Item 1.
Financial Statements
3
Item 1A. Forward-Looking Statements 66
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
​
INTRODUCTION
​
Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. Our MD&A is presented in five main sections:
​
| ● | Overview |

| ● | Results of Operations |

| ● | Liquidity and Capital Resources |

| ● | Off-Balance Sheet Arrangements and Contractual Obligations |

| ● | Critical Accounting Policies and Estimates |

​
The following discussion should be read in conjunction with our unaudited interim consolidated financial statements and accompanying Notes included in Item 1, "Financial Statements," of this quarterly report on Form 10-Q and with Items 6, 7, 8, and 9A of our annual report on Form 10-K. See "Forward-Looking Statements" in this quarterly report on Form 10-Q and in our annual report on Form 10-K and "Critical Accounting Policies and Use of Estimates" in our annual report on Form 10-K for certain other factors that could cause actual results or future events to differ, perhaps materially, from historical performance and from those anticipated in the forward-looking statements included in this quarterly report on Form 10-Q.
​
OVERVIEW
​
Our Business
​
We are a multi-strategy real estate finance company that originates, acquires, finances, and services SBC loans, SBA loans, residential mortgage loans, and to a lesser extent, MBS collateralized primarily by SBC loans, or other real estate-related investments. Our loans generally range in original principal amounts up to $35 million and are used by businesses to purchase real estate used in their operations or by investors seeking to acquire small multi-family, office, retail, mixed use or warehouse properties. Our originations and acquisition platforms consist of the following four operating segments:
​
| ● | Acquisitions. We acquire performing and non-performing SBC loans as part of our business strategy. We hold performing SBC loans to term, and we seek to maximize the value of the non-performing SBC loans acquired by us through borrower-based resolution strategies. We typically acquire non-performing loans at a discount to their unpaid principal balance (“UPB”) when we believe that resolution of the loans will provide attractive risk-adjusted returns. We also acquire purchased future receivables through our Knight Capital platform. |

​
| ● | SBC Originations. We originate SBC loans secured by stabilized or transitional investor properties using multiple loan origination channels through our wholly-owned subsidiary, ReadyCap Commercial, LLC (“ReadyCap Commercial”). These originated loans are generally held-for-investment or placed into securitization structures. Additionally, as part of this segment, we originate and service multi-family loans |

68
| under the Federal Home Loan Mortgage Corporation’s Small Balance Loan Program (“Freddie Mac” and the “Freddie Mac program”). These originated loans are held for sale, then sold to Freddie Mac. |
| ● | SBA Originations, Acquisitions and Servicing. We acquire, originate and service owner-occupied loans guaranteed by the SBA under its Section 7(a) loan program (the “SBA Section 7(a) Program”) through our wholly-owned subsidiary, ReadyCap Lending, LLC (“ReadyCap Lending”). We hold an SBA license as one of only 14 non-bank Small Business Lending Companies (“SBLCs”) and have been granted preferred lender status by the SBA. These originated loans are either held-for-investment, placed into securitization structures, or sold. |
| ● | Residential Mortgage Banking. We operate our residential mortgage loan origination segment through our wholly-owned subsidiary, GMFS, LLC ("GMFS"). GMFS originates residential mortgage loans eligible to be purchased, guaranteed or insured by the Federal National Mortgage Association (“Fannie Mae”), Freddie Mac, Federal Housing Administration (“FHA”), U.S. Department of Agriculture (“USDA”) and U.S. Department of Veterans Affairs (“VA”) through retail, correspondent and broker channels. These originated loans are then sold to third parties, primarily agency lending programs. |

| ● | the interest expense associated with our variable-rate borrowings to increase; |
| ● | the value of fixed-rate loans, MBS and other real estate-related assets to decline; |
| ● | coupons on variable-rate loans and MBS to reset to higher interest rates; and |
| ● | prepayments on loans and MBS to slow. |
| ● | the interest expense associated with variable-rate borrowings to decrease; |
| ● | the value of fixed-rate loans, MBS and other real estate-related assets to increase; |
| ● | coupons on variable-rate loans and MBS to reset to lower interest rates; and |
| ● | prepayments on loans and MBS to increase. |

The spread between the yield on our assets and our funding costs is an important factor in the performance of this aspect of our business. Wider spreads imply greater income on new asset purchases but may have a negative impact on our stated book value. Wider spreads generally negatively impact asset prices. In an environment where spreads are widening, counterparties may require additional collateral to secure borrowings which may require us to reduce leverage by selling assets. Conversely, tighter spreads imply lower income on new asset purchases but may have a positive impact on our stated book value. Tighter spreads generally have a positive impact on asset prices. In this case, we may be able to reduce the amount of collateral required to secure borrowings.​Loan and ABS Extension Risk​Waterfall estimates the projected weighted-average life of our investments based on assumptions regarding the rate at which the borrowers will prepay the underlying mortgages and/or the speed at which we are able to liquidate an asset. If the timeline to resolve non-performing assets extends, this could have a negative impact on our results of operations, as carrying costs may therefore be higher than initially anticipated. This situation may also cause the fair market value of our investment to decline if real estate values decline over the extended period. In extreme situations, we may be forced to sell assets to maintain adequate liquidity, which could cause us to incur losses.​Credit Risk​We are subject to credit risk in connection with our investments in loans and ABS and other target assets we may acquire in the future. Increases in defaults and delinquencies will adversely impact our operating results, while declines in rates of default and delinquencies will improve our operating results from this aspect of our business. Default rates are influenced by a wide variety of factors, including, property performance, property management, supply and demand factors, construction trends, consumer behavior, regional economics, interest rates, the strength of the United States economy and other factors beyond our control. All loans are subject to the possibility of default. We seek to mitigate this risk by seeking to acquire assets at appropriate prices given anticipated and unanticipated losses and by deploying a value-driven approach to underwriting and diligence, consistent with our historical investment strategy, with a focus on projected cash flows and potential risks to cash flow. We further mitigate our risk of potential losses while managing and servicing our loans by performing various workout and loss mitigation strategies with delinquent borrowers. Nevertheless, unanticipated credit losses could occur which could adversely impact operating results.​Size of Investment Portfolio​The size of our investment portfolio, as measured by the aggregate principal balance of our loans and ABS and the other assets we own, is also a key revenue driver. Generally, as the size of our investment portfolio grows, the amount of interest income and realized gains we receive increases. A larger investment portfolio, however, drives increased expenses, as we may incur additional interest expense to finance the purchase of our assets.​Current market conditions​ The outbreak of the COVID-19 pandemic around the globe continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The impact of the outbreak has been rapidly evolving, with several countries taking drastic measures to limit the spread of the virus by instituting quarantines or lockdowns and imposing travel restrictions. While some of these restrictions have been relaxed or phased out, many of these or similar restrictions remain in place, continue to be implemented or additional restrictions are being considered. Such actions are creating significant disruptions to global supply chains and adversely impacting several industries, including but not limited to airlines, hospitality, retail, and the broader real estate industry. The major disruption caused by COVID-19 significantly reduced economic activity in most of the United States resulting in a significant increase in unemployment claims. COVID-19 has had a continued and prolonged adverse impact on economic and market conditions and has had a period of global economic slowdown which could have a material adverse effect on the Company’s results and financial condition.​ The full impact of COVID-19 on the real estate industry, the commercial real estate market, the small business lending market and the credit markets generally, and consequently on the Company’s financial condition and results of operations is uncertain and cannot be predicted at the current time as it depends on several factors beyond the control of the Company including, but not limited to, (i) the uncertainty around the severity and duration of the outbreak, (ii) the effectiveness of 71
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (in thousands, except share data) | ​ | 2020 | ​ | 2019 | ​ | 2020 | ​ | 2019 |
| Net Income | ​ | $ | 35,363 | ​ | ​ | $ | 12,427 | ​ | ​ | $ | 18,510 | ​ | ​ | $ | 54,120 | ​ |
| Earnings per common share - basic | ​ | $ | 0.63 | ​ | ​ | $ | 0.27 | ​ | ​ | $ | 0.32 | ​ | ​ | $ | 1.29 | ​ |
| Earnings per common share - diluted | ​ | $ | 0.63 | ​ | ​ | $ | 0.27 | ​ | ​ | $ | 0.31 | ​ | ​ | $ | 1.29 | ​ |
| Core Earnings | ​ | $ | 32,126 | ​ | ​ | $ | 18,249 | ​ | ​ | $ | 72,574 | ​ | ​ | $ | 46,297 | ​ |
| Core Earnings per common share - basic and diluted | ​ | $ | 0.57 | ​ | ​ | $ | 0.40 | ​ | ​ | $ | 1.30 | ​ | ​ | $ | 1.10 | ​ |
| Dividends declared per common share | ​ | $ | 0.30 | ​ | ​ | $ | 0.40 | ​ | ​ | $ | 0.95 | ​ | ​ | $ | 1.20 | ​ |
| Dividend yield(1) | ​ | ​ | 10.7 | % | ​ | ​ | 10.1 | % | ​ | ​ | 10.7 | % | ​ | ​ | 10.1 | % |
| Book value per common share | ​ | $ | 14.86 | ​ | ​ | $ | 16.20 | ​ | ​ | $ | 14.86 | ​ | ​ | $ | 16.20 | ​ |
| Adjusted net book value per common share(2) | ​ | $ | 14.84 | ​ | ​ | $ | 16.16 | ​ | ​ | $ | 14.84 | ​ | ​ | $ | 16.16 | ​ |
| (1) Based on the closing share price on September 30, 2020 and 2019, respectively. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (2) Excludes the equity component of our 2017 convertible note issuance. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended | ​ | Three Months Ended | ​ | Nine Months Ended | ​ | Nine Months Ended |
| (in thousands) | ​ | September 30, 2020 | ​ | September 30, 2019 | ​ | September 30, 2020 | ​ | September 30, 2019 |
| Loan originations | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| SBC loan originations | ​ | $ | 122,487 | ​ | $ | 465,374 | ​ | $ | 750,164 | ​ | $ | 1,176,942 |
| SBA loan originations | ​ | ​ | 82,912 | ​ | ​ | 48,244 | ​ | ​ | 149,283 | ​ | ​ | 146,021 |
| Residential agency mortgage loan originations | ​ | ​ | 1,184,237 | ​ | ​ | 656,791 | ​ | ​ | 3,066,711 | ​ | ​ | 1,519,377 |
| Total loan originations | ​ | $ | 1,389,636 | ​ | $ | 1,170,409 | ​ | $ | 3,966,158 | ​ | $ | 2,842,340 |
| Total loan acquisitions | ​ | $ | 20,989 | ​ | $ | 77,900 | ​ | $ | 72,483 | ​ | $ | 568,784 |
| Total loan investment activity | ​ | $ | 1,410,625 | ​ | $ | 1,248,309 | ​ | $ | 4,038,641 | ​ | $ | 3,411,124 |

The following table provides a detailed breakdown of our calculation of return on equity and core return on equity for the three months ended September 30, 2020. Core return on equity is not a measure calculated in accordance with GAAP and is defined further within Item 7 – Non-GAAP Financial Measures in our 2019 Annual report on Form 10-K.​​​74
Portfolio Metrics​SBC Originations​The following table includes certain portfolio metrics related to our SBC originations segment:​​75
SBA Originations, Acquisitions, and Servicing​The following table includes certain portfolio metrics related to our SBA originations, acquisitions and servicing segment: ​​76
Acquired Portfolio​The following table includes certain portfolio metrics related to our acquisitions segment:​​​77
Residential Mortgage Banking​The following table includes certain portfolio metrics related to our residential mortgage banking segment:​78
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | September 30, | ​ | June 30, | ​ | $ Change | ​ | % Change |
| (In Thousands) | 2020 | 2020 | ​ | Q3'20 vs. Q2'20 | ​ | Q3'20 vs. Q2'20 |
| Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash and cash equivalents | ​ | $ | 149,847 | ​ | $ | 257,017 | ​ | $ | (107,170) | (41.7) | % |
| Restricted cash | ​ | 46,204 | ​ | 91,539 | ​ | ​ | (45,335) | ​ | (49.5) | ​ |
| Loans, net (including $119,965 and $124,298 held at fair value) | ​ | 1,393,139 | ​ | 1,432,807 | ​ | ​ | (39,668) | ​ | (2.8) | ​ |
| Loans, held for sale, at fair value | ​ | 348,719 | ​ | 297,669 | ​ | ​ | 51,050 | ​ | 17.1 | ​ |
| Mortgage backed securities, at fair value | ​ | 90,427 | ​ | 75,411 | ​ | ​ | 15,016 | ​ | 19.9 | ​ |
| Loans eligible for repurchase from Ginnie Mae | ​ | ​ | 237,542 | ​ | ​ | 186,197 | ​ | ​ | 51,345 | ​ | 27.6 | ​ |
| Investment in unconsolidated joint ventures | ​ | ​ | 69,204 | ​ | ​ | 53,939 | ​ | ​ | 15,265 | ​ | 28.3 | ​ |
| Purchased future receivables, net | ​ | ​ | 16,659 | ​ | ​ | 27,190 | ​ | ​ | (10,531) | ​ | (38.7) | ​ |
| Derivative instruments | ​ | 20,849 | ​ | 19,037 | ​ | ​ | 1,812 | ​ | 9.5 | ​ |
| Servicing rights (including $74,384 and $73,645 held at fair value) | ​ | 110,045 | ​ | 107,761 | ​ | ​ | 2,284 | ​ | 2.1 | ​ |
| Real estate, held for sale | ​ | ​ | 45,063 | ​ | ​ | 47,009 | ​ | ​ | (1,946) | ​ | (4.1) | ​ |
| Other assets | ​ | 98,614 | ​ | 103,701 | ​ | ​ | (5,087) | ​ | (4.9) | ​ |
| Assets of consolidated VIEs | ​ | ​ | 2,691,198 | ​ | ​ | 2,761,655 | ​ | ​ | (70,457) | ​ | (2.6) | ​ |
| Total Assets | ​ | $ | 5,317,510 | ​ | $ | 5,460,932 | ​ | $ | (143,422) | ​ | (2.6) | % |
| Liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Secured borrowings | ​ | $ | 1,176,621 | ​ | $ | 1,253,895 | ​ | $ | (77,274) | ​ | (6.2) | % |
| Securitized debt obligations of consolidated VIEs, net | ​ | 2,059,114 | ​ | 2,140,009 | ​ | ​ | (80,895) | ​ | (3.8) | ​ |
| Convertible notes, net | ​ | ​ | 111,855 | ​ | ​ | 111,581 | ​ | ​ | 274 | ​ | 0.2 | ​ |
| Senior secured notes, net | ​ | 179,572 | ​ | 179,481 | ​ | ​ | 91 | ​ | 0.1 | ​ |
| Corporate debt, net | ​ | ​ | 150,658 | ​ | ​ | 150,387 | ​ | ​ | 271 | ​ | 0.2 | ​ |
| Guaranteed loan financing | ​ | 421,183 | ​ | 436,532 | ​ | ​ | (15,349) | ​ | (3.5) | ​ |
| Liabilities for loans eligible for repurchase from Ginnie Mae | ​ | ​ | 237,542 | ​ | ​ | 186,197 | ​ | ​ | 51,345 | ​ | 27.6 | ​ |
| Derivative instruments | ​ | 7,774 | ​ | 9,106 | ​ | ​ | (1,332) | ​ | (14.6) | ​ |
| Dividends payable | ​ | 16,934 | ​ | 14,524 | ​ | ​ | 2,410 | ​ | 16.6 | ​ |
| Accounts payable and other accrued liabilities | ​ | 132,087 | ​ | 166,174 | ​ | ​ | (34,087) | ​ | (20.5) | ​ |
| Total Liabilities | ​ | $ | 4,493,340 | ​ | $ | 4,647,886 | ​ | $ | (154,546) | ​ | (3.3) | % |
| Stockholders’ Equity | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Common stock | ​ | $ | 5 | ​ | $ | 5 | ​ | $ | — | ​ | 0.0 | % |
| Additional paid-in capital | ​ | 846,960 | ​ | 854,222 | ​ | ​ | (7,262) | ​ | (0.9) | ​ |
| Retained earnings (deficit) | ​ | ​ | (31,779) | ​ | ​ | (49,755) | ​ | ​ | 17,976 | ​ | (36.1) | ​ |
| Accumulated other comprehensive (loss) | ​ | (9,916) | ​ | (9,876) | ​ | ​ | (40) | ​ | 0.4 | ​ |
| Total Ready Capital Corporation equity | ​ | 805,270 | ​ | 794,596 | ​ | ​ | 10,674 | ​ | 1.3 | % |
| Non-controlling interests | ​ | 18,900 | ​ | 18,450 | ​ | ​ | 450 | ​ | 2.4 | ​ |
| Total Stockholders’ Equity | ​ | $ | 824,170 | ​ | $ | 813,046 | ​ | $ | 11,124 | ​ | 1.4 | % |
| Total Liabilities and Stockholders’ Equity | ​ | $ | 5,317,510 | ​ | $ | 5,460,932 | ​ | $ | (143,422) | ​ | (2.6) | % |
| ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (in thousands) | ​ | Acquisitions | ​ | SBC Originations | ​ | SBA Originations, Acquisitions and Servicing | ​ | Residential Mortgage Banking | ​ | Total |
| Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans, net (1)(2) | ​ | $ | 949,728 | $ | 2,366,167 | $ | 743,114 | $ | 5,235 | $ | 4,064,244 |
| Loans, held for sale, at fair value | ​ | ​ | 510 | ​ | ​ | 20,486 | ​ | ​ | 39,764 | ​ | ​ | 287,959 | ​ | ​ | 348,719 |
| Mortgage backed securities, at fair value | ​ | ​ | 22,842 | ​ | ​ | 67,585 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 90,427 |
| Servicing rights | ​ | ​ | — | ​ | ​ | 18,121 | ​ | ​ | 17,540 | ​ | ​ | 74,384 | ​ | ​ | 110,045 |
| Investment in unconsolidated joint ventures | ​ | ​ | 69,204 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 69,204 |
| Purchased future receivables, net | ​ | ​ | 16,659 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 16,659 |
| Real estate, held for sale (1) | ​ | ​ | 45,063 | ​ | ​ | 8,422 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 53,485 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Secured borrowings | ​ | $ | 226,545 | ​ | $ | 482,665 | ​ | $ | 159,467 | ​ | $ | 307,944 | ​ | $ | 1,176,621 |
| Securitized debt obligations of consolidated VIEs | ​ | ​ | 552,998 | ​ | ​ | 1,399,224 | ​ | ​ | 106,892 | ​ | ​ | — | ​ | ​ | 2,059,114 |
| Guaranteed loan financing | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 421,183 | ​ | ​ | — | ​ | ​ | 421,183 |
| Senior secured notes, net | ​ | ​ | 42,609 | ​ | ​ | 129,919 | ​ | ​ | 7,045 | ​ | ​ | — | ​ | ​ | 179,572 |
| Corporate debt, net | ​ | ​ | 75,189 | ​ | ​ | 75,469 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 150,658 |
| Convertible notes, net | ​ | ​ | 55,125 | ​ | ​ | 51,132 | ​ | ​ | 5,598 | ​ | ​ | — | ​ | ​ | 111,855 |
| (1) Includes assets of consolidated VIEs(2) Excludes allowance for loan losses. |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | $ Change | ​ | Nine Months Ended September 30, | ​ | $ Change |
| ​ | ​ | 2020 | ​ | 2019 | ​ | 2020 vs. 2019 | ​ | 2020 | ​ | 2019 | ​ | 2020 vs. 2019 |
| Interest income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loan acquisitions | ​ | $ | 14,532 | $ | 18,880 | $ | (4,348) | ​ | $ | 45,993 | $ | 47,761 | $ | (1,768) |
| SBC originations | ​ | ​ | 35,287 | ​ | ​ | 32,354 | ​ | ​ | 2,933 | ​ | ​ | 112,052 | ​ | ​ | 91,182 | ​ | ​ | 20,870 |
| SBA originations, acquisitions and servicing | ​ | ​ | 9,037 | ​ | ​ | 7,235 | ​ | ​ | 1,802 | ​ | ​ | 30,316 | ​ | ​ | 23,468 | ​ | ​ | 6,848 |
| Residential mortgage banking | ​ | ​ | 2,218 | ​ | ​ | 1,254 | ​ | ​ | 964 | ​ | ​ | 5,465 | ​ | ​ | 3,099 | ​ | ​ | 2,366 |
| Total interest income | ​ | $ | 61,074 | ​ | $ | 59,723 | ​ | $ | 1,351 | ​ | $ | 193,826 | ​ | $ | 165,510 | ​ | $ | 28,316 |
| Interest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loan acquisitions | ​ | $ | (11,011) | ​ | $ | (11,076) | ​ | $ | 65 | ​ | $ | (32,871) | ​ | $ | (29,383) | ​ | $ | (3,488) |
| SBC originations | ​ | ​ | (23,342) | ​ | ​ | (23,835) | ​ | ​ | 493 | ​ | ​ | (72,476) | ​ | ​ | (65,903) | ​ | ​ | (6,573) |
| SBA originations, acquisitions and servicing | ​ | ​ | (6,414) | ​ | ​ | (2,739) | ​ | ​ | (3,675) | ​ | ​ | (21,766) | ​ | ​ | (11,529) | ​ | ​ | (10,237) |
| Residential mortgage banking | ​ | ​ | (2,157) | ​ | ​ | (1,740) | ​ | ​ | (417) | ​ | ​ | (5,778) | ​ | ​ | (4,104) | ​ | ​ | (1,674) |
| Corporate - other | ​ | ​ | (899) | ​ | ​ | - | ​ | ​ | (899) | ​ | ​ | (1,271) | ​ | ​ | - | ​ | ​ | (1,271) |
| Total interest expense | ​ | $ | (43,823) | ​ | $ | (39,390) | ​ | $ | (4,433) | ​ | $ | (134,162) | ​ | $ | (110,919) | ​ | $ | (23,243) |
| Net interest income before provision for loan losses | ​ | $ | 17,251 | ​ | $ | 20,333 | ​ | $ | (3,082) | ​ | $ | 59,664 | ​ | $ | 54,591 | ​ | $ | 5,073 |
| Loan acquisitions | ​ | $ | 4,824 | ​ | $ | (94) | ​ | $ | 4,918 | ​ | $ | (2,865) | ​ | $ | (771) | ​ | $ | (2,094) |
| SBC originations | ​ | ​ | 117 | ​ | ​ | (33) | ​ | ​ | 150 | ​ | ​ | (23,890) | ​ | ​ | (342) | ​ | ​ | (23,548) |
| SBA originations, acquisitions and servicing | ​ | ​ | (710) | ​ | ​ | (566) | ​ | ​ | (144) | ​ | ​ | (7,729) | ​ | ​ | (1,446) | ​ | ​ | (6,283) |
| Residential mortgage banking | ​ | ​ | - | ​ | ​ | — | ​ | ​ | - | ​ | ​ | (500) | ​ | ​ | — | ​ | ​ | (500) |
| Provision for loan losses | ​ | $ | 4,231 | ​ | $ | (693) | ​ | ​ | 4,924 | ​ | ​ | (34,984) | ​ | ​ | (2,559) | ​ | ​ | (32,425) |
| Net interest income after provision for loan losses | ​ | $ | 21,482 | ​ | $ | 19,640 | ​ | $ | 1,842 | ​ | $ | 24,680 | ​ | $ | 52,032 | ​ | $ | (27,352) |
| Non-interest income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loan acquisitions | ​ | $ | 8,643 | ​ | $ | 1,329 | ​ | $ | 7,314 | ​ | $ | 7,385 | ​ | $ | 7,090 | ​ | $ | 295 |
| SBC originations | ​ | ​ | 10,066 | ​ | ​ | 5,806 | ​ | ​ | 4,260 | ​ | ​ | 16,393 | ​ | ​ | 15,052 | ​ | ​ | 1,341 |
| SBA originations, acquisitions and servicing | ​ | ​ | 12,020 | ​ | ​ | 5,513 | ​ | ​ | 6,507 | ​ | ​ | 49,269 | ​ | ​ | 15,861 | ​ | ​ | 33,408 |
| Residential mortgage banking | ​ | ​ | 77,178 | ​ | ​ | 27,292 | ​ | ​ | 49,886 | ​ | ​ | 178,190 | ​ | ​ | 60,366 | ​ | ​ | 117,824 |
| Corporate - other | ​ | ​ | (1) | ​ | ​ | 44 | ​ | ​ | (45) | ​ | ​ | 114 | ​ | ​ | 30,837 | ​ | ​ | (30,723) |
| Total non-interest income | ​ | $ | 107,906 | ​ | $ | 39,984 | ​ | $ | 67,922 | ​ | $ | 251,351 | ​ | $ | 129,206 | ​ | $ | 122,145 |
| Non-interest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loan acquisitions | ​ | $ | (8,554) | ​ | $ | (2,602) | ​ | $ | (5,952) | ​ | $ | (27,926) | ​ | $ | (6,277) | ​ | $ | (21,649) |
| SBC originations | ​ | ​ | (9,339) | ​ | ​ | (6,855) | ​ | ​ | (2,484) | ​ | ​ | (28,357) | ​ | ​ | (19,022) | ​ | ​ | (9,335) |
| SBA originations, acquisitions and servicing | ​ | ​ | (6,344) | ​ | ​ | (6,062) | ​ | ​ | (282) | ​ | ​ | (22,837) | ​ | ​ | (17,854) | ​ | ​ | (4,983) |
| Residential mortgage banking | ​ | ​ | (53,820) | ​ | ​ | (28,116) | ​ | ​ | (25,704) | ​ | ​ | (148,415) | ​ | ​ | (68,842) | ​ | ​ | (79,573) |
| Corporate - other | ​ | ​ | (9,414) | ​ | ​ | (6,207) | ​ | ​ | (3,207) | ​ | ​ | (25,870) | ​ | ​ | (23,727) | ​ | ​ | (2,143) |
| Total non-interest expense | ​ | $ | (87,471) | ​ | $ | (49,842) | ​ | $ | (37,629) | ​ | $ | (253,405) | ​ | $ | (135,722) | ​ | $ | (117,683) |
| Net income (loss) before provision for income taxes | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loan acquisitions | ​ | $ | 8,434 | ​ | $ | 6,437 | ​ | $ | 1,997 | ​ | $ | (10,284) | ​ | $ | 18,420 | ​ | $ | (28,704) |
| SBC originations | ​ | ​ | 12,789 | ​ | ​ | 7,437 | ​ | ​ | 5,352 | ​ | ​ | 3,722 | ​ | ​ | 20,967 | ​ | ​ | (17,245) |
| SBA originations, acquisitions and servicing | ​ | ​ | 7,589 | ​ | ​ | 3,381 | ​ | ​ | 4,208 | ​ | ​ | 27,253 | ​ | ​ | 8,500 | ​ | ​ | 18,753 |
| Residential mortgage banking | ​ | ​ | 23,419 | ​ | ​ | (1,310) | ​ | ​ | 24,729 | ​ | ​ | 28,962 | ​ | ​ | (9,481) | ​ | ​ | 38,443 |
| Corporate - other | ​ | ​ | (10,314) | ​ | ​ | (6,163) | ​ | ​ | (4,151) | ​ | ​ | (27,027) | ​ | ​ | 7,110 | ​ | ​ | (34,137) |
| Total net income (loss) before provision for income taxes | ​ | $ | 41,917 | ​ | $ | 9,782 | ​ | $ | 32,135 | ​ | $ | 22,626 | ​ | $ | 45,516 | ​ | $ | (22,890) |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | 2020 | 2019 | 2020 | 2019 |
| Realized gains (losses) on financial instruments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Realized gains on loans - Freddie Mac | ​ | $ | 1,518 | ​ | $ | 1,954 | ​ | $ | 5,517 | ​ | $ | 3,817 |
| Creation of mortgage servicing rights - Freddie Mac | ​ | ​ | 2,107 | ​ | ​ | 1,798 | ​ | ​ | 7,094 | ​ | ​ | 3,745 |
| Realized gains on loans - SBA | ​ | ​ | 3,448 | ​ | ​ | 2,098 | ​ | ​ | 7,937 | ​ | ​ | 8,148 |
| Creation of mortgage servicing rights - SBA | ​ | ​ | 993 | ​ | ​ | 600 | ​ | ​ | 2,328 | ​ | ​ | 2,481 |
| Realized gain (loss) on derivatives, at fair value | ​ | ​ | (1,996) | ​ | ​ | 132 | ​ | ​ | (2,700) | ​ | ​ | 1,048 |
| Realized gain (loss) on mortgage backed securities, at fair value | ​ | ​ | 471 | ​ | ​ | 1,112 | ​ | ​ | 2,060 | ​ | ​ | 2,349 |
| Net realized gains (losses) - all other | ​ | ​ | 966 | ​ | ​ | (317) | ​ | ​ | (118) | ​ | ​ | (674) |
| Net realized gain on financial instruments | ​ | $ | 7,507 | ​ | $ | 7,377 | ​ | $ | 22,118 | ​ | $ | 20,914 |
| Unrealized gains (losses) on financial instruments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Unrealized gain (loss) on loans - Freddie Mac | ​ | $ | (40) | ​ | $ | (64) | ​ | $ | (18) | ​ | $ | 234 |
| Unrealized gain (loss) on loans - SBA | ​ | ​ | 2,353 | ​ | ​ | 772 | ​ | ​ | 1,302 | ​ | ​ | 267 |
| Unrealized gain (loss) on residential mortgage servicing rights, at fair value | ​ | (4,688) | ​ | (7,582) | ​ | (33,168) | ​ | (21,050) |
| Unrealized gain (loss) on derivatives, at fair value | ​ | ​ | 648 | ​ | ​ | (701) | ​ | ​ | (4,415) | ​ | ​ | (2,827) |
| Unrealized gain (loss) on mortgage backed securities, at fair value | ​ | ​ | 3,708 | ​ | ​ | (245) | ​ | ​ | (8,314) | ​ | ​ | 1,466 |
| Net unrealized gains (losses) - all other | ​ | ​ | 1,439 | ​ | ​ | (61) | ​ | ​ | 851 | ​ | ​ | 111 |
| Net unrealized gain (loss) on financial instruments | ​ | $ | 3,420 | ​ | $ | (7,881) | ​ | $ | (43,762) | ​ | $ | (21,799) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | ​ | 2020 | ​ | 2019 | ​ | $ Change | ​ | 2020 | ​ | 2019 | ​ | $ Change |
| Interest income | ​ | $ | 14,532 | ​ | $ | 18,880 | ​ | $ | (4,348) | ​ | $ | 45,993 | ​ | $ | 47,761 | ​ | $ | (1,768) |
| Interest expense | ​ | ​ | (11,011) | ​ | (11,076) | ​ | 65 | ​ | ​ | (32,871) | ​ | (29,383) | ​ | (3,488) |
| Net interest income before provision for loan losses | ​ | $ | 3,521 | ​ | $ | 7,804 | ​ | $ | (4,283) | ​ | $ | 13,122 | ​ | $ | 18,378 | ​ | $ | (5,256) |
| Provision for loan losses | ​ | ​ | 4,824 | ​ | ​ | (94) | ​ | ​ | 4,918 | ​ | ​ | (2,865) | ​ | ​ | (771) | ​ | ​ | (2,094) |
| Net interest income after provision for loan losses | ​ | $ | 8,345 | ​ | $ | 7,710 | ​ | $ | 635 | ​ | $ | 10,257 | ​ | $ | 17,607 | ​ | $ | (7,350) |
| Non-interest income | ​ | ​ | 8,643 | ​ | ​ | 1,329 | ​ | ​ | 7,314 | ​ | ​ | 7,385 | ​ | ​ | 7,090 | ​ | ​ | 295 |
| Non-interest expense | ​ | ​ | (8,554) | ​ | ​ | (2,602) | ​ | ​ | (5,952) | ​ | ​ | (27,926) | ​ | ​ | (6,277) | ​ | ​ | (21,649) |
| Total non-interest income (expense) | ​ | $ | 89 | ​ | $ | (1,273) | ​ | $ | 1,362 | ​ | $ | (20,541) | ​ | $ | 813 | ​ | $ | (21,354) |
| Net income (loss) before provision for income taxes | ​ | $ | 8,434 | ​ | $ | 6,437 | ​ | $ | 1,997 | ​ | $ | (10,284) | ​ | $ | 18,420 | ​ | $ | (28,704) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | ​ | 2020 | ​ | 2019 | ​ | $ Change | ​ | 2020 | ​ | 2019 | ​ | $ Change |
| Interest income | ​ | $ | 35,287 | ​ | $ | 32,354 | ​ | $ | 2,933 | ​ | $ | 112,052 | ​ | $ | 91,182 | ​ | $ | 20,870 |
| Interest expense | ​ | ​ | (23,342) | ​ | (23,835) | ​ | 493 | ​ | ​ | (72,476) | ​ | (65,903) | ​ | (6,573) |
| Net interest income before provision for loan losses | ​ | $ | 11,945 | ​ | $ | 8,519 | ​ | $ | 3,426 | ​ | $ | 39,576 | ​ | $ | 25,279 | ​ | $ | 14,297 |
| Recoveries of (provision for) loan losses | ​ | ​ | 117 | ​ | ​ | (33) | ​ | ​ | 150 | ​ | ​ | (23,890) | ​ | ​ | (342) | ​ | ​ | (23,548) |
| Net interest income after provision for loan losses | ​ | $ | 12,062 | ​ | $ | 8,486 | ​ | $ | 3,576 | ​ | $ | 15,686 | ​ | $ | 24,937 | ​ | $ | (9,251) |
| Non-interest income (loss) | ​ | ​ | 10,066 | ​ | ​ | 5,806 | ​ | ​ | 4,260 | ​ | ​ | 16,393 | ​ | ​ | 15,052 | ​ | ​ | 1,341 |
| Non-interest expense | ​ | ​ | (9,339) | ​ | ​ | (6,855) | ​ | ​ | (2,484) | ​ | ​ | (28,357) | ​ | ​ | (19,022) | ​ | ​ | (9,335) |
| Total non-interest income (expense) | ​ | $ | 727 | ​ | $ | (1,049) | ​ | $ | 1,776 | ​ | $ | (11,964) | ​ | $ | (3,970) | ​ | $ | (7,994) |
| Net income (loss) before provision for income taxes | ​ | $ | 12,789 | ​ | $ | 7,437 | ​ | $ | 5,352 | ​ | $ | 3,722 | ​ | $ | 20,967 | ​ | $ | (17,245) |

​Interest income of $112.1 million for the nine months ended September 30, 2020 in our SBC originations segment represented an increase of $20.9 million from the prior year period primarily reflecting an increase in SBC loan originations, resulting in higher average loan balances. Originated SBC loans contributed $44.2 million in interest income during the nine months ended September 30, 2020, representing an $8.4 million increase from the nine months ended September 30, 2019. Originated transitional loans contributed $66.0 million in interest income during the nine months ended September 30, 2020, representing a $14.6 million increase from the nine months ended September 30, 2019. ​Interest expense​Interest expense of $23.3 million in our SBC originations segment was relatively unchanged from the prior year quarter ended September 30, 2019.​Interest expense of $72.5 million in our SBC originations segment represented an increase of $6.6 million from the prior year period ended September 30, 2019, primarily reflecting an increase in borrowing activities under our shorter-term secured borrowings and securitized debt obligations.​Provision for (Recoveries of) loan losses ​Recoveries of loan losses of $0.1 million in our SBC originations segment was relatively unchanged from the prior year quarter ended September 30, 2019. ​Provision for loan losses of $23.9 million for the nine months ended September 30, 2020 in our SBC originations segment represented an increase of $23.5 million from the prior year period. The increase in the provision for loan losses during the nine months ended September 30, 2020 was primarily the result of the implementation of the CECL impairment standard and the adverse change in the economic outlook due to the COVID-19 pandemic.​Non-interest income ​Non-interest income of $10.1 million for the quarter ended September 30, 2020 in our SBC originations segment represented an increase of $4.3 million from the prior quarter ended September 30, 2019 primarily reflecting an increase in the fair value of owned Freddie Mac bonds in the quarter.​Non-interest income of $16.4 million for the nine months ended September 30, 2020 in our SBC originations segment represented an increase of $1.3 million from the prior year period ended September 30, 2019 reflecting an increase in realized gains on sales of Freddie Mac loans (including creation of servicing rights) of $5.0 million. ​Non-interest expense​Non-interest expense of $9.3 million for the quarter ended September 30, 2020 in our SBC originations segment represented an increase of $2.5 million from the prior year quarter ended September 30, 2019, primarily reflecting an increase in employee compensation expense of $2.6 million, and an increase in servicing expense of $0.8 million.​Non-interest expense of $28.4 million for the nine months ended September 30, 2020 in our SBC originations segment represented an increase of $9.3 million from the prior year period ended September 30, 2019, primarily reflecting an increase in general operating expenses of $2.1 million, an increase in employee compensation expense of $6.0 million, and an increase in servicing expense of $1.5 million.​84
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | ​ | 2020 | ​ | 2019 | ​ | $ Change | ​ | 2020 | ​ | 2019 | ​ | $ Change |
| Interest income | ​ | $ | 9,037 | ​ | $ | 7,235 | ​ | $ | 1,802 | ​ | $ | 30,316 | ​ | $ | 23,468 | ​ | $ | 6,848 |
| Interest expense | ​ | ​ | (6,414) | ​ | (2,739) | ​ | (3,675) | ​ | ​ | (21,766) | ​ | (11,529) | ​ | (10,237) |
| Net interest income before provision for loan losses | ​ | $ | 2,623 | ​ | $ | 4,496 | ​ | $ | (1,873) | ​ | $ | 8,550 | ​ | $ | 11,939 | ​ | $ | (3,389) |
| Provision for loan losses | ​ | ​ | (710) | ​ | ​ | (566) | ​ | ​ | (144) | ​ | ​ | (7,729) | ​ | ​ | (1,446) | ​ | ​ | (6,283) |
| Net interest income after provision for loan losses | ​ | $ | 1,913 | ​ | $ | 3,930 | ​ | $ | (2,017) | ​ | $ | 821 | ​ | $ | 10,493 | ​ | $ | (9,672) |
| Non-interest income | ​ | ​ | 12,020 | ​ | ​ | 5,513 | ​ | ​ | 6,507 | ​ | ​ | 49,269 | ​ | ​ | 15,861 | ​ | ​ | 33,408 |
| Non-interest expense | ​ | ​ | (6,344) | ​ | ​ | (6,062) | ​ | ​ | (282) | ​ | ​ | (22,837) | ​ | ​ | (17,854) | ​ | ​ | (4,983) |
| Total non-interest income (expense) | ​ | $ | 5,676 | ​ | $ | (549) | ​ | $ | 6,225 | ​ | $ | 26,432 | ​ | $ | (1,993) | ​ | $ | 28,425 |
| Net income (loss) before provision for income taxes | ​ | $ | 7,589 | ​ | $ | 3,381 | ​ | $ | 4,208 | ​ | $ | 27,253 | ​ | $ | 8,500 | ​ | $ | 18,753 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | ​ | 2020 | ​ | 2019 | ​ | $ Change | ​ | 2020 | ​ | 2019 | ​ | $ Change |
| Interest income | ​ | $ | 2,218 | ​ | $ | 1,254 | ​ | $ | 964 | ​ | $ | 5,465 | ​ | $ | 3,099 | ​ | $ | 2,366 |
| Interest expense | ​ | ​ | (2,157) | ​ | (1,740) | ​ | (417) | ​ | ​ | (5,778) | ​ | (4,104) | ​ | (1,674) |
| Net interest income before provision for loan losses | ​ | $ | 61 | ​ | $ | (486) | ​ | $ | 547 | ​ | $ | (313) | ​ | $ | (1,005) | ​ | $ | 692 |
| Provision for loan losses | ​ | ​ | — | ​ | ​ | — | ​ | ​ | - | ​ | ​ | (500) | ​ | ​ | — | ​ | ​ | (500) |
| Net interest income after provision for loan losses | ​ | $ | 61 | ​ | $ | (486) | ​ | $ | 547 | ​ | $ | (813) | ​ | $ | (1,005) | ​ | $ | 192 |
| Non-interest income | ​ | ​ | 77,178 | ​ | ​ | 27,292 | ​ | ​ | 49,886 | ​ | ​ | 178,190 | ​ | ​ | 60,366 | ​ | ​ | 117,824 |
| Non-interest expense | ​ | ​ | (53,820) | ​ | ​ | (28,116) | ​ | ​ | (25,704) | ​ | ​ | (148,415) | ​ | ​ | (68,842) | ​ | ​ | (79,573) |
| Total non-interest income (expense) | ​ | $ | 23,358 | ​ | $ | (824) | ​ | $ | 24,182 | ​ | $ | 29,775 | ​ | $ | (8,476) | ​ | $ | 38,251 |
| Net income (loss) before provision for income taxes | ​ | $ | 23,419 | ​ | $ | (1,310) | ​ | $ | 24,729 | ​ | $ | 28,962 | ​ | $ | (9,481) | ​ | $ | 38,443 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

Non-interest income ​Non-interest income of $77.2 million in our residential mortgage banking segment for the quarter ended September 30, 2020 represented an increase of $49.9 million from the prior year quarter ended September 30, 2019, primarily reflecting an increase in revenue on residential mortgage banking activities of $46.5 million as a result of an increase in loan originations in the current year and by a decrease in unrealized losses on residential MSRs of $4.7 million during the quarter ended September 30, 2020 compared to $7.6 million of unrealized losses during the quarter ended September 30, 2019. ​Non-interest income of $178.2 million in our residential mortgage banking segment for the nine months ended September 30, 2020 represented an increase of $117.8 million from the prior year period ended September 30, 2019, primarily reflecting an increase in revenue on residential mortgage banking activities of $128.1 million as a result of an increase in loan originations in the current year. This was offset by unrealized losses on residential MSRs of $33.3 million during the nine months ended September 30, 2020 compared to $21.1 million of unrealized losses during the nine months ended September 30, 2019.​Non-interest expense ​Non-interest expense of $53.8 million in our residential mortgage banking segment for the quarter ended September 30, 2020 represented an increase of $25.7 million from the prior year quarter ended September 30, 2019, primarily reflecting an increase in variable expenses on residential mortgage banking activities of $13.6 million, an increase in employee compensation of $8.2 million, and an increase in loan servicing expense of $2.5 million.​Non-interest expense of $148.4 million in our residential mortgage banking segment for the nine months ended September 30, 2020 represented an increase of $79.6 million from the prior year period ended September 30, 2019, primarily reflecting increases in variable expenses on residential mortgage banking activities of $47.5 million, employee compensation of $22.6 million and loan servicing expense of $8.2 million.​Corporate- Other​Non-interest income​Non-interest income of $30.8 million in our Corporate – Other segment for the nine months ended September 30, 2019 represented a bargain purchase gain associated with the ORM merger. There were no significant changes for the three months ended September 30, 2020 compared to the prior year quarter.​Non-interest expense​Non-interest expense of $9.4 million for the quarter ended September 30, 2020 increased $3.2 million from the prior year quarter ended September 30, 2019, primarily due to an increase in professional fees of $1.3 million and incentive fees due to our Manager of $1.1 million.​Non-interest expense of $25.9 million for the nine months ended September 30, 2020 increased $2.1 million from the prior year period ended September 30, 2019, primarily due to an increase in incentive fees and management fees due to our Manager of $5.6 million and an increase in professional fees of $2.1 million, partially offset by due to an increase in merger related expense of $6.0 million. ​Non-GAAP financial measures​We believe that providing investors with core earnings, a non-U.S. GAAP financial measure, in addition to the related U.S. GAAP measures, gives investors greater transparency into the information used by management in our financial and operational decision-making. However, because core earnings is an incomplete measure of our financial performance and involves differences from net income computed in accordance with U.S. GAAP, it should be considered along with, but not as an alternative to, our net income as a measure of our financial performance. In addition, because not all companies use identical calculations, our presentation of core earnings may not be comparable to other similarly-titled measures of other companies.​87
| i) | any unrealized gains or losses on certain MBS |
| ii) | any realized gains or losses on sales of certain MBS |
| iii) | any unrealized gains or losses on Residential MSRs |
| iv) | one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended September 30, | ​ | ​ | ​ | ​ | Nine Months Ended September 30, | ​ | ​ | ​ |
| (in thousands) | 2020 | ​ | 2019 | ​ | Change | ​ | 2020 | ​ | 2019 | ​ | Change |
| Net Income | $ | 35,363 | ​ | $ | 12,427 | ​ | $ | 22,936 | ​ | $ | 18,510 | ​ | $ | 54,120 | ​ | $ | (35,610) |
| Reconciling items: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Unrealized (gain) loss on mortgage servicing rights | ​ | 4,688 | ​ | ​ | 7,582 | ​ | ​ | (2,894) | ​ | ​ | 33,169 | ​ | ​ | 21,049 | ​ | ​ | 12,120 |
| Impact of the adoption of ASU 2016-13 on accrual loans | ​ | (7,248) | ​ | ​ | — | ​ | ​ | (7,248) | ​ | ​ | 23,114 | ​ | ​ | — | ​ | ​ | 23,114 |
| Non-recurring REO impairment | ​ | (114) | ​ | ​ | — | ​ | ​ | (114) | ​ | ​ | 2,961 | ​ | ​ | — | ​ | ​ | 2,961 |
| Merger transaction costs and other non-recurring expenses | ​ | 998 | ​ | ​ | 51 | ​ | ​ | 947 | ​ | ​ | 3,220 | ​ | ​ | 6,914 | ​ | ​ | (3,694) |
| Bargain purchase gain | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (30,728) | ​ | ​ | 30,728 |
| Unrealized (gain) loss on mortgage-backed securities | ​ | — | ​ | ​ | 85 | ​ | ​ | (85) | ​ | ​ | 185 | ​ | ​ | 205 | ​ | ​ | (20) |
| Unrealized loss on de-designated cash flow hedges | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,118 | ​ | ​ | — | ​ | ​ | 2,118 |
| Total reconciling items | $ | (1,676) | ​ | $ | 7,718 | ​ | $ | (9,394) | ​ | $ | 64,767 | ​ | $ | (2,560) | ​ | $ | 67,327 |
| Income tax adjustments | ​ | (1,561) | ​ | ​ | (1,896) | ​ | ​ | 335 | ​ | ​ | (10,703) | ​ | ​ | (5,263) | ​ | ​ | (5,440) |
| Core earnings | $ | 32,126 | ​ | $ | 18,249 | ​ | $ | 13,877 | ​ | $ | 72,574 | ​ | $ | 46,297 | ​ | $ | 26,277 |
| Less: Core earnings attributable to non-controlling interests | ​ | (731) | ​ | ​ | (474) | ​ | ​ | (257) | ​ | ​ | (2,160) | ​ | ​ | (1,352) | ​ | ​ | (808) |
| Less: Income attributable to participating shares | ​ | (339) | ​ | ​ | (79) | ​ | ​ | (260) | ​ | ​ | (1,087) | ​ | ​ | (240) | ​ | ​ | (847) |
| Core earnings attributable to common stockholders | $ | 31,056 | ​ | $ | 17,696 | ​ | $ | 13,360 | ​ | $ | 69,814 | ​ | $ | 44,705 | ​ | $ | 25,109 |
| Core Earnings per common share - basic and diluted | $ | 0.57 | ​ | $ | 0.40 | ​ | $ | 0.17 | ​ | $ | 1.30 | ​ | $ | 1.10 | ​ | $ | 0.20 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

Three Months Ended September 30, 2020 Compared to the Three Months Ended September 30, 2019​Consolidated net income increased by $22.9 million, from $12.4 million during the three months ended September 30, 2019 to $35.4 million during the three months ended September 30, 2020. Core earnings increased by $13.9 million, from $18.2 million during the three months ended September 30, 2019 to $32.1 million during the three months ended September 30, 2020.​The increase in consolidated net income and core earnings was primarily the result of an increase in residential mortgage banking activities net of variable costs of $32.9 million. ​Nine Months Ended September 30, 2020 Compared to the Nine Months Ended September 30, 2019​Consolidated net income decreased by $35.6 million, from $54.1 million during the nine months ended September 30, 2019 to $18.5 million during the nine months ended September 30, 2020. Core earnings increased by $26.3 million, from $46.3 million during the nine months ended September 30, 2019 to $72.6 million during the nine months ended September 30, 2020.​The decrease in consolidated net income was the result of a number of factors, including a $35.4 million reduction due to the adoption of CECL during the three months ended March 31, 2020. In addition, unrealized losses on MSRs of $16.4 million and $3.0 million of non-recurring REO impairment experienced in the first quarter of 2020. In addition, we experienced a bargain purchase gain of $30.7 million, offset by merger related expenses of $5.5 million, as a result of the ORM merger transaction in the first quarter of 2019. This was partially offset by the $25.8 million of revenue recognized on loans originated under the SBA’s PPP program. Core earnings increased by $26.3 million primarily due to $25.8 million of revenue recognized on loans originated under the SBA’s PPP program and revenue growth in our residential mortgage banking segment.​COVID-19 Impact on Operating Results​The significant and wide-ranging response of international, federal, state and local public health and governmental authorities to the COVID-19 pandemic in regions across the United States and the world, including the imposition of quarantines, “stay-at-home” orders and similar mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations, and the volatile economic, business and financial market conditions resulting therefrom, are expected to negatively impact our business, financial performance and operating results in later periods of 2020. Although we are uncertain of the potential full magnitude or duration of the business and economic impacts from the unprecedented public health efforts to contain and combat the spread of COVID-19, we will likely experience material deterioration in our financial performance and operating results, revenues, cash flow and/or profitability in one or more of the remaining periods in 2020 compared to the corresponding prior-year periods and compared to our expectations at the beginning of our 2020 fiscal year. Further discussion of the potential impacts on our business from the COVID-19 pandemic is provided in the section entitled “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q.​Incentive distribution payable to our Manager​Under the partnership agreement of our operating partnership, our Manager, the holder of the Class A special unit in our operating partnership, is entitled to receive an incentive distribution, distributed quarterly in arrears in an amount not less than zero equal to the difference between (i) the product of (A) 15% and (B) the difference between (x) core earnings (as described below) of our operating partnership, on a rolling four-quarter basis and before the incentive distribution for the current quarter, and (y) the product of (1) the weighted average of the issue price per share of common stock or operating partnership unit (“OP unit”) (without double counting) in all of our offerings multiplied by the weighted average number of shares of common stock outstanding (including any restricted shares of common stock and any other shares of common stock underlying awards granted under our 2012 equity incentive plan) and OP units (without double counting) in such quarter and (2) 8%, and (ii) the sum of any incentive distribution paid to our Manager with respect to the first three quarters of such previous four quarters; provided, however, that no incentive distribution is payable with respect to any calendar quarter unless cumulative core earnings is greater than zero for the most recently completed 12 calendar quarters, or the number of completed calendar quarters since the closing date of the merger with ZAIS Financial Corp. (“ZAIS Financial merger”), whichever is less.89
​For purposes of calculating the incentive distribution, the shares of common stock and OP units issued as of the closing of the ZAIS Financial merger in connection with the merger agreement were deemed to be issued at the per share price equal to (i) the sum of (A) the weighted average of the issue price per share of common stock or OP units (without double counting) issued prior to the closing of the ZAIS Financial merger multiplied by the number of shares of Sutherland common stock outstanding and Sutherland OP units (without double counting) issued prior to the closing of the merger plus (B) the amount by which the net book value of our Company as of the closing of the merger (after giving effect to the closing of the merger agreement) exceeded the amount of the net book value of Sutherland immediately preceding the closing of the merger, divided by (ii) all of the shares of our common stock and OP units issued and outstanding as of the closing of the merger (including the date of the closing of the mergers).​The incentive distribution shall be calculated within 30 days after the end of each quarter and such calculation shall promptly be delivered to our Company. We are obligated to pay the incentive distribution 50% in cash and 50% in either common stock or OP units, as determined in our discretion, within five business days after delivery to our Company of the written statement from the holder of the Class A special unit setting forth the computation of the incentive distribution for such quarter. Subject to certain exceptions, our Manager may not sell or otherwise dispose of any portion of the incentive distribution issued to it in common stock or OP units until after the three year anniversary of the date that such shares of common stock or OP units were issued to our Manager. The price of shares of our common stock for purposes of determining the number of shares payable as part of the incentive distribution is the closing price of such shares on the last trading day prior to the approval by our board of the incentive distribution.​For purposes of determining the incentive distribution payable to our Manager, core earnings is defined under the partnership agreement of our operating partnership in a manner that is similar to the definition of core earnings described above under "Non-GAAP Financial Measures" but with the following additional adjustments which (i) further exclude: (a) the incentive distribution, (b) non-cash equity compensation expense, if any, (c) unrealized gains or losses on SBC loans (not just MBS and MSRs), (d) depreciation and amortization (to the extent we foreclose on any property), and (e) one-time events pursuant to changes in U.S. GAAP and certain other non-cash charges after discussions between our Manager and our independent directors and after approval by a majority of the independent directors and (ii) add back any realized gains or losses on the sales of MBS and on discontinued operations which were excluded from the definition of core earnings described above under "Non-GAAP Financial Measures". ​Liquidity and Capital Resources ​Liquidity is a measure of our ability to turn non-cash assets into cash and to meet potential cash requirements. We use significant cash to purchase SBC loans and other target assets, originate new SBC loans, pay dividends, repay principal and interest on our borrowings, fund our operations and meet other general business needs. Our primary sources of liquidity will include our existing cash balances, borrowings, including securitizations, re-securitizations, repurchase agreements, warehouse facilities, bank credit facilities (including term loans and revolving facilities), the net proceeds of this and future offerings of equity and debt securities, including our Senior Secured Notes, Corporate debt, and Convertible Notes, and net cash provided by operating activities.​ We are continuing to monitor the COVID-19 pandemic and its impact on us, the borrowers underlying our real estate-related assets, the tenants in the properties we own, our financing sources, and the economy as a whole. Because the severity, magnitude and duration of the COVID-19 pandemic and its economic consequences are uncertain, rapidly changing and difficult to predict, the pandemic’s impact on our operations and liquidity remains uncertain and difficult to predict. Further discussion of the potential impacts on us from the COVID-19 pandemic is provided in the section entitled “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q.​​90
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| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (in thousands) | ​ | 2020 | ​ | 2019 | ​ | 2020 | ​ | 2019 |
| Cash flows provided by (used in) operating activities | ​ | $ | (48,289) | ​ | $ | (7,063) | ​ | $ | (261) | ​ | $ | (64,870) |
| Cash flows provided by (used in) investing activities | ​ | $ | 129,694 | ​ | $ | (245,446) | ​ | $ | (7,688) | ​ | $ | (920,245) |
| Cash flows provided by (used in) financing activities | ​ | $ | (207,044) | ​ | $ | 255,607 | ​ | $ | 103,715 | ​ | $ | 995,283 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net increase (decrease) in cash and cash equivalents and restricted cash | ​ | $ | (125,639) | ​ | $ | 3,098 | ​ | $ | 95,766 | ​ | $ | 10,168 |
| ● | Net cash used in operating activities of $48.3 million for the current quarter related primarily to: |
| - | Cash outflows on originations of new loans held for sale of $1,392.9 million and gains on sales of residential mortgages held for sale of $61.1 million. These reductions in cash were partially offset by inflows relating to repayments and sales of loans, held for sale at fair value of $1,415.2 million. |
| ● | Net cash provided by investing activities of $129.7 million for the current quarter related primarily to: |
| - | Cash inflows of $302.2 million relating to outflows repayments sales of loans, net, partially offset by purchases and originations of loans, net of $149.0 million and investment in unconsolidated joint ventures of $14.6 million. |
| ● | Net cash used in financing activities of $207.0 million for the current quarter related primarily to: |
| - | Net repayment of secured borrowings of $77.2 million, payment of securitized debt obligations of $84.2 million, dividend payments of $14.5 million, and repurchase of the Company’s stock of $9.2 million. |
| ● | Net cash used in operating activities of $7.1 million for the current quarter related primarily to: |
| - | Cash inflows from proceeds on sales and pay-downs on loans, held-for-sale, at fair value of $802.4 million, offset by cash outflows on originations and purchases of new loans of $805.1 million. |
| ● | Net cash used in investing activities of $245.4 million for the current quarter related primarily to: |
| - | Cash outflows of $418.7 million relating to originations and purchases of loans, held at fair value and held-for-investment loans, offset by cash inflows relating to repayments of loans, held at fair value and held-for-investment of $170.6 million and sales and repayments of MBS of $4.3 million. |
| ● | Net cash provided by financing activities of $255.6 million for the current quarter related primarily to: |
| - | Net proceeds from secured borrowings of $327.0 million, proceeds from the issuance of corporate debt of $57.5 million, offset by net repayments of securitized debt of $103.7 million. |
| ● | Net cash used in operating activities of $0.3 million for the current quarter related primarily to: |

