Ready Capital (RC) 10-Q 8 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Document and Entity Information
Entity Registrant Name	READY CAPITAL CORPORATION
Entity Central Index Key	0001527590
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2019
Entity Common Stock, Shares Outstanding		44,415,479
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 41,925	$ 54,406
Restricted cash	38,019	28,921
Loans, net (including $20,409 and $22,664 held at fair value)	1,002,676	1,193,392
Loans, held for sale, at fair value	177,507	115,258
Mortgage backed securities, at fair value	99,407	91,937
Loans eligible for repurchase from Ginnie Mae	69,101	74,180
Investment in unconsolidated joint ventures	47,551	33,438
Derivative instruments	3,670	2,070
Servicing rights (including $85,658 and $93,065 held at fair value)	114,761	120,062
Receivable from third parties	2,763	8,888
Real estate acquired in settlement of loans, held for sale	65,834	7,787
Other assets	68,399	55,447
Assets of consolidated VIEs	2,108,710	1,251,057
Total Assets	3,840,323	3,036,843
Liabilities
Secured borrowings	988,868	834,547
Securitized debt obligations of consolidated VIEs, net	1,567,113	905,367
Convertible notes, net	110,506	109,979
Senior secured notes, net	179,086	178,870
Corporate debt, net	48,795	48,457
Guaranteed loan financing	28,445	229,678
Liabilities for loans eligible for repurchase from Ginnie Mae	69,101	74,180
Derivative instruments	9,032	3,625
Dividends payable	18,292	13,346
Accounts payable and other accrued liabilities	73,679	74,719
Total Liabilities	3,092,917	2,472,768
Stockholders’ Equity
Common stock, $0.0001 par value, 500,000,000 shares authorized, 44,415,479 and 32,105,112 shares issued and outstanding, respectively	4	3
Additional paid-in capital	720,812	540,478
Retained earnings	14,914	5,272
Accumulated other comprehensive loss	(7,703)	(922)
Total Ready Capital Corporation equity	728,027	544,831
Non-controlling interests	19,379	19,244
Total Stockholders’ Equity	747,406	564,075
Total Liabilities and Stockholders’ Equity	$ 3,840,323	$ 3,036,843

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Parenthetical information
Loan receivable allowance	$ 20,409	$ 22,664
Servicing rights held at fair value	$ 85,658	$ 93,065
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized capital	500,000,000	500,000,000
Common stock, issued	44,415,479	32,105,112
Common stock, outstanding	44,415,479	32,105,112

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$ 57,034	$ 41,858	$ 105,787	$ 79,007
Interest expense	(35,753)	(26,407)	(71,529)	(49,071)
Net interest income before provision for loan losses	21,281	15,451	34,258	29,936
Provision for loan losses	(1,348)	397	(1,866)	229
Net interest income after provision for loan losses	19,933	15,848	32,392	30,165
Non-interest income
Residential mortgage banking activities	21,021	17,255	35,608	31,279
Net realized gain on financial instruments and real estate owned	6,255	8,620	13,537	20,851
Net unrealized gain (loss) on financial instruments	(7,006)	4,457	(13,918)	7,464
Servicing income, net of amortization and impairment of $853 and $2,616 for the three and six months ended June 30, 2019, and $1,229 and $2,580 for the three and six months ended June 30, 2018, respectively	7,811	6,627	14,563	13,037
Other income	2,792	1,826	3,692	3,160
Income on unconsolidated joint ventures	2,083	1,503	5,012	7,243
Gain on bargain purchase			30,728
Total non-interest income	32,956	40,288	89,222	83,034
Non-interest expense
Employee compensation and benefits	(12,509)	(14,272)	(23,957)	(29,592)
Allocated employee compensation and benefits from related party	(1,250)	(1,200)	(2,103)	(2,400)
Variable expenses on residential mortgage banking activities	(13,501)	(7,493)	(22,677)	(9,783)
Professional fees	(1,586)	(2,401)	(3,415)	(5,049)
Management fees – related party	(2,495)	(2,036)	(4,492)	(4,049)
Incentive fees – related party		(269)		(676)
Loan servicing expense	(4,571)	(3,000)	(8,219)	(7,093)
Merger related expenses	(603)		(6,070)
Other operating expenses	(8,085)	(8,916)	(14,947)	(16,927)
Total non-interest expense	(44,600)	(39,587)	(85,880)	(75,569)
Income before provision for income taxes	8,289	16,549	35,734	37,630
Provision for income (taxes) benefit	2,956	(665)	5,959	(3,228)
Net income	11,245	15,884	41,693	34,402
Less: Net income attributable to non-controlling interest	276	588	1,257	1,252
Net income attributable to Ready Capital Corporation	$ 10,969	$ 15,296	$ 40,436	$ 33,150
Earnings per basic common share
Earnings per common share - basic	$ 0.25	$ 0.48	$ 1.05	$ 1.03
Earnings per diluted common share
Earnings per common share - diluted	$ 0.25	$ 0.48	$ 1.05	$ 1.03
Weighted-average shares outstanding
Basic	44,425,598	32,073,717	38,524,023	32,055,110
Diluted	44,431,263	32,092,750	38,527,317	32,069,499
Dividends declared per share of common stock	$ 0.40	$ 0.40	$ 0.80	$ 0.77

CONSOLIDATED STATEMENTS OF IN_2

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED STATEMENTS OF INCOME
Amortization and impairment of servicing rights	$ 853	$ 1,229	$ 2,616	$ 2,580

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net Income	$ 11,245	$ 15,884	$ 41,693	$ 34,402
Other comprehensive income (loss) - net change by component
Net change in hedging derivatives (cash flow hedges)	(6,579)		(6,997)
Other comprehensive income (loss)	(6,579)		(6,997)
Comprehensive income (loss)	4,666	15,884	34,696	34,402
Less: Comprehensive income attributable to non-controlling interests	(72)	(588)	(1,041)	(1,252)
Comprehensive income attributable to Ready Capital Corporation	$ 4,594	$ 15,296	$ 33,655	$ 33,150

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total Ready Capital Corporation Equity	Common Stock	Additional Paid-in-Capital	Retained Earnings (Deficit)	Accumulated Other Comprehensive Loss	Noncontrolling Interests	Total
Balance at beginning of period at Dec. 31, 2017	$ 536,073	$ 3	$ 539,455	$ (3,385)		$ 19,394	$ 555,467
Balance at beginning of period (in shares) at Dec. 31, 2017		31,996,440
Increase (Decrease) in Stockholders' Equity
Dividend declared on common stock ($0.77, $0.80, $0.40 and $0.40 per share for six month ended June 30, 2018 and 2019 and three month ended June 30, 2018 and 2019 respectively)	(24,803)			(24,803)			(24,803)
Dividend declared on OP units						(872)	(872)
Contributions, net						37	37
Equity component of 2017 convertible note issuance	(158)		(158)			(6)	(164)
Stock-based compensation	287		160	127			287
Stock-based compensation (shares)		8,617
Conversion of OP units into common stock	577			577		(577)
Conversion of OP units into common stock (in shares)		33,658
Manager incentive fee paid in stock	204			204			204
Manager incentive fee paid in stock (in shares)		13,274
Net Income	33,150			33,150		1,252	34,402
Balance at end of period at Jun. 30, 2018	545,330	$ 3	539,457	5,870		19,228	564,558
Balance at end of period (in shares) at Jun. 30, 2018		32,051,989
Balance at beginning of period at Mar. 31, 2018	542,019	$ 3	539,457	2,559		19,737	561,756
Balance at beginning of period (in shares) at Mar. 31, 2018		31,996,440
Increase (Decrease) in Stockholders' Equity
Dividend declared on common stock ($0.77, $0.80, $0.40 and $0.40 per share for six month ended June 30, 2018 and 2019 and three month ended June 30, 2018 and 2019 respectively)	(12,893)			(12,893)			(12,893)
Dividend declared on OP units						(454)	(454)
Distributions, net						(63)	(63)
Equity component of 2017 convertible note issuance	(80)		(80)			(3)	(83)
Stock-based compensation	207		80	127			207
Stock-based compensation (shares)		8,617
Conversion of OP units into common stock	577			577		(577)
Conversion of OP units into common stock (in shares)		33,658
Manager incentive fee paid in stock	204			204			204
Manager incentive fee paid in stock (in shares)		13,274
Net Income	15,296			15,296		588	15,884
Balance at end of period at Jun. 30, 2018	545,330	$ 3	539,457	5,870		19,228	564,558
Balance at end of period (in shares) at Jun. 30, 2018		32,051,989
Balance at beginning of period at Dec. 31, 2018	544,831	$ 3	540,478	5,272	$ (922)	19,244	564,075
Balance at beginning of period (in shares) at Dec. 31, 2018		32,105,112
Increase (Decrease) in Stockholders' Equity
Dividend declared on common stock ($0.77, $0.80, $0.40 and $0.40 per share for six month ended June 30, 2018 and 2019 and three month ended June 30, 2018 and 2019 respectively)	(30,794)			(30,794)			(30,794)
Dividend declared on OP units						(894)	(894)
Shares issued pursuant to ORM merger transaction	179,321	$ 1	179,320				$ 179,321
Shares issued pursuant to ORM merger transaction (in shares)		12,223,552					12,223,552
Offering costs	(73)		(73)			(2)	$ (75)
Distributions, net						(5)	(5)
Equity component of 2017 convertible note issuance	(172)		(172)			(5)	(177)
Stock-based compensation	1,026		1,026				1,026
Stock-based compensation (shares)		71,876
Manager incentive fee paid in stock	233		233				233
Manager incentive fee paid in stock (in shares)		14,939
Net Income	40,436			40,436		1,257	41,693
Other comprehensive loss	(6,781)				(6,781)	(216)	(6,997)
Balance at end of period at Jun. 30, 2019	728,027	$ 4	720,812	14,914	(7,703)	19,379	747,406
Balance at end of period (in shares) at Jun. 30, 2019		44,415,479
Balance at beginning of period at Mar. 31, 2019	741,146	$ 4	720,680	21,790	(1,328)	19,743	760,889
Balance at beginning of period (in shares) at Mar. 31, 2019		44,395,713
Increase (Decrease) in Stockholders' Equity
Dividend declared on common stock ($0.77, $0.80, $0.40 and $0.40 per share for six month ended June 30, 2018 and 2019 and three month ended June 30, 2018 and 2019 respectively)	(17,845)			(17,845)			(17,845)
Dividend declared on OP units						(447)	(447)
Offering costs	(73)		(73)			(2)	(75)
Contributions, net						15	15
Equity component of 2017 convertible note issuance	(88)		(88)			(2)	(90)
Stock-based compensation	293		293				293
Stock-based compensation (shares)		19,766
Net Income	10,969			10,969		276	11,245
Other comprehensive loss	(6,375)				(6,375)	(204)	(6,579)
Balance at end of period at Jun. 30, 2019	$ 728,027	$ 4	$ 720,812	$ 14,914	$ (7,703)	$ 19,379	$ 747,406
Balance at end of period (in shares) at Jun. 30, 2019		44,415,479

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	Jun. 11, 2019	Mar. 12, 2019	Dec. 12, 2018	Sep. 11, 2018	Jun. 12, 2018	Mar. 14, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Stockholders' Equity
Dividends declared per share of common stock	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.37	$ 0.40	$ 0.40	$ 0.80	$ 0.77

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Cash Flows From Operating Activities:
Net income	$ 11,245	$ 15,884	$ 41,693	$ 34,402
Net income from continuing operations	11,245	15,884	41,693	34,402
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Discount accretion and premium amortization of financial instruments, net			(2,613)	(4,413)
Amortization of guaranteed loan financing, deferred financing costs, and intangible assets			11,762	11,682
Provision for loan losses	1,348	(397)	1,866	(229)
Charge off of real estate acquired in settlement of loans	375	981	680	1,000
Decrease in repair and denial reserve			794
Net settlement of derivative instruments			(4,199)	4,307
Purchase of loans, held for sale, at fair value			(1,349)	(15,791)
Origination of loans, held for sale, at fair value			(1,084,686)	(1,310,994)
Proceeds from disposition and principal payments of loans, held for sale, at fair value			1,057,121	1,385,412
Equity in net income of unconsolidated joint ventures, net of distributions			(5,012)	1,048
Gain on sale of mortgages held for sale included in Residential mortgage banking activities	(13,886)	(11,795)	(24,085)	(18,074)
Gain (loss) on derivatives included in Residential mortgage banking activities	(732)	868	(1,096)	(293)
Creation of servicing rights, net of payoffs	(3,779)	(3,665)	(6,060)	(8,073)
Gain on bargain purchase			(30,728)
Net realized gains on financial instruments and real estate owned	(6,255)	(8,620)	(13,537)	(20,851)
Net unrealized (gains) losses on financial instruments	7,006	(4,457)	13,918	(7,464)
Net changes in operating assets and liabilities
Assets of consolidated VIEs (excluding loans, net), accrued interest and due from servicers			(10,084)	(922)
Receivable from third parties			6,125	5,776
Other assets			(8,652)	3,114
Accounts payable and other accrued liabilities			135	(1,415)
Net cash provided by operating activities			(58,007)	58,222
Cash Flow From Investing Activities:
Origination of loans			(567,955)	(484,420)
Purchase of loans			(501,417)	(270,309)
Purchase of mortgage backed securities, at fair value			(9,593)	(10,419)
Purchase of real estate				(1,385)
Funding of unconsolidated joint venture			(6,951)
Purchase of servicing rights			(894)	(362)
Proceeds on unconsolidated joint venture in excess of earnings recognized			6,466	12,723
Payment of liability under participation agreements, net of proceeds received				(91)
Proceeds from disposition and principal payment of loans			379,493	470,794
Proceeds from sale and principal payment of mortgage backed securities, at fair value			5,453	4,453
Proceeds from sale of real estate			9,968	842
Cash acquired in connection with the ORM merger			10,822
Net cash (used in) provided by investing activities			(674,608)	(278,174)
Cash Flows From Financing Activities:
Proceeds from secured borrowings			2,509,321	1,909,249
Proceeds from issuance of securitized debt obligations of consolidated VIEs			869,940	365,519
Proceeds from senior secured note offering				41,328
Proceeds from corporate debt				50,000
Payment of contingent consideration			(1,207)	(8,967)
Payment of secured borrowings			(2,366,918)	(1,862,260)
Payment of securitized debt obligations of consolidated VIEs			(202,085)	(164,092)
Payment of guaranteed loan financing			(26,645)	(34,895)
Payment of promissory note			(859)
Payment of deferred financing costs			(15,040)	(13,123)
Payment of offering costs			(75)
Contributions, net				44
Distributions			(5)
Dividend payments			(26,742)	(24,631)
Net cash (used in) provided by financing activities			739,685	258,172
Net increase (decrease) in cash, cash equivalents, and restricted cash			7,070	38,220
Cash, cash equivalents, and restricted cash at beginning of period			94,970	90,954
Cash, cash equivalents, and restricted cash at end of period	102,040	129,174	102,040	129,174
Supplemental disclosure of operating cash flow
Cash paid for interest			57,916	42,580
Cash paid (received) for income taxes			(2,749)	1,058
Stock-based compensation			1,026	287
Supplemental disclosure of non-cash investing activities
Loans transferred from Loans, held for sale, at fair value to Loans, net			750	$ 670
Deconsolidation of assets in securitization trusts			$ 177,815
Supplemental disclosure of non-cash financing activities
Common stock issued in connection with ORM Merger			12,223,552
Deconsolidation of borrowings in securitization trusts			$ 177,815
Incentive shares issued to investment manager pursuant to management agreement			233	204
Cash and restricted cash reconciliation
Cash and cash equivalents	41,925	105,833	$ 41,925	$ 105,833
Restricted cash	38,019	15,108	38,019	15,108
Cash, cash equivalents and restricted cash in Assets of consolidated VIEs	22,096	8,233	22,096	8,233
Cash, cash equivalents, and restricted cash at end of period	$ 102,040	$ 129,174	$ 102,040	$ 129,174

