The following is a summary of the Ready Capital Corporation (RC) Q3 2024 Earnings Call Transcript:
Financial Performance:
Ready Capital experienced a net loss of $0.07 per share and a distributable earnings loss of $0.28 per share for Q3 2024.
Excluding realized losses on asset sales, distributable earnings were $0.25 per common share, representing an 8.4% return on average stockholders' equity.
Revenue from net interest income, servicing income, and gain on-sale totaled $104 million, increased by $19 million or 22% quarter-over-quarter.
Business Progress:
Ready Capital is implementing strategic portfolio initiatives focusing on repositioning non-performing loans.
Executed $246 million of new originations and increased the pipeline by 34% since Q2 to $730 million.
Active asset management stabilized 60-day delinquencies at 16%.
Exited residential mortgage banking, with settlements expected to generate approximately $40 million in net proceeds.
Achieved record quarterly originations in the small business lending segment amounting to $440 million.
Opportunities:
Positive impact expected from sector-wide rate cuts on the CRE market.
Growth in small business lending operations, with Ready Capital becoming the top non-bank and fourth overall SBA lender in the country.
Risks:
The portfolio faces potential valuation adjustments and write-offs related to non-performing loans and REO.
Delinquency rates might remain volatile as the CRE cycle stabilizes.
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