| - | Cash outflows on originations of new loans held for sale of $3,675.8 million and gains on sales of residential mortgages held for sale of $143.7 million. These reductions in cash were partially offset by inflows relating to repayments and sales of loans, held for sale at fair value of $3,680.5 million. |
| ● | Net cash used in investing activities of $7.7 million for the current quarter related primarily to: |
| - | Cash outflows of $677.0 million relating to originations and purchases of loans, held at fair value and held-for-investment loans, offset by cash inflows relating to repayments of loans, held at fair value and held-for-investment of $673.9 million, sales and repayments of MBS of $10.5 million, and investment in unconsolidated joint ventures of $16.3 million. |
| ● | Net cash provided by financing activities of $103.7 million for the current quarter related primarily to: |
| - | Net proceeds from securitized debt of $242.9 million, partially offset by net repayments of secured borrowings of $11.4 million and repayments of guaranteed loan financing of $78.8 million. |
| ● | Net cash used in operating activities of $64.9 million related primarily to: |
| - | Cash outflows on originations and purchases of new loans, held-for-sale, at fair value of $1,889.8 million and other general changes to operating assets and liabilities of $7.8 million, partially offset by cash inflows on sales and pay-downs of loans of $1,859.5 million. |
| ● | Net cash used in investing activities of $920.2 million related primarily to: |
| - | Cash outflows of $1,488.1 million relating to originations and purchases of loans, held-for-investment, purchases of MBS of $9.6 million, partially offset by cash inflows relating to repayments of loans, held at fair value and held-for-investment of $550.2 million and sales and repayments of MBS of $9.7 million. |
| ● | Net cash provided by financing activities of $995.3 million related primarily to: |
| - | Net proceeds from securitized debt obligations of $564.1 million and secured borrowings of $469.4 million. |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Quarter End | ​ | Quarter End Balance | ​ | Average Balance in Quarter | ​ | Highest Month End Balance in Quarter |
| Q3 2017 | ​ | $ | 320,371 | ​ | $ | 420,270 | ​ | $ | 433,183 |
| Q4 2017 | ​ | ​ | 382,612 | ​ | ​ | 351,492 | ​ | ​ | 382,612 |
| Q1 2018 | ​ | ​ | 446,663 | ​ | ​ | 414,638 | ​ | ​ | 446,663 |
| Q2 2018 | ​ | ​ | 443,263 | ​ | ​ | 444,963 | ​ | ​ | 447,751 |
| Q3 2018 | ​ | ​ | 610,251 | ​ | ​ | 526,757 | ​ | ​ | 610,251 |
| Q4 2018 | ​ | ​ | 635,233 | ​ | ​ | 622,742 | ​ | ​ | 635,233 |
| Q1 2019 | ​ | ​ | 597,963 | ​ | ​ | 604,107 | ​ | ​ | 635,233 |
| Q2 2019 | ​ | ​ | 612,383 | ​ | ​ | 605,173 | ​ | ​ | 612,383 |
| Q3 2019 | ​ | ​ | 876,163 | ​ | ​ | 744,273 | ​ | ​ | 876,163 |
| Q4 2019 | ​ | ​ | 809,189 | ​ | ​ | 842,676 | ​ | ​ | 876,163 |
| Q1 2020 | ​ | ​ | 1,159,357 | ​ | ​ | 984,273 | ​ | ​ | 1,159,357 |
| Q2 2020 | ​ | ​ | 714,162 | ​ | ​ | 936,760 | ​ | ​ | 1,057,522 |
| Q3 2020 | ​ | ​ | 624,549 | ​ | ​ | 669,356 | ​ | ​ | 831,200 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Carrying Value at |
| Lender | Asset Class | Current Maturity | Pricing | Facility Size | Pledged Assets Carrying Value | September 30, 2020 | December 31, 2019 |
| JPMorgan | Acquired loans, SBA loans | June 2021 | ​ | 1M L + 1.75 to 2.75% | ​ | $ | 250,000 | ​ | $ | 44,840 | ​ | $ | 30,742 | ​ | $ | 88,972 |
| Keybank | Freddie Mac loans | February 2021 | ​ | 1M L + 1.30% | ​ | ​ | 100,000 | ​ | ​ | 20,486 | ​ | ​ | 20,242 | ​ | ​ | 21,513 |
| East West Bank | SBA loans | October 2022 | ​ | Prime - 0.821 to + 0.29% | ​ | ​ | 50,000 | ​ | ​ | 40,550 | ​ | ​ | 33,184 | ​ | ​ | 13,294 |
| Credit Suisse | Acquired loans (non USD) | December 2021 | ​ | Euribor + 2.50% | ​ | ​ | 234,420 | (a)​ | ​ | 53,021 | ​ | ​ | 32,267 | ​ | ​ | 37,646 |
| FCB | Acquired loans | June 2021 | ​ | 2.75% | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,354 |
| Comerica Bank | Residential loans | March 2021 | ​ | 1M L + 1.75% | ​ | ​ | 125,000 | ​ | ​ | 90,515 | ​ | ​ | 83,704 | ​ | ​ | 56,822 |
| TBK Bank | Residential loans | October 2021 | ​ | Variable Pricing | ​ | ​ | 150,000 | ​ | ​ | 123,980 | ​ | ​ | 118,581 | ​ | ​ | 52,151 |
| Origin Bank | Residential loans | June 2021 | ​ | Variable Pricing | ​ | ​ | 60,000 | ​ | ​ | 25,093 | ​ | ​ | 23,471 | ​ | ​ | 15,343 |
| Associated Bank | Residential loans | November 2020 | ​ | 1M L + 1.50% | ​ | ​ | 60,000 | ​ | ​ | 47,918 | ​ | ​ | 44,489 | ​ | ​ | 5,823 |
| East West Bank | Residential MSRs | September 2023 | ​ | 1M L + 2.50% | ​ | ​ | 50,000 | ​ | ​ | 49,140 | ​ | ​ | 37,700 | ​ | ​ | 39,900 |
| Credit Suisse | Purchased future receivables, PPP loans | June 2021 | ​ | 1M L + 4.50% | ​ | ​ | 150,000 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 34,900 |
| Rabobank | Real estate | January 2021 | ​ | 4.22% | ​ | ​ | 14,500 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 12,485 |
| Federal Reserve Bank of Minneapolis | PPP loans | April 2022 | ​ | 0.35% | ​ | ​ | 105,222 | ​ | ​ | 105,089 | ​ | ​ | 105,005 | ​ | ​ | — |
| Bank of the Sierra | Real estate | August 2050 | ​ | 3.25% | ​ | ​ | 22,750 | ​ | ​ | 37,562 | ​ | ​ | 22,687 | ​ | ​ | — |
| Total borrowings under credit facilities (b) | ​ | ​ | ​ | $ | 1,371,892 | ​ | $ | 638,194 | ​ | $ | 552,072 | ​ | $ | 380,203 |
| Citibank | Fixed rate, Transitional, Acquired loans | October 2021 | ​ | 1M L + 1.875 to 2.125% | ​ | $ | 500,000 | ​ | $ | 114,196 | ​ | $ | 103,307 | ​ | $ | 124,718 |
| Deutsche Bank | Fixed rate, Transitional loans | November 2021 | ​ | 3M L + 2.00 to 2.40% | ​ | ​ | 350,000 | ​ | ​ | 232,524 | ​ | ​ | 161,100 | ​ | ​ | 141,356 |
| JPMorgan | Transitional loans | December 2020 | ​ | 1M L + 2.25 to 4.00% | ​ | ​ | 400,000 | ​ | ​ | 265,599 | ​ | ​ | 175,764 | ​ | ​ | 250,466 |
| JPMorgan | MBS | March 2021 | ​ | 1.54 to 4.75% | ​ | ​ | 70,875 | ​ | ​ | 115,128 | ​ | ​ | 70,875 | ​ | ​ | 93,715 |
| Deutsche Bank | MBS | January 2021 | ​ | 3.54% | ​ | ​ | 16,354 | ​ | ​ | 20,189 | ​ | ​ | 16,354 | ​ | ​ | 44,730 |
| Citibank | MBS | November 2020 | ​ | 3.25 to 3.76% | ​ | ​ | 58,422 | ​ | ​ | 114,749 | ​ | ​ | 58,422 | ​ | ​ | 56,189 |
| Bank of America | MBS | Matured | ​ | 1.31 to 1.61% | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 38,954 |
| RBC | MBS | February 2021 | ​ | 3.05 to 4.43% | ​ | ​ | 38,727 | ​ | ​ | 61,595 | ​ | ​ | 38,727 | ​ | ​ | 59,061 |
| Total borrowings under repurchase agreements (c) | ​ | $ | 1,434,378 | ​ | $ | 923,980 | ​ | $ | 624,549 | ​ | $ | 809,189 |
| Total secured borrowings | ​ | $ | 2,806,270 | ​ | $ | 1,562,174 | ​ | $ | 1,176,621 | ​ | $ | 1,189,392 |

As of September 30, 2020, we had $161.1 million outstanding under the DB Loan Repurchase Facility. The DB Loan Repurchase Facility is used to finance SBC loans, and the interest rate is LIBOR plus a spread, which varies depending on the type and age of the loan. The DB Loan Repurchase Facility has been extended through November 2021 and our subsidiaries have an option to extend the DB Loan Repurchase Facility for an additional year, subject to certain conditions. Up to 100% of the then-current unpaid obligations of ReadyCap Commercial, Sutherland Asset I, and Sutherland Warehouse Trust II are fully guaranteed by us.​The eligible assets for the DB Loan Repurchase Facility are loans secured by a first mortgage lien on commercial properties subject to certain eligibility criteria, such as property type, geographical location, LTV ratios, debt yield and debt service coverage ratios. The principal amount paid by the bank for each mortgage loan is based on a percentage of the lesser of the mortgaged property value or the principal balance of such mortgage loan. ReadyCap Commercial, Sutherland Asset I, and Sutherland Warehouse Trust II paid the bank an up-front fee and are also required to pay the bank availability fees, and a minimum utilization fee for the DB Loan Repurchase Facility, as well as certain other administrative costs and expenses. The DB Loan Repurchase Facility also includes financial maintenance covenants, which include (i) an adjusted tangible net worth that does not decline by more than 25% in a quarter, 35% in a year or 50% from the highest adjusted tangible net worth, (ii) a minimum liquidity amount of the greater of (a) $5 million and (b) 3% of the sum of any outstanding recourse indebtedness plus the aggregate repurchase price of the mortgage loans on the Repurchase Agreement, (iii) a debt-to-assets ratio no greater than 80% and (iv) a tangible net worth at least equal to the sum of (a) the product of 1/15 and the amount of all non-recourse indebtedness (excluding the aggregate repurchase price) and other securitization indebtedness and (b) the product of 1/3 and the sum of the aggregate repurchase price and all recourse indebtedness.​JPMorgan loan repurchase facility​Our subsidiaries, ReadyCap Warehouse Financing, LLC (“ReadyCap Warehouse Financing”), Sutherland Warehouse Trust, LLC (“Sutherland Warehouse Trust”) entered into a master repurchase agreement in December 2015, pursuant to which ReadyCap Warehouse Financing, Sutherland Warehouse Trust and Ready Capital Mortgage Depositor II, LLC (which joined as a seller in October 2019), may sell, and later repurchase, mortgage loans in an aggregate principal amount of up to $400 million. Our subsidiaries renewed their master repurchase agreement with JPMorgan in February 2020 (the “JPM Loan Repurchase Facility”). ​As of September 30, 2020, we had $175.8 million outstanding under the JPM Loan Repurchase Facility. The JPM Loan Repurchase Facility is used to finance commercial transitional loans, conventional commercial loans and commercial mezzanine loans and securities and the interest rate is LIBOR plus a spread, which is determined by the lender on an asset-by-asset basis. The JPM Loan Repurchase Facility is committed through December 10, 2020, and up to 25% of the then-current unpaid obligations of ReadyCap Warehouse Financing, Sutherland Warehouse Trust and Ready Capital Mortgage Depositor II, LLC are fully guaranteed by us.​The eligible assets for the JPM Loan Repurchase Facility are loans secured by first and junior mortgage liens on commercial properties and subject to approval by JPM as the Buyer. The principal amount paid by the bank for each mortgage loan is based on the principal balance of such mortgage loan. ReadyCap Warehouse Financing and Sutherland Warehouse Trust paid the bank a structuring fee and are also required to pay the bank unused fees for the JPM Loan Repurchase Facility, as well as certain other administrative costs and expenses. The JPM Loan Repurchase Facility also includes financial maintenance covenants, which include (i) total stockholders’ equity must not be permitted to be less than the sum of (a) 60% of total stockholders’ equity as of the closing date of the facility plus (b) 50% of the net proceeds of any equity issuance after the closing date (ii) maximum leverage of 3:1 and (iii) liquidity equal to at least the lesser of (a) 4% of the sum of (without duplication) (1) any outstanding indebtedness plus (2) amounts due under the repurchase agreement and (b) $15.0 million.​Citibank loan repurchase agreement​Our subsidiaries, Waterfall Commercial Depositor, LLC, Sutherland Asset I, LLC, Ready Capital Subsidiary REIT I, LLC, and ReadyCap Commercial, LLC renewed a master repurchase agreement in August 2020 with Citibank, N.A. (the "Citi Loan Repurchase Facility" and, together with the DB Loan Repurchase Facility and the JPM Loan Repurchase Facility, the "Loan Repurchase Facilities"), pursuant to which Waterfall Commercial Depositor and Sutherland Asset I may sell, and later repurchase, a trust certificate (the “Trust Certificate”), representing interests in mortgage loans in an aggregate principal amount of up to $500 million. 94
​As of September 30, 2020, we had $103.3 million outstanding under the Citi Loan Repurchase Facility. The Citi Loan Repurchase Facility is used to finance SBC loans, and the interest rate is one month LIBOR plus a spread, depending on asset characteristics. The Citi Loan Repurchase Facility is committed for a period of 364 days, and up to 25% of the then-current unpaid obligations of Waterfall Commercial Depositor, Sutherland Asset I, and ReadyCap Commercial, LLC are fully guaranteed by us.​The eligible assets for the Citi Loan Repurchase Facility are loans secured by a first mortgage lien on commercial properties, which, amongst other things, generally have a UPB of less than $10 million. The principal amount paid by the bank for the Trust Certificate is based on a percentage of the lesser of the market value or the UPB of such mortgage loans backing the Trust Certificate. Waterfall Commercial Depositor, Sutherland Asset I, and ReadyCap Commercial, LLC are required to pay the bank a commitment fee for the Citi Loan Repurchase Facility, as well as certain other administrative costs and expenses. The Citi Loan Repurchase Facility includes financial maintenance covenants, which include (i) our operating partnership’s net asset value not (A) declining more than 15% in any calendar month, (B) declining more than 25% in any calendar quarter, (C) declining more than 35% in any calendar year, or (D) declining more than 50% from our operating partnership’s highest net asset value set forth in any audited financial statement provided to the bank; (ii) our operating partnership maintaining liquidity in an amount equal to at least 1% of our outstanding indebtedness; and (iii) the ratio of our operating partnership’s total indebtedness (excluding non-recourse liabilities in connection with any securitization transaction) to our net asset value not exceeding 4:1 at any time.​Securities repurchase agreements ​As of September 30, 2020, we had $184.4 million of secured borrowings related to SBC ABS and pledged Trust Certificates with four counterparties (lenders).​General statements regarding loan and securities repurchase facilities ​At September 30, 2020, we had $850.1 million in fair value of Trust Certificates and loans pledged against our borrowings under the Loan Repurchase Facilities and $73.9 million in fair value of SBC ABS and short term investments pledged against our securities repurchase agreement borrowings.​Under the Loan Repurchase Facilities and securities repurchase agreements, we may be required to pledge additional assets to our counterparties in the event that the estimated fair value of the existing pledged collateral under such agreements declines and such lenders demand additional collateral, which may take the form of additional assets or cash. Generally, the Loan Repurchase Facilities and securities repurchase agreements contain a LIBOR-based financing rate, term and haircuts depending on the types of collateral and the counterparties involved. ​If the estimated fair values of the assets increase due to changes in market interest rates or other market factors, lenders may release collateral back to us. Margin calls may result from a decline in the value of the investments securing the Loan Repurchase Facilities and securities repurchase agreements, prepayments on the loans securing such investments and from changes in the estimated fair value of such investments generally due to principal reduction of such investments from scheduled amortization and resulting from changes in market interest rates and other market factors. Counterparties also may choose to increase haircuts based on credit evaluations of our Company and/or the performance of the assets in question. Historically, disruptions in the financial and credit markets have resulted in increased volatility in these levels, and this volatility could persist as market conditions continue to change. Should prepayment speeds on the mortgages underlying our investments or market interest rates suddenly increase, margin calls on the Loan Repurchase Facilities and securities repurchase agreements could result, causing an adverse change in our liquidity position. To date, we have satisfied all of our margin calls and have never sold assets in response to any margin call under these borrowings.​Our borrowings under repurchase agreements are renewable at the discretion of our lenders and, as such, our ability to roll-over such borrowings is not guaranteed. The terms of the repurchase transaction borrowings under our repurchase agreements generally conform to the terms in the standard master repurchase agreement as published by the Securities Industry and Financial Markets Association, as to repayment, margin requirements and the segregation of all assets we have initially sold under the repurchase transaction. In addition, each lender typically requires that we include supplemental terms and conditions to the standard master repurchase agreement. Typical supplemental terms and conditions, which differ by lender, may include changes to the margin maintenance requirements, required haircuts and purchase price 95
maintenance requirements, requirements that all controversies related to the repurchase agreement be litigated in a particular jurisdiction, and cross default and setoff provisions.​JPMorgan credit facility ​We renewed our master loan and security agreement with JPMorgan in June 2020 providing for a credit facility of up to $250 million. As of September 30, 2020, we had $30.7 million outstanding under this credit facility. The credit facility is structured as a secured loan facility in which ReadyCap Commercial, ReadyCap Lending and Sutherland 2016-1 JPM Grantor Trust act as borrowers. Under this facility, ReadyCap and Sutherland 2016-1 JPM Grantor Trust pledge loans guaranteed by the SBA under the SBA Section 7(a) Loan Program, SBA 504 loans and other loans which were part of the CIT loan acquisition. We act as a guarantor under this facility. The agreement contains financial maintenance covenants, which include (i) total stockholders’ equity must not be permitted to be less than the sum of (a) 60% of total stockholders’ equity as of the effective date of the facility plus (b) 50% of the net proceeds of any equity issuance after the effective date (ii) maximum leverage of 3:1 and (iii) liquidity equal to at least the lesser of (a) 4% of the sum of (without duplication) (1) any outstanding recourse indebtedness plus (2) amounts due under the repurchase agreement and (b) $15.0 million. The amended terms have an interest rate based on utilization ranging from one month LIBOR (reset daily), plus a spread. The term of the facility is one year, with an option to extend for an additional year.​At September 30, 2020, we had a leverage ratio of 2.0x on a recourse debt-to-equity basis.​We maintain certain assets, which, from time to time, may include cash, unpledged SBC loans, SBC ABS and short term investments (which may be subject to various haircuts if pledged as collateral to meet margin requirements) and collateral in excess of margin requirements held by our counterparties, or collectively, the “Cushion”, to meet routine margin calls and protect against unforeseen reductions in our borrowing capabilities. Our ability to meet future margin calls will be impacted by the Cushion, which varies based on the fair value of our investments, our cash position and margin requirements. Our cash position fluctuates based on the timing of our operating, investing and financing activities and is managed based on our anticipated cash needs. At September 30, 2020, we were in compliance with all debt covenants.​East West Bank credit facility​Our subsidiary, ReadyCap Lending, LLC entered into a senior secured revolving credit facility with East West Bank on July 13, 2018, which provides financing of up to $50.0 million. The agreement extends for two years, with an additional one year extension at the Company’s request and pays interest equal to the Prime Rate minus 0.821% on SBA 7(a) guaranteed loans and the Prime Rate plus 0.029% on unguaranteed loans.​Other credit facilities​GMFS funds its origination platform through warehouse lines of credit with five counterparties with total borrowings outstanding of $307.9 million at September 30, 2020. GMFS utilizes committed warehouse lines of credit agreements ranging from $50.0 million to $150.0 million, with expiration dates between November 2020 and September 2023. The lines of credit are collateralized by the underlying mortgages, related documents, and instruments, and contain a LIBOR-based financing rate and term, haircut and collateral posting provisions which depend on the types of collateral and the counterparties involved. These agreements contain covenants that include certain financial requirements, including maintenance of minimum liquidity, minimum tangible net worth, maximum debt to net worth ratio and current ratio and limitations on capital expenditures, indebtedness, distributions, transactions with affiliates and maintenance of positive net income, as defined in the agreements. ​We were in compliance with all significant debt covenants as of September 30, 2020.​96
Public offerings​Debt offerings​Convertible notes​On August 9, 2017, we closed an underwritten public sale of $115.0 million aggregate principal amount of its 7.00% convertible senior notes due 2023 (the “Convertible Notes”). The Convertible Notes will mature on August 15, 2023, unless earlier repurchased, redeemed or converted. During certain periods and subject to certain conditions, the Convertible Notes will be convertible by holders into shares of our common stock at an initial conversion rate of 1.4997 shares of common stock per $25 principal amount of the Convertible Notes, which is equivalent to an initial conversion price of approximately $16.67 per share of common stock. Upon conversion, holders will receive, at our discretion, cash, shares of our common stock or a combination thereof.We may, upon the satisfaction of certain conditions, redeem all or any portion of the Convertible Notes, at its option, on or after August 15, 2021, at a redemption price payable in cash equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest. Additionally, upon the occurrence of certain corporate transactions, holders may require us to purchase the Convertible Notes for cash at a purchase price equal to 100% of the principal amount of the Convertible Notes to be purchased, plus accrued and unpaid interest. As of September 30, 2020, we were in compliance with all covenants with respect to the Convertible Notes.​Corporate debt​On April 27, 2018, we completed the public offer and sale of $50.0 million aggregate principal amount of its 6.50% Senior Notes due 2021(the “2021 Notes”). We issued the 2021 Notes under a base indenture, dated August 9, 2017, as supplemented by the second supplemental indenture, dated as of April 27, 2018, between us and U.S. Bank National Association, as trustee. The 2021 Notes bear interest at a rate of 6.50% per annum, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, beginning on July 30, 2018. The 2021 Notes will mature on April 30, 2021, unless earlier redeemed or repurchased.​Prior to April 30, 2019, the 2021 Notes are not redeemable by us. We may redeem for cash all or any portion of the 2021 Notes, at its option, on or after April 30, 2019 and before April 30, 2020 at a redemption price equal to 101% of the principal amount of the 2021 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. On or after April 30, 2020, we may redeem for cash all or any portion of the 2021 Notes, at its option, at a redemption price equal to 100% of the principal amount of the 2021 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If we undergo a change of control repurchase event, holders may require it to purchase the 2021 Notes, in whole or in part, for cash at a repurchase price equal to 101% of the aggregate principal amount of the 2021 Notes to be purchased, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase, as described in greater detail in the Indenture.​The 2021 Notes are our senior direct unsecured obligations and will not be guaranteed by any of its subsidiaries, except to the extent described in the Indenture upon the occurrence of certain events. The 2021 Notes rank equal in right of payment to any of our existing and future unsecured and unsubordinated indebtedness; effectively junior in right of payment to any of its existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness, other liabilities (including trade payables) and (to the extent not held by us) preferred stock, if any, of its subsidiaries.​On July 22, 2019, we completed the public offer and sale of $57.5 million aggregate principal amount of its 6.20% Senior Notes due 2026 (the “2026 Notes” and together with the 2021 Notes, the “Corporate Debt”), which includes $7.5 million aggregate principal amount of the 2026 Notes relating to the full exercise of the underwriters’ over-allotment option. The net proceeds from the sale of the 2026 Notes are approximately $55.3 million, after deducting underwriters’ discount and estimated offering expenses. We will contribute the net proceeds to Sutherland Partners, L.P. (the “Operating Partnership”), its operating partnership subsidiary, in exchange for the issuance by the Operating Partnership of a senior unsecured note with terms that are substantially equivalent to the terms of the 2026 Notes. The Operating Partnership intends to use the net proceeds to originate or acquire our target assets and for general business purposes.​97
The 2026 Notes bear interest at a rate of 6.20% per annum, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, beginning on October 30, 2019. The 2026 Notes will mature on July 30, 2026, unless earlier repurchased or redeemed. We may redeem for cash all or any portion of the 2026 Notes, at its option, on or after July 30, 2022 and before July 30, 2025 at a redemption price equal to 101% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. On or after July 30, 2025, we may redeem for cash all or any portion of the 2026 Notes, at its option, at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If we undergo a change of control repurchase event, holders may require it to purchase the 2026 Notes, in whole or in part, for cash at a repurchase price equal to 101% of the aggregate principal amount of the 2026 Notes to be purchased, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase, as described in greater detail in the Indenture.The 2026 Notes are our senior unsecured obligations and will not be guaranteed by any of its subsidiaries, except to the extent described in the Indenture upon the occurrence of certain events. The 2026 Notes rank equal in right of payment to any of our existing and future unsecured and unsubordinated indebtedness; effectively junior in right of payment to any of its existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness, other liabilities (including trade payables) and (to the extent not held by us) preferred stock, if any, of its subsidiaries.​In December 2019, we completed the public offer and sale of $45.0 million aggregate principal amount of the 2026 Notes. The new notes have the same terms (expect with respect to issue date, issue price and the date from which interest will accrue) as, are fully fungible with and are treated as a single series of debt securities as, the 6.20% Senior Notes due 2026 we issued on July 22, 2019. ​As of September 30, 2020, we were in compliance with all covenants with respect to the corporate debt.​Equity offering​In December 2019, we completed a public offering of 6,000,000 shares of our common stock at a public offering price of $15.30 per share and an additional 900,000 shares of common stock at a public offering price of $15.30 per share pursuant to the underwriter’s full exercise of the over-allotment option in January 2020. Proceeds, net of offering costs and expenses were $ 91.8 million and $13.8 million for December 2019 and January 2020, respectively. There were no equity offerings during 2018.​U.S. federal income tax proposed regulations ​The discussion under the heading “Additional U.S. Federal Income Tax Considerations” in our Prospectus dated August 31, 2018, describes certain tax legislative changes applicable to us. As described in the discussion under the heading "Additional U.S. Federal Income Tax Considerations – U.S. Federal Income Tax Legislation – Income Accrual," we and our subsidiaries are required to recognize certain items of income for U.S. federal income tax purposes no later than we would report such items on our financial statements. Recently proposed Treasury regulations, which are not yet in effect but upon which taxpayers may rely, generally would exclude, among other items, original issue discount and market discount income from the applicability of this rule ​Other long term financing​ReadyCap Holdings’ 7.50% senior secured notes due 2022​During 2017, ReadyCap Holdings LLC, a subsidiary of the Company, issued $140.0 million in 7.50% Senior Secured Notes due 2022. On January 30, 2018 ReadyCap Holdings LLC, issued an additional $40.0 million in aggregate principal amount of 7.50% Senior Secured Notes due 2022, which have identical terms (other than issue date and issue price) to the notes issued during 2017 (collectively “the Senior Secured Notes”). The additional $40.0 million in Senior Secured Notes were priced with a yield to par call date of 6.5%. Payments of the amounts due on the Senior Secured Notes are fully and unconditionally guaranteed by the Company and its subsidiaries: Sutherland Partners LP, Sutherland Asset I, LLC, and ReadyCap Commercial. The funds were used to fund new SBC and SBA loan originations and new SBC loan acquisitions. ​98
The Senior Secured Notes bear interest at 7.50% per annum payable semiannually on each February 15 and August 15, beginning on August 15, 2017. The Senior Secured Notes will mature on February 15, 2022, unless redeemed or repurchased prior to such date. ReadyCap Holdings may redeem the Senior Secured Notes prior to November 15, 2021, at its option, in whole or in part at any time and from time to time, at a price equal to 100% of the outstanding principal amount thereof, plus the applicable “make-whole” premium as of, and unpaid interest, if any, accrued to, the redemption date. On and after November 15, 2021, ReadyCap Holdings may redeem the Senior Secured Notes, at its option, in whole or in part at any time and from time to time, at a price equal to 100% of the outstanding principal amount thereof plus unpaid interest, if any, accrued to the redemption date.​ReadyCap Holdings’ and the Guarantors’ respective obligations under the Senior Secured Notes and the Guarantees are secured by a perfected first-priority lien on the capital stock of ReadyCap Holdings and ReadyCap Commercial and certain other assets owned by certain of our Company’s subsidiaries as described in greater detail in our Current Report on Form 8-K filed on June 15, 2017. The Senior Secured Notes were issued pursuant to an indenture (the "Indenture") and a first supplemental indenture (the "First Supplemental Indenture"), which contains covenants that, among other things: (i) limit the ability of our Company and its subsidiaries (including ReadyCap Holdings and the other Guarantors) to incur additional indebtedness; (ii) require that our Company maintain, on a consolidated basis, quarterly compliance with the applicable consolidated recourse indebtedness to equity ratio of our Company and consolidated indebtedness to equity ratio of our Company and specified ratios of our Company’s stockholders’ equity to aggregate principal amount of the outstanding Senior Secured Notes and our Company's consolidated unencumbered assets to aggregate principal amount of the outstanding Senior Secured Notes; (iii) limit the ability of ReadyCap Holdings and ReadyCap Commercial to pay dividends or distributions on, or redeem or repurchase, the capital stock of ReadyCap Holdings or ReadyCap Commercial; (iv) limit (1) ReadyCap's Holdings ability to create or incur any lien on the collateral and (2) unless the Senior Secured Notes are equally and ratably secured, (a) ReadyCap's Holdings ability to create or incur any lien on the capital stock of its wholly-owned subsidiary, ReadyCap Lending and (b) ReadyCap's Holdings ability to permit ReadyCap Lending to create or incur any lien on its assets to secure indebtedness of its affiliates other than its subsidiaries or any securitization entity; and (v) limit ReadyCap Holding's and the Guarantors' ability to consolidate, merge or transfer all or substantially all of ReadyCap' Holdings and the Guarantors’ respective properties and assets. The First Supplemental Indenture also requires that our Company ensure that the Replaceable Collateral Value (as defined therein) is not less than the aggregate principal amount of the Senior Secured Notes outstanding as of the last day of each of our Company's fiscal quarters.​As of September 30, 2020, we were in compliance with all covenants with respect to the Senior Secured Notes.​Securitization transactions​Our Manager’s extensive experience in loan acquisition, origination, servicing and securitization strategies has enabled us to complete several securitizations of SBC and SBA loan assets since January 2011. These securitizations allow us to match fund the SBC and SBA loans on a long-term, non-recourse basis. The assets pledged as collateral for these securitizations were contributed from our portfolio of assets. By contributing these SBC and SBA assets to the various securitizations, these transactions created capacity for us to fund other investments. ​99
| ​ | ​ | ​ | ​ | ​ | ​ |
| Deal Name | Collateral Asset Class | Issuance | Active / Collapsed | Bonds Issued(in $ millions) |
| Trusts (Firm sponsored) | ​ | ​ | ​ | ​ | ​ |
| Waterfall Victoria Mortgage Trust 2011-1 (SBC1) | SBC Acquired loans | February 2011 | Collapsed | $ | 40.5 |
| Waterfall Victoria Mortgage Trust 2011-3 (SBC3) | SBC Acquired loans | October 2011 | Collapsed | ​ | 143.4 |
| Sutherland Commercial Mortgage Trust 2015-4 (SBC4) | SBC Acquired loans | August 2015 | Collapsed | ​ | 125.4 |
| Sutherland Commercial Mortgage Trust 2018 (SBC7) | SBC Acquired loans | November 2018 | Active | ​ | 217.0 |
| ReadyCap Lending Small Business Trust 2015-1 (RCLT 2015-1) | Acquired SBA 7(a) loans | June 2015 | Collapsed | ​ | 189.5 |
| ReadyCap Lending Small Business Loan Trust 2019-2 (RCLT 2019-2) | Originated SBA 7(a) loans, Acquired SBA 7(a) loans | December 2019 | Active | ​ | 131.0 |
| ​ | ​ | ​ | ​ | ​ | ​ |
| Real Estate Mortgage Investment Conduits (REMICs) | ​ | ​ | ​ | ​ | ​ |
| ReadyCap Commercial Mortgage Trust 2014-1 (RCMT 2014-1) | SBC Originated conventional | September 2014 | Active | $ | 181.7 |
| ReadyCap Commercial Mortgage Trust 2015-2 (RCMT 2015-2) | SBC Originated conventional | November 2015 | Active | ​ | 218.8 |
| ReadyCap Commercial Mortgage Trust 2016-3 (RCMT 2016-3) | SBC Originated conventional | November 2016 | Active | ​ | 162.1 |
| ReadyCap Commercial Mortgage Trust 2018-4 (RCMT 2018-4) | SBC Originated conventional | March 2018 | Active | ​ | 165.0 |
| Ready Capital Mortgage Trust 2019-5 (RCMT 2019-5) | SBC Originated conventional | January 2019 | Active | ​ | 355.8 |
| Ready Capital Mortgage Trust 2019-6 (RCMT 2019-6) | SBC Originated conventional | November 2019 | Active | ​ | 430.7 |
| Waterfall Victoria Mortgage Trust 2011-2 (SBC2) | SBC Acquired loans | March 2011 | Active | ​ | 97.6 |
| Sutherland Commercial Mortgage Trust 2018 (SBC6) | SBC Acquired loans | August 2017 | Active | ​ | 139.4 |
| Sutherland Commercial Mortgage Trust 2019 (SBC8) | SBC Acquired loans | June 2019 | Active | ​ | 306.5 |
| Sutherland Commercial Mortgage Trust 2020 (SBC9) | SBC Acquired loans | June 2020 | Active | ​ | 172.4 |
| ​ | ​ | ​ | ​ | ​ | ​ |
| Collateralized Loan Obligations (CLOs) | ​ | ​ | ​ | ​ | ​ |
| Ready Capital Mortgage Financing 2017– FL1 | SBC Originated transitional | August 2017 | Collapsed | $ | 198.8 |
| Ready Capital Mortgage Financing 2018 – FL2 | SBC Originated transitional | June 2018 | Active | ​ | 217.1 |
| Ready Capital Mortgage Financing 2019 – FL3 | SBC Originated transitional | April 2019 | Active | ​ | 320.2 |
| Ready Capital Mortgage Financing 2020 – FL4 | SBC Originated transitional | June 2020 | Active | ​ | 393.8 |
| ​ | ​ | ​ | ​ | ​ | ​ |
| Trusts (Non-firm sponsored) | ​ | ​ | ​ | ​ | ​ |
| Freddie Mac Small Balance Mortgage Trust 2016-SB11 | Originated agency multi-family | January 2016 | Active | $ | 110.0 |
| Freddie Mac Small Balance Mortgage Trust 2016-SB18 | Originated agency multi-family | July 2016 | Active | ​ | 118.0 |
| Freddie Mac Small Balance Mortgage Trust 2017-SB33 | Originated agency multi-family | June 2017 | Active | ​ | 197.9 |
| Freddie Mac Small Balance Mortgage Trust 2018-SB45 | Originated agency multi-family | January 2018 | Active | ​ | 362.0 |
| Freddie Mac Small Balance Mortgage Trust 2018-SB52 | Originated agency multi-family | September 2018 | Active | ​ | 505.0 |
| Freddie Mac Small Balance Mortgage Trust 2018-SB56 | Originated agency multi-family | December 2018 | Active | ​ | 507.3 |
| Key Commercial Mortgage Trust 2020-S3(1) | SBC Originated conventional | September 2020 | Active | ​ | 250.0 |
| (1) Contributed portion of assets into trust | ​ | ​ | ​ | ​ | ​ |

