What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-08 · 228 added, 145 removed, 997 unchanged (27% of the section changed)

36 unchanged sentences

• changes in interest rates, interest rate spreads, the yield curve or prepayment rates;

• our potential entry into certain hedging arrangements related to the delivery of shares of common stock upon

vesting of certain performance-based equity awards and restricted stock awards and the risk that such

arrangements may not have the desired impact and may expose us to additional risks, including the failure of

the counterparty to perform under the contracts;

• our entry into certain hedging arrangements related to the delivery of shares of common stock upon vesting of

certain performance-based equity awards and restricted stock awards and the risk that such arrangements may

not have the desired impact and may expose us to additional risks, including the failure of the counterparty to

perform under the contracts;

• the impact of inflation on our business;

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utilize derivative financial and hedging instruments in an effort to hedge the interest rate risk associated with such fixed

As of March 31, 2026 , all fixed rate loans are match funded in securitization.

Floating rate loans generally

have an adjustable interest rate equal to the sum of a fixed spread plus an index rate, such as the Secured Overnight

Financing Rate (“SOFR”) , which typically resets monthly.

As of March 31, 2026 , approximat e ly 80% of the loans in our

portfolio were floating rate loans, and 20% wer e fixed rate loans, based on carrying value.

As of June 30, 2026 , all fixed rate loans are match funded in securitization.

Floating rate loans generally have

an adjustable interest rate equal to the sum of a fixed spread plus an index rate, such as the Secured Overnight Financing

Rate (“SOFR”) , which typically resets monthly.

As of June 30, 2026 , approximat e ly 81% of the loans in our portfolio

were floating rate loans, and 19% wer e fixed rate loans, based on carrying value.

Current market conditions.

During the first quarter, macroeconomic concerns persisted including global market

During the second quarter, macroeconomic concerns persisted including global market

volatility, uncertainty about trade policies , geopolitical tensions , inflationary pressures and interest rates.

Federal Reserve did not decrease interest rates in the quarter and there is uncertainty regarding if and when decreases

Although the full impact of these changes remains uncertain and difficult to predict, concerns and

uncertainties about the economic outlook may adversely impact our financial condition, results of operations and cash

Federal Reserve held interest rates steady during the quarter and there is uncertainty regarding if and when decreases will

Although the full impact of these changes remains uncertain and difficult to predict, concerns and uncertainties

about the economic outlook may adversely impact our financial condition, results of operations and cash flows.

Results of Operations

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share, dividends declared per share, distributable earnings, return on equity, and net book value per share.

described below, distributable earnings is a measure that is not prepared in accordance with GAAP.

We use distributable

earnings to evaluate our performance and determine dividends, excluding the effects of certain transactions and GAAP

adjustments that we believe are not necessarily indicative of our current loan activity and operations.

Refer to “—Non-

GAAP Financial Measures” below for a reconciliation of net income to distributable earnings.

described below, distributable earnings and distributable return on equity are measures which are not prepared in

accordance with GAAP.

We use distributable earnings to evaluate our performance and determine dividends, excluding

the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current

loan activity and operations .

We use distributable return on equity because we believe it is the most relevant metric for

determining ongoing profitability period over period.

Refer to “—Non-GAAP Financial Measures” below for a

reconciliation of net income to distributable earnings and for the calculation of distributable return on equity.

The table below sets forth certain information on our operating results.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

($ in thousands, except share data)

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(1) Dividend yield is based on the respective period end closing share price.

Three months ended June 30, 2026.

Earnings from continuing operations was a loss of $0.63 per common share,

compared to $1.25 per common share in the prior quarter, principally due to a decrease in the provision for loan losses

and net realized losses on financial instruments and real estate owned, which were primarily driven by the sale of sub-

and non-performing assets pursuant to the balance sheet repositioning strategy which included strategic loan sales, and

transfers of loans to held-for-sale classifications.

Book value per common share was $6.83, a decline of $0.60 quarter

over quarter compared to a decline of $1.36 in the prior quarter.

The quarter over quarter decrease in the rate at which

book value per common share decreased was primarily driven by the wind down of the large portfolio sales that were

part of our balance sheet repositioning strategy.

Our Loan Pipeline

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The table below presents information on our investment portfolio originations (based on fully committed amounts).

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

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(in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

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$ (1,505,880)

As of March 31, 2026 , total assets in our consolidated balance sheet were $6.3 billion , a decrease of $1.5 billion from

As of June 30, 2026 , total assets in our consolidated balance sheet were $6.3 billion , a decrease of $1.5 billion from

December 31, 2025 , primarily reflecting a decrease in Assets of consolidated VIEs, Loans, held for sale and Loans, net.

