What changed in this filing

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Item 1. Financial Statements

2026-08-07 compared with 2026-05-08 · 545 added, 286 removed, 2750 unchanged (23% of the section changed)

3 unchanged sentences

(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

39 unchanged sentences

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except share data)

1 unchanged sentence

Interest expense

Net interest income before (provision for) recovery of loan losses

Net interest income (loss) before (provision for) recovery of loan

(Provision for) recovery of loan losses

Net interest income after (provision for) recovery of loan losses

Net interest income (loss) after (provision for) recovery of loan losses

$ ( 113,017 )

Non-interest income

3 unchanged sentences

Servicing income, net of amortization and impairment of $ 11,207 and

Gain on bargain purchase

$ 17,794 for the three and six months ended June 30, 2026, and $ 12,874

and $ 18,168 for the three and six months ended June 30, 2025,

Gain (loss) on bargain purchase

Income (loss) on unconsolidated joint ventures

10 unchanged sentences

Total non-interest expense

Income (loss) from continuing operations before benefit for income taxes

$ ( 160,306 )

$ ( 142,879 )

Loss from continuing operations before benefit for income taxes

Income tax benefit

11 unchanged sentences

$ ( 103,530 )

$ ( 307,258 )

Earnings per common share from continuing operations - basic

9 unchanged sentences

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

4 unchanged sentences

Foreign currency translation

Other comprehensive loss

Other comprehensive income (loss)

Comprehensive income (loss)

1 unchanged sentence

Comprehensive income attributable to non-controlling interests

Comprehensive income (loss) attributable to Ready Capital Corporation

Comprehensive income (loss) attributable to Ready Capital

$ ( 300,511 )

2 unchanged sentences

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Preferred Series E

5 unchanged sentences

(in thousands, except share data)

Balance at December 31, 2025

Balance at March 31, 2026

$ ( 1,012,927 )

7 unchanged sentences

Net income (loss)

Other comprehensive income (loss)

Other comprehensive income

Balance at June 30, 2026

$ ( 1,118,135 )

Three Months Ended June 30, 2025

Preferred Series E

Additional Paid-

Comprehensive

Non-controlling

Stockholders'

(in thousands, except share data)

Balance at March 31, 2025

$ ( 450,276 )

Three Months Ended March 31, 2025

Dividend declared:

Common stock ( $ 0.125 per share)

$ 0.390625 per Series C preferred share

$ 0.406250 per Series E preferred share

Distributions, net

Stock-based compensation

Conversion of OP units into common stock

Share repurchases

( 8,518,464 )

Reallocation of non-controlling interest

Net income (loss)

Other comprehensive loss

Balance at June 30, 2025

$ ( 528,524 )

See Notes To Unaudited Consolidated Financial Statements

READY CAPITAL CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Six Months Ended June 30, 2026

Preferred Series E

1 unchanged sentence

Comprehensive

Income (Loss)

Non-controlling

7 unchanged sentences

$ 0.81250 per Series E preferred share

Stock-based compensation

Share repurchases

Reallocation of non-controlling interest

Net income (loss)

Other comprehensive income

Balance at June 30, 2026

$ ( 1,118,135 )

Six Months Ended June 30, 2025

Preferred Series E

Additional Paid-

Comprehensive

Non-controlling

Stockholders'

(in thousands, except share data)

Balance at December 31, 2024

$ ( 505,089 )

Dividend declared:

Common stock ( $ 0.25 per share)

$ 0.78125 per Series C preferred share

$ 0.81250 per Series E preferred share

Distributions, net

1 unchanged sentence

Stock-based compensation

Conversion of OP units into common stock

Share repurchases

2 unchanged sentences

Other comprehensive loss

Balance at March 31, 2025

Balance at June 30, 2025

$ ( 528,524 )

2 unchanged sentences

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands)

16 unchanged sentences

Unrealized (gains) losses, net

Loss on deconsolidation of securitization trust

Bargain purchase gain

11 unchanged sentences

Proceeds from disposition and principal payment of loans

Funding of investments held to maturity

Proceeds from sale and principal payment of mortgage-backed securities

4 unchanged sentences

Payment of liabilities under participation agreements

Net cash provided by business acquisitions

Net cash provided by (used for) business acquisitions

Net cash provided by investing activities from continuing operations

6 unchanged sentences

Repayment of the Paycheck Protection Program Liquidity Facility borrowings

Proceeds from issuance of securitized debt obligations of consolidated VIEs

Repayment of securitized debt obligations of consolidated VIEs

( 2,075,012 )

Proceeds from sale of retained beneficial interests

Repayment of corporate debt

8 unchanged sentences

$ ( 782,983 )

Net cash provided by (used for) financing activities from discontinued operations

Net cash used for financing activities from discontinued operations

Net cash used for financing activities

2 unchanged sentences

Net increase (decrease) in cash, cash equivalents, and restricted cash including cash classified within assets held

Net decrease in cash and cash equivalents within assets held for sale

Net increase (decrease) in cash and cash equivalents within assets held for sale

Net increase (decrease) in cash, cash equivalents, and restricted cash

4 unchanged sentences

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands)

1 unchanged sentence

Cash paid for interest

Cash received for income taxes

Cash paid (received) for income taxes

Non-cash investing activities

2 unchanged sentences

Loans transferred to real estate owned, held for sale

Deconsolidation of assets in securitization trusts

Consolidation of assets in securitization trusts

Contingent consideration in connection with acquisitions

Non-cash financing activities

Deconsolidation of borrowings in securitization trusts

Consolidation of borrowings in securitization trusts

Shares and OP units issued in connection with merger transactions

Conversion of OP units to common stock

Cash, cash equivalents, and restricted cash reconciliation

23 unchanged sentences

substantially all of the Company’s business.

As of both March 31, 2026 and December 31, 2025 , the Company owned

As of both June 30, 2026 and December 31, 2025 , the Company owned

approximately 99.8 % of the operating partnership.

27 unchanged sentences

The unaudited interim consolidated financial statements herein, referred to as the “consolidated financial statements”, as

of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and 2025 , have been

of June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and 2025 , have been

prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.

82 unchanged sentences

Allowance for credit losses.

The allowance for credit losses consists of the allowance for losses on loans and lending

commitments accounted for at amortized cost.

The allowance for credit losses consists of the allowance for losses on loans, accounted for

at amortized cost, and lending commitments.

Such loans and lending commitments are reviewed quarterly considering

13 unchanged sentences

Significant inputs to the Company’s forecasting methods include (i) key loan-specific inputs such as LTV, vintage year,

loan-term, underlying property type, occupancy, geographic location, and others, and (ii) a macro-economic forecast,

including unemployment rates, interest rates, commercial real estate prices, and others.

These estimates may change in

future periods based on available future macro-economic data and might result in a material change in the Company’s

future estimates of expected credit losses for its loan portfolio.

loan-term, underlying property type, geographic location, and others, and (ii) a macro-economic forecast, including

unemployment rates, interest rates, commercial real estate prices, and others.