Accounting Policies” included in Item 8, “Financial Statements and Supplementary Data,” in our 2019 annual report on Form 10-K. ​Loan impairment and allowance for loan losses​The allowance for loan losses is intended to provide for credit losses inherent in the loans, held-for-investment portfolio and is reviewed quarterly for adequacy considering credit quality indicators, including probable and historical losses, collateral values, loan-to-value (“LTV”) ratio and economic conditions. The allowance for loan losses is increased through provisions for loan losses charged to earnings and reduced by charge-offs, net of recoveries. ​On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments-Credit Losses, and subsequent amendments (“ASU 2016-13”), which replaces the incurred loss methodology with an expected loss model known as the Current Expected Credit Loss ("CECL") model. CECL amends the previous credit loss model to reflect a reporting entity's current estimate of all expected credit losses, not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost. The allowance for loan losses required under ASU 2016-13 is deducted from the respective loans’ amortized cost basis on our unaudited consolidated balance sheets. The guidance also requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption.​In connection with the Company’s adoption of ASU 2016-13 on January 1, 2020, the Company implemented new processes including the utilization of loan loss forecasting models, updates to the Company’s reserve policy documentation, changes to internal reporting processes and related internal controls. The Company has implemented loan loss forecasting models for estimating expected life-time credit losses, at the individual loan level, for its loan portfolio. The CECL forecasting methods used by the Company include (i) a probability of default and loss given default method using underlying third-party CMBS/CRE loan database with historical loan losses from 1998 to 2019 and (ii) probability weighted expected cash flow method, depending on the type of loan and the availability of relevant historical market loan loss data. The Company might use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data.​The Company estimates the CECL expected credit losses for its loan portfolio at the individual loan level. 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. 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 CECL expected credit losses. The Company considers loan investments that are both (i) expected to be substantially repaid through the operation or sale of the underlying collateral, and (ii) for which the borrower is experiencing financial difficulty, to be “collateral-dependent” loans. For such loans that the Company determines that foreclosure of the collateral is probable, the Company measures the expected losses based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For collateral-dependent loans that the Company determines foreclosure is not probable, the Company applies a practical expedient to estimate expected losses using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan.​While we have a formal methodology to determine the adequate and appropriate level of the allowance for loan losses, estimates of inherent loan losses involve judgment and assumptions as to various factors, including current economic conditions. Our determination of adequacy of the allowance for loan losses is based on quarterly evaluations of the above factors. Accordingly, the provision for loan losses will vary from period to period based on management's ongoing assessment of the adequacy of the allowance for loan losses.​Significant judgment is required when evaluating loans for impairment; therefore, actual results over time could be materially different. Refer to “Notes to Consolidated Financial Statements, Note 6 – Loans and Allowance for Loan Losses” included in Item 8, “Financial Statements and Supplementary Data,” in this quarterly report on Form 10-Q for results of our loan impairment evaluation.​101
Valuation of financial assets and liabilities carried at fair value​We measure our MBS, derivative assets and liabilities, residential mortgage servicing rights, and any assets or liabilities where we have elected the fair value option at fair value, including certain loans we have originated that are expected to be sold to third parties or securitized in the near term. ​We have established valuation processes and procedures designed so that fair value measurements are appropriate and reliable, that they are based on observable inputs where possible, and that valuation approaches are consistently applied, and the assumptions and inputs are reasonable. We also have established processes to provide that the valuation methodologies, techniques and approaches for investments that are categorized within Level 3 of the ASC 820 Fair Value Measurement fair value hierarchy (the “fair value hierarchy”) are fair, consistent and verifiable. Our processes provide a framework that ensures the oversight of our fair value methodologies, techniques, validation procedures, and results.​When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors. Refer to “Notes to Consolidated Financial Statements, Note 7 – Fair Value Measurements” included in Item 8, “Financial Statements and Supplementary Data,” in this annual report on Form 10-K for a more complete discussion of our critical accounting estimates as they pertain to fair value measurements. ​Servicing rights impairment ​Servicing rights, at amortized cost, are initially recorded at fair value and subsequently carried at amortized cost. We have elected the fair value option on our residential mortgage servicing rights, which are not subject to impairment. ​For purposes of testing our servicing rights, carried at amortized cost, for impairment, we first determine whether facts and circumstances exist that would suggest the carrying value of the servicing asset is not recoverable. If so, we then compare the net present value of servicing cash flow with its carrying value. The estimated net present value of servicing cash flows of the intangibles is determined using discounted cash flow modeling techniques which require management to make estimates regarding future net servicing cash flows, taking into consideration historical and forecasted loan prepayment rates, delinquency rates and anticipated maturity defaults. If the carrying value of the servicing rights exceeds the net present value of servicing cash flows, the servicing rights are considered impaired and an impairment loss is recognized in earnings for the amount by which carrying value exceeds the net present value of servicing cash flows. We monitor the actual performance of our servicing rights by regularly comparing actual cash flow, credit, and prepayment experience to modeled estimates.​Significant judgment is required when evaluating servicing rights for impairment; therefore, actual results over time could be materially different. Refer to “Notes to Consolidated Financial Statements, Note 9 – Servicing Rights” included in Item 8, “Financial Statements and Supplementary Data,” in this annual report on Form 10-K for a more complete discussion of our critical accounting estimates as they pertain to servicing rights impairment.​Refer to “Notes to Consolidated Financial Statements, Note 4– Recently Issued Accounting Pronouncements” included in Item 8, “Financial Statements and Supplementary Data,” in this annual report on Form 10-K for a discussion of recent accounting developments and the expected impact to the Company.​INFLATION​Virtually all of our assets and liabilities are and will be interest rate sensitive in nature. As a result, interest rates and other factors influence our performance far more than does inflation. Changes in interest rates do not necessarily correlate with inflation rates or changes in inflation rates. Our consolidated financial statements are prepared in accordance with U.S. GAAP and our activities and balance sheet shall be measured with reference to historical cost and/or fair market value without considering inflation.​
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
102
Item 4.
Controls and Procedures
106
PART II. OTHER INFORMATION 107
Item 1.
Legal Proceedings
107
Item 1A.
Risk Factors
107
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
110
Item 3.
Defaults Upon Senior Securities
110
Item 4.
Mine Safety Disclosures
110
Item 5.
Other Information
110
Item 6.
Exhibits
110
SIGNATURES 113
EXHIBIT 31.1 CERTIFICATIONS ​
EXHIBIT 31.2 CERTIFICATIONS ​
EXHIBIT 32.1 CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, 10 U.S.C. SECTION 1350 ​
EXHIBIT 32.2 CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, 10 U.S.C. SECTION 1350 ​
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2
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 | December 31, 2019 |
| Assets | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash and cash equivalents | ​ | $ | 149,847 | ​ | $ | 67,928 |
| Restricted cash | ​ | 46,204 | ​ | 51,728 |
| Loans, net (including $ 119,965 and $ 20,212 held at fair value) | ​ | 1,393,139 | ​ | 1,727,984 |
| Loans, held for sale, at fair value | ​ | 348,719 | ​ | 188,077 |
| Mortgage backed securities, at fair value | ​ | 90,427 | ​ | 92,466 |
| Loans eligible for repurchase from Ginnie Mae | ​ | ​ | 237,542 | ​ | ​ | 77,953 |
| Investment in unconsolidated joint ventures | ​ | ​ | 69,204 | ​ | ​ | 58,850 |
| Purchased future receivables, net | ​ | ​ | 16,659 | ​ | ​ | 43,265 |
| Derivative instruments | ​ | 20,849 | ​ | 2,814 |
| Servicing rights (including $ 74,384 and $ 91,174 held at fair value) | ​ | 110,045 | ​ | 121,969 |
| Real estate, held for sale | ​ | ​ | 45,063 | ​ | ​ | 58,573 |
| Other assets | ​ | 98,614 | ​ | 106,925 |
| Assets of consolidated VIEs | ​ | ​ | 2,691,198 | ​ | ​ | 2,378,486 |
| Total Assets | ​ | $ | 5,317,510 | ​ | $ | 4,977,018 |
| Liabilities | ​ | ​ | ​ | ​ | ​ | ​ |
| Secured borrowings | ​ | 1,176,621 | ​ | 1,189,392 |
| Securitized debt obligations of consolidated VIEs, net | ​ | 2,059,114 | ​ | 1,815,154 |
| Convertible notes, net | ​ | ​ | 111,855 | ​ | ​ | 111,040 |
| Senior secured notes, net | ​ | 179,572 | ​ | 179,289 |
| Corporate debt, net | ​ | ​ | 150,658 | ​ | ​ | 149,986 |
| Guaranteed loan financing | ​ | 421,183 | ​ | 485,461 |
| Liabilities for loans eligible for repurchase from Ginnie Mae | ​ | ​ | 237,542 | ​ | ​ | 77,953 |
| Derivative instruments | ​ | 7,774 | ​ | 5,250 |
| Dividends payable | ​ | 16,934 | ​ | 21,302 |
| Accounts payable and other accrued liabilities | ​ | 132,087 | ​ | 97,407 |
| Total Liabilities | ​ | $ | 4,493,340 | ​ | $ | 4,132,234 |
| Stockholders’ Equity | ​ | ​ | ​ | ​ | ​ | ​ |
| Common stock, $ 0.0001 par value, 500,000,000 shares authorized, 54,175,648 and 51,127,326 shares issued and outstanding, respectively | ​ | 5 | ​ | 5 |
| Additional paid-in capital | ​ | 846,960 | ​ | 822,837 |
| Retained earnings | ​ | ​ | ( 31,779 ) | ​ | ​ | 8,746 |
| Accumulated other comprehensive loss | ​ | ( 9,916 ) | ​ | ( 6,176 ) |
| Total Ready Capital Corporation equity | ​ | 805,270 | ​ | 825,412 |
| Non-controlling interests | ​ | 18,900 | ​ | 19,372 |
| Total Stockholders’ Equity | ​ | $ | 824,170 | ​ | $ | 844,784 |
| Total Liabilities and Stockholders’ Equity | ​ | $ | 5,317,510 | ​ | $ | 4,977,018 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands, except share data) | 2020 | 2019 | 2020 | 2019 |
| Interest income | ​ | $ | 61,074 | ​ | $ | 59,723 | ​ | $ | 193,826 | ​ | $ | 165,510 |
| Interest expense | ​ | ( 43,823 ) | ​ | ( 39,390 ) | ​ | ( 134,162 ) | ​ | ( 110,919 ) |
| Net interest income before provision for loan losses | ​ | $ | 17,251 | ​ | $ | 20,333 | ​ | $ | 59,664 | ​ | $ | 54,591 |
| Provision for (Recovery of) loan losses | ​ | 4,231 | ​ | ( 693 ) | ​ | ( 34,984 ) | ​ | ​ | ( 2,559 ) |
| Net interest income after provision for (recovery of) loan losses | ​ | $ | 21,482 | ​ | $ | 19,640 | ​ | $ | 24,680 | ​ | $ | 52,032 |
| Non-interest income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Residential mortgage banking activities | ​ | ​ | 75,524 | ​ | ​ | 29,013 | ​ | ​ | 192,757 | ​ | ​ | 64,621 |
| Net realized gains on financial instruments and real estate owned | ​ | ​ | 7,507 | ​ | ​ | 7,377 | ​ | ​ | 22,118 | ​ | ​ | 20,914 |
| Net unrealized gain (losses) on financial instruments | ​ | ​ | 3,420 | ​ | ​ | ( 7,881 ) | ​ | ​ | ( 43,762 ) | ​ | ​ | ( 21,799 ) |
| Servicing income, net of amortization and impairment of $ 1,555 and $ 4,556 for the three and nine months ended September 30, 2020, and $ 1,609 and $ 1,425 for the three and nine months ended September 30, 2019, respectively | ​ | 10,115 | ​ | 7,449 | ​ | 27,193 | ​ | ​ | 22,012 |
| Income on purchased future receivables, net of allowance for doubtful accounts of $ 2,888 and $ 9,805 for the three and nine months ended September 30, 2020, and $ 0 and $ 0 for the three and nine months ended September 30, 2019, respectively | ​ | ​ | 4,848 | ​ | ​ | — | ​ | ​ | 13,917 | ​ | ​ | — |
| Income (loss) on unconsolidated joint ventures | ​ | ​ | 1,996 | ​ | ​ | 1,047 | ​ | ​ | ( 1,035 ) | ​ | ​ | 6,059 |
| Other income | ​ | 4,496 | ​ | 2,979 | ​ | 40,163 | ​ | ​ | 6,671 |
| Gain on bargain purchase | ​ | — | ​ | — | ​ | — | ​ | ​ | 30,728 |
| Total non-interest income | ​ | $ | 107,906 | ​ | $ | 39,984 | ​ | $ | 251,351 | ​ | $ | 129,206 |
| Non-interest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Employee compensation and benefits | ​ | ( 27,612 ) | ​ | ( 13,438 ) | ​ | ( 73,836 ) | ​ | ​ | ( 37,395 ) |
| Allocated employee compensation and benefits from related party | ​ | ( 2,250 ) | ​ | ( 1,500 ) | ​ | ( 4,750 ) | ​ | ​ | ( 3,603 ) |
| Variable expenses on residential mortgage banking activities | ​ | ( 30,918 ) | ​ | ( 17,318 ) | ​ | ( 87,494 ) | ​ | ​ | ( 39,995 ) |
| Professional fees | ​ | ( 4,158 ) | ​ | ( 2,030 ) | ​ | ( 8,632 ) | ​ | ​ | ( 5,445 ) |
| Management fees – related party | ​ | ( 2,714 ) | ​ | ( 2,495 ) | ​ | ( 7,941 ) | ​ | ​ | ( 6,987 ) |
| Incentive fees – related party | ​ | ( 1,134 ) | ​ | — | ​ | ( 4,640 ) | ​ | ​ | — |
| Loan servicing expense | ​ | ( 8,231 ) | ​ | ( 4,866 ) | ​ | ( 24,122 ) | ​ | ​ | ( 13,085 ) |
| Merger related expenses | ​ | ​ | ( 6 ) | ​ | ​ | ( 51 ) | ​ | ​ | ( 63 ) | ​ | ​ | ( 6,121 ) |
| Other operating expenses | ​ | ( 10,448 ) | ​ | ( 8,144 ) | ​ | ( 41,927 ) | ​ | ​ | ( 23,091 ) |
| Total non-interest expense | ​ | $ | ( 87,471 ) | ​ | $ | ( 49,842 ) | ​ | $ | ( 253,405 ) | ​ | $ | ( 135,722 ) |
| Income (loss) before provision for income taxes | ​ | $ | 41,917 | ​ | $ | 9,782 | ​ | $ | 22,626 | ​ | $ | 45,516 |
| Income tax (provision) benefit | ​ | ( 6,554 ) | ​ | ​ | 2,645 | ​ | ( 4,116 ) | ​ | ​ | 8,604 |
| Net income (loss) | ​ | $ | 35,363 | ​ | $ | 12,427 | ​ | $ | 18,510 | ​ | $ | 54,120 |
| Less: Net income (loss) attributable to non-controlling interest | ​ | 805 | ​ | ​ | 323 | ​ | 551 | ​ | ​ | 1,580 |
| Net income (loss) attributable to Ready Capital Corporation | ​ | $ | 34,558 | ​ | $ | 12,104 | ​ | $ | 17,959 | ​ | $ | 52,540 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Earnings (loss) per common share - basic | ​ | $ | 0.63 | ​ | $ | 0.27 | ​ | $ | 0.32 | ​ | $ | 1.29 |
| Earnings (loss) per common share - diluted | ​ | $ | 0.63 | ​ | $ | 0.27 | ​ | $ | 0.31 | ​ | $ | 1.29 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Weighted-average shares outstanding | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Basic | ​ | ​ | 54,626,995 | ​ | ​ | 44,438,652 | ​ | ​ | 53,534,497 | ​ | ​ | 40,517,231 |
| Diluted | ​ | ​ | 54,704,611 | ​ | ​ | 44,467,801 | ​ | ​ | 53,612,113 | ​ | ​ | 40,546,380 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Dividends declared per share of common stock | ​ | $ | 0.30 | ​ | $ | 0.40 | ​ | $ | 0.95 | ​ | $ | 1.20 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | ​ | 2020 | ​ | ​ | 2019 | ​ | ​ | 2020 | ​ | ​ | 2019 |
| Net Income (loss) | $ | 35,363 | ​ | $ | 12,427 | ​ | $ | 18,510 | ​ | $ | 54,120 |
| Other comprehensive income (loss) - net change by component | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net change in hedging derivatives (cash flow hedges) | $ | 671 | ​ | $ | ( 2,614 ) | ​ | $ | ( 2,478 ) | ​ | $ | ( 9,611 ) |
| Foreign currency translation adjustment | ​ | ( 712 ) | ​ | ​ | — | ​ | ​ | ( 1,342 ) | ​ | ​ | — |
| Other comprehensive loss | $ | ( 41 ) | ​ | $ | ( 2,614 ) | ​ | $ | ( 3,820 ) | ​ | $ | ( 9,611 ) |
| Comprehensive income (loss) | $ | 35,322 | ​ | $ | 9,813 | ​ | $ | 14,690 | ​ | $ | 44,509 |
| Comprehensive income (loss) attributable to non-controlling interests | ​ | 804 | ​ | ​ | 259 | ​ | ​ | 471 | ​ | ​ | 1,300 |
| Comprehensive income (loss) attributable to Ready Capital Corporation | $ | 34,518 | ​ | $ | 9,554 | ​ | $ | 14,219 | ​ | $ | 43,209 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Nine Months Ended September 30, 2019 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Retained | ​ | ​ | Accumulated Other | ​ | Total | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Common Stock | ​ | Additional Paid- | ​ | Earnings | ​ | ​ | Comprehensive | ​ | Ready Capital | ​ | Non-controlling | ​ | Total Stockholders' |
| (in thousands, except share data) | Shares | Par Value | In Capital | (Deficit) | ​ | ​ | Loss | Corporation Equity | Interests | Equity |
| Balance at January 1, 2019 | ​ | 32,105,112 | ​ | $ | 3 | ​ | $ | 540,478 | ​ | $ | 5,272 | ​ | $ | ( 922 ) | ​ | $ | 544,831 | ​ | $ | 19,244 | ​ | $ | 564,075 |
| Dividend declared on common stock ($ 1.20 per share) | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 48,639 ) | ​ | ​ | — | ​ | ​ | ( 48,639 ) | ​ | ​ | — | ​ | ​ | ( 48,639 ) |
| Dividend declared on OP units | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 1,341 ) | ​ | ​ | ( 1,341 ) |
| Shares issued pursuant to merger transactions | ​ | 12,223,552 | ​ | ​ | 1 | ​ | ​ | 179,320 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 179,321 | ​ | ​ | — | ​ | ​ | 179,321 |
| Offering costs | ​ | — | ​ | ​ | — | ​ | ​ | ( 73 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 73 ) | ​ | ​ | ( 2 ) | ​ | ​ | ( 75 ) |
| Equity component of 2017 convertible note issuance | ​ | — | ​ | ​ | — | ​ | ​ | ( 261 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 261 ) | ​ | ​ | ( 7 ) | ​ | ​ | ( 268 ) |
| Distributions, net | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 70 | ​ | ​ | 70 |
| Stock-based compensation | ​ | 78,212 | ​ | ​ | — | ​ | ​ | 1,126 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,126 | ​ | ​ | — | ​ | ​ | 1,126 |
| Manager incentive fee paid in stock | ​ | 14,939 | ​ | ​ | — | ​ | ​ | 233 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 233 | ​ | ​ | — | ​ | ​ | 233 |
| Net income | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 52,540 | ​ | ​ | — | ​ | ​ | 52,540 | ​ | ​ | 1,580 | ​ | ​ | 54,120 |
| Other comprehensive loss | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 9,331 ) | ​ | ​ | ( 9,331 ) | ​ | ​ | ( 280 ) | ​ | ​ | ( 9,611 ) |
| Balance at September 30, 2019 | ​ | 44,421,815 | ​ | $ | 4 | ​ | $ | 720,823 | ​ | $ | 9,173 | ​ | $ | ( 10,253 ) | ​ | $ | 719,747 | ​ | $ | 19,264 | ​ | $ | 739,011 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Nine Months Ended September 30, 2020 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Retained | ​ | ​ | Accumulated Other | ​ | Total | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Common Stock | ​ | Additional Paid- | ​ | Earnings | ​ | ​ | Comprehensive | ​ | Ready Capital | ​ | Non-controlling | ​ | Total Stockholders' |
| (in thousands, except share data) | Shares | Par Value | In Capital | (Deficit) | ​ | ​ | Loss | Corporation Equity | Interests | Equity |
| Balance at January 1, 2020 | ​ | 51,127,326 | ​ | $ | 5 | ​ | $ | 822,837 | ​ | $ | 8,746 | ​ | $ | ( 6,176 ) | ​ | $ | 825,412 | ​ | $ | 19,372 | ​ | $ | 844,784 |
| Cumulative-effect adjustment upon adoption of ASU 2016-13, net of taxes (Note 4) | ​ | — | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | ( 6,599 ) | ​ | ​ | — | ​ | ​ | ( 6,599 ) | ​ | ​ | ( 155 ) | ​ | ​ | ( 6,754 ) |
| Dividend declared on common stock ($ 0.95 per share) | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 51,885 ) | ​ | ​ | — | ​ | ​ | ( 51,885 ) | ​ | ​ | — | ​ | ​ | ( 51,885 ) |
| Dividend declared on OP units | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 1,093 ) | ​ | ​ | ( 1,093 ) |
| Stock issued in connection with stock dividend | ​ | 2,764,487 | ​ | ​ | — | ​ | ​ | 17,033 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 17,033 | ​ | ​ | 362 | ​ | ​ | 17,395 |
| Equity issuances | ​ | 900,000 | ​ | ​ | — | ​ | ​ | 13,410 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 13,410 | ​ | ​ | — | ​ | ​ | 13,410 |
| Offering costs | ​ | — | ​ | ​ | — | ​ | ​ | ( 49 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 49 ) | ​ | ​ | ( 1 ) | ​ | ​ | ( 50 ) |
| Distributions, net | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 50 ) | ​ | ​ | ( 50 ) |
| Equity component of 2017 convertible note issuance | ​ | — | ​ | ​ | — | ​ | ​ | ( 283 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 283 ) | ​ | ​ | ( 6 ) | ​ | ​ | ( 289 ) |
| Stock-based compensation | ​ | 103,424 | ​ | ​ | — | ​ | ​ | 1,441 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,441 | ​ | ​ | — | ​ | ​ | 1,441 |
| Manager incentive fee paid in stock | ​ | 212,844 | ​ | ​ | — | ​ | ​ | 1,806 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,806 | ​ | ​ | — | ​ | ​ | 1,806 |
| Share repurchases | ​ | ( 932,433 ) | ​ | ​ | — | ​ | ​ | ( 9,235 ) | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | ( 9,235 ) | ​ | ​ | — | ​ | ​ | ( 9,235 ) |
| Net income | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 17,959 | ​ | ​ | — | ​ | ​ | 17,959 | ​ | ​ | 551 | ​ | ​ | 18,510 |
| Other comprehensive loss | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 3,740 ) | ​ | ​ | ( 3,740 ) | ​ | ​ | ( 80 ) | ​ | ​ | ( 3,820 ) |
| Balance at September 30, 2020 | ​ | 54,175,648 | ​ | $ | 5 | ​ | $ | 846,960 | ​ | $ | ( 31,779 ) | ​ | $ | ( 9,916 ) | ​ | $ | 805,270 | ​ | $ | 18,900 | ​ | $ | 824,170 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, 2019 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Retained | ​ | ​ | Accumulated Other | ​ | Total | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Common Stock | ​ | Additional Paid- | ​ | Earnings | ​ | ​ | Comprehensive | ​ | Ready Capital | ​ | Non-controlling | ​ | Total Stockholders' |
| (in thousands, except share data) | Shares | Par Value | In Capital | (Deficit) | ​ | ​ | Loss | Corporation Equity | Interests | Equity |
| Balance at July 1, 2019 | ​ | 44,415,479 | ​ | $ | 4 | ​ | $ | 720,812 | ​ | $ | 14,914 | ​ | $ | ( 7,703 ) | ​ | $ | 728,027 | ​ | $ | 19,379 | ​ | $ | 747,406 |
| Dividend declared on common stock ($ 0.40 per share) | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 17,845 ) | ​ | ​ | — | ​ | ​ | ( 17,845 ) | ​ | ​ | — | ​ | ​ | ( 17,845 ) |
| Dividend declared on OP units | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 447 ) | ​ | ​ | ( 447 ) |
| Equity component of 2017 convertible note issuance | ​ | — | ​ | ​ | — | ​ | ​ | ( 89 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 89 ) | ​ | ​ | ( 2 ) | ​ | ​ | ( 91 ) |
| Contributions, net | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 75 | ​ | ​ | 75 |
| Stock-based compensation | ​ | 6,336 | ​ | ​ | — | ​ | ​ | 100 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 100 | ​ | ​ | — | ​ | ​ | 100 |
| Net income | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 12,104 | ​ | ​ | — | ​ | ​ | 12,104 | ​ | ​ | 323 | ​ | ​ | 12,427 |
| Other comprehensive loss | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 2,550 ) | ​ | ​ | ( 2,550 ) | ​ | ​ | ( 64 ) | ​ | ​ | ( 2,614 ) |
| Balance at September 30, 2019 | ​ | 44,421,815 | ​ | $ | 4 | ​ | $ | 720,823 | ​ | $ | 9,173 | ​ | $ | ( 10,253 ) | ​ | $ | 719,747 | ​ | $ | 19,264 | ​ | $ | 739,011 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, 2020 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Retained | ​ | ​ | Accumulated Other | ​ | Total | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Common Stock | ​ | Additional Paid- | ​ | Earnings | ​ | ​ | Comprehensive | ​ | Ready Capital | ​ | Non-controlling | ​ | Total Stockholders' |
| (in thousands, except share data) | Shares | Par Value | In Capital | (Deficit) | ​ | ​ | Loss | Corporation Equity | Interests | Equity |
| Balance at July 1, 2020 | ​ | 54,872,789 | ​ | $ | 5 | ​ | $ | 854,222 | ​ | $ | ( 49,755 ) | ​ | $ | ( 9,876 ) | ​ | $ | 794,596 | ​ | $ | 18,450 | ​ | $ | 813,046 |
| Dividend declared on common stock ($ 0.30 per share) | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 16,582 ) | ​ | ​ | — | ​ | ​ | ( 16,582 ) | ​ | ​ | — | ​ | ​ | ( 16,582 ) |
| Dividend declared on OP units | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 352 ) | ​ | ​ | ( 352 ) |
| Stock issued in connection with stock dividend | ​ | — | ​ | ​ | ​ | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Contributions, net | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Offering costs | ​ | — | ​ | ​ | — | ​ | ​ | ( 4 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 4 ) | ​ | ​ | — | ​ | ​ | ( 4 ) |
| Equity component of 2017 convertible note issuance | ​ | — | ​ | ​ | — | ​ | ​ | ( 96 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 96 ) | ​ | ​ | ( 2 ) | ​ | ​ | ( 98 ) |
| Stock-based compensation | ​ | 26,602 | ​ | ​ | — | ​ | ​ | 320 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 320 | ​ | ​ | — | ​ | ​ | 320 |
| Manager incentive fee paid in stock | ​ | 208,690 | ​ | ​ | — | ​ | ​ | 1,753 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,753 | ​ | ​ | — | ​ | ​ | 1,753 |
| Share repurchases | ​ | ( 932,433 ) | ​ | ​ | — | ​ | ​ | ( 9,235 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 9,235 ) | ​ | ​ | — | ​ | ​ | ( 9,235 ) |
| Net income | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 34,558 | ​ | ​ | — | ​ | ​ | 34,558 | ​ | ​ | 805 | ​ | ​ | 35,363 |
| Other comprehensive loss | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 40 ) | ​ | ​ | ( 40 ) | ​ | ​ | ( 1 ) | ​ | ​ | ( 41 ) |
| Balance at September 30, 2020 | ​ | 54,175,648 | ​ | $ | 5 | ​ | $ | 846,960 | ​ | $ | ( 31,779 ) | ​ | $ | ( 9,916 ) | ​ | $ | 805,270 | ​ | $ | 18,900 | ​ | $ | 824,170 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Nine Months Ended September 30, | ​ |
| (In Thousands, except share information) | 2020 | 2019 | ​ |
| Cash Flows From Operating Activities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net income (loss) | ​ | $ | 18,510 | ​ | $ | 54,120 | ​ |
| Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Amortization of premiums, discounts, and debt issuance costs, net | ​ | ​ | 25,971 | ​ | ​ | 11,582 | ​ |
| Provision for loan losses | ​ | ​ | 34,984 | ​ | ​ | 2,559 | ​ |
| Impairment loss on real estate, held for sale | ​ | ​ | 3,075 | ​ | ​ | 824 | ​ |
| Change in repair and denial reserve | ​ | ​ | 2,452 | ​ | ​ | 221 | ​ |
| Net settlement of derivative instruments | ​ | ​ | ( 10,226 ) | ​ | ​ | ( 4,068 ) | ​ |
| Purchase of loans, held for sale, at fair value | ​ | ​ | — | ​ | ​ | ( 4,458 ) | ​ |
| Origination of loans, held for sale, at fair value | ​ | ​ | ( 3,675,821 ) | ​ | ​ | ( 1,889,835 ) | ​ |
| Proceeds from disposition and principal payments of loans, held for sale, at fair value | ​ | ​ | 3,680,537 | ​ | ​ | 1,859,478 | ​ |
| Realized gains, net | ​ | ​ | ( 199,559 ) | ​ | ​ | ( 77,847 ) | ​ |
| Unrealized losses, net | ​ | ​ | 45,786 | ​ | ​ | 21,799 | ​ |
| Gain on bargain purchase | ​ | ​ | — | ​ | ​ | ( 30,728 ) | ​ |
| Net loss (income) of unconsolidated joint ventures, net of distributions | ​ | ​ | 1,202 | ​ | ​ | ( 5,687 ) | ​ |
| Foreign currency (gain) loss, net | ​ | ​ | ( 2,452 ) | ​ | ​ | — | ​ |
| Payoff of purchased future receivables, net of originations | ​ | ​ | 16,801 | ​ | ​ | — | ​ |
| Allowance for doubtful accounts on purchased future receivables | ​ | ​ | 9,805 | ​ | ​ | — | ​ |
| Net changes in operating assets and liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Assets of consolidated VIEs (excluding loans, net), accrued interest and due from servicers | ​ | ​ | 2,897 | ​ | ​ | ( 3,188 ) | ​ |
| Receivable from third parties | ​ | ​ | 114 | ​ | ​ | 8,183 | ​ |
| Other assets | ​ | ​ | 6,929 | ​ | ​ | ( 17,185 ) | ​ |
| Accounts payable and other accrued liabilities | ​ | ​ | 38,734 | ​ | ​ | 9,360 | ​ |
| Net cash (used in) provided by operating activities | ​ | ​ | ( 261 ) | ​ | ​ | ( 64,870 ) | ​ |
| Cash Flows From Investing Activities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Origination of loans | ​ | ​ | ( 555,028 ) | ​ | ​ | ( 918,805 ) | ​ |
| Purchase of loans | ​ | ​ | ( 121,990 ) | ​ | ​ | ( 569,254 ) | ​ |
| Purchase of mortgage backed securities, at fair value | ​ | ​ | ( 14,216 ) | ​ | ​ | ( 9,593 ) | ​ |
| Purchase of real estate | ​ | ​ | ( 329 ) | ​ | ​ | ( 117 ) | ​ |
| Funding of unconsolidated joint ventures | ​ | ​ | ( 16,294 ) | ​ | ​ | ( 14,726 ) | ​ |
| Purchase of servicing rights | ​ | ​ | — | ​ | ​ | ( 894 ) | ​ |
| Proceeds on unconsolidated joint venture in excess of earnings recognized | ​ | ​ | 4,738 | ​ | ​ | 6,807 | ​ |
| Proceeds from disposition and principal payment of loans | ​ | ​ | 673,868 | ​ | ​ | 550,152 | ​ |
| Proceeds from sale and principal payment of mortgage backed securities, at fair value | ​ | ​ | 10,518 | ​ | ​ | 9,737 | ​ |
| Proceeds from sale of real estate | ​ | ​ | 11,045 | ​ | ​ | 15,626 | ​ |
| Cash acquired in connection with the ORM Merger | ​ | ​ | — | ​ | ​ | 10,822 | ​ |
| Net cash (used in) provided by investing activities | ​ | ​ | ( 7,688 ) | ​ | ​ | ( 920,245 ) | ​ |
| Cash Flows From Financing Activities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Proceeds from secured borrowings | ​ | ​ | 5,321,953 | ​ | ​ | 3,956,325 | ​ |
| Payment of secured borrowings | ​ | ​ | ( 5,336,010 ) | ​ | ​ | ( 3,486,916 ) | ​ |
| Proceeds from issuance of securitized debt obligations of consolidated VIEs | ​ | ​ | 495,220 | ​ | ​ | 879,585 | ​ |
| Proceeds from corporate debt | ​ | ​ | — | ​ | ​ | 57,500 | ​ |
| Payment of securitized debt obligations of consolidated VIEs | ​ | ​ | ( 252,276 ) | ​ | ​ | ( 315,474 ) | ​ |
| Payment of offering costs | ​ | ​ | — | ​ | ​ | ( 75 ) | ​ |
| Payment of guaranteed loan financing | ​ | ​ | ( 78,784 ) | ​ | ​ | ( 30,165 ) | ​ |
| Payment of deferred financing costs | ​ | ​ | ( 10,512 ) | ​ | ​ | ( 18,127 ) | ​ |
| Equity issuance, net of offering costs | ​ | ​ | 13,360 | ​ | ​ | — | ​ |
| Payment of contingent consideration | ​ | ​ | — | ​ | ​ | ( 1,207 ) | ​ |
| Payment of promissory note | ​ | ​ | — | ​ | ​ | ( 1,199 ) | ​ |
| Distributions from non-controlling interests, net | ​ | ​ | ( 50 ) | ​ | ​ | 70 | ​ |
| Dividend payments | ​ | ​ | ( 39,951 ) | ​ | ​ | ( 45,034 ) | ​ |
| Share repurchase program | ​ | ​ | ( 9,235 ) | ​ | ​ | — | ​ |
| Net cash (used in) provided by financing activities | ​ | ​ | 103,715 | ​ | ​ | 995,283 | ​ |
| Net increase (decrease) in cash, cash equivalents, and restricted cash | ​ | ​ | 95,766 | ​ | ​ | 10,168 | ​ |
| Cash, cash equivalents, and restricted cash at beginning of period | ​ | ​ | 127,980 | ​ | ​ | 94,970 | ​ |
| Cash, cash equivalents, and restricted cash at end of period | ​ | $ | 223,746 | ​ | $ | 105,138 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Supplemental disclosure of operating cash flow | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash paid for interest | ​ | $ | 123,499 | ​ | $ | 94,841 | ​ |
| Cash (received) paid for income taxes | ​ | $ | ( 5,878 ) | ​ | $ | ( 2,609 ) | ​ |
| Stock-based compensation | ​ | $ | 1,121 | ​ | $ | 1,126 | ​ |
| Supplemental disclosure of non-cash investing activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans transferred from loans, held for sale, at fair value to loans, net | ​ | $ | 509 | ​ | $ | 750 | ​ |
| Loans transferred to real estate owned | ​ | $ | 8,832 | ​ | $ | — | ​ |
| Deconsolidation of assets in securitization trusts | ​ | $ | — | ​ | $ | 177,815 | ​ |
| Supplemental disclosure of non-cash financing activities | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Dividend paid in stock | ​ | $ | 17,395 | ​ | $ | — | ​ |
| Common stock issued in connection with merger transactions | ​ | ​ | — | ​ | ​ | 12,223,552 | ​ |
| Deconsolidation of borrowings in securitization trusts | ​ | $ | — | ​ | $ | 177,815 | ​ |
| Share-based component of incentive fees | ​ | $ | 1,806 | ​ | $ | 233 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash and restricted cash reconciliation | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash and cash equivalents | ​ | $ | 149,847 | ​ | $ | 52,727 | ​ |
| Restricted cash | ​ | ​ | 46,204 | ​ | ​ | 45,303 | ​ |
| Cash, cash equivalents, and restricted cash in assets of consolidated VIEs | ​ | ​ | 27,695 | ​ | ​ | 7,108 | ​ |
| Cash, cash equivalents, and restricted cash at end of period | ​ | $ | 223,746 | ​ | $ | 105,138 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ● | Acquisitions. We acquire performing and non-performing SBC loans as part of our business strategy. We hold performing SBC loans to term, and we seek to maximize the value of the non-performing SBC loans acquired by us through borrower-based resolution strategies. We typically acquire non-performing loans at a discount to their unpaid principal balance (“UPB”) when we believe that resolution of the loans will provide attractive risk-adjusted returns. We also acquire purchased future receivables through our Knight Capital, LLC (“Knight Capital”) funding platform. |
| ● | SBC Originations. We originate SBC loans secured by stabilized or transitional investor properties using multiple loan origination channels through our wholly-owned subsidiary, ReadyCap Commercial, LLC (“ReadyCap Commercial”). These originated loans are generally held-for-investment or placed into securitization structures. Additionally, as part of this segment, we originate and service multi-family loans under the Federal Home Loan Mortgage Corporation’s Small Balance Loan Program (“Freddie Mac” and the “Freddie Mac program”). These originated loans are held for sale, then sold to Freddie Mac. |
| ● | SBA Originations, Acquisitions, and Servicing. We acquire, originate and service owner-occupied loans guaranteed by the SBA under its Section 7(a) loan program (the “SBA Section 7(a) Program”) through our wholly-owned subsidiary, ReadyCap Lending, LLC (“ReadyCap Lending”). We hold an SBA license as one of only 14 non-bank Small Business Lending Companies (“SBLCs”) and have been granted preferred lender status by the SBA. These originated loans are either held-for-investment, placed into securitization structures, or sold. |
| ● | Residential Mortgage Banking. We operate our residential mortgage loan origination segment through our wholly-owned subsidiary, GMFS, LLC ("GMFS"). GMFS originates residential mortgage loans eligible to be purchased, guaranteed or insured by the Federal National Mortgage Association (“Fannie Mae”), Freddie Mac, Federal Housing Administration (“FHA”), U.S. Department of Agriculture (“USDA”) and U.S. Department of |

| Veterans Affairs (“VA”) through retail, correspondent and broker channels. These originated loans are then sold to third parties, primarily agency lending programs. |

or phased out, many of these or similar restrictions remain in place, continue to be implemented or additional restrictions are being considered. Such actions are creating significant disruptions to global supply chains, and adversely impacting several industries, including but not limited to, airlines, hospitality, retail and the broader real estate industry. The major disruption caused by COVID-19 significantly reduced economic activity in most of the United States resulting in a significant increase in unemployment claims. COVID-19 has had a continued and prolonged adverse impact on economic and market conditions and has triggered a period of global economic slowdown which could have a material adverse effect on the Company’s results and financial condition.​ The full impact of COVID-19 on the real estate industry, the credit markets and consequently on the Company’s financial condition and results of operations is uncertain and cannot be predicted at the current time as it depends on several factors beyond the control of the Company including, but not limited to (i) the uncertainty around the severity and duration of the outbreak, (ii) the effectiveness of the United States public health response, (iii) the pandemic’s impact on U.S. and global economies, (iv) the timing, scope and effectiveness of additional governmental responses to the pandemic, (v) the timing and speed of economic recovery, (vi) the availability of a treatment or vaccination for COVID-19, and (vii) the negative impact on our borrowers, real estate values and cost of capital. ​ Use of estimates​The preparation of the Company’s unaudited interim consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the unaudited interim consolidated financial statements and the reported amounts of income and expenses during the reporting period. Management makes subjective estimates to project cash flows the Company expects to receive on its loans and securities as well as the related market discount rates, which significantly impacts the interest income, impairments, allowance for loan loss, and fair values recorded or disclosed. The effects of COVID-19 may negatively and materially impact significant estimates and assumptions used by the Company including, but not limited to estimates of expected credit losses, valuation of our equity method investments and the fair value estimates of the Company’s assets and liabilities. The uncertainty over the ultimate impact COVID-19 will have on the U.S. economy and global economy generally, and on our business in particular, makes any estimates and assumptions as of September 30, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. Actual results could materially differ from those estimates. ​ Basis of consolidation​The accompanying unaudited interim consolidated financial statements of the Company include the accounts and results of operations of the Operating Partnership and other consolidated subsidiaries and VIEs in which we are the primary beneficiary. The unaudited interim consolidated financial statements are prepared in accordance with ASC 810, Consolidations. Intercompany accounts and transactions have been eliminated. ​ Reclassifications​Certain amounts reported for the prior periods in the accompanying unaudited interim consolidated financial statements have been reclassified in order to conform to the current period’s presentation. ​ Cash and cash equivalents​The Company accounts for cash and cash equivalents in accordance with ASC 305, Cash and Cash Equivalents. The Company defines cash and cash equivalents as cash, demand deposits, and short-term, highly liquid investments with original maturities of 90 days or less when purchased. Cash and cash equivalents are exposed to concentrations of credit risk. We deposit our cash with institutions that we believe to have highly valuable and defensible business franchises, strong financial fundamentals, and predictable and stable operating environments. ​ Restricted cash​Restricted cash represents cash held by the Company as collateral against its derivatives, borrowings under repurchase agreements, borrowings under credit facilities with counterparties, construction and mortgage escrows, as well as cash held for remittance on loans serviced for third parties. Restricted cash is not available for general corporate purposes but 10
may be applied against amounts due to counterparties under existing swaps and repurchase agreement borrowings or returned to the Company when the restriction requirements no longer exist or at the maturity of the swap or repurchase agreement. ​ Loans, net​Loans, net consists of loans, held-for-investment, net of allowance for loan losses and loans, held at fair value.​Loans, held-for-investment​Loans, held-for-investment are loans acquired from third parties (“acquired loans”), loans originated by the Company that we do not intend to sell, or securitized loans that were previously originated by us. Securitized loans remain on the Company’s balance sheet because the securitization vehicles are consolidated under ASC 810. Acquired loans are recorded at cost at the time they are acquired. ​The Company uses the interest method to recognize, as a constant effective yield adjustment, the difference between the initial recorded investment in the loan and the principal amount of the loan. The calculation of the constant effective yield necessary to apply the interest method uses the payment terms required by the loan contract, and prepayments of principal are not anticipated to shorten the loan term.​Recognition of interest income is suspended when any loans are placed on non-accrual status. Generally, all classes of loans are placed on non-accrual status when principal or interest has been delinquent for 90 days or when full collection is determined to be not probable. Interest income accrued, but not collected, at the date loans are placed on non-accrual status is reversed and 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. Loans are restored to accrual status only when contractually current and the collection of future payments is reasonably assured.​Loans, held at fair value​Loans, held at fair value represent certain loans originated by the Company for which we have elected the fair value option. Interest is recognized as interest income in the unaudited interim consolidated statements of income when earned and deemed collectible. Changes in fair value are recurring and are reported as net unrealized gain (loss) on the unaudited interim consolidated statements of income. ​ Allowance for loan losses​The allowance for loan losses is intended to provide for credit losses inherent in the loans, held-for-investment portfolio and is reviewed quarterly for adequacy considering credit quality indicators, including probable and historical losses, collateral values, loan-to-value (“LTV”) ratio and economic conditions. The allowance for loan losses is increased through provisions for loan losses charged to earnings and reduced by charge-offs, net of recoveries. ​On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments-Credit Losses, and subsequent amendments (“ASU 2016-13”), which replaces the incurred loss methodology with an expected loss model known as the Current Expected Credit Loss ("CECL") model. CECL amends the previous credit loss model to reflect a reporting entity's current estimate of all expected credit losses, not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost. The allowance for loan losses required under ASU 2016-13 is deducted from the respective loans’ amortized cost basis on our unaudited consolidated balance sheets. The guidance also requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption.​In connection with the Company’s adoption of ASU 2016-13 on January 1, 2020, the Company implemented new processes including the utilization of loan loss forecasting models, updates to the Company’s reserve policy documentation, changes to internal reporting processes and related internal controls. The Company has implemented loan loss forecasting models for estimating expected life-time credit losses, at the individual loan level, for its loan portfolio. The CECL forecasting methods used by the Company include (i) a probability of default and loss given default method 11
using underlying third-party CMBS/CRE loan database with historical loan losses from 1998 to 2020 and (ii) probability weighted expected cash flow method, depending on the type of loan and the availability of relevant historical market loan loss data. The Company might use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data.​The Company estimates the CECL expected credit losses for its loan portfolio at the individual loan level. 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.​In certain instances, the Company considers relevant loan-specific qualitative factors to certain loans to estimate its CECL expected credit losses. The Company considers loan investments that are both (i) expected to be substantially repaid through the operation or sale of the underlying collateral, and (ii) for which the borrower is experiencing financial difficulty, to be “collateral-dependent” loans. For such loans that the Company determines that foreclosure of the collateral is probable, the Company measures the expected losses based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For collateral-dependent loans that the Company determines foreclosure is not probable, the Company applies a practical expedient to estimate expected losses using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan.​While we have a formal methodology to determine the adequate and appropriate level of the allowance for loan losses, estimates of inherent loan losses involve judgment and assumptions as to various factors, including current economic conditions. Our determination of adequacy of the allowance for loan losses is based on quarterly evaluations of the above factors. Accordingly, the provision for loan losses will vary from period to period based on management's ongoing assessment of the adequacy of the allowance for loan losses. ​ Non-accrual loans​Non-accrual loans are the loans for which we are not accruing interest income. Non-accrual loans include PCD (“purchased credit-deteriorated”) loans when principal or interest has been delinquent for 90 days or more. ​ Troubled debt restructurings​In situations where, for economic or legal reasons related to the borrower’s financial difficulties, we grant concessions for a period of time to the borrower that we would not otherwise consider, the related loans are classified as troubled debt restructurings (“TDR”). These modified terms may include interest rate reductions, principal forgiveness, term extensions, payment forbearance and other actions intended to minimize our economic loss and to avoid foreclosure or repossession of collateral. For modifications where we forgive principal, the entire amount of such principal forgiveness is immediately charged off. Other than resolutions such as foreclosures and sales, we may remove loans held-for-investment from TDR classification, but only if they have been refinanced or restructured at market terms and qualify as a new loan. ​Generally, all loans modified in a TDR are placed or remain on non-accrual status at the time of the restructuring. However, certain accruing loans modified in a TDR that are current at the time of restructuring may remain on accrual status if payment in full under the restructured terms is expected.​Additionally, based on recently issued regulatory guidance provided by federal and state regulatory agencies, loan modifications made in response to the COVID-19 pandemic are not considered TDRs if loans were considered current at the date the modification program was implemented. ​ Loans, held for sale, at fair value ​Loans, held for sale, at fair value are loans that are expected to be sold to third parties in the near term. Interest is recognized as interest income in the unaudited interim consolidated statements of income when earned and deemed collectible. For loans originated by our SBC originations and SBA originations segments, changes in fair value are 12
recurring and are reported as net unrealized gain (loss) in the unaudited interim consolidated statements of income. For originated SBA loans, the guaranteed portion is held for sale, at fair value. For loans originated by GMFS, changes in fair value are reported as residential mortgage banking activities in the unaudited interim consolidated statements of income. ​ Mortgage backed securities, at fair value​The Company accounts for MBS as trading securities and carries them at fair value under ASC 320, Investments-Debt and Equity Securities. Our MBS portfolio is comprised of asset-backed securities collateralized by interest in or obligations backed by pools of SBC loans. ​Purchases and sales of MBS are recorded as of the trade date. Our MBS securities pledged as collateral against borrowings under repurchase agreements are included in mortgage backed securities, at fair value on our unaudited interim consolidated balance sheets.​MBS are recorded at fair value as determined by market prices provided by independent broker dealers or other independent valuation service providers. The fair values assigned to these investments are based upon available information and may not reflect amounts that may be realized. We generally intend to hold our investment in MBS to generate interest income; however, we have and may continue to sell certain of our investment securities as part of the overall management of our assets and liabilities and operating our business. ​ Loans eligible for repurchase from Ginnie Mae ​When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company then records the right to repurchase the loan as an asset and liability in its unaudited interim consolidated balance sheets. Such amounts reflect the unpaid principal balance of the loans. ​ Derivative instruments, at fair value​Subject to maintaining our qualification as a REIT for U.S. federal income tax purposes, we utilize derivative financial instruments, currently comprised of credit default swaps (“CDSs”), interest rate swaps, and interest rate lock commitments (“IRLCs”) as part of our risk management. The Company accounts for derivative instruments under ASC 815, Derivatives and Hedges.​All derivatives are reported as either assets or liabilities in the unaudited interim consolidated balance sheets at the estimated fair value with the changes in the fair value recorded in earnings, unless hedge accounting is elected. ​As of September 30, 2020, the Company has offset $ 7.7 million of cash collateral receivable against our gross derivative liability positions. As of September 30, 2020 and December 31, 2019, the cash collateral receivable for derivatives that has not been offset against our derivative liability positions is $ 11.2 million and $ 9.5 million, respectively, and is included in restricted cash in the unaudited interim consolidated balance sheets.​Interest rate swap agreements​An interest rate swap is an agreement between two counterparties to exchange periodic interest payments where one party to the contract makes a fixed-rate payment in exchange for a floating-rate payment from the other party. The dollar amount each party pays is an agreed-upon periodic interest rate multiplied by some pre-determined dollar principal (notional amount). No principal (notional amount) is exchanged between the two parties at trade initiation date. Only interest payments are exchanged. Interest rate swaps are classified as Level 2 in the fair value hierarchy. The fair value adjustments are reported within net unrealized gain (loss) on financial instruments, while the related interest income or interest expense, are reported within net realized gain (loss) on financial instruments in the unaudited interim consolidated statements of income.​IRLCs​IRLCs are agreements under which GMFS agrees to extend credit to a borrower under certain specified terms and conditions in which the interest rate and the maximum amount of the loan are set prior to funding. Unrealized gains and 13
losses on the IRLCs, reflected as derivative assets and derivative liabilities, respectively, are measured based on the value of the underlying mortgage loan, quoted government-sponsored enterprise Fannie Mae, Freddie Mac, and the Government National Mortgage Association ((“Ginnie Mae”), collectively, “GSEs”) or MBS prices, estimates of the fair value of the mortgage servicing rights (“MSRs”) and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The realized and unrealized gains or losses are reported in the unaudited interim consolidated statements of income as residential mortgage banking activities. IRLCs are classified as Level 3 in the fair value hierarchy.​FX forwards​ FX forwards are agreements between two counterparties to exchange a pair of currencies at a set rate on a future date. FX forward contracts are used to convert the foreign currency risk to U.S. dollars to mitigate exposure to fluctuations in FX rates. The fair value adjustments are reported within net unrealized gain (loss) on financial instruments in the consolidated statements of income. FX forwards are classified as Level 2 in the fair value hierarchy. ​CDSs​CDSs are contracts between two parties, a protection buyer, who makes fixed periodic payments, and a protection seller, who collects the premium in exchange for making the protection buyer whole in the case of default. The fair value adjustments are reported within net unrealized gain (loss) on financial instruments, while the related interest income or interest expense, are reported within net realized gain (loss) on financial instruments in the unaudited interim consolidated statements of income. CDS are classified as Level 2 in the fair value hierarchy.​Hedge accounting​As a general rule, hedge accounting is permitted where the Company is exposed to a particular risk, such as interest rate risk, that causes changes in the fair value of an asset or liability or variability in the expected future cash flows of an existing asset, liability, or forecasted transaction that may affect earnings.​To qualify as an accounting hedge under the hedge accounting rules (versus an economic hedge where hedge accounting is not applied), a hedging relationship must be highly effective in offsetting the risk designated as being hedged. We use cash flow hedges to hedge the exposure to variability in cash flows from forecasted transactions, including the anticipated issuance of securitized debt obligations. ASC 815 requires that a forecasted transaction be identified as either: 1) a single transaction, or 2) a group of individual transactions that share the same risk exposures for which they are designated as being hedged. Hedges of forecasted transactions are considered cash flow hedges since the price is not fixed, hence involve variability of cash flows.​For qualifying cash flow hedges, the change in the fair value of the derivative (the hedging instrument) is recorded in other comprehensive income (loss) ("OCI"), and is reclassified out of OCI and into the consolidated statements of income when the hedged cash flows affect earnings. These amounts are recognized consistent with the classification of the hedged item, primarily interest expense (for hedges of interest rate risk). If the hedge relationship is terminated, then the value of the derivative recorded in accumulated other comprehensive income (loss) ("AOCI") is recognized in earnings when the cash flows that were hedged affect earnings, so long as the forecasted transaction remains probable of occurring. For hedge relationships that are discontinued because a forecasted transaction is probable of not occurring according to the original hedge forecast (including an additional two-month window), any related derivative values recorded in AOCI are immediately recognized in earnings. Hedge accounting is generally terminated at the debt issuance date because we are no longer exposed to cash flow variability subsequent to issuance. Accumulated amounts recorded in AOCI at that date are then released to earnings in future periods to reflect the difference in 1) the fixed rates economically locked in at the inception of the hedge and 2) the actual fixed rates established in the debt instrument at issuance. Because of the effects of the time value of money, the actual interest expense reported in earnings will not equal the effective yield locked in at hedge inception multiplied by the par value. Similarly, this hedging strategy does not actually fix the interest payments associated with the forecasted debt issuance. ​ Servicing rights ​Servicing rights initially represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service 14
the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the servicing right asset against contractual servicing and ancillary fee income.​Servicing rights are recognized upon sale of loans, including a securitization of loans accounted for as a sale in accordance with GAAP, if servicing is retained. For servicing rights, gains related to servicing rights retained is included in net realized gain (loss) in the unaudited interim consolidated statements of income. For residential mortgage servicing rights, gains on servicing rights retained upon sale of a loan are included in residential mortgage banking activities in the unaudited interim consolidated statements of income.​The Company treats its servicing rights and residential mortgage servicing rights as two separate classes of servicing assets based on the class of the underlying mortgages and it treats these assets as two separate pools for risk management purposes. Servicing rights relating to the Company’s servicing of loans guaranteed by the SBA under its Section 7(a) loan program and servicing rights related to the Freddie Mac program are accounted for under ASC 860, Transfers and Servicing, while the Company’s residential mortgage servicing rights are accounted for under the fair value option under ASC 825, Financial Instruments.​Servicing rights – SBA and Freddie Mac​SBA and Freddie Mac servicing rights are initially recorded at fair value and subsequently carried at amortized cost. We capitalize the value expected to be realized from performing specified servicing activities for others. Servicing rights are amortized in proportion to and over the period of estimated servicing income and are evaluated for potential impairment quarterly.​For purposes of testing our servicing rights for impairment, we first determine whether facts and circumstances exist that would suggest the carrying value of the servicing asset is not recoverable. If so, we then compare the net present value of servicing cash flow with its carrying value. The estimated net present value of servicing cash flows is determined using discounted cash flow modeling techniques, which require management to make estimates regarding future net servicing cash flows, taking into consideration historical and forecasted loan prepayment rates, delinquency rates and anticipated maturity defaults. If the carrying value of the servicing rights exceeds the net present value of servicing cash flows, the servicing rights are considered impaired and an impairment loss is recognized in earnings for the amount by which carrying value exceeds the net present value of servicing cash flows.​We estimate the fair value of servicing rights by determining the present value of future expected servicing cash flows using modeling techniques that incorporate management's best estimates of key variables including estimates regarding future net servicing cash flows, forecasted loan prepayment rates, delinquency rates, and return requirements commensurate with the risks involved. Cash flow assumptions are modeled using our internally forecasted revenue and expenses, and where possible, the reasonableness of assumptions is periodically validated through comparisons to market data. Prepayment speed estimates are determined from historical prepayment rates or obtained from third-party industry data. Return requirement assumptions are determined using data obtained from market participants, where available, or based on current relevant interest rates plus a risk-adjusted spread. We also consider other factors that can impact the value of the servicing rights, such as surety provider termination clauses and servicer terminations that could result if we failed to materially comply with the covenants or conditions of our servicing agreements and did not remedy the failure. Since many factors can affect the estimate of the fair value of servicing rights, we regularly evaluate the major assumptions and modeling techniques used in our estimate and review these assumptions against market comparables, if available. We monitor the actual performance of our servicing rights by regularly comparing actual cash flow, credit, and prepayment experience to modeled estimates.​Servicing rights - Residential (carried at fair value)​The Company’s residential mortgage servicing rights consist of conforming conventional residential loans sold to Fannie Mae and Freddie Mac or loans securitized in Ginnie Mae securities. Government insured loans serviced by the Company are securitized through Ginnie Mae, whereby the Company is insured against loss by the Federal Housing Administration or partially guaranteed against loss by the Department of Veterans Affairs.​The Company has elected to account for its portfolio of residential mortgage servicing rights (“MSRs”) at fair value. For these assets, the Company uses a third-party vendor to assist management in estimating the fair value. The third-party vendor uses a discounted cash flow approach which consists of projecting servicing cash flows discounted at a rate that 15
management believes market participants would use in their determinations of fair value. The key assumptions used in the estimation of the fair value of MSRs include prepayment rates, discount rates, default rates, and cost of servicing rates. Residential MSRs are classified as Level 3 in the fair value hierarchy. ​ Real estate, held for sale​Real estate, held for sale, includes purchased real estate and real estate acquired in full or partial settlement of loan obligations, generally through foreclosure, that is being marketed for sale. Real estate, held for sale is recorded at acquisition at the property’s estimated fair value less estimated costs to sell.​After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. After acquisition, real estate held for sale is analyzed periodically for changes in fair values and any subsequent write down is charged through impairment.​The Company records a gain or loss from the sale of real estate when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of real estate to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction price is probable. Once these criteria are met, the real estate is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. This adjustment is based on management’s estimate of the fair value of the loan extended to the buyer to finance the sale.​ Investment in unconsolidated joint ventures ​According to ASC 323, Equity Method and Joint Ventures, investors in unincorporated entities such as partnerships and unincorporated joint ventures generally shall account for their investments using the equity method of accounting if the investor has the ability to exercise significant influence over the investee. Under the equity method, we recognize our allocable share of the earnings or losses of the investment monthly in earnings and adjust the carrying amount for our share of the distributions that exceed our earnings. ​ Purchased future receivables​Through Knight Capital, the Company provides working capital advances to small businesses through the purchase of their future revenues. The Company enters into a contract with the business whereby the Company pays the business an upfront amount in return for a specific amount of the business’s future revenue receivables, known as payback amounts. The payback amounts are primarily received through daily payments initiated by automated clearing house (“ACH”) transactions. ​Revenues from purchased future receivables are realized when funds are received under each contract. The allocation of the amount received is determined by apportioning the amount received based upon the factor (discount) rate of the business's contract. Management believes that this methodology best reflects the effective interest method. ​The Company has established an allowance for doubtful purchased future receivables. An increase in the allowance for doubtful purchased future receivables results in a charge to income and is reduced when purchased future receivables are charged-off. Purchased future receivables are charged-off after 90 days past due. Management believes that the allowance reflects the risk elements and is adequate to absorb losses inherent in the portfolio. Although management has performed this evaluation, future adjustments may be necessary based on changes in economic conditions or other factors. ​ Intangible assets ​The Company accounts for intangible assets under ASC 350, Intangibles- Goodwill and Other. The Company’s intangible assets include an SBA license, capitalized software, a broker network, trade names, and an acquired favorable lease. The Company capitalizes software costs expected to result in long-term operational benefits, such as replacement systems or new applications that result in significantly increased operational efficiencies or functionality. All other costs incurred in connection with internal use software are expensed as incurred. The Company initially records its intangible assets at cost or fair value and will test for impairment if a triggering event occurs. Intangible assets are included within 16
other assets in the consolidated balance sheets. The Company amortizes intangible assets with identified estimated useful lives on a straight-line basis over their estimated useful lives. ​ Goodwill​The Company recorded goodwill in connection with the Company’s acquisition of Knight Capital. Goodwill is not amortized, but rather, is tested for impairment annually or more frequently if events or changes in circumstances indicate potential impairment. Goodwill represents the excess of the consideration paid over the fair value of net assets acquired in connection with the acquisition of Knight. ​In testing goodwill for impairment, the Company follows ASC 350, Intangibles- Goodwill and Other, which permits a qualitative assessment of whether it is more likely than not that the fair value of the reporting unit is less than its carrying value including goodwill. If the qualitative assessment determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill, then no impairment is determined to exist for the reporting unit. However, if the qualitative assessment determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value including goodwill, we compare the fair value of that reporting unit with its carrying value, including goodwill. If the carrying value of a reporting unit exceeds its fair value, goodwill is considered impaired with the impairment loss equal to the amount by which the carrying value of the goodwill exceeds the implied fair value of that goodwill.​ Deferred financing costs​Costs incurred in connection with our secured borrowings are accounted for under ASC 340, Other Assets and Deferred Costs. Deferred costs are capitalized and amortized using the effective interest method over the respective financing term with such amortization reflected on our unaudited interim consolidated statements of income as a component of interest expense. Deferred financing costs may include legal, accounting and other related fees. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Pursuant to the adoption of ASU 2015-03, unamortized deferred financing costs related to securitizations and note issuances are presented in the unaudited interim consolidated balance sheets as a direct deduction from the associated liability. ​ Due from servicers​The loan servicing activities of the Company’s acquisitions and SBC originations reportable segments are performed primarily by third-party servicers. SBA loans originated by and held at RCL are internally serviced. Residential mortgage loans originated by and held at GMFS are both serviced by third-party servicers and internally serviced. The Company’s servicers hold substantially all of the cash owned by the Company related to loan servicing activities. These amounts include principal and interest payments made by borrowers, net of advances and servicing fees. Cash is generally received within thirty days of recording the receivable. ​The Company is subject to credit risk to the extent any servicer with whom the Company conducts business is unable to deliver cash balances or process loan-related transactions on the Company’s behalf. The Company monitors the financial condition of the servicers with whom the Company conducts business and believes the likelihood of loss under the aforementioned circumstances is remote. ​ Secured borrowings​Secured borrowings include borrowings under credit facilities, borrowings under repurchase agreements, and promissory notes.​Borrowings under credit facilities​The Company accounts for borrowings under credit facilities under ASC 470, Debt. The Company partially finances its loans, net through credit agreements with various counterparties. These borrowings are collateralized by loans, held-for-investment, and loans, held for sale, at fair value and have maturity dates within two years from the unaudited interim consolidated balance sheet date. If the fair value (as determined by the applicable counterparty) of the collateral securing these borrowings decreases, we may be subject to margin calls during the period the borrowings are outstanding. In instances where we do not satisfy the margin calls within the required time frame, the counterparty may retain the collateral 17
and pursue collection of any outstanding debt amount from us. Interest paid and accrued in connection with credit facilities is recorded as interest expense in the unaudited interim consolidated statements of income.​Borrowings under repurchase agreements​Borrowings under repurchase agreements are accounted for under ASC 860, Transfers and Servicing. Investment securities financed under repurchase agreements are treated as collateralized borrowings, unless they meet sale treatment or are deemed to be linked transactions. Through September 30, 2020, none of our repurchase agreements have been accounted for as components of linked transactions. All securities financed through a repurchase agreement have remained on our unaudited interim consolidated balance sheets as an asset and cash received from the lender was recorded on our unaudited interim consolidated balance sheets as a liability. Interest paid and accrued in connection with our repurchase agreements is recorded as interest expense in the unaudited interim consolidated statements of income. ​ Securitized debt obligations of consolidated VIEs, net​Since 2011, we have engaged in several securitization transactions, which the Company accounts for under ASC 810. Securitization involves transferring assets to an SPE, or securitization trust, and this SPE issues debt instruments. The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. The consolidation of the SPE includes the issuance of senior securities to third parties, which are shown as securitized debt obligations of consolidated VIEs in the consolidated balance sheets.​Debt issuance costs related to securitizations are presented as a direct deduction from the carrying value of the related debt liability. Debt issuance costs are amortized using the effective interest method and are included in interest expense in the unaudited interim consolidated statements of income. ​ Convertible note, net​ASC 470 requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. ASC 470-20 requires that the initial proceeds from the sale of these notes be allocated between a liability component and an equity component in a manner that reflects interest expense at the interest rate of similar nonconvertible debt that could have been issued by the Company at such time. We measured the estimated fair value of the debt component of our convertible notes as of the issuance date based on our nonconvertible debt borrowing rate. The equity components of the convertible senior notes have been reflected within additional paid-in capital in our unaudited interim consolidated balance sheet, and the resulting debt discount is amortized over the period during which the convertible notes are expected to be outstanding (through the maturity date) as additional non-cash interest expense. ​Upon repurchase of convertible debt instruments, ASC 470-20 requires the issuer to allocate total settlement consideration, inclusive of transaction costs, amongst the liability and equity components of the instrument based on the fair value of the liability component immediately prior to repurchase. The difference between the settlement consideration allocated to the liability component and the net carrying value of the liability component, including unamortized debt issuance costs, would be recognized as gain (loss) on extinguishment of debt in our unaudited interim consolidated statements of operations. The remaining settlement consideration allocated to the equity component would be recognized as a reduction of additional paid-in capital in our unaudited interim consolidated balance sheets. ​ Senior secured notes, net​The Company accounts for secured debt offerings under ASC 470. Pursuant to the adoption of ASU 2015-03, the Company’s senior secured notes are presented net of debt issuance costs. These senior secured notes are collateralized by loans, MBS, and retained interests of consolidated VIE’s. Interest paid and accrued in connection with senior secured notes is recorded as interest expense in the unaudited interim consolidated statements of income. ​ Corporate debt, net​The Company accounts for corporate debt offerings under ASC 470. The Company’s corporate debt is presented net of debt issuance costs. Interest paid and accrued in connection with corporate debt is recorded as interest expense in the unaudited interim consolidated statements of income. 18
​ Guaranteed loan financing​Certain partial loan sales do not qualify for sale accounting under ASC 860 because these sales do not meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest remain as an investment in the unaudited interim consolidated balance sheets and the proceeds from the portion sold is recorded as guaranteed loan financing in the liabilities section of the unaudited interim consolidated balance sheets. For these partial loan sales, the interest earned on the entire loan balance is recorded as interest income and the interest earned by the buyer in the partial loan sale is recorded within interest expense in the accompanying unaudited interim consolidated statements of income. ​ Repair and denial reserve​The repair and denial reserve represents the potential liability to the SBA in the event that we are required to make the SBA whole for reimbursement of the guaranteed portion of SBA loans. We may be responsible for the guaranteed portion of SBA loans if there are lien and collateral issues, unauthorized use of proceeds, liquidation deficiencies, undocumented servicing actions or denial of SBA eligibility. This reserve is calculated using an estimated frequency of a repair and denial event upon default, as well as an estimate of the severity of the repair and denial as a percentage of the guaranteed balance. ​ Variable interest entities​VIEs are entities that, by design, either (i) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties; or (ii) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The entity that has a financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. An entity is deemed to be the primary beneficiary of a VIE if the entity has both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. ​In determining whether we are the primary beneficiary of a VIE, we consider both qualitative and quantitative factors regarding the nature, size and form of our involvement with the VIE, such as our role establishing the VIE and our ongoing rights and responsibilities, the design of the VIE, our economic interests, servicing fees and servicing responsibilities, and other factors. ​We perform ongoing reassessments to evaluate whether changes in the entity’s capital structure or changes in the nature of our involvement with the entity result in a change to the VIE designation or a change to our consolidation conclusion. ​ Non-controlling interests​Non-controlling interests, which are presented in the unaudited interim consolidated balance sheets and the unaudited interim consolidated statements of income, represent direct investment in the Operating Partnership by Sutherland OP Holdings II, Ltd., which is managed by our Manager, and third parties. ​ Fair value option​ASC 825, Financial Instruments, provides a fair value option election that allows entities to make an election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately in our unaudited interim consolidated balance sheets from those instruments using another accounting method. ​ 19
We have elected the fair value option for certain loans held-for-sale originated by the Company that we intend to sell in the near term. The fair value elections for loans, held for sale at fair value originated by the Company were made due to the short-term nature of these instruments. ​We have elected the fair value option for loans held-for-sale originated by GMFS that the Company intends to sell in the near term. We have elected the fair value option for certain residential mortgage servicing rights acquired as part of the merger transaction.​ Share repurchase program​The Company accounts for repurchases of its common stock as a reduction in additional paid in capital. The amounts recognized represent the amount paid to repurchase these shares and are categorized on the balance sheet and changes in equity as a reduction in additional paid in capital. ​ Earnings per share​We present both basic and diluted earnings per share (“EPS”) amounts in our unaudited interim consolidated financial statements. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the maximum potential dilution that could occur from our share-based compensation, consisting of unvested restricted stock units (“RSUs”), unvested restricted stock awards (“RSAs”), as well as “in-the-money” conversion options associated with our outstanding convertible senior notes. Potential dilutive shares are excluded from the calculation if they have an anti-dilutive effect in the period.​All of the Company’s unvested RSUs and unvested RSAs contain rights to receive non-forfeitable dividends 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. ​ Income taxes​GAAP establishes financial accounting and reporting standards for the effect of income taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current period and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s unaudited interim consolidated financial statements or tax returns. We assess the recoverability of deferred tax assets through evaluation of carryback availability, projected taxable income and other factors as applicable. Significant judgment is required in assessing the future tax consequences of events that have been recognized in our unaudited interim consolidated financial statements or tax returns as well as the recoverability of amounts we record, including deferred tax assets.​We provide for exposure in connection with uncertain tax positions, which requires significant judgment by management including determination, based on the weight of the tax law and available evidence, that it is more-likely-than-not that a tax result will be realized. Our policy is to recognize interest and/or penalties related to income tax matters in income tax expense on our unaudited interim consolidated statements of income. As of September 30, 2020 and December 31, 2019, we accrued no taxes, interest or penalties related to uncertain tax positions. In addition, we do not anticipate a change in this position in the next 12 months. ​ Revenue recognition​Revenue is recognized upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is recognized through the following five-step process:​Step 1: Identify the contract(s) with a customer.Step 2: Identify the performance obligations in the contract.Step 3: Determine the transaction price.Step 4: Allocate the transaction price to the performance obligations in the contract.Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. 20
​Since the updated guidance does not apply to revenue associated with financial instruments, including interest income, realized or unrealized gains on financial instruments, loan servicing fees, loan origination fees, among other revenue streams, the adoption of this standard did not have a material impact on our unaudited interim consolidated financial statements. The revenue recognition guidance also included revisions to existing accounting rules regarding the determination of whether a company is acting as a principal or agent in an arrangement and accounting for sales of nonfinancial assets where the seller has continuing involvement. These additional revisions also did not materially impact the Company.​Interest income​Interest income on loans, held-for-investment, loans, held at fair value, loans, held for sale, at fair value, and MBS, at fair value is accrued based on the outstanding principal amount and contractual terms of the instrument. Discounts or premiums associated with the loans and investment securities are amortized or accreted into interest income as a yield adjustment on the effective interest method, based on contractual cash flows through the maturity date of the investment. On at least a quarterly basis, we review and, if appropriate, make adjustments to the accrual status of the asset. If the asset has been delinquent for the previous 90 days, the asset status will turn to non-accrual, and recognition of interest income will be suspended until the asset resumes contractual payments for three consecutive months. ​Realized gains (losses)​Upon the sale or disposition (not including the prepayment of outstanding principal balance) of 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). ​Origination income and expense​Origination income represents fees received for origination of either loans, held at fair value, loans, held for sale, at fair value, or loans, held-for-investment. For loans held, at fair value, and loans, held for sale, at fair value, pursuant to ASC 825, the Company reports origination fee income as revenue and fees charged and costs incurred as expenses. These fees and costs are excluded from the fair value. For originated loans, held-for-investment, under ASC 310-10, the Company defers these origination fees and costs at origination and amortizes them under the effective interest method over the life of the loan. Origination fees and expenses for loans, held at fair value and loans, held for sale, at fair value, are presented in the unaudited interim consolidated statements of income as components of other income and operating expenses. Origination fees for residential mortgage loans originated by GMFS are presented in the unaudited interim consolidated statements of income in residential mortgage banking activities, while origination expenses are presented within variable expenses on residential mortgage banking activities. The amortization of net origination fees and expenses for loans, held-for-investment are presented in the unaudited interim consolidated statements of income as a component of interest income. ​ Residential mortgage banking activities​Residential mortgage banking activities reflect revenue within our residential mortgage banking business directly related to loan origination and sale activity. This primarily consists of the realized gains on sales of residential loans held for sale and loan origination fee income, Residential mortgage banking activities also consists of unrealized gains and losses associated with the changes in fair value of the loans held for sale, the fair value of retained MSR additions, and the realized and unrealized gains and losses from derivative instruments. ​Gains and losses from the sale of mortgage loans held for sale are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale and is included in residential mortgage banking activities, in the unaudited interim consolidated statements of income. Sales proceeds reflect the cash received from investors from the sale of a loan plus the servicing release premium if the related MSR is sold. Gains and losses also include the unrealized gains and losses associated with the mortgage loans held for sale and the realized and unrealized gains and losses from IRLCs. ​Loan origination fee income represents revenue earned from originating mortgage loans held for sale and are reflected in residential mortgage banking activities, when loans are sold.​ 21
| ​ | ​ | ​ | ​ | ​ |
| Standard | Summary of guidance | Effects on financial statements |
| ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments | u | Replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost, which will reflect management's estimate of credit losses over the full remaining expected life of the financial assets and will consider expected future changes in macroeconomic conditions. | u | Adopted January 1, 2020. |
| Issued June 2016 | u | Eliminates existing guidance for PCI loans, and requires recognition of the accretable difference as an increase to the allowance for expected credit losses on financial assets purchased with more than insignificant credit deterioration since origination, with a corresponding increase in the recorded investment of related loans. | u | The Company adopted ASU 2016-13 using the modified retrospective method for all loans carried at amortized cost. We recorded a $ 6.8 million cumulative-effect adjustment to the opening retained earnings (net of taxes) in our consolidated statement of equity as of January 1, 2020. The Company's total increase in the allowance for loan losses was $ 11.1 million, which included a $ 3.6 million allowance for loan loss balance sheet gross up, relating to purchased credit deteriorated loans. |
| ​ | u | Requires inclusion of expected recoveries, limited to the cumulative amount of prior write-offs, when estimating the allowance for credit losses for in scope financial assets (including collateral dependent assets). | ​ | ​ |
| ​ | u | Requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. | ​ | ​ |
| ASU 2017-4, Intangibles — Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment | u | Requires an impairment loss to be recognized when the estimated fair value of a reporting unit falls below its carrying value. | u | Adopted January 1, 2020. |
| Issued January 2017 | u | Eliminates the second condition in the current guidance that requires an impairment loss to be recognized only if the estimated implied fair value of the goodwill is below its carrying value. | u | Based on current impairment test results, the adoption did not have a material effect on the consolidated financial statements. |
| ​ | ​ | ​ | u | The guidance may result in more frequent goodwill impairment losses in future periods due to the removal of the second condition. |
| ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement | u | Provides guidance on increasing the transparency and comparability of the disclosure requirements for fair value measurement. | u | Adopted in the first quarter of 2020. |
| Issued August 2018 | ​ | ​ | u | The adoption did not have a material impact on our consolidated financial statements. |