Assets of consolidated VIEs decreased $0.9 billion , primarily due to the collapse of RCMF 2021-FL7 , RCMF 2023-

FL11 and RCMF 2023-FL12 and paydowns on securitized loans.

Loans, held for sale decreased $0.2 billion , primarily

due to loans sold, partially offset by loans transferred from Loans, net.

Loans, net decreased $0.1 billion , primarily due

to loan sales and loans transferred from Loans, net to Loans, held for sale, partially offset by the collapse of RCMF

2021-FL7, RCMF 2023-FL11 and RCMF 2023-FL12.

As of March 31, 2026 , total liabilities in our consolidated balance sheet were $4.9 billion , a decrease of $1.3 billion from

December 31, 2025 , primarily reflecting a decrease in Securitized debt obligations of consolidated VIEs, net and

Secured borrowings.

Securitized debt obligations of consolidated VIEs, net decreased $0.6 billion due to the collapse of

RCMF 2021-FL7, RCMF 2023-FL11 and RCMF 2023-FL12.

Secured borrowings decreased $0.5 billion due to payoffs,

partially offset by the collapse of RCMF 2021-FL7, RCMF 2023-FL11 and RCMF 2023-FL12.

As of March 31, 2026 , total stockholders’ equity was $1.4 billion , a decrease of $0.2 billion from December 31, 2025 ,

FL11, RCMF 2023-FL12 and RCMT 2016-3 and paydowns on securitized loans, partially offset by the closing of RCLT

Loans, held for sale decreased $0.3 billion , primarily due to loans sold, partially offset by loans transferred from

Loans, net decreased $0.1 billion , primarily due to loan sales, loans transferred from Loans, net to Loans,

held for sale, and the closing of RCLT 2026-4, partially offset by the collapse of RCMF 2021-FL7, RCMF 2023-FL11,

RCMF 2023-FL12 and RCMT 2016-3.

As of June 30, 2026 , total liabilities in our consolidated balance sheet were $4.9 billion , a decrease of $1.2 billion from

December 31, 2025 , primarily reflecting a decrease in Secured borrowings and Securitized debt obligations of

consolidated VIEs, net, partially offset by an increase in Guaranteed loan financing.

Secured borrowings decreased $0.9

billion due to the closing of RCLT 2026-4 and payoffs, partially offset by the collapse of RCMF 2021-FL7, RCMF

2023-FL11, RCMF 2023-FL12 and RCMT 2016-3.

Securitized debt obligations of consolidated VIEs, net decreased

$0.5 billion due to the collapse of RCMF 2021-FL7, RCMF 2023-FL11, RCMF 2023-FL12 and RCMT 2016-3, partially

offset by the closing of RCLT 2026-4.

Guaranteed loan financing increased $0.4 billion due to the closing of RCLT

As of June 30, 2026 , total stockholders’ equity was $1.3 billion , a decrease of $0.3 billion from December 31, 2025 ,

primarily due to net losses.

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Small Business

March 31, 2026

June 30, 2026

Loans, held for sale

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Statement of Operations Analysis and Metrics

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

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Total interest expense

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

Net interest income before (provision for) recovery of

(Provision for) recovery of loan losses

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Total (provision for) recovery of loan losses

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

Net interest income (loss) after (provision for) recovery

of loan losses

Non-interest income (loss)

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Unallocated corporate expenses

Total net income (loss) before provision for income taxes

Total net income (loss) before provision for income

Results of Operations – Supplemental Information.

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The table below presents the components of realized and unrealized gains (losses) on financial instruments.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

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Total Loans, held for sale

Net unrealized gain (loss) on preferred equity, at fair value

Net unrealized gain (loss) on preferred equity, at fair

Net unrealized gain (loss) on derivatives, at fair value

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Q2 2026 versus Q2 2025 .

Interest income of $58.9 million represented a decrease of $66.1 million , primarily due to

decreased loan balances primarily driven by loan sales and an increased balance of loans on non-accrual status driven by

a higher probability that principal and interest will not be collected under the original contractual terms.

Interest expense

of $80.7 million represented a decrease of $39.7 million , driven by decreased loan balances and interest rates.

for loan losses of $66.5 million represented an increase of $184.5 million , due to changes in the forecasted

macroeconomic inputs for reserve modeling and an increase in asset specific reserves, partially offset by loans

transferred from Loans, net to Loans, held for sale .

