Ready Capital Corporation reported its financial results for the first quarter of 2025, revealing a net income of $81.965 million, a significant recovery from a net loss of $74.167 million in the same period last year. The company’s earnings per share from continuing operations were $0.47, compared to a loss of $0.45 per share in the prior year. The increase in profitability was primarily driven by a recovery of loan losses amounting to $109.568 million, which was a notable rise from $26.544 million in the previous year. Total interest income for the quarter was $154.967 million, down from $232.354 million, while interest expenses also decreased to $140.466 million from $183.805 million.
In terms of operational changes, Ready Capital completed the acquisition of United Development Funding IV (UDF IV) on March 13, 2025, which is expected to enhance its portfolio in residential real estate financing. The merger resulted in a bargain purchase gain of $102.471 million. Additionally, the company has been actively managing its loan portfolio, with total loans net increasing to $4.354 billion from $3.378 billion at the end of 2024. The company also reported a significant increase in loans held for sale, which rose to $528.726 million from $241.626 million.
The company’s total assets decreased slightly to $9.976 billion from $10.142 billion, primarily due to a reduction in assets of consolidated variable interest entities (VIEs). Total liabilities also saw a decline, falling to $7.927 billion from $8.198 billion, largely due to a decrease in securitized debt obligations. However, secured borrowings increased to $2.713 billion, reflecting the company’s strategy to leverage its assets effectively.
Ready Capital's operational metrics showed a strong focus on its core business segments, with the LMM Commercial Real Estate segment generating $124.973 million in interest income, while the Small Business Lending segment contributed $29.994 million. The company continues to maintain a robust pipeline of potential loan originations and acquisitions, which is crucial for its growth strategy. Looking ahead, the company remains optimistic about its ability to navigate market conditions and capitalize on opportunities in the lower-to-middle-market commercial real estate and small business lending sectors.
About Ready Capital Corp
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