Q1 2025 Ready Capital Corp Earnings Call Transcript
Key Points
- Ready Capital Corp (RC) successfully stabilized its book value per share at $10.61, benefiting from share repurchases and the UDF merger.
- The company exceeded its first-quarter liquidation targets, generating $28 million in liquidity and reducing the non-core portfolio by 6%.
- Ready Capital Corp (RC) maintained a healthy credit metric with 60-day-plus delinquencies remaining relatively low at 4%.
- The SBA business showed strong performance with a 12-month default rate of 3.2%, below the industry average, and a historic low in the repair and denial rate.
- The company demonstrated the ability to access capital markets, successfully closing a $220 million senior secured offering and increasing it by $50 million post-quarter.
- Net interest income declined to $14.6 million due to non-core assets moving to non-accrual status, impacting earnings.
- The non-core portfolio's transition to non-accrual status resulted in a $0.13 per share reduction in earnings.
- Delinquencies increased in both core and non-core portfolios, with risk-rated 4 and 5 loans rising to 7.5% of the total.
- The SBA business is expected to see a moderation in volume due to policy changes and capital constraints.
- Freddie Mac loan volumes were muted in the first quarter, with competition from banks and credit unions affecting the business.
Greetings. Welcome to Ready Capital's first quarter 2025 earnings conference call. (Operator Instructions) Please note this conference is being recorded.
I'll now turn the conference over to Andrew Ahlborn, Chief Financial Officer. Mr. Ahlborn, you may begin your presentation.
Thank you, operator, and good morning to those of you on the call. Some of our comments today will be forward-looking statements within the meaning of the Federal Securities Laws. Such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Therefore, you should exercise caution in interpreting and relying on them.
We refer you to our SEC filings for a more detailed discussion of the risk that could impact our future operating results and financial condition. During the call we will discuss our non-GAAP measures which we believe can be useful in evaluating the company's operating performance. These measures should not be
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