Interest income of $53.9 million represented a decrease of $68.3 million , due to a decrease in

loan balances and an increase in non-accrual loan s.

Decreased loan balances were primarily driven by reduced

origination activity, portfolio runoff, loan maturities, strategic loan sales, and transfers of loans to held-for-sale

classifications in connection with a broader balance sheet repositioning and liquidity strategy in response to upcoming

2026 debt maturities.

Increase in non-accrual loans was principally driven by adverse macroeconomic conditions

including elevated interest rates, inflationary pressures, supply absorption challenges, and cap rate movements.

expense of $65.2 million represented a decrease of $50.8 million , driven by decreased loan balances as described above.

Provision for loan losses of $13.7 million represented an increase of $8.5 million , primarily due to an increase in asset

specific reserves .

Non-interest loss of $19.3 million represented a decrease of $17.3 million , primarily due to an increase

in the valuation recovery and income from the Portland mixed-use asset, partially offset by an increase in realized losses

on financial instruments related to loan sales .

Non-interest expense of $32.7 million represented an increase of $5.2

million , due to an increase in other operating expenses primarily driven by operating costs and depreciation related to the

Portland mixed-use asset .

YTD 2026 versus YTD 2025 .

Interest income of $112.8 million represented a decrease of $134.4 million , due to a

decrease in loan balances and an increase in non-accrual loans.

Decreased loan balances were primarily driven by

reduced origination activity, portfolio runoff, loan maturities, strategic loan sales, and transfers of loans to held-for-sale

classifications in connection with a broader balance sheet repositioning and liquidity strategy in response to upcoming

2026 debt maturities.

Increase in non-accrual loans was principally driven by adverse macroeconomic conditions

including elevated interest rates, inflationary pressures, supply absorption challenges, and cap rate movements.

expense of $145.9 million represented a decrease of $90.5 million , driven by decreased loan balances as described

Provision for loan losses of $80.2 million represented an increase of $193.0 million , primarily due to changes in

the forecasted macroeconomic inputs for reserve modeling and an increase in asset specific reserves, partially offset by

loans transferred from Loans, net to Loans, held for sale.

Non-interest loss of $87.3 million represented a decrease of

million , primarily due to a decrease in the transfer of Loans, net to Loans, held for sale and the recovery of the valuation

allowance from loans sold, partially offset by n et realized losses on financial instruments and real estate owned driven by

Non-interest expense of $40.9 million represented an increase of $13.2 million , due to an increase in other

operating expenses primarily driven by hotel expenses.

$63.7 million , primarily due to a decrease in the valuation allowance and income from the Portland mixed-use asset,

partially offset by an increase in realized losses on financial instruments related to loan sales.

Non-interest expense of

$73.7 million represented an increase of $18.4 million , due to an increase in other operating expenses primarily driven

by operating costs and depreciation related to the Portland mixed-use asset .

Small Business Lending Segment Results.

Q2 2026 versus Q2 2025 .

Interest income of $23.5 million represented a decrease of $7.0 million , primarily due to a

decrease in average loan balances and a decrease in interest rates .

Interest expense of $17.6 million represented a

decrease of $2.1 million , driven by a decrease in average loan balances and a decrease in interest rates.

Provision for loan

losses of $7.9 million represented an increase of $4.4 million , due to an increase in asset specific reserves and changes in

the forecasted macroeconomic inputs for reserve modeling.

Non-interest income of $10.1 million represented a decrease

of $14.0 million , primarily due to a decrease in realized and unrealized gains on financial instruments, partially offset by

servicing income.

Non-interest expense of $28.2 million represented an increase of $0.4 million , due to increases in loan

servicing expense, partially offset by decreases in loan origination expenses.

YTD 2026 versus YTD 2025 .

Interest income of $46.3 million represented a decrease of $14.2 million , primarily due to

decreased loan balances and interest rates.

Interest expense of $16.2 million represented a decrease of $4.0 million ,

driven by decreased loan balances and interest rates.

Provision for loan losses of $4.4 million represented a decrease of

$4.0 million , due to changes in the forecasted macroeconomic inputs for reserve modeling, partially offset by an increase

in specific loan reserves.

Non-interest income of $19.1 million represented a decrease of $17.4 million , primarily due to

a decrease in n et realized gains on financial instruments .

Non-interest expense of $29.2 million was essentially

unchanged from the prior year period.

a decrease in average loan balances and a decrease in interest rates.