These estimates may change in future

periods based on available future macro-economic data and might result in a material change in the Company’s future

estimates of expected credit losses for its loan portfolio.

In certain instances, the Company considers relevant loan-specific qualitative factors to certain loans to estimate its

23 unchanged sentences

loans consist of loans for which principal or interest has been delinquent for 90 days or more and for which specific

reserves are recorded , including PCD loans.

Interest income accrued, but not collected, at the date loans are placed on

non-accrual status is reversed, unless the loan is expected to be fully recoverable by the collateral or is in the process of

being collected.

Interest income is subsequently recognized only to the extent it is received in cash or until the loan

qualifies for return to accrual status.

However, where there is doubt regarding the ultimate collectability of loan

principal, all cash received is applied to reduce the carrying value of such loans.

reserves are recorded .

Interest income accrued, but not collected, at the date loans are placed on non-accrual status is

reversed, unless the loan is expected to be fully recoverable by the collateral or is in the process of being collected.

Interest income is subsequently recognized only to the extent it is received in cash or until the loan qualifies for return to

accrual status.

However, where there is doubt regarding the ultimate collectability of loan principal, all cash received is

applied to reduce the carrying value of such loans under the cost recovery method.

Loans are restored to accrual status

39 unchanged sentences

are sold, the proceeds, less the costs to sell, in excess (or deficiency) of the net carrying value, including accrued interest,

are recognized as a realized gain (loss).

are recognized as a realized gain (loss) in the consolidated statements of operations.

Paycheck Protection Program loans

41 unchanged sentences

the fair value recorded in earnings unless hedge accounting is elected.

As of March 31, 2026 and December 31, 2025 , the

As of June 30, 2026 and December 31, 2025 , the

Company had o ffset $ 9.0 million and $ 13.0 million of cash collateral payable against gross derivative asset positions,

125 unchanged sentences

The fair value of intangible assets is based on estimated cash flow projections, as well as other available market

Amortization of intangible assets (including above and below-market leases) is recorded as an adjustment to

income on the consolidated statements of operations.

Intangible assets (including above and below-market leases) are amortized on a straight-line basis over the

remaining term of the lease and amortization is recorded as an adjustment to income on the consolidated statements of

Real estate owned, held for sale.

6 unchanged sentences

held for sale is analyzed periodically for changes in fair values and any subsequent write down is charged through

impairment on real estate on the consolidated statements of operations.

The Company records a gain or loss from the sale of real estate when control of the property transfers to the buyer,

55 unchanged sentences

unit is less than its carrying amount, including goodwill.

In the first quarter of 2026 , as a result of the qualitative

In the fourth quarter of 2025 , as a result of the qualitative

assessment, the Company determined that it was more likely than not that the estimated fair value of each of the

2 unchanged sentences

impaired and a quantitative test was not required.

There were no events or changes in circumstances during the three months ended June 30, 2026 that would indicate that

it was more likely than not that the fair value of each of the reporting units did not exceed its respective carrying value as

of June 30, 2026 .

Deferred financing costs

133 unchanged sentences

pursuant to which the company acquired a group of privately held, real estate structured finance opportunities funds,

with a focus on construction lending (collectively, the “Mosaic Funds”), managed by MREC Management, LLC.

addition, the Company has non-controlling interests from investments in consolidated joint ventures whereby, net

income or loss is generally based upon relative ownership interests or contractual arrangements.

with a focus on construction lending, managed by MREC Management, LLC.

In addition, the Company has non-

controlling interests from investments in consolidated joint ventures whereby, net income or loss is generally based upon

relative ownership interests or contractual arrangements.

Fair value option

18 unchanged sentences

stock awards (“ RSAs”) , performance-based equity awards, as well as the dilutive impact of convertible preferred stock

and CVRs under the if-converted method and warrants under the treasury stock method.

Potential dilutive shares are

excluded from the calculation if they have an anti-dilutive effect in the period.

All of t he Company’s unvested RSAs, unvested RSUs granted to non-employee directors, and preferred stock contain

rights to receive non-forfeitable dividends or dividend equivalents and, thus, are participating securities.

existence of these participating securities, the two-class method of computing EPS is required, unless another method is

determined to be more dilutive.

Under the two-class method, undistributed earnings are reallocated between shares of

common stock and participating securities.

and CVRs under the if-converted method.

Potential dilutive shares are excluded from the calculation if they have an anti-

dilutive effect in the period.

All of t he Company’s RSAs, time-based RSUs, and preferred stock contain rights to receive non-forfeitable dividends or

dividend equivalents and, thus, are participating securities.

Due to the existence of these participating securities, the two-

class method of computing EPS is required, unless another method is determined to be more dilutive.

Under the two-

class method, undistributed earnings are reallocated between shares of common stock and participating securities.

The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current

44 unchanged sentences

Such income for the three

months ended March 31, 2026 , was not material .

months ended June 30, 2026 , was not material .

Realized gains (losses).

1 unchanged sentence

loans or securities, the excess (or deficiency) of net proceeds over the net carrying value or cost basis of such loans or

securities is recognized as a realized gain (loss).

securities is recognized as a realized gain (loss) in the consolidated statements of operations.

Origination income and expense.

174 unchanged sentences

obtained, the Company recorded a measurement period adjustment of $ 0.2 million to decrease the value of the CVR .

of March 31, 2026 , the updated purchase price of the CVRs was valued at approximately $ 15.2 million or $ 1.19 per

Upon the close of the measurement period on March 13, 2026 , the updated purchase price of the CVRs was valued at

approximately $ 15.2 million or $ 1.19 per CVR.

See note 7 for more information about the valuation of the CVRs.

7 unchanged sentences

the Company including loans of consolidated VIEs.

March 31, 2026

June 30, 2026

December 31, 2025

20 unchanged sentences

(in thousands)

March 31, 2026

June 30, 2026

Total Loans, net

6 unchanged sentences

(in thousands)

March 31, 2026

June 30, 2026

30 - 59 days past due

9 unchanged sentences

90+ days past

March 31, 2026

June 30, 2026

Total Loans, net

15 unchanged sentences

80.1 – 100.0%

March 31, 2026

June 30, 2026

Total Loans, net

8 unchanged sentences

Geographic Concentration (% of UPB)

March 31, 2026

June 30, 2026

December 31, 2025

2 unchanged sentences

Collateral Concentration (% of UPB)

March 31, 2026

June 30, 2026

December 31, 2025

1 unchanged sentence

Collateral Concentration (% of UPB)

March 31, 2026

June 30, 2026

December 31, 2025

Grocery Stores

Gasoline Service Stations

Eating Places

1 unchanged sentence

General Freight Trucking, Local

Gasoline Service Stations

Grocery Stores

Offices of Physicians

8 unchanged sentences

(in thousands)

March 31, 2026

June 30, 2026

Ending balance

3 unchanged sentences

(in thousands)

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Beginning balance

3 unchanged sentences

Ending balance

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Beginning balance

Provision for (recoveries of) loan losses

Measurement period adjustment - PCD

Charge-offs and sales

Ending balance

Six Months Ended June 30, 2026

Beginning balance

Provision for (recoveries of) loan losses

Time value of money adjustment

Charge-offs and sales

Ending balance

Six Months Ended June 30, 2025

Beginning balance

Provisions for (recoveries of) loan losses

1 unchanged sentence

Ending balance

(1) Includes the impact of a measurement period adjustment related to the UDF IV Merger.

