% 26% 30% 44% 49% 47% 46% 42% 30% 28% 31% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Funding Mix Securitized debt oblications Credit faciities and repurchase agreements Senior secured notes and Corporate debt Convertible senior notes Preferred Equity Common Stockholders Equity 15 Capital Structure • Current cash and available liquidity of $341 million • Closed $652.5 million commercial mortgage collateralized loan obligation with the limited right to acquire all or part of $87.8 million in future funding with an advance rate of 83% and a weighted average cost of 1.3% • Closed a private placement of $350.0 million in aggregate principal amount of 4.5% Senior Secured Notes due 2026. The Company used the net proceeds to redeem all the outstanding 7.5% Senior Secured Notes due 2022. HISTORICAL CAPITAL STRUCTURE LIQUIDITY UPDATE Total Debt & Eqty ($M) $4,502 $4,553 $7,233 $8,222 $8,531

16 Financing and Leverage 2.0x 2.2x 2.3x 1.8x 2.2x 4.5x 4.5x 5.1x 5.4x 5.9x 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Recourse Total HISTORICAL LEVERAGE $ in millions Total debt-to-equity ratio Secured borrowings (warehouse credit facilities and borrowings under repo transactions) $ 1,950 Secured borrowings (ANH warehouse credit facilities and borrowings under repo transactions) 94 Paycheck Protection Program Liquidity Facility 1,946 Securitized debt obligations 2,676 Senior secured notes and corporate bonds 514 Convertible notes 113 Total debt $ 7,293 Total stockholders' equity $ 1,229 Total debt-to-equity ratio 5.9 Total recourse debt-to-equity ratio Total debt $ 7,293 Less: Securitized debt obligations (2,676) Less: Paycheck Protection Program Liquidity Facility (1,946) Total recourse debt $ 2,671 Total stockholders' equity $ 1,229 Total recourse debt-to-equity ratio 2.2 September 2021

17 Credit and Repurchase Facilities 1. Commitment size is €200.0 million and has been converted for purposes of this disclosure.. $ in thousands Lender Asset Class Maturity Pricing JPMorgan Acquired loans, SBA loans August 2022 1M L + 2.5% to 2.875% $ 200,000 $ 46,307 $ 153,693 Keybank Freddie Mac loans February 2022 SOFR + 1.41% 100,000 13,268 86,732 East West Bank SBA loans October 2022 Prime - 0.821% to + 0.00% 75,000 50,201 24,799 Credit Suisse(1) Acquired loans (non USD) December 2021 Euribor + 2.50% to 3.00% 231,600 40,250 191,350 GMFS facilities Residential loans Oct-2021 - Sept-2022 Various 370,000 268,892 101,108 GMFS - MSR Residential MSRs September 2023 1M L + 2.50% 50,000 49,400 600 Other - various Various Oct-2023 - Aug-2050 Various 122,770 23,616 99,154 $ 1,149,370 $ 491,934 $ 657,436 Citibank Fixed rate, Transitional, Acquired loans October 2021 1M L + 2.00% to 3.00% $ 500,000 $ 110,773 $ 389,227 Deutsche Bank Fixed rate, Transitional loans November 2021 3M L + 2.00% to 2.40% 350,000 225,974 124,026 Credit Suisse Fixed rate, Transitional, Acquired loans May 2022 1M L + 2.00% to 2.35% 500,000 184,892 315,108 Credit Suisse Residential loans December 2021 L + 3.00% 100,000 60,390 39,610 JPMorgan Transitional loans November 2022 1M L + 2.00% to 2.75% 700,000 636,171 63,829 Performance Trust Acquired loans March 2024 1M T + 2.00% 174,000 84,419 89,581 Various MBS Oct-2021 Various 249,516 249,516 - $ 2,573,516 $ 1,552,135 $ 1,021,381 Total Secured Borrowings $ 3,722,886 $ 2,044,069 $ 1,678,817 Available Capacity Facility Size Borrowings under repurchase agreements Total borrowings under repurchase agreements Total borrowings under credit facilities Borrowings under credit facilities Carrying Value

