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READY CAPITAL CORPORATION ANNOUNCES SECOND QUARTER 2020 RESULTS
New York, New York, August 6, 2020 / 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 June 30, 2020. Ready Capital reported U.S. GAAP Net income for the three months ended June 30, 2020 of $34.7 million, or $0.62 per share of common stock, and Core Earnings (a non-GAAP financial measure) of $39.2 million, or $0.70 per share of common stock. The Company’s record results benefitted from its gain on sale businesses, including significant participation the U.S Government’s Paycheck Protection Program.
Second Quarter Results:
|●||U.S. GAAP Net income of $34.7 million, or $0.62 per diluted share of common stock|
|●||Core Earnings of $39.2 million, or $0.70 per diluted share of common stock|
|●||Adjusted net book value of $14.46 per share of common stock as of June 30, 2020|
|●||Unrestricted cash position of $257.0 million as of June 30, 2020|
|●||Originated a record $1.2 billion of residential mortgage loans|
|●||Originated a record $157.9 million of Freddie Mac loans|
|●||Originated $20.8 million of loans guaranteed by the U.S. Small Business Administration (the “SBA”) under its Section 7(a) loan program|
|●||Facilitated the origination of $2.7 billion in Paycheck Protection Program (PPP) loans, representing over 40,000 businesses|
|●||Declared and paid dividend of $0.25 per share in cash|
“We are proud of the record results we produced, despite the unprecedented and challenging times due to the COVID-19 pandemic,” commented Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer. “The Company successfully responded to this new economic environment by effectively reducing risk by increasing liquidity, preserving book value and reducing mark-to-market liabilities, while expanding our government sponsored lending segments. We are pleased we were able to do our small part in helping over 40,000 small businesses across the country through our participation in the PPP program.”
Increase in Size of Existing Stock Repurchase Program
On August 4, 2020, the Board of Directors authorized an increase in the size of the Company’s existing stock repurchase program by an additional $5.0 million, bringing the total amount authorized and available under the program to $25.0 million. The stock repurchase program authorizes, but does not obligate, the repurchase of the Company's common stock from time to time. The Company expects to acquire shares through open market or privately negotiated transactions. The timing and amount of repurchase transactions will be determined by the Company’s management based on its evaluation of market conditions, share price, legal requirements and other factors. Repurchases are expected to be made from available cash on hand.
Use of Non-GAAP Financial Information
In addition to the results presented in accordance with U.S. GAAP, this press release includes Core Earnings, which is a non-U.S. GAAP financial measure. The Company defines Core 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 gains or losses resulting from a change in CECL impairment reserves 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. However, because Core 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 Core Earnings may not be comparable to other similarly-titled measures of other companies.
The following information was filed by Ready Capital Corp (RC) on Thursday, August 6, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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