Refer to Note 5 for further details on assets acquired and liabilities assumed in

connection with the UDF Merger.

The table above excludes $ 3.8 million and $ 2.3 million of allowance for loan losses on unfunded lending commitments

as of March 31, 2026 and March 31, 2025 , respectively .

Refer to Note 3 – Summary of Significant Accounting Policies

for more information on accounting policies, methodologies and judgment applied to determine the allowance for loan

as of June 30, 2026 and June 30, 2025 , respectively .

Refer to Note 3 – Summary of Significant Accounting Policies for

more information on accounting policies, methodologies and judgment applied to determine the allowance for loan

losses and lending commitments.

5 unchanged sentences

(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

7 unchanged sentences

UPB of non-accrual loans

March 31, 2026

March 31, 2025

June 30, 2026

June 30, 2025

Interest income on non-accrual loans for the three months ended

Interest income on non-accrual loans for the six months ended

Loan modifications made to borrowers experiencing financial difficulty

2 unchanged sentences

payment delays intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of

Three months ended March 31, 2026 .

During the three months ended March 31, 2026 , the Company entered into 50 loan

Three months ended June 30, 2026 .

During the three months ended June 30, 2026 , the Company entered into 27 loan

modifications with an aggregate carrying value of $ 87.7 million , or 2.0 % of total loans, net.

These modified loans

include a combination of changes to the contractual terms which were in the form of interest rate reductions, term

extensions and other-than-insignificant payment delays .

include a combination of changes to the contractual terms which were in the form of interest rate reductions, principal

forgiveness, term extensions and other-than-insignificant payment delays.

There was 1 loan with a carrying value of $ 60.5 million , or 1.4 % of loans, net that was modified to include both a 25

month term extension added to the original loan term and an interest rate reduction from SOFR + 5.85 % to SOFR +

4.00 % from May 2026 to November 2027.

There was 1 loan with a carrying value of $ 17.8 million , or 0.4 % of loans, net

that was modified to include a 39 month term extension added to the original loan term, a 24 month interest payment

deferral, and principal forgiveness of $ 1.2 million .

Ther e were 23 loans with an aggregate carrying value of $ 8.9 million ,

or 0.2 % of loans, net that were modified to include interest payment deferrals which ranged between 3 and 24 months

with a weighted average of 8 months and include payments for periods before the modification date.

There were 2 loans

with an aggregate carrying value of $ 0.5 million , or less than 0.1 % of loans, net that were modified to include a 60

month term extension added to the original loan term.

Interest payment deferral payment modifications include the

reduction of interest payments to equal excess net operating income with the difference between the original rate and the

interest collected due at maturity.

During the three months ended June 30, 2026 , $ 2.6 million of total capital was invested by the borrowers, substantially

all in the form of payment towards principal or contribution to a reserve account.

Six months ended June 30, 2026 .

During the six months ended June 30, 2026 , the Company entered into 72 loan

modifications with an aggregate carrying value of $ 251.8 million , or 5.8 % of total loans, net.

These modified loans

include a combination of changes to the contractual terms which were in the form of interest rate reductions, principal

forgiveness, term extensions and other-than-insignificant payment delays .

There were 4 loans with an aggregate carrying value of $ 138.3 million , or 3.2 % of loans, net that were modified to

1 unchanged sentence

original loan term and interest payment deferrals which ranged between 2 and 9 months with a weighted average of 3

There were 44 loans with an aggregate carrying value of $ 86.7 million , or 2.1 % of loans, net that were modified

to include interest payment deferrals which ranged between 3 and 23 months with a weighted average of 4 months and

include payments for periods before the modification date.

There was 1 loan with a carrying value of $ 0.1 million , or

less than 0.1 % of loans, net that was modified to include both a 14 month interest payment deferral and an interest rate

reduction from Prime + 2.75 % to a fixed rate of 9.00 % from February 2026 to May 2033.

Interest payment deferral

p ayment modifications include the reduction of interest payments to equal excess net operating income with the

difference between the original rate and the interest collected due at maturity.

There was 1 loan with a carrying value of $ 60.5 million , or 1.4 % of loans, net that was modified to include a 25

month term extension added to the original loan term, a 4 month interest payment deferral, and an interest rate reduction

from SOFR + 5.85 % to SOFR + 4.00 % from May 2026 to November 2027.

There were 63 loans with an aggregate

carrying value of $ 34.7 million , or 0.8 % of loans, net that were modified to include interest payment deferrals which

ranged between 3 and 24 months with a weighted average of 5 months and include payments for periods before the

modification date.

There was 1 loan with a carrying value of $ 17.8 million , or 0.4 % of loans, net that was modified to

include a 39 month term extension added to the original loan term, a 24 month interest payment deferral, and principal

forgiveness of $ 1.2 million .

There were 2 loans with an aggregate carrying value of $ 0.5 million , or less than 0.1 % of

loans, net that were modified to include a 60 month term extension added to the original loan term.

There was 1 loan

with a carrying value of less than $ 0.1 million , or less than 0.1 % of loans, net that was modified to include both a 26

month interest payment deferral and an interest rate reduction from Prime + 2.75 % to a fixed rate of 9.00 % from

February 2026 to May 2033.

Interest payment deferral payment modifications include the reduction of interest payments

to equal excess net operating income with the difference between the original rate and the interest collected due at

During the six months ended June 30, 2026 , $ 2.6 million of total capital was invested by the borrowers, substantially all

in the form of payment towards principal or contribution to a reserve account.

Three months ended June 30, 2025 .

During the three months ended June 30, 2025 , the Company entered into 36 loan

modifications with an aggregate carrying value of $ 261.8 million , or 3.6 % of total loans, net.

These modified loans

include a combination of changes to the contractual terms which were in the form of interest rate reductions, term

extensions and other-than-insignificant payment delays.

There were 9 loans with an aggregate carrying value of $ 81.4 million , or 1.1 % of loans, net that were modified to

include term extensions which ranged between 2 and 72 months with a weighted average of 21 months added to the

original loan term.

There was 1 loan with a carrying value of $ 33.4 million , or 0.5 % of loans, net that was assumed by a

new borrower with an 18 month term extension added to the original loan term.