Organization

Organization	6 Months Ended
	Jun. 30, 2019
Organization
Organization	Note 1 – Organization On September 26, 2018, Sutherland Asset Management Corporation filed Articles of Amendment to its charter (the “Articles of Amendment”) with the State Department of Assessments and Taxation of Maryland, to change its name to Ready Capital Corporation (the “Company” or “Ready Capital” and together with its subsidiaries “we”, “us” and “our”), a Maryland corporation. In connection with the name change, the Company’s trading symbol on the New York Stock Exchange changed from “SLD” to “RC” for shares of the Company’s common stock. The Company is externally managed and advised by Waterfall Asset Management, LLC (“Waterfall” or the “Manager”), an investment advisor registered with the United States Securities and Exchange Commission under the Investment Advisors Act of 1940, as amended. Sutherland Partners, LP (the “Operating Partnership”) holds substantially all of our assets and conducts substantially all of our business. As of June 30, 2019 and December 31, 2018, the Company owned approximately 97.6% and 96.5%, of the operating partnership units (“OP units”) of the Operating Partnership, respectively. The Company, as sole general partner of the Operating Partnership, has responsibility and discretion in the management and control of the Operating Partnership, and the limited partners of the Operating Partnership, in such capacity, have no authority to transact business for, or participate in the management activities of the Operating Partnership. Therefore, the Company consolidates the Operating Partnership. The Company is a multi-strategy real estate finance company that originates, acquires, finances and services small to medium balance commercial (“SBC”) loans, Small Business Administration (“SBA”) loans, residential mortgage loans, and to a lesser extent, mortgage backed securities (“MBS”) collateralized primarily by SBC loans, or other real estate-related investments. SBC loans represent a special category of commercial loans, sharing both commercial and residential loan characteristics. SBC loans are generally secured by first mortgages on commercial properties, but because SBC loans are also often accompanied by collateralization of personal assets and subordinate lien positions, aspects of residential mortgage credit analysis are utilized in the underwriting process. 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, with the remaining amounts recorded in Corporate- Other . Our acquisition and origination platforms consist of the following four operating segments: · Loan 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. · 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 (“RCC”). Additionally, as part of this segment, we originate and service multi-family loan products under the Federal Home Loan Mortgage Corporation (“Freddie Mac” and the “Freddie Mac program”). These originated loans are generally held-for-investment or placed into securitization structures. · 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 (“RCL”). 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. In the future, we may originate SBC loans for real estate under the SBA 504 loan program, under which the SBA guarantees subordinated, long-term financing. These originated loans are either held-for-investment, placed into securitization structures, or sold. · Residential Mortgage Banking . In connection with our merger with ZAIS Financial on October 31, 2016, we added a 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. On March 29, 2019, the Company completed the acquisition of Owens Realty Mortgage, Inc. (“ORM”), through a merger of ORM with and into a wholly owned subsidiary of the Company, in exchange for approximately 12.2 million shares of the Company’s common stock. In accordance with the Merger Agreement, the number of shares of the Company’s common stock issued was based on an exchange ratio of 1.441 per share. The total purchase price for the merger of $179.3 million consists exclusively of the Company’s common stock issued in exchange for shares of ORM common stock and cash paid in lieu of fractional shares of the Company’s common stock, and was based on the $14.67 closing price of the Company’s common stock on March 29, 2019. Upon the closing of the transaction, the Company’s historical stockholders owned approximately 72% of the combined company’s stock, while historical ORM stockholders owned approximately 28% of the combined company’s stock. The acquisition of ORM is expected to increase the Company’s equity capitalization, which will support continued growth of the Company’s platform and execution of the Company’s strategy, and provide the Company with improved scale, liquidity and capital alternatives, including additional borrowing capacity. Also, the stockholder base resulting from the acquisition of ORM is expected to enhance the trading volume and liquidity for our stockholders and support a greater level of institutional investor interest in our businesses. The combination of the Company and ORM can potentially create cost savings and efficiencies over time resulting from the allocation of operating expenses over a larger portfolio and allow the Company to potentially harvest significant value from ORM's real property assets. The Company qualifies as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), commencing with its first taxable year ended December 31, 2011. To maintain its tax status as a REIT, the Company distributes at least 90% of its taxable income in the form of distributions to shareholders.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2019
Basis of Presentation
Basis of Presentation	Note 2 – Basis of Presentation The unaudited interim consolidated financial statements presented herein are as of June 30, 2019 and December 31, 2018 and for the three and six months ended June 30, 2019 and 2018. These unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”)—as prescribed by the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the U.S. Securities and Exchange Commission. The accompanying unaudited interim consolidated financial statements do not include all information and footnotes required by generally accepted accounting principles in the United States of America ("GAAP") for complete consolidated financial statements. These unaudited interim consolidated financial statements and related notes should be read in conjunction with the Company's audited financial statements for the years ended December 31, 2018 and 2017, and for each of the three years in the period ended December 31, 2018, disclosed within the most recently filed 2018 annual report on Form 10-K. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal recurring adjustments necessary for a fair statement of the results for the interim periods presented. Such operating results may not be indicative of the expected results for any other interim period or the entire year.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 3 – Summary of Significant Accounting Policies 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. Actual results could 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. As described in further detail below, effective during the fourth quarter of 2018, the Company revised its presentation of residential mortgage banking activities and variable expenses on residential mortgage banking activities within our Consolidated Statements of Income and Note 10, which no longer presents these amounts as a net amount. Prior period numbers were revised to conform to the new presentation and to be consistent with our current period’s presentation. Cash and Cash Equivalents The Company has accounted 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. As of December 31, 2018, the Company had $0.6 million in money market mutual funds, and substantially all of the Company’s cash and cash equivalents not held in money market funds were comprised of cash balances with banks that are in excess of the Federal Deposit Insurance Corporation insurance limits. As of June 30, 2019 this balance was zero. 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 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 ReadyCap that we do not intend to sell, or securitized loans that were previously originated by ReadyCap. 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. Acquired loans are accounted for in accordance with ASC 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”) and referred to as “purchased credit impaired loans” (PCI loans) if both of the following conditions are met as of the acquisition date: (i) there is evidence of deterioration in credit quality of the loan since its origination and (ii) it is probable that we will not collect all contractual cash flows on the loan. Acquired loans without evidence of these conditions, securitized loans, and loans originated by ReadyCap that we do not intend to sell are accounted for under ASC 310-10, Receivables- Overall , (“ASC 310-10”) and are referred to as “Non-purchased credit impaired loans” (non-PCI loans). Purchased Credit Impaired (PCI) Loans The estimated cash flow expected for each loan is estimated at the time the loan is acquired. The excess of the cash flows expected to be collected on PCI loans, measured as of the acquisition date, over the initial investment is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan using the interest method of accretion. The difference between contractually required payments as of the acquisition date and the cash flows expected to be collected is referred to as the non-accretable difference and is not accreted over time. The Company estimates expected cash flows to be collected over the life of individual PCI loans on a quarterly basis. If the Company determines that discounted expected cash flows have decreased, the PCI loans would be considered impaired, which would result in a provision for loan loss and a corresponding increase in the allowance for loan losses. If discounted expected cash flows have increased, or improved, in subsequent evaluations, the increase in cash flows is first used to reverse the amount of any related allowance for loan losses before the yield is adjusted. Additionally, the Company will increase the accretable yield to account for the increase in expected cash flows. The estimate of the amount and timing of cash flows for our PCI loans is based on historical information available and expected future performance of the loans, and may include the timing of expected future cash flows, prepayment speed, default rates, loss severities, delinquency rates, percentage of non-performing loans, extent of credit support available, Fair Isaac Corporation (“FICO”) scores at loan origination, year of origination, loan-to-value ratios, geographic concentrations, as well as reports by credit rating agencies, such as Moody’s, Standard & Poor’s Corporation (“S&P”), or Fitch, general market assessments and dialogue with market participants. As a result, substantial judgment is used in the analysis to determine the expected cash flows. Non-PCI Loans 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. For non-PCI loans, 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 not to be 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 it 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 ReadyCap for which the Company has elected the fair value option. Interest is recognized as interest income on 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 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. We determine the allowance for loan losses by measuring credit impairment on (1) an individual basis for non-accrual status loans, and (2) on a collective basis for all other loans with similar risk characteristics. The allowance for loan losses on an individual basis is assessed when a loan is on non-accrual and the recoverability of the loan is less than its carrying value. The Company considers the loans to be collateral dependent and relies on the current fair value of the collateral as the basis for determining impairment. Loans that are not assessed individually for impairment are assessed on a collective basis. For the acquired loans we perform a historical analysis on both cumulative defaults and severity upon default for all loans that were current as of November 4, 2013 when the Company was formed or acquired thereafter. We calculated the cumulative default and loss severity on the acquired loans with delinquency statuses of 90+ days and applied those factors to the current acquired loan population. For the originated loans, our historical data shows a minimal number of defaults, therefore we used an analysis performed on the latest ReadyCap securitization to determine the likelihood of default and to determine loss severity we stressed collateral value to the current principal balance based on the total valuation decline of SBC properties from the peak valuation in 2007 through their post-crisis low in 2010. The determination of allowances for SBA loans is based upon the assignment of a probability of default on a rating scale. Each loan rating is re-evaluated at least annually for loan performance, underlying borrower financial performance or data from third party credit bureaus. The probability of default is compared to the underlying collateral value securing each loan and compared to each loan carrying value to calculate a loss estimate. Collectively the estimated probability of default and recovery value is compared to actual portfolio default and recovery rates as well as economic factors and adjusted when needed. The determination of whether an allowance for loan loss is necessary is based on whether or not there is a decrease in cash flows based on consideration of factual information available at the time of assessment as well as management’s estimates of the future performance and projected amount and timing of cash flows expected to be collected on 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 or accreting interest income. Non-accrual loans include non-PCI loans when principal or interest has been delinquent for 90 days or more or when it is determined that full collection of contractual cash flows is not probable. Additionally, PCI loans for which the Company is unable to reasonably estimate the timing and amount of expected cash flows are considered to be non-accrual loans. 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. Loans classified as TDRs, are considered impaired loans. 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. Impaired loans The Company considers a loan to be impaired when the Company does not expect to collect all of the contractual interest and principal payments as scheduled in the loan agreements. This includes certain non-PCI loans where we do not expect to collect all of the contractual interest and principal payments, as well as PCI loans, which experienced credit deterioration prior to acquisition. 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 on 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 recurring and are reported as net unrealized gain (loss) on 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 on the unaudited interim consolidated statements of income. Mortgage backed securities, at fair value The Company accounts for MBS as trading securities and are carried 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 on 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 on 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. Although permitted under certain circumstances, generally the Company does not offset cash collateral receivable or payables against our gross derivative positions. As of June 30, 2019 and December 31, 2018, the cash collateral receivable for derivatives is $14.6 million and $11.6. million, respectively, and is included in restricted cash on 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. Interest Rate Lock Commitments (“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 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 on the unaudited interim consolidated statements of income as residential mortgage banking activities. IRLCs are classified as Level 3 in the fair value hierarchy. CDS CDS 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 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) on 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 on 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 leverage all available relevant market data to determine the fair value of our recognized servicing assets. Since quoted market prices for servicing rights are not readily available, 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 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 acquired in settlement of loans, held for sale Real estate acquired in settlement of loans, held for sale, includes 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. Intangible assets Intangible assets are accounted for under ASC 350, Intangibles-Goodwill and Other . As of June 30, 2019 and December 31, 2018, the Company’s identifiable intangible assets include SBA license for our lending operations as well as a trade name, a favorable lease, and other licenses relating to our residential mortgage banking segment, obtained as part of the ZAIS Financial merger transaction. The Company determined that its SBA license has an indefinite life, while the other intangibles acquired as part of the ZAIS Financial merger transaction are finite-lived. The Company amortizes intangible assets with identified estimated useful lives on a straight-line basis over their estimated useful lives. The Company initially records its intangible assets at cost and subsequently tests for impairment on an annual basis. Intangible assets are included within other assets on the unaudited interim consolidated balance sheets. 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 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. Pursuant to the consolidation guidance, we determined our interest in the entity is a VIE, however, we do not consolidate the entity as we determined that we are not the primary beneficiary. The Company is determined to be the primary beneficiary only when it has a controlling financial interest in the VIE, which is defined as possessing both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. 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. Our 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

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	6 Months Ended
	Jun. 30, 2019
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements	Note 4 – Recently Issued Accounting Pronouncements Financial Accounting Standards Board ("FASB") Standards adopted during 2019 Standard Summary of guidance Effects on financial statements ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities  Provides guidance on simplifying the accounting and presentation for hedging activities.  The adoption did not affect the financial statement impact of hedge accounting, as the change would simplify hedge documentation requirements and presentation associated with hedging activities. Issued August 2017 ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract  Provides guidance on evaluating the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license.  The adoption of this standard did not have a material impact on our consolidated financial statements.  An intangible asset is recognized for the software license and, to the extent that the payments attributable to the software license are made over time, a liability also is recognized. If a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract. This generally means that the fees associated with the hosting element (service) of the arrangement are expensed as incurred. ASU 2018-11, Leases (Topic 842): Targeted Improvements to Accounting for Leases  Provides guidance on increasing the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions.  The modified retrospective adoption of this standard resulted in the Company recording a gross up of approximately $3.3 million on our unaudited interim consolidated balance sheet upon recognition of the right-of-use assets and lease liabilities. The right-of use-assets are recorded in Other assets and the corresponding lease liabilities are recorded in Accounts payable and other accrued liabilities within the unaudited consolidated balance sheets. Issued July 2018 FASB Standards issued, but not yet adopted Standard Summary of guidance Effects on financial statements ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments  Requires the use of an “expected loss” credit model for estimating future credit losses of certain financial instruments instead of the “incurred loss” credit model that existing GAAP currently requires.  Required effective date: Annual reporting periods, and interim periods therein, beginning after December 15, 2019. Early adoption is permitted for periods beginning after December 15, 2018. Issued June 2016  The “expected loss” model requires the consideration of possible credit losses over the life of an instrument compared to only estimating credit losses upon the occurrence of a discrete loss event in accordance with the current “incurred loss” methodology.  The Company is evaluating the impact ASU 2016-13 will have on our consolidated financial statements. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement  Provides guidance on increasing the transparency and comparability of the disclosure requirements for fair value measurement.  Required effective date: The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Issued August 2018  The Company is evaluating the impact ASU 2018-13 will have on our consolidated financial statements.