| ​ | ​ | ​ | ​ |
| (In Thousands) | March 29, 2019 |
| Assets | ​ | ​ | ​ |
| Cash and cash equivalents | ​ | $ | 10,822 |
| Loans | ​ | 130,449 |
| Real estate, held for sale | ​ | 67,973 |
| Investment in unconsolidated joint ventures | ​ | 8,619 |
| Other assets | ​ | ​ | ​ |
| Deferred tax assets | ​ | ​ | 4,660 |
| Accrued interest | ​ | 1,209 |
| Other | ​ | 379 |
| Total assets acquired | ​ | $ | 224,111 |
| Liabilities | ​ | ​ | ​ |
| Secured borrowings | ​ | 12,713 |
| Accounts payable and other accrued liabilities | ​ | ​ | 1,000 |
| Due to Manager | ​ | ​ | 228 |
| Deferred tax liabilities | ​ | ​ | 123 |
| Total liabilities assumed | ​ | $ | 14,064 |
| Net assets acquired | ​ | $ | 210,047 |
| ​ | ​ | ​ | ​ |
| ​ | ​ | ​ |
| Total consideration transferred (in thousands, except share and per share data) |
| FV of net assets acquired | $ | 210,047 |
| ​ | ​ | ​ |
| ORM shares outstanding at March 29, 2019 | ​ | 8,482,880 |
| Exchange ratio | x | 1.441 |
| Shares issued | ​ | 12,223,830 |
| Market price as of March 29, 2019 | $ | 14.67 |
| Total consideration transferred based on value of shares issued | $ | 179,324 |
| ​ | ​ | ​ |
| Bargain purchase gain | $ | 30,728 |
| ​ | ​ | ​ |

| ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | For the three months ended |
| (In Thousands) | ​ | ​ | March 31, 2019 |
| Selected Financial Data | ​ | ​ | ​ |
| Interest income | ​ | $ | 51,543 |
| Interest expense | ​ | ​ | ( 36,323 ) |
| Provision for loan losses | ​ | ​ | ( 518 ) |
| Non-interest income | ​ | ​ | 27,031 |
| Non-interest expense | ​ | ​ | ( 37,721 ) |
| Income before provision for income taxes | ​ | ​ | 4,012 |
| Income tax benefit (provision) | ​ | ​ | 2,996 |
| Net income | ​ | $ | 7,008 |
| ​ | ​ | ​ | ​ |
| (In Thousands) | October 25, 2019 |
| Assets | ​ | ​ | ​ |
| Cash and cash equivalents | ​ | $ | 1,673 |
| Purchased future receivables, | ​ | 39,540 |
| Prepaid expenses and other | ​ | ​ | 1,265 |
| Intangible assets | ​ | ​ | 5,880 |
| Total assets acquired | ​ | $ | 48,358 |
| Liabilities | ​ | ​ | ​ |
| Secured borrowings | ​ | 30,600 |
| Accounts payable and other accrued liabilities | ​ | ​ | 1,173 |
| Total liabilities assumed | ​ | $ | 31,773 |
| Net assets acquired | ​ | $ | 16,585 |
| ​ | ​ | ​ |
| Total Consideration Transferred (in thousands) | ​ | ​ |
| Cash consideration | $ | 17,500 |
| Common stock consideration | ​ | 10,290 |
| Total consideration transferred | $ | 27,790 |
| ​ | ​ | ​ |
| Net Tangible Assets | $ | 10,705 |
| Identified Intangible Assets | ​ | 5,880 |
| FV of net assets acquired | $ | 16,585 |
| ​ | ​ | ​ |
| Goodwill | $ | 11,205 |
| ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | Fair Value | ​ | Weighted Average Amortization Life |
| Internally developed software | $ | 3,800 | ​ | 6 years |
| Broker network | ​ | 1,200 | ​ | 4.5 years |
| Trade name | ​ | 880 | ​ | 6 years |
| Total Intangible Assets | $ | 5,880 | ​ | 6 years |

| ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | For the three months ended | ​ | ​ | For the nine months ended |
| (In Thousands) | ​ | ​ | September 30, 2019 | ​ | ​ | September 30, 2019 |
| Selected Financial Data | ​ | ​ | ​ | ​ | ​ | ​ |
| Interest income | ​ | $ | 59,723 | ​ | $ | 165,510 |
| Interest expense | ​ | ​ | ( 39,390 ) | ​ | ​ | ( 110,918 ) |
| Provision for loan losses | ​ | ​ | ( 693 ) | ​ | ​ | ( 2,559 ) |
| Non-interest income | ​ | ​ | 54,145 | ​ | ​ | 174,693 |
| Non-interest expense | ​ | ​ | ( 62,747 ) | ​ | ​ | ( 176,111 ) |
| Income before provision for income taxes | ​ | ​ | 11,038 | ​ | ​ | 50,615 |
| Income tax benefit | ​ | ​ | 2,645 | ​ | ​ | 8,604 |
| Net income | ​ | $ | 13,683 | ​ | $ | 59,219 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ● | Originated or purchased loans held-for-investment– originated transitional loans, originated conventional SBC and SBA loans, or acquired loans with no signs of credit deterioration at time of purchase. |
| ● | Loans at fair value – certain originated conventional SBC loans and PPP loans for which the Company has elected the fair value option |
| ● | Loans, held-for-sale, at fair value – originated or acquired that we intend to sell in the near term |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | September 30, 2020 | ​ | ​ | December 31, 2019 |
| Loans (In Thousands) | ​ | Carrying Value | ​ | UPB | ​ | ​ | Carrying Value | ​ | UPB |
| Loans | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Originated Transitional loans | ​ | $ | 393,069 | ​ | $ | 396,639 | ​ | ​ | $ | 593,657 | ​ | $ | 600,226 |
| Originated SBA 7(a) loans | ​ | ​ | 307,450 | ​ | ​ | 310,454 | ​ | ​ | ​ | 297,934 | ​ | ​ | 299,580 |
| Acquired SBA 7(a) loans | ​ | ​ | 213,097 | ​ | ​ | 222,870 | ​ | ​ | ​ | 255,240 | ​ | ​ | 269,396 |
| Originated SBC loans | ​ | ​ | 177,870 | ​ | ​ | 174,286 | ​ | ​ | ​ | 133,118 | ​ | ​ | 132,227 |
| Acquired loans | ​ | ​ | 213,400 | ​ | ​ | 215,519 | ​ | ​ | ​ | 430,307 | ​ | ​ | 433,079 |
| Originated PPP loans, at fair value | ​ | ​ | 106,204 | ​ | ​ | 106,204 | ​ | ​ | ​ | — | ​ | ​ | — |
| Originated SBC loans, at fair value | ​ | ​ | 13,761 | ​ | ​ | 14,095 | ​ | ​ | ​ | 20,212 | ​ | ​ | 19,565 |
| Originated Residential Agency loans | ​ | ​ | 5,235 | ​ | ​ | 5,235 | ​ | ​ | ​ | 3,396 | ​ | ​ | 3,395 |
| Total Loans, before allowance for loan losses | ​ | $ | 1,430,086 | ​ | $ | 1,445,302 | ​ | ​ | $ | 1,733,864 | ​ | $ | 1,757,468 |
| Allowance for loan losses | ​ | $ | ( 36,947 ) | ​ | $ | — | ​ | ​ | $ | ( 5,880 ) | ​ | $ | — |
| Total Loans, net | ​ | $ | 1,393,139 | ​ | $ | 1,445,302 | ​ | ​ | $ | 1,727,984 | ​ | $ | 1,757,468 |
| Loans in consolidated VIEs | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Originated SBC loans | ​ | $ | 945,188 | ​ | $ | 938,036 | ​ | ​ | $ | 1,037,844 | ​ | $ | 1,026,921 |
| Originated Transitional loans | ​ | ​ | 790,608 | ​ | ​ | 795,147 | ​ | ​ | ​ | 490,913 | ​ | ​ | 493,217 |
| Acquired loans | ​ | ​ | 781,997 | ​ | ​ | 787,399 | ​ | ​ | ​ | 666,226 | ​ | ​ | 671,698 |
| Originated SBA 7(a) loans | ​ | ​ | 71,871 | ​ | ​ | 75,718 | ​ | ​ | ​ | 79,457 | ​ | ​ | 83,559 |
| Acquired SBA 7(a) loans | ​ | ​ | 44,494 | ​ | ​ | 55,407 | ​ | ​ | ​ | 53,320 | ​ | ​ | 66,997 |
| Total Loans, in consolidated VIEs, before allowance for loan losses | ​ | $ | 2,634,158 | ​ | $ | 2,651,707 | ​ | ​ | $ | 2,327,760 | ​ | $ | 2,342,392 |
| Allowance for loan losses on loans in consolidated VIEs | ​ | $ | ( 15,709 ) | ​ | $ | — | ​ | ​ | $ | ( 1,561 ) | ​ | $ | — |
| Total Loans, net, in consolidated VIEs | ​ | $ | 2,618,449 | ​ | $ | 2,651,707 | ​ | ​ | $ | 2,326,199 | ​ | $ | 2,342,392 |
| Total Loans, net, and Loans, net in consolidated VIEs | ​ | $ | 4,011,588 | ​ | $ | 4,097,009 | ​ | ​ | $ | 4,054,183 | ​ | $ | 4,099,860 |
| Loans, held for sale, at fair value | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Originated Residential Agency loans | ​ | $ | 287,959 | ​ | $ | 274,393 | ​ | ​ | $ | 136,506 | ​ | $ | 132,016 |
| Originated Freddie Mac loans | ​ | ​ | 20,486 | ​ | ​ | 20,242 | ​ | ​ | ​ | 21,775 | ​ | ​ | 21,513 |
| Originated SBA 7(a) loans | ​ | ​ | 39,764 | ​ | ​ | 36,581 | ​ | ​ | ​ | 28,551 | ​ | ​ | 26,669 |
| Acquired loans | ​ | ​ | 510 | ​ | ​ | 505 | ​ | ​ | ​ | 1,245 | ​ | ​ | 1,208 |
| Total Loans, held for sale, at fair value | ​ | $ | 348,719 | ​ | $ | 331,721 | ​ | ​ | $ | 188,077 | ​ | $ | 181,406 |
| Loans, held for sale, at fair value in consolidated VIEs | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans, held for sale, at fair value | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Acquired loans | ​ | $ | — | ​ | $ | — | ​ | ​ | $ | 4,434 | ​ | $ | 4,400 |
| Total Loans, held for sale, at fair value in consolidated VIEs | ​ | $ | — | ​ | $ | — | ​ | ​ | $ | 4,434 | ​ | $ | 4,400 |
| Total Loans, held for sale, at fair value, and Loans, held for sale, at fair value in consolidated VIEs | ​ | $ | 348,719 | ​ | $ | 331,721 | ​ | ​ | $ | 192,511 | ​ | $ | 185,806 |
| Total Loan portfolio | ​ | $ | 4,360,307 | ​ | $ | 4,428,730 | ​ | ​ | $ | 4,246,694 | ​ | $ | 4,285,666 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | Carrying Value by Year of Origination | ​ |
| (In Thousands) | UPB | ​ | 2020 | 2019 | 2018 | 2017 | ​ | 2016 | Pre 2016 | Total |
| September 30, 2020 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans(1) (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Originated Transitional loans | ​ | $ | 1,191,786 | ​ | $ | 213,519 | ​ | $ | 602,045 | ​ | $ | 314,862 | ​ | $ | 25,295 | ​ | $ | 26,981 | ​ | $ | 1,077 | ​ | $ | 1,183,779 |
| Originated SBC loans | ​ | ​ | 1,112,322 | ​ | ​ | 62,052 | ​ | ​ | 515,957 | ​ | ​ | 262,147 | ​ | ​ | 111,020 | ​ | ​ | 45,303 | ​ | ​ | 121,842 | ​ | ​ | 1,118,321 |
| Acquired loans | ​ | ​ | 1,002,918 | ​ | ​ | 3,690 | ​ | ​ | 29,935 | ​ | ​ | 23,680 | ​ | ​ | 29,017 | ​ | ​ | 15,972 | ​ | ​ | 889,906 | ​ | ​ | 992,200 |
| Originated SBA 7(a) loans | ​ | ​ | 386,172 | ​ | ​ | 34,566 | ​ | ​ | 99,871 | ​ | ​ | 140,433 | ​ | ​ | 74,017 | ​ | ​ | 21,924 | ​ | ​ | 4,277 | ​ | ​ | 375,088 |
| Acquired SBA 7(a) loans | ​ | ​ | 278,277 | ​ | ​ | 226 | ​ | ​ | 21,837 | ​ | ​ | 14,856 | ​ | ​ | 285 | ​ | ​ | 21 | ​ | ​ | 215,868 | ​ | ​ | 253,093 |
| Originated PPP loans, at fair value | ​ | ​ | 106,204 | ​ | ​ | 106,204 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 106,204 |
| Originated SBC loans, at fair value | ​ | ​ | 14,095 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,590 | ​ | ​ | 12,171 | ​ | ​ | — | ​ | ​ | 13,761 |
| Originated Residential Agency loans | ​ | ​ | 5,235 | ​ | 2,767 | ​ | 1,252 | ​ | 707 | ​ | ​ | 218 | ​ | ​ | 89 | ​ | 202 | ​ | 5,235 |
| Total Loans, before general allowance for loans losses | ​ | $ | 4,097,009 | ​ | $ | 423,024 | ​ | $ | 1,270,897 | ​ | $ | 756,685 | ​ | $ | 241,442 | ​ | $ | 122,461 | ​ | $ | 1,233,172 | ​ | $ | 4,047,681 |
| General allowance for loan losses | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | ( 36,093 ) |
| Total Loans, net | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 4,011,588 |
| (1) Loan balances include specific allowance for loan losses of $ 16.6 million. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (2) Includes Loans, net in consolidated VIEs | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | Carrying Value by Year of Origination | ​ |
| (In Thousands) | UPB | ​ | 2020 | 2019 | 2018 | 2017 | ​ | 2016 | Pre 2016 | Total |
| September 30, 2020 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans(1) (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Current and less than 30 days past due | ​ | $ | 3,909,657 | ​ | $ | 421,458 | ​ | $ | 1,262,993 | ​ | $ | 700,411 | ​ | $ | 211,174 | ​ | $ | 112,066 | ​ | $ | 1,167,986 | ​ | $ | 3,876,088 |
| 30 - 59 Days Past Due | ​ | ​ | 34,672 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 29,777 | ​ | ​ | — | ​ | ​ | 13 | ​ | ​ | 4,358 | ​ | ​ | 34,148 |
| 60+ Days | ​ | ​ | 152,680 | ​ | ​ | 1,566 | ​ | ​ | 7,904 | ​ | ​ | 26,497 | ​ | ​ | 30,268 | ​ | ​ | 10,382 | ​ | ​ | 60,828 | ​ | ​ | 137,445 |
| Total Loans, before general allowance for loans losses | ​ | $ | 4,097,009 | ​ | $ | 423,024 | ​ | $ | 1,270,897 | ​ | $ | 756,685 | ​ | $ | 241,442 | ​ | $ | 122,461 | ​ | $ | 1,233,172 | ​ | $ | 4,047,681 |
| General allowance for loan losses | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | ( 36,093 ) |
| Total Loans, net | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 4,011,588 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | September 30, 2020 |
| Loans (In Thousands) | Current and less than 30 dayspast due | 30-59 Days Past Due | 60+ Days Past Due | Total Loans Carrying Value | ​ | Non-Accrual Loans | ​ | 90+ Days Past Due but Accruing |
| Loans(1)(2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Originated Transitional loans | $ | 1,131,075 | $ | 29,777 | $ | 22,927 | $ | 1,183,779 | ​ | $ | 13,926 | ​ | $ | — |
| Originated SBC loans | ​ | 1,065,202 | ​ | — | ​ | 53,119 | ​ | 1,118,321 | ​ | ​ | 35,393 | ​ | ​ | — |
| Acquired loans | ​ | 933,993 | ​ | 3,939 | ​ | 54,268 | ​ | 992,200 | ​ | ​ | 43,350 | ​ | ​ | — |
| Originated SBA 7(a) loans | ​ | 374,331 | ​ | — | ​ | 757 | ​ | 375,088 | ​ | ​ | 5,406 | ​ | ​ | — |
| Acquired SBA 7(a) loans | ​ | 250,046 | ​ | 432 | ​ | 2,615 | ​ | 253,093 | ​ | ​ | 8,304 | ​ | ​ | — |
| Originated PPP loans, at fair value | ​ | 106,204 | ​ | — | ​ | — | ​ | 106,204 | ​ | ​ | — | ​ | ​ | — |
| Originated SBC loans, at fair value | ​ | 13,761 | ​ | — | ​ | — | ​ | 13,761 | ​ | ​ | — | ​ | ​ | — |
| Originated Residential Agency loans | ​ | 1,476 | ​ | — | ​ | 3,759 | ​ | 5,235 | ​ | ​ | 4,153 | ​ | ​ | — |
| Total Loans, before general allowance for loans losses | $ | 3,876,088 | $ | 34,148 | $ | 137,445 | $ | 4,047,681 | ​ | $ | 110,532 | ​ | $ | — |
| General allowance for loan losses | ​ | ​ | ​ | ​ | ​ | ​ | $ | ( 36,093 ) | ​ | ​ | ​ | ​ | ​ | ​ |
| Total Loans, net | ​ | ​ | ​ | ​ | ​ | ​ | $ | 4,011,588 | ​ | ​ | ​ | ​ | ​ | ​ |
| Percentage of outstanding | ​ | 95.8 % | ​ | 0.8 % | ​ | 3.4 % | ​ | 100 % | ​ | ​ | 2.7 % | ​ | ​ | 0.0 % |
| (1) Loan balances include specific allowance for loan losses of $ 16.6 million. |
| (2) Includes Loans, net in consolidated VIEs |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | December 31, 2019 |
| Loans (In Thousands) | Current and less than 30 dayspast due | 30-59 Days Past Due | 60+ Days Past Due | Total Loans Carrying Value | ​ | Non-Accrual Loans | ​ | 90+ Days Past Due but Accruing |
| Loans(1)(2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Originated Transitional loans | $ | 1,074,955 | $ | 5,728 | $ | 5,645 | $ | 1,086,328 | ​ | $ | 24,587 | ​ | $ | — |
| Originated SBC loans | ​ | 1,137,140 | ​ | 11,769 | ​ | 19,990 | ​ | 1,168,899 | ​ | ​ | 16,089 | ​ | ​ | — |
| Acquired loans | ​ | 1,032,259 | ​ | 41,830 | ​ | 20,194 | ​ | 1,094,283 | ​ | ​ | 23,500 | ​ | ​ | 3,382 |
| Acquired SBA 7(a) loans | ​ | 297,172 | ​ | 4,048 | ​ | 5,640 | ​ | 306,860 | ​ | ​ | 9,177 | ​ | ​ | 1,326 |
| Originated SBC loans, at fair value | ​ | 20,212 | ​ | — | ​ | — | ​ | 20,212 | ​ | ​ | — | ​ | ​ | — |
| Originated SBA 7(a) loans | ​ | 370,101 | ​ | 2,085 | ​ | 4,443 | ​ | 376,629 | ​ | ​ | 8,882 | ​ | ​ | — |
| Originated Residential Agency loans | ​ | 582 | ​ | 209 | ​ | 2,605 | ​ | 3,396 | ​ | ​ | 2,105 | ​ | ​ | 74 |
| Total Loans, before allowance for loans losses | $ | 3,932,421 | $ | 65,669 | $ | 58,517 | $ | 4,056,607 | ​ | $ | 84,340 | ​ | $ | 4,782 |
| General allowance for loan losses | ​ | ​ | ​ | ​ | ​ | ​ | $ | ( 2,424 ) | ​ | ​ | ​ | ​ | ​ | ​ |
| Total Loans, net | ​ | ​ | ​ | ​ | ​ | ​ | $ | 4,054,183 | ​ | ​ | ​ | ​ | ​ | ​ |
| Percentage of outstanding | ​ | 97.0 % | ​ | 1.6 % | ​ | 1.4 % | ​ | 100 % | ​ | ​ | 2.1 % | ​ | ​ | 0.1 % |
| (1) Loan balances include specific allowance for loan losses of $ 4.0 million. |
| (2) Includes Loans, net in consolidated VIEs |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Loan-to-Value (a) | ​ |
| (In Thousands) | 0.0 – 20.0% | 20.1 – 40.0% | 40.1 – 60.0% | 60.1 – 80.0% | 80.1 – 100.0% | Greater than 100.0% | Total |
| September 30, 2020 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans(1) (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Originated Transitional loans | ​ | $ | 6,104 | $ | 29,020 | $ | 206,642 | $ | 797,901 | $ | 140,557 | $ | 3,555 | $ | 1,183,779 |
| Originated SBC loans | ​ | ​ | — | ​ | 63,989 | ​ | 486,118 | ​ | 545,201 | ​ | 12,882 | ​ | 10,131 | ​ | 1,118,321 |
| Acquired loans | ​ | ​ | 221,417 | ​ | 383,481 | ​ | 220,660 | ​ | 121,732 | ​ | 27,083 | ​ | 17,827 | ​ | 992,200 |
| Originated SBA 7(a) loans | ​ | ​ | 892 | ​ | 16,590 | ​ | 50,106 | ​ | 138,688 | ​ | 67,419 | ​ | 101,393 | ​ | 375,088 |
| Acquired SBA 7(a) loans | ​ | ​ | 8,308 | ​ | 37,983 | ​ | 94,666 | ​ | 59,547 | ​ | 28,124 | ​ | 24,465 | ​ | 253,093 |
| Originated PPP loans, at fair value | ​ | ​ | — | ​ | — | ​ | — | ​ | — | ​ | — | ​ | 106,204 | ​ | 106,204 |
| Originated SBC loans, at fair value | ​ | ​ | — | ​ | 7,345 | ​ | — | ​ | 6,416 | ​ | — | ​ | — | ​ | 13,761 |
| Originated Residential Agency loans | ​ | — | — | 89 | ​ | 924 | ​ | 3,455 | 767 | 5,235 |
| Total Loans, before general allowance for loans losses | ​ | $ | 236,721 | $ | 538,408 | $ | 1,058,281 | $ | 1,670,409 | $ | 279,520 | $ | 264,342 | $ | 4,047,681 |
| General allowance for loan losses | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | ( 36,093 ) |
| Total Loans, net | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 4,011,588 |
| Percentage of outstanding | ​ | ​ | 5.8 | % | 13.4 | % | 26.1 | % | 41.3 | % | 6.9 | % | 6.5 | % | ​ |
| December 31, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans(1) (2) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Originated Transitional loans | ​ | $ | 1,736 | $ | 28,108 | $ | 277,388 | $ | 750,298 | $ | 28,059 | $ | 739 | $ | 1,086,328 |
| Originated SBC loans | ​ | — | ​ | 60,601 | ​ | 431,312 | ​ | 660,733 | ​ | 8,045 | ​ | 8,208 | 1,168,899 |
| Acquired loans | ​ | 218,679 | ​ | 371,471 | ​ | 293,216 | ​ | 161,431 | ​ | 35,731 | ​ | 13,755 | 1,094,283 |
| Acquired SBA 7(a) loans | ​ | ​ | 7,712 | ​ | 39,566 | ​ | 103,590 | ​ | 83,954 | ​ | 39,726 | ​ | 32,312 | ​ | 306,860 |
| Originated SBC loans, at fair value | ​ | — | ​ | 8,192 | ​ | — | ​ | 6,422 | ​ | 5,598 | ​ | — | 20,212 |
| Originated SBA 7(a) loans | ​ | ​ | 865 | ​ | 13,843 | ​ | 41,166 | ​ | 130,177 | ​ | 78,544 | ​ | 112,034 | ​ | 376,629 |
| Originated Residential Agency loans | ​ | — | 51 | — | ​ | 830 | ​ | 2,393 | 122 | 3,396 |
| Total Loans, before allowance for loans losses | ​ | $ | 228,992 | $ | 521,832 | $ | 1,146,672 | $ | 1,793,845 | $ | 198,096 | $ | 167,170 | $ | 4,056,607 |
| General allowance for loan losses | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | ( 2,424 ) |
| Total Loans, net | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 4,054,183 |
| Percentage of outstanding | ​ | ​ | 5.6 | % | 12.9 | % | 28.3 | % | 44.2 | % | 4.9 | % | 4.1 | % | ​ |
| (a) Loan-to-value is calculated as carrying amount as a percentage of current collateral value |
| (1) Loan balances include specific allowance for loan loss reserves. |
| (2) Includes Loans, net in consolidated VIEs |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Geographic Concentration (% of Unpaid Principal Balance) | September 30, 2020 | ​ | December 31, 2019 |
| California | 18.7 | % | ​ | 16.9 | % |
| Texas | 14.5 | ​ | ​ | 15.2 | ​ |
| New York | 8.6 | ​ | ​ | 8.3 | ​ |
| Florida | 8.0 | ​ | ​ | 8.3 | ​ |
| Illinois | 5.2 | ​ | ​ | 5.2 | ​ |
| Georgia | 4.8 | ​ | ​ | 4.8 | ​ |
| North Carolina | 3.4 | ​ | ​ | 3.2 | ​ |
| Arizona | 3.2 | ​ | ​ | 3.4 | ​ |
| Washington | 3.1 | ​ | ​ | 2.8 | ​ |
| Colorado | ​ | 2.5 | ​ | ​ | 2.8 | ​ |
| Other | 28.0 | ​ | ​ | 29.1 | ​ |
| Total | 100.0 | % | ​ | 100.0 | % |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Collateral Concentration (% of Unpaid Principal Balance) | September 30, 2020 | ​ | December 31, 2019 |
| Multi-family | 24.1 | % | ​ | 26.6 | % |
| SBA(1) | 18.8 | ​ | ​ | 17.6 | ​ |
| Retail | 17.8 | ​ | ​ | 17.5 | ​ |
| Office | 12.1 | ​ | ​ | 12.9 | ​ |
| Mixed Use | 12.1 | ​ | ​ | 10.4 | ​ |
| Industrial | 6.6 | ​ | ​ | 6.4 | ​ |
| Lodging/Residential | 3.2 | ​ | ​ | 3.3 | ​ |
| Other | 5.3 | ​ | ​ | 5.3 | ​ |
| Total | 100.0 | % | ​ | 100.0 | % |
| (1) Further detail provided on SBA collateral concentration is included in table below. | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Collateral Concentration (% of Unpaid Principal Balance) | September 30, 2020 | ​ | December 31, 2019 |
| Lodging | ​ | 16.1 | % | ​ | 17.3 | % |
| Offices of Physicians | ​ | 12.2 | ​ | ​ | 14.1 | ​ |
| Child Day Care Services | 6.9 | ​ | ​ | 8.1 | ​ |
| Eating Places | 5.1 | ​ | ​ | 6.1 | ​ |
| Veterinarians | 3.3 | ​ | ​ | 4.1 | ​ |
| Gasoline Service Stations | ​ | 3.3 | ​ | ​ | 3.7 | ​ |
| Funeral Service & Crematories | 1.8 | ​ | ​ | 2.0 | ​ |
| Grocery Stores | 1.7 | ​ | ​ | 2.0 | ​ |
| Auto | 0.9 | ​ | ​ | 1.3 | ​ |
| Other | 48.7 | ​ | ​ | 41.3 | ​ |
| Total | 100.0 | % | ​ | 100.0 | % |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended September 30, 2020 |
| (In Thousands) | OriginatedSBC loans | Originated Transitional loans | Acquiredloans | AcquiredSBA 7(a) loans | OriginatedSBA 7(a) loans | Originated Residential Agency Loans | Total Allowance for loan losses |
| Beginning balance | $ | 8,974 | $ | 19,831 | $ | 12,564 | $ | 5,744 | $ | 9,450 | $ | 500 | $ | 57,063 |
| Provision for (Recoveries of) loan losses | ​ | ( 181 ) | ​ | ( 1,848 ) | ​ | ( 2,906 ) | ​ | ( 200 ) | ​ | 904 | ​ | — | ​ | ( 4,231 ) |
| Charge-offs and sales | ​ | — | ​ | — | ​ | — | ​ | ( 203 ) | ​ | ( 42 ) | ​ | — | ​ | ( 245 ) |
| Recoveries | ​ | — | ​ | — | ​ | — | ​ | 22 | ​ | 47 | ​ | — | ​ | 69 |
| Ending balance | $ | 8,793 | $ | 17,983 | $ | 9,658 | $ | 5,363 | $ | 10,359 | $ | 500 | $ | 52,656 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended September 30, 2019 |
| (In Thousands) | OriginatedSBC loans | Originated Transitional loans | Acquiredloans | AcquiredSBA 7(a) loans | OriginatedSBA 7(a) loans | Originated Residential Agency Loans | Total Allowance for loan losses |
| Beginning balance | $ | 421 | $ | 367 | $ | 5,138 | $ | 2,194 | $ | 694 | $ | — | $ | 8,814 |
| Provision for (Recoveries of) loan losses | ​ | 33 | ​ | ( 79 ) | ​ | 176 | ​ | ( 183 ) | ​ | 746 | ​ | — | ​ | 693 |
| Charge-offs and sales | ​ | ( 127 ) | ​ | 2 | ​ | ( 783 ) | ​ | ( 93 ) | ​ | ( 126 ) | ​ | — | ​ | ( 1,127 ) |
| Recoveries | ​ | — | ​ | — | ​ | ( 537 ) | ​ | 122 | ​ | — | ​ | — | ​ | ( 415 ) |
| Ending balance | $ | 327 | $ | 290 | $ | 3,994 | $ | 2,040 | $ | 1,314 | $ | — | $ | 7,965 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Nine Months Ended September 30, 2020 |
| (In Thousands) | OriginatedSBC loans | Originated Transitional loans | Acquiredloans | AcquiredSBA 7(a) loans | OriginatedSBA 7(a) loans | Originated Residential Agency Loans | Total Allowance for loan losses |
| Beginning balance | $ | 304 | $ | 188 | $ | 3,054 | $ | 2,114 | $ | 1,781 | $ | — | $ | 7,441 |
| Cumulative-effect adjustment upon adoption of ASU 2016-13 | ​ | 2,400 | ​ | 1,906 | ​ | 1,878 | ​ | 3,562 | ​ | 1,379 | ​ | — | ​ | 11,125 |
| Provision for (recoveries of) loan losses | ​ | 6,089 | ​ | 15,889 | ​ | 4,776 | ​ | 2 | ​ | 7,728 | ​ | 500 | ​ | 34,984 |
| Charge-offs and sales | ​ | — | ​ | — | ​ | ( 50 ) | ​ | ( 431 ) | ​ | ( 577 ) | ​ | — | ​ | ( 1,058 ) |
| Recoveries | ​ | — | ​ | — | ​ | — | ​ | 116 | ​ | 48 | ​ | — | ​ | 164 |
| Ending balance | $ | 8,793 | $ | 17,983 | $ | 9,658 | $ | 5,363 | $ | 10,359 | $ | 500 | $ | 52,656 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Nine Months Ended September 30, 2019 |
| (In Thousands) | OriginatedSBC loans | Originated Transitional loans | Acquiredloans | AcquiredSBA 7(a) loans | OriginatedSBA 7(a) loans | Originated Residential Agency Loans | Total Allowance for loan losses |
| Beginning balance | $ | 11 | $ | 353 | $ | 5,052 | $ | 2,318 | $ | 586 | $ | — | $ | 8,320 |
| Provision for (recoveries of) loan losses | ​ | 443 | ​ | ( 65 ) | ​ | 737 | ​ | 590 | ​ | 854 | ​ | — | ​ | 2,559 |
| Charge-offs and sales | ​ | ( 127 ) | ​ | 2 | ​ | ( 784 ) | ​ | ( 1,055 ) | ​ | ( 126 ) | ​ | — | ​ | ( 2,090 ) |
| Recoveries | ​ | — | ​ | — | ​ | ( 1,011 ) | ​ | 187 | ​ | — | ​ | — | ​ | ( 824 ) |
| Ending balance | $ | 327 | $ | 290 | $ | 3,994 | $ | 2,040 | $ | 1,314 | $ | — | $ | 7,965 |

| ​ | ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 | ​ | December 31, 2019 |
| Non-accrual loans | ​ | ​ | ​ | ​ | ​ |
| With an allowance | $ | 55,070 | ​ | $ | 18,063 |
| Without an allowance | ​ | 55,462 | ​ | ​ | 60,036 |
| Total recorded carrying value of non-accrual loans | $ | 110,532 | ​ | $ | 78,099 |
| Allowance for loan losses related to non-accrual loans | $ | ( 15,725 ) | ​ | $ | ( 2,093 ) |
| Unpaid principal balance of non-accrual loans | $ | 132,204 | ​ | $ | 83,991 |
| ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | September 30, 2020 | ​ | September 30, 2019 |
| Interest income on non-accrual loans for the three months ended | $ | 198 | ​ | $ | 328 |
| Interest income on non-accrual loans for the nine months ended | $ | 2,660 | ​ | $ | 934 |
| ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | September 30, 2020 | ​ | December 31, 2019 |
| (In Thousands) | SBC | ​ | SBA | ​ | Total | ​ | SBC | ​ | SBA | ​ | Total |
| Recorded carrying value modified loans classified as TDRs | $ | 10,453 | ​ | $ | 13,287 | ​ | $ | 23,740 | ​ | $ | 6,258 | ​ | $ | 14,204 | ​ | $ | 20,462 |
| Allowance for loan losses on loans classified as TDRs | $ | 215 | ​ | $ | 3,417 | ​ | $ | 3,632 | ​ | $ | 274 | ​ | $ | 454 | ​ | $ | 728 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Carrying value of modified loans classified as TDRs | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Carrying value of modified loans classified as TDRs on accrual status | $ | 296 | ​ | $ | 7,009 | ​ | $ | 7,305 | ​ | $ | 333 | ​ | $ | 7,437 | ​ | $ | 7,770 |
| Carrying value of modified loans classified as TDRs on non-accrual status | ​ | 10,157 | ​ | ​ | 6,278 | ​ | ​ | 16,435 | ​ | ​ | 5,925 | ​ | ​ | 6,767 | ​ | ​ | 12,692 |
| Total carrying value of modified loans classified as TDRs | $ | 10,453 | ​ | $ | 13,287 | ​ | $ | 23,740 | ​ | $ | 6,258 | ​ | $ | 14,204 | ​ | $ | 20,462 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended September 30, 2020 | ​ | Three Months Ended September 30, 2019 |
| (In Thousands, except number of loans) | SBC | ​ | SBA | ​ | Total | ​ | SBC | ​ | SBA | ​ | Total |
| Number of loans permanently modified | ​ | — | ​ | ​ | 6 | ​ | ​ | 6 | ​ | ​ | 1 | ​ | ​ | 15 | ​ | ​ | 16 |
| Pre-modification recorded balance (a) | $ | — | ​ | $ | 713 | ​ | $ | 713 | ​ | $ | 596 | ​ | $ | 1,843 | ​ | $ | 2,439 |
| Post-modification recorded balance (a) | $ | — | ​ | ​ | 730 | ​ | $ | 730 | ​ | $ | 596 | ​ | $ | 1,658 | ​ | $ | 2,254 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Number of loans that remain in default as of September 30, 2020 (b) | ​ | — | ​ | ​ | 4 | ​ | ​ | 4 | ​ | ​ | 1 | ​ | ​ | 3 | ​ | ​ | 4 |
| Balance of loans that remain in default as of September 30, 2020 (b) | $ | — | ​ | $ | 733 | ​ | $ | 733 | ​ | $ | 596 | ​ | $ | 61 | ​ | $ | 657 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Concession granted (a): | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Term extension | $ | — | ​ | $ | 547 | ​ | $ | 547 | ​ | $ | — | ​ | $ | 1,466 | ​ | $ | 1,466 |
| Interest rate reduction | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Principal reduction | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Foreclosure | ​ | — | ​ | ​ | 187 | ​ | ​ | 187 | ​ | ​ | 596 | ​ | ​ | 61 | ​ | ​ | 657 |
| Total | $ | — | ​ | $ | 734 | ​ | $ | 734 | ​ | $ | 596 | ​ | $ | 1,527 | ​ | $ | 2,123 |
| (a) Represents carrying value. |
| (b) Represents the September 30, 2020 carrying values of the TDRs that occurred during the three months ended September 30, 2020 and 2019 that remained in default as of September 30, 2020. Generally, all loans modified in a TDR are placed or remain on non-accrual status at the time of the restructuring. However, certain accruing loans modified in a TDR that are current at the time of restructuring may remain on accrual status if payment in full under the restructured terms is expected. For purposes of this schedule, a loan is considered in default if it is 30 or more days past due. |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Nine Months Ended September 30, 2020 | ​ | Nine Months Ended September 30, 2019 |
| (In Thousands, except number of loans) | SBC | ​ | SBA | ​ | Total | ​ | SBC | ​ | SBA | ​ | Total |
| Number of loans permanently modified | ​ | 3 | ​ | ​ | 16 | ​ | ​ | 19 | ​ | ​ | 2 | ​ | ​ | 27 | ​ | ​ | 29 |
| Pre-modification recorded balance (a) | $ | 8,456 | ​ | $ | 3,691 | ​ | $ | 12,147 | ​ | $ | 699 | ​ | $ | 3,544 | ​ | $ | 4,243 |
| Post-modification recorded balance (a) | $ | 8,456 | ​ | ​ | 3,748 | ​ | $ | 12,204 | ​ | $ | 699 | ​ | $ | 3,324 | ​ | $ | 4,023 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Number of loans that remain in default as of September 30, 2020 (b) | ​ | 2 | ​ | ​ | 5 | ​ | ​ | 7 | ​ | ​ | 2 | ​ | ​ | 7 | ​ | ​ | 9 |
| Balance of loans that remain in default as of September 30, 2020 (b) | $ | 8,422 | ​ | $ | 874 | ​ | $ | 9,296 | ​ | $ | 704 | ​ | $ | 323 | ​ | $ | 1,027 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Concession granted (a): | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Term extension | $ | — | ​ | $ | 2,371 | ​ | $ | 2,371 | ​ | $ | — | ​ | $ | 2,843 | ​ | $ | 2,843 |
| Interest rate reduction | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Principal reduction | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Foreclosure | ​ | 8,422 | ​ | ​ | 327 | ​ | ​ | 8,749 | ​ | ​ | 704 | ​ | ​ | 116 | ​ | ​ | 820 |
| Total | $ | 8,422 | ​ | $ | 2,698 | ​ | $ | 11,120 | ​ | $ | 704 | ​ | $ | 2,959 | ​ | $ | 3,663 |
| (a) Represents carrying value. |
| (b) Represents the September 30, 2020 carrying values of the TDRs that occurred during the nine months ended September 30, 2020 and 2019 that remained in default as of September 30, 2020. Generally, all loans modified in a TDR are placed or remain on non-accrual status at the time of the restructuring. However, certain accruing loans modified in a TDR that are current at the time of restructuring may remain on accrual status if payment in full under the restructured terms is expected. For purposes of this schedule, a loan is considered in default if it is 30 or more days past due. |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | ​ | Level 1 | ​ | Level 2 | ​ | Level 3 | ​ | Total |
| Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans, held for sale, at fair value | ​ | $ | — | ​ | $ | 348,719 | ​ | $ | — | ​ | $ | 348,719 |
| Loans, net, at fair value | ​ | — | ​ | — | ​ | 119,965 | ​ | 119,965 |
| Mortgage backed securities, at fair value | ​ | — | ​ | 77,777 | ​ | 12,650 | ​ | 90,427 |
| Derivative instruments, at fair value | ​ | ​ | — | ​ | — | ​ | 20,849 | ​ | 20,849 |
| Residential mortgage servicing rights, at fair value | ​ | — | ​ | — | ​ | 74,384 | ​ | 74,384 |
| Total assets | ​ | $ | — | ​ | $ | 426,496 | ​ | $ | 227,848 | ​ | $ | 654,344 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Derivative instruments, at fair value | ​ | $ | — | ​ | $ | 7,774 | ​ | $ | — | ​ | $ | 7,774 |
| Total liabilities | ​ | $ | — | ​ | $ | 7,774 | ​ | $ | — | ​ | $ | 7,774 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | ​ | Level 1 | ​ | Level 2 | ​ | Level 3 | ​ | Total |
| Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans, held for sale, at fair value | ​ | $ | — | ​ | $ | 192,510 | ​ | $ | — | ​ | $ | 192,510 |
| Loans, net, at fair value | ​ | — | ​ | — | ​ | 20,212 | ​ | 20,212 |
| Mortgage backed securities, at fair value | ​ | — | ​ | 92,006 | ​ | 460 | ​ | 92,466 |
| Derivative instruments, at fair value | ​ | — | ​ | — | ​ | 2,814 | ​ | 2,814 |
| Residential mortgage servicing rights, at fair value | ​ | — | ​ | — | ​ | 91,174 | ​ | 91,174 |
| Total assets | ​ | $ | — | ​ | $ | 284,516 | ​ | $ | 114,660 | ​ | $ | 399,176 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Derivative instruments, at fair value | ​ | $ | — | ​ | $ | 5,250 | ​ | $ | — | ​ | $ | 5,250 |
| Total liabilities | ​ | $ | — | ​ | $ | 5,250 | ​ | $ | — | ​ | $ | 5,250 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, 2020 |
| (In Thousands) | MBS | Derivatives | Loans, held at fair value | Residential MSRs, at fair value |
| Beginning Balance | ​ | $ | 411 | ​ | $ | 19,037 | ​ | $ | 124,298 | ​ | $ | 73,645 |
| Purchases or Originations | ​ | 12,640 | ​ | — | ​ | 1,198 | ​ | 11,343 |
| Sales / Principal payments | ​ | ​ | ( 11 ) | ​ | ​ | — | ​ | ​ | ( 5,911 ) | ​ | ​ | ( 5,916 ) |
| Realized gains, net | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 375 | ​ | ​ | — |
| Unrealized gains (losses), net | ​ | ​ | ( 114 ) | ​ | ​ | 1,812 | ​ | ​ | 5 | ​ | ​ | ( 4,688 ) |
| Transfer to (from) Level 3 | ​ | ​ | ( 276 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Ending Balance | ​ | $ | 12,650 | ​ | $ | 20,849 | ​ | $ | 119,965 | ​ | $ | 74,384 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Unrealized gains (losses), net on assets or liabilities held at the end of the period | ​ | $ | ( 82 ) | ​ | $ | 20,849 | ​ | $ | ( 333 ) | ​ | $ | ( 43,123 ) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, 2019 |
| (In Thousands) | MBS | Derivatives | Loans, held at fair value | Residential MSRs, at fair value | Contingent consideration |
| Beginning Balance | ​ | $ | 36,655 | ​ | $ | 3,670 | ​ | $ | 20,409 | ​ | $ | 85,658 | ​ | $ | — |
| Purchases or Originations | ​ | — | ​ | — | ​ | — | ​ | 9,028 | ​ | — |
| Additions due to loans sold, servicing retained | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Sales / Principal payments | ​ | ​ | ( 673 ) | ​ | ​ | — | ​ | ​ | ( 45 ) | ​ | ​ | ( 2,466 ) | ​ | ​ | — |
| Realized gains, net | ​ | ​ | 169 | ​ | ​ | — | ​ | ​ | 38 | ​ | ​ | — | ​ | ​ | — |
| Unrealized gains (losses), net | ​ | ​ | 87 | ​ | ​ | 511 | ​ | ​ | 32 | ​ | ​ | ( 7,582 ) | ​ | ​ | — |
| Accreted discount, net | ​ | ​ | 49 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Transfer to (from) Level 3 | ​ | ​ | ( 5,994 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Ending Balance | ​ | $ | 30,293 | ​ | $ | 4,181 | ​ | $ | 20,434 | ​ | $ | 84,638 | ​ | $ | — |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Unrealized gains (losses), net on assets or liabilities held at the end of the period | ​ | $ | 2,946 | ​ | $ | 4,181 | ​ | $ | 363 | ​ | $ | ( 10,287 ) | ​ | $ | — |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Nine Months Ended September 30, 2020 |
| (In Thousands) | MBS | Derivatives | Loans, held at fair value | Residential MSRs, at fair value |
| Beginning Balance | ​ | $ | 460 | ​ | $ | 2,814 | ​ | $ | 20,212 | ​ | $ | 91,174 |
| Purchases or Originations | ​ | 12,640 | ​ | — | ​ | 106,728 | ​ | — |
| Additions due to loans sold, servicing retained | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 31,821 |
| Sales / Principal payments | ​ | ​ | ( 13 ) | ​ | ​ | — | ​ | ​ | ( 6,207 ) | ​ | ​ | ( 15,443 ) |
| Realized gains, net | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 375 | ​ | ​ | ​ |
| Unrealized gains (losses), net | ​ | ​ | ( 154 ) | ​ | ​ | 18,035 | ​ | ​ | ( 1,143 ) | ​ | ​ | ( 33,168 ) |
| Transfer to (from) Level 3 | ​ | ​ | ( 283 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Ending Balance | ​ | $ | 12,650 | ​ | $ | 20,849 | ​ | $ | 119,965 | ​ | $ | 74,384 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Unrealized gains (losses), net on assets or liabilities held at the end of the period | ​ | $ | ( 82 ) | ​ | $ | 20,849 | ​ | $ | ( 333 ) | ​ | $ | ( 43,123 ) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Nine Months Ended September 30, 2019 |
| (In Thousands) | MBS | Derivatives | Loans, held at fair value | Residential MSRs, at fair value | Contingent consideration |
| Beginning Balance | ​ | $ | 12,148 | ​ | $ | 1,776 | ​ | $ | 22,664 | ​ | $ | 93,065 | ​ | $ | — |
| Purchases or Originations | ​ | 9,593 | ​ | — | ​ | — | ​ | 18,482 | ​ | — |
| Additions due to loans sold, servicing retained | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Sales / Principal payments | ​ | ​ | ( 1,342 ) | ​ | ​ | — | ​ | ​ | ( 2,239 ) | ​ | ​ | ( 5,861 ) | ​ | ​ | — |
| Realized gains (losses), net | ​ | ​ | 276 | ​ | ​ | — | ​ | ​ | ( 128 ) | ​ | ​ | — | ​ | ​ | — |
| Unrealized gains (losses), net | ​ | ​ | 376 | ​ | ​ | 2,405 | ​ | ​ | 137 | ​ | ​ | ( 21,048 ) | ​ | ​ | — |
| Accreted discount, net | ​ | ​ | 95 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Amortization and adjustment for earn-out payments | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Transfer to (from) Level 3 | ​ | ​ | 9,147 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Ending Balance | ​ | $ | 30,293 | ​ | $ | 4,181 | ​ | $ | 20,434 | ​ | $ | 84,638 | ​ | $ | — |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Unrealized gains (losses), net on assets or liabilities held at the end of the period | ​ | $ | 2,946 | ​ | $ | 4,181 | ​ | $ | 363 | ​ | $ | ( 10,287 ) | ​ | $ | — |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | Predominant | ​ | ​ | ​ | ​ | ​ | ​ | Weighted |
| ​ | ​ | ​ | ​ | ​ | Valuation | ​ | ​ | ​ | ​ | ​ | ​ | Average Price |
| (In Thousands, except price) | Fair Value | Technique | Type | Price Range | (a) |
| Loans, held at fair value | ​ | $ | 119,965 | ​ | Single External Source | ​ | Third Party Mark | ​ | $ | 92.01 – 106.11 | ​ | $ | 99.72 |
| Mortgage backed securities, at fair value | ​ | ​ | 12,650 | ​ | Transaction Price | Transaction Price | ​ | ​ | 14.34 – 99.00 | ​ | ​ | 48.02 |
| Residential mortgage servicing rights, at fair value | ​ | 74,384 | Single external source | Discounted cash flow | ​ | N/A | ​ | N/A |
| (a) | Prices are weighted based on the unpaid principal balance of the loans and securities included in the range for each class |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | Predominant | ​ | ​ | ​ | Weighted |
| ​ | ​ | ​ | ​ | ​ | Valuation | ​ | ​ | ​ | ​ | ​ | ​ | Average Price |
| (In Thousands, except price) | ​ | Fair Value | ​ | Technique | ​ | Type | ​ | Price Range | ​ | (a) |
| Loans, held at fair value | ​ | $ | 20,212 | Single External Source | ​ | Third Party Mark | ​ | $ | 100.47 – 110.83 | ​ | $ | 103.31 |
| Mortgage backed securities, at fair value (b) | ​ | 357 | Broker Quotes | ​ | Third Party Mark | ​ | ​ | 1.00 – 1.00 | ​ | ​ | 1.00 |
| Mortgage backed securities, at fair value | ​ | ​ | 103 | ​ | Transaction Price | Transaction Price | ​ | ​ | 99.00 – 99.00 | ​ | ​ | 99.00 |
| Residential mortgage servicing rights, at fair value | ​ | ​ | 91,174 | ​ | Single external source | Discounted cash flow | ​ | N/A | ​ | N/A |
| (a) | Prices are weighted based on the unpaid principal balance of the loans and securities included in the range for each class |
| (b) | Price ranges and weighted averages represent interest-only strips with a fair value of $ 0.4 million as of December 31, 2019 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | September 30, 2020 | ​ | December 31, 2019 |
| (In Thousands) | Carrying Value | Estimated Fair Value | Carrying Value | EstimatedFair Value |
| Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans, net | ​ | $ | 3,891,623 | ​ | $ | 3,980,896 | ​ | $ | 4,033,972 | ​ | $ | 4,147,831 |
| Purchased future receivables, net | ​ | ​ | 16,659 | ​ | ​ | 16,659 | ​ | ​ | 43,265 | ​ | ​ | 43,265 |
| Servicing rights | ​ | ​ | 35,661 | ​ | 40,189 | ​ | 30,795 | ​ | 34,723 |
| Total assets | ​ | $ | 3,943,943 | ​ | $ | 4,037,744 | ​ | $ | 4,108,032 | ​ | $ | 4,225,819 |
| Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Secured borrowings | ​ | $ | 1,176,621 | ​ | $ | 1,176,621 | ​ | $ | 1,189,392 | ​ | $ | 1,189,392 |
| Securitized debt obligations of consolidated VIEs, net | ​ | 2,059,114 | ​ | 2,092,985 | ​ | 1,815,154 | ​ | 1,859,047 |
| Senior secured note, net | ​ | ​ | 179,572 | ​ | ​ | 186,419 | ​ | ​ | 179,289 | ​ | ​ | 190,923 |
| Guaranteed loan financing | ​ | 421,183 | ​ | 449,010 | ​ | 485,461 | ​ | 515,182 |
| Convertible notes, net | ​ | ​ | 111,855 | ​ | ​ | 79,975 | ​ | ​ | 111,040 | ​ | ​ | 116,654 |
| Corporate debt, net | ​ | ​ | 150,658 | ​ | ​ | 144,345 | ​ | ​ | 149,986 | ​ | ​ | 161,098 |
| Total liabilities | ​ | $ | 4,099,003 | ​ | $ | 4,129,355 | ​ | $ | 3,930,322 | ​ | $ | 4,032,296 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Weighted | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Weighted | ​ | Average | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Gross | ​ | Gross |
| ​ | ​ | Average | ​ | Interest | ​ | Principal | ​ | Amortized | ​ | ​ | ​ | ​ | Unrealized | ​ | Unrealized |
| (In Thousands) | ​ | Maturity (a) | ​ | Rate (a) | ​ | Balance | ​ | Cost | ​ | Fair Value | ​ | Gains | ​ | Losses |
| September 30, 2020 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Mortgage backed securities, at fair value | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Freddie Mac Loans | 01/2037 | ​ | 2.0 | % | $ | 142,552 | ​ | $ | 53,569 | ​ | $ | 55,025 | ​ | $ | 2,023 | ​ | $ | ( 567 ) |
| Commercial Loans | ​ | 11/2050 | ​ | 4.5 | ​ | ​ | 73,160 | ​ | ​ | 39,284 | ​ | ​ | 35,311 | ​ | ​ | 26 | ​ | ​ | ( 3,999 ) |
| Tax Liens | 09/2026 | 6.0 | ​ | 92 | ​ | 92 | ​ | 91 | ​ | — | ​ | ( 1 ) |
| Total Mortgage backed securities, at fair value | ​ | 09/2041 | ​ | 2.8 | % | $ | 215,804 | ​ | $ | 92,945 | ​ | $ | 90,427 | ​ | $ | 2,049 | ​ | $ | ( 4,567 ) |
| December 31, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Mortgage backed securities, at fair value | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Freddie Mac Loans | 06/2037 | ​ | 4.3 | % | $ | 83,149 | ​ | $ | 61,207 | ​ | $ | 66,108 | ​ | $ | 4,915 | ​ | $ | ( 14 ) |
| Commercial Loans | ​ | 02/2051 | ​ | 5.4 | ​ | ​ | 35,984 | ​ | ​ | 25,358 | ​ | ​ | 26,255 | ​ | ​ | 924 | ​ | ​ | ( 27 ) |
| Tax Liens | 09/2026 | 6.0 | ​ | 104 | ​ | 104 | ​ | 103 | ​ | — | ​ | ( 1 ) |
| Total Mortgage backed securities, at fair value | ​ | 07/2041 | ​ | 4.6 | % | $ | 119,237 | ​ | $ | 86,669 | ​ | $ | 92,466 | ​ | $ | 5,839 | ​ | $ | ( 42 ) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (a) | Weighted based on current principal balance |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Weighted | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Average | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Interest | ​ | Principal | ​ | Amortized | ​ | ​ |
| (In Thousands) | ​ | Rate (a) | ​ | Balance | ​ | Cost | ​ | Fair Value |
| September 30, 2020 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Mortgage backed securities, at fair value | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| After five years through ten years | 6.0 | % | $ | 92 | ​ | $ | 92 | ​ | $ | 91 |
| After ten years | 2.8 | ​ | 215,712 | ​ | 92,853 | ​ | 90,336 |
| Total Mortgage backed securities, at fair value | ​ | 2.8 | % | $ | 215,804 | ​ | $ | 92,945 | ​ | $ | 90,427 |
| December 31, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Mortgage backed securities, at fair value | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| After five years through ten years | 3.8 | % | $ | 2,869 | ​ | $ | 2,641 | ​ | $ | 2,825 |
| After ten years | 4.7 | ​ | 116,368 | ​ | 84,028 | ​ | 89,641 |
| Total | ​ | 4.6 | % | $ | 119,237 | ​ | $ | 86,669 | ​ | $ | 92,466 |
| (a) | Weighted based on current principal balance. |
| (b) |
| (c) |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | 2020 | 2019 | 2020 | 2019 |
| SBA servicing rights, at amortized cost |
| Beginning net carrying amount | ​ | $ | 17,318 | ​ | $ | 18,000 | ​ | $ | 17,660 | ​ | $ | 16,749 |
| Additions due to loans sold, servicing retained | ​ | 993 | ​ | 550 | ​ | 2,328 | ​ | 2,431 |
| Acquisitions | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 894 |
| Amortization | ​ | ( 909 ) | ​ | ( 869 ) | ​ | ( 2,642 ) | ​ | ( 2,529 ) |
| Impairment | ​ | 138 | ​ | ( 149 ) | ​ | 194 | ​ | ( 13 ) |
| Ending net carrying value of SBA servicing rights | ​ | $ | 17,540 | ​ | $ | 17,532 | ​ | $ | 17,540 | ​ | $ | 17,532 |
| Freddie Mac multi-family servicing rights, at amortized cost |
| Beginning net carrying amount | ​ | $ | 16,798 | ​ | $ | 11,103 | ​ | $ | 13,135 | ​ | $ | 10,248 |
| Additions due to loans sold, servicing retained | ​ | 2,107 | ​ | 1,798 | ​ | 7,094 | ​ | 3,745 |
| Amortization | ​ | ( 784 ) | ​ | ( 591 ) | ​ | ( 2,108 ) | ​ | ( 1,683 ) |
| Ending net carrying value of Freddie Mac multi-family servicing rights | ​ | $ | 18,121 | ​ | $ | 12,310 | ​ | $ | 18,121 | ​ | $ | 12,310 |
| Ending net carrying value of SBA and Freddie Mac multi-family servicing rights, at amortized cost | ​ | $ | 35,661 | ​ | $ | 29,842 | ​ | $ | 35,661 | ​ | $ | 29,842 |
| Residential mortgage servicing rights, at fair value |
| Beginning Balance | ​ | $ | 73,645 | ​ | $ | 85,658 | ​ | $ | 91,174 | ​ | $ | 93,065 |
| Additions due to loans sold, servicing retained | ​ | 11,343 | ​ | 9,028 | ​ | 31,821 | ​ | 18,482 |
| Loan pay-offs | ​ | ​ | ( 5,916 ) | ​ | ​ | ( 2,466 ) | ​ | ​ | ( 15,443 ) | ​ | ​ | ( 5,861 ) |
| Unrealized losses | ​ | ( 4,688 ) | ​ | ( 7,582 ) | ​ | ( 33,168 ) | ​ | ( 21,048 ) |
| Ending fair value of residential mortgage servicing rights | ​ | $ | 74,384 | ​ | $ | 84,638 | ​ | $ | 74,384 | ​ | $ | 84,638 |
| Total servicing rights | ​ | $ | 110,045 | ​ | $ | 114,480 | ​ | $ | 110,045 | ​ | $ | 114,480 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | As of September 30, 2020 | ​ | As of December 31, 2019 |
| ​ | ​ | Unpaid Principal | ​ | ​ | ​ | Unpaid Principal | ​ | ​ |
| (In Thousands) | ​ | Amount | ​ | Carrying Value | ​ | Amount | ​ | Carrying Value |
| SBA | ​ | $ | 598,400 | ​ | $ | 17,540 | ​ | $ | 568,017 | ​ | $ | 17,660 |
| Freddie Mac multi-family | ​ | ​ | 1,458,517 | ​ | ​ | 18,121 | ​ | ​ | 1,167,476 | ​ | ​ | 13,135 |
| Total | ​ | $ | 2,056,917 | ​ | $ | 35,661 | ​ | $ | 1,735,493 | ​ | $ | 30,795 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | September 30, 2020 | ​ | December 31, 2019 |
| ​ | ​ | Range of inputvalues | ​ | Weighted Average | Range of inputvalues | ​ | Weighted Average |
| SBA servicing rights (at amortized cost) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | • Forward prepayment rate | ​ | 6.4 | - | 21.0 | % | ​ | 8.7 | % | ​ | 6.3 | - | 21.2 | % | ​ | 9.3 | % |
| ​ | • Forward default rate | ​ | 0.0 | - | 10.1 | % | ​ | 7.6 | % | ​ | 0.0 | - | 10.8 | % | ​ | 7.3 | % |
| ​ | • Discount rate | ​ | 7.1 | - | 7.1 | % | ​ | 7.1 | % | ​ | 8.8 | - | 8.8 | % | ​ | 8.8 | % |
| ​ | • Servicing expense | ​ | 0.4 | - | 0.4 | % | ​ | 0.4 | % | ​ | 0.4 | - | 0.4 | % | ​ | 0.4 | % |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Freddie Mac multi-family servicing rights (at amortized cost) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | • Forward prepayment rate | ​ | 0.5 | - | 15.9 | % | ​ | 6.9 | % | ​ | 0.5 | - | 15.9 | % | ​ | 6.6 | % |
| ​ | • Forward default rate | ​ | 0.0 | - | 0.5 | % | ​ | 0.3 | % | ​ | 0.0 | - | 0.5 | % | ​ | 0.4 | % |
| ​ | • Discount rate | ​ | 6.0 | - | 6.0 | % | ​ | 6.0 | % | ​ | 6.0 | - | 6.0 | % | ​ | 6.0 | % |
| ​ | • Servicing expense | ​ | 0.2 | - | 0.3 | % | ​ | 0.2 | % | ​ | 0.2 | - | 0.3 | % | ​ | 0.2 | % |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 | December 31, 2019 |
| SBA servicing rights (at amortized cost) | ​ | ​ | ​ | ​ | ​ | ​ |
| • Forward prepayment rate | ​ | ​ | ​ | ​ | ​ | ​ |
| 10% adverse change | ​ | $ | ( 585 ) | ​ | $ | ( 563 ) |
| 20% adverse change | ​ | ( 1,141 ) | ​ | ( 1,097 ) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| • Default rate | ​ | ​ | ​ | ​ | ​ |
| 10% adverse change | ​ | $ | ( 111 ) | ​ | $ | ( 94 ) |
| 20% adverse change | ​ | ​ | ( 220 ) | ​ | ​ | ( 186 ) |
| ​ | ​ | ​ | ​ | ​ | ​ |
| • Discount rate | ​ | ​ | ​ | ​ | ​ | ​ |
| 10% adverse change | ​ | $ | ( 475 ) | ​ | $ | ( 520 ) |
| 20% adverse change | ​ | ​ | ( 927 ) | ​ | ( 1,011 ) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Freddie Mac multi-family servicing rights (at amortized cost) | ​ | ​ | ​ |
| • Forward prepayment rate | ​ | ​ | ​ | ​ | ​ | ​ |
| 10% adverse change | ​ | $ | ( 398 ) | ​ | $ | ( 285 ) |
| 20% adverse change | ​ | ( 778 ) | ​ | ( 558 ) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| • Default rate | ​ | ​ | ​ | ​ | ​ |
| 10% adverse change | ​ | $ | ( 6 ) | ​ | $ | ( 5 ) |
| 20% adverse change | ​ | ​ | ( 13 ) | ​ | ​ | ( 10 ) |
| ​ | ​ | ​ | ​ | ​ | ​ |
| • Discount rate | ​ | ​ | ​ | ​ | ​ | ​ |
| 10% adverse change | ​ | $ | ( 494 ) | ​ | $ | ( 381 ) |
| 20% adverse change | ​ | ( 968 ) | ​ | ​ | ( 746 ) |
| ​ | ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 |
| 2020 | ​ | $ | 1,718 |
| 2021 | ​ | 6,320 |
| 2022 | ​ | 5,511 |
| 2023 | ​ | 4,787 |
| 2024 | ​ | 4,131 |
| Thereafter | ​ | 13,194 |
| Total | ​ | $ | 35,661 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | As of September 30, 2020 | ​ | As of December 31, 2019 |
| ​ | ​ | Unpaid Principal | ​ | ​ | ​ | Unpaid Principal | ​ | ​ |
| (In Thousands) | ​ | Amount | ​ | Fair Value | ​ | Amount | ​ | Fair Value |
| Fannie Mae | ​ | $ | 3,625,230 | ​ | $ | 28,011 | ​ | $ | 3,388,630 | ​ | $ | 37,309 |
| Ginnie Mae | ​ | ​ | 2,687,994 | ​ | ​ | 25,244 | ​ | ​ | 2,504,993 | ​ | ​ | 29,869 |
| Freddie Mac | ​ | ​ | 2,760,615 | ​ | ​ | 21,129 | ​ | ​ | 2,270,981 | ​ | ​ | 23,996 |
| Total | ​ | $ | 9,073,839 | ​ | $ | 74,384 | ​ | $ | 8,164,604 | ​ | $ | 91,174 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | September 30, 2020 | ​ | December 31, 2019 |
| ​ | ​ | Range of inputvalues | ​ | Weighted Average | Range of inputvalues | ​ | Weighted Average |
| Residential mortgage servicing rights (at fair value) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | • Forward prepayment rate | ​ | 12.5 | - | 23.5 | % | ​ | 13.9 | % | ​ | 7.1 | - | 18.7 | % | ​ | 10.1 | % |
| ​ | • Discount rate | ​ | 9.1 | - | 12.0 | % | ​ | 10.0 | % | ​ | 9.0 | - | 11.0 | % | ​ | 9.6 | % |
| ​ | • Servicing expense | ​ | $ 70 | - | $ 85 | ​ | ​ | $ 74 | ​ | ​ | $ 70 | - | $ 85 | ​ | ​ | $ 75 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 | ​ | December 31, 2019 |
| Prepayment rate | ​ | ​ | ​ | ​ | ​ | ​ |
| 10% adverse change | ​ | $ | ( 4,728 ) | ​ | $ | ( 4,195 ) |
| 20% adverse change | ​ | ( 9,077 ) | ​ | ( 8,091 ) |
| Discount rate | ​ | ​ | ​ | ​ | ​ | ​ |
| 10% adverse change | ​ | $ | ( 2,523 ) | ​ | $ | ( 3,450 ) |
| 20% adverse change | ​ | ( 4,876 ) | ​ | ( 6,654 ) |
| Cost of servicing | ​ | ​ | ​ | ​ | ​ | ​ |
| 10% adverse change | ​ | $ | ( 1,436 ) | ​ | $ | ( 1,648 ) |
| 20% adverse change | ​ | ( 2,873 ) | ​ | ( 3,297 ) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, | ​ |
| (In Thousands) | 2020 | 2019 | 2020 | 2019 | ​ |
| Realized and unrealized gain (loss) of residential mortgage loans held for sale, at fair value | ​ | $ | 61,131 | ​ | $ | 17,229 | ​ | $ | 143,747 | ​ | $ | 41,314 | ​ |
| Creation of new mortgage servicing rights, net of payoffs | ​ | ​ | 5,427 | ​ | ​ | 6,562 | ​ | ​ | 16,378 | ​ | ​ | 12,621 | ​ |
| Loan origination fee income on residential mortgage loans | ​ | ​ | 6,021 | ​ | ​ | 3,320 | ​ | ​ | 15,529 | ​ | ​ | 7,688 | ​ |
| Unrealized gain (loss) on IRLCs and other derivatives | ​ | 2,945 | ​ | ​ | 1,902 | ​ | 17,103 | ​ | ​ | 2,998 | ​ |
| Residential mortgage banking activities | ​ | $ | 75,524 | ​ | $ | 29,013 | ​ | $ | 192,757 | ​ | $ | 64,621 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Variable expenses on residential mortgage banking activities | ​ | $ | ( 30,918 ) | ​ | $ | ( 17,318 ) | ​ | $ | ( 87,494 ) | ​ | $ | ( 39,995 ) | ​ |
| ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Carrying Value at |
| Lender | Asset Class | Current Maturity | Pricing | Facility Size | Pledged Assets Carrying Value | September 30, 2020 | December 31, 2019 |
| JPMorgan | Acquired loans, SBA loans | June 2021 | ​ | 1M L + 1.75 to 2.75 % | ​ | $ | 250,000 | ​ | $ | 44,840 | ​ | $ | 30,742 | ​ | $ | 88,972 |
| Keybank | Freddie Mac loans | February 2021 | ​ | 1M L + 1.30 % | ​ | ​ | 100,000 | ​ | ​ | 20,486 | ​ | ​ | 20,242 | ​ | ​ | 21,513 |
| East West Bank | SBA loans | October 2022 | ​ | Prime - 0.821 to + 0.29 % | ​ | ​ | 50,000 | ​ | ​ | 40,550 | ​ | ​ | 33,184 | ​ | ​ | 13,294 |
| Credit Suisse | Acquired loans (non USD) | December 2021 | ​ | Euribor + 2.50 % | ​ | ​ | 234,420 | (a) | ​ | 53,021 | ​ | ​ | 32,267 | ​ | ​ | 37,646 |
| FCB | Acquired loans | June 2021 | ​ | 2.75 % | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,354 |
| Comerica Bank | Residential loans | March 2021 | ​ | 1M L + 1.75 % | ​ | ​ | 125,000 | ​ | ​ | 90,515 | ​ | ​ | 83,704 | ​ | ​ | 56,822 |
| TBK Bank | Residential loans | October 2021 | ​ | Variable Pricing | ​ | ​ | 150,000 | ​ | ​ | 123,980 | ​ | ​ | 118,581 | ​ | ​ | 52,151 |
| Origin Bank | Residential loans | June 2021 | ​ | Variable Pricing | ​ | ​ | 60,000 | ​ | ​ | 25,093 | ​ | ​ | 23,471 | ​ | ​ | 15,343 |
| Associated Bank | Residential loans | November 2020 | ​ | 1M L + 1.50 % | ​ | ​ | 60,000 | ​ | ​ | 47,918 | ​ | ​ | 44,489 | ​ | ​ | 5,823 |
| East West Bank | Residential MSRs | September 2023 | ​ | 1M L + 2.50 % | ​ | ​ | 50,000 | ​ | ​ | 49,140 | ​ | ​ | 37,700 | ​ | ​ | 39,900 |
| Credit Suisse | Purchased future receivables, PPP loans | June 2021 | ​ | 1M L + 4.50 % | ​ | ​ | 150,000 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 34,900 |
| Rabobank | Real estate | January 2021 | ​ | 4.22 % | ​ | ​ | 14,500 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 12,485 |
| Federal Reserve Bank of Minneapolis | PPP loans | April 2022 | ​ | 0.35 % | ​ | ​ | 105,222 | ​ | ​ | 105,089 | ​ | ​ | 105,005 | ​ | ​ | — |
| Bank of the Sierra | Real estate | August 2050 | ​ | 3.25 % | ​ | ​ | 22,750 | ​ | ​ | 37,562 | ​ | ​ | 22,687 | ​ | ​ | — |
| Total borrowings under credit facilities (b) | ​ | ​ | ​ | $ | 1,371,892 | ​ | $ | 638,194 | ​ | $ | 552,072 | ​ | $ | 380,203 |
| Citibank | Fixed rate, Transitional, Acquired loans | October 2021 | ​ | 1M L + 1.875 to 2.125 % | ​ | $ | 500,000 | ​ | $ | 114,196 | ​ | $ | 103,307 | ​ | $ | 124,718 |
| Deutsche Bank | Fixed rate, Transitional loans | November 2021 | ​ | 3M L + 2.00 to 2.40 % | ​ | ​ | 350,000 | ​ | ​ | 232,524 | ​ | ​ | 161,100 | ​ | ​ | 141,356 |
| JPMorgan | Transitional loans | December 2020 | ​ | 1M L + 2.25 to 4.00 % | ​ | ​ | 400,000 | ​ | ​ | 265,599 | ​ | ​ | 175,764 | ​ | ​ | 250,466 |
| JPMorgan | MBS | March 2021 | ​ | 1.54 to 4.75 % | ​ | ​ | 70,875 | ​ | ​ | 115,128 | ​ | ​ | 70,875 | ​ | ​ | 93,715 |
| Deutsche Bank | MBS | January 2021 | ​ | 3.54 % | ​ | ​ | 16,354 | ​ | ​ | 20,189 | ​ | ​ | 16,354 | ​ | ​ | 44,730 |
| Citibank | MBS | November 2020 | ​ | 3.25 to 3.76 % | ​ | ​ | 58,422 | ​ | ​ | 114,749 | ​ | ​ | 58,422 | ​ | ​ | 56,189 |
| Bank of America | MBS | Matured | ​ | 1.31 to 1.61 % | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 38,954 |
| RBC | MBS | February 2021 | ​ | 3.05 to 4.43 % | ​ | ​ | 38,727 | ​ | ​ | 61,595 | ​ | ​ | 38,727 | ​ | ​ | 59,061 |
| Total borrowings under repurchase agreements (c) | ​ | $ | 1,434,378 | ​ | $ | 923,980 | ​ | $ | 624,549 | ​ | $ | 809,189 |
| Total secured borrowings | ​ | $ | 2,806,270 | ​ | $ | 1,562,174 | ​ | $ | 1,176,621 | ​ | $ | 1,189,392 |
| ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Pledged Assets Carrying Value at |
| (In Thousands) | ​ | September 30, 2020 | December 31, 2019 |
| Collateral pledged - borrowings under credit facilities | ​ | ​ | ​ | ​ | ​ |
| Loans, held for sale, at fair value | ​ | $ | 309,488 | $ | 159,928 |
| Loans, net | ​ | ​ | 136,722 | ​ | 276,810 |
| Loans, held at fair value | ​ | ​ | 105,089 | ​ | — |
| Mortgage servicing rights | ​ | ​ | 49,140 | ​ | 61,304 |
| Purchased future receivables | ​ | ​ | — | ​ | 43,265 |
| Real estate, held for sale | ​ | ​ | 37,755 | ​ | 19,950 |
| Total collateral pledged on borrowings under credit facilities | ​ | $ | 638,194 | $ | 561,257 |
| Collateral pledged - borrowings under repurchase agreements | ​ | ​ | ​ | ​ | ​ |
| Loans, net | ​ | $ | 612,319 | $ | 721,887 |
| Mortgage backed securities | ​ | 73,888 | ​ | 113,436 |
| Retained interest in assets of consolidated VIEs | ​ | ​ | 237,773 | ​ | 271,880 |
| Total collateral pledged on borrowings under repurchase agreements | ​ | $ | 923,980 | $ | 1,107,203 |
| Total collateral pledged on secured borrowings | ​ | $ | 1,562,174 | $ | 1,668,460 |