18 Financial Snapshot 1. Average carrying value includes average quarterly carrying value of loan and servicing asset balances 2. Gross yields include interest income, accretion of discount, MSR creation, income from our unconsolidated joint venture, realized gains (losses) on loans held for sale, unrealized gains (losses) on loans held for sale and servicing income net of interest expense and amortization of deferred financing costs on an annualized basis. 3. The Company finances the assets included in the Investment Type through securitizations, repurchase agreements, warehouse facilities and bank credit facilities. Interest expense is calculated based on interest expense and deferred financing amortization for the quarter ended 9/30/2021 on an annualized basis. 4. Excludes loans, held for sale, at fair value 5. Excludes the equity component of our 2017 convertible note issuance. 6. Q3 Dividend yield for the period based on the 09/30/2021 closing share price of $14.43 ($ in thousands, except per share data) % Fixed vs Floating Rate 32% / 68% % Originated vs Acquired 79% / 21% Weighted Average LTV - SBC originations 66% Weighted Average LTV - SBA 83% Weighted Average LTV - Acquired 41% Loan Portfolio Metrics (4) SBA servicing rights - UPB $ 813,089 SBA servicing rights- carrying value $ 21,205 Freddie Mac servicing rights - UPB $ 4,043,989 Freddie Mac servicing rights - carrying value $ 42,312 Residential servicing rights - UPB $ 10,726,160 Residential servicing rights - carrying value $ 107,589 Servicing Portfolio Metrics Common Stockholders' equity $ 1,098,807 Common Stockholders' equity (adjusted)(5) $ 1,098,059 Total Common Shares outstanding 72,919,824 Net Book Value per Common Share $ 15.07 Adjusted Net Book Value per Common Share $ 15.06 Book Equity Value Metrics Net income | Distributable earnings $46,535 | $49,365 Earnings per share - Basic and diluted $0.61 | $0.60 Distributable Earnings per share - Basic and diluted $0.64 Return on Equity per Common Share 16.3% Distributable Return on Equity per Common Share 17.3% Dividend Yield (6) 11.6% Q3 2021 Earnings Data Metrics

APPENDIX Additional Financial Information

20 Balance Sheet by Quarter (In Thousands) Assets Cash and cash equivalents $ 149,847 $ 138,975 $ 308,428 $ 200,723 $ 209,769 Restricted cash   46,204   47,697   62,961   57,118   52,692 Loans, net   1,286,935   1,550,624   1,611,826   2,222,284   2,384,497 Loans, held for sale, at fair value   348,719   340,288   473,078   470,184   549,917 Payment protection program loans, net 106,204 74,931 1,292,808 2,178,586 1,784,826 Mortgage backed securities, at fair value   90,427   88,011   682,948   260,110   117,681 Loans eligible for repurchase from Ginnie Mae 237,542 250,132 221,464 173,437 149,723 Investment in unconsolidated joint ventures 69,204 79,509 75,048 86,994 125,547 Purchased future receivables, net 16,659 17,308 13,240 7,213 6,567 Derivative instruments   20,849   16,363   12,529   6,600   6,180 Servicing rights   110,045   114,663   138,941   145,265   171,106 Real estate owned, held for sale 45,063 45,348 73,454 71,267 70,643 Other assets   98,614   89,503   151,503   120,214   196,827 Assets of consolidated VIEs 2,691,198 2,518,743 2,898,727 2,976,897 3,438,423 Total Assets $ 5,317,510 $ 5,372,095 $ 8,016,955 $ 8,976,892 $ 9,264,398 Liabilities Secured borrowings   1,071,616   1,294,243   2,064,785   1,703,034   2,044,069 Paycheck Protection Program Liquidity Facility (PPPLF) borrowings 105,005 76,276 1,132,536 2,286,624 1,945,883 Securitized debt obligations of consolidated VIEs, net   2,059,114   1,905,749   2,211,923   2,309,217   2,676,265 Convertible notes, net 111,855 112,129 112,405 112,684 112,966 Senior secured notes and Corporate debt, net   330,230   330,648   513,061   513,494   513,889 Guaranteed loan financing   421,183   401,705   386,036   363,955   348,774 Contingent consideration — — — — 12,400 Liabilities for loans eligible for repurchase from Ginnie Mae 237,542 250,132 221,464 173,437 149,723 Derivative instruments   7,774   11,604   4,403   3,717   — Dividends payable   16,934   19,746   9,631   33,968   33,564 Accounts payable and other accrued liabilities   132,087   135,655   162,465   180,018   189,194 Total Liabilities $ 4,493,340 $ 4,537,887 $ 6,818,709 $ 7,680,148 $ 8,026,727 Preferred stock Series C — — 19,494 8,361 8,361 Stockholders’ Equity Preferred stock — — 98,241 209,619 111,378 Common stock   5   5   7   7   7 Additional paid-in capital   846,960   849,541   1,088,512   1,090,162   1,115,471 Retained earnings   (31,779) (24,203) (20,027) (23,105) (10,395) Accumulated other comprehensive income (loss) (9,916)   (9,947)   (7,042)   (7,157)   (6,276) Total Ready Capital Corporation equity   805,270   815,396   1,159,691   1,269,526   1,210,185 Non-controlling interests   18,900   18,812   19,061   18,857   19,125 Total Stockholders’ Equity $ 824,170 $ 834,208 $ 1,178,752 $ 1,288,383 $ 1,229,310 Total Liabilities and Stockholders’ Equity $ 5,317,510 $ 5,372,095 $ 8,016,955 $ 8,976,892 $ 9,264,398 Adjusted Book Value per Share $ 14.84 $ 14.98 $ 14.89 $ 14.87 $ 15.06 9/30/2021 9/30/2020 12/31/2020 3/31/2021 6/30/2021