Acquisition of Owens Realty Mor

Acquisition of Owens Realty Mortgage, Inc	6 Months Ended
	Jun. 30, 2019
Acquisition of Owens Realty Mortgage, Inc
Acquisition of Owens Realty Mortgage, Inc	Note 5 – Acquisition of Owens Realty Mortgage, Inc. On November 7, 2018, the Company entered into an Agreement and Plan of Merger as amended, (the “Merger Agreement”) with ORM, a specialty finance company that focused on the origination, investment, and management of commercial real estate loans, primarily in the Western U.S. Pursuant to the Merger Agreement, the Company would acquire ORM in a stock-for-stock transaction with an aggregate purchase price equal to 99.0% of ORM’s book value determined in accordance with the Merger Agreement. Upon the closing, each outstanding share of ORM’s common stock was converted into the right to receive 1.441 shares of the Company common stock, based on a fixed exchange ratio. On March 29, 2019, the Company completed the acquisition of ORM, through a merger of ORM with and into a wholly owned subsidiary of the Company, in exchange for approximately 12.2 million shares of the Company’s common stock. In accordance with the Merger Agreement, the number of shares of the Company’s common stock issued was based on an exchange ratio of 1.441 per share. The total purchase price for the merger of $179.3 million consisted exclusively of the Company’s common stock issued in exchange for shares of ORM common stock and cash paid in lieu of fractional shares of the Company’s common stock, and was based on the $14.67 closing price of the Company’s common stock on March 29, 2019. Upon the closing of the transaction, the Company’s historical stockholders owned approximately 72% of the combined company’s stock, while historical ORM stockholders owned approximately 28% of the combined company’s stock. The following table summarizes the fair value of assets acquired and liabilities assumed from the merger: (In Thousands) March 29, 2019 Assets Cash and cash equivalents $ 10,822 Loans, net 130,449 Real estate acquired in settlement of loans, 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 Other liabilities 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 Based on the calculation, the Company has determined the transaction resulted in a bargain purchase gain, which is predominantly the result of changes in the market price of the Company’s common stock between the determination date and the closing date of the transaction. This gain is reflected separately within the unaudited interim Consolidated Statements of Income under gain on bargain purchase. In a business combination, the initial allocation of the purchase price is considered preliminary and, therefore, is subject to change until the end of the measurement period. The final determination must occur within one year of the acquisition date. Because the measurement period is still open, certain fair value estimates may change once all information necessary to make a final fair value assessment has been received. Acquisition-related costs directly attributable to the ORM Merger, including legal, accounting, valuation, and other professional or consulting fees, totaling $0.6 million and $6.0 million for the three and six months ended June 30, 2019, respectively, were expensed as incurred and are reflected separately within the unaudited interim Consolidated Statements of Income. The following pro-forma income and earnings (unaudited) of the Combined Company are presented for the three and six months ended June 30, 2018, as if the merger had occurred on January 1, 2018: For the three months ended For the six months ended (In Thousands) June 30, 2018 June 30, 2018 Selected Financial Data Interest income $ 44,945 $ 84,985 Interest expense (26,994) (50,196) Provision for loan losses 282 195 Non-interest income 42,504 86,508 Non-interest expense (41,863) (80,884) Income before provision for income taxes 18,874 40,608 Provision for income (taxes) benefit (647) (3,393) Net income $ 18,227 $ 37,215 Non-recurring pro-forma transaction costs directly attributable to the merger were $0.6 million and $8.4 million for the three and six months ended June 30, 2019, respectively, and have been deducted from the non-interest expense amount above. The Company excluded the bargain purchase gain of $30.7 million from the amount above.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	6 Months Ended
	Jun. 30, 2019
Loans and Allowance for Loan Losses
Loans and Allowance for Loan Losses	Note 6 – Loans and Allowance for Loan Losses The accounting for a loan depends on management’s strategy for the loan, and on whether the loan was credit-impaired at the date of acquisition. The Company accounts for loans based on the following loan program categories: · Originated or purchased loans held-for-investment, other than PCI loans – originated transitional loans, originated conventional SBC and SBA loans that have been securitized, or acquired loans with no signs of credit deterioration at time of purchase. · Loans at fair value – certain originated conventional SBC 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 · PCI loans held-for-investment – acquired loans with signs of credit deterioration at time of purchase Loan Portfolio The following table summarizes the classification, unpaid principal balance (“UPB”), and carrying value of loans held by the Company including loans of consolidated VIEs: June 30, 2019 December 31, 2018 Loans (In Thousands) Carrying Value UPB Carrying Value UPB Loans Acquired SBA 7(a) loans $ 116,151 $ 149,922 $ 264,308 $ 283,423 Acquired loans 192,007 198,793 206,983 215,213 Acquired Transitional loans 96,391 97,770 — — Originated Transitional loans 193,219 195,043 272,981 275,237 Originated SBC loans, at fair value 20,409 20,078 22,664 22,325 Originated SBC loans 285,950 284,147 345,100 342,751 Originated SBA 7(a) loans 101,977 107,204 85,569 89,733 Originated Residential Agency loans 3,422 3,422 1,899 1,900 Total Loans, before allowance for loan losses $ 1,009,526 $ 1,056,379 $ 1,199,504 $ 1,230,582 Allowance for loan losses $ (6,850) — $ (6,112) — Total Loans, net $ 1,002,676 $ 1,056,379 $ 1,193,392 $ 1,230,582 Loans in consolidated VIEs Loans Originated SBC loans $ 689,233 $ 680,026 $ 432,308 $ 422,897 Acquired loans 765,771 772,841 343,156 354,794 Acquired SBA 7(a) loans — — 55,966 74,554 Originated Transitional loans 604,267 607,667 391,752 393,116 Total Loans, in consolidated VIEs, before allowance for loan losses $ 2,059,271 $ 2,060,534 $ 1,223,182 $ 1,245,361 Allowance for loan losses on loans in consolidated VIEs $ (1,964) — $ (2,208) — Total Loans, net, in consolidated VIEs $ 2,057,307 $ 2,060,534 $ 1,220,974 $ 1,245,361 Total Loans, net, and Loans, net in consolidated VIEs $ 3,059,983 $ 3,116,913 $ 2,414,366 $ 2,475,943 Loans, held for sale, at fair value Originated Residential Agency loans $ 125,550 $ 120,923 $ 67,775 $ 65,586 Originated Freddie Mac loans 35,684 35,037 23,322 22,973 Originated SBA 7(a) loans 12,008 11,132 21,153 19,669 Acquired loans 2,790 2,665 3,008 2,935 Acquired SBA 7(a) loans 1,475 1,367 — — Total Loans, held for sale, at fair value $ 177,507 $ 171,124 $ 115,258 $ 111,163 Total Loan portfolio $ 3,237,490 $ 3,288,037 $ 2,529,624 $ 2,587,106 Credit Quality Indicators The Company monitors credit quality of our loan portfolio based on primary credit quality indicators. Delinquency rates are a primary credit quality indicator for our types of loans. Loans that are more than 30 days past due provide an early warning of borrowers who may be experiencing financial difficulties and/or who may be unable or unwilling to repay the loan. As the loan continues to age, it becomes clearer that the borrower is likely either unable or unwilling to pay. The following tables display delinquency information on loans, net as of the consolidated balance sheet dates: June 30, 2019 Loans (In Thousands) Current and 30-89 Days 90+ Days Total Loans Carrying Value Non-Accrual 90+ Days Past Due but Accruing Loans (1)(2) Acquired SBA 7(a) loans $ 106,326 $ 1,131 $ 6,903 $ 114,360 $ 11,542 $ 2,063 Acquired loans 936,985 5,990 10,516 953,491 10,208 2,940 Acquired Transitional loans 89,332 3,141 3,918 96,391 8,326 — Originated Transitional loans 778,730 18,756 — 797,486 13,114 — Originated SBC loans, at fair value 20,409 — — 20,409 — — Originated SBC loans 944,900 11,537 18,352 974,789 21,770 — Originated SBA 7(a) loans 101,246 377 205 101,828 2,177 157 Originated Residential Agency loans 1,192 — 2,230 3,422 2,230 — Total Loans, before general allowance for loans losses $ 2,979,120 $ 40,932 $ 42,124 $ 3,062,176 $ 69,367 $ 5,160 General allowance for loan losses $ (2,193) Total Loans, net $ 3,059,983 Percentage of outstanding (1) Loan balances include specific allowance for loan losses. (2) Includes Loans, net in consolidated VIEs December 31, 2018 Loans (In Thousands) Current and 30-89 Days 90+ Days Total Loans Carrying Value Non-Accrual 90+ Days Past Due but Accruing Loans (1)(2) Acquired SBA 7(a) loans $ 299,080 $ 14,943 $ 4,465 $ 318,488 $ 17,916 $ 1,043 Acquired loans 524,930 7,213 13,552 545,695 11,447 3,811 Originated Transitional loans 659,103 5,630 — 664,733 — — Originated SBC loans, at fair value 22,664 — — 22,664 — — Originated SBC loans 748,146 12,367 16,895 777,408 16,895 — Originated SBA 7(a) loans 83,076 2,178 162 85,416 1,666 — Originated Residential Agency loans 337 — 1,562 1,899 1,562 — Total Loans, before allowance for loans losses $ 2,337,336 $ 42,331 $ 36,636 $ 2,416,303 $ 49,486 $ 4,854 General allowance for loan losses $ (1,937) Total Loans, net $ 2,414,366 Percentage of outstanding (1) Loan balances include specific allowance for loan losses. (2) Includes Loans, net in consolidated VIEs In addition to delinquency rates, the current estimated LTV ratio is another indicator that can provide insight into a borrower’s continued willingness to pay, as the delinquency rate of high LTV loans tends to be greater than that for loans where the borrower has equity in the collateral. The geographic distribution of the loan collateral also provides insight as to the credit quality of the portfolio, as factors such as the regional economy, property price changes and specific events such as natural disasters, will affect credit quality. The Company monitors the loan-to-value ratio and associated risks on a monthly basis. The following tables presents quantitative information on the credit quality of loans, net as of the consolidated balance sheet dates: 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 June 30, 2019 Loans (1) (2) Acquired SBA 7(a) loans $ 3,548 $ 18,179 $ 28,099 $ 26,379 $ 17,765 $ 20,390 $ 114,360 Acquired loans 206,954 296,396 215,613 109,508 98,739 26,281 953,491 Acquired Transitional loans 3,585 12,373 36,930 36,726 6,777 — 96,391 Originated Transitional loans — 29,450 153,126 557,343 57,434 133 797,486 Originated SBC loans, at fair value — 8,566 — 6,410 5,433 — 20,409 Originated SBC loans — 49,038 409,055 492,545 18,118 6,033 974,789 Originated SBA 7(a) loans 147 4,924 13,437 34,789 14,798 33,733 101,828 Originated Residential Agency loans — — 111 1,410 1,484 417 3,422 Total Loans, before general allowance for loans losses $ 214,234 $ 418,926 $ 856,371 $ 1,265,110 $ 220,548 $ 86,987 $ 3,062,176 General allowance for loan losses $ (2,193) Total Loans, net $ 3,059,983 Percentage of outstanding 7.0 % 13.7 % 28.0 % 41.3 % 7.2 % 2.8 % December 31, 2018 Loans (1) (2) Acquired SBA 7(a) loans $ 6,337 $ 38,150 $ 100,578 $ 93,411 $ 33,750 $ 46,262 $ 318,488 Acquired loans 118,198 165,567 136,206 70,017 40,003 15,704 545,695 Originated Transitional loans — 29,245 178,861 348,967 101,513 6,147 664,733 Originated SBC loans, at fair value — 8,600 — 6,328 7,736 — 22,664 Originated SBC loans — 48,259 271,311 457,838 — — 777,408 Originated SBA 7(a) loans 393 3,200 10,642 24,387 16,473 30,321 85,416 Originated Residential Agency loans — — 111 952 734 102 1,899 Total Loans, before allowance for loans losses $ 124,928 $ 293,021 $ 697,709 $ 1,001,900 $ 200,209 $ 98,536 $ 2,416,303 General allowance for loan losses $ (1,937) Total Loans, net $ 2,414,366 Percentage of outstanding 5.2 % 12.1 % 28.9 % 41.5 % 8.3 % 4.0 % (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 As of June 30, 2019 and December 31, 2018, the Company’s total carrying amount of loans in the foreclosure process was $1.9 million and $1.4 million, respectively. The following table displays the geographic concentration of the Company’s loans, net, secured by real estate recorded on our unaudited interim consolidated balance sheets. Geographic Concentration (Unpaid Principal Balance) June 30, 2019 December 31, 2018 California 18.9 % 14.1 % Texas 13.1 11.3 Florida 8.8 10.8 New York 8.6 6.3 Illinois 4.8 3.8 Georgia 4.7 5.3 Arizona 3.9 5.0 North Carolina 3.1 3.7 Pennsylvania 2.5 3.8 Washington 2.5 2.8 Other 29.1 33.1 Total 100.0 % 100.0 % The following table displays the collateral type concentration of the Company’s loans, net, on our unaudited interim consolidated balance sheets. Collateral Concentration (Unpaid Principal Balance) June 30, 2019 December 31, 2018 Multi-family 29.0 % 23.3 % Retail 20.6 18.5 Office 14.1 15.1 Mixed Use 12.4 9.6 SBA (1) 8.3 18.1 Industrial 7.3 8.2 Lodging/Residential 2.9 2.4 Other 5.4 4.8 Total 100.0 % 100.0 % (1) Further detail provided on SBA collateral concentration is included in table below. The following table displays the collateral type concentration of the Company’s SBA loans within loans, net, on our unaudited interim consolidated balance sheets. Collateral Concentration (Unpaid Principal Balance) June 30, 2019 December 31, 2018 Offices of Physicians 13.6 % 17.7 % Child Day Care Services 9.6 9.9 Hotels, Motels & Tourist Courts 7.9 3.8 Eating Places 7.2 5.4 Lodging 6.1 10.1 Veterinarians 5.0 6.8 Gasoline Service Stations 3.8 2.3 Funeral Service & Crematories 3.1 2.3 Grocery Stores 2.5 3.8 Auto 2.0 2.7 Other 39.2 35.2 Total 100.0 % 100.0 % Allowance for Loan Losses The allowance for loan losses represents the Company’s estimate of probable credit losses inherent in the Company’s held-for-investment loan portfolio. This is assessed by considering credit quality indicators, including probable and historical losses, collateral values, loan-to-value (“LTV”) ratios, and economic conditions. The allowance for loan losses includes an asset-specific component, a general formula-based component, and a component related to PCI loans. The following tables detail the allowance for loan losses by loan product and impairment methodology as of the unaudited interim consolidated balance sheet dates: June 30, 2019 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for General $ 25 $ 367 $ 784 $ 406 $ 545 $ 66 $ 2,193 Specific 396 - 1,162 938 149 - 2,645 PCI - - 3,126 850 - - 3,976 Ending balance $ 421 $ 367 $ 5,072 $ 2,194 $ 694 $ 66 $ 8,814 December 31, 2018 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for General $ 11 $ 353 $ 608 $ 532 $ 433 $ - $ 1,937 Specific - - 1,012 823 153 - 1,988 PCI - - 3,432 963 - - 4,395 Ending balance $ 11 $ 353 $ 5,052 $ 2,318 $ 586 $ - $ 8,320 The following tables detail the activity of the allowance for loan losses for loans, held-for-investment: Three Months Ended June 30, 2019 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for Beginning balance $ - $ 222 $ 5,041 $ 2,274 $ 740 $ - $ 8,277 Provision for (Recoveries of) loan losses 421 145 161 601 (46) 66 1,348 Charge-offs and sales - - - (630) - - (630) Recoveries - - (130) (51) - - (181) Ending balance $ 421 $ 367 $ 5,072 $ 2,194 $ 694 $ 66 $ 8,814 Three Months Ended June 30, 2018 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for Beginning balance $ 227 $ 338 $ 6,544 $ 2,990 $ 434 $ - $ 10,533 Provision for (Recoveries of) loan losses (129) (115) 90 (353) 110 - (397) Charge-offs and sales (60) (73) - (133) Recoveries - (407) 70 - (337) Ending balance $ 98 $ 223 $ 6,167 $ 2,634 $ 544 $ - $ 9,666 Six Months Ended June 30, 2019 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for Beginning balance $ 11 $ 353 $ 5,052 $ 2,318 $ 586 $ 8,320 Provision for (Recoveries of) loan losses 410 14 495 773 108 66 1,866 Charge-offs and sales - - - (962) - (962) Recoveries - - (475) 65 - (410) Ending balance $ 421 $ 367 $ 5,072 $ 2,194 $ 694 $ 66 $ 8,814 Six Months Ended June 30, 2018 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for Beginning balance $ 637 $ - $ 7,264 $ 3,527 $ 318 $ - $ 11,746 Provision for loan losses (370) 223 230 (538) 226 - (229) Charge-offs and sales (169) - (284) (522) - - (975) Recoveries - - (1,043) 167 - - (876) Ending balance $ 98 $ 223 $ 6,167 $ 2,634 $ 544 $ - $ 9,666 Impaired Loans- Non-PCI loans The Company considers a loan to be impaired when the Company does not expect to collect all the contractual and principal payments as scheduled in the loan agreements. Impaired loans include loans that have been modified in a TDR or loans that are placed on non-accrual status. All impaired loans are evaluated for an asset-specific allowance as described in Note 3. (In Thousands) June 30, 2019 December 31, 2018 Impaired loans With an allowance $ 21,251 $ 9,734 Without an allowance 40,383 33,082 Total recorded carrying value of impaired loans $ 61,634 $ 42,816 Allowance for loan losses related to impaired loans $ (2,738) $ (1,989) Unpaid principal balance of impaired loans $ 68,796 $ 49,128 Impaired loans on non-accrual status $ 61,634 $ 42,816 Average carrying value of impaired loans $ 65,455 $ 36,675 June 30, 2019 June 30, 2018 Interest income on impaired loans for the three months ended $ 328 $ 20 Interest income on impaired loans for the six months ended $ 934 $ 22 Troubled Debt Restructurings If the borrower is determined to be in financial difficulty, then the Company will determine whether a financial concession has been granted to the borrower by analyzing the value of the loan as compared to the recorded investment, modifications of the interest rate as compared to market rates, modification of the stated maturity date, modification of the timing of principal and interest payments and the partial forgiveness of the loan. Modified loans that are classified as TDRs are individually evaluated and measured for impairment. The following table summarizes the recorded investment of TDRs on the unaudited interim consolidated balance sheet dates by loan type. June 30, 2019 December 31, 2018 (In Thousands) SBC SBA Total SBC SBA Total Recorded carrying value modified loans classified as TDRs $ 5,113 $ 9,434 $ 14,547 $ 1,825 $ 17,344 $ 19,169 Allowance for loan losses on loans classified as TDRs $ 256 $ 273 $ 529 $ 321 $ 278 $ 599 Carrying value of modified loans classified as TDRs Carrying value of modified loans classified as TDRs on accrual status $ 1,669 $ 2,691 $ 4,360 $ 1,696 $ 7,375 $ 9,071 Carrying value of modified loans classified as TDRs on non-accrual status 3,444 6,743 10,187 129 9,969 10,098 Total carrying value of modified loans classified as TDRs $ 5,113 $ 9,434 $ 14,547 $ 1,825 $ 17,344 $ 19,169 The following table summarizes the TDR activity that occurred during the three and six months ended June 30, 2019 and 2018 and the financial effects of these modifications. Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (In Thousands, except number of loans) SBC SBA Total SBC SBA Total Number of loans permanently modified - 5 5 - 11 11 Pre-modification recorded balance (a) $ - $ 193 $ 193 $ - $ 918 $ 918 Post-modification recorded balance (a) - 180 180 - 917 917 Number of loans that remain in default as of June 30, 2019 (b) - - - - - - Balance of loans that remain in default as of June 30, 2019 (b) $ - $ - $ - $ - $ - $ - Concession granted (a) : Term extension $ - $ 184 $ 184 $ - $ 865 $ 865 Interest rate reduction - - - - - - Principal reduction - - - - - - Foreclosure - - - - 23 23 Total $ - $ 184 $ 184 $ - $ 888 $ 888 (a) Represents carrying value. (b) Represents the June 30, 2019 carrying values of the TDRs that occurred during the three months ended June 30, 2019 and 2018 that remained in default as of June 30, 2019. 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. Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (In Thousands, except number of loans) SBC SBA Total SBC SBA Total Number of loans permanently modified 1 14 15 - 22 22 Pre-modification recorded balance (a) $ 103 $ 1,872 $ 1,975 $ - $ 2,038 $ 2,038 Post-modification recorded balance (a) 103 1,829 1,932 - 2,140 2,140 Number of loans that remain in default as of June 30, 2019 (b) 1 5 6 - 1 1 Balance of loans that remain in default as of June 30, 2019 (b) $ 105 $ 299 $ 404 $ - $ - $ - Concession granted (a) : Term extension $ - $ 1,411 $ 1,411 $ - $ 2,000 $ 2,000 Interest rate reduction - - - - - - Principal reduction - - - - - - Foreclosure 105 217 322 - 87 87 Total $ 105 $ 1,628 $ 1,733 $ - $ 2,087 $ 2,087 (a) Represents carrying value. (b) Represents the June 30, 2019 carrying values of the TDRs that occurred during the year ended June 30, 2019 and 2018 that remained in default as of June 30, 2019. 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. The Company does not believe the financial impact of the presented TDRs to be material. The other elements of the Company’s modification programs do not have a significant impact on financial results given their relative size, or do not have a direct financial impact as in the case of covenant changes. Loans, held-for-investment are accounted for under ASC 310-10 or ASC 310-30 depending on whether there is evidence of credit deterioration at the time of acquisition. The outstanding carrying amount of our held-for-investment loan portfolio broken down by ASC 310-10 (non-PCI loans) and ASC 310-30 (PCI loans) is as follows: June 30, 2019 December 31, 2018 Non-PCI PCI Non-PCI PCI (In Thousands) Loans Loans Loans Loans Unpaid principal balance $ 3,014,416 $ 82,419 $ 2,361,155 $ 92,463 Non-accretable discount — (6,908) — (6,040) Accretable discount (29,363) (12,176) (31,533) (16,023) Loans, held-for-investment 2,985,053 63,335 2,329,622 70,400 Allowance for loan losses (4,839) (3,975) (3,925) (4,395) Loans, held-for-investment $ 2,980,214 $ 59,360 $ 2,325,697 $ 66,005 PCI Loans The following table details the activity of the accretable yield on PCI loans, held-for investment. The amount of accretable yield is affected by changes in credit outlooks, including metrics such as default and loss severities, prepayment speeds, which can change the amount and period of time over which interest payments are expected to be received, and the interest rates on variable loans. Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Beginning accretable discount- PCI loans $ $ $ 16,023 $ 23,749 Purchases/Originations — 514 Sales (1,275) (1,494) Accretion (1,986) (2,975) Other 177 344 Transfers (763) (653) Ending accretable discount- PCI loans $ 12,176 $ $ 12,176 $ 19,485