There was 1 loan with a carrying value

of $ 31.3 million , or 0.4 % of loans, net that was modified to include both a 24 month term extension added to the original

loan term and an interest rate reduction from SOFR + 4.50 % to SOFR + 4.00 % from May 2025 to October 2027.

was 1 loan with a carrying value of $ 31.1 million , or 0.4 % of loans, net that was modified to include both a 26 month

interest payment deferral and an interest rate reduction from SOFR + 3.60 % to a fixed rate of 6.0 % from June 2024 to

December 2025, 6.25 % from January 2026 to December 2026, and 6.5 % from January 2027 to September 2027.

were 15 loans with an aggregate carrying value of $ 30.7 million , or 0.4 % of loans, net that were modified to include

interest payment deferrals which ranged between 6 and 28 months with a weighted average of 7 months and include

payments for periods before the modification date.

There were 8 loans with an aggregate carrying value of $ 28.5 million ,

or 0.4 % of loans, net that were modified to include both term extensions and interest payment deferrals.

extensions ranged between 3 and 60 months with a weighted average of 14 months added to the original loan term.

Interest payment deferrals ranged between 6 and 11 months with a weighted average of 9 months .

modifications include the reduction of interest payments to equal excess net operating income with the difference

between the original rate and the interest collected due at maturity.

In most cases, default interest is waived.

During the three months ended March 31, 2026 , no capital was invested by the borrowers.

Three months ended March 31, 2025 .

During the three months ended March 31, 2025 , the Company entered into 23 loan

loan with a carrying value of $ 25.4 million , or 0.4 % of loans, net that was modified to include a 12 month term extension

added to the original loan term, a 7 month interest payment deferral, and an interest rate reduction from SOFR + 5.75 %

to SOFR + 3.50 % from June 2025 to March 2026.

During the three months ended June 30, 2025 , $ 0.4 million of total capital was invested by the borrowers, substantially

all in the form of payments in contribution to reserve accounts.

Six months ended June 30, 2025 .

During the six months ended June 30, 2025 , the Company entered into 61 loan

modifications with an aggregate carrying value of $ 429.8 million , or 6.0 % of total loans, net.

These modified loans

include a combination of changes to the contractual terms which were in the form of term extensions and other-than-

insignificant payment delays .

There were 2 loans with an aggregate carrying value of $ 66.4 million , or 0.9 % of loans, net that were assumed by new

borrowers and modified to include both term extensions and interest payment deferrals.

include a combination of changes to the contractual terms which were in the form of interest rate reductions, term

extensions and other-than-insignificant payment delays .

There were 15 loans with an aggregate carrying value of $ 100.4 million , or 1.4 % of loans, net that were modified to

include term extensions which ranged between 2 and 72 months with a weighted average of 20 months added to the

original loan term.

There were 2 loans with an aggregate carrying value of $ 77.6 million , or 1.1 % of loans, net that were

assumed by new borrowers and modified to include term extensions.

The term extensions ranged between 18 and 35

months with a weighted average of 28 months added to the original loan term.

There were 2 loans with an aggregate

carrying value of $ 65.3 million , or 0.9 % of loans, net that were assumed by new borrowers and modified to include both

term extensions and interest payment deferrals.

The term extensions ranged between 19 and 32 months with a weighted

average of 25 months added to the original loan term.

Interest payment deferrals ranged between 12 and 24 months with

a weighted average of 17 months .

There were 11 loans with an aggregate carrying value of $ 57.5 million , or 0.8 % of

loans, net that were modified to include both term extensions and interest payment deferrals.

The term extensions ranged

2 unchanged sentences

deferrals ranged between 6 and 24 months with a weighted average of 12 months .

There was 1 loan with a carrying

value of $ 44.2 million , or 0.5 % of loans, net that was assumed by a new borrower with a 35 months term extension

added to the original loan term.

There were 4 loans with an aggregate carrying value of $ 29.6 million , or 0.4 % of loans,

net that were modified to include both term extensions and interest payment deferrals.

The term extensions ranged

between 12 and 60 months with a weighted average of 14 months added to the original loan term.

Interest payment

deferrals ranged between 6 and 24 months with a weighted average of 15 months and include payments for periods

before the modification date.

There were 6 loans with an aggregate carrying value of $ 21.1 million , or 0.3 % of loans, net

that were modified to include term extensions which ranged between 5 and 60 months with a weighted average of 16

months added to the original loan term.

There were 10 loans with an aggregate carrying value of $ 4.7 million , or 0.1 % of

loans, net that were modified to include interest payment deferrals which ranged between 6 and 16 months with a

weighted average of 6 months and include payments for periods before the modification date.

Interest p ayment deferral

payment modifications include the reduction of interest payments to equal excess net operating income with the

difference between the original rate and the interest collected due at maturity.

Payment modifications include the

reduction of interest payments to equal excess net operating income with the difference between the original rate and the

interest collected due at maturity.

In most cases, default interest is waived.

During the three months ended March 31, 2025 , $ 10.2 million of total capital was invested by the borrowers,

substantially all in the form of payments in contribution to reserve accounts.

There were 28 loans with an aggregate

carrying value of $ 41.2 million , or 0.6 % of loans, net that were modified to include interest payment deferrals which

ranged between 3 and 28 months with a weighted average of 7 months and include payments for periods before the

modification date.

There was 1 loan with a carrying value of $ 31.3 million , or 0.4 % of loans, net that was modified to

include both a 24 month term extension added to the original loan term and an interest rate reduction from SOFR +

4.50 % to SOFR + 4.00 % from May 2025 to October 2027.

There was 1 loan with a carrying value of $ 31.1 million , or

0.4 % of loans, net that was modified to include both a 26 month interest payment deferral and an interest rate reduction

from SOFR + 3.60 % to a fixed rate of 6.0 % from June 2024 to December 2025, 6.25 % from January 2026 to December

2026, and 6.5 % from January 2027 to September 2027.

There was 1 loan with a carrying value of $ 25.4 million , or 0.4 %

of loans, net that was modified to include a 12 month term extension added to the original loan term, a 7 month interest

payment deferral, and an interest rate reduction from SOFR + 5.75 % to SOFR + 3.50 % from June 2025 to March 2026.

During the six months ended June 30, 2025 , $ 10.6 million of total capital was invested by the borrowers, substantially all

in the form of payments in contribution to reserve accounts.

The remaining elements of the Company’s modification programs are generally considered insignificant and do not have

4 unchanged sentences

The Company continues to estimate the allowance for loan losses after modification using loan-specific

A m ajority of the modified loans during the three months ended March 31, 2026 were performing in accordance

with the modified contractual terms however, $ 232.2 million were on nonaccrual status regarding the ultimate

collectability of the contractually due principal and interest.

Substantially all of the modified loans during the three

months ended March 31, 2025 were on accrual status and performing in accordance with the modified contractual terms.

Substantially all of the modified loans during the three and six months ended June 30, 2026 were performing in

accordance with the modified contractual terms, however, $ 69.8 million and $ 169.7 million , respectively were on

nonaccrual status regarding the ultimate collectability of the contractually due principal and interest.

Majority of the

modified loans during the three and six months ended June 30, 2025 were on accrual status and performing in

accordance with the modified contractual terms.