21 Statement of Income by Quarter (In thousands, except share data) Interest income $ 61,074 $ 64,810 $ 73,371 $ 103,047 $ 105,136 Interest expense   (43,823)   (41,319)   (50,761)   (55,415)   (50,136) Net interest income before provision for loan losses $ 17,251 $ 23,491 $ 22,610 $ 47,632 $ 55,000 Recovery of (provision for) loan losses   4,231   258   8   (5,517)   (1,579) Net interest income after recovery of (provision for) loan losses $ 21,482 $ 23,749 $ 22,618 $ 42,115 $ 53,421 Non-interest income Residential mortgage banking activities $ 75,524 $ 59,963 $ 41,409 $ 36,690 $ 37,270 Net realized gain on financial instruments and real estate owned 7,507 9,795 8,846 17,183 23,210 Net unrealized gain (loss) on financial instruments 3,420 (4,339) 20,996 4,612 5,688 Servicing income, net of amortization and impairment   10,115   11,401   15,635   11,928   10,243 Income on purchased future receivables, net 4,848 1,794 2,317 2,779 2,838 Income (loss) on unconsolidated joint ventures 1,996 3,439 (809) 3,361 3,548 Other income (loss)   4,496   1,353   571   (688)   5,674 Total non-interest income $ 107,906 $ 83,406 $ 88,965 $ 75,865 $ 88,471 Non-interest expense Employee compensation and benefits $ (27,612) $ (18,084) $ (22,777) $ (24,270) $ (24,537) Allocated employee compensation and benefits from related party   (2,250)   (2,250)   (2,123)   (3,299)   (3,804) Variable expenses on residential mortgage banking activities (30,918) (27,016) (15,485) (21,421) (24,380) Professional fees   (4,158)   (4,728)   (2,982)   (2,872)   (6,900) Management fees – related party   (2,714)   (2,741)   (2,693)   (2,626)   (2,742) Incentive fees – related party   (1,134)   (1,333)   —   (286)   (2,775) Loan servicing expense   (8,231)   (6,734)   (6,104)   (6,851)   (8,124) Transaction related expenses (6) — (6,307) (1,266) (2,629) Other operating expenses   (10,448)   (12,442)   (15,484)   (17,190)   (12,926) Total non-interest expense $ (87,471) $ (75,328) $ (73,955) $ (80,081) $ (88,817) Income before provision for income taxes $ 41,917 $ 31,827 $ 37,628 $ 37,899 $ 53,075 Income tax provision   (6,554)   (4,268)   (8,681)   (6,995)   (6,540) Net income $ 35,363 $ 27,559 $ 28,947 $ 30,904 $ 46,535 Less: Dividends on preferred stock — — 281 3,224 1,999 Less: Net income attributable to non-controlling interest   805   648   659   444   756 Net income attributable to Ready Capital Corporation $ 34,558 $ 26,911 $ 28,007 $ 27,236 $ 43,780 Earnings per common share - basic $ 0.63 $ 0.49 $ 0.49 $ 0.38 $ 0.61 Earnings per common share - diluted $ 0.63 $ 0.49 $ 0.49 $ 0.38 $ 0.60 Weighted-average shares outstanding - Basic 54,626,995 54,338,209 56,817,632 71,221,806 71,618,168 Weighted-average shares outstanding - Diluted 54,704,611 54,420,064 56,843,448 71,385,603 71,787,228 Dividends declared per share of common stock $ 0.30 $ 0.35 $ 0.40 $ 0.42 $ 0.42 Q3 2020 Q4 2020 Q1 2020 Q2 2021 Q3 2021