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2019
Fair Value Measurements
Fair Value Measurements	Note 7 – Fair Value Measurements The Company adopted the provisions of ASC 820 Fair Value Measurement , which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 established a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment, the characteristics specific to the investment, and the state of the marketplace (including the existence and transparency of transactions between market participants). Investments with readily available, actively quoted prices, or for which fair value can be measured from actively quoted prices in an orderly market, will generally have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Investments measured and reported at fair value are classified and disclosed into one of the following categories based on the inputs as follows: Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities that the Company has the ability to access. Level 2 — Pricing inputs are other than quoted prices in active markets, including, but not limited to, quoted prices for similar assets and liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs. Level 3 — Significant unobservable inputs are based on the best information available in the circumstances, to the extent observable inputs are not available, including the Company’s own assumptions used in determining the fair value of investments. Fair values for these investments are determined using valuation methodologies that consider a range of factors, including but not limited to the price at which the investment was acquired, the nature of the investment, local market conditions, trading values on public exchanges for comparable securities, current and projected operating performance, and financing transactions subsequent to the acquisition of the investment. The inputs into the determination of fair value require significant management judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The following table presents the Company’s financial instruments carried at fair value on a recurring basis as of June 30, 2019: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Loans, held for sale, at fair value $ — $ 177,507 $ — $ 177,507 Loans, net, at fair value — — 20,409 20,409 Mortgage backed securities, at fair value — 62,752 36,655 99,407 Derivative instruments, at fair value — — 3,670 3,670 Residential mortgage servicing rights, at fair value — — 85,658 85,658 Total assets $ — $ 240,259 $ 146,392 $ 386,651 Liabilities: Derivative instruments, at fair value $ — $ 9,032 $ — $ 9,032 Total liabilities $ — $ 9,032 $ — $ 9,032 The following table presents the Company’s financial instruments carried at fair value on a recurring basis as of December 31, 2018: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Cash held in money market funds $ 586 $ — $ — $ 586 Loans, held for sale, at fair value — 115,258 — 115,258 Loans, net, at fair value — — 22,664 22,664 Mortgage backed securities, at fair value — 79,789 12,148 91,937 Derivative instruments, at fair value — 294 1,776 2,070 Residential mortgage servicing rights, at fair value — — 93,065 93,065 Total assets $ 586 $ 195,341 $ 129,653 $ 325,580 Liabilities: Derivative instruments, at fair value $ — $ 3,625 $ — $ 3,625 Contingent consideration — — 1,207 1,207 Total liabilities $ — $ 3,625 $ 1,207 $ 4,832 The following table presents a summary of changes in the fair value of loans, held at fair value, classified as Level 3: Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Beginning Balance $ 22,595 $ 40,430 $ 22,664 $ 188,150 Realized gains (losses), net (165) (52) (166) (55) Unrealized gains (losses), net 144 (651) 105 (1,413) Originations — — — 150 Sales (2,141) — (2,141) — Principal payments (24) (2,038) (53) (6,704) Transfer to loans, held-for-investment — (3,335) — (145,774) Ending Balance $ 20,409 $ 34,354 $ 20,409 $ 34,354 Unrealized gains (losses) on loans, held at fair value held on June 30, 2019 and December 31, 2018 and classified as Level 3 were $0.2 million and $0.3 million, respectively. The following table presents a summary of changes in the fair value of MBS, at fair value classified as Level 3: Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Beginning Balance $ 27,200 $ 22,736 $ 12,148 $ 8,063 Accreted discount, net 44 63 46 84 Realized gains, net 127 148 107 271 Unrealized gains (losses), net 200 2,636 289 2,866 Purchases 9,593 — 9,593 — Sales / Principal payments (567) (449) (669) (966) Transfer to (from) Level 3 58 (25,008) 15,141 (10,192) Ending Balance $ 36,655 $ 126 $ 36,655 $ 126 Unrealized gains on MBS at fair value held on June 30, 2019 and December 31, 2018 and classified as Level 3 were $2.7 million and $0.1 million, respectively. Refer to “Note 9 – Servicing rights” for activity relating to the changes in the fair value of the Company’s residential mortgage servicing rights. Unrealized gains on residential mortgage servicing rights, at fair value held on June 30, 2019 and December 31, 2018 and classified as Level 3 were $2.7 million and $8.6 million, respectively. The following table presents a summary of changes in the fair value of derivatives instruments, at fair value classified as Level 3: Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Beginning Balance $ 2,483 $ 3,470 $ 1,776 $ 1,827 Unrealized gains (losses) 1,187 (638) 1,894 1,005 Ending Balance $ 3,670 $ 2,832 $ 3,670 $ 2,832 Unrealized gains on derivatives held on June 30, 2019 and December 31, 2018 and classified as Level 3 were $3 .7 million and $1.8 million, respectively. The following table presents a summary of changes in the fair value of contingent consideration classified as Level 3: Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Beginning Balance $ — $ 10,732 $ 1,207 $ 10,016 Earn-out payments — (8,967) (1,207) (8,333) Amortization and adjustment for earn-out payments — (79) — 3 Ending Balance $ — $ 1,686 $ — $ 1,686 As of June 30, 2019 and December 31, 2018, there was no unrealized gain (loss) on contingent consideration. The Company’s policy is to recognize transfers in and transfers out as of the end of the period of the event or the date of the change in circumstances that caused the transfer. Transfers between Level 2 and Level 3 generally relate to whether there were changes in the significant relevant observable and unobservable inputs that are available for the fair value measurements of such financial instruments. Transfers into or out of Level 3 of the fair value hierarchy are recorded at the end of the reporting period. Valuation Process for Fair Value Measurements The Company establishes 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. The Company has also established processes to provide that the valuation methodologies, techniques and approaches for investments that are categorized within Level 3 of the fair value hierarchy are fair, consistent and verifiable. The Company’s processes provide a framework that ensures the oversight of the Company’s fair value methodologies, techniques, validation procedures, and results. The Company designates a valuation committee (the “Committee”) to oversee the entire valuation process of the Company’s Level 3 investments. The Committee is comprised of various personnel who are responsible for developing the Company’s written valuation policies, processes and procedures, conducting periodic reviews of the valuation policies, and performing validation procedures on the overall fairness and consistent application of the valuation policies and processes and that the assumptions and inputs used in valuation are reasonable. The validation procedures overseen by the Committee are also intended to provide that the values received from external third-party pricing sources are consistent with the Company’s Valuation Policy and are carried at fair value. To the extent that there is no exchange pricing, vendor marks or broker quotes readily available, the Company may use an internal valuation model or other valuation methodology that may be based on unobservable market inputs to fair value the investment. The values provided by a third-party pricing service are calculated based on key inputs provided by the Company including collateral values, unpaid principal balances, cash flow velocity, contractual status and anticipated disposition timelines. In addition, the Company performs an internal valuation used to assess and review the reasonableness and validity of the fair values provided by a third party. The Company also performs analytical procedures, which include automated checks consisting of prior-period variance analysis, comparisons of actual prices to internally calculate expected prices based on observable market changes, analysis of changes in pricing ranges, and relative value and yield comparisons using the Company’s proprietary valuation models. Upon completion of the review process described above, the Company may provide additional quantitative and qualitative data to the third-party pricing service to consider in valuing certain financial assets and liabilities, as applicable. Such data may include deal specific information not included in the data tape provided to the third party, outliers when compared to the unpaid principal balance and collateral value and knowledge of any impending liquidation of an investment. If deemed necessary by the third party and management, the investments are re-valued by the third party to account for the updated information. The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy as of June 30, 2019 using third party information without adjustment: Predominant Weighted Valuation Average Price (In Thousands, except price) Fair Value Technique Type Price Range (a) Loans, held at fair value $ 20,409 Single External Source Third Party Mark $ 99.69 – 109.24 $ 101.65 Mortgage backed securities, at fair value 36,540 Broker Quotes Third Party Mark 21.78 – 97.50 76.89 Mortgage backed securities, at fair value 115 Transaction Price Transaction Price 99.00 – 99.00 99.00 Residential mortgage servicing rights, at fair value 85,658 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 The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy as of December 31, 2018 using third-party information without adjustment: Predominant Weighted Valuation Average Price (In Thousands, except price) Fair Value Technique Type Price Range (a) Loans, held at fair value $ 22,664 Single External Source Third Party Mark $ 99.41 – 105.21 $ 101.52 Mortgage backed securities, at fair value (b) 12,033 Broker Quotes Third Party Mark 44.65 – 97.50 70.92 Mortgage backed securities, at fair value 115 Transaction Price Transaction Price 99.00 – 99.00 99.00 Residential mortgage servicing rights, at fair value 93,065 Single external source Discounted cash flow N/A N/A Contingent consideration 1,207 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 The fair value measurements of these assets are sensitive to changes in assumptions regarding prepayment, probability of default, loss severity in the event of default, forecasts of home prices, and significant activity or developments in the real estate market. Significant changes in any of those inputs in isolation may result in significantly higher or lower fair value measurements. Generally, an increase in the probability of default and loss severity in the event of default would result in a lower fair value measurement. A decrease in these assumptions would have the opposite effect. Conversely, an assumption that the home prices will increase would result in a higher fair value measurement. A decrease in the assumption for home prices would have the opposite effect. Financial instruments not carried at fair value The following table presents the carrying value and estimated fair value of our financial instruments that are not carried at fair value on the unaudited interim consolidated balance sheets and are classified as Level 3: June 30, 2019 December 31, 2018 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Assets: Loans, net $ 3,039,574 $ 3,141,194 $ 2,391,702 $ 2,434,185 Servicing rights 29,103 33,797 26,997 28,441 Total assets $ 3,068,677 $ 3,174,991 $ 2,418,699 $ 2,462,626 Liabilities: Secured borrowings $ 988,868 $ 988,868 $ 834,547 $ 834,547 Securitized debt obligations of consolidated VIEs, net 1,567,113 1,606,181 905,367 918,536 Senior secured note, net 179,086 189,683 178,870 176,981 Guaranteed loan financing 28,445 30,761 229,678 236,804 Convertible notes, net 110,506 112,972 109,979 101,581 Corporate debt, net 48,795 50,619 48,457 48,457 Total liabilities $ 2,922,813 $ 2,979,084 $ 2,306,898 $ 2,316,906 Other assets totaling $20.3 million at June 30, 2019 and $14. 5 million at December 31, 2018 are not carried at fair value and include due from servicers and accrued interest, which are reflected in Note 19. Receivable from third parties totaling $2.8 million at June 30, 2019 and $8.9 million at December 31, 2018 are not carried at fair value. For these instruments, carrying value approximates fair value and are classified as Level 3. Accounts payable and other accrued liabilities totaling $15.3 million at June 30, 2019 and $16.8 million at December 31, 2018 are not carried at fair value and include Payable to related parties and Accrued interest payable which are included in Note 19. For these instruments, carrying value approximates fair value and are classified as Level 3.

Mortgage Backed Securities

Mortgage Backed Securities	6 Months Ended
	Jun. 30, 2019
Mortgage Backed Securities
Mortgage Backed Securities	Note 8 – Mortgage Backed Securities The following table presents certain information about the Company’s MBS portfolio, which are classified as trading securities and carried at fair value, as of June 30, 2019 and December 31, 2018. Weighted Weighted Average Gross Gross Average Interest Principal Amortized Unrealized Unrealized (In Thousands) Maturity (a) Rate (a) Balance Cost Fair Value Gains Losses June 30, 2019 Mortgage backed securities, at fair value Freddie Mac Loans 06/2037 4.7 % $ 91,784 $ 67,203 $ 73,045 $ 5,842 $ — Commercial Loans 01/2051 5.3 36,253 25,603 26,247 698 (54) Tax Liens 09/2026 6.0 116 116 115 — (1) Total Mortgage backed securities, at fair value 04/2041 4.8 % $ 128,153 $ 92,922 $ 99,407 $ 6,540 $ (55) December 31, 2018 Mortgage backed securities, at fair value Freddie Mac Loans 05/2037 4.5 % $ 97,066 $ 70,819 $ 75,591 $ 4,826 $ (54) Commercial Loans 11/2049 5.5 20,666 16,228 16,231 30 (27) Tax Liens 09/2026 6.0 116 116 115 — (1) Total Mortgage backed securities, at fair value 07/2039 4.7 % $ 117,848 $ 87,163 $ 91,937 $ 4,856 $ (82) (a) Weighted based on current principal balance The following table presents certain information about the maturity of the Company’s MBS portfolio as of June 30, 2019 and December 31, 2018 . Weighted Average Interest Principal Amortized (In Thousands) Rate (a) Balance Cost Fair Value June 30, 2019 Mortgage backed securities, at fair value After five years through ten years 11.0 % $ 2,881 $ 2,638 $ 2,937 After ten years 4.7 125,272 90,284 96,470 Total Mortgage backed securities, at fair value 4.8 % $ 128,153 $ 92,922 $ 99,407 December 31, 2018 Mortgage backed securities, at fair value After five years through ten years 10.6 % $ 3,406 $ 3,103 $ 3,520 After ten years 4.5 114,442 84,060 88,417 Total 4.7 % $ 117,848 $ 87,163 $ 91,937 (a) Weighted based on current principal balance. (b) (c)

Servicing rights

Servicing rights	6 Months Ended
	Jun. 30, 2019
Servicing rights
Servicing Rights	Note 9 - Servicing rights The Company performs servicing activities for third parties, which primarily include collecting principal, interest and other payments from borrowers, remitting the corresponding payments to investors and monitoring delinquencies. The Company’s servicing fees are specified by pooling and servicing agreements. The following table presents information about the Company’s portfolios of servicing rights: Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 SBA servicing rights, at amortized cost Beginning net carrying amount $ 16,448 $ 16,318 $ 16,749 $ 16,684 Additions due to loans sold, servicing retained 1,842 1,113 2,775 1,805 Acquisitions — 362 — 362 Amortization (838) (853) (1,660) (1,739) Impairment 548 6 136 (166) Ending net carrying value of SBA servicing rights $ 18,000 $ 16,946 $ 18,000 $ 16,946 Freddie Mac multi-family servicing rights, at amortized cost Beginning net carrying amount $ 10,986 $ 6,704 $ 10,248 $ 5,059 Additions due to loans sold, servicing retained 680 2,452 1,947 4,390 Amortization (563) (382) (1,092) (675) Ending net carrying value of Freddie Mac multi-family servicing rights $ 11,103 $ 8,774 $ 11,103 $ 8,774 Ending net carrying value of SBA and Freddie Mac multi-family servicing rights, at amortized cost $ 29,103 $ 25,720 $ 29,103 $ 25,720 Residential mortgage servicing rights, at fair value Beginning Balance $ 88,218 $ 81,591 $ 93,065 $ 72,295 Additions due to loans sold, servicing retained 5,861 5,449 9,454 11,155 Loan pay-offs (2,082) (1,784) (3,394) (3,082) Unrealized gains (losses) (6,339) 298 (13,467) 5,186 Ending fair value of residential mortgage servicing rights $ 85,658 $ 85,554 $ 85,658 $ 85,554 Total servicing rights $ 114,761 $ 111,274 $ 114,761 $ 111,274 Servicing rights – SBA and Freddie Mac The Company’s SBA and Freddie Mac multi-family servicing rights are carried at the lower of cost or amortized cost. The Company estimates the fair value of the SBA and Freddie Mac multi-family servicing rights carried at amortized cost using a combination of internal models and data provided by third-party valuation experts. The assumptions used in our internal models include forward prepayment rates, forward default rates, discount rates, and servicing expenses. The Company’s models calculate the present value of expected future cash flows utilizing assumptions that we believe are used by market participants. We derive forward prepayment rates, forward default rates and discount rates from historical experience adjusted for prevailing market conditions. Components of the estimated future cash flows include servicing fees, late fees, other ancillary fees and cost of servicing. The following table presents additional information about the Company’s SBA and Freddie Mac multi-family servicing rights: As of June 30, 2019 As of December 31, 2018 Unpaid Principal Unpaid Principal (In Thousands) Amount Carrying Value Amount Carrying Value SBA $ 565,563 $ 18,000 $ 506,155 $ 16,749 Freddie Mac multi-family 1,051,751 11,103 964,377 10,248 Total $ 1,617,314 $ 29,103 $ 1,470,532 $ 26,997 The significant assumptions used in the June 30, 2019 and December 31, 2018 estimated valuation of the Company’s SBA and Freddie Mac multi-family servicing rights carried at amortized cost include: June 30, 2019 December 31, 2018 Range of input Weighted Range of input Weighted SBA servicing rights (at amortized cost) • Forward prepayment rate - % % - % % • Forward default rate - % % - % % • Discount rate - % % - % % • Servicing expense - % % - % % Freddie Mac multi-family servicing rights (at amortized cost) • Forward prepayment rate - % % - % % • Forward default rate - % % - % % • Discount rate - % % - % % • Servicing expense - % % - % % These assumptions can change between and at each reporting period as market conditions and projected interest rates change. The following table reflects the possible impact of 10% and 20% adverse changes to key assumptions on the carrying amount of the Company’s SBA and Freddie Mac multi-family servicing rights. (In Thousands) June 30, 2019 December 31, 2018 SBA servicing rights (at amortized cost) • Forward prepayment rate 10% adverse change $ (529) $ (470) 20% adverse change (1,031) (915) • Default rate 10% adverse change $ (94) $ (63) 20% adverse change (186) (125) • Discount rate 10% adverse change $ (597) $ (579) 20% adverse change (1,157) (1,118) Freddie Mac multi-family servicing rights (at amortized cost) • Forward prepayment rate 10% adverse change $ (109) $ (63) 20% adverse change (216) (124) • Default rate 10% adverse change $ (17) $ (11) 20% adverse change (33) (22) • Discount rate 10% adverse change $ (312) $ (490) 20% adverse change (613) (791) The estimated future amortization expense for the servicing rights is expected to be as follows: (In Thousands) June 30, 2019 2019 $ 2,831 2020 5,135 2021 4,495 2022 3,932 2023 3,414 Thereafter 9,296 Total $ 29,103 Residential mortgage servicing rights The Company’s residential mortgage servicing rights consist of conforming conventional loans sold to Fannie Mae and Freddie Mac or loans securitized in Ginnie Mae securities. Similarly, the government 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 Veteran Affairs. The following table presents additional information about the Company’s residential mortgage servicing rights carried at fair value: As of June 30, 2019 As of December 31, 2018 Unpaid Principal Unpaid Principal (In Thousands) Amount Fair Value Amount Fair Value Fannie Mae $ 3,065,213 $ 32,530 $ 2,848,435 $ 34,562 Ginnie Mae 2,308,720 25,081 2,350,301 29,586 Freddie Mac 2,402,396 28,047 2,267,943 28,917 Total $ 7,776,329 $ 85,658 $ 7,466,679 $ 93,065 The significant assumptions used in the June 30, 2019 and December 31, 2018 valuation of the Company’s residential mortgage servicing rights carried at fair value include: June 30, 2019 December 31, 2018 Range of input Weighted Range of input Weighted Residential mortgage servicing rights (at fair value) • Forward prepayment rate - % % - % % • Discount rate - % % - % % • Servicing expense $ - $ $ $ - $ $ The following table reflects the possible impact of 10% and 20% adverse changes to key assumptions on the fair value of the Company’s residential mortgage servicing rights. (In Thousands) June 30, 2019 December 31, 2018 Prepayment rate 10% adverse change $ (3,671) $ (3,281) 20% adverse change (7,058) (6,330) Discount rate 10% adverse change $ (3,257) $ (3,716) 20% adverse change (6,280) (7,159) Cost of servicing 10% adverse change $ (1,606) $ (1,683) 20% adverse change (3,212) (3,365)

Residential mortgage banking ac

Residential mortgage banking activities and variable expenses on residential mortgage banking activities	6 Months Ended
	Jun. 30, 2019
Residential mortgage banking activities and variable expenses on residential mortgage banking activities
Gains on residential mortgage banking activities, net of variable loan expenses	Note 10 –Residential mortgage banking activities and variable expenses on residential mortgage banking activities Residential mortgage banking activities, reflects 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. Variable expenses include correspondent fee expenses and other direct expenses relating to these loans, which vary based on loan origination volumes. The following table presents the components of residential mortgage banking activities and variable expenses on residential mortgage banking activities recorded in the Company’s unaudited interim consolidated statements of operations. Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Realized and unrealized gains and losses of residential mortgage loans held for sale, at fair value $ 13,886 $ 11,795 $ 24,085 $ 18,074 Creation of new mortgage servicing rights, net of payoffs 3,779 3,665 6,060 8,073 Loan origination fee income on residential mortgage loans 2,624 2,663 4,367 4,838 Unrealized gains (loss) on IRLCs and other derivatives 732 (868) 1,096 293 Residential mortgage banking activities $ 21,021 $ 17,255 $ 35,608 $ 31,279 Variable expenses on residential mortgage banking activities $ (13,501) $ (7,493) $ (22,677) $ (9,783)

Secured Borrowings

Secured Borrowings	6 Months Ended
	Jun. 30, 2019
Secured Borrowings
Secured Borrowings and Promissory Note	Note 11 – Secured Borrowings The following tables present certain characteristics of our secured borrowings: Pledged Assets Carrying Value (In Thousands) Maturity Pricing Facility June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Borrowings under credit facilities JPMorgan - Commercial (1) May 2020 1M L + 2.00 to 2.50% $ 225,000 $ 157,334 $ 85,393 $ 127,983 $ 68,417 Keybank - Commercial (2) February 2020 1M L + 1.50% 125,000 35,684 23,322 35,037 22,973 East West - Commercial (3) July 2020 Prime - 0.821 to + 0.29% 50,000 54,017 37,255 41,113 27,443 Comerica - Residential (4) September 2019 1M L + 1.75% 125,000 79,024 35,860 74,580 40,231 Associated Bank - Residential (4) August 2019 1M L + 1.75% 40,000 19,265 13,653 18,165 15,907 Origin Bank - Residential (4) May 2020 Variable Pricing 50,000 28,084 16,831 26,512 12,870 East West - Residential (4) September 2023 1M L + 2.50% 50,000 60,577 63,479 38,300 8,500 Rabobank - Commercial (5) January 2021 4.22% 14,500 19,950 — 12,681 — FCB - Commercial (6) June 2021 2.75% 2,158 2,686 3,219 2,114 2,974 Total borrowings under credit facilities (10) $ 681,658 $ 456,621 $ 279,012 $ 376,485 $ 199,315 Borrowings under repurchase agreements Citibank - Commercial (8) August 2019 1M L + 1.875 to 2.125% $ 500,000 $ 256,871 $ 230,140 $ 217,072 $ 194,117 Deutsche Bank- Commercial (6) February 2020 3M L + 2.30 to 2.80% 300,000 188,840 310,797 144,900 239,972 JPMorgan - Commercial (7) December 2020 1M L + 2.25 to 4.00% 200,000 96,413 144,337 61,302 96,343 JPMorgan - MBS (9) September 2019 3.67 to 5.10% 42,907 66,806 39,882 42,907 24,881 Deutsche Bank - MBS (9) August 2019 4.17 to 4.59% 39,524 59,331 24,536 39,524 17,425 Bank of America - MBS (9) July 2019 3.03 to 3.38% 45,863 54,249 — 45,863 — RBC - MBS (9) October 2019 3.73 to 4.17% 60,815 81,167 83,818 60,815 62,494 Total borrowings under repurchase agreements (11) $ 1,189,109 $ 803,677 $ 833,510 $ 612,383 $ 635,232 Total secured borrowings $ 1,870,767 $ 1,260,298 $ 1,112,522 $ 988,868 $ 834,547 (1) Borrowings are used to finance SBC and SBA loan acquisitions, and SBA loan originations. (2) Borrowings are used to finance Freddie Mac SBC loan originations. (3) Borrowings are used to finance SBA loan acquisitions and loan originations. (4) Borrowings are used to finance Residential Agency loan originations. (5) Borrowings are used to finance Real estate acquired in settlement of loans. (6) Borrowings are used to finance SBC loan originations, Transitional loan originations, and SBC loan acquisitions. (7) Borrowings are used to finance SBC loan originations and Transitional loan originations. (8) Borrowings are used to finance SBC loan originations and SBC loan acquisitions. (9) Borrowings are used to finance Mortgage backed securities and Retained interests in consolidated VIE's. (10) The weighted average interest rate of borrowings under credit facilities was 4.2% and 4.6% as of June 30, 2019 and December 31, 2018, respectively. (11) The weighted average interest rate of borrowings under repurchase agreements was 5.0% and 4.0% as of June 30, 2019 and December 31, 2018, respectively. The following table presents the carrying value of the Company’s collateral pledged with respect to secured borrowings and promissory note payable outstanding with our lenders: Pledged Assets (In Thousands) June 30, 2019 December 31, 2018 Collateral pledged - borrowings under credit facilities Loans, net $ 376,094 $ 215,533 Mortgage servicing rights 60,577 63,479 Real estate acquired in settlement of loans 19,950 — Total collateral pledged on borrowings under credit facilities $ 456,621 $ 279,012 Collateral pledged - borrowings under repurchase agreements Loans, net $ 542,124 $ 685,274 Mortgage backed securities 85,871 112,552 Retained interest in assets of consolidated VIEs 175,682 35,684 Total collateral pledged on borrowings under repurchase agreements $ 803,677 $ 833,510 Total collateral pledged on secured borrowings $ 1,260,298 $ 1,112,522 The agreements governing the Company’s secured borrowings and promissory note require the Company to maintain certain financial and debt covenants. The Company was in compliance with all debt and financial covenants as of June 30, 2019 and December 31, 2018.