Interest expense of $33.8 million represented a

decrease of $6.1 million , driven by a decrease in average loan balances and a decrease in interest rates.

Provision for loan

losses of $12.2 million represented an increase of $0.4 million , due to an increase in asset specific reserves and changes

in the forecasted macroeconomic inputs for reserve modeling.

Non-interest income of $29.1 million represented a

decrease of $31.4 million , primarily due to a decrease in net realized gains on financial instruments.

expense of $57.4 million represented a decrease of $0.4 million , due to decreases in employee compensation and benefits

and loan origination expenses.

Unallocated – Corporate.

Q2 2026 versus Q2 2025 .

Non-interest income of $0.9 million represented a decrease of $102.8 million due to a gain on

bargain purchase recognized from the UDF IV Merger in the prior year period, primarily driven by a discount in UDF

IV’s market valuation due to factors such as the illiquid nature of UDF IV’s shares, and a change in our stock price

between the date of the agreement and the closing date of the UDF IV Merger .

Non-interest expense of $12.6 million

represented a decrease of $2.2 million , primarily due to decreased transaction related expenses.

Non-interest income of $0.8 million represented an increase of $15.0 million , primarily due to

a lower gain on bargain purchase recognized from the UDF IV Merger in the prior year period .

Such gain on bargain

purchase was primarily driven by a discount in UDF IV’s market valuation due to factors such as the illiquid nature of

UDF IV’s shares, and a change in our stock price between the date of the agreement and the closing date of the UDF IV

Merger, when compared to the respective prior year period gain on bargain purchase recognized from the Funding Circle

Non-interest expense of $16.7 million represented an increase of $1.6 million , primarily due to an increase

in employee compensation and benefits, partially offset by decreased management fees.

YTD 2026 versus YTD 2025 .

Non-interest income of $1.7 million represented a decrease of $87.8 million , primarily due

to a gain on bargain purchase recognized from the UDF IV Merger in the prior year period, primarily driven by a

discount in UDF IV’s market valuation due to factors such as the illiquid nature of UDF IV’s shares, and a change in our

stock price between the date of the agreement and the closing date of the UDF IV Merger .

Non-interest expense of $29.2

million represented a decrease of $0.6 million , primarily due to decreased management fees and transaction related

expenses, partially offset by an increase in employee compensation and benefits .

Non-GAAP financial measures

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distributable earnings before realized losses may not be comparable to other similarly-titled measures of other

Distributable return on equity is calculated as distributable earnings (loss) as a percentage of average stockholders’

To qualify as a REIT, we must distribute to our stockholders each calendar year dividends equal to at least 90% of our

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Three Months Ended

Six Months Ended

(in thousands)

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Distributable earnings (loss) attributable to common stockholders

Distributable earnings (loss) before realized losses on investments, net of tax per

common share - basic

Distributable earnings (loss) before realized losses on investments, net of tax per

common share - diluted

Distributable earnings (loss) before realized losses on investments, net of tax

per common share - basic

Distributable earnings (loss) before realized losses on investments, net of tax

per common share - diluted

Distributable earnings (loss) per common share - basic

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Q2 2026 versus Q2 2025 .

Consolidated net loss of $200.1 million for the three months ended March 31, 2026

represented an increase of $282.1 million from the three months ended March 31, 2025 , primarily due to provision for

loan losses due to changes in the forecasted macroeconomic inputs for reserve modeling and an increase in asset specific

reserves, partially offset by a decrease in the provision for loan losses related to loans transferred from Loans, net to

Loans, held for sale, a gain on bargain purchase recognized from the UDF IV Merger in the prior year period, primarily

Consolidated net loss of $99.7 million for the second quarter of 2026 represented an increase

of $46.0 million from the second quarter of 2025 , primarily due to net realized losses on financial instruments, a

decrease in net interest income and an increase in other operating expenses and provision for loan losses, partially offset

by a decrease in the valuation allowance.

Consolidated distributable loss before realized losses of $35.1 million for the

second quarter of 2026 represented an increase of $22.4 million from the second quarter of 2025 .

The decrease in the

distributable earnings reconciling items is primarily due to a decrease in the valuation allowance, partially offset by

realized losses on sale of investments.

Consolidated distributable loss of $73.6 million for the second quarter of 2026

represented an increase of $53.8 million from the second quarter of 2025 due to certain charge-offs and losses realized

on sales of real estate owned assets and LMM loans.

YTD 2026 versus YTD 2025 .