Note 12 – Senior secured notes, convertible notes, and corporate debt, net​Senior secured notes, net​During 2017, ReadyCap Holdings LLC, a subsidiary of the Company, issued $ 140.0 million in 7.50 % Senior Secured Notes due 2022. On January 30, 2018 ReadyCap Holdings LLC, issued an additional $ 40.0 million in aggregate principal amount of 7.50 % Senior Secured Notes due 2022, which have identical terms (other than issue date and issue price) to the notes issued during 2017 (collectively “the Senior Secured Notes”). The additional $ 40.0 million in Senior Secured Notes were priced with a yield to par call date of 6.5 %. Payments of the amounts due on the Senior Secured Notes are fully and unconditionally guaranteed by the Company and its subsidiaries: Sutherland Partners LP, Sutherland Asset I, LLC, and ReadyCap Commercial, LLC. The funds were used to fund new SBC and SBA loan originations and new SBC loan acquisitions. ​As of September 30, 2020, we were in compliance with all covenants with respect to the Senior Secured Notes.​Convertible notes, net​On August 9, 2017, the Company closed an underwritten public sale of $ 115.0 million aggregate principal amount of its 7.00 % convertible senior notes due 2023 (“Convertible Notes”). The Convertible Notes will mature on August 15, 2023, unless earlier repurchased, redeemed or converted. During certain periods and subject to certain conditions, the Convertible Notes will be convertible by holders into shares of the Company's common stock at an initial conversion rate of 1.4997 shares of common stock per $ 25 principal amount of the Convertible Notes, which is equivalent to an initial conversion price of approximately $ 16.67 per share of common stock. Upon conversion, holders will receive, at the Company's discretion, cash, shares of the Company's common stock or a combination thereof.​The Company may redeem all or any portion of the Convertible Notes, at its option, on or after August 15, 2021, at a redemption price payable in cash equal to 100 % of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest. Additionally, upon the occurrence of certain corporate transactions, holders may require the Company to purchase the Convertible Notes for cash at a purchase price equal to 100% of the principal amount of the Convertible Notes to be purchased, plus accrued and unpaid interest. ​The Convertible Notes will be convertible only upon satisfaction of one or more of the following conditions: (1) the closing market price of the Company’s common stock is greater than or equal to 120 % of the conversion price of the respective Convertible Notes for at least 20 out of 30 days prior to the end of the preceding fiscal quarter, (2) the trading price of the Convertible Notes is less than 98 % of the product of (i) the conversion rate and (ii) the closing price of the Company’s common stock during any five consecutive trading day period, (3) the Company issues certain equity instruments at less than the 10-day average closing market price of its common stock or the per-share value of certain distributions exceeds the market price of the Company’s common stock by more than 10 %, or (4) certain other specified corporate events (significant consolidation, sale, merger share exchange, etc.) occur. ​At issuance, we allocated $ 112.7 million and $ 2.3 million of the carrying value of the Convertible Notes to its debt and equity components, respectively, before the allocation of deferred financing costs. As of September 30, 2020, we were in compliance with all covenants with respect to the Convertible Notes.​Corporate debt, net​On April 27, 2018, the Company completed the public offer and sale of $ 50,000,000 aggregate principal amount of its 6.50 % Senior Notes due 2021 (the “2021 Notes”). The Company issued the 2021 Notes under a base indenture, dated August 9, 2017, as supplemented by the second supplemental indenture, dated as of April 27, 2018, between the Company and U.S. Bank National Association, as trustee. The 2021 Notes bear interest at a rate of 6.50% per annum, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, beginning on July 30, 2018. The 2021 Notes will mature on April 30, 2021, unless earlier redeemed or repurchased.​The Company may redeem for cash all or any portion of the 2021 Notes, at its option, on or after April 30, 2019 and before April 30, 2020 at a redemption price equal to 101 % of the principal amount of the 2021 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. On or after April 30, 2020, the Company may redeem for cash all or any portion of the 2021 Notes, at its option, at a redemption price equal to 100 % of the principal amount of 41
the 2021 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes a change of control repurchase event, holders may require it to purchase the 2021 Notes, in whole or in part, for cash at a repurchase price equal to 101 % of the aggregate principal amount of the 2021 Notes to be purchased, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase, as described in greater detail in the Indenture.​The 2021 Notes are the Company’s senior direct unsecured obligations and will not be guaranteed by any of its subsidiaries, except to the extent described in the Indenture upon the occurrence of certain events. The 2021 Notes rank equal in right of payment to any of the Company’s existing and future unsecured and unsubordinated indebtedness; effectively junior in right of payment to any of its existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness, other liabilities (including trade payables) and (to the extent not held by the Company) preferred stock, if any, of its subsidiaries.​On July 22, 2019, the Company completed the public offer and sale of $ 57.5 million aggregate principal amount of its 6.20 % Senior Notes due 2026 (the “2026 Notes” and together with the 2021 Notes, the “Corporate Debt”), which includes $ 7.5 million aggregate principal amount of the 2026 Notes relating to the full exercise of the underwriters’ over-allotment option. The net proceeds from the sale of the 2026 Notes are approximately $ 55.3 million, after deducting underwriters’ discount and estimated offering expenses. The Company will contribute the net proceeds to Sutherland Partners, L.P. (the “Operating Partnership”), its operating partnership subsidiary, in exchange for the issuance by the Operating Partnership of a senior unsecured note with terms that are substantially equivalent to the terms of the 2026 Notes. The Operating Partnership intends to use the net proceeds to originate or acquire the Company’s target assets and for general business purposes.​The 2026 Notes bear interest at a rate of 6.20% per annum, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, beginning on October 30, 2019. The 2026 Notes will mature on July 30, 2026, unless earlier repurchased or redeemed. The Company may redeem for cash all or any portion of the 2026 Notes, at its option, on or after July 30, 2022 and before July 30, 2025 at a redemption price equal to 101 % of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. On or after July 30, 2025, the Company may redeem for cash all or any portion of the 2026 Notes, at its option, at a redemption price equal to 100 % of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes a change of control repurchase event, holders may require it to purchase the 2026 Notes, in whole or in part, for cash at a repurchase price equal to 101 % of the aggregate principal amount of the 2026 Notes to be purchased, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase, as described in greater detail in the Indenture.​The 2026 Notes are the Company’s senior unsecured obligations and will not be guaranteed by any of its subsidiaries, except to the extent described in the Indenture upon the occurrence of certain events. The 2026 Notes rank equal in right of payment to any of the Company’s existing and future unsecured and unsubordinated indebtedness; effectively junior in right of payment to any of its existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness, other liabilities (including trade payables) and (to the extent not held by the Company) preferred stock, if any, of its subsidiaries.​In December 2019, the Company completed the public offer and sale of $ 45.0 million aggregate principal amount of the 2026 Notes. The new notes have the same terms (expect with respect to issue date, issue price and the date from which interest will accrue) as, are fully fungible with and are treated as a single series of debt securities as, the 6.20% Senior Notes due 2026 the Company issued on July 22, 2019. ​As of September 30, 2020, we were in compliance with all covenants with respect to the corporate debt.​ 42
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (in thousands, except rates) | Coupon Rate | ​ | Maturity Date | September 30, 2020 |
| Senior secured notes - principal amount(1) | ​ | 7.50 | % | ​ | 2/15/2022 | ​ | $ | 180,000 |
| Unamortized premium - Senior secured notes | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 1,093 |
| Unamortized deferred financing costs - Senior secured notes | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ( 1,521 ) |
| Total Senior secured notes, net | ​ | ​ | ​ | ​ | ​ | ​ | $ | 179,572 |
| Convertible notes - principal amount (2) | ​ | 7.00 | % | 8/15/2023 | ​ | $ | 115,000 |
| Unamortized discount - Convertible notes (3) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ( 1,157 ) |
| Unamortized deferred financing costs - Convertible notes | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ( 1,988 ) |
| Total Convertible notes, net | ​ | ​ | ​ | ​ | ​ | ​ | $ | 111,855 |
| Corporate debt - principal amount(4) | ​ | 6.50 | % | ​ | 4/30/2021 | ​ | $ | 50,000 |
| Corporate debt - principal amount(5) | ​ | 6.20 | % | ​ | 7/30/2026 | ​ | ​ | 104,250 |
| Unamortized premium - Corporate debt | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 392 |
| Unamortized deferred financing costs - Corporate debt | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ( 3,984 ) |
| Total Corporate debt, net | ​ | ​ | ​ | ​ | ​ | ​ | $ | 150,658 |
| Total carrying amount of debt components | ​ | ​ | ​ | ​ | ​ | ​ | $ | 442,085 |
| Total carrying amount of conversion option of equity components recorded in equity | ​ | ​ | ​ | ​ | ​ | ​ | $ | 1,157 |
| (1) | Interest on the Senior Secured Notes is payable semiannually on each February 15 and August 15, beginning on August 15, 2017. |
| (2) | Interest on the Convertible Notes is payable quarterly on February 15, May 15, August 15, and November 15 of each year, beginning on November 15, 2017. |
| (3) | Represents the discount created by separating the conversion option from the debt host instrument. |
| (4) | Interest on the corporate debt is payable January 30, April 30, July 30, and October 30 of each year, beginning on July 30, 2018. |
| (5) | Interest on the corporate debt is payable January 30, April 30, July 30, and October 30 of each year, beginning on October 30, 2019. |
| ​ | ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 |
| 2020 | $ | — |
| 2021 | ​ | 50,000 |
| 2022 | ​ | 180,000 |
| 2023 | ​ | 115,000 |
| 2024 | ​ | ​ | — |
| Thereafter | ​ | 104,250 |
| Total contractual amounts | ​ | ​ | 449,250 |
| Unamortized deferred financing costs, discounts, and premiums, net | ​ | ​ | ( 7,165 ) |
| Total carrying amount of debt components | ​ | $ | 442,085 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Weighted | Range of | ​ | ​ | ​ |
| ​ | ​ | Average | ​ | Interest | ​ | Range of | ​ | ​ |
| (In Thousands) | ​ | Interest Rate | ​ | Rates | ​ | Maturities (Years) | ​ | Ending Balance |
| September 30, 2020 | ​ | 3.77 | % | 0.99 - 6.50 % | 2020 - 2044 | ​ | $ | 421,183 |
| December 31, 2019 | ​ | 5.45 | % | 1.70 - 7.50 % | 2020 - 2044 | ​ | $ | 485,461 |

| ​ | ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 |
| 2020 | ​ | $ | 54 |
| 2021 | ​ | 642 |
| 2022 | ​ | 1,678 |
| 2023 | ​ | 2,718 |
| 2024 | ​ | 3,856 |
| Thereafter | ​ | 412,235 |
| Total | ​ | $ | 421,183 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | September 30, 2020 | ​ | ​ | December 31, 2019 | ​ |
| ​ | Current | ​ | ​ | Weighted | ​ | Current | ​ | ​ | Weighted | ​ |
| ​ | ​ | Principal | ​ | Carrying | ​ | Average | ​ | ​ | Principal | ​ | Carrying | ​ | Average | ​ |
| (In Thousands) | ​ | Balance | ​ | value | ​ | Interest Rate | ​ | ​ | Balance | ​ | value | ​ | Interest Rate | ​ |
| Waterfall Victoria Mortgage Trust 2011-SBC2 | ​ | $ | 4,802 | ​ | $ | 4,802 | ​ | 5.5 | % | ​ | $ | 6,399 | ​ | $ | 6,399 | ​ | 5.5 | % |
| ReadyCap Lending Small Business Trust 2019-2 | ​ | ​ | 108,558 | ​ | ​ | 106,892 | ​ | 3.2 | ​ | ​ | ​ | 131,032 | ​ | ​ | 129,007 | ​ | 4.3 | ​ |
| Sutherland Commercial Mortgage Trust 2017-SBC6 | ​ | ​ | 31,449 | ​ | ​ | 30,901 | ​ | 3.6 | ​ | ​ | ​ | 42,309 | ​ | ​ | 41,486 | ​ | 3.4 | ​ |
| Sutherland Commercial Mortgage Trust 2018-SBC7 | ​ | ​ | 93,516 | ​ | ​ | 92,228 | ​ | 4.7 | ​ | ​ | ​ | 138,235 | ​ | ​ | 136,212 | ​ | 4.7 | ​ |
| Sutherland Commercial Mortgage Trust 2019-SBC8 | ​ | ​ | 186,854 | ​ | ​ | 184,179 | ​ | 2.9 | ​ | ​ | ​ | 219,617 | ​ | ​ | 216,981 | ​ | 2.9 | ​ |
| Sutherland Commercial Mortgage Trust 2020-SBC9 | ​ | ​ | 154,919 | ​ | ​ | 151,994 | ​ | 3.8 | ​ | ​ | ​ | — | ​ | ​ | — | ​ | — | ​ |
| ReadyCap Commercial Mortgage Trust 2014-1 | ​ | 17,974 | ​ | ​ | 17,979 | ​ | 5.8 | ​ | ​ | 18,626 | ​ | ​ | 18,632 | ​ | 5.6 | ​ |
| ReadyCap Commercial Mortgage Trust 2015-2 | ​ | 38,669 | ​ | ​ | 36,417 | ​ | 4.8 | ​ | ​ | 64,239 | ​ | ​ | 61,443 | ​ | 4.5 | ​ |
| ReadyCap Commercial Mortgage Trust 2016-3 | ​ | 26,646 | ​ | ​ | 25,497 | ​ | 4.7 | ​ | ​ | 32,269 | ​ | ​ | 30,777 | ​ | 4.7 | ​ |
| ReadyCap Commercial Mortgage Trust 2018-4 | ​ | ​ | 94,853 | ​ | ​ | 91,546 | ​ | 4.0 | ​ | ​ | ​ | 121,179 | ​ | ​ | 117,428 | ​ | 3.9 | ​ |
| ReadyCap Commercial Mortgage Trust 2019-5 | ​ | ​ | 259,647 | ​ | ​ | 250,726 | ​ | 4.1 | ​ | ​ | ​ | 309,296 | ​ | ​ | 299,273 | ​ | 4.1 | ​ |
| ReadyCap Commercial Mortgage Trust 2019-6 | ​ | ​ | 374,368 | ​ | ​ | 367,598 | ​ | 3.2 | ​ | ​ | ​ | 379,400 | ​ | ​ | 371,939 | ​ | 3.2 | ​ |
| Ready Capital Mortgage Financing 2018-FL2 | ​ | ​ | 50,491 | ​ | ​ | 50,322 | ​ | 2.5 | ​ | ​ | ​ | 115,381 | ​ | ​ | 114,057 | ​ | 3.8 | ​ |
| Ready Capital Mortgage Financing 2019-FL3 | ​ | ​ | 243,849 | ​ | ​ | 241,823 | ​ | 2.1 | ​ | ​ | ​ | 267,904 | ​ | ​ | 264,249 | ​ | 3.5 | ​ |
| Ready Capital Mortgage Financing 2020-FL4 | ​ | ​ | 324,221 | ​ | ​ | 318,400 | ​ | 3.1 | ​ | ​ | ​ | — | ​ | ​ | — | ​ | — | ​ |
| Total (1) | ​ | $ | 2,010,816 | $ | 1,971,304 | ​ | 3.3 | % | $ | 1,845,886 | $ | 1,807,883 | ​ | 3.7 | % |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 | December 31, 2019 |
| Assets: | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash and cash equivalents | $ | 14,268 | $ | 23 |
| Restricted cash | ​ | 13,427 | ​ | ​ | 8,301 |
| Loans, net | ​ | ​ | 2,618,449 | ​ | ​ | 2,326,199 |
| Loans, held for sale, at fair value | ​ | ​ | — | ​ | ​ | 4,434 |
| Real estate, held for sale | ​ | ​ | 8,422 | ​ | ​ | — |
| Due from servicers | ​ | ​ | 20,065 | ​ | ​ | 27,964 |
| Accrued interest | ​ | ​ | 16,567 | ​ | ​ | 11,565 |
| Total assets | ​ | $ | 2,691,198 | ​ | $ | 2,378,486 |
| Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ |
| Securitized debt obligations of consolidated VIEs, net | ​ | ​ | 2,059,114 | ​ | ​ | 1,815,154 |
| Total liabilities | ​ | $ | 2,059,114 | ​ | $ | 1,815,154 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Carrying Amount | Maximum Exposure to Loss (1) |
| (In Thousands) | ​ | September 30, 2020 | ​ | December 31, 2019 | ​ | September 30, 2020 | ​ | December 31, 2019 |
| Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Mortgage backed securities, at fair value (2) | $ | 67,584 | ​ | $ | 66,108 | $ | 67,584 | ​ | $ | 66,108 |
| Investment in unconsolidated joint ventures | ​ | 69,204 | ​ | ​ | 58,850 | ​ | ​ | 69,204 | ​ | ​ | 58,850 |
| Total assets in unconsolidated VIEs | ​ | $ | 136,788 | ​ | $ | 124,958 | ​ | $ | 136,788 | ​ | $ | 124,958 |
| (1)Maximum exposure to loss is limited to the greater of the fair value or carrying value of the assets as of the consolidated balance sheet date.(2)Retained interest in Freddie Mac and third party sponsored securitizations. |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | 2020 | 2019 | 2020 | 2019 |
| Interest income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Originated Transitional loans | ​ | $ | 21,366 | ​ | $ | 20,157 | ​ | $ | 65,953 | ​ | $ | 51,398 |
| Originated SBC loans | ​ | ​ | 12,784 | ​ | ​ | 10,499 | ​ | ​ | 42,712 | ​ | ​ | 34,679 |
| Acquired loans | ​ | ​ | 13,611 | ​ | ​ | 18,306 | ​ | ​ | 42,938 | ​ | ​ | 46,348 |
| Acquired SBA 7(a) loans | ​ | ​ | 4,014 | ​ | ​ | 4,609 | ​ | ​ | 14,165 | ​ | ​ | 16,078 |
| Originated SBA 7(a) loans | ​ | ​ | 4,715 | ​ | ​ | 2,626 | ​ | ​ | 15,649 | ​ | ​ | 7,390 |
| Originated SBC loans, at fair value | ​ | ​ | 639 | ​ | ​ | 331 | ​ | ​ | 1,470 | ​ | ​ | 1,052 |
| Originated Residential Agency loans | ​ | ​ | 40 | ​ | ​ | 30 | ​ | ​ | 89 | ​ | ​ | 52 |
| Total loans (1) | ​ | $ | 57,169 | ​ | $ | 56,558 | ​ | $ | 182,976 | ​ | $ | 156,997 |
| Held for sale, at fair value, loans | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Originated Residential Agency loans | ​ | $ | 2,178 | ​ | $ | 1,224 | ​ | $ | 5,376 | ​ | $ | 3,047 |
| Originated Freddie loans | ​ | ​ | 221 | ​ | ​ | 351 | ​ | ​ | 911 | ​ | ​ | 806 |
| Acquired loans | ​ | ​ | 39 | ​ | ​ | 50 | ​ | ​ | 166 | ​ | ​ | 123 |
| Total loans, held for sale, at fair value (1) | ​ | $ | 2,438 | ​ | $ | 1,625 | ​ | $ | 6,453 | ​ | $ | 3,976 |
| Mortgage backed securities, at fair value | ​ | 1,467 | ​ | 1,540 | ​ | ​ | 4,397 | ​ | 4,537 |
| Total interest income | ​ | $ | 61,074 | ​ | $ | 59,723 | ​ | $ | 193,826 | ​ | $ | 165,510 |
| Interest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Secured borrowings | ​ | $ | ( 9,949 ) | ​ | $ | ( 13,360 ) | ​ | $ | ( 36,247 ) | ​ | $ | ( 34,809 ) |
| Securitized debt obligations of consolidated VIEs | ​ | ( 21,351 ) | ​ | ( 17,978 ) | ​ | ( 58,196 ) | ​ | ( 51,516 ) |
| Guaranteed loan financing | ​ | ​ | ( 4,110 ) | ​ | ​ | ( 645 ) | ​ | ​ | ( 14,506 ) | ​ | ​ | ( 3,873 ) |
| Senior secured note | ​ | ( 3,466 ) | ​ | ( 3,478 ) | ​ | ( 10,407 ) | ​ | ( 10,444 ) |
| Convertible note | ​ | ​ | ( 2,188 ) | ​ | ​ | ( 2,188 ) | ​ | ​ | ( 6,564 ) | ​ | ​ | ( 6,564 ) |
| Corporate debt | ​ | ​ | ( 2,759 ) | ​ | ​ | ( 1,741 ) | ​ | ​ | ( 8,242 ) | ​ | ​ | ( 3,713 ) |
| Total interest expense | ​ | $ | ( 43,823 ) | ​ | $ | ( 39,390 ) | ​ | $ | ( 134,162 ) | ​ | $ | ( 110,919 ) |
| Net interest income before provision for loan losses | ​ | $ | 17,251 | ​ | $ | 20,333 | ​ | $ | 59,664 | ​ | $ | 54,591 |
| (1) Includes interest income on loans in consolidated VIEs. |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | As of September 30, 2020 | ​ | As of December 31, 2019 |
| ​ | ​ | ​ | ​ | Asset | Liability | ​ | ​ | Asset | Liability |
| ​ | ​ | ​ | ​ | Notional | ​ | Derivatives | ​ | Derivatives | ​ | Notional | ​ | Derivatives | ​ | Derivatives |
| (In Thousands) | ​ | Primary Underlying Risk | ​ | Amount | ​ | Fair Value | ​ | Fair Value | ​ | Amount | ​ | Fair Value | ​ | Fair Value |
| Interest rate lock commitments | ​ | Interest rate risk | ​ | $ | 735,936 | ​ | ​ | 20,849 | ​ | $ | — | ​ | $ | 238,283 | ​ | $ | 2,814 | ​ | $ | — |
| Interest Rate Swaps - not designated as hedges | Interest rate risk | ​ | ​ | 760,391 | ​ | ​ | — | ​ | ​ | ( 1,713 ) | ​ | ​ | 291,001 | ​ | ​ | — | ​ | ​ | ( 3,181 ) |
| Interest Rate Swaps - designated as hedges | ​ | Interest rate risk | ​ | ​ | 121,325 | ​ | ​ | — | ​ | ​ | ( 5,564 ) | ​ | ​ | 158,325 | ​ | ​ | — | ​ | ​ | ( 1,709 ) |
| Credit Default Swaps | Credit risk | ​ | ​ | 15,000 | ​ | ​ | — | ​ | ​ | ( 51 ) | ​ | ​ | 15,000 | ​ | ​ | — | ​ | ​ | ( 110 ) |
| FX forwards | ​ | Foreign exchange rate risk | ​ | ​ | 22,856 | ​ | ​ | — | ​ | ​ | ( 446 ) | ​ | ​ | 15,000 | ​ | ​ | — | ​ | ​ | ( 250 ) |
| Total | ​ | ​ | ​ | $ | 1,655,508 | ​ | $ | 20,849 | ​ | $ | ( 7,774 ) | ​ | $ | 717,609 | ​ | $ | 2,814 | ​ | $ | ( 5,250 ) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, 2020 | ​ | Nine Months Ended September 30, 2020 |
| ​ | ​ | Net Realized | ​ | Unrealized | ​ | Net Realized | ​ | Unrealized |
| (In Thousands) | ​ | Gain (Loss) | ​ | Gain (Loss) | ​ | Gain (Loss) | ​ | Gain (Loss) |
| Credit default swaps (1) | ​ | $ | — | ​ | $ | ( 2 ) | ​ | $ | — | ​ | $ | 59 |
| Interest rate swaps (1)(2) | ​ | ( 1,189 ) | ​ | 1,310 | ​ | ( 2,185 ) | ​ | ( 9,194 ) |
| Residential mortgage banking activities interest rate swaps (3) | ​ | — | ​ | 957 | ​ | — | ​ | ( 1,148 ) |
| Interest rate lock commitments (3) | ​ | ​ | — | ​ | ​ | 1,988 | ​ | ​ | — | ​ | ​ | 18,251 |
| FX forwards (1) | ​ | ​ | ( 593 ) | ​ | ​ | ( 98 ) | ​ | ​ | ( 302 ) | ​ | ​ | ( 196 ) |
| Total | ​ | $ | ( 1,782 ) | ​ | $ | 4,155 | ​ | $ | ( 2,487 ) | ​ | $ | 7,772 |
| (1) Gains (losses) are recorded in net unrealized gain (loss) on financial instruments or net realized gain (loss) on financial instruments in the consolidated statements of income.(2) For qualifying hedges of interest rate risk, the effective portion relating to the unrealized gain (loss) on derivatives are recorded in accumulated other comprehensive income (loss).(3) Gains (losses) are recorded in residential mortgage banking activities in the consolidated statements of income. |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, 2019 | ​ | Nine Months Ended September 30, 2019 |
| ​ | ​ | ​ | Net Change in | ​ | ​ | ​ |
| ​ | ​ | Net Realized | ​ | Unrealized | ​ | Net Realized | ​ | Unrealized |
| (In Thousands) | ​ | Gain (Loss) | ​ | Gain (Loss) | ​ | Gain (Loss) | ​ | Gain (Loss) |
| Credit default swaps (1) | ​ | $ | — | ​ | $ | 2 | ​ | $ | — | ​ | $ | ( 352 ) |
| Interest rate swaps (1)(2) | ​ | 132 | ​ | ( 4,268 ) | ​ | ( 4,068 ) | ​ | ( 8,817 ) |
| Residential mortgage banking activities interest rate swaps (3) | ​ | — | ​ | 1,392 | ​ | — | ​ | 593 |
| Interest rate lock commitments (3) | ​ | ​ | — | ​ | ​ | 510 | ​ | ​ | — | ​ | ​ | 2,405 |
| Total | ​ | $ | 132 | ​ | $ | ( 2,364 ) | ​ | $ | ( 4,068 ) | ​ | $ | ( 6,171 ) |
| (1) Gains (losses) are recorded in net unrealized gain (loss) on financial instruments or net realized gain (loss) on financial instruments in the consolidated statements of income.(2) For qualifying hedges of interest rate risk, the effective portion relating to the unrealized gain (loss) on derivatives are recorded in accumulated other comprehensive income (loss).(3) Gains (losses) are recorded in residential mortgage banking activities in the consolidated statements of income. |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | Derivatives - effective portion reclassified from AOCI to income | ​ | Hedge ineffectiveness recorded directly in income (2) | Total income statement impact | ​ | Derivatives- effective portion recorded in OCI (3) | ​ | Total change in OCI for period (3) |
| Hedge type | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Interest rate - forecasted transactions (1) | $ | ( 371 ) | ​ | $ | — | ​ | $ | ( 371 ) | ​ | $ | 300 | ​ | $ | 671 |
| Total - Three Months Ended September 30, 2020 | $ | ( 371 ) | ​ | $ | — | $ | ( 371 ) | ​ | $ | 300 | ​ | $ | 671 |
| Hedge type | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Interest rate - forecasted transactions (1) | $ | ( 169 ) | ​ | $ | — | $ | ( 169 ) | ​ | $ | ( 2,783 ) | ​ | $ | ( 2,614 ) |
| Total - Three Months Ended September 30, 2019 | $ | ( 169 ) | ​ | $ | — | $ | ( 169 ) | ​ | $ | ( 2,783 ) | ​ | $ | ( 2,614 ) |
| Hedge type | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Interest rate - forecasted transactions (1) | $ | ( 1,104 ) | ​ | $ | ( 1,694 ) | ​ | $ | ( 2,798 ) | ​ | $ | ( 5,276 ) | ​ | $ | ( 2,478 ) |
| Total - Nine Months Ended September 30, 2020 | $ | ( 1,104 ) | ​ | $ | ( 1,694 ) | $ | ( 2,798 ) | ​ | $ | ( 5,276 ) | ​ | $ | ( 2,478 ) |
| Hedge type | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Interest rate - forecasted transactions (1) | $ | ( 269 ) | ​ | $ | — | $ | ( 269 ) | ​ | $ | ( 9,880 ) | ​ | $ | ( 9,611 ) |
| Total - Nine Months Ended September 30, 2019 | $ | ( 269 ) | ​ | $ | — | $ | ( 269 ) | ​ | $ | ( 9,880 ) | ​ | $ | ( 9,611 ) |
| (1) Consists of benchmark interest rate hedges of LIBOR-indexed floating-rate liabilities. |
| (2) Hedge ineffectiveness is the amount by which the cumulative gain or loss on the designated derivative instrument exceeds the present value of the cumulative expected change in cash flows on the hedged item attributable to the hedged risk. |
| (3) Represents after tax amounts recorded in OCI. |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 | December 31, 2019 |
| Acquired ORM Portfolio: | ​ | ​ | ​ | ​ | ​ | ​ |
| Retail | ​ | $ | 18,953 | ​ | $ | 19,950 |
| Mixed Use | ​ | 14,440 | ​ | 17,478 |
| Land | ​ | ​ | 7,257 | ​ | ​ | 7,919 |
| Lodging/Residential | ​ | ​ | 3,229 | ​ | ​ | 6,280 |
| Office | ​ | ​ | — | ​ | ​ | 1,256 |
| Total Acquired ORM REO | ​ | $ | 43,879 | ​ | $ | 52,883 |
| Other REO held for sale: | ​ | ​ | ​ | ​ | ​ | ​ |
| Retail | ​ | $ | 660 | ​ | 660 |
| SBA | ​ | 524 | ​ | 286 |
| Office | ​ | ​ | — | ​ | ​ | 4,465 |
| Multi-family | ​ | ​ | — | ​ | ​ | — |
| Mixed Use | ​ | ​ | — | ​ | ​ | 279 |
| Total Other REO(1) | ​ | $ | 1,184 | ​ | $ | 5,690 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Total Real estate, held for sale | ​ | $ | 45,063 | ​ | $ | 58,573 |
| (1) Excludes $ 8.4 million of real estate, held for sale within consolidated VIEs. | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | For the Three Months Ended September 30, | ​ | For the Nine Months Ended September 30, |
| ​ | ​ | 2020 | ​ | 2019 | ​ | 2020 | ​ | 2019 |
| Management fee - total | ​ | $ | 2.7 million | ​ | $ | 2.5 million | ​ | $ | 7.9 million | ​ | $ | 7.0 million |
| Management fee - amount unpaid | ​ | $ | 2.7 million | ​ | $ | 2.5 million | ​ | $ | 2.7 million | ​ | $ | 2.5 million |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | For the Three Months Ended September 30, | ​ | For the Nine Months Ended September 30, |
| ​ | ​ | 2020 | ​ | 2019 | ​ | 2020 | ​ | 2019 |
| Incentive fee distribution - total | ​ | $ | 1.1 million | ​ | $ | — | ​ | $ | 4.6 million | ​ | $ | — |
| Incentive fee distribution - amount unpaid | ​ | $ | 1.1 million | ​ | $ | — | ​ | $ | 1.1 million | ​ | $ | — |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | For the Three Months Ended September 30, | ​ | For the Nine Months Ended September 30, |
| ​ | ​ | 2020 | ​ | 2019 | ​ | 2020 | ​ | 2019 |
| Reimbursable expenses payable to our Manager - total | ​ | $ | 0.8 million | ​ | $ | 0.9 million | ​ | $ | 2.8 million | ​ | $ | 2.8 million |
| Reimbursable expenses payable to our Manager - amount unpaid | ​ | $ | 1.0 million | ​ | $ | 1.0 million | ​ | $ | 1.0 million | ​ | $ | 1.0 million |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 | December 31, 2019 |
| Other assets: | ​ | ​ | ​ | ​ | ​ | ​ |
| Deferred tax asset | $ | 31,803 | $ | 31,803 |
| Tax receivable | ​ | ​ | — | ​ | ​ | 4,019 |
| Deferred loan exit fees | ​ | ​ | 12,933 | ​ | ​ | 13,039 |
| Accrued interest | ​ | ​ | 10,266 | ​ | ​ | 10,583 |
| Goodwill | ​ | ​ | 11,206 | ​ | ​ | 11,206 |
| Due from servicers | ​ | ​ | 10,451 | ​ | ​ | 10,127 |
| Right-of-use lease asset | ​ | ​ | 3,608 | ​ | ​ | 4,531 |
| Intangible assets | ​ | 7,317 | ​ | 8,309 |
| Deferred financing costs | ​ | ​ | 1,770 | ​ | ​ | 2,046 |
| Other assets | ​ | ​ | 9,260 | ​ | ​ | 11,262 |
| Other assets | $ | 98,614 | ​ | $ | 106,925 |
| Accounts payable and other accrued liabilities: | ​ | ​ | ​ | ​ | ​ | ​ |
| Deferred tax liability | ​ | $ | 18,757 | ​ | $ | 18,757 |
| Accrued salaries, wages and commissions | ​ | ​ | 34,734 | ​ | ​ | 21,146 |
| Accrued interest payable | ​ | 14,369 | ​ | 17,305 |
| Servicing principal and interest payable | ​ | ​ | 10,543 | ​ | ​ | 14,145 |
| Repair and denial reserve | ​ | 7,631 | ​ | 5,179 |
| Payable to related parties | ​ | 3,680 | ​ | 2,697 |
| Accrued professional fees | ​ | ​ | 2,483 | ​ | ​ | 1,809 |
| Lease payable | ​ | ​ | 4,140 | ​ | ​ | 4,618 |
| Deferred PPP loan revenue | ​ | 12,976 | ​ | — |
| Other liabilities | ​ | 22,774 | ​ | 11,751 |
| Total accounts payable and other accrued liabilities | ​ | $ | 132,087 | ​ | $ | 97,407 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 | ​ | December 31, 2019 | Estimated Useful Life |
| Internally developed software - Knight Capital | $ | 3,219 | ​ | $ | 3,694 | 6 years |
| Broker network - Knight Capital | ​ | 956 | ​ | ​ | 1,156 | 4.5 years |
| SBA license | ​ | 1,000 | ​ | ​ | 1,000 | Indefinite life |
| Favorable lease | ​ | 802 | ​ | ​ | 905 | 12 years |
| Trade name - Knight Capital | ​ | 746 | ​ | ​ | 855 | 6 years |
| Trade name - GMFS | ​ | 594 | ​ | ​ | 699 | 15 years |
| Total Intangible Assets | $ | 7,317 | ​ | $ | 8,309 | ​ |

| ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 |
| Favorable lease | $ | 678 |
| Trade name - GMFS | ​ | 629 |
| Internally developed software - Knight Capital | ​ | 581 |
| Broker network - Knight Capital | ​ | 244 |
| Trade name - Knight Capital | ​ | 134 |
| Total Accumulated Amortization | $ | 2,266 |
| ​ | ​ | ​ |
| (In Thousands) | September 30, 2020 |
| 2020 | $ | 331 |
| 2021 | ​ | 1,295 |
| 2022 | ​ | 1,268 |
| 2023 | ​ | 1,242 |
| 2024 | ​ | 1,210 |
| Thereafter | ​ | 971 |
| Total | $ | 6,317 |

| a. | assistance and services to the third-party in the underwriting, marketing, processing and funding of loans |
| b. | processing forgiveness of the loans with the SBA |
| c. | servicing and management of subsequently resulting PPP loan portfolios |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (In Thousands) | Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | ​ | Financial statement account |
| Income | ​ | ​ | ​ | ​ | ​ | ​ |
| LSP origination fees | $ | 1,652 | $ | 27,768 | ​ | Other income - origination fees |
| PPP processing fees | ​ | 7 | ​ | 5,162 | ​ | Other income - origination fees |
| LSP fee income | ​ | 1,700 | ​ | 2,553 | ​ | Servicing income |
| Interest income | ​ | 302 | ​ | 496 | ​ | Interest income |
| Total PPP related income | $ | 3,661 | $ | 35,979 | ​ | ​ |
| Expense | ​ | ​ | ​ | ​ | ​ | ​ |
| Direct operating expenses | $ | 125 | $ | 5,650 | ​ | Other operating expenses - origination costs |
| R&D reserve | ​ | 111 | ​ | 2,430 | ​ | Other income - change in repair and denial reserve |
| Interest expense | ​ | 687 | ​ | 2,089 | ​ | Interest expense |
| Total PPP related expenses (direct) | $ | 923 | $ | 10,169 | ​ | ​ |
| Net PPP related income | $ | 2,738 | $ | 25,810 | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, | ​ |
| (In Thousands) | 2020 | 2019 | 2020 | 2019 | ​ |
| Other income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Origination income | $ | 3,144 | ​ | $ | 1,213 | $ | 39,256 | ​ | $ | 3,729 | ​ |
| Change in repair and denial reserve | ​ | 316 | ​ | ​ | 573 | ​ | ( 2,199 ) | ​ | ​ | 221 | ​ |
| Other | ​ | 1,036 | ​ | ​ | 1,193 | ​ | 3,106 | ​ | ​ | 2,721 | ​ |
| Total other income | ​ | $ | 4,496 | ​ | $ | 2,979 | ​ | $ | 40,163 | ​ | $ | 6,671 | ​ |
| Other operating expenses | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Origination costs | ​ | 2,717 | ​ | ​ | 3,042 | ​ | 15,172 | ​ | ​ | 6,964 | ​ |
| Technology expense | ​ | 1,650 | ​ | ​ | 1,155 | ​ | 4,973 | ​ | ​ | 3,313 | ​ |
| Impairment on real estate | ​ | — | ​ | ​ | 144 | ​ | 3,075 | ​ | ​ | 824 | ​ |
| Rent and property tax expense | ​ | 1,545 | ​ | ​ | 968 | ​ | 3,929 | ​ | ​ | 2,762 | ​ |
| Recruiting, training and travel expense | ​ | 254 | ​ | ​ | 366 | ​ | 1,113 | ​ | ​ | 1,252 | ​ |
| Marketing expense | ​ | ​ | 400 | ​ | ​ | 391 | ​ | ​ | 1,331 | ​ | ​ | 1,519 | ​ |
| Loan acquisition costs | ​ | ​ | 353 | ​ | ​ | 359 | ​ | ​ | 806 | ​ | ​ | 464 | ​ |
| Financing costs on purchased future receivables | ​ | ​ | 63 | ​ | ​ | — | ​ | ​ | 1,476 | ​ | ​ | — | ​ |
| Other | ​ | 3,466 | ​ | ​ | 1,719 | ​ | 10,052 | ​ | ​ | 5,993 | ​ |
| Total other operating expenses | ​ | $ | 10,448 | ​ | $ | 8,144 | ​ | $ | 41,927 | ​ | $ | 23,091 | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | Dividend per |
| Declaration Date | ​ | Record Date | ​ | Payment Date | ​ | Share |
| December 12, 2018 | ​ | December 31, 2018 | ​ | January 31, 2019 | ​ | $ | 0.40 | ​ |
| March 12, 2019 | ​ | March 28, 2019 | ​ | April 30, 2019 | ​ | $ | 0.40 | ​ |
| June 11, 2019 | ​ | June 28, 2019 | ​ | July 31, 2019 | ​ | $ | 0.40 | ​ |
| September 10, 2019 | ​ | September 30, 2019 | ​ | October 31, 2019 | ​ | $ | 0.40 | ​ |
| December 11, 2019 | ​ | December 31, 2019 | ​ | January 31, 2020 | ​ | $ | 0.40 | ​ |
| March 11, 2020 | ​ | March 31, 2020 | ​ | April 30, 2020 | ​ | $ | 0.40 | (1) |
| June 15, 2020 | ​ | June 30, 2020 | ​ | July 31, 2020 | ​ | $ | 0.25 | ​ |
| September 16, 2020 | ​ | September 30, 2020 | ​ | October 30, 2020 | ​ | $ | 0.30 | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Restricted Stock Awards |
| (In Thousands, except share data) | Number of Shares | Grant date fair value | Weighted-average grant date fair value (per share) |
| Outstanding, January 1, 2020 | 1,009,617 | ​ | $ | 15,722 | $ | 15.57 |
| Granted | 208,514 | ​ | 3,298 | ​ | 15.82 |
| Vested | ( 60,370 ) | ​ | ​ | ( 894 ) | ​ | 14.81 |
| Forfeited | — | ​ | ​ | — | ​ | — |
| Outstanding, March 31, 2020 | 1,157,761 | $ | 18,126 | $ | 15.66 |
| Granted | — | ​ | ​ | — | ​ | — |
| Vested | ( 16,452 ) | ​ | ​ | ( 227 ) | ​ | 13.78 |
| Forfeited | — | ​ | ​ | — | ​ | — |
| Canceled | — | ​ | ​ | — | ​ | — |
| Outstanding, June 30, 2020 | 1,141,309 | $ | 17,900 | $ | 15.68 |
| Granted | 17,200 | ​ | ​ | 200 | ​ | 11.63 |
| Vested | ( 26,602 ) | ​ | ​ | ( 320 ) | ​ | 12.03 |
| Forfeited | ( 2,258 ) | ​ | ​ | ( 37 ) | ​ | 16.26 |
| Canceled | — | ​ | ​ | — | ​ | — |
| Outstanding, September 30, 2020 | 1,129,649 | $ | 17,743 | $ | 15.71 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands, except for share and per share amounts) | 2020 | 2019 | 2020 | 2019 |
| Basic Earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net income (loss) | ​ | $ | 35,363 | ​ | $ | 12,427 | ​ | ​ | $ | 18,510 | ​ | $ | 54,120 |
| Less: Income (loss) attributable to non-controlling interest | ​ | ​ | 805 | ​ | ​ | 323 | ​ | ​ | ​ | 551 | ​ | ​ | 1,580 |
| Less: Income attributable to participating shares | ​ | ​ | 339 | ​ | ​ | 79 | ​ | ​ | ​ | 1,087 | ​ | ​ | 240 |
| Basic earnings | ​ | $ | 34,219 | ​ | $ | 12,025 | ​ | ​ | $ | 16,872 | ​ | $ | 52,300 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Diluted Earnings | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net income (loss) | ​ | $ | 35,363 | ​ | $ | 12,427 | ​ | ​ | $ | 18,510 | ​ | $ | 54,120 |
| Less: Income (loss) attributable to non-controlling interest | ​ | ​ | 805 | ​ | ​ | 323 | ​ | ​ | ​ | 551 | ​ | ​ | 1,580 |
| Less: Income attributable to participating shares | ​ | ​ | 339 | ​ | ​ | 79 | ​ | ​ | ​ | 1,087 | ​ | ​ | 240 |
| Diluted earnings | ​ | $ | 34,219 | ​ | $ | 12,025 | ​ | ​ | $ | 16,872 | ​ | $ | 52,300 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Number of Shares | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Basic — Average shares outstanding | ​ | ​ | 54,626,995 | ​ | ​ | 44,438,652 | ​ | ​ | ​ | 53,534,497 | ​ | ​ | 40,517,231 |
| Effect of dilutive securities — Unvested participating shares | ​ | ​ | 77,616 | ​ | ​ | 29,149 | ​ | ​ | ​ | 77,616 | ​ | ​ | 29,149 |
| Diluted — Average shares outstanding | ​ | ​ | 54,704,611 | ​ | ​ | 44,467,801 | ​ | ​ | ​ | 53,612,113 | ​ | ​ | 40,546,380 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Earnings Per Share Attributable to RC Common Stockholders: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Basic | ​ | $ | 0.63 | ​ | $ | 0.27 | ​ | ​ | $ | 0.32 | ​ | $ | 1.29 |
| Diluted | ​ | $ | 0.63 | ​ | $ | 0.27 | ​ | ​ | $ | 0.31 | ​ | $ | 1.29 |
| ​ |

single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to terminate derivative contracts prior to maturity in the event the Company’s stockholders’ equity declines by a stated percentage or the Company fails to meet the terms of its ISDA Master Agreements, which would cause the Company to accelerate payment of any net liability owed to the counterparty. As of September 30, 2020 and December 31, 2019 and for the periods then ended, 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 Annex, which is the sum of the mark to market for each derivative contract, the independent amount due to the derivative counterparty and any thresholds, if any. Collateral may be in the form of cash or any eligible securities, as defined in the respective ISDA agreements. Cash collateral pledged to and by the Company with the counterparty, if any, is reported separately in the unaudited interim consolidated balance sheets as restricted cash. All margin call amounts must be made before the notification time and must exceed a minimum transfer amount threshold before a transfer is required. All margin calls must be responded to and completed by the close of business on the same day of the margin call, unless otherwise specified. Any margin calls after the notification time must be completed by the next business day. Typically, the Company and its counterparties are not permitted to sell, rehypothecate or use the collateral posted. To the extent amounts due to the Company from its counterparties are not fully collateralized, the Company bears exposure and the risk of loss from a defaulting counterparty. The Company attempts to mitigate counterparty risk by establishing ISDA agreements with only high-grade counterparties that have the financial health to honor their obligations and diversification, entering into agreements with multiple counterparties.​In accordance with ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, the Company is required to disclose the impact of offsetting of assets and liabilities represented in the unaudited interim consolidated balance sheets to enable users of the unaudited interim consolidated financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities. These recognized assets and liabilities are financial instruments and derivative instruments that are either subject to enforceable master netting arrangements or ISDA Master Agreements or meet the following right of setoff criteria: (a) the amounts owed by the Company to another party are determinable, (b) the Company has the right to set off the amounts owed with the amounts owed by the counterparty, (c) the Company intends to offset, and (d) the Company’s right of offset is enforceable at law. As of September 30, 2020 and December 31, 2019, the Company has elected to offset assets and liabilities associated with its OTC derivative contracts in the unaudited interim consolidated balances sheets. ​ 56
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Gross amounts not offset in the Consolidated Balance Sheets(1) |
| (in thousands) | Gross amounts of recognized Assets / Liabilities | ​ | Gross amounts offset in the Consolidated Balance Sheets | ​ | Amounts presented in the Consolidated Balance Sheets | ​ | Financial Instruments | ​ | Cash Collateral Received / Paid |
| September 30, 2020 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Derivative instruments - Credit default swaps | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — |
| Derivative instruments - FX forwards | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Total | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | — |
| Liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Derivative instruments - Interest rate swaps | $ | 15,015 | ​ | $ | 7,738 | ​ | $ | 7,277 | ​ | $ | — | ​ | $ | 7,277 |
| Derivative instruments - Credit default swaps | ​ | 51 | ​ | ​ | — | ​ | ​ | 51 | ​ | ​ | — | ​ | ​ | 51 |
| Derivative instruments - FX forwards | ​ | 446 | ​ | ​ | — | ​ | ​ | 446 | ​ | ​ | — | ​ | ​ | — |
| Secured borrowings | ​ | 1,176,621 | ​ | ​ | — | ​ | ​ | 1,176,621 | ​ | ​ | 1,176,621 | ​ | ​ | — |
| Total | $ | 1,192,133 | ​ | $ | 7,738 | ​ | $ | 1,184,395 | ​ | $ | 1,176,621 | ​ | $ | 7,328 |
| December 31, 2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Derivative instruments - Interest rate swaps | $ | 2,814 | ​ | $ | — | ​ | $ | 2,814 | ​ | $ | — | ​ | $ | 2,814 |
| Total | $ | 2,814 | ​ | $ | — | ​ | $ | 2,814 | ​ | $ | — | ​ | $ | 2,814 |
| Liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Derivative instruments - Interest rate swaps | $ | 4,890 | ​ | $ | — | ​ | $ | 4,890 | ​ | $ | — | ​ | $ | 4,890 |
| Derivative instruments - Credit default swaps | ​ | 110 | ​ | ​ | — | ​ | ​ | 110 | ​ | ​ | — | ​ | ​ | 110 |
| Derivative instruments - FX forwards | ​ | 250 | ​ | ​ | — | ​ | ​ | 250 | ​ | ​ | — | ​ | ​ | 250 |
| Secured borrowings | ​ | 1,189,392 | ​ | ​ | — | ​ | ​ | 1,189,392 | ​ | ​ | 1,189,392 | ​ | ​ | — |
| Total | $ | 1,194,642 | ​ | $ | — | ​ | $ | 1,194,642 | ​ | $ | 1,189,392 | ​ | $ | 5,250 |
| (1) | Amounts presented in these columns are limited in total to the net amount of assets or liabilities presented in the prior column by instrument. In certain cases, there is excess cash collateral or financial assets we have pledged to a counterparty that exceed the financial liabilities subject to a master netting repurchase arrangement or similar agreement. Additionally, in certain cases, counterparties may have pledged excess cash collateral to us that exceeds our corresponding financial assets. In each case, any of these excess amounts are excluded from the table although they are separately reported in our unaudited interim consolidated balance sheets as assets or liabilities, respectively. |
| (1) |

​The Company is also subject to credit risk with respect to the counterparties to derivative contracts. If a counterparty becomes bankrupt or otherwise fails to perform its obligation under a derivative contract due to financial difficulties, we may experience significant delays in obtaining any recovery under the derivative contract in a dissolution, assignment for the benefit of creditors, liquidation, winding-up, bankruptcy, or other analogous proceeding. In the event of the insolvency of a counterparty to a derivative transaction, the derivative transaction would typically be terminated at its fair market value. If we are owed this fair market value in the termination of the derivative transaction and its claim is unsecured, we will be treated as a general creditor of such counterparty and will not have any claim with respect to the underlying security. We may obtain only a limited recovery or may obtain no recovery in such circumstances. In addition, the business failure of a counterparty with whom we enter a hedging transaction will most likely result in its default, which may result in the loss of potential future value and the loss of our hedge and force us to cover our commitments, if any, at the then current market price.​Counterparty credit risk is the risk that counterparties may fail to fulfill their obligations, including their inability to post additional collateral in circumstances where their pledged collateral value becomes inadequate. The Company attempts to manage its exposure to counterparty risk through diversification, use of financial instruments and monitoring the creditworthiness of counterparties.​The Company finances the acquisition of a significant portion of its loans and investments with repurchase agreements and borrowings under credit facilities. In connection with these financing arrangements, the Company pledges its loans, securities and cash as collateral to secure the borrowings. The amount of collateral pledged will typically exceed the amount of the borrowings (i.e., the haircut) such that the borrowings will be over-collateralized. As a result, the Company is exposed to the counterparty if, during the term of the repurchase agreement financing, a lender should default on its obligation and the Company is not able to recover its pledged assets. The amount of this exposure is the difference between the amount loaned to the Company plus interest due to the counterparty and the fair value of the collateral pledged by the Company to the lender including accrued interest receivable on such collateral.​GMFS sells loans to investors without recourse. As such, the investors have assumed the risk of loss or default by the borrower. However, GMFS is usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation and collateral. To the extent that GMFS does not comply with such representations, or there are early payment defaults, GMFS may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. In addition, if loans pay-off within a specified time frame, GMFS may be required to refund a portion of the sales proceeds to the investors.​Liquidity Risk — Liquidity risk arises in our investments and the general financing of our investing activities. It includes the risk of not being able to fund acquisition and origination activities at settlement dates and/or liquidate positions in a timely manner at reasonable prices, in addition to potential increases in collateral requirements during times of heightened market volatility. If we were forced to dispose of an illiquid investment at an inopportune time, we might be forced to do so at a substantial discount to the market value, resulting in a realized loss. We attempt to mitigate our liquidity risk by regularly monitoring the liquidity of our investments in SBC loans, MBS and other financial instruments. Factors such as our expected exit strategy for, the bid to offer spread of, and the number of broker dealers making an active market in a particular strategy and the availability of long-term funding, are considered in analyzing liquidity risk. To reduce any perceived disparity between the liquidity and the terms of the debt instruments in which we invest, we attempt to minimize our reliance on short-term financing arrangements. While we may finance certain investment in security positions using traditional margin arrangements and borrowings under repurchase agreements, other financial instruments such as collateralized debt obligations, and other longer term financing vehicles may be utilized to attempt to provide us with sources of long-term financing.​Off-Balance Sheet Risk —The Company has undrawn commitments on outstanding loans which are disclosed in Note 25.​Interest Rate — Interest rate risk is highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond our control.​Our operating results will depend, in part, on differences between the income from our investments and our financing costs. Generally, our debt financing is based on a floating rate of interest calculated on a fixed spread over the relevant index, subject to a floor, as determined by the particular financing arrangement. In the event of a significant rising interest 58
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | September 30, | ​ | December 31, |
| (In Thousands) | ​ | 2020 | ​ | 2019 |
| Loans, net | ​ | $ | 287,978 | ​ | $ | 128,719 |
| Loans, held for sale at fair value | ​ | $ | 5,401 | ​ | $ | 6,982 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | September 30, | ​ | December 31, |
| (In Thousands) | ​ | 2020 | ​ | 2019 |
| Commitments to originate residential agency loans | ​ | $ | 691,962 | ​ | $ | 190,806 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ |

Note 27 – Segment reporting​The Company reports its results of operations through the following four business segments: i) Loan Acquisitions, ii) SBC Originations, iii) SBA Originations, Acquisitions and Servicing, and iv) Residential Mortgage Banking. The Company’s organizational structure is based on a number of factors that the Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, uses to evaluate, view, and run its business operations, which includes customer base and nature of loan program types. The segments are based on this organizational structure and the information reviewed by the CODM and management to evaluate segment results. ​Acquisitions​Through the acquisitions segment, the Company acquires performing and non-performing SBC loans and intends to continue to acquire these loans as part of the Company’s business strategy. The Company also acquires purchased future receivables through our Knight Capital platform.​SBC originations​Through the SBC originations segment, the Company originates SBC loans secured by stabilized or transitional investor properties using multiple loan origination channels. Additionally, as part of this segment, we originate and service multi-family loans under the Freddie Mac program. This segment also reflects the impact of our SBC securitization activities. ​SBA originations, acquisitions, and servicing​Through the SBA originations, acquisitions, and servicing segment, the Company acquires, originates and services loans guaranteed by the SBA under the SBA Section 7(a) Program. This segment also reflects the impact of our SBA securitization activities.​Residential mortgage banking​Through the residential mortgage banking segment, the Company originates residential mortgage loans eligible to be purchased, guaranteed or insured by Fannie Mae, Freddie Mac, FHA, USDA and VA through retail, correspondent and broker channels.​Corporate - Other ​Corporate - Other consists primarily of unallocated corporate financing, including interest expense relating to our senior secured and convertible notes on funds yet to be deployed, allocated employee compensation from our Manager, management and incentive fees paid to our Manager and other general corporate overhead expenses.​ 61
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | SBA Originations, | Residential | ​ | ​ |
| ​ | ​ | Loan | ​ | SBC | ​ | Acquisitions, | ​ | Mortgage | ​ | Corporate- | ​ | ​ |
| (In Thousands) | ​ | Acquisitions | ​ | Originations | ​ | and Servicing | ​ | Banking | ​ | Other | ​ | Consolidated |
| Interest income | ​ | $ | 14,532 | ​ | $ | 35,287 | ​ | $ | 9,037 | ​ | $ | 2,218 | ​ | $ | — | ​ | $ | 61,074 |
| Interest expense | ​ | ​ | ( 11,011 ) | ​ | ​ | ( 23,342 ) | ​ | ​ | ( 6,414 ) | ​ | ​ | ( 2,157 ) | ​ | ​ | ( 899 ) | ​ | ​ | ( 43,823 ) |
| Net interest income before provision for loan losses | ​ | $ | 3,521 | ​ | $ | 11,945 | ​ | $ | 2,623 | ​ | $ | 61 | ​ | $ | ( 899 ) | ​ | $ | 17,251 |
| Provision for loan losses | ​ | 4,824 | ​ | ​ | 117 | ​ | ​ | ( 710 ) | ​ | ​ | — | ​ | ​ | — | ​ | 4,231 |
| Net interest income after provision for loan losses | ​ | $ | 8,345 | ​ | $ | 12,062 | ​ | $ | 1,913 | ​ | $ | 61 | ​ | $ | ( 899 ) | ​ | $ | 21,482 |
| Non-interest income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Residential mortgage banking activities | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 75,524 | ​ | $ | — | ​ | $ | 75,524 |
| Net realized gain on financial instruments | ​ | ​ | ( 2,244 ) | ​ | ​ | 5,309 | ​ | ​ | 4,442 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 7,507 |
| Net unrealized gain on financial instruments | ​ | ​ | 2,295 | ​ | ​ | 3,459 | ​ | ​ | 2,353 | ​ | ​ | ( 4,687 ) | ​ | ​ | — | ​ | ​ | 3,420 |
| Other income | ​ | ​ | 1,609 | ​ | ​ | 688 | ​ | ​ | 2,170 | ​ | ​ | 30 | ​ | ​ | ( 1 ) | ​ | ​ | 4,496 |
| Servicing income | ​ | ​ | 139 | ​ | ​ | 610 | ​ | ​ | 3,055 | ​ | ​ | 6,311 | ​ | ​ | — | ​ | ​ | 10,115 |
| Income on purchased future receivables, net of allowance for doubtful accounts | ​ | ​ | 4,848 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 4,848 |
| Income from unconsolidated joint ventures | ​ | ​ | 1,996 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,996 |
| Total non-interest income | ​ | $ | 8,643 | ​ | $ | 10,066 | ​ | $ | 12,020 | ​ | $ | 77,178 | ​ | $ | ( 1 ) | ​ | $ | 107,906 |
| Non-interest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Employee compensation and benefits | ​ | ( 3,192 ) | ​ | ​ | ( 4,046 ) | ​ | ​ | ( 4,378 ) | ​ | ​ | ( 15,118 ) | ​ | ​ | ( 878 ) | ​ | ( 27,612 ) |
| Allocated employee compensation and benefits from related party | ​ | ( 225 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 2,025 ) | ​ | ( 2,250 ) |
| Variable expenses on residential mortgage banking activities | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 30,918 ) | ​ | ​ | — | ​ | ​ | ( 30,918 ) |
| Professional fees | ​ | ( 514 ) | ​ | ​ | ( 449 ) | ​ | ​ | ( 270 ) | ​ | ​ | ( 960 ) | ​ | ​ | ( 1,965 ) | ​ | ( 4,158 ) |
| Management fees – related party | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 2,714 ) | ​ | ( 2,714 ) |
| Incentive fees – related party | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 1,134 ) | ​ | ( 1,134 ) |
| Loan servicing expense | ​ | ( 1,528 ) | ​ | ​ | ( 2,394 ) | ​ | ​ | ( 106 ) | ​ | ​ | ( 4,206 ) | ​ | ​ | 3 | ​ | ( 8,231 ) |
| Merger related expenses | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 6 ) | ​ | ​ | ( 6 ) |
| Other operating expenses | ​ | ( 3,095 ) | ​ | ​ | ( 2,450 ) | ​ | ​ | ( 1,590 ) | ​ | ​ | ( 2,618 ) | ​ | ​ | ( 695 ) | ​ | ( 10,448 ) |
| Total non-interest expense | ​ | $ | ( 8,554 ) | ​ | $ | ( 9,339 ) | ​ | $ | ( 6,344 ) | ​ | $ | ( 53,820 ) | ​ | $ | ( 9,414 ) | ​ | $ | ( 87,471 ) |
| Net income (loss) before provision for income taxes | ​ | $ | 8,434 | ​ | $ | 12,789 | ​ | $ | 7,589 | ​ | $ | 23,419 | ​ | $ | ( 10,314 ) | ​ | $ | 41,917 |
| Total assets | ​ | $ | 1,131,321 | ​ | $ | 2,515,234 | ​ | $ | 806,856 | ​ | $ | 640,112 | ​ | $ | 223,987 | ​ | $ | 5,317,510 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | SBA Originations, | Residential | ​ | ​ |
| ​ | ​ | ​ | ​ | SBC | ​ | Acquisitions, | ​ | Mortgage | ​ | Corporate- | ​ | ​ |
| (In Thousands) | ​ | Acquisitions | ​ | Originations | ​ | and Servicing | ​ | Banking | ​ | Other | ​ | Consolidated |
| Interest income | ​ | $ | 45,993 | ​ | $ | 112,052 | ​ | $ | 30,316 | ​ | $ | 5,465 | ​ | $ | — | ​ | $ | 193,826 |
| Interest expense | ​ | ​ | ( 32,871 ) | ​ | ​ | ( 72,476 ) | ​ | ​ | ( 21,766 ) | ​ | ​ | ( 5,778 ) | ​ | ​ | ( 1,271 ) | ​ | ​ | ( 134,162 ) |
| Net interest income before provision for loan losses | ​ | $ | 13,122 | ​ | $ | 39,576 | ​ | $ | 8,550 | ​ | $ | ( 313 ) | ​ | $ | ( 1,271 ) | ​ | $ | 59,664 |
| Provision for loan losses | ​ | ( 2,865 ) | ​ | ​ | ( 23,890 ) | ​ | ​ | ( 7,729 ) | ​ | ​ | ( 500 ) | ​ | ​ | — | ​ | ( 34,984 ) |
| Net interest income after provision for loan losses | ​ | $ | 10,257 | ​ | $ | 15,686 | ​ | $ | 821 | ​ | $ | ( 813 ) | ​ | $ | ( 1,271 ) | ​ | $ | 24,680 |
| Non-interest income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Residential mortgage banking activities | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 192,757 | ​ | $ | — | ​ | $ | 192,757 |
| Net realized gain (loss) on financial instruments | ​ | ​ | ( 3,378 ) | ​ | ​ | 15,190 | ​ | ​ | 10,306 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 22,118 |
| Net unrealized gain (loss) on financial instruments | ​ | ​ | ( 8,148 ) | ​ | ​ | ( 3,748 ) | ​ | ​ | 1,302 | ​ | ​ | ( 33,168 ) | ​ | ​ | — | ​ | ​ | ( 43,762 ) |
| Servicing income | ​ | 665 | ​ | ​ | 1,541 | ​ | ​ | 6,522 | ​ | ​ | 18,465 | ​ | ​ | — | ​ | 27,193 |
| Income on purchased future receivables, net of allowance for doubtful accounts | ​ | ​ | 13,917 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 13,917 |
| Loss from unconsolidated joint ventures | ​ | ​ | ( 1,035 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 1,035 ) |
| Other income | ​ | ​ | 5,364 | ​ | ​ | 3,410 | ​ | ​ | 31,139 | ​ | ​ | 136 | ​ | ​ | 114 | ​ | ​ | 40,163 |
| Total non-interest income (loss) | ​ | $ | 7,385 | ​ | $ | 16,393 | ​ | $ | 49,269 | ​ | $ | 178,190 | ​ | $ | 114 | ​ | $ | 251,351 |
| Non-interest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Employee compensation and benefits | ​ | $ | ( 8,663 ) | ​ | $ | ( 11,445 ) | ​ | $ | ( 11,773 ) | ​ | $ | ( 39,702 ) | ​ | $ | ( 2,253 ) | ​ | $ | ( 73,836 ) |
| Allocated employee compensation and benefits from related party | ​ | ( 475 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 4,275 ) | ​ | ( 4,750 ) |
| Variable expenses on residential mortgage banking activities | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 87,494 ) | ​ | ​ | — | ​ | ( 87,494 ) |
| Professional fees | ​ | ( 999 ) | ​ | ​ | ( 891 ) | ​ | ​ | ( 697 ) | ​ | ​ | ( 1,518 ) | ​ | ​ | ( 4,527 ) | ​ | ( 8,632 ) |
| Management fees – related party | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 7,941 ) | ​ | ( 7,941 ) |
| Incentive fees – related party | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 4,640 ) | ​ | ( 4,640 ) |
| Loan servicing expense | ​ | ( 4,387 ) | ​ | ​ | ( 5,685 ) | ​ | ​ | ( 688 ) | ​ | ​ | ( 13,325 ) | ​ | ​ | ( 37 ) | ​ | ( 24,122 ) |
| Merger related expenses | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 63 ) | ​ | ​ | ( 63 ) |
| Other operating expenses | ​ | ( 13,402 ) | ​ | ​ | ( 10,336 ) | ​ | ​ | ( 9,679 ) | ​ | ​ | ( 6,376 ) | ​ | ​ | ( 2,134 ) | ​ | ( 41,927 ) |
| Total non-interest expense | ​ | $ | ( 27,926 ) | ​ | $ | ( 28,357 ) | ​ | $ | ( 22,837 ) | ​ | $ | ( 148,415 ) | ​ | $ | ( 25,870 ) | ​ | $ | ( 253,405 ) |
| Net income (loss) before provision for income taxes | ​ | $ | ( 10,284 ) | ​ | $ | 3,722 | ​ | $ | 27,253 | ​ | $ | 28,962 | ​ | $ | ( 27,027 ) | ​ | $ | 22,626 |
| Total assets | ​ | $ | 1,131,321 | ​ | $ | 2,515,234 | ​ | $ | 806,856 | ​ | $ | 640,112 | ​ | $ | 223,987 | ​ | $ | 5,317,510 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | SBA Originations, | Residential | ​ | ​ |
| ​ | ​ | Loan | ​ | SBC | ​ | Acquisitions, | ​ | Mortgage | ​ | Corporate- | ​ | ​ |
| (In Thousands) | ​ | Acquisitions | ​ | Originations | ​ | and Servicing | ​ | Banking | ​ | Other | ​ | Consolidated |
| Interest income | ​ | $ | 18,880 | ​ | $ | 32,354 | ​ | $ | 7,235 | ​ | $ | 1,254 | ​ | $ | — | ​ | $ | 59,723 |
| Interest expense | ​ | ​ | ( 11,076 ) | ​ | ​ | ( 23,835 ) | ​ | ​ | ( 2,739 ) | ​ | ​ | ( 1,740 ) | ​ | ​ | — | ​ | ​ | ( 39,390 ) |
| Net interest income before provision for loan losses | ​ | $ | 7,804 | ​ | $ | 8,519 | ​ | $ | 4,496 | ​ | $ | ( 486 ) | ​ | $ | — | ​ | $ | 20,333 |
| Provision for loan losses | ​ | ( 94 ) | ​ | ​ | ( 33 ) | ​ | ​ | ( 566 ) | ​ | ​ | — | ​ | ​ | — | ​ | ( 693 ) |
| Net interest income after provision for loan losses | ​ | $ | 7,710 | ​ | $ | 8,486 | ​ | $ | 3,930 | ​ | $ | ( 486 ) | ​ | $ | — | ​ | $ | 19,640 |
| Non-interest income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Residential mortgage banking activities | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 29,013 | ​ | $ | — | ​ | $ | 29,013 |
| Net realized gain on financial instruments | ​ | ​ | ( 437 ) | ​ | ​ | 5,065 | ​ | ​ | 2,749 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 7,377 |
| Net unrealized gain (loss) on financial instruments | ​ | ​ | ( 206 ) | ​ | ​ | ( 865 ) | ​ | ​ | 772 | ​ | ​ | ( 7,582 ) | ​ | ​ | — | ​ | ​ | ( 7,881 ) |
| Other income | ​ | ​ | 925 | ​ | ​ | 1,118 | ​ | ​ | 812 | ​ | ​ | 80 | ​ | ​ | 44 | ​ | ​ | 2,979 |
| Servicing income | ​ | — | ​ | ​ | 488 | ​ | ​ | 1,180 | ​ | ​ | 5,781 | ​ | ​ | — | ​ | 7,449 |
| Income from unconsolidated joint ventures | ​ | ​ | 1,047 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,047 |
| Total non-interest income | ​ | $ | 1,329 | ​ | $ | 5,806 | ​ | $ | 5,513 | ​ | $ | 27,292 | ​ | $ | 44 | ​ | $ | 39,984 |
| Non-interest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Employee compensation and benefits | ​ | $ | ( 26 ) | ​ | $ | ( 1,420 ) | ​ | $ | ( 4,070 ) | ​ | $ | ( 7,091 ) | ​ | $ | ( 831 ) | ​ | $ | ( 13,438 ) |
| Allocated employee compensation and benefits from related party | ​ | ( 150 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 1,350 ) | ​ | ( 1,500 ) |
| Variable expenses on residential mortgage banking activities | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 17,318 ) | ​ | ​ | — | ​ | ​ | ( 17,318 ) |
| Professional fees | ​ | ( 195 ) | ​ | ​ | ( 571 ) | ​ | ​ | ( 279 ) | ​ | ​ | ( 344 ) | ​ | ​ | ( 641 ) | ​ | ( 2,030 ) |
| Management fees – related party | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 2,495 ) | ​ | ( 2,495 ) |
| Incentive fees – related party | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |
| Loan servicing (expense) income | ​ | ( 1,461 ) | ​ | ​ | ( 1,495 ) | ​ | ​ | ( 205 ) | ​ | ​ | ( 1,672 ) | ​ | ​ | ( 33 ) | ​ | ( 4,866 ) |
| Merger related expenses | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 51 ) | ​ | ​ | ( 51 ) |
| Other operating expenses | ​ | ( 770 ) | ​ | ​ | ( 3,369 ) | ​ | ​ | ( 1,508 ) | ​ | ​ | ( 1,691 ) | ​ | ​ | ( 806 ) | ​ | ( 8,144 ) |
| Total non-interest expense | ​ | $ | ( 2,602 ) | ​ | $ | ( 6,855 ) | ​ | $ | ( 6,062 ) | ​ | $ | ( 28,116 ) | ​ | $ | ( 6,207 ) | ​ | $ | ( 49,842 ) |
| Net income (loss) before provision for income taxes | ​ | $ | 6,437 | ​ | $ | 7,437 | ​ | $ | 3,381 | ​ | $ | ( 1,310 ) | ​ | $ | ( 6,163 ) | ​ | $ | 9,782 |
| Total assets | ​ | $ | 1,165,470 | ​ | $ | 2,266,076 | ​ | $ | 273,217 | ​ | $ | 327,162 | ​ | $ | 91,094 | ​ | $ | 4,123,019 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | SBA Originations, | Residential | ​ | ​ |
| ​ | ​ | Loan | ​ | SBC | ​ | Acquisitions, | ​ | Mortgage | ​ | Corporate- | ​ | ​ |
| (In Thousands) | ​ | Acquisitions | ​ | Originations | ​ | and Servicing | ​ | Banking | ​ | Other | ​ | Consolidated |
| Interest income | ​ | $ | 47,761 | ​ | $ | 91,182 | ​ | $ | 23,468 | ​ | $ | 3,099 | ​ | $ | — | ​ | $ | 165,510 |
| Interest expense | ​ | ​ | ( 29,383 ) | ​ | ​ | ( 65,903 ) | ​ | ​ | ( 11,529 ) | ​ | ​ | ( 4,104 ) | ​ | ​ | — | ​ | ​ | ( 110,919 ) |
| Net interest income before provision for loan losses | ​ | $ | 18,378 | ​ | $ | 25,279 | ​ | $ | 11,939 | ​ | $ | ( 1,005 ) | ​ | $ | — | ​ | $ | 54,591 |
| Provision for loan losses | ​ | ( 771 ) | ​ | ( 342 ) | ​ | ( 1,446 ) | ​ | ​ | — | ​ | ​ | — | ​ | ( 2,559 ) |
| Net interest income after provision for loan losses | ​ | $ | 17,607 | ​ | $ | 24,937 | ​ | $ | 10,493 | ​ | $ | ( 1,005 ) | ​ | $ | — | ​ | $ | 52,032 |
| Non-interest income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Residential mortgage banking activities | ​ | $ | — | ​ | $ | — | ​ | $ | — | ​ | $ | 64,621 | ​ | $ | — | ​ | $ | 64,621 |
| Net realized gain (loss) on financial instruments | ​ | ​ | ( 33 ) | ​ | ​ | 10,232 | ​ | ​ | 10,715 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 20,914 |
| Net unrealized gain (loss) on financial instruments | ​ | ​ | ( 886 ) | ​ | ​ | ( 131 ) | ​ | ​ | 268 | ​ | ​ | ( 21,050 ) | ​ | ​ | — | ​ | ​ | ( 21,799 ) |
| Servicing income | ​ | ​ | — | ​ | ​ | 1,386 | ​ | ​ | 4,013 | ​ | ​ | 16,613 | ​ | ​ | — | ​ | ​ | 22,012 |
| Income on unconsolidated joint ventures | ​ | ​ | 6,059 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 6,059 |
| Other income | ​ | ​ | 1,950 | ​ | ​ | 3,565 | ​ | ​ | 865 | ​ | ​ | 182 | ​ | ​ | 109 | ​ | ​ | 6,671 |
| Gain on bargain purchase | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 30,728 | ​ | ​ | 30,728 |
| Total non-interest income | ​ | $ | 7,090 | ​ | $ | 15,052 | ​ | $ | 15,861 | ​ | $ | 60,366 | ​ | $ | 30,837 | ​ | $ | 129,206 |
| Non-interest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Employee compensation and benefits | ​ | $ | ( 53 ) | ​ | $ | ( 5,454 ) | ​ | $ | ( 12,262 ) | ​ | $ | ( 17,131 ) | ​ | $ | ( 2,495 ) | ​ | $ | ( 37,395 ) |
| Allocated employee compensation and benefits from related party | ​ | ( 360 ) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 3,243 ) | ​ | ( 3,603 ) |
| Variable expenses on residential mortgage banking activities | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 39,995 ) | ​ | ​ | — | ​ | ( 39,995 ) |
| Professional fees | ​ | ( 412 ) | ​ | ​ | ( 1,185 ) | ​ | ​ | ( 635 ) | ​ | ​ | ( 809 ) | ​ | ​ | ( 2,404 ) | ​ | ( 5,445 ) |
| Management fees – related party | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 6,987 ) | ​ | ( 6,987 ) |
| Loan servicing expense | ​ | ( 3,379 ) | ​ | ​ | ( 4,185 ) | ​ | ​ | ( 322 ) | ​ | ​ | ( 5,089 ) | ​ | ​ | ( 110 ) | ​ | ( 13,085 ) |
| Merger related expenses | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | ( 6,121 ) | ​ | ​ | ( 6,121 ) |
| Other operating expenses | ​ | ( 2,073 ) | ​ | ​ | ( 8,198 ) | ​ | ​ | ( 4,635 ) | ​ | ​ | ( 5,818 ) | ​ | ​ | ( 2,367 ) | ​ | ( 23,091 ) |
| Total non-interest expense | ​ | $ | ( 6,277 ) | ​ | $ | ( 19,022 ) | ​ | $ | ( 17,854 ) | ​ | $ | ( 68,842 ) | ​ | $ | ( 23,727 ) | ​ | $ | ( 135,722 ) |
| Net income (loss) before provision for income taxes | ​ | $ | 18,420 | ​ | $ | 20,967 | ​ | $ | 8,500 | ​ | $ | ( 9,481 ) | ​ | $ | 7,110 | ​ | $ | 45,516 |
| Total assets | ​ | $ | 1,165,470 | ​ | $ | 2,266,076 | ​ | $ | 273,217 | ​ | $ | 327,162 | ​ | $ | 91,094 | ​ | $ | 4,123,019 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Statements of Income | ​ | Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 |
| (In Thousands) | ​ | ​ | Girod HoldCo, LLC | ​ | ​ | WFLLA, LLC | ​ | Girod HoldCo, LLC | ​ | ​ | WFLLA, LLC |
| Interest income | ​ | $ | 661 | ​ | $ | 330 | $ | 1,108 | ​ | $ | 553 |
| Realized gains | ​ | ​ | ( 178 ) | ​ | ​ | ( 89 ) | ​ | 364 | ​ | ​ | 182 |
| Unrealized gains (losses) | ​ | ​ | 1,117 | ​ | ​ | 557 | ​ | 2,074 | ​ | ​ | 1,035 |
| Servicing expense and other | ​ | ​ | ( 711 ) | ​ | ​ | ( 355 ) | ​ | ( 1,224 ) | ​ | ​ | ( 615 ) |
| Income (loss) before provision for income taxes | ​ | $ | 889 | ​ | $ | 443 | $ | 2,322 | ​ | $ | 1,155 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Statements of Income | ​ | Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 |
| (In Thousands) | ​ | ​ | Girod HoldCo, LLC | ​ | ​ | WFLLA, LLC | ​ | Girod HoldCo, LLC | ​ | ​ | WFLLA, LLC |
| Interest income | ​ | $ | 1,310 | ​ | $ | 654 | $ | 5,943 | ​ | $ | 2,966 |
| Realized gains | ​ | ​ | ( 28 ) | ​ | ​ | ( 14 ) | ​ | 995 | ​ | ​ | 497 |
| Unrealized gains (losses) | ​ | ​ | ( 3,104 ) | ​ | ​ | ( 1,549 ) | ​ | 18,442 | ​ | ​ | 9,203 |
| Servicing expense and other | ​ | ​ | ( 3,141 ) | ​ | ​ | ( 1,567 ) | ​ | ( 3,581 ) | ​ | ​ | ( 1,792 ) |
| Income (loss) before provision for income taxes | ​ | $ | ( 4,963 ) | ​ | $ | ( 2,476 ) | $ | 21,799 | ​ | $ | 10,874 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | 2020 | 2019 | 2020 | 2019 |
| Income (loss) on unconsolidated joint ventures | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| WFLLA, LLC | ​ | $ | 222 | ​ | $ | 578 | ​ | $ | ( 1,238 ) | ​ | $ | 5,437 |
| Other unconsolidated joint ventures | ​ | ​ | 1,774 | ​ | ​ | 469 | ​ | ​ | 203 | ​ | ​ | 622 |
| Income (loss) on unconsolidated joint ventures | ​ | $ | 1,996 | ​ | $ | 1,047 | ​ | $ | ( 1,035 ) | ​ | $ | 6,059 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ● | our investment objectives and business strategy; |
| ● | our ability to obtain future financing arrangements; |
| ● | our expected leverage; |
| ● | our expected investments; |
| ● | estimates or statements relating to, and our ability to make, future distributions; |
| ● | our ability to compete in the marketplace; |
| ● | the availability of attractive risk-adjusted investment opportunities in small to medium balance commercial loans (“SBC loans”), loans guaranteed by the U.S. Small Business Administration (the “SBA”) under its Section 7(a) loan program (the “SBA Section 7(a) Program”), mortgage backed securities (“MBS”), residential mortgage loans and other real estate-related investments that satisfy our investment objectives and strategies; |
| ● | our ability to borrow funds at favorable rates; |
| ● | market, industry and economic trends; |
| ● | recent market developments and actions taken and to be taken by the U.S. Government, the U.S. Department of the Treasury (“Treasury”) and the Board of Governors of the Federal Reserve System, the Federal Depositary Insurance Corporation, the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac” and together with Fannie Mae, the “GSEs”), the Government National Mortgage Association (“Ginnie Mae”), Federal Housing Administration (“FHA”) Mortgagee, U.S. Department of Agriculture (“USDA”), U.S. Department of Veterans Affairs (“VA”) and the U.S. Securities and Exchange Commission (“SEC”); |
| ● | mortgage loan modification programs and future legislative actions; |
| ● | our ability to maintain our qualification as a real estate investment trust (“REIT”); |
| ● | our ability to maintain our exemption from qualification under the Investment Company Act of 1940, as amended (the “1940 Act” or “Investment Company Act”); |
| ● | projected capital and operating expenditures; |
| ● | availability of qualified personnel; |
| ● | prepayment rates; and |

| ● | projected default rates. |
| ● | factors described in our 2019 annual report on Form 10-K, including those set forth under the captions “Risk Factors” and “Business”; |
| ● | the severity and duration of the COVID-19 pandemic; |
| ● | the impact of COVID-19 on our business and operations, financial condition, results of operations, liquidity and capital resources; |
| ● | the impact of the COVID-19 pandemic on our borrowers, the real estate industry, and the United States and global economies; |
| ● | actions that may be taken by governmental authorities to contain the COVID-19 outbreak or treat its impact; |
| ● | applicable regulatory changes; |
| ● | risks associated with acquisitions, including the acquisition of Owens Realty Mortgage, Inc. (“ORM”) and Knight Capital LLC (“Knight Capital”); |
| ● | risks associated with achieving expected revenue synergies, cost savings and other benefits from acquisitions, including the acquisition of ORM and Knight Capital, and the increased scale of our Company; |
| ● | general volatility of the capital markets; |
| ● | changes in our investment objectives and business strategy; |
| ● | the availability, terms and deployment of capital; |
| ● | the availability of suitable investment opportunities; |
| ● | our dependence on our external advisor, Waterfall Asset Management, LLC (“Waterfall” or our “Manager”), and our ability to find a suitable replacement if we or our Manager were to terminate the management agreement we have entered into with our Manager; |
| ● | changes in our assets, interest rates or the general economy; |
| ● | increased rates of default and/or decreased recovery rates on our investments; |
| ● | changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of our assets; |
| ● | limitations on our business as a result of our qualification as a REIT; and |
| ● | the degree and nature of our competition, including competition for SBC loans, MBS, residential mortgage loans and other real estate-related investments that satisfy our investment objectives and strategies. |

| ● | Overview |
| ● | Results of Operations |
| ● | Liquidity and Capital Resources |
| ● | Off-Balance Sheet Arrangements and Contractual Obligations |
| ● | Critical Accounting Policies and Estimates |
| ● | Acquisitions. We acquire performing and non-performing SBC loans as part of our business strategy. We hold performing SBC loans to term, and we seek to maximize the value of the non-performing SBC loans acquired by us through borrower-based resolution strategies. We typically acquire non-performing loans at a discount to their unpaid principal balance (“UPB”) when we believe that resolution of the loans will provide attractive risk-adjusted returns. We also acquire purchased future receivables through our Knight Capital platform. |
| ● | SBC Originations. We originate SBC loans secured by stabilized or transitional investor properties using multiple loan origination channels through our wholly-owned subsidiary, ReadyCap Commercial, LLC (“ReadyCap Commercial”). These originated loans are generally held-for-investment or placed into securitization structures. Additionally, as part of this segment, we originate and service multi-family loans |

| under the Federal Home Loan Mortgage Corporation’s Small Balance Loan Program (“Freddie Mac” and the “Freddie Mac program”). These originated loans are held for sale, then sold to Freddie Mac. |
| ● | SBA Originations, Acquisitions and Servicing. We acquire, originate and service owner-occupied loans guaranteed by the SBA under its Section 7(a) loan program (the “SBA Section 7(a) Program”) through our wholly-owned subsidiary, ReadyCap Lending, LLC (“ReadyCap Lending”). We hold an SBA license as one of only 14 non-bank Small Business Lending Companies (“SBLCs”) and have been granted preferred lender status by the SBA. These originated loans are either held-for-investment, placed into securitization structures, or sold. |
| ● | Residential Mortgage Banking. We operate our residential mortgage loan origination segment through our wholly-owned subsidiary, GMFS, LLC ("GMFS"). GMFS originates residential mortgage loans eligible to be purchased, guaranteed or insured by the Federal National Mortgage Association (“Fannie Mae”), Freddie Mac, Federal Housing Administration (“FHA”), U.S. Department of Agriculture (“USDA”) and U.S. Department of Veterans Affairs (“VA”) through retail, correspondent and broker channels. These originated loans are then sold to third parties, primarily agency lending programs. |

| ● | the interest expense associated with our variable-rate borrowings to increase; |
| ● | the value of fixed-rate loans, MBS and other real estate-related assets to decline; |
| ● | coupons on variable-rate loans and MBS to reset to higher interest rates; and |
| ● | prepayments on loans and MBS to slow. |
| ● | the interest expense associated with variable-rate borrowings to decrease; |
| ● | the value of fixed-rate loans, MBS and other real estate-related assets to increase; |
| ● | coupons on variable-rate loans and MBS to reset to lower interest rates; and |
| ● | prepayments on loans and MBS to increase. |

The spread between the yield on our assets and our funding costs is an important factor in the performance of this aspect of our business. Wider spreads imply greater income on new asset purchases but may have a negative impact on our stated book value. Wider spreads generally negatively impact asset prices. In an environment where spreads are widening, counterparties may require additional collateral to secure borrowings which may require us to reduce leverage by selling assets. Conversely, tighter spreads imply lower income on new asset purchases but may have a positive impact on our stated book value. Tighter spreads generally have a positive impact on asset prices. In this case, we may be able to reduce the amount of collateral required to secure borrowings.​Loan and ABS Extension Risk​Waterfall estimates the projected weighted-average life of our investments based on assumptions regarding the rate at which the borrowers will prepay the underlying mortgages and/or the speed at which we are able to liquidate an asset. If the timeline to resolve non-performing assets extends, this could have a negative impact on our results of operations, as carrying costs may therefore be higher than initially anticipated. This situation may also cause the fair market value of our investment to decline if real estate values decline over the extended period. In extreme situations, we may be forced to sell assets to maintain adequate liquidity, which could cause us to incur losses.​Credit Risk​We are subject to credit risk in connection with our investments in loans and ABS and other target assets we may acquire in the future. Increases in defaults and delinquencies will adversely impact our operating results, while declines in rates of default and delinquencies will improve our operating results from this aspect of our business. Default rates are influenced by a wide variety of factors, including, property performance, property management, supply and demand factors, construction trends, consumer behavior, regional economics, interest rates, the strength of the United States economy and other factors beyond our control. All loans are subject to the possibility of default. We seek to mitigate this risk by seeking to acquire assets at appropriate prices given anticipated and unanticipated losses and by deploying a value-driven approach to underwriting and diligence, consistent with our historical investment strategy, with a focus on projected cash flows and potential risks to cash flow. We further mitigate our risk of potential losses while managing and servicing our loans by performing various workout and loss mitigation strategies with delinquent borrowers. Nevertheless, unanticipated credit losses could occur which could adversely impact operating results.​Size of Investment Portfolio​The size of our investment portfolio, as measured by the aggregate principal balance of our loans and ABS and the other assets we own, is also a key revenue driver. Generally, as the size of our investment portfolio grows, the amount of interest income and realized gains we receive increases. A larger investment portfolio, however, drives increased expenses, as we may incur additional interest expense to finance the purchase of our assets.​Current market conditions​ The outbreak of the COVID-19 pandemic around the globe continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The impact of the outbreak has been rapidly evolving, with several countries taking drastic measures to limit the spread of the virus by instituting quarantines or lockdowns and imposing travel restrictions. While some of these restrictions have been relaxed or phased out, many of these or similar restrictions remain in place, continue to be implemented or additional restrictions are being considered. Such actions are creating significant disruptions to global supply chains and adversely impacting several industries, including but not limited to airlines, hospitality, retail, and the broader real estate industry. The major disruption caused by COVID-19 significantly reduced economic activity in most of the United States resulting in a significant increase in unemployment claims. COVID-19 has had a continued and prolonged adverse impact on economic and market conditions and has had a period of global economic slowdown which could have a material adverse effect on the Company’s results and financial condition.​ The full impact of COVID-19 on the real estate industry, the commercial real estate market, the small business lending market and the credit markets generally, and consequently on the Company’s financial condition and results of operations is uncertain and cannot be predicted at the current time as it depends on several factors beyond the control of the Company including, but not limited to, (i) the uncertainty around the severity and duration of the outbreak, (ii) the effectiveness of 71
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (in thousands, except share data) | ​ | 2020 | ​ | 2019 | ​ | 2020 | ​ | 2019 |
| Net Income | ​ | $ | 35,363 | ​ | ​ | $ | 12,427 | ​ | ​ | $ | 18,510 | ​ | ​ | $ | 54,120 | ​ |
| Earnings per common share - basic | ​ | $ | 0.63 | ​ | ​ | $ | 0.27 | ​ | ​ | $ | 0.32 | ​ | ​ | $ | 1.29 | ​ |
| Earnings per common share - diluted | ​ | $ | 0.63 | ​ | ​ | $ | 0.27 | ​ | ​ | $ | 0.31 | ​ | ​ | $ | 1.29 | ​ |
| Core Earnings | ​ | $ | 32,126 | ​ | ​ | $ | 18,249 | ​ | ​ | $ | 72,574 | ​ | ​ | $ | 46,297 | ​ |
| Core Earnings per common share - basic and diluted | ​ | $ | 0.57 | ​ | ​ | $ | 0.40 | ​ | ​ | $ | 1.30 | ​ | ​ | $ | 1.10 | ​ |
| Dividends declared per common share | ​ | $ | 0.30 | ​ | ​ | $ | 0.40 | ​ | ​ | $ | 0.95 | ​ | ​ | $ | 1.20 | ​ |
| Dividend yield(1) | ​ | ​ | 10.7 | % | ​ | ​ | 10.1 | % | ​ | ​ | 10.7 | % | ​ | ​ | 10.1 | % |
| Book value per common share | ​ | $ | 14.86 | ​ | ​ | $ | 16.20 | ​ | ​ | $ | 14.86 | ​ | ​ | $ | 16.20 | ​ |
| Adjusted net book value per common share(2) | ​ | $ | 14.84 | ​ | ​ | $ | 16.16 | ​ | ​ | $ | 14.84 | ​ | ​ | $ | 16.16 | ​ |
| (1) Based on the closing share price on September 30, 2020 and 2019, respectively. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (2) Excludes the equity component of our 2017 convertible note issuance. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended | ​ | Three Months Ended | ​ | Nine Months Ended | ​ | Nine Months Ended |
| (in thousands) | ​ | September 30, 2020 | ​ | September 30, 2019 | ​ | September 30, 2020 | ​ | September 30, 2019 |
| Loan originations | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| SBC loan originations | ​ | $ | 122,487 | ​ | $ | 465,374 | ​ | $ | 750,164 | ​ | $ | 1,176,942 |
| SBA loan originations | ​ | ​ | 82,912 | ​ | ​ | 48,244 | ​ | ​ | 149,283 | ​ | ​ | 146,021 |
| Residential agency mortgage loan originations | ​ | ​ | 1,184,237 | ​ | ​ | 656,791 | ​ | ​ | 3,066,711 | ​ | ​ | 1,519,377 |
| Total loan originations | ​ | $ | 1,389,636 | ​ | $ | 1,170,409 | ​ | $ | 3,966,158 | ​ | $ | 2,842,340 |
| Total loan acquisitions | ​ | $ | 20,989 | ​ | $ | 77,900 | ​ | $ | 72,483 | ​ | $ | 568,784 |
| Total loan investment activity | ​ | $ | 1,410,625 | ​ | $ | 1,248,309 | ​ | $ | 4,038,641 | ​ | $ | 3,411,124 |