Senior secured notes, Convertib

Senior secured notes, Convertible notes, and Corporate debt, net	6 Months Ended
	Jun. 30, 2019
Senior secured notes, Convertible notes, and Corporate debt, net
Senior secured notes, Convertible notes, and Corporate debt	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 June 30, 2019, 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 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 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 June 30, 2019, 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 (“Corporate debt” or “Notes”). The Company issued the 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 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 Notes will mature on April 30, 2021, unless earlier redeemed or repurchased. Prior to April 30, 2019, the Notes will not be redeemable by the Company. The Company may redeem for cash all or any portion of the 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 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 Notes, at its option, at a redemption price equal to 100% of the principal amount of the 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 Notes, in whole or in part, for cash at a repurchase price equal to 101% of the aggregate principal amount of the 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 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 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. As of June 30, 2019, we were in compliance with all covenants with respect to the corporate debt. The following table presents the components of the Senior Secured Notes, Convertible Notes, and Corporate debt, including the carrying value for the aggregate contractual maturities, on the unaudited interim consolidated balance sheet: (in thousands, except rates) Coupon Rate Maturity Date June 30, 2019 Senior secured notes principal amount (1) 7.50 % 2/15/2022 $ 180,000 Unamortized premium - Senior secured notes 2,034 Unamortized deferred financing costs - Senior secured notes (2,948) Total Senior secured notes, net $ 179,086 Convertible notes - principal amount (2) 7.00 % 8/15/2023 115,000 Unamortized discount - Convertible notes (3) (1,629) Unamortized deferred financing costs - Convertible notes (2,865) Total Convertible notes, net $ 110,506 Corporate debt principal amount (4) 6.50 % 4/30/2021 $ 50,000 Unamortized deferred financing costs - Corporate debt (1,205) Total Corporate debt, net $ 48,795 Total carrying amount of debt components $ 338,387 Total carrying amount of conversion option of equity components recorded in equity $ 1,629 (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. The following table presents the contractual maturities of the Senior Secured Notes, Convertible Notes, and Corporate debt: (In Thousands) June 30, 2019 2019 $ — 2020 — 2021 48,795 2022 179,086 2023 110,506 Thereafter — Total $ 338,387

Guaranteed loan financing

Guaranteed loan financing	6 Months Ended
	Jun. 30, 2019
Guaranteed loan financing.
Guaranteed loan financing	Note 13 – Guaranteed loan financing Participations or other partial loan sales which do not meet the definition of a participating interest remain as an investment on the unaudited interim consolidated balance sheets and 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. The following table presents guaranteed loan financing and the related interest rates and maturity dates: Weighted Range of Average Interest Range of (In Thousands) Interest Rate Rates Maturities (Years) Ending Balance June 30, 2019 3.66 % 3.46 – 8.25 % 2019 - 2037 $ 28,445 December 31, 2018 4.46 % 1.70 – 8.00 % 2019 - 2038 $ 229,678 The following table summarizes contractual maturities of total guaranteed loan financing outstanding: (In Thousands) June 30, 2019 2019 $ 154 2020 460 2021 531 2022 149 2023 421 Thereafter 26,730 Total $ 28,445 Our guaranteed loan financings are secured by loans, net of $37.0 million and $249.2 million as of June 30, 2019 and December 31, 2018, respectively.

Variable Interest Entities and

Variable Interest Entities and Securitization Activities	6 Months Ended
	Jun. 30, 2019
Variable Interest Entities and Securitization Activities
Variable Interest Entities and Securitization Activities	Note 14 – Variable Interest Entities and Securitization Activities In the normal course of business, we enter into certain types of transactions with entities that are considered to be VIEs. Our primary involvement with VIEs has been related to our securitization transactions in which we transfer assets to securitization trusts. We primarily securitize acquired SBC loans, originated transitional loans, and acquired SBA loans, which provides a source of funding for us and has enabled us to transfer a certain portion of the economic risk of the loans or related debt securities to third parties. We also transfer originated loans to securitization trusts sponsored by third parties, most notably Freddie Mac. Third-party securitizations are securitization entities in which we maintain an economic interest, but do not sponsor. 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 majority of the VIEs in which we have been involved in are consolidated within our financial statements. See Note 3 for a discussion of our accounting policies applied to the consolidation of the VIE and transfer of the loans in connection with the securitization. Securitization-Related VIEs Company sponsored securitizations In a securitization transaction, assets are transferred to a trust, which generally meets the definition of a VIE. Our primary securitization activity is in the form of SBC and SBA loan securitizations, conducted through securitization trusts which we consolidate, as we determined that we are the primary beneficiary. For financial statement reporting purposes, since the underlying trust is consolidated, the securitization is effectively viewed as a financing of the loans that were securitized to enable the senior security to be created and sold to a third-party investor. As such, the senior security is presented on the consolidated balance sheets as securitized debt obligations of consolidated VIEs. The third-party beneficial interest holders in the VIE have no recourse against the Company, except that the Company has an obligation to repurchase assets from the VIE in the event that certain representations and warranties in relation to the loans sold to the VIE are breached. In the absence of such a breach, the Company has no obligation to provide any other explicit or implicit support to any VIE. The securitization trust receives principal and interest on the underlying loans and distributes those payments to the certificate holders. The assets and other instruments held by the securitization trust are restricted in that they can only be used to fulfill the obligations of the securitization trust. The risks associated with the Company’s involvement with the VIE is limited to the risks and rights as a certificate holder of the securities retained by the Company. The consolidation of the securitization transactions includes the senior securities issued to third parties which are shown as securitized debt obligations of consolidated VIEs on the consolidated balance sheets. The following table presents additional information on the Company’s securitized debt obligations: June 30, 2019 December 31, 2018 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 $ 9,383 $ 9,383 5.5 % $ 12,226 $ 12,226 5.4 % ReadyCap Lending Small Business Trust 2015-1 — — 3.8 3,397 1,180 3.4 Sutherland Commercial Mortgage Trust 2017-SBC6 55,919 54,939 3.4 69,764 68,574 3.3 Sutherland Commercial Mortgage Trust 2018-SBC7 173,542 171,071 4.7 205,451 202,491 4.7 Sutherland Commercial Mortgage Trust 2019-SBC8 246,218 243,377 2.9 — — — ReadyCap Commercial Mortgage Trust 2014-1 29,198 29,210 5.6 36,108 36,129 4.5 ReadyCap Commercial Mortgage Trust 2015-2 90,904 87,721 4.3 110,497 106,755 4.2 ReadyCap Commercial Mortgage Trust 2016-3 44,280 42,594 4.1 63,945 62,053 3.7 ReadyCap Commercial Mortgage Trust 2018-4 138,003 133,974 3.9 144,701 140,314 3.9 ReadyCap Commercial Mortgage Trust 2019-5 349,556 338,850 4.1 — — — Ready Capital Mortgage Financing 2017-FL1 21,500 20,991 5.4 63,615 61,902 3.7 Ready Capital Mortgage Financing 2018-FL2 173,675 171,138 3.7 217,057 213,743 3.4 Ready Capital Mortgage Financing 2019-FL3 267,904 263,865 3.8 — — — Total $ 1,600,082 $ 1,567,113 3.9 % $ 926,761 $ 905,367 4.0 % Repayment of our securitized debt will be dependent upon the cash flows generated by the loans in the securitization trust that collateralize such debt. The actual cash flows from the securitized loans are comprised of coupon interest, scheduled principal payments, prepayments and liquidations of the underlying loans. The actual term of the securitized debt may differ significantly from our estimate given that actual interest collections, mortgage prepayments and/or losses on liquidation of mortgages may differ significantly from those expected. Third-party sponsored securitizations For third-party sponsored securitizations, we determined that we are not the primary beneficiary because we do not have the power to direct the activities that most significantly impact the economic performance of these entities. Specifically, we do not manage these entities or otherwise solely hold decision making powers that are significant, which include special servicing decisions. As a result of this assessment, we do not consolidate any of the underlying assets and liabilities of these trusts, we only account for our specific interests in them. Other VIEs Other VIEs include a variable interest that we hold in an acquired joint venture investment that we account for as an equity method investment. We do not consolidate these entities because we do not have the power to direct the activities that most significantly impact their economic performance, we only account for our specific interest in them. Assets and Liabilities of Consolidated VIEs The following table reflects the securitized assets and liabilities for VIEs that we consolidate on our consolidated balance sheets: (In Thousands) June 30, 2019 December 31, 2018 Assets: Cash and cash equivalents $ 45 $ — Restricted cash 22,051 11,643 Loans, net 2,057,307 1,220,974 Real estate acquired in settlement of loans — 176 Accrued interest 11,077 6,750 Due from servicers 18,230 11,514 Total assets $ 2,108,710 $ 1,251,057 Liabilities: Securitized debt obligations of consolidated VIEs, net 1,567,113 905,367 Total liabilities $ 1,567,113 $ 905,367 Assets of Unconsolidated VIEs The following table reflects our variable interests in identified VIEs, of which we are not the primary beneficiary, as of June 30, 2019 and December 31, 2018: Carrying Maximum (1) (In Thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Assets: Mortgage backed securities, at fair value (2) $ 82,610 $ 75,591 $ 82,610 $ 75,591 Investment in unconsolidated joint ventures 47,551 33,438 47,551 33,438 Total assets in unconsolidated VIEs $ 130,161 $ 109,029 $ 130,161 $ 109,029 (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 third-party sponsored securitizations.

Interest Income and Interest Ex

Interest Income and Interest Expense	6 Months Ended
	Jun. 30, 2019
Interest Income and Interest Expense
Interest Income and Interest Expense	Note 15 – Interest Income and Interest Expense Interest income and interest expense are recorded in the unaudited interim consolidated statements of income and classified based on the nature of the underlying asset or liability. The following table presents the components of interest income and expense: Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Interest income Loans Acquired SBA 7(a) loans $ 4,288 $ 7,968 $ 11,469 $ 15,840 Acquired loans 15,012 12,707 25,265 22,166 Originated Transitional loans 17,056 10,038 31,241 18,950 Originated SBC loans, at fair value 354 497 721 2,525 Originated SBC loans 11,898 7,204 24,180 12,944 Originated SBA 7(a) loans 2,836 1,030 4,764 1,873 Acquired Transitional loans 2,777 — 2,777 — Originated Residential Agency loans 16 12 22 24 Total loans (1) $ 54,237 $ 39,456 $ 100,439 $ 74,322 Held for sale, at fair value, loans Originated Residential Agency loans $ 1,047 $ 987 $ 1,823 $ 1,864 Originated Freddie loans 198 431 455 942 Acquired loans 37 77 73 90 Total loans, held for sale, at fair value $ 1,282 $ 1,495 $ 2,351 $ 2,896 Mortgage backed securities, at fair value 1,515 907 2,997 1,789 Total interest income $ 57,034 $ 41,858 $ 105,787 $ 79,007 Interest expense Secured borrowings $ (11,540) $ (8,747) $ (21,449) $ (15,969) Securitized debt obligations of consolidated VIEs (17,038) (8,288) (33,539) (15,491) Guaranteed loan financing (518) (2,956) (3,228) (5,770) Senior secured note (3,481) (3,487) (6,965) (6,726) Convertible note (2,188) (2,187) (4,376) (4,373) Corporate debt (988) (742) (1,972) (742) Total interest expense $ (35,753) $ (26,407) $ (71,529) $ (49,071) Net interest income before provision for loan losses $ 21,281 $ 15,451 $ 34,258 $ 29,936 (1) Includes interest income on loans in consolidated VIEs.

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jun. 30, 2019
Derivative Instruments
Derivative Instruments	Note 16 – Derivative Instruments The Company is exposed to changing interest rates and market conditions, which affect cash flows associated with borrowings. The Company uses derivative instruments to manage interest rate risk and conditions in the commercial mortgage market and, as such, views them as economic hedges. 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 making payments based on a fixed interest rate over the life of the swap contract. CDS are executed in order to mitigate the risk of deterioration in the current credit health of the commercial mortgage market. IRLCs are entered into with customers who have applied for residential mortgage loans and meet certain underwriting criteria. These commitments expose GMFS to market risk if interest rates change, and if the loan is not economically hedged or committed to an investor. For derivative instruments that the Company has not elected hedge accounting, the fair value adjustments on such instruments are recorded in earnings. The fair value adjustments for interest rate swaps and CDS, along with the related interest income, interest expense and gains/(losses) on termination of such instruments, are reported as a net realized gain on financial instruments on the unaudited interim consolidated statements of income. The fair value adjustments for IRLCs, along with the related interest income, interest expense and gains/(losses) on termination of such instruments, are reported in residential mortgage banking activities on the unaudited interim consolidated statements of income. As described in Note 3, for qualifying cash flow hedges, the entire change in the fair value of the derivative is recorded in other comprehensive income/(loss) ("OCI") and recognized in the consolidated statements of income when the hedged cash flows affect earnings. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item, primarily interest expense. The ineffective portions of the cash flow hedges are immediately recognized in earnings. The following tables summarize the Company’s use of derivatives and their effect on the unaudited interim consolidated financial statements. Notional amounts included in the table are the average notional amounts on the unaudited interim consolidated balance sheet dates. We believe these are the most relevant measure of volume or derivative activity as they best represent the Company’s exposure to underlying instruments. The following table summarize our derivatives, by type, as of June 30, 2019 and December 31, 2018: As of June 30, 2019 As of December 31, 2018 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 Credit Default Swaps Credit Risk $ 15,000 $ — $ (59) $ 15,000 $ 295 $ — Interest Rate Swaps - not designated as hedges Interest rate risk 304,500 — (1,798) 411,811 — (2,349) Interest Rate Swaps - designated as hedges Interest rate risk 297,251 — (7,175) 134,325 — (1,276) Interest rate lock commitments Interest rate risk 289,113 3,670 — 144,799 1,775 — Total $ 905,864 $ 3,670 $ (9,032) $ 705,935 $ 2,070 $ (3,625) The following tables summarize the gains and losses on the Company’s derivatives: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Net Realized Unrealized Net Realized Unrealized (In Thousands) Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Credit default swaps (1) $ — $ (31) $ — $ (354) Interest rate swaps (1) (3,405) (5,153) (4,200) (4,549) Residential mortgage banking activities interest rate swaps (2) — (456) — (799) Interest rate lock commitments (2) — 1,188 — 1,896 Total $ (3,405) $ (4,452) $ (4,200) $ (3,806) (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. Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Net Realized Unrealized Net Realized Unrealized (In Thousands) Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Credit default swaps (1) $ — $ 198 $ — $ 206 Interest rate swaps (1) (951) 931 3,603 (415) Residential mortgage banking activities interest rate swaps (2) — (230) — (712) Interest rate lock commitments (2) — (638) — 1,005 Total $ (951) $ 261 $ 3,603 $ 84 (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. The following tables summarize the gains and losses on the Company’s derivatives which have qualified for hedge accounting: (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) $ 59 $ — $ 59 $ (6,638) $ (6,579) Total - Three months ended June 30, 2019 $ 59 $ — $ 59 $ (6,638) $ (6,579) Hedge type Interest rate - forecasted transactions (1) $ — $ — $ — $ — $ — Total - Three months ended June 30, 2018 $ — $ — $ — $ — $ — Hedge type Interest rate - forecasted transactions (1) $ 100 $ — $ 100 $ (7,097) $ (6,997) Total - Six months ended June 30, 2019 $ 100 $ — $ 100 $ (7,097) $ (6,997) Hedge type Interest rate - forecasted transactions (1) $ — $ — $ — $ — $ — Total - Six months ended June 30, 2018 $ — $ — $ — $ — $ — (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.