Loans with modifications disclosed in the previous twelve months are performing in accordance with their modified

terms as of March 31, 2026 , except for 52 loans with a carrying value of $ 185.8 million which did not make payments in

accordance with their modified terms during the three months ended March 31, 2026 .

terms as of June 30, 2026 , except for 34 loans with a carrying value of $ 107.4 million which did not make payments in

accordance with their modified terms during the three months ended June 30, 2026 .

On loans for which the Company determines foreclosure of the collateral is probable, expected losses are measured

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measurement date.

As of March 31, 2026 and December 31, 2025 , the Company’s total carrying amount of loans in the

As of June 30, 2026 and December 31, 2025 , the Company’s total carrying amount of loans in the

foreclosure process was $ 10.8 million and $ 17.9 million , respectively.

Lending commitments.

For th e three months en ded March 31, 2026 and March 31, 2025 , lending commitments to

borrowers experiencing financial difficulty for which the Company has modified the loan terms were $ 2.2 million and

$ 6.8 million , respectively.

L ending commitments .

For the three and six months ended June 30, 2026 , lending commitments to borrowers

experiencing financial difficulty for which the Company has modified the loan terms were $ 0.4 million and $ 1.9 million ,

respectively.

For the three and six months ended June 30, 2025 , lending commitments to borrowers experiencing

financial difficulty for which the Company has modified the loan terms were $ 22.3 million and $ 28.8 million ,

respectively.

On March 13, 2025, the Company acquired PCD loans in connection with the UDF IV M erger .

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Purchase price of loans classified as PCD

The Company did not acquire any PCD loans during the three months ended March 31, 2026 .

The Company did not acquire any PCD loans during the three months ended June 30, 2026 or June 30, 2025 .

Fair Value Measurements

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related to future cash proceeds and discount rate.

A s of March 31, 2026 , t he CVRs associated with the closing of the UDF IV Merger were valued at approximately $ 19.9

A s of June 30, 2026 , t he CVRs associated with the closing of the UDF IV Merger were valued at approximately $ 21.8

million o r $ 1.71 per CVR.

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(in thousands)

March 31, 2026

June 30, 2026

Money market funds (1)

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Weighted Average

March 31, 2026

June 30, 2026

Investment in unconsolidated joint

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Lender Services (“Madison One”) on June 5, 2024.

Included within Level 3 asset s of $ 91.0 million as of March 31, 2026 and $ 98.7 million as of December 31, 2025 , is $ 0.5

Included within Level 3 asset s of $ 80.6 million as of June 30, 2026 and $ 98.7 million as of December 31, 2025 , is $ 0.4

million and $ 0.7 million , respectively, of transaction prices in which quantitative unobservable inputs are not developed

1 unchanged sentence

The table below presents a summary of changes in fair value for Level 3 assets and liabilities.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

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Unrealized gains (losses), net

Transfer to (from) Level 3

Ending balance

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Unrealized gains (losses), net

Transfer to (from) Level 3

Ending balance

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value and are classified as Level 3.

March 31, 2026

June 30, 2026

December 31, 2025

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Total liabilities

As of both March 31, 2026 and December 31, 2025 , other assets and accounts payable and accrued liabilities are not

As of both June 30, 2026 and December 31, 2025 , other assets and accounts payable and accrued liabilities are not

carried at fair value but generally approximate fair value.

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The table below presents information about servicing rights at amortized cost.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

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The table below presents additional information about servicing rights at amortized cost.

As of March 31, 2026

As of June 30, 2026

As of December 31, 2025

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The table below presents significant assumptions used in the estimated valuation of servicing rights at amortized cost.

March 31, 2026

June 30, 2026

December 31, 2025

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(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

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(in thousands)

March 31, 2026

June 30, 2026

Discontinued Operations and Assets and Liabilities Held for Sale

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o peration s.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

1 unchanged sentence

Interest expense

Net interest income (expense)

Net interest income

Non-interest income

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Loss from discontinued operations before income tax benefit

Loss from disposal of discontinued operations before income tax benefit

Net loss from discontinued operations before income tax benefit

Income tax benefit

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Facility Size

March 31, 2026

June 30, 2026

December 31, 2025

April 2026 to June 2027

August 2026 to June 2027

SOFR + 2.50 %

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Total borrowings under credit facilities and other financing agreements

June 2026 - September

August 2026 - September

SOFR + 2.55 %

April 2026 - September

July 2026 - November 2026

Total borrowings under repurchase agreements

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(4) Non-USD denominated credit facilities and repurchase agreements have been converted into USD for purposes of this disclosure.

(5) Agreement permits advance amounts to be repaid after the maturity date.

In the table above, the agreements governing secured borrowings require maintenance of certain financial and debt

As of both March 31, 2026 and December 31, 2025 , certain financing counterparties covenants calculations

were amended to exclude the PPPLF from certain covenant calculations.

As of both March 31, 2026 and December 31,

2025 the Company was in compliance with all debt and financial covenants, as amended .

As of December 31, 2025 , certain financing counterparties' covenant calculations were amended to exclude

the PPPLF from certain covenant calculations .

As of both June 30, 2026 and December 31, 2025 the Company was in

compliance with all debt and financial covenants, as amended .

The table below presents the carrying value of collateral pledged with respect to secured borrowings outstanding.

1 unchanged sentence

(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

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maximum debt to equity ratio.

As of March 31, 2026 , the Company was in compliance with all covenants with respect to the Senior Secured Notes and

the Term Loan, as amended .

As of June 30, 2026 , the Company was in compliance with all covenants with respect to the Senior Secured Notes and

the Term Loan .

Corporate debt, net

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(“Broadmark”), and

RCC Merger Sub, LLC, a wholly owned subsidiary of the operating partnership (“RCC Merger Sub”), in which

Broadmark merged with and into RCC Merger Sub, with RCC Merger Sub remaining as a wholly owned subsidiary of

the operating partnership (the “Broadmark Merger”), RCC Merger Sub assumed Broadmark’s obligations on certain

senior unsecured notes.

The note purchase agreement governing these notes contains financial covenants that require

compliance with leverage and coverage ratios and maintenance of minimum tangible net worth, as well as other

customary affirmative and negative covenan ts.

As of March 31, 2026 , the Company was in compliance with all covenants with respect to its Corporate debt.

Ready Capital Investments, LLC (formerly known as “RCC Merger Sub, LLC”) , a wholly owned subsidiary of the

operating partnership (“Ready Capital Investments”), in which Broadmark merged with and into Ready Capital

Investments, with Ready Capital Investments remaining as a wholly owned subsidiary of the operating partnership (the

“Broadmark Merger”), Ready Capital Investments assumed Broadmark’s obligations on certain senior unsecured notes.

The note purchase agreement governing these notes contains financial covenants that require compliance with leverage

and coverage ratios and maintenance of minimum tangible net worth, as well as other customary affirmative and

negative covenan ts.

As of June 30, 2026 , the Company was in compliance with all covenants with respect to its Corporate debt.