Consolidated net loss of $299.8 million for the six months ended June 30, 2026

represented an increase of $328.1 million from the six months ended June 30, 2025 , primarily due to an increase in the

provision for loan losses, net realized losses on financial instruments, a gain on bargain purchase recognized from the

UDF IV Merger in the prior year period, primarily driven by a discount in UDF IV’s market valuation due to factors

such as the illiquid nature of UDF IV’s shares, and a change in our stock price between the date of the agreement and the

closing date of the UDF IV Merger and a decrease in net interest income, partially offset by a decrease in the valuation

Consolidated distributable loss before realized losses of $84.3 million for the six months ended June 30, 2026

represented an increase of $75.8 million from the six months ended June 30, 2025 .

The increase in the distributable

earnings reconciling items is primarily due to an increase in the provision for loan losses, realized losses on sale of

investments and a gain on bargain purchase recognized from the UDF IV Merger in the prior year period, primarily

driven by a discount in UDF IV’s market valuation due to factors such as the illiquid nature of UDF IV’s shares, and a

change in our stock price between the date of the agreement and the closing date of the UDF IV Merger and net r ealized

losses on financial instruments and real estate owned driven by loan sales , partially offset by decrease in the valuation

allowance related to the transfer of Loans, net to Loans, held for sale driven by loan sales.

Consolidated distributable

losses before realized losses of $49.2 million for the three months ended March 31, 2026 represented an increase of

$53.3 million from the three months ended March 31, 2025 .

The increase in the distributable earnings reconciling items

is primarily due to an increase in the provision for loan losses, a gain on bargain purchase recognized from the UDF IV

Merger in the prior year period and realized losses on sale of investments, partially offset by a decrease in the valuation

allowance related to the transfer of Loans, net to Loans, held for sale .

Consolidated distributable losses of $159.8 million

for the three months ended March 31, 2026 represented an increase of $148.5 million from the three months ended

March 31, 2025 due to certain charge-offs and losses realized on sales of real estate owned assets and LMM loans.

change in our stock price between the date of the agreement and the closing date of the UDF IV Merger and a decrease

in net interest income, partially offset by a decrease in the valuation allowance.

Consolidated distributable loss of $233.5

million for the six months ended June 30, 2026 represented an increase of $202.3 million from the six months ended

June 30, 2025 due to certain charge-offs and losses realized on sales of real estate owned assets and LMM loans.

Incentive distribution payable to our Manager

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provided by operating and investing activities.

We believe that our sources of liquidity will provide sufficient liquidity to fund ongoing obligations and address

upcoming debt maturities, including the approximately $450.0 million of debt maturing in 2026.

We had approximately

$200.0 million of unrestricted cash and approximately $700.0 million of unencumbered assets as of March 31, 2026 .

expect approximately $450 million in net liquidity from portfolio maturities and pending asset resolutions over the next

12 months, and may also sell additional assets.

We expect the combination of these items to de-lever the balance sheet,

which may impact book value depending on the size, timing and pricing of such actions.

We expect to utilize these

resources, together with our access to the capital markets, to meet our liquidity needs .

We believe that our ability to extend our credit and warehouse facilities and our sources of capital will provide sufficient

liquidity to fund ongoing obligations and address upcoming debt maturities, including the approximately $450.0 million

of debt maturing in 2026.

We had approximately $124.0 million of unrestricted cash and approximately $690.0 million

of unencumbered assets as of June 30, 2026 .

With the successful execution of our liquidity initiatives including portfolio

sales and runoff, along with optimizing financing on CRE loans, we expect to be well positioned to address our

upcoming debt maturities .

We expect to utilize these resources, together with our access to the capital markets, to meet

our liquidity needs .

We are continuing to monitor the impact of shifts in interest rates, credit spreads and inflation on the Company, the

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changing and difficult to predict, the impact on our operations and liquidity also remains uncertain and difficult to

Three Months Ended March 31, 2026 .

Cash and cash equivalents as of March 31, 2026 , decreased by $8.3 million to

$241.2 million from December 31, 2025 , primarily due to net cash used for financing activities, partially offset by net

cash provided by investing and operating activities.

Six Months Ended June 30, 2026 .

Cash, cash equivalents and restricted cash as of June 30, 2026 , decreased by $71.8

million to $177.8 million from December 31, 2025 , primarily due to net cash used for financing activities, partially offset

by net cash provided by investing and operating activities.

