Residential Mortgage Banking Overview
Loan Portfolio - Risk Rating
RISK RATING DISTRIBUTION
100%
89%
79%
80%
60%
40%
40%
20%
0%
1 & 2
14%15%
4%
■SBC Acquired
AVERAGE RISK RATING
16%
30%
3% 4%
3% 2%
3
4
5
■SBC Originated
■SBA
4.00
3.50
3.16
2.91
3.00
2.67
2.62
2.66
2.50
2.14
2.00
1.67
1.60 1.66
1.621.67
1.921.71
1.59
1.41
1.50
1.00
0.50
Q3'22
Q4'22
Q1'23
■SBC Acquired
■SBC Originated
Q2'23
■SBA
Q3'23
RISK RATING CRITERIA
READY CAPITAL.
BUCKET 1:
Very Low Risk of Loss: New origination or current with strong
credit metrics (LTV/DSCR/DY). No expected losses.
BUCKET 2:
Low Risk of Loss: Current with maturity > 6 months. Lower credit
metrics with possibility of inclusion on CREFC watchlist. No
expected losses.
BUCKET 3:
Medium Risk of Loss: Current with near term maturities or in
forbearance. Loss unlikely with no specific reserves booked.
BUCKET 4:
Higher Risk: Loan delinquent or in maturity default. Potential
issues with sponsor or business plans. Minimal losses possible
and adequately reserved in current period.
BUCKET 5:
Highest risk: Loan in default or special servicing. Specific losses
identified and adequately reserved for in current period.
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