RC News & Events

The U.S. Department of Agriculture is tightening oversight of its lending programs by removing 10 lenders linked to roughly $620M in delinquent loans, signaling a sharper focus on credit quality and compliance risk within its portfolio, while Agriculture Secretary Brooke Rollins emphasized a "zero tolerance" stance toward lender misconduct and noncompliance, American Banker's John Reosti reports. Projects in default include Michigan's Pine Mountain Timberstone Ski & Gold Resort, Got Wine, LLC. in Illinois, Hoosier Hospitality of French Lick LLC in Indiana, and construction financing for U.S. Eagle Federal Credit Union in Ohio. Other lenders no longer able to offer OneRD Guaranteed Loans include Greater Nevada Credit Union, U.S. Eagle Federal Credit Union, Community Bank & Trust - West Georgia, Genisys Credit Union, Byline Bank (BY), Optus Bank, Celtic Bank, Bank of Montgomery Bank, and ReadyCap Commercial (RC).

Reports Q1 distributable loss per common share before realized losses of (33c). Reports Q1 book value $7.43 per share. "Our Q1 results reflect ongoing execution of our previously shared balance sheet repositioning plan that focuses on de-levering to generate liquidity in excess of 2026 debt maturities, thereby resetting Ready Capital's financials for long-term success," said CEO Thomas Capasse. "Year-to-date we have generated $1.4B in cash from loan sales and liquidations to facilitate the repayment of $1.1B of asset level financing and $184M of corporate debt. These actions have resulted in a negative impact on earnings and book value, but are necessary to return the company to profitability. With our remaining large-scale asset sales expected to close by the end of the second quarter, we anticipate the material book value pressure of the recent quarters will begin to subside, leaving a lower-leverage platform positioned to restart growth through our core CRE debt investing and SBA 7(a) lending businesses."