The table below presents information about senior secured notes and corporate debt issued through public and private

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Maturity Date

March 31, 2026

June 30, 2026

Senior secured notes principal amount (1)

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Corporate debt principal amount (7)

Corporate debt principal amount (8)

Unamortized discount - corporate debt

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(4) Interest on the corporate debt is payable semiannually on June 30 and December 30 of each year.

(5) Interest on the corporate debt is payable quarterly on January 30, April 30, July 30, and October 30 of each year.

(5) Interest on the corporate debt is payable semiannually on January 31 and July 31 of each year.

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(in thousands)

March 31, 2026

June 30, 2026

Total contractual amounts

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Guaranteed loan financings are secured by

loans of $ 500.9 million an d $ 524.3 million as of March 31, 2026 and December 31, 2025 , respectively.

loans of $ 950.3 million an d $ 524.3 million as of June 30, 2026 and December 31, 2025 , respectively.

The table below presents guaranteed loan financing and the related interest rates and maturity dates.

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Ending Balance

March 31, 2026

June 30, 2026

1.45 - 13.25 %

3 unchanged sentences

(in thousands)

March 31, 2026

June 30, 2026

Variable Interest Entities and Securitization Activities

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operations as Net income attributable to noncontrolling interests, respectively.

As of March 31, 2026 and December 31,

As of June 30, 2026 and December 31,

2025 , income and expenses on joint venture investments identified as consolidated VIEs were not material .

1 unchanged sentence

(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

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The table below presents additional information on the Company’s securitized debt obligations.

March 31, 2026

June 30, 2026

December 31, 2025

4 unchanged sentences

ReadyCap Lending Small Business Trust 2023-3

ReadyCap Lending Small Business Trust 2026-4

Sutherland Commercial Mortgage Trust 2019-SBC8

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(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

March 31, 2026

June 30, 2026

December 31, 2025

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The table below presents the components of interest income and expense.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

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$ ( 135,837 )

$ ( 179,687 )

$ ( 276,303 )

Net interest income (loss) before provision for loan losses

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Refer to Note 22 for further details on derivative assets and liabilities by product

March 31, 2026

June 30, 2026

December 31, 2025

9 unchanged sentences

Net Unrealized

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Interest rate swaps

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Interest rate swaps

Six Months Ended June 30, 2026

Interest rate swaps

Six Months Ended June 30, 2025

Interest rate swaps

In the table above:

• Gains (losses) on interest rate swaps and FX forwards are recorded in net unrealized gain (loss) on financial

instruments or net realized gain (loss) on financial instruments in the consolidated statements of operations.

• Gains (losses) on interest rate swaps are recorded in net unrealized gain (loss) on financial instruments or net

realized gain (loss) on financial instruments in the consolidated statements of operations.

• For qualifying hedges of interest rate risk on interest rate swaps, the effective portion relating to the unrealized

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Interest rate swaps

Three Months Ended March 31, 2026

Three Months Ended March 31, 2025

Three Months Ended June 30, 2026

Three Months Ended June 30, 2025

Six Months Ended June 30, 2026

Six Months Ended June 30, 2025

In the table above:

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(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

7 unchanged sentences

In the table above:

• D epreciation expense related to REO, held for use was $ 1.6 million for the three months ended March 31, 2026 .

Accumulated depreciation related to REO, held for use was $ 4.4 million as of March 31, 2026 .

such depreciation expense or accumulated depreciation as of or for the three months ended March 31, 2025 .

• O ther REO excludes $ 15.3 million as of both March 31, 2026 and December 31, 2025 , of real estate owned,

held for sale within consolidated VIEs.

• D epreciation expense related to REO, held for use was $ 1.6 million and $ 3.2 million for the three and six

months ended June 30, 2026 .

Accumulated depreciation related to REO, held for use was $ 6.0 million as of

June 30, 2026 .

There was no such depreciation expense or accumulated depreciation as of or for the three and

six months ended June 30, 2025 .

• O ther REO excludes $ 15.3 million as of both June 30, 2026 and December 31, 2025 , of real estate owned, held

for sale within consolidated VIEs.

Agreements and Transactions with Related Parties

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The table below presents the management fee payable to the Manager.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Management fee - total

1 unchanged sentence

$ 5.1 million

$ 7.8 million

$ 10.6 million

Management fee - amount unpaid

1 unchanged sentence

$ 10.7 million

$ 10.2 million

$ 10.7 million

Incentive distribution.

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The table below presents the Incentive fee payable to the Manager.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Incentive fee distribution - total

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The table below presents reimbursable expenses payable to the Manager.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Reimbursable expenses payable to Manager - total

1 unchanged sentence

$ 4.0 million

$ 8.8 million

$ 8.9 million

Reimbursable expenses payable to Manager - amount unpaid

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$ 5.2 million

$ 8.7 million

$ 5.2 million

Co- Investment with Ma nager

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distressed and value-add real estate across property types with local operating partners.

As of March 31, 2026 , the

As of June 30, 2026 , the

Company has contributed $ 95.8 million of cash into the Fund for a remaining commitment of $ 29.2 million .

8 unchanged sentences

(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

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(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

7 unchanged sentences

Net Carrying Value

March 31, 2026

June 30, 2026

Amortized intangible assets:

19 unchanged sentences

Total intangible liabilities

The amortization expense related to intangible assets was $ 1.8 million for the three months ended March 31, 2026 and

$ 1.6 million for the three months ended March 31, 2025 , respectively.

Such amounts are recorded as other operating

expenses in the consolidated statements of operations .

The amortization expense related to intangible assets was $ 1.8 million and $ 3.6 million for the three and six months

ended June 30, 2026 and $ 1.7 million and $ 3.3 million for the three and six months ended June 30, 2025 , respectively.

Such amounts are recorded as other operating expenses in the consolidated statements of operations .

The table below presents amortization expense related to finite-lived intangible assets for the subsequent five years.

(in thousands)

March 31, 2026

June 30, 2026

Other Income and Operating Expenses

The table below presents the composition of other income and operating expenses.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

2 unchanged sentences

Change in repair and denial reserve

Loss on deconsolidation of trust

Total other income

13 unchanged sentences

Dividend per Share

March 3, 2025

March 31, 2025

April 30, 2025

June 13, 2025

10 unchanged sentences

April 30, 2026

June 15, 2026

June 30, 2026

July 31, 2026

Stock incentive plans

The Company currently maintains the 2023 Equity Incentive Plan which authorizes the Compensation Committee of the

Board to approve grants of equity-based awards to the Company’s officers and directors, and employees of the Manager

and its affiliates.

On August 22, 2023, the Company’s stockholders approved the 2023 Equity Incentive Plan which

provides for grants of equity-based awards up to 5.5 million shares of the Company’s common stock.

currently settles stock-based incentive awards with newly issued shares.

The fair value of the RSUs and RSAs granted,

which is generally determined based upon the stock price on the grant date, is recorded as compensation expense on a

straight-line basis over the vesting periods for the awards, with an offsetting increase in stockholders’ equity.