Real Estate Acquired in Settlem

Real Estate Acquired in Settlement of Loans	6 Months Ended
	Jun. 30, 2019
Real Estate Acquired in Settlement of Loans
Real Estate Acquired in Settlement of Loans	Note 17 – Real Estate Acquired in Settlement of Loans The following tables summarize the carrying amount of the Company’s real estate holdings as of the unaudited interim consolidated balance sheet dates: (In Thousands) June 30, 2019 December 31, 2018 Acquired ORM Portfolio: Retail $ 19,950 $ — Mixed Use 17,478 — Lodging/Residential 10,711 — Land 8,711 — Office 1,256 — Services 1,034 — Total Acquired ORM REO $ 59,140 $ — Other REO held for sale: Office $ 5,739 6,719 SBA 303 23 Mixed Use 279 279 Retail 191 191 Single Family 182 368 Multi-Family — 207 Total Other REO $ 6,694 $ 7,787 Total Real estate acquired in settlement of loans, held for sale $ 65,834 $ 7,787

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related-Party Transactions
Related Party Transactions	Note 18 – Related Party Transactions Management Agreement The Company has entered into a management agreement with the Manager (the “Management Agreement”), which describes the services to be provided to us by the Manager and compensation for such services. The Manager is responsible for managing the Company’s day-to-day operations, subject to the direction and oversight of the Company’s board of directors. Management Fee Pursuant to the terms of the Management Agreement, our Manager is paid a management fee calculated and payable quarterly in arrears equal to 1.5% per annum of the Company’s stockholders’ equity (as defined in the Management Agreement) up to $500 million and 1.00% per annum of stockholders’ equity in excess of $500 million. The following table presents certain information on the management fee payable to our Manager: For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Management fee - total $ 2.5 million $ 2.0 million $ 4.5 million $ 4.0 million Management fee - amount unpaid $ 2.5 million $ 2.0 million $ 2.5 million $ 2.0 million Incentive Distribution The Manager is entitled to an incentive distribution in an amount equal to the product of (i) 15% and (ii) the excess of (a) core earnings (as defined in the partnership agreement or our operating partnership) on a rolling four-quarter basis over (b) an amount equal to 8.00% per annum multiplied by the weighted average of the issue price per share of the common stock or OP units multiplied by the weighted average number of shares of common stock outstanding, provided that core earnings over the prior twelve calendar quarters (or the period since the closing of the ZAIS merger, whichever is shorter) is greater than zero. 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 below under Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures” included in this quarterly report on Form 10-Q 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 under "Non-GAAP Financial Measures". The following table presents certain information on the incentive fee payable to our Manager: For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Incentive fee distribution - total $ — $ 0.3 million $ — $ 0.7 million Incentive fee distribution - amount unpaid $ — $ 0.3 million $ — $ 0.3 million The initial term of the Management Agreement extends for three years from the closing of the ZAIS merger and is automatically renewed for one-year terms on each anniversary thereafter. Following the initial term, the Management Agreement may be terminated upon the affirmative vote of at least two-thirds of our independent directors or the holders of a majority of the outstanding common stock (excluding shares held by employees and affiliates of the Manager), based upon (1) unsatisfactory performance by our Manager that is materially detrimental to the Company or (2) a determination that the management fee payable to the Manager is not fair, subject to the Manager’s right to prevent such a termination based on unfair fees by accepting a mutually acceptable reduction of management fees agreed to by at least two-thirds of our independent directors. The Manager must be provided with written notice of any such termination at least 180 days prior to the expiration of the then existing term and will be paid a termination fee equal to three times the sum of the average annual management fee during the 24-month period immediately preceding the date of termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination. Expense Reimbursement In addition to the management fees and incentive distribution described above, the Company is also responsible for reimbursing the Manager for certain expenses paid by our Manager on behalf of the Company and for certain services provided by the Manager to the Company. Expenses incurred by the Manager and reimbursed by us are typically included in salaries and benefits or general and administrative expense on the unaudited interim consolidated statements of income. The following table presents certain information on reimbursable expenses payable to our Manager: For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Reimbursable expenses payable to our Manager - total $ 1.1 million $ 0.8 million $ 1.9 million $ 1.7 million Reimbursable expenses payable to our Manager - amount unpaid $ 0.4 million $ 0.9 million $ 0.4 million $ 0.9 million Other In March of 2018, the Company acquired 75 loans, net, from Waterfall Olympic Master Fund Grantor Trust, Series I, II, and III, which are also managed by our Manager for $51.6 million, including interest. The total unpaid principal balance of the loans was $51.8 million.

Other Assets and Other Liabilit

Other Assets and Other Liabilities	6 Months Ended
	Jun. 30, 2019
Other Assets and Other Liabilities
Other Assets and Other Liabilities	Note 19 – Other Assets and Other Liabilities The following table details the Company’s other assets and other liabilities as of the unaudited interim consolidated balance sheet dates. (In Thousands) June 30, 2019 December 31, 2018 Other assets: Due from servicers $ 13,454 $ 7,284 Accrued interest 6,882 7,253 Intangible assets 2,759 2,915 Deferred financing costs 1,666 2,564 Deferred tax asset 22,744 18,084 Deferred loan exit fees 10,188 8,668 Other 10,706 8,679 Total other assets $ 68,399 $ 55,447 Accounts payable and other accrued liabilities: Deferred tax liability $ 20,094 $ 19,972 Accrued salaries, wages and commissions 10,929 19,925 Accrued interest payable 12,981 14,244 Servicing principal and interest payable 7,874 10,582 Repair and denial reserve 6,318 5,524 Payable to related parties 2,495 2,580 Unapplied cash 1,219 340 Other accounts payable and accrued liabilities 11,769 1,552 Total accounts payable and other accrued liabilities $ 73,679 $ 74,719 Loan indemnification reserve A liability has been established for potential losses related to representations and warranties made by GMFS for loans sold with a corresponding provision recorded for loan indemnification losses. The liability is included in accounts payable and other accrued liabilities in the Company's unaudited interim consolidated balance sheets and the provision for loan indemnification losses is included in variable expenses on residential mortgage banking activities, in the Company's unaudited interim consolidated statements of income. In assessing the adequacy of the liability, management evaluates various factors including historical repurchases and indemnifications, historical loss experience, known delinquent and other problem loans, outstanding repurchase demand, historical rescission rates and economic trends and conditions in the industry. Actual losses incurred are reflected as a reduction of the reserve liability. At June 30, 2019 and December 31, 2018, the loan indemnification reserve was $2.0 million and $1.7 million, respectively. Because of the uncertainty in the various estimates underlying the loan indemnification reserve, there is a range of losses in excess of the recorded loan indemnification reserve that is reasonably possible. The estimate of the range of possible losses for representations and warranties does not represent a probable loss, and is based on current available information, significant judgment, and a number of assumptions that are subject to change. At June 30, 2019 and December 31, 2018, the reasonably possible loss above the recorded loan indemnification reserve was not considered material.

Other Income and Operating Expe

Other Income and Operating Expenses	6 Months Ended
	Jun. 30, 2019
Other Income and Operating Expenses
Other Income and Other Operating Expenses	Note 20 – Other Income and Operating Expenses The following table details the Company’s other income and operating expenses for the unaudited interim consolidated statements of income. Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Other income Origination income $ 1,709 1,358 $ 2,517 2,511 Release/ (Increase) of repair and denial reserve (76) — (165) (110) Other 1,159 468 1,340 759 Total other income $ 2,792 $ 1,826 $ 3,692 $ 3,160 Other operating expenses Origination costs 2,734 2,573 3,923 4,429 Technology expense 1,057 783 2,158 1,566 Charge off of real estate acquired in settlement of loans 375 981 680 1,000 Rent expense 1,103 563 1,794 1,085 Recruiting, training and travel expenses 592 577 1,179 1,280 Loan acquisition costs (5) 934 105 934 Other 2,229 2,505 5,108 6,633 Total other operating expenses $ 8,085 $ 8,916 $ 14,947 $ 16,927

Stockholders_ Equity

Stockholders’ Equity	6 Months Ended
	Jun. 30, 2019
Stockholders’ Equity
Stockholders’ Equity	Note 21 – Stockholders’ Equity Common stock dividends The following table presents cash dividends declared by our board of directors on our common stock from March 14, 2017 through June 30, 2019: Dividend per Declaration Date Record Date Payment Date Share March 14, 2018 March 30, 2018 April 30, 2018 $ 0.37 June 12, 2018 June 29, 2018 July 31, 2018 $ 0.40 September 11, 2018 September 28, 2018 October 31, 2018 $ 0.40 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 Stock incentive plan The Company currently maintains the 2012 equity incentive plan (“the 2012 Plan”). The 2012 Plan authorizes the Compensation Committee to approve grants of equity-based awards to our officers, directors, and employees of the Manager and its affiliates. The equity incentive plan provides for grants of equity-based awards up to an aggregate of 5% of the shares of the Company’s common stock issued and outstanding from time to time on a fully diluted basis. The Company’s current policy for issuing shares upon settlement of stock-based incentive awards is to issue new shares. The fair value of the RSUs and RSAs granted, which is determined based upon the stock price on the grant date, is recorded as compensation expense on a straight - line basis over the vesting periods for the awards, with an offsetting increase in stockholders’ equity. The following table summarizes the Company’s RSU and RSA activity for the three and six months ended June 30, 2019: Restricted Stock Awards (In Thousands, except share data) Number of Grant date fair value Weighted-average grant date fair value (per share) Outstanding, January 1 118,904 $ 1,661 $ 13.97 Granted 111,097 1,784 16.06 Vested (52,110) (733) 14.06 Forfeited — — — Canceled — — — Outstanding, March 31, 2019 177,891 $ 2,712 $ 15.25 Granted 21,356 310 14.51 Vested (19,766) (293) 14.84 Forfeited (5,746) (82) 14.21 Canceled — — — Outstanding, June 30, 2019 173,735 $ 2,647 $ 15.24 At June 30, 2019, there were 23,104 fully vested RSUs that were not yet issued as common stock. During the three and six months ended June 30, 2019, the Company recognized $0.3 million and $1.0 million of noncash compensation expense, respectively, related to its stock-based incentive plan in its unaudited interim consolidated statements of income. During the three and six months ended June 30, 2018, the Company recognized $0.2 million and $0.4 million of noncash compensation, respectively. At June 30, 2019 and 2018, approximately $2.6 million and $1.6 million of noncash compensation expense related to unvested awards had not yet been charged to net income, respectively. These costs are expected to be amortized into compensation expense ratably over the course of the remainder of the respective vesting periods.

Earnings per Share of Common St

Earnings per Share of Common Stock	6 Months Ended
	Jun. 30, 2019
Earnings per Share of Common Stock
Earnings per Share of Common Stock	Note 22 – Earnings per Share of Common Stock The following table provides information on the basic and diluted earnings per share computations, including the number of shares of common stock used for purposes of these computations: Three Months Ended June 30, Six Months Ended June 30, (In Thousands, except for share and per share amounts) 2019 2018 2019 2018 Basic Earnings Net income $ 11,245 $ 15,884 $ 41,693 $ 34,402 Less: Income attributable to non-controlling interest 276 588 1,257 1,252 Less: Income attributable to participating shares 79 51 161 112 Basic earnings $ 10,890 $ 15,245 $ 40,275 $ 33,038 Diluted Earnings Continuing Operations Net income $ 11,245 $ 15,884 $ 41,693 $ 34,402 Less: Income attributable to non-controlling interest 276 588 1,257 1,252 Less: Income attributable to participating shares 79 51 161 112 Diluted earnings $ 10,890 $ 15,245 $ 40,275 $ 33,038 Number of Shares Basic — Average shares outstanding 44,425,598 32,073,717 38,524,023 32,055,110 Effect of dilutive securities — Unvested participating shares 5,665 19,033 3,294 14,389 Diluted — Average shares outstanding 44,431,263 32,092,750 38,527,317 32,069,499 Earnings Per Share Attributable to RC Common Stockholders: Basic $ 0.25 $ 0.48 $ 1.05 $ 1.03 Diluted $ 0.25 $ 0.48 1.05 1.03 Participating unvested RSUs were excluded from the computation of diluted shares as their effect was already considered under the more dilutive two-class method used above. Additionally, as of June 30, 2019, there are potential shares of common stock contingently issuable upon the conversion of the Convertible Notes in the future. The Company has asserted its intent and ability to settle the principal amount of the Convertible Notes in cash. Based on this assessment, the Company determined that it would be appropriate to apply a method similar to the treasury stock method, such that contingently issuable common stock is assessed quarterly along with our other potentially dilutive instruments. In order to compute the dilutive effect, the number of shares included in the denominator of diluted EPS is determined by dividing the “conversion spread value” of the share-settled portion (value above accreted value of face value and interest component) of the instrument by the share price. The “conversion spread value” is the value that would be delivered to investors in shares based on the terms of the bond upon an assumed conversion. As of June 30, 2019, the conversion spread value is currently zero, since the closing price of our common stock does not exceed the conversion rate (strike price) and is “out-of-the-money”, resulting in no impact on diluted EPS. Certain investors own OP units in our operating partnership. An OP unit and a share of common stock of the Company have substantially the same economic characteristics in as much as they effectively share equally in the net income or loss of the operating partnership. OP unit holders have the right to redeem their OP units, subject to certain restrictions. The redemption is required to be satisfied in shares of common stock or cash at the Company's option, calculated as follows: one share of the Company's common stock, or cash equal to the fair value of a share of the Company's common stock at the time of redemption, for each OP unit. When an OP unit holder redeems an OP unit, non-controlling interests in the operating partnership is reduced and the Company's equity is increased. At June 30, 2019 and December 31, 2018, the non-controlling interest OP unit holders owned 1,117,169 OP units.

Offsetting Assets and Liabiliti

Offsetting Assets and Liabilities	6 Months Ended
	Jun. 30, 2019
Offsetting Assets and Liabilities
Offsetting Assets and Liabilities	Note 23 – Offsetting Assets and Liabilities In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company may enter into an International Swaps and Derivatives Association (“ISDA”) Master Agreement with multiple derivative counterparties. An ISDA Master Agreement, published by ISDA, is a bilateral trading agreement between two parties that allow both parties to enter into over-the-counter (“OTC”), derivative contracts. The ISDA Master Agreement contains a Schedule to the Master Agreement and a Credit Support Annex, which governs the maintenance, reporting, collateral management and default process (netting provisions in the event of a default and/or a termination event). Under an ISDA Master Agreement, the Company may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one 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 June 30, 2019 and December 31, 2018 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 on 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 set off, and (d) the Company’s right of setoff is enforceable at law. As of June 30, 2019 and December 31, 2018, the Company has elected to offset assets and liabilities associated with its OTC derivative contracts in the unaudited interim consolidated balances sheets. The following table provides disclosure regarding the effect of offsetting of the Company’s recognized assets and liabilities presented in the unaudited interim consolidated balance sheet as of June 30, 2019: Gross Assets Amounts Presented in Gross Amounts Not Offset in the Consolidated Gross Offset in the the Balance Sheets (1) Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral (In Thousands) Assets Sheets Sheets Instruments Received Net Amount Credit default swaps $ — $ — $ — $ — $ — $ — Interest rate swaps — — — — — — Total $ — $ — $ — $ — $ — $ — Gross Liabilities Amounts Presented in Gross Amounts Not Offset in the Consolidated Gross Offset in the the Balance Sheets (1) Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral (In Thousands) Liabilities Sheets Sheets Instruments Paid Net Amount Interest rate swaps $ 8,973 $ — $ 8,973 $ — $ 8,973 $ — Credit default swaps 59 — 59 — 59 — Secured borrowings 988,868 — 988,868 988,868 — — Total $ 997,900 $ — $ 997,900 $ 988,868 $ 9,032 $ — (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. The following table provides disclosure regarding the effect of offsetting the Company’s recognized assets and liabilities presented in the unaudited interim consolidated balance sheet as of December 31, 2018: Gross Assets Amounts Presented in Gross Amounts Not Offset in the Consolidated Gross Offset in the the Balance Sheets (1) Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral (In Thousands) Assets Sheets Sheets Instruments Received Net Amount Credit default swaps $ 295 $ — $ 295 $ — $ 295 $ — Total $ 295 $ — $ 295 $ — $ 295 $ — Liabilities Gross Presented in Gross Amounts Not Offset in the Consolidated Gross Amounts the Balance Sheets (1) Amounts of Offset in the Consolidated Cash Recognized Consolidated Balance Financial Collateral (In Thousands) Liabilities Balance Sheets Sheets Instruments Paid Net Amount Interest rate swaps $ 3,625 $ — $ 3,625 $ — $ 3,625 $ — Secured borrowings 834,547 — 834,547 834,547 — — Total $ 838,172 $ — $ 838,172 $ 834,547 $ 3,625 $ — (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.

Financial Instruments with Off-

Financial Instruments with Off-balance Sheet Risk, Credit Risk, and Certain Other Risks	6 Months Ended
	Jun. 30, 2019
Financial Instruments with Off-balance Sheet Risk, Credit Risk, and Certain Other Risks
Financial Instruments with Off-balance Sheet Risk, Credit Risk, and Certain Other Risks	Note 24 – Financial Instruments with Off-balance Sheet Risk, Credit Risk, and Certain Other Risks In the normal course of business, the Company enters into transactions in various financial instruments that expose us to various types of risk, both on and off balance sheet. Such risks are associated with financial instruments and markets in which the Company invests. These financial instruments expose us to varying degrees of market risk, credit risk, interest rate risk, liquidity risk, off balance sheet risk and prepayment risk. 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 — The Company is subject to credit risk in connection with our investments in SBC loans and SBC MBS 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 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 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 rate environment often means an improving economy, which might have a positive impact on commercial property values, resulting in increased gains on the disposition of these assets. While rising rates could make it more costly to refinance these assets, we expect that the impact of this would be mitigated by higher property values. Moreover, small business owners are generally less interest rate sensitive than large commercial property owners, and interest cost is a relatively small component of their operating expenses. An improving economy will likely spur increased property values and sales, thereby increasing the need for SBC financing. Prepayment Risk — As we receive prepayments of principal on our investments, premiums paid on such investments will be amortized against interest income. In general, an increase in prepayment rates will accelerate the amortization of purchase premiums, thereby reducing the interest income earned on the investments and this is also affected by interest rate movements. Conversely, discounts on such investments are accreted into interest income. In general, an increase in prepayment rates will accelerate the accretion of purchase discounts, thereby increasing the interest income earned on the investments. An increase in prepayment rates will also adversely affect the fair value of our MSRs.

Commitments, Contingencies and

Commitments, Contingencies and Indemnifications	6 Months Ended
	Jun. 30, 2019
Commitments, Contingencies and Indemnifications
Commitments, Contingencies and Indemnifications	Note 25 – Commitments, Contingencies and Indemnifications Litigation The Company may be subject to litigation and administrative proceedings arising in the ordinary course of its business. The Company has entered into agreements, which provide for indemnifications against losses, costs, claims, and liabilities arising from the performance of individual obligations under such agreements. The Company has had no prior claims or payments pursuant to these agreements. The Company’s individual maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on history and experience, the Company expects the risk of loss to be remote. Management is not aware of any other contingencies that would require accrual or disclosure in the unaudited interim consolidated financial statements. Unfunded Loan Commitments As of June 30, 2019 and December 31, 2018, the Company had $81.8 and $161.7 million of unfunded loan commitments related to loans, held-for-investment, respectively. As of June 30, 2019 and December 31, 2018, the Company had $9.1 million and $4.9 million of unfunded loan commitments related to loans, held for sale, at fair value, respectively. Commitments to Originate Loans GMFS enters into IRLCs with customers who have applied for residential mortgage loans and meet certain credit and underwriting criteria. These commitments expose GMFS to market risk if interest rates change, and the loan is not economically hedged or committed to an investor. GMFS is also exposed to credit loss if the loan is originated and not sold to an investor and the borrower does not perform. Commitments to originate loans do not necessarily reflect future cash requirements as some commitments are expected to expire without being drawn upon. As of June 30, 2019 and December 31, 2018, total commitments to originate loans were $261.6 million and $124.0 million, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Taxes
Income Taxes	Note 26 – Income Taxes The Company is a REIT pursuant to IRC Section 856. Our qualification as a REIT depends on our ability to meet various requirements imposed by the Internal Revenue Code, which relate to our organizational structure, diversity of stock ownership and certain requirements with regard to the nature of our assets and the sources of our income. As a REIT, we generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings that we distribute. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four taxable years. As of June 30, 2019 and December 31, 2018, we are in compliance with all REIT requirements. Certain of our subsidiaries have elected to be treated as taxable REIT subsidiaries (“TRSs”). TRSs permit us to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Internal Revenue Code, and are conducted in entities which elect to be treated as taxable subsidiaries under the Internal Revenue Code. To the extent these criteria are met, we will continue to maintain our qualification as a REIT. The accompanying unaudited interim consolidated financial statements include an interim tax provision for our TRS’ for the three and six months ended June 30, 2019 and 2018, respectively. Our TRSs engage in various real estate related operations, including originating and securitizing commercial and residential mortgage loans, and investments in real property. The majority of our TRSs are held within the SBC Originations, SBA Originations, Acquisitions and Servicing, and Residential Mortgage Banking segments. Our TRSs are not consolidated for federal income tax purposes, but are instead taxed as corporations. For financial reporting purposes, a provision for current and deferred income taxes is established for the portion of earnings recognized by us with respect to our interest in TRSs. During the three months ended June 30, 2019 and 2018, we recorded an income tax benefit of $3.0 million and income tax expense $0.7 million, respectively. During the six months ended June 30, 2019 and 2018, we recorded an income tax benefit of $6.0 million and an income tax expense of $3.2 million, respectively. The income tax expense for the above periods primarily related to activities of our taxable REIT subsidiaries and various state and local taxes. There were no material changes to uncertain tax positions or valuation allowance assessments during the quarter.

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2019
Segment Reporting
Segment Reporting	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 (“CEO”), 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. Loan Acquisitions Through the Loan 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. 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 loan products 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. Results of Business Segments and All Other Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the three months ended June 30, 2019 are summarized in the below table. SBA Originations, Residential Loan SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 18,208 $ 30,639 $ 7,124 $ 1,063 $ — $ 57,034 Interest expense (10,602) (21,401) (2,300) (1,450) — (35,753) Net interest income before provision for loan losses $ 7,606 $ 9,238 $ 4,824 $ (387) $ — $ 21,281 Provision for loan losses (544) (350) (454) — — (1,348) Net interest income after provision for loan losses $ 7,062 $ 8,888 $ 4,370 $ (387) $ — $ 19,933 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 21,021 $ — $ 21,021 Net realized gain on financial instruments 453 1,627 4,175 — — 6,255 Net unrealized gain on financial instruments (661) (76) 71 (6,340) — (7,006) Other income 957 1,661 39 85 50 2,792 Servicing income — 461 1,818 5,532 — 7,811 Income from unconsolidated joint ventures 2,083 — — — — 2,083 Gain on bargain purchase — — — — — — Total non-interest income $ 2,832 $ 3,673 $ 6,103 $ 20,298 $ 50 $ 32,956 Non-interest expense Employee compensation and benefits (26) (1,774) (4,424) (5,445) (840) (12,509) Allocated employee compensation and benefits from related party (125) — — — (1,125) (1,250) Variable expenses on residential mortgage banking activities — — — (13,501) — (13,501) Professional fees (47) (313) (169) (229) (828) (1,586) Management fees – related party — — — — (2,495) (2,495) Loan servicing expense (1,117) (1,475) (260) (1,677) (42) (4,571) Merger related expenses — — — — (603) (603) Other operating expenses (882) (2,712) (2,076) (2,054) (361) (8,085) Total non-interest expense $ (2,197) $ (6,274) $ (6,929) $ (22,906) $ (6,294) $ (44,600) Net income (loss) before provision for income taxes $ 7,697 $ 6,287 $ 3,544 $ (2,995) $ (6,244) $ 8,289 Total assets $ 1,158,351 $ 2,055,751 $ 261,326 $ 303,465 $ 61,430 $ 3,840,323 Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the six months ended June 30, 2019 are summarized in the below table. SBA Originations, Residential Loan SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 28,881 $ 58,828 $ 16,233 $ 1,845 $ — $ 105,787 Interest expense (18,307) (42,068) (8,790) (2,364) — (71,529) Net interest income before provision for loan losses $ 10,574 $ 16,760 $ 7,443 $ (519) $ — $ 34,258 Provision for loan losses (677) (309) (880) — — (1,866) Net interest income after provision for loan losses $ 9,897 $ 16,451 $ 6,563 $ (519) $ — $ 32,392 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 35,608 $ — $ 35,608 Net realized gain on financial instruments 404 5,167 7,966 — — 13,537 Net unrealized gain on financial instruments (680) 734 (504) (13,468) — (13,918) Other income 1,025 2,447 53 102 65 3,692 Servicing income 1 897 2,833 10,832 — 14,563 Income from unconsolidated joint ventures 5,012 — — — — 5,012 Gain on bargain purchase — — — — 30,728 30,728 Total non-interest income $ 5,762 $ 9,245 $ 10,348 $ 33,074 $ 30,793 $ 89,222 Non-interest expense Employee compensation and benefits (27) (4,034) (8,192) (10,040) (1,664) (23,957) Allocated employee compensation and benefits from related party (210) — — — (1,893) (2,103) Variable expenses on residential mortgage banking activities — — — (22,677) — (22,677) Professional fees (217) (614) (356) (465) (1,763) (3,415) Management fees – related party — — — — (4,492) (4,492) Incentive fees – related party — — — — — — Loan servicing expense (1,918) (2,690) (117) (3,417) (77) (8,219) Merger related expenses — — — — (6,070) (6,070) Other operating expenses (1,304) (4,829) (3,126) (4,127) (1,561) (14,947) Total non-interest expense $ (3,676) $ (12,167) $ (11,791) $ (40,726) $ (17,520) $ (85,880) Net income (loss) before provision for income taxes $ 11,983 $ 13,529 $ 5,120 $ (8,171) $ 13,273 $ 35,734 Total assets $ 1,158,351 $ 2,055,751 $ 261,326 $ 303,465 $ 61,430 $ 3,840,323 Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the three months ended June 30, 2018 are summarized in the below table. SBA Originations, Residential Loan SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 12,970 $ 18,891 $ 8,998 $ 999 $ — $ 41,858 Interest expense (6,277) (15,320) (3,972) (838) — (26,407) Net interest income before provision for loan losses $ 6,693 $ 3,571 $ 5,026 $ 161 $ — $ 15,451 Provision for loan losses 80 73 244 — — 397 Net interest income after provision for loan losses $ 6,773 $ 3,644 $ 5,270 $ 161 $ — $ 15,848 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 17,255 $ — $ 17,255 Net realized gain on financial instruments (52) 3,532 5,140 — — 8,620 Net unrealized gain (loss) on financial instruments 848 4,130 (819) 298 — 4,457 Other income 111 1,356 291 68 — 1,826 Servicing income 5 330 1,464 4,828 — 6,627 Income from unconsolidated joint ventures 1,503 — — — — 1,503 Total non-interest income $ 2,415 $ 9,348 $ 6,076 $ 22,449 $ — $ 40,288 Non-interest expense Employee compensation and benefits $ (141) $ (2,285) $ (3,138) $ (8,535) $ (173) (14,272) Allocated employee compensation and benefits from related party (120) — — — (1,080) (1,200) Variable expenses on residential mortgage banking activities — — — (7,493) (7,493) Professional fees (150) (325) (524) (115) (1,287) (2,401) Management fees – related party — — — — (2,036) (2,036) Incentive fees – related party — — — — (269) (269) Loan servicing (expense) income (764) (886) 211 (1,561) — (3,000) Other operating expenses (1,998) (3,287) (970) (1,981) (680) (8,916) Total non-interest expense $ (3,173) $ (6,783) $ (4,421) $ (19,685) $ (5,525) $ (39,587) Net income (loss) before provision for income taxes $ 6,015 $ 6,209 $ 6,925 $ 2,925 $ (5,525) $ 16,549 Total assets $ 707,943 $ 1,296,872 $ 489,938 $ 298,027 $ 20,200 $ 2,812,980 Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the six months ended June 30, 2018 are summarized in the below table. SBA Originations, Residential Loan SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 22,655 $ 36,751 $ 17,713 $ 1,888 $ — $ 79,007 Interest expense (12,106) (27,790) (7,592) (1,583) — (49,071) Net interest income before provision for loan losses $ 10,549 $ 8,961 $ 10,121 $ 305 $ — $ 29,936 Provision for loan losses (192) 109 312 — — 229 Net interest income after provision for loan losses $ 10,357 $ 9,070 $ 10,433 $ 305 $ — $ 30,165 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 31,279 $ — $ 31,279 Net realized gain on financial instruments 94 12,231 8,526 — — 20,851 Net unrealized gain (loss) on financial instruments 801 1,763 (286) 5,186 — 7,464 Other income 268 2,615 168 109 — 3,160 Servicing income 10 582 2,716 9,729 — 13,037 Income on unconsolidated joint ventures 7,243 — — — — 7,243 Total non-interest income $ 8,416 $ 17,191 $ 11,124 $ 46,303 $ — $ 83,034 Non-interest expense Employee compensation and benefits $ (313) $ (4,922) $ (6,393) $ (17,650) $ (314) $ (29,592) Allocated employee compensation and benefits from related party (240) — — — (2,160) (2,400) Variable expenses on residential mortgage banking activities — — — (9,783) — (9,783) Professional fees (467) (714) (1,003) (224) (2,641) (5,049) Management fees – related party — — — — (4,049) (4,049) Incentive fees – related party — — — — (676) (676) Loan servicing expense (1,565) (1,525) 287 (4,290) — (7,093) Other operating expenses (2,816) (5,967) (2,080) (4,681) (1,383) (16,927) Total non-interest expense $ (5,401) $ (13,128) $ (9,189) $ (36,628) $ (11,223) $ (75,569) Net income (loss) before provision for income taxes $ 13,372 $ 13,133 $ 12,368 $ 9,980 $ (11,223) $ 37,630 Total assets $ 707,943 $ 1,296,872 $ 489,938 $ 298,027 $ 20,200 $ 2,812,980

Supplemental Financial Data

Supplemental Financial Data	6 Months Ended
	Jun. 30, 2019
Supplemental Financial Data
Supplemental Financial Data	Note 28 – Supplemental Financial Data Summarized Financial Information of Our Unconsolidated Subsidiaries In November of 2017, the Company acquired an interest in an SBC loan pool through a joint venture, WFLLA, LLC, which the Company has a 50% interest. Pursuant to the consolidation guidance, we determined our interest in the entity is a VIE, however, we do not consolidate the entity as we determined that we are not the primary beneficiary. WFLLA, LLC holds a 49.9% interest in another company, Girod HoldCo, LLC, whom owns and manages the day-to-day affairs and business associated with the SBC loan pool. In accordance with Regulation S-X section 10-01(b)-1, unconsolidated entities that meet certain significance tests are required to have supplemental disclosures included in our unaudited interim financial statements, including condensed financial information for the three and six months ended June 30, 2019 and 2018. Statements of Income Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (In Thousands) Girod HoldCo, LLC WFLLA, LLC Girod HoldCo, LLC WFLLA, LLC Interest income $ 3,678 $ 1,835 $ 4,418 $ 2,205 Realized gains 430 215 2,135 1,065 Unrealized gains 5,091 2,540 1,242 620 Servicing expense and other (1,460) (733) (1,760) (884) Income before provision for income taxes $ 7,739 $ 3,857 $ 6,035 $ 3,006 Statements of Income Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (In Thousands) Girod HoldCo, LLC WFLLA, LLC Girod HoldCo, LLC WFLLA, LLC Interest income $ 4,835 $ 2,413 $ 12,265 $ 6,120 Realized gains 631 315 16,038 8,003 Unrealized gains 16,368 8,168 4,505 2,248 Servicing expense and other (2,357) (1,181) (3,765) (1,885) Income before provision for income taxes $ 19,477 $ 9,715 $ 29,043 $ 14,486 Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Income on unconsolidated joint ventures WFLLA, LLC $ 1,929 $ 1,503 $ 4,858 $ 7,243 Other unconsolidated joint ventures 154 — 154 — Income on unconsolidated joint ventures $ 2,083 $ 1,503 $ 5,012 $ 7,243 During the three six months ended June 30, 2019 and 2018, the Company recorded $5.0 million and $7.2 million of income, respectively, which is based on our proportional ownership interest in the entities above. During the three months ended June 30, 2019 and 2018, the Company recorded $2.1 million and $1.5 million of income, respectively. These amounts are reflected in Income on unconsolidated joint ventures within the interim unaudited statement of income.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events
Subsequent Events	Note 29 – Subsequent Events In July 2019, the Company completed the issuance of a public offering of $57.5 million in 6.2% senior notes due July 2026. Interest on the notes will be paid at a rate of 6.2% 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 Notes will mature on July 30, 2026, unless earlier repurchased or redeemed. In July 2019, the Company entered into a $100,000,000 master repurchase agreement expiring July 22, 2020, with TBK Bank, which provides financing for the Company's origination of residential agency mortgage loans. Interest under the agreement is at 75 basis points lower than the interest rate for any mortgage note funded on this warehouse line with a floor of 400 basis points.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
Use of Estimates	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. Actual results could differ from those estimates.
Basis of Consolidation	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	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. As described in further detail below, effective during the fourth quarter of 2018, the Company revised its presentation of residential mortgage banking activities and variable expenses on residential mortgage banking activities within our Consolidated Statements of Income and Note 10, which no longer presents these amounts as a net amount. Prior period numbers were revised to conform to the new presentation and to be consistent with our current period’s presentation.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company has accounted 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. As of December 31, 2018, the Company had $0.6 million in money market mutual funds, and substantially all of the Company’s cash and cash equivalents not held in money market funds were comprised of cash balances with banks that are in excess of the Federal Deposit Insurance Corporation insurance limits. As of June 30, 2019 this balance was zero.
Restricted Cash	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 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 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 ReadyCap that we do not intend to sell, or securitized loans that were previously originated by ReadyCap. 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. Acquired loans are accounted for in accordance with ASC 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”) and referred to as “purchased credit impaired loans” (PCI loans) if both of the following conditions are met as of the acquisition date: (i) there is evidence of deterioration in credit quality of the loan since its origination and (ii) it is probable that we will not collect all contractual cash flows on the loan. Acquired loans without evidence of these conditions, securitized loans, and loans originated by ReadyCap that we do not intend to sell are accounted for under ASC 310-10, Receivables- Overall , (“ASC 310-10”) and are referred to as “Non-purchased credit impaired loans” (non-PCI loans). Purchased Credit Impaired (PCI) Loans The estimated cash flow expected for each loan is estimated at the time the loan is acquired. The excess of the cash flows expected to be collected on PCI loans, measured as of the acquisition date, over the initial investment is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan using the interest method of accretion. The difference between contractually required payments as of the acquisition date and the cash flows expected to be collected is referred to as the non-accretable difference and is not accreted over time. The Company estimates expected cash flows to be collected over the life of individual PCI loans on a quarterly basis. If the Company determines that discounted expected cash flows have decreased, the PCI loans would be considered impaired, which would result in a provision for loan loss and a corresponding increase in the allowance for loan losses. If discounted expected cash flows have increased, or improved, in subsequent evaluations, the increase in cash flows is first used to reverse the amount of any related allowance for loan losses before the yield is adjusted. Additionally, the Company will increase the accretable yield to account for the increase in expected cash flows. The estimate of the amount and timing of cash flows for our PCI loans is based on historical information available and expected future performance of the loans, and may include the timing of expected future cash flows, prepayment speed, default rates, loss severities, delinquency rates, percentage of non-performing loans, extent of credit support available, Fair Isaac Corporation (“FICO”) scores at loan origination, year of origination, loan-to-value ratios, geographic concentrations, as well as reports by credit rating agencies, such as Moody’s, Standard & Poor’s Corporation (“S&P”), or Fitch, general market assessments and dialogue with market participants. As a result, substantial judgment is used in the analysis to determine the expected cash flows. Non-PCI Loans 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. For non-PCI loans, 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 not to be 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 it 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 ReadyCap for which the Company has elected the fair value option. Interest is recognized as interest income on 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	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 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. We determine the allowance for loan losses by measuring credit impairment on (1) an individual basis for non-accrual status loans, and (2) on a collective basis for all other loans with similar risk characteristics. The allowance for loan losses on an individual basis is assessed when a loan is on non-accrual and the recoverability of the loan is less than its carrying value. The Company considers the loans to be collateral dependent and relies on the current fair value of the collateral as the basis for determining impairment. Loans that are not assessed individually for impairment are assessed on a collective basis. For the acquired loans we perform a historical analysis on both cumulative defaults and severity upon default for all loans that were current as of November 4, 2013 when the Company was formed or acquired thereafter. We calculated the cumulative default and loss severity on the acquired loans with delinquency statuses of 90+ days and applied those factors to the current acquired loan population. For the originated loans, our historical data shows a minimal number of defaults, therefore we used an analysis performed on the latest ReadyCap securitization to determine the likelihood of default and to determine loss severity we stressed collateral value to the current principal balance based on the total valuation decline of SBC properties from the peak valuation in 2007 through their post-crisis low in 2010. The determination of allowances for SBA loans is based upon the assignment of a probability of default on a rating scale. Each loan rating is re-evaluated at least annually for loan performance, underlying borrower financial performance or data from third party credit bureaus. The probability of default is compared to the underlying collateral value securing each loan and compared to each loan carrying value to calculate a loss estimate. Collectively the estimated probability of default and recovery value is compared to actual portfolio default and recovery rates as well as economic factors and adjusted when needed. The determination of whether an allowance for loan loss is necessary is based on whether or not there is a decrease in cash flows based on consideration of factual information available at the time of assessment as well as management’s estimates of the future performance and projected amount and timing of cash flows expected to be collected on 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 Non-accrual loans are the loans for which we are not accruing or accreting interest income. Non-accrual loans include non-PCI loans when principal or interest has been delinquent for 90 days or more or when it is determined that full collection of contractual cash flows is not probable. Additionally, PCI loans for which the Company is unable to reasonably estimate the timing and amount of expected cash flows are considered to be non-accrual loans.
Troubled Debt Restructurings	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. Loans classified as TDRs, are considered impaired loans. 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.
Impaired loans	Impaired loans The Company considers a loan to be impaired when the Company does not expect to collect all of the contractual interest and principal payments as scheduled in the loan agreements. This includes certain non-PCI loans where we do not expect to collect all of the contractual interest and principal payments, as well as PCI loans, which experienced credit deterioration prior to acquisition.
Loans, held for sale, at fair value	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 on 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 recurring and are reported as net unrealized gain (loss) on 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 on the unaudited interim consolidated statements of income.
Mortgage backed securities, at fair value	Mortgage backed securities, at fair value The Company accounts for MBS as trading securities and are carried 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 on 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	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	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 on 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. Although permitted under certain circumstances, generally the Company does not offset cash collateral receivable or payables against our gross derivative positions. As of June 30, 2019 and December 31, 2018, the cash collateral receivable for derivatives is $14.6 million and $11.6. million, respectively, and is included in restricted cash on 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. Interest Rate Lock Commitments (“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 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 on the unaudited interim consolidated statements of income as residential mortgage banking activities. IRLCs are classified as Level 3 in the fair value hierarchy. CDS CDS 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 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 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) on 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 on 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 leverage all available relevant market data to determine the fair value of our recognized servicing assets. Since quoted market prices for servicing rights are not readily available, 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 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 acquired in settlement of loans, held for sale	Real estate acquired in settlement of loans, held for sale Real estate acquired in settlement of loans, held for sale, includes 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.
Intangible assets	Intangible assets Intangible assets are accounted for under ASC 350, Intangibles-Goodwill and Other . As of June 30, 2019 and December 31, 2018, the Company’s identifiable intangible assets include SBA license for our lending operations as well as a trade name, a favorable lease, and other licenses relating to our residential mortgage banking segment, obtained as part of the ZAIS Financial merger transaction. The Company determined that its SBA license has an indefinite life, while the other intangibles acquired as part of the ZAIS Financial merger transaction are finite-lived. The Company amortizes intangible assets with identified estimated useful lives on a straight-line basis over their estimated useful lives. The Company initially records its intangible assets at cost and subsequently tests for impairment on an annual basis. Intangible assets are included within other assets on the unaudited interim consolidated balance sheets.
Investment in unconsolidated joint venture	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 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. Pursuant to the consolidation guidance, we determined our interest in the entity is a VIE, however, we do not consolidate the entity as we determined that we are not the primary beneficiary. The Company is determined to be the primary beneficiary only when it has a controlling financial interest in the VIE, which is defined as possessing both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.
Deferred financing costs	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. Our 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 on the unaudited interim consolidated balance sheets as a direct deduction from the associated liability.
Due from Servicers	Due from Servicers The loan servicing activities of the Company’s SBC Loan 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 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 and pursue collection of any outstanding debt amount from us. Interest paid and accrued in connection with credit facilities is recorded as interest expense on the unaudited interim consolidated statements of income. Borrowing 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 June 30, 2019, 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 on the unaudited interim consolidated statements of income.
Securitized debt obligations of consolidated VIEs, net	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, to convert all or a portion of those assets into cash before they would have been realized in the normal course of business, through the SPE’s issuance of 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 on 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 on the consolidated financial statements.
Convertible note, net	Convertible note, net ASC 470, Debt , 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	Senior secured notes, net The Company accounts for secured debt offerings under ASC 470, Debt. 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 on the unaudited interim consolidated statements of income.
Corporate debt, net	Corporate debt, net The Company accounts for corporate debt offerings under ASC 470, Debt . 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 on the unaudited consolidated statements of income.
Guaranteed loan financing	Guaranteed loan financing Certain partial loan sales do not qualify for sale accounting under ASC 860, Transfers and Servicing 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 on 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	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	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 Non-controlling interests, which are presented on 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	Fair Value Option The guidance in 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. We have elected the fair value option for certain loans held-for-sale originated by ReadyCap that the Company intends to sell in the near term. The fair value elections for loans, held for sale at fair value originated by ReadyCap 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.
Earnings per Share	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	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 June 30, 2019 and December 31, 2018, 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 Recognition On January 1, 2018, new accounting rules regarding revenue recognition became effective for public companies with a calendar fiscal year. Under the new accounting rules regarding revenue, 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. 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 non-PCI 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. For PCI loans, the excess of the cash flows expected to be collected on these loans, measured as of the acquisition date, over the initial investment is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan using the interest method of accretion. 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 ReadyCap loans, held at fair value and loans, held for sale, at fair value, are presented in the unaudited interim consolidated statements of income in 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 in interest income.
Residential Mortgage Banking Activities	Residential Mortgage Banking Activities Residential mortgage banking activities, reflects 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 includes 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. Variable Expenses on Residential Mortgage Banking Activities Loan expenses include indirect costs related to loan origination activities, such as correspondent fees, and are expensed as incurred and are included within variable expenses on residential mortgage banking activities on the Company’s unaudited interim consolidated statements of income. The provision for loan indemnification includes the fair value of the incurred liability for mortgage repurchases and indemnifications recognized at the time of loan sale and any other provisions recorded against the loan indemnification reserve. Loan origination costs directly attributable to the processing, underwriting, and closing of a loan are included in the gain on sale of mortgage loans held for sale when loans are sold.