The following table provides a detailed breakdown of our calculation of return on equity and core return on equity for the three months ended September 30, 2020. Core return on equity is not a measure calculated in accordance with GAAP and is defined further within Item 7 – Non-GAAP Financial Measures in our 2019 Annual report on Form 10-K.​​​74
Portfolio Metrics​SBC Originations​The following table includes certain portfolio metrics related to our SBC originations segment:​​75
SBA Originations, Acquisitions, and Servicing​The following table includes certain portfolio metrics related to our SBA originations, acquisitions and servicing segment: ​​76
Acquired Portfolio​The following table includes certain portfolio metrics related to our acquisitions segment:​​​77
Residential Mortgage Banking​The following table includes certain portfolio metrics related to our residential mortgage banking segment:​78
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | September 30, | ​ | June 30, | ​ | $ Change | ​ | % Change |
| (In Thousands) | 2020 | 2020 | ​ | Q3'20 vs. Q2'20 | ​ | Q3'20 vs. Q2'20 |
| Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Cash and cash equivalents | ​ | $ | 149,847 | ​ | $ | 257,017 | ​ | $ | (107,170) | (41.7) | % |
| Restricted cash | ​ | 46,204 | ​ | 91,539 | ​ | ​ | (45,335) | ​ | (49.5) | ​ |
| Loans, net (including $119,965 and $124,298 held at fair value) | ​ | 1,393,139 | ​ | 1,432,807 | ​ | ​ | (39,668) | ​ | (2.8) | ​ |
| Loans, held for sale, at fair value | ​ | 348,719 | ​ | 297,669 | ​ | ​ | 51,050 | ​ | 17.1 | ​ |
| Mortgage backed securities, at fair value | ​ | 90,427 | ​ | 75,411 | ​ | ​ | 15,016 | ​ | 19.9 | ​ |
| Loans eligible for repurchase from Ginnie Mae | ​ | ​ | 237,542 | ​ | ​ | 186,197 | ​ | ​ | 51,345 | ​ | 27.6 | ​ |
| Investment in unconsolidated joint ventures | ​ | ​ | 69,204 | ​ | ​ | 53,939 | ​ | ​ | 15,265 | ​ | 28.3 | ​ |
| Purchased future receivables, net | ​ | ​ | 16,659 | ​ | ​ | 27,190 | ​ | ​ | (10,531) | ​ | (38.7) | ​ |
| Derivative instruments | ​ | 20,849 | ​ | 19,037 | ​ | ​ | 1,812 | ​ | 9.5 | ​ |
| Servicing rights (including $74,384 and $73,645 held at fair value) | ​ | 110,045 | ​ | 107,761 | ​ | ​ | 2,284 | ​ | 2.1 | ​ |
| Real estate, held for sale | ​ | ​ | 45,063 | ​ | ​ | 47,009 | ​ | ​ | (1,946) | ​ | (4.1) | ​ |
| Other assets | ​ | 98,614 | ​ | 103,701 | ​ | ​ | (5,087) | ​ | (4.9) | ​ |
| Assets of consolidated VIEs | ​ | ​ | 2,691,198 | ​ | ​ | 2,761,655 | ​ | ​ | (70,457) | ​ | (2.6) | ​ |
| Total Assets | ​ | $ | 5,317,510 | ​ | $ | 5,460,932 | ​ | $ | (143,422) | ​ | (2.6) | % |
| Liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Secured borrowings | ​ | $ | 1,176,621 | ​ | $ | 1,253,895 | ​ | $ | (77,274) | ​ | (6.2) | % |
| Securitized debt obligations of consolidated VIEs, net | ​ | 2,059,114 | ​ | 2,140,009 | ​ | ​ | (80,895) | ​ | (3.8) | ​ |
| Convertible notes, net | ​ | ​ | 111,855 | ​ | ​ | 111,581 | ​ | ​ | 274 | ​ | 0.2 | ​ |
| Senior secured notes, net | ​ | 179,572 | ​ | 179,481 | ​ | ​ | 91 | ​ | 0.1 | ​ |
| Corporate debt, net | ​ | ​ | 150,658 | ​ | ​ | 150,387 | ​ | ​ | 271 | ​ | 0.2 | ​ |
| Guaranteed loan financing | ​ | 421,183 | ​ | 436,532 | ​ | ​ | (15,349) | ​ | (3.5) | ​ |
| Liabilities for loans eligible for repurchase from Ginnie Mae | ​ | ​ | 237,542 | ​ | ​ | 186,197 | ​ | ​ | 51,345 | ​ | 27.6 | ​ |
| Derivative instruments | ​ | 7,774 | ​ | 9,106 | ​ | ​ | (1,332) | ​ | (14.6) | ​ |
| Dividends payable | ​ | 16,934 | ​ | 14,524 | ​ | ​ | 2,410 | ​ | 16.6 | ​ |
| Accounts payable and other accrued liabilities | ​ | 132,087 | ​ | 166,174 | ​ | ​ | (34,087) | ​ | (20.5) | ​ |
| Total Liabilities | ​ | $ | 4,493,340 | ​ | $ | 4,647,886 | ​ | $ | (154,546) | ​ | (3.3) | % |
| Stockholders’ Equity | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Common stock | ​ | $ | 5 | ​ | $ | 5 | ​ | $ | — | ​ | 0.0 | % |
| Additional paid-in capital | ​ | 846,960 | ​ | 854,222 | ​ | ​ | (7,262) | ​ | (0.9) | ​ |
| Retained earnings (deficit) | ​ | ​ | (31,779) | ​ | ​ | (49,755) | ​ | ​ | 17,976 | ​ | (36.1) | ​ |
| Accumulated other comprehensive (loss) | ​ | (9,916) | ​ | (9,876) | ​ | ​ | (40) | ​ | 0.4 | ​ |
| Total Ready Capital Corporation equity | ​ | 805,270 | ​ | 794,596 | ​ | ​ | 10,674 | ​ | 1.3 | % |
| Non-controlling interests | ​ | 18,900 | ​ | 18,450 | ​ | ​ | 450 | ​ | 2.4 | ​ |
| Total Stockholders’ Equity | ​ | $ | 824,170 | ​ | $ | 813,046 | ​ | $ | 11,124 | ​ | 1.4 | % |
| Total Liabilities and Stockholders’ Equity | ​ | $ | 5,317,510 | ​ | $ | 5,460,932 | ​ | $ | (143,422) | ​ | (2.6) | % |
| ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (in thousands) | ​ | Acquisitions | ​ | SBC Originations | ​ | SBA Originations, Acquisitions and Servicing | ​ | Residential Mortgage Banking | ​ | Total |
| Assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans, net (1)(2) | ​ | $ | 949,728 | $ | 2,366,167 | $ | 743,114 | $ | 5,235 | $ | 4,064,244 |
| Loans, held for sale, at fair value | ​ | ​ | 510 | ​ | ​ | 20,486 | ​ | ​ | 39,764 | ​ | ​ | 287,959 | ​ | ​ | 348,719 |
| Mortgage backed securities, at fair value | ​ | ​ | 22,842 | ​ | ​ | 67,585 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 90,427 |
| Servicing rights | ​ | ​ | — | ​ | ​ | 18,121 | ​ | ​ | 17,540 | ​ | ​ | 74,384 | ​ | ​ | 110,045 |
| Investment in unconsolidated joint ventures | ​ | ​ | 69,204 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 69,204 |
| Purchased future receivables, net | ​ | ​ | 16,659 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 16,659 |
| Real estate, held for sale (1) | ​ | ​ | 45,063 | ​ | ​ | 8,422 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 53,485 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Secured borrowings | ​ | $ | 226,545 | ​ | $ | 482,665 | ​ | $ | 159,467 | ​ | $ | 307,944 | ​ | $ | 1,176,621 |
| Securitized debt obligations of consolidated VIEs | ​ | ​ | 552,998 | ​ | ​ | 1,399,224 | ​ | ​ | 106,892 | ​ | ​ | — | ​ | ​ | 2,059,114 |
| Guaranteed loan financing | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 421,183 | ​ | ​ | — | ​ | ​ | 421,183 |
| Senior secured notes, net | ​ | ​ | 42,609 | ​ | ​ | 129,919 | ​ | ​ | 7,045 | ​ | ​ | — | ​ | ​ | 179,572 |
| Corporate debt, net | ​ | ​ | 75,189 | ​ | ​ | 75,469 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 150,658 |
| Convertible notes, net | ​ | ​ | 55,125 | ​ | ​ | 51,132 | ​ | ​ | 5,598 | ​ | ​ | — | ​ | ​ | 111,855 |
| (1) Includes assets of consolidated VIEs(2) Excludes allowance for loan losses. |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | $ Change | ​ | Nine Months Ended September 30, | ​ | $ Change |
| ​ | ​ | 2020 | ​ | 2019 | ​ | 2020 vs. 2019 | ​ | 2020 | ​ | 2019 | ​ | 2020 vs. 2019 |
| Interest income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loan acquisitions | ​ | $ | 14,532 | $ | 18,880 | $ | (4,348) | ​ | $ | 45,993 | $ | 47,761 | $ | (1,768) |
| SBC originations | ​ | ​ | 35,287 | ​ | ​ | 32,354 | ​ | ​ | 2,933 | ​ | ​ | 112,052 | ​ | ​ | 91,182 | ​ | ​ | 20,870 |
| SBA originations, acquisitions and servicing | ​ | ​ | 9,037 | ​ | ​ | 7,235 | ​ | ​ | 1,802 | ​ | ​ | 30,316 | ​ | ​ | 23,468 | ​ | ​ | 6,848 |
| Residential mortgage banking | ​ | ​ | 2,218 | ​ | ​ | 1,254 | ​ | ​ | 964 | ​ | ​ | 5,465 | ​ | ​ | 3,099 | ​ | ​ | 2,366 |
| Total interest income | ​ | $ | 61,074 | ​ | $ | 59,723 | ​ | $ | 1,351 | ​ | $ | 193,826 | ​ | $ | 165,510 | ​ | $ | 28,316 |
| Interest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loan acquisitions | ​ | $ | (11,011) | ​ | $ | (11,076) | ​ | $ | 65 | ​ | $ | (32,871) | ​ | $ | (29,383) | ​ | $ | (3,488) |
| SBC originations | ​ | ​ | (23,342) | ​ | ​ | (23,835) | ​ | ​ | 493 | ​ | ​ | (72,476) | ​ | ​ | (65,903) | ​ | ​ | (6,573) |
| SBA originations, acquisitions and servicing | ​ | ​ | (6,414) | ​ | ​ | (2,739) | ​ | ​ | (3,675) | ​ | ​ | (21,766) | ​ | ​ | (11,529) | ​ | ​ | (10,237) |
| Residential mortgage banking | ​ | ​ | (2,157) | ​ | ​ | (1,740) | ​ | ​ | (417) | ​ | ​ | (5,778) | ​ | ​ | (4,104) | ​ | ​ | (1,674) |
| Corporate - other | ​ | ​ | (899) | ​ | ​ | - | ​ | ​ | (899) | ​ | ​ | (1,271) | ​ | ​ | - | ​ | ​ | (1,271) |
| Total interest expense | ​ | $ | (43,823) | ​ | $ | (39,390) | ​ | $ | (4,433) | ​ | $ | (134,162) | ​ | $ | (110,919) | ​ | $ | (23,243) |
| Net interest income before provision for loan losses | ​ | $ | 17,251 | ​ | $ | 20,333 | ​ | $ | (3,082) | ​ | $ | 59,664 | ​ | $ | 54,591 | ​ | $ | 5,073 |
| Loan acquisitions | ​ | $ | 4,824 | ​ | $ | (94) | ​ | $ | 4,918 | ​ | $ | (2,865) | ​ | $ | (771) | ​ | $ | (2,094) |
| SBC originations | ​ | ​ | 117 | ​ | ​ | (33) | ​ | ​ | 150 | ​ | ​ | (23,890) | ​ | ​ | (342) | ​ | ​ | (23,548) |
| SBA originations, acquisitions and servicing | ​ | ​ | (710) | ​ | ​ | (566) | ​ | ​ | (144) | ​ | ​ | (7,729) | ​ | ​ | (1,446) | ​ | ​ | (6,283) |
| Residential mortgage banking | ​ | ​ | - | ​ | ​ | — | ​ | ​ | - | ​ | ​ | (500) | ​ | ​ | — | ​ | ​ | (500) |
| Provision for loan losses | ​ | $ | 4,231 | ​ | $ | (693) | ​ | ​ | 4,924 | ​ | ​ | (34,984) | ​ | ​ | (2,559) | ​ | ​ | (32,425) |
| Net interest income after provision for loan losses | ​ | $ | 21,482 | ​ | $ | 19,640 | ​ | $ | 1,842 | ​ | $ | 24,680 | ​ | $ | 52,032 | ​ | $ | (27,352) |
| Non-interest income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loan acquisitions | ​ | $ | 8,643 | ​ | $ | 1,329 | ​ | $ | 7,314 | ​ | $ | 7,385 | ​ | $ | 7,090 | ​ | $ | 295 |
| SBC originations | ​ | ​ | 10,066 | ​ | ​ | 5,806 | ​ | ​ | 4,260 | ​ | ​ | 16,393 | ​ | ​ | 15,052 | ​ | ​ | 1,341 |
| SBA originations, acquisitions and servicing | ​ | ​ | 12,020 | ​ | ​ | 5,513 | ​ | ​ | 6,507 | ​ | ​ | 49,269 | ​ | ​ | 15,861 | ​ | ​ | 33,408 |
| Residential mortgage banking | ​ | ​ | 77,178 | ​ | ​ | 27,292 | ​ | ​ | 49,886 | ​ | ​ | 178,190 | ​ | ​ | 60,366 | ​ | ​ | 117,824 |
| Corporate - other | ​ | ​ | (1) | ​ | ​ | 44 | ​ | ​ | (45) | ​ | ​ | 114 | ​ | ​ | 30,837 | ​ | ​ | (30,723) |
| Total non-interest income | ​ | $ | 107,906 | ​ | $ | 39,984 | ​ | $ | 67,922 | ​ | $ | 251,351 | ​ | $ | 129,206 | ​ | $ | 122,145 |
| Non-interest expense | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loan acquisitions | ​ | $ | (8,554) | ​ | $ | (2,602) | ​ | $ | (5,952) | ​ | $ | (27,926) | ​ | $ | (6,277) | ​ | $ | (21,649) |
| SBC originations | ​ | ​ | (9,339) | ​ | ​ | (6,855) | ​ | ​ | (2,484) | ​ | ​ | (28,357) | ​ | ​ | (19,022) | ​ | ​ | (9,335) |
| SBA originations, acquisitions and servicing | ​ | ​ | (6,344) | ​ | ​ | (6,062) | ​ | ​ | (282) | ​ | ​ | (22,837) | ​ | ​ | (17,854) | ​ | ​ | (4,983) |
| Residential mortgage banking | ​ | ​ | (53,820) | ​ | ​ | (28,116) | ​ | ​ | (25,704) | ​ | ​ | (148,415) | ​ | ​ | (68,842) | ​ | ​ | (79,573) |
| Corporate - other | ​ | ​ | (9,414) | ​ | ​ | (6,207) | ​ | ​ | (3,207) | ​ | ​ | (25,870) | ​ | ​ | (23,727) | ​ | ​ | (2,143) |
| Total non-interest expense | ​ | $ | (87,471) | ​ | $ | (49,842) | ​ | $ | (37,629) | ​ | $ | (253,405) | ​ | $ | (135,722) | ​ | $ | (117,683) |
| Net income (loss) before provision for income taxes | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loan acquisitions | ​ | $ | 8,434 | ​ | $ | 6,437 | ​ | $ | 1,997 | ​ | $ | (10,284) | ​ | $ | 18,420 | ​ | $ | (28,704) |
| SBC originations | ​ | ​ | 12,789 | ​ | ​ | 7,437 | ​ | ​ | 5,352 | ​ | ​ | 3,722 | ​ | ​ | 20,967 | ​ | ​ | (17,245) |
| SBA originations, acquisitions and servicing | ​ | ​ | 7,589 | ​ | ​ | 3,381 | ​ | ​ | 4,208 | ​ | ​ | 27,253 | ​ | ​ | 8,500 | ​ | ​ | 18,753 |
| Residential mortgage banking | ​ | ​ | 23,419 | ​ | ​ | (1,310) | ​ | ​ | 24,729 | ​ | ​ | 28,962 | ​ | ​ | (9,481) | ​ | ​ | 38,443 |
| Corporate - other | ​ | ​ | (10,314) | ​ | ​ | (6,163) | ​ | ​ | (4,151) | ​ | ​ | (27,027) | ​ | ​ | 7,110 | ​ | ​ | (34,137) |
| Total net income (loss) before provision for income taxes | ​ | $ | 41,917 | ​ | $ | 9,782 | ​ | $ | 32,135 | ​ | $ | 22,626 | ​ | $ | 45,516 | ​ | $ | (22,890) |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | 2020 | 2019 | 2020 | 2019 |
| Realized gains (losses) on financial instruments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Realized gains on loans - Freddie Mac | ​ | $ | 1,518 | ​ | $ | 1,954 | ​ | $ | 5,517 | ​ | $ | 3,817 |
| Creation of mortgage servicing rights - Freddie Mac | ​ | ​ | 2,107 | ​ | ​ | 1,798 | ​ | ​ | 7,094 | ​ | ​ | 3,745 |
| Realized gains on loans - SBA | ​ | ​ | 3,448 | ​ | ​ | 2,098 | ​ | ​ | 7,937 | ​ | ​ | 8,148 |
| Creation of mortgage servicing rights - SBA | ​ | ​ | 993 | ​ | ​ | 600 | ​ | ​ | 2,328 | ​ | ​ | 2,481 |
| Realized gain (loss) on derivatives, at fair value | ​ | ​ | (1,996) | ​ | ​ | 132 | ​ | ​ | (2,700) | ​ | ​ | 1,048 |
| Realized gain (loss) on mortgage backed securities, at fair value | ​ | ​ | 471 | ​ | ​ | 1,112 | ​ | ​ | 2,060 | ​ | ​ | 2,349 |
| Net realized gains (losses) - all other | ​ | ​ | 966 | ​ | ​ | (317) | ​ | ​ | (118) | ​ | ​ | (674) |
| Net realized gain on financial instruments | ​ | $ | 7,507 | ​ | $ | 7,377 | ​ | $ | 22,118 | ​ | $ | 20,914 |
| Unrealized gains (losses) on financial instruments | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Unrealized gain (loss) on loans - Freddie Mac | ​ | $ | (40) | ​ | $ | (64) | ​ | $ | (18) | ​ | $ | 234 |
| Unrealized gain (loss) on loans - SBA | ​ | ​ | 2,353 | ​ | ​ | 772 | ​ | ​ | 1,302 | ​ | ​ | 267 |
| Unrealized gain (loss) on residential mortgage servicing rights, at fair value | ​ | (4,688) | ​ | (7,582) | ​ | (33,168) | ​ | (21,050) |
| Unrealized gain (loss) on derivatives, at fair value | ​ | ​ | 648 | ​ | ​ | (701) | ​ | ​ | (4,415) | ​ | ​ | (2,827) |
| Unrealized gain (loss) on mortgage backed securities, at fair value | ​ | ​ | 3,708 | ​ | ​ | (245) | ​ | ​ | (8,314) | ​ | ​ | 1,466 |
| Net unrealized gains (losses) - all other | ​ | ​ | 1,439 | ​ | ​ | (61) | ​ | ​ | 851 | ​ | ​ | 111 |
| Net unrealized gain (loss) on financial instruments | ​ | $ | 3,420 | ​ | $ | (7,881) | ​ | $ | (43,762) | ​ | $ | (21,799) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | ​ | 2020 | ​ | 2019 | ​ | $ Change | ​ | 2020 | ​ | 2019 | ​ | $ Change |
| Interest income | ​ | $ | 14,532 | ​ | $ | 18,880 | ​ | $ | (4,348) | ​ | $ | 45,993 | ​ | $ | 47,761 | ​ | $ | (1,768) |
| Interest expense | ​ | ​ | (11,011) | ​ | (11,076) | ​ | 65 | ​ | ​ | (32,871) | ​ | (29,383) | ​ | (3,488) |
| Net interest income before provision for loan losses | ​ | $ | 3,521 | ​ | $ | 7,804 | ​ | $ | (4,283) | ​ | $ | 13,122 | ​ | $ | 18,378 | ​ | $ | (5,256) |
| Provision for loan losses | ​ | ​ | 4,824 | ​ | ​ | (94) | ​ | ​ | 4,918 | ​ | ​ | (2,865) | ​ | ​ | (771) | ​ | ​ | (2,094) |
| Net interest income after provision for loan losses | ​ | $ | 8,345 | ​ | $ | 7,710 | ​ | $ | 635 | ​ | $ | 10,257 | ​ | $ | 17,607 | ​ | $ | (7,350) |
| Non-interest income | ​ | ​ | 8,643 | ​ | ​ | 1,329 | ​ | ​ | 7,314 | ​ | ​ | 7,385 | ​ | ​ | 7,090 | ​ | ​ | 295 |
| Non-interest expense | ​ | ​ | (8,554) | ​ | ​ | (2,602) | ​ | ​ | (5,952) | ​ | ​ | (27,926) | ​ | ​ | (6,277) | ​ | ​ | (21,649) |
| Total non-interest income (expense) | ​ | $ | 89 | ​ | $ | (1,273) | ​ | $ | 1,362 | ​ | $ | (20,541) | ​ | $ | 813 | ​ | $ | (21,354) |
| Net income (loss) before provision for income taxes | ​ | $ | 8,434 | ​ | $ | 6,437 | ​ | $ | 1,997 | ​ | $ | (10,284) | ​ | $ | 18,420 | ​ | $ | (28,704) |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | ​ | 2020 | ​ | 2019 | ​ | $ Change | ​ | 2020 | ​ | 2019 | ​ | $ Change |
| Interest income | ​ | $ | 35,287 | ​ | $ | 32,354 | ​ | $ | 2,933 | ​ | $ | 112,052 | ​ | $ | 91,182 | ​ | $ | 20,870 |
| Interest expense | ​ | ​ | (23,342) | ​ | (23,835) | ​ | 493 | ​ | ​ | (72,476) | ​ | (65,903) | ​ | (6,573) |
| Net interest income before provision for loan losses | ​ | $ | 11,945 | ​ | $ | 8,519 | ​ | $ | 3,426 | ​ | $ | 39,576 | ​ | $ | 25,279 | ​ | $ | 14,297 |
| Recoveries of (provision for) loan losses | ​ | ​ | 117 | ​ | ​ | (33) | ​ | ​ | 150 | ​ | ​ | (23,890) | ​ | ​ | (342) | ​ | ​ | (23,548) |
| Net interest income after provision for loan losses | ​ | $ | 12,062 | ​ | $ | 8,486 | ​ | $ | 3,576 | ​ | $ | 15,686 | ​ | $ | 24,937 | ​ | $ | (9,251) |
| Non-interest income (loss) | ​ | ​ | 10,066 | ​ | ​ | 5,806 | ​ | ​ | 4,260 | ​ | ​ | 16,393 | ​ | ​ | 15,052 | ​ | ​ | 1,341 |
| Non-interest expense | ​ | ​ | (9,339) | ​ | ​ | (6,855) | ​ | ​ | (2,484) | ​ | ​ | (28,357) | ​ | ​ | (19,022) | ​ | ​ | (9,335) |
| Total non-interest income (expense) | ​ | $ | 727 | ​ | $ | (1,049) | ​ | $ | 1,776 | ​ | $ | (11,964) | ​ | $ | (3,970) | ​ | $ | (7,994) |
| Net income (loss) before provision for income taxes | ​ | $ | 12,789 | ​ | $ | 7,437 | ​ | $ | 5,352 | ​ | $ | 3,722 | ​ | $ | 20,967 | ​ | $ | (17,245) |

​Interest income of $112.1 million for the nine months ended September 30, 2020 in our SBC originations segment represented an increase of $20.9 million from the prior year period primarily reflecting an increase in SBC loan originations, resulting in higher average loan balances. Originated SBC loans contributed $44.2 million in interest income during the nine months ended September 30, 2020, representing an $8.4 million increase from the nine months ended September 30, 2019. Originated transitional loans contributed $66.0 million in interest income during the nine months ended September 30, 2020, representing a $14.6 million increase from the nine months ended September 30, 2019. ​Interest expense​Interest expense of $23.3 million in our SBC originations segment was relatively unchanged from the prior year quarter ended September 30, 2019.​Interest expense of $72.5 million in our SBC originations segment represented an increase of $6.6 million from the prior year period ended September 30, 2019, primarily reflecting an increase in borrowing activities under our shorter-term secured borrowings and securitized debt obligations.​Provision for (Recoveries of) loan losses ​Recoveries of loan losses of $0.1 million in our SBC originations segment was relatively unchanged from the prior year quarter ended September 30, 2019. ​Provision for loan losses of $23.9 million for the nine months ended September 30, 2020 in our SBC originations segment represented an increase of $23.5 million from the prior year period. The increase in the provision for loan losses during the nine months ended September 30, 2020 was primarily the result of the implementation of the CECL impairment standard and the adverse change in the economic outlook due to the COVID-19 pandemic.​Non-interest income ​Non-interest income of $10.1 million for the quarter ended September 30, 2020 in our SBC originations segment represented an increase of $4.3 million from the prior quarter ended September 30, 2019 primarily reflecting an increase in the fair value of owned Freddie Mac bonds in the quarter.​Non-interest income of $16.4 million for the nine months ended September 30, 2020 in our SBC originations segment represented an increase of $1.3 million from the prior year period ended September 30, 2019 reflecting an increase in realized gains on sales of Freddie Mac loans (including creation of servicing rights) of $5.0 million. ​Non-interest expense​Non-interest expense of $9.3 million for the quarter ended September 30, 2020 in our SBC originations segment represented an increase of $2.5 million from the prior year quarter ended September 30, 2019, primarily reflecting an increase in employee compensation expense of $2.6 million, and an increase in servicing expense of $0.8 million.​Non-interest expense of $28.4 million for the nine months ended September 30, 2020 in our SBC originations segment represented an increase of $9.3 million from the prior year period ended September 30, 2019, primarily reflecting an increase in general operating expenses of $2.1 million, an increase in employee compensation expense of $6.0 million, and an increase in servicing expense of $1.5 million.​84
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | ​ | 2020 | ​ | 2019 | ​ | $ Change | ​ | 2020 | ​ | 2019 | ​ | $ Change |
| Interest income | ​ | $ | 9,037 | ​ | $ | 7,235 | ​ | $ | 1,802 | ​ | $ | 30,316 | ​ | $ | 23,468 | ​ | $ | 6,848 |
| Interest expense | ​ | ​ | (6,414) | ​ | (2,739) | ​ | (3,675) | ​ | ​ | (21,766) | ​ | (11,529) | ​ | (10,237) |
| Net interest income before provision for loan losses | ​ | $ | 2,623 | ​ | $ | 4,496 | ​ | $ | (1,873) | ​ | $ | 8,550 | ​ | $ | 11,939 | ​ | $ | (3,389) |
| Provision for loan losses | ​ | ​ | (710) | ​ | ​ | (566) | ​ | ​ | (144) | ​ | ​ | (7,729) | ​ | ​ | (1,446) | ​ | ​ | (6,283) |
| Net interest income after provision for loan losses | ​ | $ | 1,913 | ​ | $ | 3,930 | ​ | $ | (2,017) | ​ | $ | 821 | ​ | $ | 10,493 | ​ | $ | (9,672) |
| Non-interest income | ​ | ​ | 12,020 | ​ | ​ | 5,513 | ​ | ​ | 6,507 | ​ | ​ | 49,269 | ​ | ​ | 15,861 | ​ | ​ | 33,408 |
| Non-interest expense | ​ | ​ | (6,344) | ​ | ​ | (6,062) | ​ | ​ | (282) | ​ | ​ | (22,837) | ​ | ​ | (17,854) | ​ | ​ | (4,983) |
| Total non-interest income (expense) | ​ | $ | 5,676 | ​ | $ | (549) | ​ | $ | 6,225 | ​ | $ | 26,432 | ​ | $ | (1,993) | ​ | $ | 28,425 |
| Net income (loss) before provision for income taxes | ​ | $ | 7,589 | ​ | $ | 3,381 | ​ | $ | 4,208 | ​ | $ | 27,253 | ​ | $ | 8,500 | ​ | $ | 18,753 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (In Thousands) | ​ | 2020 | ​ | 2019 | ​ | $ Change | ​ | 2020 | ​ | 2019 | ​ | $ Change |
| Interest income | ​ | $ | 2,218 | ​ | $ | 1,254 | ​ | $ | 964 | ​ | $ | 5,465 | ​ | $ | 3,099 | ​ | $ | 2,366 |
| Interest expense | ​ | ​ | (2,157) | ​ | (1,740) | ​ | (417) | ​ | ​ | (5,778) | ​ | (4,104) | ​ | (1,674) |
| Net interest income before provision for loan losses | ​ | $ | 61 | ​ | $ | (486) | ​ | $ | 547 | ​ | $ | (313) | ​ | $ | (1,005) | ​ | $ | 692 |
| Provision for loan losses | ​ | ​ | — | ​ | ​ | — | ​ | ​ | - | ​ | ​ | (500) | ​ | ​ | — | ​ | ​ | (500) |
| Net interest income after provision for loan losses | ​ | $ | 61 | ​ | $ | (486) | ​ | $ | 547 | ​ | $ | (813) | ​ | $ | (1,005) | ​ | $ | 192 |
| Non-interest income | ​ | ​ | 77,178 | ​ | ​ | 27,292 | ​ | ​ | 49,886 | ​ | ​ | 178,190 | ​ | ​ | 60,366 | ​ | ​ | 117,824 |
| Non-interest expense | ​ | ​ | (53,820) | ​ | ​ | (28,116) | ​ | ​ | (25,704) | ​ | ​ | (148,415) | ​ | ​ | (68,842) | ​ | ​ | (79,573) |
| Total non-interest income (expense) | ​ | $ | 23,358 | ​ | $ | (824) | ​ | $ | 24,182 | ​ | $ | 29,775 | ​ | $ | (8,476) | ​ | $ | 38,251 |
| Net income (loss) before provision for income taxes | ​ | $ | 23,419 | ​ | $ | (1,310) | ​ | $ | 24,729 | ​ | $ | 28,962 | ​ | $ | (9,481) | ​ | $ | 38,443 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

Non-interest income ​Non-interest income of $77.2 million in our residential mortgage banking segment for the quarter ended September 30, 2020 represented an increase of $49.9 million from the prior year quarter ended September 30, 2019, primarily reflecting an increase in revenue on residential mortgage banking activities of $46.5 million as a result of an increase in loan originations in the current year and by a decrease in unrealized losses on residential MSRs of $4.7 million during the quarter ended September 30, 2020 compared to $7.6 million of unrealized losses during the quarter ended September 30, 2019. ​Non-interest income of $178.2 million in our residential mortgage banking segment for the nine months ended September 30, 2020 represented an increase of $117.8 million from the prior year period ended September 30, 2019, primarily reflecting an increase in revenue on residential mortgage banking activities of $128.1 million as a result of an increase in loan originations in the current year. This was offset by unrealized losses on residential MSRs of $33.3 million during the nine months ended September 30, 2020 compared to $21.1 million of unrealized losses during the nine months ended September 30, 2019.​Non-interest expense ​Non-interest expense of $53.8 million in our residential mortgage banking segment for the quarter ended September 30, 2020 represented an increase of $25.7 million from the prior year quarter ended September 30, 2019, primarily reflecting an increase in variable expenses on residential mortgage banking activities of $13.6 million, an increase in employee compensation of $8.2 million, and an increase in loan servicing expense of $2.5 million.​Non-interest expense of $148.4 million in our residential mortgage banking segment for the nine months ended September 30, 2020 represented an increase of $79.6 million from the prior year period ended September 30, 2019, primarily reflecting increases in variable expenses on residential mortgage banking activities of $47.5 million, employee compensation of $22.6 million and loan servicing expense of $8.2 million.​Corporate- Other​Non-interest income​Non-interest income of $30.8 million in our Corporate – Other segment for the nine months ended September 30, 2019 represented a bargain purchase gain associated with the ORM merger. There were no significant changes for the three months ended September 30, 2020 compared to the prior year quarter.​Non-interest expense​Non-interest expense of $9.4 million for the quarter ended September 30, 2020 increased $3.2 million from the prior year quarter ended September 30, 2019, primarily due to an increase in professional fees of $1.3 million and incentive fees due to our Manager of $1.1 million.​Non-interest expense of $25.9 million for the nine months ended September 30, 2020 increased $2.1 million from the prior year period ended September 30, 2019, primarily due to an increase in incentive fees and management fees due to our Manager of $5.6 million and an increase in professional fees of $2.1 million, partially offset by due to an increase in merger related expense of $6.0 million. ​Non-GAAP financial measures​We believe that providing investors with core earnings, a non-U.S. GAAP financial measure, in addition to the related U.S. GAAP measures, gives investors greater transparency into the information used by management in our financial and operational decision-making. However, because core earnings is an incomplete measure of our financial performance and involves differences from net income computed in accordance with U.S. GAAP, it should be considered along with, but not as an alternative to, our net income as a measure of our financial performance. In addition, because not all companies use identical calculations, our presentation of core earnings may not be comparable to other similarly-titled measures of other companies.​87
| i) | any unrealized gains or losses on certain MBS |
| ii) | any realized gains or losses on sales of certain MBS |
| iii) | any unrealized gains or losses on Residential MSRs |
| iv) | one-time non-recurring gains or losses, such as gains or losses on discontinued operations, bargain purchase gains, or merger related expenses |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | Three Months Ended September 30, | ​ | ​ | ​ | ​ | Nine Months Ended September 30, | ​ | ​ | ​ |
| (in thousands) | 2020 | ​ | 2019 | ​ | Change | ​ | 2020 | ​ | 2019 | ​ | Change |
| Net Income | $ | 35,363 | ​ | $ | 12,427 | ​ | $ | 22,936 | ​ | $ | 18,510 | ​ | $ | 54,120 | ​ | $ | (35,610) |
| Reconciling items: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Unrealized (gain) loss on mortgage servicing rights | ​ | 4,688 | ​ | ​ | 7,582 | ​ | ​ | (2,894) | ​ | ​ | 33,169 | ​ | ​ | 21,049 | ​ | ​ | 12,120 |
| Impact of the adoption of ASU 2016-13 on accrual loans | ​ | (7,248) | ​ | ​ | — | ​ | ​ | (7,248) | ​ | ​ | 23,114 | ​ | ​ | — | ​ | ​ | 23,114 |
| Non-recurring REO impairment | ​ | (114) | ​ | ​ | — | ​ | ​ | (114) | ​ | ​ | 2,961 | ​ | ​ | — | ​ | ​ | 2,961 |
| Merger transaction costs and other non-recurring expenses | ​ | 998 | ​ | ​ | 51 | ​ | ​ | 947 | ​ | ​ | 3,220 | ​ | ​ | 6,914 | ​ | ​ | (3,694) |
| Bargain purchase gain | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (30,728) | ​ | ​ | 30,728 |
| Unrealized (gain) loss on mortgage-backed securities | ​ | — | ​ | ​ | 85 | ​ | ​ | (85) | ​ | ​ | 185 | ​ | ​ | 205 | ​ | ​ | (20) |
| Unrealized loss on de-designated cash flow hedges | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,118 | ​ | ​ | — | ​ | ​ | 2,118 |
| Total reconciling items | $ | (1,676) | ​ | $ | 7,718 | ​ | $ | (9,394) | ​ | $ | 64,767 | ​ | $ | (2,560) | ​ | $ | 67,327 |
| Income tax adjustments | ​ | (1,561) | ​ | ​ | (1,896) | ​ | ​ | 335 | ​ | ​ | (10,703) | ​ | ​ | (5,263) | ​ | ​ | (5,440) |
| Core earnings | $ | 32,126 | ​ | $ | 18,249 | ​ | $ | 13,877 | ​ | $ | 72,574 | ​ | $ | 46,297 | ​ | $ | 26,277 |
| Less: Core earnings attributable to non-controlling interests | ​ | (731) | ​ | ​ | (474) | ​ | ​ | (257) | ​ | ​ | (2,160) | ​ | ​ | (1,352) | ​ | ​ | (808) |
| Less: Income attributable to participating shares | ​ | (339) | ​ | ​ | (79) | ​ | ​ | (260) | ​ | ​ | (1,087) | ​ | ​ | (240) | ​ | ​ | (847) |
| Core earnings attributable to common stockholders | $ | 31,056 | ​ | $ | 17,696 | ​ | $ | 13,360 | ​ | $ | 69,814 | ​ | $ | 44,705 | ​ | $ | 25,109 |
| Core Earnings per common share - basic and diluted | $ | 0.57 | ​ | $ | 0.40 | ​ | $ | 0.17 | ​ | $ | 1.30 | ​ | $ | 1.10 | ​ | $ | 0.20 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

Three Months Ended September 30, 2020 Compared to the Three Months Ended September 30, 2019​Consolidated net income increased by $22.9 million, from $12.4 million during the three months ended September 30, 2019 to $35.4 million during the three months ended September 30, 2020. Core earnings increased by $13.9 million, from $18.2 million during the three months ended September 30, 2019 to $32.1 million during the three months ended September 30, 2020.​The increase in consolidated net income and core earnings was primarily the result of an increase in residential mortgage banking activities net of variable costs of $32.9 million. ​Nine Months Ended September 30, 2020 Compared to the Nine Months Ended September 30, 2019​Consolidated net income decreased by $35.6 million, from $54.1 million during the nine months ended September 30, 2019 to $18.5 million during the nine months ended September 30, 2020. Core earnings increased by $26.3 million, from $46.3 million during the nine months ended September 30, 2019 to $72.6 million during the nine months ended September 30, 2020.​The decrease in consolidated net income was the result of a number of factors, including a $35.4 million reduction due to the adoption of CECL during the three months ended March 31, 2020. In addition, unrealized losses on MSRs of $16.4 million and $3.0 million of non-recurring REO impairment experienced in the first quarter of 2020. In addition, we experienced a bargain purchase gain of $30.7 million, offset by merger related expenses of $5.5 million, as a result of the ORM merger transaction in the first quarter of 2019. This was partially offset by the $25.8 million of revenue recognized on loans originated under the SBA’s PPP program. Core earnings increased by $26.3 million primarily due to $25.8 million of revenue recognized on loans originated under the SBA’s PPP program and revenue growth in our residential mortgage banking segment.​COVID-19 Impact on Operating Results​The significant and wide-ranging response of international, federal, state and local public health and governmental authorities to the COVID-19 pandemic in regions across the United States and the world, including the imposition of quarantines, “stay-at-home” orders and similar mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations, and the volatile economic, business and financial market conditions resulting therefrom, are expected to negatively impact our business, financial performance and operating results in later periods of 2020. Although we are uncertain of the potential full magnitude or duration of the business and economic impacts from the unprecedented public health efforts to contain and combat the spread of COVID-19, we will likely experience material deterioration in our financial performance and operating results, revenues, cash flow and/or profitability in one or more of the remaining periods in 2020 compared to the corresponding prior-year periods and compared to our expectations at the beginning of our 2020 fiscal year. Further discussion of the potential impacts on our business from the COVID-19 pandemic is provided in the section entitled “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q.​Incentive distribution payable to our Manager​Under the partnership agreement of our operating partnership, our Manager, the holder of the Class A special unit in our operating partnership, is entitled to receive an incentive distribution, distributed quarterly in arrears in an amount not less than zero equal to the difference between (i) the product of (A) 15% and (B) the difference between (x) core earnings (as described below) of our operating partnership, on a rolling four-quarter basis and before the incentive distribution for the current quarter, and (y) the product of (1) the weighted average of the issue price per share of common stock or operating partnership unit (“OP unit”) (without double counting) in all of our offerings multiplied by the weighted average number of shares of common stock outstanding (including any restricted shares of common stock and any other shares of common stock underlying awards granted under our 2012 equity incentive plan) and OP units (without double counting) in such quarter and (2) 8%, and (ii) the sum of any incentive distribution paid to our Manager with respect to the first three quarters of such previous four quarters; provided, however, that no incentive distribution is payable with respect to any calendar quarter unless cumulative core earnings is greater than zero for the most recently completed 12 calendar quarters, or the number of completed calendar quarters since the closing date of the merger with ZAIS Financial Corp. (“ZAIS Financial merger”), whichever is less.89
​For purposes of calculating the incentive distribution, the shares of common stock and OP units issued as of the closing of the ZAIS Financial merger in connection with the merger agreement were deemed to be issued at the per share price equal to (i) the sum of (A) the weighted average of the issue price per share of common stock or OP units (without double counting) issued prior to the closing of the ZAIS Financial merger multiplied by the number of shares of Sutherland common stock outstanding and Sutherland OP units (without double counting) issued prior to the closing of the merger plus (B) the amount by which the net book value of our Company as of the closing of the merger (after giving effect to the closing of the merger agreement) exceeded the amount of the net book value of Sutherland immediately preceding the closing of the merger, divided by (ii) all of the shares of our common stock and OP units issued and outstanding as of the closing of the merger (including the date of the closing of the mergers).​The incentive distribution shall be calculated within 30 days after the end of each quarter and such calculation shall promptly be delivered to our Company. We are obligated to pay the incentive distribution 50% in cash and 50% in either common stock or OP units, as determined in our discretion, within five business days after delivery to our Company of the written statement from the holder of the Class A special unit setting forth the computation of the incentive distribution for such quarter. Subject to certain exceptions, our Manager may not sell or otherwise dispose of any portion of the incentive distribution issued to it in common stock or OP units until after the three year anniversary of the date that such shares of common stock or OP units were issued to our Manager. The price of shares of our common stock for purposes of determining the number of shares payable as part of the incentive distribution is the closing price of such shares on the last trading day prior to the approval by our board of the incentive distribution.​For purposes of determining the incentive distribution payable to our Manager, core earnings is defined under the partnership agreement of our operating partnership in a manner that is similar to the definition of core earnings described above under "Non-GAAP Financial Measures" but with the following additional adjustments which (i) further exclude: (a) the incentive distribution, (b) non-cash equity compensation expense, if any, (c) unrealized gains or losses on SBC loans (not just MBS and MSRs), (d) depreciation and amortization (to the extent we foreclose on any property), and (e) one-time events pursuant to changes in U.S. GAAP and certain other non-cash charges after discussions between our Manager and our independent directors and after approval by a majority of the independent directors and (ii) add back any realized gains or losses on the sales of MBS and on discontinued operations which were excluded from the definition of core earnings described above under "Non-GAAP Financial Measures". ​Liquidity and Capital Resources ​Liquidity is a measure of our ability to turn non-cash assets into cash and to meet potential cash requirements. We use significant cash to purchase SBC loans and other target assets, originate new SBC loans, pay dividends, repay principal and interest on our borrowings, fund our operations and meet other general business needs. Our primary sources of liquidity will include our existing cash balances, borrowings, including securitizations, re-securitizations, repurchase agreements, warehouse facilities, bank credit facilities (including term loans and revolving facilities), the net proceeds of this and future offerings of equity and debt securities, including our Senior Secured Notes, Corporate debt, and Convertible Notes, and net cash provided by operating activities.​ We are continuing to monitor the COVID-19 pandemic and its impact on us, the borrowers underlying our real estate-related assets, the tenants in the properties we own, our financing sources, and the economy as a whole. Because the severity, magnitude and duration of the COVID-19 pandemic and its economic consequences are uncertain, rapidly changing and difficult to predict, the pandemic’s impact on our operations and liquidity remains uncertain and difficult to predict. Further discussion of the potential impacts on us from the COVID-19 pandemic is provided in the section entitled “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q.​​90
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | Three Months Ended September 30, | ​ | Nine Months Ended September 30, |
| (in thousands) | ​ | 2020 | ​ | 2019 | ​ | 2020 | ​ | 2019 |
| Cash flows provided by (used in) operating activities | ​ | $ | (48,289) | ​ | $ | (7,063) | ​ | $ | (261) | ​ | $ | (64,870) |
| Cash flows provided by (used in) investing activities | ​ | $ | 129,694 | ​ | $ | (245,446) | ​ | $ | (7,688) | ​ | $ | (920,245) |
| Cash flows provided by (used in) financing activities | ​ | $ | (207,044) | ​ | $ | 255,607 | ​ | $ | 103,715 | ​ | $ | 995,283 |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Net increase (decrease) in cash and cash equivalents and restricted cash | ​ | $ | (125,639) | ​ | $ | 3,098 | ​ | $ | 95,766 | ​ | $ | 10,168 |
| ● | Net cash used in operating activities of $48.3 million for the current quarter related primarily to: |
| - | Cash outflows on originations of new loans held for sale of $1,392.9 million and gains on sales of residential mortgages held for sale of $61.1 million. These reductions in cash were partially offset by inflows relating to repayments and sales of loans, held for sale at fair value of $1,415.2 million. |
| ● | Net cash provided by investing activities of $129.7 million for the current quarter related primarily to: |
| - | Cash inflows of $302.2 million relating to outflows repayments sales of loans, net, partially offset by purchases and originations of loans, net of $149.0 million and investment in unconsolidated joint ventures of $14.6 million. |
| ● | Net cash used in financing activities of $207.0 million for the current quarter related primarily to: |
| - | Net repayment of secured borrowings of $77.2 million, payment of securitized debt obligations of $84.2 million, dividend payments of $14.5 million, and repurchase of the Company’s stock of $9.2 million. |
| ● | Net cash used in operating activities of $7.1 million for the current quarter related primarily to: |
| - | Cash inflows from proceeds on sales and pay-downs on loans, held-for-sale, at fair value of $802.4 million, offset by cash outflows on originations and purchases of new loans of $805.1 million. |
| ● | Net cash used in investing activities of $245.4 million for the current quarter related primarily to: |
| - | Cash outflows of $418.7 million relating to originations and purchases of loans, held at fair value and held-for-investment loans, offset by cash inflows relating to repayments of loans, held at fair value and held-for-investment of $170.6 million and sales and repayments of MBS of $4.3 million. |
| ● | Net cash provided by financing activities of $255.6 million for the current quarter related primarily to: |
| - | Net proceeds from secured borrowings of $327.0 million, proceeds from the issuance of corporate debt of $57.5 million, offset by net repayments of securitized debt of $103.7 million. |
| ● | Net cash used in operating activities of $0.3 million for the current quarter related primarily to: |

| - | Cash outflows on originations of new loans held for sale of $3,675.8 million and gains on sales of residential mortgages held for sale of $143.7 million. These reductions in cash were partially offset by inflows relating to repayments and sales of loans, held for sale at fair value of $3,680.5 million. |
| ● | Net cash used in investing activities of $7.7 million for the current quarter related primarily to: |
| - | Cash outflows of $677.0 million relating to originations and purchases of loans, held at fair value and held-for-investment loans, offset by cash inflows relating to repayments of loans, held at fair value and held-for-investment of $673.9 million, sales and repayments of MBS of $10.5 million, and investment in unconsolidated joint ventures of $16.3 million. |
| ● | Net cash provided by financing activities of $103.7 million for the current quarter related primarily to: |
| - | Net proceeds from securitized debt of $242.9 million, partially offset by net repayments of secured borrowings of $11.4 million and repayments of guaranteed loan financing of $78.8 million. |
| ● | Net cash used in operating activities of $64.9 million related primarily to: |
| - | Cash outflows on originations and purchases of new loans, held-for-sale, at fair value of $1,889.8 million and other general changes to operating assets and liabilities of $7.8 million, partially offset by cash inflows on sales and pay-downs of loans of $1,859.5 million. |
| ● | Net cash used in investing activities of $920.2 million related primarily to: |
| - | Cash outflows of $1,488.1 million relating to originations and purchases of loans, held-for-investment, purchases of MBS of $9.6 million, partially offset by cash inflows relating to repayments of loans, held at fair value and held-for-investment of $550.2 million and sales and repayments of MBS of $9.7 million. |
| ● | Net cash provided by financing activities of $995.3 million related primarily to: |
| - | Net proceeds from securitized debt obligations of $564.1 million and secured borrowings of $469.4 million. |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Quarter End | ​ | Quarter End Balance | ​ | Average Balance in Quarter | ​ | Highest Month End Balance in Quarter |
| Q3 2017 | ​ | $ | 320,371 | ​ | $ | 420,270 | ​ | $ | 433,183 |
| Q4 2017 | ​ | ​ | 382,612 | ​ | ​ | 351,492 | ​ | ​ | 382,612 |
| Q1 2018 | ​ | ​ | 446,663 | ​ | ​ | 414,638 | ​ | ​ | 446,663 |
| Q2 2018 | ​ | ​ | 443,263 | ​ | ​ | 444,963 | ​ | ​ | 447,751 |
| Q3 2018 | ​ | ​ | 610,251 | ​ | ​ | 526,757 | ​ | ​ | 610,251 |
| Q4 2018 | ​ | ​ | 635,233 | ​ | ​ | 622,742 | ​ | ​ | 635,233 |
| Q1 2019 | ​ | ​ | 597,963 | ​ | ​ | 604,107 | ​ | ​ | 635,233 |
| Q2 2019 | ​ | ​ | 612,383 | ​ | ​ | 605,173 | ​ | ​ | 612,383 |
| Q3 2019 | ​ | ​ | 876,163 | ​ | ​ | 744,273 | ​ | ​ | 876,163 |
| Q4 2019 | ​ | ​ | 809,189 | ​ | ​ | 842,676 | ​ | ​ | 876,163 |
| Q1 2020 | ​ | ​ | 1,159,357 | ​ | ​ | 984,273 | ​ | ​ | 1,159,357 |
| Q2 2020 | ​ | ​ | 714,162 | ​ | ​ | 936,760 | ​ | ​ | 1,057,522 |
| Q3 2020 | ​ | ​ | 624,549 | ​ | ​ | 669,356 | ​ | ​ | 831,200 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Carrying Value at |
| Lender | Asset Class | Current Maturity | Pricing | Facility Size | Pledged Assets Carrying Value | September 30, 2020 | December 31, 2019 |
| JPMorgan | Acquired loans, SBA loans | June 2021 | ​ | 1M L + 1.75 to 2.75% | ​ | $ | 250,000 | ​ | $ | 44,840 | ​ | $ | 30,742 | ​ | $ | 88,972 |
| Keybank | Freddie Mac loans | February 2021 | ​ | 1M L + 1.30% | ​ | ​ | 100,000 | ​ | ​ | 20,486 | ​ | ​ | 20,242 | ​ | ​ | 21,513 |
| East West Bank | SBA loans | October 2022 | ​ | Prime - 0.821 to + 0.29% | ​ | ​ | 50,000 | ​ | ​ | 40,550 | ​ | ​ | 33,184 | ​ | ​ | 13,294 |
| Credit Suisse | Acquired loans (non USD) | December 2021 | ​ | Euribor + 2.50% | ​ | ​ | 234,420 | (a)​ | ​ | 53,021 | ​ | ​ | 32,267 | ​ | ​ | 37,646 |
| FCB | Acquired loans | June 2021 | ​ | 2.75% | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,354 |
| Comerica Bank | Residential loans | March 2021 | ​ | 1M L + 1.75% | ​ | ​ | 125,000 | ​ | ​ | 90,515 | ​ | ​ | 83,704 | ​ | ​ | 56,822 |
| TBK Bank | Residential loans | October 2021 | ​ | Variable Pricing | ​ | ​ | 150,000 | ​ | ​ | 123,980 | ​ | ​ | 118,581 | ​ | ​ | 52,151 |
| Origin Bank | Residential loans | June 2021 | ​ | Variable Pricing | ​ | ​ | 60,000 | ​ | ​ | 25,093 | ​ | ​ | 23,471 | ​ | ​ | 15,343 |
| Associated Bank | Residential loans | November 2020 | ​ | 1M L + 1.50% | ​ | ​ | 60,000 | ​ | ​ | 47,918 | ​ | ​ | 44,489 | ​ | ​ | 5,823 |
| East West Bank | Residential MSRs | September 2023 | ​ | 1M L + 2.50% | ​ | ​ | 50,000 | ​ | ​ | 49,140 | ​ | ​ | 37,700 | ​ | ​ | 39,900 |
| Credit Suisse | Purchased future receivables, PPP loans | June 2021 | ​ | 1M L + 4.50% | ​ | ​ | 150,000 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 34,900 |
| Rabobank | Real estate | January 2021 | ​ | 4.22% | ​ | ​ | 14,500 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 12,485 |
| Federal Reserve Bank of Minneapolis | PPP loans | April 2022 | ​ | 0.35% | ​ | ​ | 105,222 | ​ | ​ | 105,089 | ​ | ​ | 105,005 | ​ | ​ | — |
| Bank of the Sierra | Real estate | August 2050 | ​ | 3.25% | ​ | ​ | 22,750 | ​ | ​ | 37,562 | ​ | ​ | 22,687 | ​ | ​ | — |
| Total borrowings under credit facilities (b) | ​ | ​ | ​ | $ | 1,371,892 | ​ | $ | 638,194 | ​ | $ | 552,072 | ​ | $ | 380,203 |
| Citibank | Fixed rate, Transitional, Acquired loans | October 2021 | ​ | 1M L + 1.875 to 2.125% | ​ | $ | 500,000 | ​ | $ | 114,196 | ​ | $ | 103,307 | ​ | $ | 124,718 |
| Deutsche Bank | Fixed rate, Transitional loans | November 2021 | ​ | 3M L + 2.00 to 2.40% | ​ | ​ | 350,000 | ​ | ​ | 232,524 | ​ | ​ | 161,100 | ​ | ​ | 141,356 |
| JPMorgan | Transitional loans | December 2020 | ​ | 1M L + 2.25 to 4.00% | ​ | ​ | 400,000 | ​ | ​ | 265,599 | ​ | ​ | 175,764 | ​ | ​ | 250,466 |
| JPMorgan | MBS | March 2021 | ​ | 1.54 to 4.75% | ​ | ​ | 70,875 | ​ | ​ | 115,128 | ​ | ​ | 70,875 | ​ | ​ | 93,715 |
| Deutsche Bank | MBS | January 2021 | ​ | 3.54% | ​ | ​ | 16,354 | ​ | ​ | 20,189 | ​ | ​ | 16,354 | ​ | ​ | 44,730 |
| Citibank | MBS | November 2020 | ​ | 3.25 to 3.76% | ​ | ​ | 58,422 | ​ | ​ | 114,749 | ​ | ​ | 58,422 | ​ | ​ | 56,189 |
| Bank of America | MBS | Matured | ​ | 1.31 to 1.61% | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 38,954 |
| RBC | MBS | February 2021 | ​ | 3.05 to 4.43% | ​ | ​ | 38,727 | ​ | ​ | 61,595 | ​ | ​ | 38,727 | ​ | ​ | 59,061 |
| Total borrowings under repurchase agreements (c) | ​ | $ | 1,434,378 | ​ | $ | 923,980 | ​ | $ | 624,549 | ​ | $ | 809,189 |
| Total secured borrowings | ​ | $ | 2,806,270 | ​ | $ | 1,562,174 | ​ | $ | 1,176,621 | ​ | $ | 1,189,392 |