The Company currently maintains the Amended and Restated Ready Capital Corporation 2023 Equity Incentive Plan

(the “2023 Equity Incentive Plan”)which authorizes the Compensation Committee of the Board to approve grants of

equity-based awards to the Company’s directors, officers, advisors, consultants, key employees, and others expected to

provide significant services to the Company and its subsidiaries, including the Manager and personnel, employees,

officers and directors of certain participating companies .

On July 17, 2026, the Company’s stockholders approved the

2023 Equity Incentive Plan which provided for grants of equity-based awards up to 20.5 million shares of the

Company’s common stock.

The Company currently settles stock-based incentive awards with newly issued shares.

fair value of the RSUs and RSAs granted, which is generally determined based upon the stock price on the grant date, is

recorded as compensation expense on a straight-line basis over the vesting periods for the awards, with an offsetting

increase in stockholders’ equity.

In 2026 , 2025 , and 2024 , the Company gran ted 2,185,687 , 1,210,374 , and 774,097 , respectively, of time-based RSAs

4 unchanged sentences

granted 2,550,000 time-based RSUs (the “Employee RSUs”) under the 2023 Equity Incentive Plan to certain key

The Employee RSUs will vest, in full, on December 31, 2028, based solely upon continued employment or

The Employee RSUs will be settled in cash or in shares of the Company’s common stock, dependent upon

whether the Company’s stockholders approve an amendment to the 2023 Equity Incentive Plan (the “2023 EIP

Amendment”) to increase the pool of shares available for grant at the Company’s 2026 annual meeting of stockholders.

If the 2023 EIP Amendment (i) is approved, then the Employee RSUs will be settled in shares of Company common

stock, but if it (ii) is not approved, the Employee RSUs will be settled in cash based upon the value per share of common

stock on the applicable vesting date.

The Company also granted in 2026, 2025 and 2024 291,260 , 89,285 , and 126,930 ,

respectively, time-based RSAs and RSUs to non-employee directors of the Company, which vest ratably in equal

installments quarterly over a one -year period.

Directors may elect to receive time-based RSAs or time-based RSUs that

have a deferred settlement date of their choosing .

Dividends or dividend equivalents are currently paid on all time-based

RSAs and Employee RSUs, and dividend equivalents are paid on deferred RSU awards during their deferral period.

The table below summarizes RSU and RSA activity, excluding performance-based equity awards.

See below for further

details on performance-based equity awards.

employees at a grant date fair value of $ 1.85 per Employee RSU.

The Employee RSUs will vest, in full, on December

31, 2028, based solely upon continued employment or service.

The Company also granted in 2026, 2025 and 2024

291,260 , 89,285 , and 126,930 , respectively, time-based RSAs and RSUs to non-employee directors of the Company,

which vest ratably in equal installments quarterly over a one -year period.

Directors may elect to receive time-based

RSAs or time-based RSUs that have a deferred settlement date of their choosing .

Dividends or dividend equivalents are

currently paid on all time-based RSAs and Employee RSUs, and dividend equivalents are paid on deferred RSU awards

during their deferral period.

The table below summarizes RSU and RSA activity, excluding Employee RSUs and performance-based equity awards.

See above and below for further details on Employee RSUs and performance-based equity awards, respectively.

Restricted Stock Units/Awards

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Outstanding, March 31, 2026

The Company recognized $ 1.6 million for the three months ended March 31, 2026 and $ 1.8 million for the three months

ended March 31, 2025 of non-cash compensation expense related to its stock-based incentive plan in the consolidated

statements of operations.

As of March 31, 2026 and December 31, 2025 , approximately $ 12.4 million and $ 11.9 million ,

respectively, of non-cash compensation expense related to unvested awards had not yet been charged to net income.

These costs are expected to be amortized into compensation expense ratably over the course of the remaining vesting

Outstanding, June 30, 2026

The Company recognized $ 2.5 million and $ 4.1 million for the three and six months ended June 30, 2026 , respectively

and $ 1.6 million and $ 3.4 million for the three and six months ended June 30, 2025 , respectively, of non-cash

compensation expense related to its stock-based incentive plan in the consolidated statements of operations.

June 30, 2026 and December 31, 2025 , approximately $ 10.8 million and $ 11.9 million , respectively, of non-cash

compensation expense related to unvested awards had not yet been charged to net income.

These costs are expected to be

amortized into compensation expense ratably over the course of the remaining vesting periods.

Performance-based equit y awards under the 2023 Equity Incentive Plan

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the key employees receive at the end of the performance period may range from 0 % to 100 % of the total award.

performance-based RSUs will be settled in cash or in shares of the Company’s common stock, dependent upon whether

the Company’s stockholders approve the 2023 EIP Amendment at the Company’s 2026 annual meeting of stockholders.

If the 2023 EIP Amendment (i) is approved, then the performance-based RSUs will be settled in shares of Company

common stock, but if it (ii) is not approved, the performance-based RSUs will be settled in cash based upon the value per

share of common stock on the applicable vesting date.

The fair value of the performance-based RSUs is recorded as

compensation expense over the performance period and will cliff vest at the end of the three -year performance period,

with an offsetting increase in stockholders’ equity.

Dividend equivalents are accrued by the Company during the

performance period and paid to the holder if and when the performance-based RSUs vest.

value of the performance-based RSUs is recorded as compensation expense over the performance period and will cliff

vest at the end of the three -year performance period, with an offsetting increase in stockholders’ equity.

equivalents are accrued by the Company during the performance period and paid to the holder if and when the

performance-based RSUs vest.

2025 performance-based RSUs.

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Company during the performance period and paid to the holder if and when the performance-based RSUs vest.

connection with a previously announced mutual separation of a former officer and the Company (the “Separation”) on

February 26, 2026 (the “Separation Date”), the former officer was entitled to the accelerated vesting, as of the Separation

Date, of 89,286 performance-based RSUs (at target) that he held as of the Separation Date.

2024 performance-based RSUs .

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Company during the performance period and paid to the holder if and when the performance-based RSUs vest.

connection with the Separation, the former officer was entitled to the accelerated vesting, as of the Separation Date, of

44,150 performance-based RSUs (at target) that he held as of the Separation Date.

Performance-based equity awards under the 2013 Equity Incentive Plan

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provisions that allow the holder to redeem the preferred stock for cash only if certain events occur, such as a change in

As of March 31, 2026 , the conversion rat e was 1.8400 shares of common stock per $ 25 principal amount of the

As of June 30, 2026 , the conversion rat e was 1.8391 shares of common stock per $ 25 principal amount of the

Series C Preferred Stock, which is equivalent to a conversion price of approximately $ 13.59 per s hare of common stock.

11 unchanged sentences

Annual Dividend

March 31, 2026

June 30, 2026

In the table above,

12 unchanged sentences

• The Company declared dividends of $ 0.1 million and $ 1.9 million on its Series C Preferred Stock and Series E

Preferred Stock, respectively, duri ng the three months ended March 31, 2026 .

Preferred Stock, respectively, duri ng the three months ended June 30, 2026 .