22 Distributable Earnings Reconciliation by Quarter 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. We calculate Distributable earnings as GAAP net income (loss) excluding the following: i) any unrealized gains or losses on certain MBS ii) any realized gains or losses on sales of certain MBS iii) any unrealized gains or losses on Residential MSRs iv) any unrealized gains or losses resulting from a change in CECL impairment reserves on accrual loans v) one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses 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. In 2016, the Company liquidated the majority of its MBS portfolio from distributable earnings to fund recurring operating segments. In addition, in calculating Distributable Earnings, Net Income (in accordance with U.S. GAAP) is adjusted to exclude unrealized gains or losses on residential MSRs, held at fair value. The Company treats its commercial MSRs and residential MSRs as two separate classes based on the nature of the underlying mortgages and the treatment of these assets as two separate pools for risk management purposes. Servicing rights relating to the Company’s small business commercial business are accounted for under ASC 860, Transfer and Servicing, while the Company’s residential MSRs are accounted for under the fair value option under ASC 825, Financial Instruments. In calculating Distributable Earnings, the Company does not exclude realized gains or losses on either commercial MSRs or residential MSRs, held at fair value, 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. (In thousands, except share data) Net Income $ 35,363 $ 27,559 $ 28,947 $ 30,904 $ 46,535 Reconciling items: Unrealized gain on mortgage servicing rights $ 4,688 $ 4,087 $ (15,356) $ 4,699 $ (147) Impact of ASU 2016-13 on accrual loans (7,248) (3,587) (29) 4,035 (1,329) Non-recurring REO impairment (114) 445 — 510 (10) Merger transaction costs and other non-recurring expenses 998 1,323 7,263 2,971 5,485 Total reconciling items $ (1,676) $ 2,268 $ (8,122) $ 12,215 $ 3,999 Distributable earnings before income taxes $ 33,687 $ 29,827 $ 20,825 $ 43,119 $ 50,534 Income tax adjustments   (1,561)   (1,023)   3,883   (1,691)   (1,169) Distributable earnings $ 32,126 $ 28,804 $ 24,708 $ 41,428 $ 49,365 Less: Distributable earnings attributable to non-controlling interests $ 731 $ 677 $ 563 $ 595 $ 802 Less: Income attributable to participating shares 339 305 376 392 445 Less: Dividends on preferred stock — — 281 3,224 1,999 Distributable earnings attributable to Common Stockholders $ 31,056 $ 27,822 $ 23,488 $ 37,217 $ 46,119 DIstributable earnings per share $ 0.57 $ 0.51 $ 0.41 $ 0.52 $ 0.64 Weighted average common shares outstanding 54,626,995 54,338,209 56,817,632 71,221,806 71,618,168 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021

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Document and Entity Information	Nov. 04, 2021
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Nov. 04, 2021
Entity File Number	001-35808
Entity Registrant Name	READY CAPITAL CORPORATION
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	90-0729143
Entity Address, Address Line One	1251 Avenue of the Americas, 50th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10020
City Area Code	212
Local Phone Number	257-4600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001527590
Amendment Flag	false
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	RC
Security Exchange Name	NYSE
Series C Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock, 6.25% Series C Cumulative Convertible, par value $0.0001 per share
Trading Symbol	RC PRC
Security Exchange Name	NYSE
Series E Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock, 6.50% Series E Cumulative Redeemable, par value $0.0001 per share
Trading Symbol	RC PRD
Security Exchange Name	NYSE
7.00% Convertible Senior Notes Due 2023
Document Information [Line Items]
Title of 12(b) Security	7.00% Convertible Senior Notes due 2023
Trading Symbol	RCA
Security Exchange Name	NYSE
6.20% Senior Notes due 2026
Document Information [Line Items]
Title of 12(b) Security	6.20% Senior Notes due 2026
Trading Symbol	RCB
Security Exchange Name	NYSE
5.75% Senior Notes Due 2026
Document Information [Line Items]
Title of 12(b) Security	5.75% Senior Notes due 2026
Trading Symbol	RCC
Security Exchange Name	NYSE