$RC-PE

ZAIS Financial Corp.

CIK:0001527590|SEC Filings

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income	$ 77,401	$ 152,735	$ 159,131	$ 307,702
Interest expense	(82,853)	(135,837)	(179,687)	(276,303)
Net interest income (loss) before (provision for) recovery of loan losses	(5,452)	16,898	(20,556)	31,399
(Provision for) recovery of loan losses	(21,554)	(8,640)	(92,461)	100,928
Net interest income (loss) after (provision for) recovery of loan losses	(27,006)	8,258	(113,017)	132,327
Non-interest income
Net realized gain (loss) on financial instruments and real estate owned	(22,221)	18,214	(82,306)	28,883
Net unrealized gain (loss) on financial instruments	(4,173)	(1,614)	(11,093)	(3,364)
Valuation allowance, loans held for sale	2,447	(39,746)	(4,110)	(139,464)
Servicing income, net of amortization and impairment of $11,207 and $17,794 for the three and six months ended June 30, 2026, and $12,874 and $18,168 for the three and six months ended June 30, 2025, respectively	72	(304)	5,493	6,152
Gain (loss) on bargain purchase	0	(14,381)	0	88,090
Income (loss) on unconsolidated joint ventures	1,276	(144)	3,335	(4,126)
Other income	14,214	11,304	32,279	22,894
Total non-interest income (expense)	(8,385)	(26,671)	(56,402)	(935)
Non-interest expense
Professional fees	(7,671)	(6,368)	(14,326)	(11,856)
Loan servicing expense	(3,439)	(11,038)	(19,113)	(26,882)
Transaction related expenses	(512)	(639)	(847)	(3,333)
Impairment on real estate	(952)	(4,268)	(483)	(6,614)
Other operating expenses	(33,268)	(16,133)	(62,282)	(32,256)
Total non-interest expense	(77,573)	(70,277)	(160,306)	(142,879)
Loss from continuing operations before benefit for income taxes	(112,964)	(88,690)	(329,725)	(11,487)
Income tax benefit	13,281	39,939	29,955	45,146
Net income (loss) from continuing operations	(99,683)	(48,751)	(299,770)	33,659
Discontinued operations (refer to Note 9)
Loss from discontinued operations before income tax benefit	0	(6,567)	0	(7,161)
Income tax benefit	0	1,641	0	1,790
Net loss from discontinued operations	0	(4,926)	0	(5,371)
Net income (loss)	(99,683)	(53,677)	(299,770)	28,288
Less: Dividends on preferred stock	1,999	1,999	3,998	3,998
Less: Net income attributable to non-controlling interest	1,848	1,814	3,490	4,274
Net income (loss) attributable to Ready Capital Corporation	$ (103,530)	$ (57,490)	$ (307,258)	$ 20,016
Total earnings per common share - basic
Earnings per common share from continuing operations - basic (in dollars per share)	$ (0.63)	$ (0.31)	$ (1.87)	$ 0.15
Earnings per common share from discontinued operations - basic (in dollars per share)	0.00	(0.03)	0.00	(0.03)
Total earnings per common share - basic (in dollars per share)	(0.63)	(0.34)	(1.87)	0.12
Total earnings per common share - diluted
Earnings per common share from continuing operations - diluted (in dollars per share)	(0.63)	(0.31)	(1.87)	0.15
Earnings per common share from discontinued operations - diluted (in dollars per share)	0.00	(0.03)	0.00	(0.03)
Total earnings per common share - diluted (in dollars per share)	$ (0.63)	$ (0.34)	$ (1.87)	$ 0.12
Weighted-average shares outstanding
Basic (in shares)	165,101,861	167,749,917	164,366,053	166,465,234
Diluted (in shares)	172,781,180	170,673,088	171,173,393	169,320,001
Dividends declared per share of common stock (in dollars per share)	$ 0.010	$ 0.125	$ 0.02	$ 0.25
Nonrelated Party
Non-interest expense
Employee compensation and benefits and Allocated employee compensation and benefits from related party	$ (24,590)	$ (23,159)	$ (48,438)	$ (44,413)
Related Party
Non-interest expense
Employee compensation and benefits and Allocated employee compensation and benefits from related party	(3,376)	(3,600)	(6,976)	(6,876)
Management fees – related party	$ (3,765)	$ (5,072)	$ (7,841)	$ (10,649)

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows From Operating Activities:
Net income (loss)	$ (299,770)	$ 28,288
Net loss from discontinued operations, net of tax	0	(5,371)
Net income (loss) from continuing operations	(299,770)	33,659
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization of premiums, discounts, and debt issuance costs, net	30,316	27,040
Stock-based compensation	4,112	3,419
Provision for (recovery of) loan losses	92,461	(100,928)
Impairment (recovery) on real estate owned, held for sale	483	6,614
Depreciation and amortization on real estate owned	3,151	0
Repair and denial reserve	2,707	1,158
Paid-in-kind accrued interest	(801)	(1,048)
Valuation allowance, loans held for sale	4,110	139,464
Net (income) loss of unconsolidated joint ventures, net of distributions	(2,178)	6,451
Realized (gains) losses, net	82,135	(27,506)
Unrealized (gains) losses, net	10,452	2,499
Loss on deconsolidation of securitization trust	2,840	0
Bargain purchase gain	0	(88,090)
Loans, held for sale, net	703,166	50,174
Changes in operating assets and liabilities:
Derivative instruments	5,160	(996)
Assets of consolidated VIEs (excluding loans, net), accrued interest and due from servicers	5,815	50,882
Receivable from third parties	(7,246)	2,656
Other assets	19,384	(105,016)
Accounts payable and other accrued liabilities	8,999	31,554
Net cash provided by operating activities from continuing operations	665,296	31,986
Net cash used for operating activities from discontinued operations	0	(23,784)
Net cash provided by operating activities	665,296	8,202
Cash Flows From Investing Activities:
Origination of loans	(164,053)	(300,692)
Proceeds from disposition and principal payment of loans	1,016,550	1,034,968
Funding of investments held to maturity	0	(2,385)
Proceeds from sale and principal payment of mortgage-backed securities	3,747	0
Funding of real estate, held for sale	(1,143)	(215)
Proceeds from sale of real estate, held for sale	91,592	8,312
Investment in unconsolidated joint ventures	(9,928)	(11,897)
Distributions in excess of cumulative earnings from unconsolidated joint ventures	7,872	2,928
Payment of liabilities under participation agreements	0	(1,335)
Net cash provided by (used for) business acquisitions	0	16,020
Net cash provided by investing activities from continuing operations	944,637	745,704
Net cash provided by investing activities from discontinued operations	0	43,316
Net cash provided by investing activities	944,637	789,020
Cash Flows From Financing Activities:
Proceeds from secured borrowings	1,067,088	2,385,296
Repayment of secured borrowings	(1,978,398)	(917,296)
Repayment of the Paycheck Protection Program Liquidity Facility borrowings	(8,592)	(8,134)
Proceeds from issuance of securitized debt obligations of consolidated VIEs	135,657	0
Repayment of securitized debt obligations of consolidated VIEs	(673,887)	(2,075,012)
Proceeds from sale of retained beneficial interests	24,065	0
Repayment of corporate debt	(183,994)	(231,511)
Proceeds from senior secured note	0	290,250
Repayment of guaranteed loan financing	(49,897)	(83,492)
Payment of deferred financing costs	(5,887)	(18,099)
Common stock repurchased	0	(55,151)
Settlement of share-based awards in satisfaction of withholding tax requirements	(539)	(1,948)
Dividend payments	(7,327)	(67,886)
Net cash used for financing activities from continuing operations	(1,681,711)	(782,983)
Net cash used for financing activities from discontinued operations	0	(4,324)
Net cash used for financing activities	(1,681,711)	(787,307)
Net increase (decrease) in cash, cash equivalents, and restricted cash including cash classified within assets held for sale	(71,778)	9,915
Less: Net increase (decrease) in cash and cash equivalents within assets held for sale	0	(29,792)
Net increase (decrease) in cash, cash equivalents, and restricted cash	(71,778)	39,707
Cash, cash equivalents, and restricted cash beginning balance	249,534	182,774
Cash, cash equivalents, and restricted cash ending balance	177,756	222,481
Supplemental disclosures:
Cash paid for interest	151,131	263,125
Cash paid (received) for income taxes	160	(258)
Non-cash investing activities
Loans transferred from loans, held for sale to loans, net	37,270	72,826
Loans transferred from loans, net to loans, held for sale	322,952	722,797
Loans transferred to real estate owned, held for sale	49,633	35,546
Deconsolidation of assets in securitization trusts	26,300	0
Consolidation of assets in securitization trusts	475,919	0
Contingent consideration in connection with acquisitions	0	15,242
Non-cash financing activities
Deconsolidation of borrowings in securitization trusts	22,973	0
Consolidation of borrowings in securitization trusts	475,919	0
Shares and OP units issued in connection with merger transactions	0	64,600
Conversion of OP units to common stock	0	1,197
Cash, cash equivalents, and restricted cash reconciliation
Cash and cash equivalents	124,149	162,935
Restricted cash	50,182	56,769
Cash, cash equivalents, and restricted cash in assets of consolidated VIEs	3,425	2,777
Cash, cash equivalents, and restricted cash ending balance	$ 177,756	$ 222,481

UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and cash equivalents	$ 124,149	$ 207,841
Restricted cash	50,182	39,746
Loans, net (including $388 and $737 held at fair value)	3,409,500	3,500,298
Loans, held for sale (including $61,314 and $73,094 held at fair value and net of valuation allowance of $70,867 and $67,612)	278,214	585,820
Mortgage-backed securities	31,587	34,501
Investment in unconsolidated joint ventures (including $5,294 and $5,737 held at fair value)	165,658	161,424
Derivative instruments	3,096	6,740
Servicing rights	117,463	126,279
Real estate owned	572,850	620,225
Other assets	466,161	508,238
Assets of consolidated VIEs	1,045,056	1,978,684
Total Assets	6,263,916	7,769,796
Liabilities
Senior secured notes, net	723,915	722,729
Corporate debt, net	470,372	652,487
Guaranteed loan financing	950,103	524,091
Contingent consideration	22,265	18,698
Derivative instruments	60	1,432
Dividends payable	3,665	3,633
Loan participations sold	56,616	56,616
Due to third parties	5,408	3,135
Accounts payable and other accrued liabilities	165,620	171,636
Total Liabilities	4,913,679	6,118,168
Preferred stock Series C, liquidation preference $25.00 per share (refer to Note 20)	8,361	8,361
Commitments & contingencies (refer to Note 24)
Stockholders’ Equity
Preferred stock Series E, liquidation preference $25.00 per share (refer to Note 20)	111,378	111,378
Common stock, $0.0001 par value, 500,000,000 shares authorized, 165,209,516 and 163,010,012 shares issued and outstanding, respectively	17	17
Additional paid-in capital	2,267,394	2,264,355
Retained deficit	(1,118,135)	(807,522)
Accumulated other comprehensive loss	(21,448)	(24,196)
Total Ready Capital Corporation equity	1,239,206	1,544,032
Non-controlling interests	102,670	99,235
Total Stockholders’ Equity	1,341,876	1,643,267
Total Liabilities, Redeemable Preferred Stock, and Stockholders’ Equity	6,263,916	7,769,796
Consolidated Excluding VIEs
Assets
Loans, held for sale (including $61,314 and $73,094 held at fair value and net of valuation allowance of $70,867 and $67,612)	278,214	585,820
Liabilities
Secured borrowings and Securitized debt obligations of consolidated VIEs, net	1,876,713	2,788,926
Consolidated VIEs
Assets
Cash and cash equivalents	5	3
Restricted cash	3,420	1,944
Loans, held for sale (including $61,314 and $73,094 held at fair value and net of valuation allowance of $70,867 and $67,612)	0	125,107
Real estate owned	15,288	15,288
Assets of consolidated VIEs	1,045,056	1,978,684
Liabilities
Secured borrowings and Securitized debt obligations of consolidated VIEs, net	638,942	1,174,785
Due to third parties	2,506	2,517
Accounts payable and other accrued liabilities	1,048	0
Total Liabilities	$ 642,496	$ 1,177,302