The dividends were paid on

April 15, 2026 for Ser ies C Preferred Stock and on April 30, 2026 for Series E Preferred Stock to the holders of

record as of the close of business on March 31, 2026 .

July 15, 2026 for Ser ies C Preferred Stock and on July 31, 2026 for Series E Preferred Stock to the holders of

record as of the close of business on June 30, 2026 .

• The Company may, at its option, redeem the Series E Preferred Stock, in whole or in part, at any time and from

3 unchanged sentences

prior to June 10, 202 6, except under certain conditions.

Private Warrants

As part of the Broadmark Merger, the Company assumed private placement warrants that represented the right to

purchase shares of Broadmark common stock, par value $ 0.001 per share .

As of March 31, 2026 , there were 5.2 million

private placement warrants outstanding, each representing the right to purchase 0.47233 shares of common stock.

Company has outstanding warrants to purchase approximately 2.5 million shares of common stock at a price of $ 24.34

per whole share.

Settlement of outstanding warrants will be in shares of common stock, unless the Company elects

(solely in the Company’s discretion) to settle warrants the Company has called for redemption in cash, and subject to

customary adjustment in the event of business combinations and certain tender offers.

The liability for the private

placement warrants was less than $ 0.1 million as of March 31, 2026 and is included in accounts payable and other

accrued liabilities in the consolidated balance sheets.

Equity ATM Program

5 unchanged sentences

The Company made no such sales through the Equity ATM Program during the

three months ended March 31, 2026 or March 31, 2025 .

As of March 31, 2026 , shares representing approximately

three and six months ended June 30, 2026 or June 30, 2025 .

As of June 30, 2026 , shares representing approximately

$ 78.4 million remain available for sale under the Equity ATM Program .

2 unchanged sentences

common stock used for purposes of these computations.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except for share and per share amounts)

6 unchanged sentences

$ ( 103,586 )

$ ( 307,374 )

Basic earnings - discontinued operations

6 unchanged sentences

$ ( 103,455 )

$ ( 307,112 )

Diluted earnings - discontinued operations

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in the operating partnership is reduced and the Company’s equity is increased.

As of both March 31, 2026 and

As of both June 30, 2026 and

December 31, 2025 , the non-controlling interest OP unit holders owned 320,005 OP units.

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payment of any net liability owed to the counterparty.

As of March 31, 2026 and December 31, 2025 , the Company was

in good standing on all of its ISDA Master Agreements or similar arrangements with its counterparties.

As of June 30, 2026 and December 31, 2025 , the Company was in

good standing on all of its ISDA Master Agreements or similar arrangements with its counterparties.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are listed under the Credit Support

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the Company intends to offset, and (d) the Company’s right of offset is enforceable at law.

As of March 31, 2026 and

As of June 30, 2026 and

December 31, 2025 , the Company has elected to offset assets and liabilities associated with its OTC derivative contracts

10 unchanged sentences

Balance Sheets

March 31, 2026

Interest rate swaps

June 30, 2026

Interest rate swaps

156 unchanged sentences

(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

22 unchanged sentences

and it would not be able to qualify as a REIT for the subsequent four taxable years.

As of March 31, 2026 and

As of June 30, 2026 and

December 31, 2025 , the Company was in compliance with all REIT requirements.

51 unchanged sentences

corporate overhead expenses.

Unallocated assets were $ 498.8 million and $ 382.8 million as of March 31, 2026 and

March 31, 2025 , respectively .

Three Months Ended March 31, 2026

Unallocated assets were $ 439.8 million and $ 400.9 million as of June 30, 2026 and

June 30, 2025 , respectively .

Three Months Ended June 30, 2026

(in thousands)

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Interest expense

Net interest income before provision for loan losses

Net interest income (loss) before provision for loan losses

Provision for loan losses

Net interest income after provision for loan losses

Net interest income (loss) after provision for loan losses

Non-interest income

1 unchanged sentence

Net unrealized gain (loss) on financial instruments

Valuation (allowance) recovery, loans held for sale

Servicing income, net

Income (loss) on unconsolidated joint ventures

Total non-interest income (loss)

Non-interest expense

Employee compensation and benefits

Allocated employee compensation and benefits from related party

Professional fees

Loan servicing expense

Impairment on real estate

Other operating expenses

Total non-interest expense

Loss before unallocated expenses and provision for income taxes

Unallocated corporate expenses

Employee compensation and benefits

Professional fees

Management fees – related party

Transaction related expenses

Other operating expenses - net

Total unallocated corporate expenses

Loss before provision for income taxes

$ ( 112,964 )

Six Months Ended June 30, 2026

(in thousands)

LMM Commercial

Small Business

Interest income

Interest expense

Net interest income (loss) before provision for loan losses

Provision for loan losses

Net interest income (loss) after provision for loan losses

$ ( 113,295 )

$ ( 113,017 )

Non-interest income

Net realized gain (loss) on financial instruments and real estate owned

Net unrealized gain (loss) on financial instruments

Valuation allowance, loans held for sale

Servicing income, net

Income on unconsolidated joint ventures

Income (loss) on unconsolidated joint ventures

Total non-interest income (loss)

7 unchanged sentences

Total non-interest expense

Income (loss) before unallocated expenses and provision for income taxes

$ ( 131,067 )

Loss before unallocated expenses and provision for income taxes

$ ( 274,265 )

Unallocated corporate income (expenses)

$ ( 302,227 )

Unallocated corporate expenses

Employee compensation and benefits

6 unchanged sentences

$ ( 329,725 )

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

(in thousands)

3 unchanged sentences

Interest expense

Net interest income before provision for loan losses

Provision for loan losses

Net interest income after provision for loan losses

Non-interest income

Net realized gain (loss) on financial instruments and real estate owned

Net unrealized gain (loss) on financial instruments

Valuation allowance, loans held for sale

Servicing income, net

Income (loss) on unconsolidated joint ventures

Total non-interest income (loss)

Non-interest expense

Employee compensation and benefits

Allocated employee compensation and benefits from related party

Professional fees

Loan servicing expense

Impairment on real estate

Other operating expenses

Total non-interest expense

Income (loss) before unallocated expenses and provision for income taxes

Unallocated corporate expenses

Loss on bargain purchase

Employee compensation and benefits

Professional fees

Management fees – related party

Transaction related expenses

Other operating expenses - net

Total unallocated corporate expenses

Loss before provision for income taxes

Six Months Ended June 30, 2025

(in thousands)

LMM Commercial

Small Business

Interest income

Interest expense

Net interest income before recovery of (provision for) loan losses

17 unchanged sentences

Total non-interest expense

$ ( 113,067 )

Income (loss) before unallocated expenses and provision for income taxes

9 unchanged sentences

Subsequent Events

In April of 2026, the Company redeemed all of its outstanding 6.20 % Senior Notes due 2026.

The Company has evaluated subsequent events through the issuance date of the consolidated financial statements and

determined that no additional disclosure is necessary.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements