Investor Presentaiton
Return on Equity
READY CAPITAL.
Distributable
Levered
Segment
(1)
Yield
Levered
Yield (1)
Equity
Allocation
(2)
GAAP ROE
(2)
Distributable ROE
Q2'21
Q1'21
Q2'21
Q1'21
Loan Acquisitions
11.9 %
11.9 %
29.3 %
SBC Originations
14.0 %
14.0 %
60.0 %
18.4 %
24.3 %
19.6 %
19.1 %
Small Business Lending
99.2 %
99.2 %
5.6 %
Residential Mortgage Banking
(3)
17.1 %
41.9 %
5.0 %
Corporate leverage, net of non-earning assets
Gross return on equity
2.6
1.9
3.1
0.3
21.0 %
26.2 %
22.7 %
19.4 %
Realized & unrealized gains, net
2.4
2.7
2.4
2.7
Loan loss recovery (provision)
PPP revenue, net of direct expenses
Non-recurring gains, losses and expenses
(2.0)
(0.5)
1
4.8
1.6
4.8
1.6
(0.9)
(2.7)
Operating expenses
(10.6)
(9.8)
(10.3)
(9.4)
Investment advisory fees
(1.0)
(1.2)
(1.0)
(1.2)
Benefit (Provision) for income taxes
(2.5)
(3.9)
(3.1)
(2.1)
Dividends on preferred stock
(1.2)
(0.1)
(1.2)
(0.1)
Return on equity
10.0 %
12.8 %
13.8 %
10.9 %
1. Levered yield includes interest income, accretion of discount, MSR creation, income
from unconsolidated joint ventures, realized gains (losses) on loans held for sale,
unrealized gains (losses) on loans held for sale and servicing income net of interest
expense and amortization of deferred financing costs on an annualized basis.
2. GAAP ROE is based on GAAP Net Income, while Distributable ROE is based on
Distributable Earnings, which adjusts GAAP Net Income for certain items detailed on
the "Distributable Earnings Reconciliation" slide.
3. ROE based on net income before tax of the Residential Mortgage Banking business
line divided by the business line's average monthly equity.
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