As of September 30, 2020, we had $161.1 million outstanding under the DB Loan Repurchase Facility. The DB Loan Repurchase Facility is used to finance SBC loans, and the interest rate is LIBOR plus a spread, which varies depending on the type and age of the loan. The DB Loan Repurchase Facility has been extended through November 2021 and our subsidiaries have an option to extend the DB Loan Repurchase Facility for an additional year, subject to certain conditions. Up to 100% of the then-current unpaid obligations of ReadyCap Commercial, Sutherland Asset I, and Sutherland Warehouse Trust II are fully guaranteed by us.​The eligible assets for the DB Loan Repurchase Facility are loans secured by a first mortgage lien on commercial properties subject to certain eligibility criteria, such as property type, geographical location, LTV ratios, debt yield and debt service coverage ratios. The principal amount paid by the bank for each mortgage loan is based on a percentage of the lesser of the mortgaged property value or the principal balance of such mortgage loan. ReadyCap Commercial, Sutherland Asset I, and Sutherland Warehouse Trust II paid the bank an up-front fee and are also required to pay the bank availability fees, and a minimum utilization fee for the DB Loan Repurchase Facility, as well as certain other administrative costs and expenses. The DB Loan Repurchase Facility also includes financial maintenance covenants, which include (i) an adjusted tangible net worth that does not decline by more than 25% in a quarter, 35% in a year or 50% from the highest adjusted tangible net worth, (ii) a minimum liquidity amount of the greater of (a) $5 million and (b) 3% of the sum of any outstanding recourse indebtedness plus the aggregate repurchase price of the mortgage loans on the Repurchase Agreement, (iii) a debt-to-assets ratio no greater than 80% and (iv) a tangible net worth at least equal to the sum of (a) the product of 1/15 and the amount of all non-recourse indebtedness (excluding the aggregate repurchase price) and other securitization indebtedness and (b) the product of 1/3 and the sum of the aggregate repurchase price and all recourse indebtedness.​JPMorgan loan repurchase facility​Our subsidiaries, ReadyCap Warehouse Financing, LLC (“ReadyCap Warehouse Financing”), Sutherland Warehouse Trust, LLC (“Sutherland Warehouse Trust”) entered into a master repurchase agreement in December 2015, pursuant to which ReadyCap Warehouse Financing, Sutherland Warehouse Trust and Ready Capital Mortgage Depositor II, LLC (which joined as a seller in October 2019), may sell, and later repurchase, mortgage loans in an aggregate principal amount of up to $400 million. Our subsidiaries renewed their master repurchase agreement with JPMorgan in February 2020 (the “JPM Loan Repurchase Facility”). ​As of September 30, 2020, we had $175.8 million outstanding under the JPM Loan Repurchase Facility. The JPM Loan Repurchase Facility is used to finance commercial transitional loans, conventional commercial loans and commercial mezzanine loans and securities and the interest rate is LIBOR plus a spread, which is determined by the lender on an asset-by-asset basis. The JPM Loan Repurchase Facility is committed through December 10, 2020, and up to 25% of the then-current unpaid obligations of ReadyCap Warehouse Financing, Sutherland Warehouse Trust and Ready Capital Mortgage Depositor II, LLC are fully guaranteed by us.​The eligible assets for the JPM Loan Repurchase Facility are loans secured by first and junior mortgage liens on commercial properties and subject to approval by JPM as the Buyer. The principal amount paid by the bank for each mortgage loan is based on the principal balance of such mortgage loan. ReadyCap Warehouse Financing and Sutherland Warehouse Trust paid the bank a structuring fee and are also required to pay the bank unused fees for the JPM Loan Repurchase Facility, as well as certain other administrative costs and expenses. The JPM Loan Repurchase Facility also includes financial maintenance covenants, which include (i) total stockholders’ equity must not be permitted to be less than the sum of (a) 60% of total stockholders’ equity as of the closing date of the facility plus (b) 50% of the net proceeds of any equity issuance after the closing date (ii) maximum leverage of 3:1 and (iii) liquidity equal to at least the lesser of (a) 4% of the sum of (without duplication) (1) any outstanding indebtedness plus (2) amounts due under the repurchase agreement and (b) $15.0 million.​Citibank loan repurchase agreement​Our subsidiaries, Waterfall Commercial Depositor, LLC, Sutherland Asset I, LLC, Ready Capital Subsidiary REIT I, LLC, and ReadyCap Commercial, LLC renewed a master repurchase agreement in August 2020 with Citibank, N.A. (the "Citi Loan Repurchase Facility" and, together with the DB Loan Repurchase Facility and the JPM Loan Repurchase Facility, the "Loan Repurchase Facilities"), pursuant to which Waterfall Commercial Depositor and Sutherland Asset I may sell, and later repurchase, a trust certificate (the “Trust Certificate”), representing interests in mortgage loans in an aggregate principal amount of up to $500 million. 94
​As of September 30, 2020, we had $103.3 million outstanding under the Citi Loan Repurchase Facility. The Citi Loan Repurchase Facility is used to finance SBC loans, and the interest rate is one month LIBOR plus a spread, depending on asset characteristics. The Citi Loan Repurchase Facility is committed for a period of 364 days, and up to 25% of the then-current unpaid obligations of Waterfall Commercial Depositor, Sutherland Asset I, and ReadyCap Commercial, LLC are fully guaranteed by us.​The eligible assets for the Citi Loan Repurchase Facility are loans secured by a first mortgage lien on commercial properties, which, amongst other things, generally have a UPB of less than $10 million. The principal amount paid by the bank for the Trust Certificate is based on a percentage of the lesser of the market value or the UPB of such mortgage loans backing the Trust Certificate. Waterfall Commercial Depositor, Sutherland Asset I, and ReadyCap Commercial, LLC are required to pay the bank a commitment fee for the Citi Loan Repurchase Facility, as well as certain other administrative costs and expenses. The Citi Loan Repurchase Facility includes financial maintenance covenants, which include (i) our operating partnership’s net asset value not (A) declining more than 15% in any calendar month, (B) declining more than 25% in any calendar quarter, (C) declining more than 35% in any calendar year, or (D) declining more than 50% from our operating partnership’s highest net asset value set forth in any audited financial statement provided to the bank; (ii) our operating partnership maintaining liquidity in an amount equal to at least 1% of our outstanding indebtedness; and (iii) the ratio of our operating partnership’s total indebtedness (excluding non-recourse liabilities in connection with any securitization transaction) to our net asset value not exceeding 4:1 at any time.​Securities repurchase agreements ​As of September 30, 2020, we had $184.4 million of secured borrowings related to SBC ABS and pledged Trust Certificates with four counterparties (lenders).​General statements regarding loan and securities repurchase facilities ​At September 30, 2020, we had $850.1 million in fair value of Trust Certificates and loans pledged against our borrowings under the Loan Repurchase Facilities and $73.9 million in fair value of SBC ABS and short term investments pledged against our securities repurchase agreement borrowings.​Under the Loan Repurchase Facilities and securities repurchase agreements, we may be required to pledge additional assets to our counterparties in the event that the estimated fair value of the existing pledged collateral under such agreements declines and such lenders demand additional collateral, which may take the form of additional assets or cash. Generally, the Loan Repurchase Facilities and securities repurchase agreements contain a LIBOR-based financing rate, term and haircuts depending on the types of collateral and the counterparties involved. ​If the estimated fair values of the assets increase due to changes in market interest rates or other market factors, lenders may release collateral back to us. Margin calls may result from a decline in the value of the investments securing the Loan Repurchase Facilities and securities repurchase agreements, prepayments on the loans securing such investments and from changes in the estimated fair value of such investments generally due to principal reduction of such investments from scheduled amortization and resulting from changes in market interest rates and other market factors. Counterparties also may choose to increase haircuts based on credit evaluations of our Company and/or the performance of the assets in question. Historically, disruptions in the financial and credit markets have resulted in increased volatility in these levels, and this volatility could persist as market conditions continue to change. Should prepayment speeds on the mortgages underlying our investments or market interest rates suddenly increase, margin calls on the Loan Repurchase Facilities and securities repurchase agreements could result, causing an adverse change in our liquidity position. To date, we have satisfied all of our margin calls and have never sold assets in response to any margin call under these borrowings.​Our borrowings under repurchase agreements are renewable at the discretion of our lenders and, as such, our ability to roll-over such borrowings is not guaranteed. The terms of the repurchase transaction borrowings under our repurchase agreements generally conform to the terms in the standard master repurchase agreement as published by the Securities Industry and Financial Markets Association, as to repayment, margin requirements and the segregation of all assets we have initially sold under the repurchase transaction. In addition, each lender typically requires that we include supplemental terms and conditions to the standard master repurchase agreement. Typical supplemental terms and conditions, which differ by lender, may include changes to the margin maintenance requirements, required haircuts and purchase price 95
maintenance requirements, requirements that all controversies related to the repurchase agreement be litigated in a particular jurisdiction, and cross default and setoff provisions.​JPMorgan credit facility ​We renewed our master loan and security agreement with JPMorgan in June 2020 providing for a credit facility of up to $250 million. As of September 30, 2020, we had $30.7 million outstanding under this credit facility. The credit facility is structured as a secured loan facility in which ReadyCap Commercial, ReadyCap Lending and Sutherland 2016-1 JPM Grantor Trust act as borrowers. Under this facility, ReadyCap and Sutherland 2016-1 JPM Grantor Trust pledge loans guaranteed by the SBA under the SBA Section 7(a) Loan Program, SBA 504 loans and other loans which were part of the CIT loan acquisition. We act as a guarantor under this facility. The agreement contains financial maintenance covenants, which include (i) total stockholders’ equity must not be permitted to be less than the sum of (a) 60% of total stockholders’ equity as of the effective date of the facility plus (b) 50% of the net proceeds of any equity issuance after the effective date (ii) maximum leverage of 3:1 and (iii) liquidity equal to at least the lesser of (a) 4% of the sum of (without duplication) (1) any outstanding recourse indebtedness plus (2) amounts due under the repurchase agreement and (b) $15.0 million. The amended terms have an interest rate based on utilization ranging from one month LIBOR (reset daily), plus a spread. The term of the facility is one year, with an option to extend for an additional year.​At September 30, 2020, we had a leverage ratio of 2.0x on a recourse debt-to-equity basis.​We maintain certain assets, which, from time to time, may include cash, unpledged SBC loans, SBC ABS and short term investments (which may be subject to various haircuts if pledged as collateral to meet margin requirements) and collateral in excess of margin requirements held by our counterparties, or collectively, the “Cushion”, to meet routine margin calls and protect against unforeseen reductions in our borrowing capabilities. Our ability to meet future margin calls will be impacted by the Cushion, which varies based on the fair value of our investments, our cash position and margin requirements. Our cash position fluctuates based on the timing of our operating, investing and financing activities and is managed based on our anticipated cash needs. At September 30, 2020, we were in compliance with all debt covenants.​East West Bank credit facility​Our subsidiary, ReadyCap Lending, LLC entered into a senior secured revolving credit facility with East West Bank on July 13, 2018, which provides financing of up to $50.0 million. The agreement extends for two years, with an additional one year extension at the Company’s request and pays interest equal to the Prime Rate minus 0.821% on SBA 7(a) guaranteed loans and the Prime Rate plus 0.029% on unguaranteed loans.​Other credit facilities​GMFS funds its origination platform through warehouse lines of credit with five counterparties with total borrowings outstanding of $307.9 million at September 30, 2020. GMFS utilizes committed warehouse lines of credit agreements ranging from $50.0 million to $150.0 million, with expiration dates between November 2020 and September 2023. The lines of credit are collateralized by the underlying mortgages, related documents, and instruments, and contain a LIBOR-based financing rate and term, haircut and collateral posting provisions which depend on the types of collateral and the counterparties involved. These agreements contain covenants that include certain financial requirements, including maintenance of minimum liquidity, minimum tangible net worth, maximum debt to net worth ratio and current ratio and limitations on capital expenditures, indebtedness, distributions, transactions with affiliates and maintenance of positive net income, as defined in the agreements. ​We were in compliance with all significant debt covenants as of September 30, 2020.​96
Public offerings​Debt offerings​Convertible notes​On August 9, 2017, we closed an underwritten public sale of $115.0 million aggregate principal amount of its 7.00% convertible senior notes due 2023 (the “Convertible Notes”). The Convertible Notes will mature on August 15, 2023, unless earlier repurchased, redeemed or converted. During certain periods and subject to certain conditions, the Convertible Notes will be convertible by holders into shares of our common stock at an initial conversion rate of 1.4997 shares of common stock per $25 principal amount of the Convertible Notes, which is equivalent to an initial conversion price of approximately $16.67 per share of common stock. Upon conversion, holders will receive, at our discretion, cash, shares of our common stock or a combination thereof.We may, upon the satisfaction of certain conditions, redeem all or any portion of the Convertible Notes, at its option, on or after August 15, 2021, at a redemption price payable in cash equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest. Additionally, upon the occurrence of certain corporate transactions, holders may require us to purchase the Convertible Notes for cash at a purchase price equal to 100% of the principal amount of the Convertible Notes to be purchased, plus accrued and unpaid interest. As of September 30, 2020, we were in compliance with all covenants with respect to the Convertible Notes.​Corporate debt​On April 27, 2018, we completed the public offer and sale of $50.0 million aggregate principal amount of its 6.50% Senior Notes due 2021(the “2021 Notes”). We issued the 2021 Notes under a base indenture, dated August 9, 2017, as supplemented by the second supplemental indenture, dated as of April 27, 2018, between us and U.S. Bank National Association, as trustee. The 2021 Notes bear interest at a rate of 6.50% per annum, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, beginning on July 30, 2018. The 2021 Notes will mature on April 30, 2021, unless earlier redeemed or repurchased.​Prior to April 30, 2019, the 2021 Notes are not redeemable by us. We may redeem for cash all or any portion of the 2021 Notes, at its option, on or after April 30, 2019 and before April 30, 2020 at a redemption price equal to 101% of the principal amount of the 2021 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. On or after April 30, 2020, we may redeem for cash all or any portion of the 2021 Notes, at its option, at a redemption price equal to 100% of the principal amount of the 2021 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If we undergo a change of control repurchase event, holders may require it to purchase the 2021 Notes, in whole or in part, for cash at a repurchase price equal to 101% of the aggregate principal amount of the 2021 Notes to be purchased, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase, as described in greater detail in the Indenture.​The 2021 Notes are our senior direct unsecured obligations and will not be guaranteed by any of its subsidiaries, except to the extent described in the Indenture upon the occurrence of certain events. The 2021 Notes rank equal in right of payment to any of our existing and future unsecured and unsubordinated indebtedness; effectively junior in right of payment to any of its existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness, other liabilities (including trade payables) and (to the extent not held by us) preferred stock, if any, of its subsidiaries.​On July 22, 2019, we completed the public offer and sale of $57.5 million aggregate principal amount of its 6.20% Senior Notes due 2026 (the “2026 Notes” and together with the 2021 Notes, the “Corporate Debt”), which includes $7.5 million aggregate principal amount of the 2026 Notes relating to the full exercise of the underwriters’ over-allotment option. The net proceeds from the sale of the 2026 Notes are approximately $55.3 million, after deducting underwriters’ discount and estimated offering expenses. We will contribute the net proceeds to Sutherland Partners, L.P. (the “Operating Partnership”), its operating partnership subsidiary, in exchange for the issuance by the Operating Partnership of a senior unsecured note with terms that are substantially equivalent to the terms of the 2026 Notes. The Operating Partnership intends to use the net proceeds to originate or acquire our target assets and for general business purposes.​97
The 2026 Notes bear interest at a rate of 6.20% per annum, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, beginning on October 30, 2019. The 2026 Notes will mature on July 30, 2026, unless earlier repurchased or redeemed. We may redeem for cash all or any portion of the 2026 Notes, at its option, on or after July 30, 2022 and before July 30, 2025 at a redemption price equal to 101% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. On or after July 30, 2025, we may redeem for cash all or any portion of the 2026 Notes, at its option, at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If we undergo a change of control repurchase event, holders may require it to purchase the 2026 Notes, in whole or in part, for cash at a repurchase price equal to 101% of the aggregate principal amount of the 2026 Notes to be purchased, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase, as described in greater detail in the Indenture.The 2026 Notes are our senior unsecured obligations and will not be guaranteed by any of its subsidiaries, except to the extent described in the Indenture upon the occurrence of certain events. The 2026 Notes rank equal in right of payment to any of our existing and future unsecured and unsubordinated indebtedness; effectively junior in right of payment to any of its existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness, other liabilities (including trade payables) and (to the extent not held by us) preferred stock, if any, of its subsidiaries.​In December 2019, we completed the public offer and sale of $45.0 million aggregate principal amount of the 2026 Notes. The new notes have the same terms (expect with respect to issue date, issue price and the date from which interest will accrue) as, are fully fungible with and are treated as a single series of debt securities as, the 6.20% Senior Notes due 2026 we issued on July 22, 2019. ​As of September 30, 2020, we were in compliance with all covenants with respect to the corporate debt.​Equity offering​In December 2019, we completed a public offering of 6,000,000 shares of our common stock at a public offering price of $15.30 per share and an additional 900,000 shares of common stock at a public offering price of $15.30 per share pursuant to the underwriter’s full exercise of the over-allotment option in January 2020. Proceeds, net of offering costs and expenses were $ 91.8 million and $13.8 million for December 2019 and January 2020, respectively. There were no equity offerings during 2018.​U.S. federal income tax proposed regulations ​The discussion under the heading “Additional U.S. Federal Income Tax Considerations” in our Prospectus dated August 31, 2018, describes certain tax legislative changes applicable to us. As described in the discussion under the heading "Additional U.S. Federal Income Tax Considerations – U.S. Federal Income Tax Legislation – Income Accrual," we and our subsidiaries are required to recognize certain items of income for U.S. federal income tax purposes no later than we would report such items on our financial statements. Recently proposed Treasury regulations, which are not yet in effect but upon which taxpayers may rely, generally would exclude, among other items, original issue discount and market discount income from the applicability of this rule ​Other long term financing​ReadyCap Holdings’ 7.50% senior secured notes due 2022​During 2017, ReadyCap Holdings LLC, a subsidiary of the Company, issued $140.0 million in 7.50% Senior Secured Notes due 2022. On January 30, 2018 ReadyCap Holdings LLC, issued an additional $40.0 million in aggregate principal amount of 7.50% Senior Secured Notes due 2022, which have identical terms (other than issue date and issue price) to the notes issued during 2017 (collectively “the Senior Secured Notes”). The additional $40.0 million in Senior Secured Notes were priced with a yield to par call date of 6.5%. Payments of the amounts due on the Senior Secured Notes are fully and unconditionally guaranteed by the Company and its subsidiaries: Sutherland Partners LP, Sutherland Asset I, LLC, and ReadyCap Commercial. The funds were used to fund new SBC and SBA loan originations and new SBC loan acquisitions. ​98
The Senior Secured Notes bear interest at 7.50% per annum payable semiannually on each February 15 and August 15, beginning on August 15, 2017. The Senior Secured Notes will mature on February 15, 2022, unless redeemed or repurchased prior to such date. ReadyCap Holdings may redeem the Senior Secured Notes prior to November 15, 2021, at its option, in whole or in part at any time and from time to time, at a price equal to 100% of the outstanding principal amount thereof, plus the applicable “make-whole” premium as of, and unpaid interest, if any, accrued to, the redemption date. On and after November 15, 2021, ReadyCap Holdings may redeem the Senior Secured Notes, at its option, in whole or in part at any time and from time to time, at a price equal to 100% of the outstanding principal amount thereof plus unpaid interest, if any, accrued to the redemption date.​ReadyCap Holdings’ and the Guarantors’ respective obligations under the Senior Secured Notes and the Guarantees are secured by a perfected first-priority lien on the capital stock of ReadyCap Holdings and ReadyCap Commercial and certain other assets owned by certain of our Company’s subsidiaries as described in greater detail in our Current Report on Form 8-K filed on June 15, 2017. The Senior Secured Notes were issued pursuant to an indenture (the "Indenture") and a first supplemental indenture (the "First Supplemental Indenture"), which contains covenants that, among other things: (i) limit the ability of our Company and its subsidiaries (including ReadyCap Holdings and the other Guarantors) to incur additional indebtedness; (ii) require that our Company maintain, on a consolidated basis, quarterly compliance with the applicable consolidated recourse indebtedness to equity ratio of our Company and consolidated indebtedness to equity ratio of our Company and specified ratios of our Company’s stockholders’ equity to aggregate principal amount of the outstanding Senior Secured Notes and our Company's consolidated unencumbered assets to aggregate principal amount of the outstanding Senior Secured Notes; (iii) limit the ability of ReadyCap Holdings and ReadyCap Commercial to pay dividends or distributions on, or redeem or repurchase, the capital stock of ReadyCap Holdings or ReadyCap Commercial; (iv) limit (1) ReadyCap's Holdings ability to create or incur any lien on the collateral and (2) unless the Senior Secured Notes are equally and ratably secured, (a) ReadyCap's Holdings ability to create or incur any lien on the capital stock of its wholly-owned subsidiary, ReadyCap Lending and (b) ReadyCap's Holdings ability to permit ReadyCap Lending to create or incur any lien on its assets to secure indebtedness of its affiliates other than its subsidiaries or any securitization entity; and (v) limit ReadyCap Holding's and the Guarantors' ability to consolidate, merge or transfer all or substantially all of ReadyCap' Holdings and the Guarantors’ respective properties and assets. The First Supplemental Indenture also requires that our Company ensure that the Replaceable Collateral Value (as defined therein) is not less than the aggregate principal amount of the Senior Secured Notes outstanding as of the last day of each of our Company's fiscal quarters.​As of September 30, 2020, we were in compliance with all covenants with respect to the Senior Secured Notes.​Securitization transactions​Our Manager’s extensive experience in loan acquisition, origination, servicing and securitization strategies has enabled us to complete several securitizations of SBC and SBA loan assets since January 2011. These securitizations allow us to match fund the SBC and SBA loans on a long-term, non-recourse basis. The assets pledged as collateral for these securitizations were contributed from our portfolio of assets. By contributing these SBC and SBA assets to the various securitizations, these transactions created capacity for us to fund other investments. ​99
| ​ | ​ | ​ | ​ | ​ | ​ |
| Deal Name | Collateral Asset Class | Issuance | Active / Collapsed | Bonds Issued(in $ millions) |
| Trusts (Firm sponsored) | ​ | ​ | ​ | ​ | ​ |
| Waterfall Victoria Mortgage Trust 2011-1 (SBC1) | SBC Acquired loans | February 2011 | Collapsed | $ | 40.5 |
| Waterfall Victoria Mortgage Trust 2011-3 (SBC3) | SBC Acquired loans | October 2011 | Collapsed | ​ | 143.4 |
| Sutherland Commercial Mortgage Trust 2015-4 (SBC4) | SBC Acquired loans | August 2015 | Collapsed | ​ | 125.4 |
| Sutherland Commercial Mortgage Trust 2018 (SBC7) | SBC Acquired loans | November 2018 | Active | ​ | 217.0 |
| ReadyCap Lending Small Business Trust 2015-1 (RCLT 2015-1) | Acquired SBA 7(a) loans | June 2015 | Collapsed | ​ | 189.5 |
| ReadyCap Lending Small Business Loan Trust 2019-2 (RCLT 2019-2) | Originated SBA 7(a) loans, Acquired SBA 7(a) loans | December 2019 | Active | ​ | 131.0 |
| ​ | ​ | ​ | ​ | ​ | ​ |
| Real Estate Mortgage Investment Conduits (REMICs) | ​ | ​ | ​ | ​ | ​ |
| ReadyCap Commercial Mortgage Trust 2014-1 (RCMT 2014-1) | SBC Originated conventional | September 2014 | Active | $ | 181.7 |
| ReadyCap Commercial Mortgage Trust 2015-2 (RCMT 2015-2) | SBC Originated conventional | November 2015 | Active | ​ | 218.8 |
| ReadyCap Commercial Mortgage Trust 2016-3 (RCMT 2016-3) | SBC Originated conventional | November 2016 | Active | ​ | 162.1 |
| ReadyCap Commercial Mortgage Trust 2018-4 (RCMT 2018-4) | SBC Originated conventional | March 2018 | Active | ​ | 165.0 |
| Ready Capital Mortgage Trust 2019-5 (RCMT 2019-5) | SBC Originated conventional | January 2019 | Active | ​ | 355.8 |
| Ready Capital Mortgage Trust 2019-6 (RCMT 2019-6) | SBC Originated conventional | November 2019 | Active | ​ | 430.7 |
| Waterfall Victoria Mortgage Trust 2011-2 (SBC2) | SBC Acquired loans | March 2011 | Active | ​ | 97.6 |
| Sutherland Commercial Mortgage Trust 2018 (SBC6) | SBC Acquired loans | August 2017 | Active | ​ | 139.4 |
| Sutherland Commercial Mortgage Trust 2019 (SBC8) | SBC Acquired loans | June 2019 | Active | ​ | 306.5 |
| Sutherland Commercial Mortgage Trust 2020 (SBC9) | SBC Acquired loans | June 2020 | Active | ​ | 172.4 |
| ​ | ​ | ​ | ​ | ​ | ​ |
| Collateralized Loan Obligations (CLOs) | ​ | ​ | ​ | ​ | ​ |
| Ready Capital Mortgage Financing 2017– FL1 | SBC Originated transitional | August 2017 | Collapsed | $ | 198.8 |
| Ready Capital Mortgage Financing 2018 – FL2 | SBC Originated transitional | June 2018 | Active | ​ | 217.1 |
| Ready Capital Mortgage Financing 2019 – FL3 | SBC Originated transitional | April 2019 | Active | ​ | 320.2 |
| Ready Capital Mortgage Financing 2020 – FL4 | SBC Originated transitional | June 2020 | Active | ​ | 393.8 |
| ​ | ​ | ​ | ​ | ​ | ​ |
| Trusts (Non-firm sponsored) | ​ | ​ | ​ | ​ | ​ |
| Freddie Mac Small Balance Mortgage Trust 2016-SB11 | Originated agency multi-family | January 2016 | Active | $ | 110.0 |
| Freddie Mac Small Balance Mortgage Trust 2016-SB18 | Originated agency multi-family | July 2016 | Active | ​ | 118.0 |
| Freddie Mac Small Balance Mortgage Trust 2017-SB33 | Originated agency multi-family | June 2017 | Active | ​ | 197.9 |
| Freddie Mac Small Balance Mortgage Trust 2018-SB45 | Originated agency multi-family | January 2018 | Active | ​ | 362.0 |
| Freddie Mac Small Balance Mortgage Trust 2018-SB52 | Originated agency multi-family | September 2018 | Active | ​ | 505.0 |
| Freddie Mac Small Balance Mortgage Trust 2018-SB56 | Originated agency multi-family | December 2018 | Active | ​ | 507.3 |
| Key Commercial Mortgage Trust 2020-S3(1) | SBC Originated conventional | September 2020 | Active | ​ | 250.0 |
| (1) Contributed portion of assets into trust | ​ | ​ | ​ | ​ | ​ |

Accounting Policies” included in Item 8, “Financial Statements and Supplementary Data,” in our 2019 annual report on Form 10-K. ​Loan impairment and allowance for loan losses​The allowance for loan losses is intended to provide for credit losses inherent in the loans, held-for-investment portfolio and is reviewed quarterly for adequacy considering credit quality indicators, including probable and historical losses, collateral values, loan-to-value (“LTV”) ratio and economic conditions. The allowance for loan losses is increased through provisions for loan losses charged to earnings and reduced by charge-offs, net of recoveries. ​On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments-Credit Losses, and subsequent amendments (“ASU 2016-13”), which replaces the incurred loss methodology with an expected loss model known as the Current Expected Credit Loss ("CECL") model. CECL amends the previous credit loss model to reflect a reporting entity's current estimate of all expected credit losses, not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost. The allowance for loan losses required under ASU 2016-13 is deducted from the respective loans’ amortized cost basis on our unaudited consolidated balance sheets. The guidance also requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption.​In connection with the Company’s adoption of ASU 2016-13 on January 1, 2020, the Company implemented new processes including the utilization of loan loss forecasting models, updates to the Company’s reserve policy documentation, changes to internal reporting processes and related internal controls. The Company has implemented loan loss forecasting models for estimating expected life-time credit losses, at the individual loan level, for its loan portfolio. The CECL forecasting methods used by the Company include (i) a probability of default and loss given default method using underlying third-party CMBS/CRE loan database with historical loan losses from 1998 to 2019 and (ii) probability weighted expected cash flow method, depending on the type of loan and the availability of relevant historical market loan loss data. The Company might use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data.​The Company estimates the CECL expected credit losses for its loan portfolio at the individual loan level. 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. 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 CECL expected credit losses. The Company considers loan investments that are both (i) expected to be substantially repaid through the operation or sale of the underlying collateral, and (ii) for which the borrower is experiencing financial difficulty, to be “collateral-dependent” loans. For such loans that the Company determines that foreclosure of the collateral is probable, the Company measures the expected losses based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For collateral-dependent loans that the Company determines foreclosure is not probable, the Company applies a practical expedient to estimate expected losses using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan.​While we have a formal methodology to determine the adequate and appropriate level of the allowance for loan losses, estimates of inherent loan losses involve judgment and assumptions as to various factors, including current economic conditions. Our determination of adequacy of the allowance for loan losses is based on quarterly evaluations of the above factors. Accordingly, the provision for loan losses will vary from period to period based on management's ongoing assessment of the adequacy of the allowance for loan losses.​Significant judgment is required when evaluating loans for impairment; therefore, actual results over time could be materially different. Refer to “Notes to Consolidated Financial Statements, Note 6 – Loans and Allowance for Loan Losses” included in Item 8, “Financial Statements and Supplementary Data,” in this quarterly report on Form 10-Q for results of our loan impairment evaluation.​101
Valuation of financial assets and liabilities carried at fair value​We measure our MBS, derivative assets and liabilities, residential mortgage servicing rights, and any assets or liabilities where we have elected the fair value option at fair value, including certain loans we have originated that are expected to be sold to third parties or securitized in the near term. ​We have established valuation processes and procedures designed so that fair value measurements are appropriate and reliable, that they are based on observable inputs where possible, and that valuation approaches are consistently applied, and the assumptions and inputs are reasonable. We also have established processes to provide that the valuation methodologies, techniques and approaches for investments that are categorized within Level 3 of the ASC 820 Fair Value Measurement fair value hierarchy (the “fair value hierarchy”) are fair, consistent and verifiable. Our processes provide a framework that ensures the oversight of our fair value methodologies, techniques, validation procedures, and results.​When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors. Refer to “Notes to Consolidated Financial Statements, Note 7 – Fair Value Measurements” included in Item 8, “Financial Statements and Supplementary Data,” in this annual report on Form 10-K for a more complete discussion of our critical accounting estimates as they pertain to fair value measurements. ​Servicing rights impairment ​Servicing rights, at amortized cost, are initially recorded at fair value and subsequently carried at amortized cost. We have elected the fair value option on our residential mortgage servicing rights, which are not subject to impairment. ​For purposes of testing our servicing rights, carried at amortized cost, for impairment, we first determine whether facts and circumstances exist that would suggest the carrying value of the servicing asset is not recoverable. If so, we then compare the net present value of servicing cash flow with its carrying value. The estimated net present value of servicing cash flows of the intangibles is determined using discounted cash flow modeling techniques which require management to make estimates regarding future net servicing cash flows, taking into consideration historical and forecasted loan prepayment rates, delinquency rates and anticipated maturity defaults. If the carrying value of the servicing rights exceeds the net present value of servicing cash flows, the servicing rights are considered impaired and an impairment loss is recognized in earnings for the amount by which carrying value exceeds the net present value of servicing cash flows. We monitor the actual performance of our servicing rights by regularly comparing actual cash flow, credit, and prepayment experience to modeled estimates.​Significant judgment is required when evaluating servicing rights for impairment; therefore, actual results over time could be materially different. Refer to “Notes to Consolidated Financial Statements, Note 9 – Servicing Rights” included in Item 8, “Financial Statements and Supplementary Data,” in this annual report on Form 10-K for a more complete discussion of our critical accounting estimates as they pertain to servicing rights impairment.​Refer to “Notes to Consolidated Financial Statements, Note 4– Recently Issued Accounting Pronouncements” included in Item 8, “Financial Statements and Supplementary Data,” in this annual report on Form 10-K for a discussion of recent accounting developments and the expected impact to the Company.​INFLATION​Virtually all of our assets and liabilities are and will be interest rate sensitive in nature. As a result, interest rates and other factors influence our performance far more than does inflation. Changes in interest rates do not necessarily correlate with inflation rates or changes in inflation rates. Our consolidated financial statements are prepared in accordance with U.S. GAAP and our activities and balance sheet shall be measured with reference to historical cost and/or fair market value without considering inflation.​Item 3. Quantitative and Qualitative Disclosures About Market Risk​In the normal course of business, we enter into transactions in various financial instruments that expose us to various types of risk, both on and off balance sheet, which are associated with such financial instruments and markets for which we invest. These financial instruments expose us to varying degrees of market risk, credit risk, interest rate risk, liquidity 102
risk, off-balance sheet risk and prepayment risk. Many of these risks have been magnified due to the continuing economic disruptions caused by the COVID-19 pandemic; however, while we continue to monitor the pandemic its impact on such risks remains uncertain and difficult to predict.​Market risk ​Market risk is the potential adverse changes in the values of the financial instrument due to unfavorable changes in the level or volatility of interest rates, foreign currency exchange rates, or market values of the underlying financial instruments. We attempt to mitigate our exposure to market risk by entering into offsetting transactions, which may include purchase or sale of interest bearing securities and equity securities. ​Credit risk​We are subject to credit risk in connection with our investments in SBC loans and SBC ABS and other target assets we may acquire in the future. The credit risk related to these investments pertains to the ability and willingness of the borrowers to pay, which is assessed before credit is granted or renewed and periodically reviewed throughout the loan or security term. We believe that loan credit quality is primarily determined by the borrowers’ credit profiles and loan characteristics. We seek to mitigate this risk by seeking to acquire assets at appropriate prices given anticipated and unanticipated losses and by deploying a value-driven approach to underwriting and diligence, consistent with our historical investment strategy, with a focus on projected cash flows and potential risks to cash flow. We further mitigate our risk of potential losses while managing and servicing our loans by performing various workout and loss mitigation strategies with delinquent borrowers. Nevertheless, unanticipated credit losses could occur which could adversely impact operating results.​The COVID-19 pandemic has adversely impacted the commercial real estate markets, causing reduced occupancy, requests from tenants for rent deferral or abatement, and delays in property renovations currently planned or underway. These negative conditions may persist into the future and impair borrower’s ability to pay principal and interest due under our loan agreements. We maintain robust asset management relationships with our borrowers and have leveraged these relationships to address the potential impact of the COVID-19 pandemic on our loans secured by properties experiencing cash flow pressure, most significantly hospitality and retail assets. Some of our borrowers have indicated that due to the impact of the COVID-19 pandemic, they will be unable to timely execute their business plans, have had to temporarily close their businesses, or have experienced other negative business consequences and have requested temporary interest deferral or forbearance, or other modifications of their loans. Accordingly, we have discussed with our borrowers potential near-term defensive loan modifications, which could include repurposing of reserves, temporary deferrals of interest, or performance test or covenant waivers on loans collateralized by assets directly impacted by the COVID-19 pandemic, and which would typically be coupled with an additional equity commitment and/or guaranty from sponsors. As of September 30, 2020, approximately 1.8% of the loans in our commercial real estate portfolio are in forbearance plans. While we believe the principal amounts of our loans are generally adequately protected by underlying collateral value, there is a risk that we will not realize the entire principal value of certain investments.Interest rate risk ​Interest rate risk is highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond our control. ​Our operating results will depend, in part, on differences between the income from our investments and our financing costs. Our debt financing is based on a floating rate of interest calculated on a fixed spread over the relevant index, subject to a floor, as determined by the particular financing arrangement. The general impact of changing interest rates are discussed above under “— Factors Impacting Operating Results — Changes in Market Interest Rates.” In the event of a significant rising interest rate environment and/or economic downturn, defaults could increase and result in credit losses to us, which could materially and adversely affect our business, financial condition, liquidity, results of operations and prospects. Furthermore, such defaults could have an adverse effect on the spread between our interest-earning assets and interest-bearing liabilities. ​Additionally, non-performing SBC loans are not as interest rate sensitive as performing loans, as earnings on non-performing loans are often generated from restructuring the assets through loss mitigation strategies and opportunistically disposing of them. Because non-performing SBC loans are short-term assets, the discount rates used for valuation are based on short-term market interest rates, which may not move in tandem with long-term market interest rates. A rising 103
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| ​ | ​ | 12-month pretax net interest income sensitivity profiles |
| ​ | ​ | Instantaneous change in rates |
| (in thousands) | ​ | 25 basis point increase | ​ | 50 basis point increase | ​ | 75 basis point increase | ​ | 100 basis point increase | ​ | 25 basis point decrease | ​ | 50 basis point decrease | ​ | 75 basis point decrease | ​ | 100 basis point decrease |
| Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Loans held for investment | $ | 4,249 | $ | 8,498 | $ | 12,748 | $ | 16,997 | $ | (951) | $ | (1,815) | $ | (2,644) | $ | (3,453) |
| Interest rate swap hedges | ​ | 689 | ​ | 1,379 | ​ | 2,068 | ​ | 2,757 | ​ | (689) | ​ | (1,379) | ​ | (2,068) | ​ | (2,757) |
| Total | $ | 4,938 | $ | 9,877 | $ | 14,816 | $ | 19,754 | $ | (1,640) | $ | (3,194) | $ | (4,712) | $ | (6,210) |
| Liabilities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Recourse debt | $ | (2,067) | $ | (4,134) | $ | (6,201) | $ | (8,269) | $ | 1,350 | $ | 1,433 | $ | 1,516 | $ | 1,599 |
| Non-recourse debt | ​ | (2,057) | ​ | (4,113) | ​ | (6,170) | ​ | (8,227) | ​ | 1,376 | ​ | 1,759 | ​ | 2,143 | ​ | 2,526 |
| Total | $ | (4,124) | $ | (8,247) | $ | (12,371) | $ | (16,496) | $ | 2,726 | $ | 3,192 | $ | 3,659 | $ | 4,125 |
| Total Net Impact to Net Interest Income (Expense) | $ | 814 | $ | 1,630 | $ | 2,445 | $ | 3,258 | $ | 1,086 | $ | (2) | $ | (1,053) | $ | (2,085) |

agreements. This could have a negative impact on our results of operations. In some situations, we may be forced to sell assets to maintain adequate liquidity, which could cause us to incur losses. ​Real estate risk ​The market values of commercial mortgage assets are subject to volatility and may be affected adversely by a number of factors, including, but not limited to, national, regional and local economic conditions (which may be adversely affected by industry slowdowns and other factors); local real estate conditions; changes or continued weakness in specific industry segments; construction quality, age and design; demographic factors; and retroactive changes to building or similar codes. In addition, decreases in property values reduce the value of the collateral and the potential proceeds available to a borrower to repay the underlying loans, which could also cause us to suffer losses. ​Fair value risk ​The estimated fair value of our investments fluctuates primarily due to changes in interest rates and other factors. Generally, in a rising interest rate environment, the estimated fair value of the fixed-rate investments would be expected to decrease; conversely, in a decreasing interest rate environment, the estimated fair value of the fixed-rate investments would be expected to increase. As market volatility increases or liquidity decreases, the fair value of our assets recorded and/or disclosed may be adversely impacted. Our economic exposure is generally limited to our net investment position as we seek to fund fixed rate investments with fixed rate financing or variable rate financing hedged with interest rate swaps. ​Counterparty risk​We finance the acquisition of a significant portion of our commercial and residential mortgage loans, MBS and other assets with our repurchase agreements and credit facilities. In connection with these financing arrangements, we pledge our mortgage loans and securities as collateral to secure the borrowings. The amount of collateral pledged will typically exceed the amount of the borrowings (i.e. the haircut) such that the borrowings will be over-collateralized. As a result, we are exposed to the counterparty if, during the term of the financing, a lender should default on its obligation and we are not able to recover our pledged assets. The amount of this exposure is the difference between the amount loaned to us plus interest due to the counterparty and the fair value of the collateral pledged by us to the lender including accrued interest receivable on such collateral.​We are exposed to changing interest rates and market conditions, which affects cash flows associated with borrowings. We enter into derivative instruments, such as interest rate swaps and credit default swaps (“CDS”), to mitigate these risks. Interest rate swaps are used to mitigate the exposure to changes in interest rates and involve the receipt of variable-rate interest amounts from a counterparty in exchange for us making payments based on a fixed interest rate over the life of the swap contract. CDSs are executed in order to mitigate the risk of deterioration in the current credit health of the commercial mortgage market.​Certain of our subsidiaries have entered into over-the-counter interest rate swap agreements to hedge risks associated with movements in interest rates. Because certain interest rate swaps were not cleared through a central counterparty, we remain exposed to the counterparty's ability to perform its obligations under each such swap and cannot look to the creditworthiness of a central counterparty for performance. As a result, if an over-the-counter swap counterparty cannot perform under the terms of an interest rate swap, our subsidiary would not receive payments due under that agreement, we may lose any unrealized gain associated with the interest rate swap and the hedged liability would cease to be hedged by the interest rate swap. While we would seek to terminate the relevant over-the-counter swap transaction and may have a claim against the defaulting counterparty for any losses, including unrealized gains, there is no assurance that we would be able to recover such amounts or to replace the relevant swap on economically viable terms or at all. In such case, we could be forced to cover our unhedged liabilities at the then current market price. We may also be at risk for any collateral we have pledged to secure our obligations under the over-the-counter interest rate swap if the counterparty becomes insolvent or files for bankruptcy. Therefore, upon a default by an interest rate swap agreement counterparty, the interest rate swap would no longer mitigate the impact of changes in interest rates as intended.​105
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (in thousands) | ​ | Borrowings under repurchase agreements and credit facilities (1) | ​ | Assets pledged on borrowings under repurchase agreements and credit facilities | ​ | Net Exposure | ​ | Exposure as aPercentage ofTotal Assets |
| Total Counterparty Exposure | ​ | $ 1,176,621 | ​ | $ 1,562,174 | ​ | $ 385,553 | ​ | 7.3 | % |
| (1) The exposure reflects the difference between (a) the amount loaned to the Company through repurchase agreements and credit facilities, including interest payable, and (b) the cash and the fair value of the assets pledged by the Company as collateral, including accrued interest receivable on such assets | ​ |
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| (in thousands) | ​ | Counterparty Rating (1) | Amount of Risk (2) | ​ | WeightedAverageMonths toMaturity forAgreement | ​ | Percentage ofStockholders’Equity |
| JPMorgan Chase Bank, N.A. | ​ | A+ / Aa2 | $ 134,088 | ​ | 6 | ​ | 16.3 | % |
| Citibank, N.A. | ​ | A+ / Aa3 | $ 67,216 | ​ | 2 | ​ | 8.2 | % |
| Deutsche Bank AG | ​ | BBB+ / A3 | $ 75,259 | ​ | 17 | ​ | 9.1 | % |
| (1) The counterparty rating presented is the long-term issuer credit rating as rated at September 30, 2020 by S&P and Moody’s, respectively. | ​ |
| (2) The amount at risk reflects the difference between (a) the amount loaned to the Company through repurchase agreements, including interest payable, and (b) the cash and the fair value of the assets pledged by the Company as collateral, including accrued interest receivable on such securities | ​ |

appropriate, to allow timely decisions regarding required disclosure based on the definition of "disclosure controls and procedures" as promulgated under the Exchange Act and the rules and regulations thereunder. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.​The Company, including its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of its disclosure controls and procedures as of September 30, 2020. Based on the foregoing, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective.​Changes in Internal Controls over Financial Reporting​There have been no changes in the Company’s “internal control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the three and nine months ended September 30, 2020 that have materially affected, or were reasonably likely to materially affect, the Company’s internal control over financial reporting.​​PART II. OTHER INFORMATION​Item 1. Legal Proceedings​Currently, no material legal proceedings are pending or, to our knowledge, threatened against us.​Item 1A. Risk Factors​See the Company's Annual Report on Form 10-K for the year ended December 31, 2019. The following risk factors are added to the Company’s risk factors previously disclosed. You should be aware that these risk factors and other information may not describe every risk facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.​The current outbreak of COVID-19 has caused severe disruptions in the U.S. and global economy and to our business, and may continue to have an adverse impact on our performance, financial condition and results of operations.The outbreak of COVID-19 in many countries continues to adversely impact global economic activity and has contributed to significant volatility in financial markets. On March 11, 2020, the World Health Organization publicly characterized COVID-19 as a pandemic. On March 13, 2020, the President of the United States declared the COVID-19 outbreak a national emergency. The global impact of the outbreak has been rapidly evolving, and as cases of the virus increased around the world, governments and organizations have implemented a variety of actions to mobilize efforts to mitigate the ongoing and expected impact. Many governments have reacted by instituting quarantines, restrictions on travel, school closures, bans on public events and on public gatherings, “shelter in place” or “stay at home” rules, restrictions on types of business that may continue to operate, and/or restrictions on types of construction projects that may continue. Although, in certain cases, exceptions may be available for certain essential operations and businesses, and in other cases certain of these restrictions have been relaxed or phased out, many of these or similar restrictions remain in place, continue to be implemented or additional restrictions are being considered. There is no assurance that any exceptions or easing of restrictions will enable us to avoid adverse effects to our results of operations and business. Further, such actions have created, and expect to continue to create, disruption in real estate financing transactions and the commercial real estate market and adversely impact a number of industries, including many small businesses throughout the United States. The outbreak has triggered a period of economic slowdown and experts are uncertain as to how long these conditions may last.​In the United States, there have been a number of federal, state and local government initiatives applicable to a significant number of mortgage loans, to manage the spread of the virus and its impact on the economy, financial markets and continuity of businesses of all sizes and industries. On March 27, 2020, the U.S. Congress approved, and President Trump signed into law, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act provides approximately $2 trillion in financial assistance to individuals and businesses resulting from the outbreak of COVID-19. The CARES Act, among other things, provides certain measures to support individuals and businesses in 107
| ● | to the extent the value of commercial real estate declines, which would also likely negatively impact the value of the loans we own, we could become subject to additional margin calls under our repurchase agreements; |
| ● | our ability to continue to satisfy any additional margin calls from our lenders and to the extent we are unable to satisfy any such margin calls, any acceleration of our indebtedness, increase in the interest rate on advanced funds, termination of our ability to borrow funds from them, or foreclosure by our lenders on our assets; |
| ● | difficulty accessing debt and equity capital on attractive terms, or at all; |
| ● | a severe disruption and instability in the financial markets or deteriorations in credit and financing conditions may jeopardize the solvency and financial wherewithal of counterparties with whom we do business, including our borrowers and could affect our or our counterparties’ ability to make regular payments of principal and interest (whether due to an inability to make such payments, an unwillingness to make such payments, or a waiver of the requirement to make such payments on a timely basis or at all) and our ability to recover the full value of our loan, thus reducing our earnings and liquidity; |
| ● | unavailability of information, resulting in restricted access to key inputs used to derive certain estimates and assumptions made in connection with evaluating our loans for impairments and establishing allowances for loan losses; |
| ● | our ability to remain in compliance with the financial covenants under our borrowings, including in the event of impairments in the value of the loans we own; |
| ● | disruptions to the efficient function of our operations because of, among other factors, any inability to access short-term or long-term financing for the loans we make; |
| ● | our need to sell assets, including at a loss; |
| ● | to the extent we elect or are forced to reduce our loan origination activities, such as the curtailment in the origination of purchased future receivables during the second quarter of 2020; |
| ● | inability of other third-party vendors we rely on to conduct our business to operate effectively and continue to support our business and operations, including vendors that provide IT services, legal and accounting services, or other operational support services; |
| ● | effects of legal and regulatory responses to concerns about the COVID-19 pandemic and related public health issues, which could result in additional regulation or restrictions affecting the conduct of our business; and |
| ● | our ability to ensure operational continuity in the event our business continuity plan is not effective or ineffectually implemented or deployed during a disruption. |

Holders of our common stock may not receive distributions or may receive them on a delayed basis and distributions may not be declared or paid or distributions may decrease over time. Distributions may be paid in shares of common stock, cash or a combination of shares of common stock and cash. Changes in the amount and timing of distributions we pay or in the tax characterization of distributions we pay may adversely affect the market price of our common stock or may result in holders of our common stock being taxed on distributions at a higher rate than initially expected.​Our distributions are driven by a variety of factors, including our minimum distribution requirements under the REIT tax laws and our REIT taxable income (including certain items of non-cash income) as calculated pursuant to the Code. We are generally required to distribute to our stockholders at least 90% of our REIT taxable income, although our reported financial results for GAAP purposes may differ materially from our REIT taxable income.​In the year ended December 31, 2019, we paid $63.3 million of cash distributions on our common stock, representing cumulative distributions of $1.60 per share. On March 11, 2020, the Company's Board of Directors declared a quarterly cash dividend of $0.40 per share of common stock. On March 20, 2020, the Company announced that the dividend would be paid in a combination of cash and common stock on April 30, 2020 to common stockholders of record as of the close of business of March 31, 2020, which resulted in the issuance of approximately 2.8 million shares of common stock on April 30, 2020. On June 15, 2020, the Company's Board of Directors declared a quarterly cash dividend of $0.25 per share of common stock to common stockholders of record as of the close of business on June 30, 2020. On September 15, 2020, the Company's Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock to common stockholders of record as of the close of business on September 30, 2020.​We continue to prudently evaluate our liquidity and review the ability and advisability of paying distributions in the future in light of our financial condition and the applicable minimum distribution requirements under applicable REIT tax laws and regulations. Our ability to continue to pay quarterly distributions in 2020 may be adversely affected by a number of factors, including the risk factors described in this Quarterly Report and in our Annual Report on Form 10-K for the year ended December 31, 2019. Further, we continue to monitor our cash balances and cash flows and may consider paying future distributions in shares of common stock, cash, or a combination of shares of common stock and cash. Any decision regarding the composition of such distributions will be made following an analysis and review of our liquidity, including our cash balances and cash flows, at the time of payment of the distribution. For example, we may determine to distribute shares of common stock in lieu of cash, or in combination with cash, in respect of our distribution obligations, which, among other things, could result in dilution to existing stockholders. ​To the extent we determine that future distributions would represent a return of capital to investors or would not be required under applicable REIT tax laws and regulations, rather than the distribution of income, we may determine to discontinue distribution payments until such time that distributions would again represent a distribution of income or be required under applicable REIT tax laws and regulations. Any reduction or elimination of our payment of distributions would not only reduce the amount of distributions you would receive as a holder of our common stock, but could also have the effect of reducing the market price of our common stock and our ability to raise capital in future securities offerings.​In addition, the rate at which holders of our common stock are taxed on distributions we pay and the characterization of our distribution — be it ordinary income, capital gains, or a return of capital — could have an impact on the market price of our common stock. After we announce the expected characterization of distributions we have paid, the actual characterization (and, therefore, the rate at which holders of our common stock are taxed on the distributions they have received) could vary from our expectations, including due to errors, changes made in the course of preparing our corporate tax returns, or changes made in response to an audit by the Internal Revenue Service, or the IRS, with the result that holders of our common stock could incur greater income tax liabilities than expected.​We may pay taxable distributions in our common stock and cash, in which case stockholders may sell shares of our common stock to pay tax on such distributions, placing downward pressure on the market price of our common stock.​We may satisfy the REIT 90% distribution test with taxable distributions of our common stock. The IRS has issued Revenue Procedure 2017-45 authorizing elective cash/stock distributions to be made by "publicly offered REITs." Pursuant to Revenue Procedure 2017-45, the IRS will treat the distribution of stock pursuant to an elective cash/stock distribution as a distribution of property under Section 301 of the Code (i.e., a distribution), as long as at least 20% of the total distribution is available in cash and certain other parameters detailed in the Revenue Procedure are satisfied. In 109
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
| Period | ​ | Total Number of Shares | ​ | ​ | Average Price Paid per Share | ​ | Total Number of Shares Purchased as Part of Publicly Announced Program(1) | ​ | ​ | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Program(1) |
| July 1 – July 31, 2020 | ​ | - | ​ | $ | - | ​ | - | ​ | $ | 25,000,000 |
| August 1 – August 31, 2020 | ​ | 712,421 | ​ | ​ | 9.73 | ​ | 712,421 | ​ | ​ | 18,068,144 |
| September 1 – September 30, 2020 | ​ | 220,012 | ​ | ​ | 10.36 | ​ | 220,012 | ​ | ​ | 15,788,819 |
| Totals / Averages | ​ | 932,433 | ​ | $ | 9.96 | ​ | 932,433 | ​ | $ | 15,788,819 |
| ​ |
| Exhibitnumber | Exhibit description |
| 2.1 | * | Agreement and Plan of Merger, dated as of April 6, 2016, by and among ZAIS Financial Corp., ZAIS Financial Partners, L.P., ZAIS Merger Sub, LLC, Sutherland Asset Management Corporation and Sutherland Partners, L.P. (incorporated by reference to Exhibit 2.1 of the Registrant’s Current Report on Form 8-K filed April 7, 2016) |
| ​ | ​ | ​ |

| 2.2 | * | Amendment No. 1 to the Agreement and Plan of Merger, dated as of May 9, 2016, by and among ZAIS Financial Corp., ZAIS Financial Partners, L.P., ZAIS Merger Sub, LLC, Sutherland Asset Management Corporation and Sutherland Partners, L.P. (incorporated by reference to Exhibit 2.1 of the Registrant's Current Report on Form 8-K filed May 9, 2016) |
| ​ | ​ | ​ |
| 2.3 | * | Amendment No. 2 to the Agreement and Plan of Merger, dated as of August 4, 2016, by and among ZAIS Financial Corp., ZAIS Financial Partners, L.P., ZAIS Merger Sub, LLC, Sutherland Asset Management Corporation and Sutherland Partners, L.P. (incorporated by reference to Exhibit 2.3 of the Registrant's Current Report on Form 8-K filed November 4, 2016) |
| ​ | ​ | ​ |
| 2.4 | * | Agreement and Plan of Merger, by and among Ready Capital Corporation, ReadyCap Merger Sub LLC and Owens Realty Mortgage, Inc., dated as of November 7, 2018 (incorporated by reference to Exhibit 2.1 of the Registrant's Current Report on Form 8-K filed November 9, 2018) |
| ​ |
| 3.1 | * | Articles of Amendment and Restatement of ZAIS Financial Corp. (incorporated by reference to Exhibit 3.1 of the Registrant’s Form S-11, as amended (Registration No. 333-185938) |
| ​ | ​ | ​ |
| 3.2 | * | Articles Supplementary of ZAIS Financial Corp. (incorporated by reference to Exhibit 3.2 of the Registrant’s Form S-11, as amended (Registration No. 333-185938) |
| ​ | ​ | ​ |
| 3.3 | * | Articles of Amendment and Restatement of Sutherland Asset Management Corporation (incorporated by reference to Exhibit 3.1 of the Registrant’s Current Report on Form 8-K filed November 4, 2016) |
| ​ |
| 3.4 | * | Articles of Amendment of Ready Capital Corporation (incorporated by reference to Exhibit 3.1 of the Registrant's Current Report on Form 8-K filed on September 26, 2018) |
| ​ | ​ | ​ |
| 3.5 | * | Amended and Restated Bylaws of Ready Capital Corporation (incorporated by reference to Exhibit 3.2 to the Registrant’s Form 8-K filed on September 26, 2018) |
| ​ | ​ | ​ |
| 4.1 | * | Specimen Common Stock Certificate of Ready Capital Corporation (incorporated by reference to Exhibit 4.1 to the Registrant’s Form S-4 filed on December 13, 2018) |
| ​ | ​ | ​ |
| 4.2 | * | Indenture, dated February 13, 2017, by and among ReadyCap Holdings, LLC, as issuer, Sutherland Asset Management Corporation, Sutherland Partners, L.P., Sutherland Asset I, LLC and ReadyCap Commercial, LLC, each as guarantors, and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 of the Registrant's Current Report on Form 8-K filed February 13, 2017) |
| ​ | ​ | ​ |
| 4.3 | * | First Supplemental Indenture, dated February 13, 2017, by and among ReadyCap Holdings, LLC, as issuer, Sutherland Asset Management Corporation, Sutherland Partners, L.P., Sutherland Asset I, LLC, ReadyCap Commercial, LLC, each as guarantors and U.S. Bank National Association, as trustee and as collateral agent, including the form of 7.5% Senior Secured Notes due 2022 and the related guarantees (incorporated by reference to Exhibit 4.2 of the Registrant's Current Report on Form 8-K filed February 13, 2017) |
| ​ | ​ | ​ |
| 4.4 | * | Indenture, dated as of August 9, 2017, by and between Sutherland Asset Management Corporation and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 of the Registrant's Current Report on Form 8-K filed August 9, 2017) |
| ​ | ​ | ​ |
| 4.5 | * | First Supplemental Indenture, dated as of August 9, 2017, by and between Sutherland Asset Management Corporation and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.3 of the Registrant's Current Report on Form 8-K filed August 9, 2017)​ |
| ​ | ​ | ​ |
| 4.6 | * | Second Supplemental Indenture, dated as of April 27, 2018, by and between Sutherland Asset Management Corporation and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 of the Registrant's Current Report on Form 8-K filed April 27, 2018) |
| ​ | ​ | ​ |
| 4.7 | * | Third Supplemental Indenture, dated as of February 26, 2019, by and between Ready Capital Corporation and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.7 of the Registrant's Current Report on Form 10-K filed March 13, 2019) |

| ​ | ​ | ​ |
| 4.8 | * | Amendment No. 1, dated as of February 26, 2019, to the First Supplemental Indenture, dated as of August 9, 2017, by and between Ready Capital Corporation and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.8 of the Registrant's Current Report on Form 10-K filed March 13, 2019) |
| ​ | ​ | ​ |
| 4.9 | * | Amendment No. 1, dated as of February 26, 2019, to the Second Supplemental Indenture, dated as of April 27, 2018, by and between Ready Capital Corporation and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.9 of the Registrant's Current Report on Form 10-K filed March 13, 2019) |
| ​ | ​ | ​ |
| 4.10 | * | Fourth Supplemental Indenture, dated as of July 22, 2019, by and between Ready Capital Corporation and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.3 of the Registrant's Current Report on Form 8-K filed July 22, 2019)​ |
| 10.1 | * | Third Amended and Restated Agreement of Limited Partnership of Sutherland Partners, L.P., dated as of March 5, 2019, by and among Ready Capital Corporation, as General Partner, and the limited partners listed on Exhibit A thereto (incorporated by reference to Exhibit 10.8 to the Registrant’s Form 10-K filed on March 13, 2019) |
| ​ | ​ | ​ |
| 31.1 | ​ | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| ​ | ​ | ​ |
| 31.2 | ​ | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| ​ | ​ | ​ |
| 32.1 | ** | Certification of the Chief Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| ​ | ​ | ​ |
| 32.2 | ** | Certification of the Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| ​ | ​ | ​ |
| 101.INS | ​ | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| ​ | ​ | ​ |
| 101.SCH | ​ | Inline XBRL Taxonomy Extension Schema Document |
| ​ | ​ | ​ |
| 101.CAL | ​ | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| ​ | ​ | ​ |
| 101.DEF | ​ | Inline XBRL Taxonmy Extension Definition Linkbase Document |
| ​ | ​ | ​ |
| 101.LAB | ​ | Inline XBRL Taxonomy Extension Label Linkbase Document |
| ​ | ​ | ​ |
| 101.PRE | ​ | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| ​ | ​ | ​ |
| 104 | ​ | The cover page from this quarterly Report on Form 10-Q for the quarter ended September 30, 2020, formatted in Inline XBRL (and contained in Exhibit 101). |

| Date: November 6, 2020 | By: | /s/ Thomas E. Capasse |
| ​ | Thomas E. Capasse |
| ​ | Chairman of the Board and Chief Executive |
| ​ | (Principal Executive Officer) |
| ​ | ​ |
| ​ | ​ |
| ​ | ​ |
| ​ | ​ |
| Date: November 6, 2020 | By: | /s/ Andrew Ahlborn |
| ​ | Andrew Ahlborn |
| ​ | Chief Financial Officer |
| ​ | (Principal Accounting and Financial Officer) |
| ​ | ​ |
| ​ | ​ |
| ​ | ​ |
| ​ | ​ |


Question: Calculate the return on assets (ROA) for the "Residential Mortgage Banking" segment for the year 2020 (in percentage).

Python solution:
def solution():
    #Define variables name and value
    net_income_segment = 23419
    total_assets_segment = 640112

    #Do math calculation to get the answer
    roa_segment = (net_income_segment / total_assets_segment) * 100
    answer = roa_segment
    return answer


Answer: 3.6585784988