T he net cash used for financing activities primarily reflected

repayments of securitized debt obligations of consolidated VIEs and net repayments of secured borrowings.

net repayments of secured borrowings and repayments of securitized debt obligations of consolidated VIEs.

provided by investing activities primarily reflected proceeds from disposition and principal payments of loans, partially

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Loans, held for sale, realized losses on financial instruments and provision for loan losses, partially offset by net losses .

Three Months Ended March 31, 2025 .

C ash and cash equivalents as of March 31, 2025 , increased by $65.6 million to

$248.4 million from December 31, 2024 , primarily due to net cash provided by investing and operating activities,

partially offset by net cash used for financing activities.

The net cash provided by investing activities primarily reflected

proceeds from disposition and principal payments of loans, partially offset by net cash used for loan originations.

cash provided by operating activities reflected a valuation allowance related to the transfer of Loans, net to Loans held

for sale, the sale of Loans, held for sale, and net income, partially offset by a recovery of loan losses related to the

transfer of Loans, net to Loans, held for sale and a bargain purchase gain in connection with the UDF IV Merger, which

was primarily driven by a discount in UDF IV’s market valuation due to factors such as the illiquid nature of UDF IV’s

shares and a change in our stock price between the date of the agreement and the closing date of the merger .

used for financing activities primarily reflected repayments of securitized debt obligations of consolidated VIEs, partially

offset by net proceeds from secured borrowings.

Six Months Ended June 30, 2025 .

C ash, cash equivalents and restricted cash as of June 30, 2025 , increased by $39.7

million to $222.5 million from December 31, 2024 , primarily due to net cash provided by investing and operating

activities, partially offset by net cash used for financing activities.

The net cash provided by investing activities primarily

reflected proceeds from disposition and principal payments of loans, partially offset by net cash used for loan

originations.

The net cash provided by operating activities reflected a valuation allowance related to the transfer of

Loans, net to Loans held for sale, the sale of Loans, held for sale and net income, partially offset by a recovery of loan

losses related to the transfer of Loans, net to Loans, held for sale and a bargain purchase gain in connection with the

UDF IV Merger, which was primarily driven by a discount in UDF IV’s market valuation due to factors such as the

illiquid nature of UDF IV’s shares and a change in our stock price between the date of the agreement and the closing

date of the merger .

The net cash used for financing activities primarily reflected repayments of securitized debt

obligations of consolidated VIEs, partially offset by net proceeds from secured borrowings.

Financing Strategy and Leverage

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We also finance originated SBL with secured borrowings until the loans are sold, generally within 30 days.

As of March 31, 2026 , we had a total leverage ratio of 3.0x and recourse leverage ratio of 1.8x .

As of June 30, 2026 , we had a total leverage ratio of 3.0x and recourse leverage ratio of 1.7x .

Our operating segments

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Carrying Value

March 31, 2026

June 30, 2026

December 31, 2025

April 2026 to June 2027

August 2026 to June 2027

Prime - 0.82%

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

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

Repurchase Agreements.

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Carrying Value

March 31, 2026

June 30, 2026

December 31, 2025

September 2028

August 2026 -

September 2028

July 2026 - November

Total borrowings under repurchase agreements

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Highest Month End Balance in Quarter

The net decrease in the outstanding balances during the first quarter of 2026 was primarily due to the sales and

paydowns of warehouse loans, partially offset by the collapse of RCMF 2021-FL7, RCMF 2023-FL11 and RCMF 2023-

The net decrease in the outstanding balances during the second quarter of 2026 was primarily due to paydowns and sales

of warehouse loans and the wind-down of repurchase facilities.

Paycheck Protection Program Liquidity Facility borrowings.

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The program charges an interest rate of 0.35%.

As of March 31, 2026 , we had approximately $3.8

million outstanding under this credit facility.

As of June 30, 2026 , this credit facility was fully

Senior Secured Notes and Corporate Debt, Net

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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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(“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 covenants.

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 covenants.

Securitization transactions

10 unchanged sentences

Collateral Asset Class

Active / Collapsed

Collapsed / Sold

Trusts (Firm sponsored)

18 unchanged sentences

Acquired SBA 7(a) loans

ReadyCap Lending Small Business Loan Trust 2026-4 (RCLT 2026-4)

Originated SBA 7(a) loans

Real Estate Mortgage Investment Conduits (REMICs)

78 unchanged sentences

Other than the items referenced above, there have been no material changes to our contractual obligations for the three

months ended March 31, 2026 .

months ended June 30, 2026 .

Refer to Item 7, "Management’s Discussion and Analysis of Financial Condition and

101 unchanged sentences

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 2. Management’s Discussion and Analysis