Recently Issued Accounting Pr_2

Recently Issued Accounting Pronouncements (Tables)	6 Months Ended
	Jun. 30, 2019
Recently Issued Accounting Pronouncements
Schedule of FASB Standards	Financial Accounting Standards Board ("FASB") Standards adopted during 2019 Standard Summary of guidance Effects on financial statements ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities  Provides guidance on simplifying the accounting and presentation for hedging activities.  The adoption did not affect the financial statement impact of hedge accounting, as the change would simplify hedge documentation requirements and presentation associated with hedging activities. Issued August 2017 ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract  Provides guidance on evaluating the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license.  The adoption of this standard did not have a material impact on our consolidated financial statements.  An intangible asset is recognized for the software license and, to the extent that the payments attributable to the software license are made over time, a liability also is recognized. If a cloud computing arrangement does not include a software license, the entity should account for the arrangement as a service contract. This generally means that the fees associated with the hosting element (service) of the arrangement are expensed as incurred. ASU 2018-11, Leases (Topic 842): Targeted Improvements to Accounting for Leases  Provides guidance on increasing the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions.  The modified retrospective adoption of this standard resulted in the Company recording a gross up of approximately $3.3 million on our unaudited interim consolidated balance sheet upon recognition of the right-of-use assets and lease liabilities. The right-of use-assets are recorded in Other assets and the corresponding lease liabilities are recorded in Accounts payable and other accrued liabilities within the unaudited consolidated balance sheets. Issued July 2018 FASB Standards issued, but not yet adopted Standard Summary of guidance Effects on financial statements ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments  Requires the use of an “expected loss” credit model for estimating future credit losses of certain financial instruments instead of the “incurred loss” credit model that existing GAAP currently requires.  Required effective date: Annual reporting periods, and interim periods therein, beginning after December 15, 2019. Early adoption is permitted for periods beginning after December 15, 2018. Issued June 2016  The “expected loss” model requires the consideration of possible credit losses over the life of an instrument compared to only estimating credit losses upon the occurrence of a discrete loss event in accordance with the current “incurred loss” methodology.  The Company is evaluating the impact ASU 2016-13 will have on our consolidated financial statements. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement  Provides guidance on increasing the transparency and comparability of the disclosure requirements for fair value measurement.  Required effective date: The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Issued August 2018  The Company is evaluating the impact ASU 2018-13 will have on our consolidated financial statements.

Acquisition of Owens Realty M_2

Acquisition of Owens Realty Mortgage Inc (Tables)	6 Months Ended
	Jun. 30, 2019
Acquisition of Owens Realty Mortgage, Inc
Schedule of fair value of assets acquired and liabilities acquired	(In Thousands) March 29, 2019 Assets Cash and cash equivalents $ 10,822 Loans, net 130,449 Real estate acquired in settlement of loans, 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 Other liabilities 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
Schedule of aggregate consideration transferred, net assets acquired, and related bargain purchase gain	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
Schedule of pro-forma revenue and earnings	For the three months ended For the six months ended (In Thousands) June 30, 2018 June 30, 2018 Selected Financial Data Interest income $ 44,945 $ 84,985 Interest expense (26,994) (50,196) Provision for loan losses 282 195 Non-interest income 42,504 86,508 Non-interest expense (41,863) (80,884) Income before provision for income taxes 18,874 40,608 Provision for income (taxes) benefit (647) (3,393) Net income $ 18,227 $ 37,215

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	6 Months Ended
	Jun. 30, 2019
Schedule of classification, unpaid principal balance, and carrying value of loans held including loans of consolidated VIEs	June 30, 2019 December 31, 2018 Loans (In Thousands) Carrying Value UPB Carrying Value UPB Loans Acquired SBA 7(a) loans $ 116,151 $ 149,922 $ 264,308 $ 283,423 Acquired loans 192,007 198,793 206,983 215,213 Acquired Transitional loans 96,391 97,770 — — Originated Transitional loans 193,219 195,043 272,981 275,237 Originated SBC loans, at fair value 20,409 20,078 22,664 22,325 Originated SBC loans 285,950 284,147 345,100 342,751 Originated SBA 7(a) loans 101,977 107,204 85,569 89,733 Originated Residential Agency loans 3,422 3,422 1,899 1,900 Total Loans, before allowance for loan losses $ 1,009,526 $ 1,056,379 $ 1,199,504 $ 1,230,582 Allowance for loan losses $ (6,850) — $ (6,112) — Total Loans, net $ 1,002,676 $ 1,056,379 $ 1,193,392 $ 1,230,582 Loans in consolidated VIEs Loans Originated SBC loans $ 689,233 $ 680,026 $ 432,308 $ 422,897 Acquired loans 765,771 772,841 343,156 354,794 Acquired SBA 7(a) loans — — 55,966 74,554 Originated Transitional loans 604,267 607,667 391,752 393,116 Total Loans, in consolidated VIEs, before allowance for loan losses $ 2,059,271 $ 2,060,534 $ 1,223,182 $ 1,245,361 Allowance for loan losses on loans in consolidated VIEs $ (1,964) — $ (2,208) — Total Loans, net, in consolidated VIEs $ 2,057,307 $ 2,060,534 $ 1,220,974 $ 1,245,361 Total Loans, net, and Loans, net in consolidated VIEs $ 3,059,983 $ 3,116,913 $ 2,414,366 $ 2,475,943 Loans, held for sale, at fair value Originated Residential Agency loans $ 125,550 $ 120,923 $ 67,775 $ 65,586 Originated Freddie Mac loans 35,684 35,037 23,322 22,973 Originated SBA 7(a) loans 12,008 11,132 21,153 19,669 Acquired loans 2,790 2,665 3,008 2,935 Acquired SBA 7(a) loans 1,475 1,367 — — Total Loans, held for sale, at fair value $ 177,507 $ 171,124 $ 115,258 $ 111,163 Total Loan portfolio $ 3,237,490 $ 3,288,037 $ 2,529,624 $ 2,587,106
Schedule of delinquency information on loans, net	June 30, 2019 Loans (In Thousands) Current and 30-89 Days 90+ Days Total Loans Carrying Value Non-Accrual 90+ Days Past Due but Accruing Loans (1)(2) Acquired SBA 7(a) loans $ 106,326 $ 1,131 $ 6,903 $ 114,360 $ 11,542 $ 2,063 Acquired loans 936,985 5,990 10,516 953,491 10,208 2,940 Acquired Transitional loans 89,332 3,141 3,918 96,391 8,326 — Originated Transitional loans 778,730 18,756 — 797,486 13,114 — Originated SBC loans, at fair value 20,409 — — 20,409 — — Originated SBC loans 944,900 11,537 18,352 974,789 21,770 — Originated SBA 7(a) loans 101,246 377 205 101,828 2,177 157 Originated Residential Agency loans 1,192 — 2,230 3,422 2,230 — Total Loans, before general allowance for loans losses $ 2,979,120 $ 40,932 $ 42,124 $ 3,062,176 $ 69,367 $ 5,160 General allowance for loan losses $ (2,193) Total Loans, net $ 3,059,983 Percentage of outstanding (1) Loan balances include specific allowance for loan losses. (2) Includes Loans, net in consolidated VIEs December 31, 2018 Loans (In Thousands) Current and 30-89 Days 90+ Days Total Loans Carrying Value Non-Accrual 90+ Days Past Due but Accruing Loans (1)(2) Acquired SBA 7(a) loans $ 299,080 $ 14,943 $ 4,465 $ 318,488 $ 17,916 $ 1,043 Acquired loans 524,930 7,213 13,552 545,695 11,447 3,811 Originated Transitional loans 659,103 5,630 — 664,733 — — Originated SBC loans, at fair value 22,664 — — 22,664 — — Originated SBC loans 748,146 12,367 16,895 777,408 16,895 — Originated SBA 7(a) loans 83,076 2,178 162 85,416 1,666 — Originated Residential Agency loans 337 — 1,562 1,899 1,562 — Total Loans, before allowance for loans losses $ 2,337,336 $ 42,331 $ 36,636 $ 2,416,303 $ 49,486 $ 4,854 General allowance for loan losses $ (1,937) Total Loans, net $ 2,414,366 Percentage of outstanding (1) Loan balances include specific allowance for loan losses. (2) Includes Loans, net in consolidated VIEs
Schedule of information on credit quality of loans	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 June 30, 2019 Loans (1) (2) Acquired SBA 7(a) loans $ 3,548 $ 18,179 $ 28,099 $ 26,379 $ 17,765 $ 20,390 $ 114,360 Acquired loans 206,954 296,396 215,613 109,508 98,739 26,281 953,491 Acquired Transitional loans 3,585 12,373 36,930 36,726 6,777 — 96,391 Originated Transitional loans — 29,450 153,126 557,343 57,434 133 797,486 Originated SBC loans, at fair value — 8,566 — 6,410 5,433 — 20,409 Originated SBC loans — 49,038 409,055 492,545 18,118 6,033 974,789 Originated SBA 7(a) loans 147 4,924 13,437 34,789 14,798 33,733 101,828 Originated Residential Agency loans — — 111 1,410 1,484 417 3,422 Total Loans, before general allowance for loans losses $ 214,234 $ 418,926 $ 856,371 $ 1,265,110 $ 220,548 $ 86,987 $ 3,062,176 General allowance for loan losses $ (2,193) Total Loans, net $ 3,059,983 Percentage of outstanding 7.0 % 13.7 % 28.0 % 41.3 % 7.2 % 2.8 % December 31, 2018 Loans (1) (2) Acquired SBA 7(a) loans $ 6,337 $ 38,150 $ 100,578 $ 93,411 $ 33,750 $ 46,262 $ 318,488 Acquired loans 118,198 165,567 136,206 70,017 40,003 15,704 545,695 Originated Transitional loans — 29,245 178,861 348,967 101,513 6,147 664,733 Originated SBC loans, at fair value — 8,600 — 6,328 7,736 — 22,664 Originated SBC loans — 48,259 271,311 457,838 — — 777,408 Originated SBA 7(a) loans 393 3,200 10,642 24,387 16,473 30,321 85,416 Originated Residential Agency loans — — 111 952 734 102 1,899 Total Loans, before allowance for loans losses $ 124,928 $ 293,021 $ 697,709 $ 1,001,900 $ 200,209 $ 98,536 $ 2,416,303 General allowance for loan losses $ (1,937) Total Loans, net $ 2,414,366 Percentage of outstanding 5.2 % 12.1 % 28.9 % 41.5 % 8.3 % 4.0 % (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
Schedule of impaired loans, held for investment	June 30, 2019 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for General $ 25 $ 367 $ 784 $ 406 $ 545 $ 66 $ 2,193 Specific 396 - 1,162 938 149 - 2,645 PCI - - 3,126 850 - - 3,976 Ending balance $ 421 $ 367 $ 5,072 $ 2,194 $ 694 $ 66 $ 8,814 December 31, 2018 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for General $ 11 $ 353 $ 608 $ 532 $ 433 $ - $ 1,937 Specific - - 1,012 823 153 - 1,988 PCI - - 3,432 963 - - 4,395 Ending balance $ 11 $ 353 $ 5,052 $ 2,318 $ 586 $ - $ 8,320
Schedule of activity of the allowance for loan losses for loans, held-for investment	Three Months Ended June 30, 2019 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for Beginning balance $ - $ 222 $ 5,041 $ 2,274 $ 740 $ - $ 8,277 Provision for (Recoveries of) loan losses 421 145 161 601 (46) 66 1,348 Charge-offs and sales - - - (630) - - (630) Recoveries - - (130) (51) - - (181) Ending balance $ 421 $ 367 $ 5,072 $ 2,194 $ 694 $ 66 $ 8,814 Three Months Ended June 30, 2018 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for Beginning balance $ 227 $ 338 $ 6,544 $ 2,990 $ 434 $ - $ 10,533 Provision for (Recoveries of) loan losses (129) (115) 90 (353) 110 - (397) Charge-offs and sales (60) (73) - (133) Recoveries - (407) 70 - (337) Ending balance $ 98 $ 223 $ 6,167 $ 2,634 $ 544 $ - $ 9,666 Six Months Ended June 30, 2019 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for Beginning balance $ 11 $ 353 $ 5,052 $ 2,318 $ 586 $ 8,320 Provision for (Recoveries of) loan losses 410 14 495 773 108 66 1,866 Charge-offs and sales - - - (962) - (962) Recoveries - - (475) 65 - (410) Ending balance $ 421 $ 367 $ 5,072 $ 2,194 $ 694 $ 66 $ 8,814 Six Months Ended June 30, 2018 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for Beginning balance $ 637 $ - $ 7,264 $ 3,527 $ 318 $ - $ 11,746 Provision for loan losses (370) 223 230 (538) 226 - (229) Charge-offs and sales (169) - (284) (522) - - (975) Recoveries - - (1,043) 167 - - (876) Ending balance $ 98 $ 223 $ 6,167 $ 2,634 $ 544 $ - $ 9,666
Schedule of recorded investment of TDRs	June 30, 2019 December 31, 2018 (In Thousands) SBC SBA Total SBC SBA Total Recorded carrying value modified loans classified as TDRs $ 5,113 $ 9,434 $ 14,547 $ 1,825 $ 17,344 $ 19,169 Allowance for loan losses on loans classified as TDRs $ 256 $ 273 $ 529 $ 321 $ 278 $ 599 Carrying value of modified loans classified as TDRs Carrying value of modified loans classified as TDRs on accrual status $ 1,669 $ 2,691 $ 4,360 $ 1,696 $ 7,375 $ 9,071 Carrying value of modified loans classified as TDRs on non-accrual status 3,444 6,743 10,187 129 9,969 10,098 Total carrying value of modified loans classified as TDRs $ 5,113 $ 9,434 $ 14,547 $ 1,825 $ 17,344 $ 19,169
Schedule of TDR modifications by primary modification type and related financial effects	Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (In Thousands, except number of loans) SBC SBA Total SBC SBA Total Number of loans permanently modified - 5 5 - 11 11 Pre-modification recorded balance (a) $ - $ 193 $ 193 $ - $ 918 $ 918 Post-modification recorded balance (a) - 180 180 - 917 917 Number of loans that remain in default as of June 30, 2019 (b) - - - - - - Balance of loans that remain in default as of June 30, 2019 (b) $ - $ - $ - $ - $ - $ - Concession granted (a) : Term extension $ - $ 184 $ 184 $ - $ 865 $ 865 Interest rate reduction - - - - - - Principal reduction - - - - - - Foreclosure - - - - 23 23 Total $ - $ 184 $ 184 $ - $ 888 $ 888 (a) Represents carrying value. (b) Represents the June 30, 2019 carrying values of the TDRs that occurred during the three months ended June 30, 2019 and 2018 that remained in default as of June 30, 2019. 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. Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (In Thousands, except number of loans) SBC SBA Total SBC SBA Total Number of loans permanently modified 1 14 15 - 22 22 Pre-modification recorded balance (a) $ 103 $ 1,872 $ 1,975 $ - $ 2,038 $ 2,038 Post-modification recorded balance (a) 103 1,829 1,932 - 2,140 2,140 Number of loans that remain in default as of June 30, 2019 (b) 1 5 6 - 1 1 Balance of loans that remain in default as of June 30, 2019 (b) $ 105 $ 299 $ 404 $ - $ - $ - Concession granted (a) : Term extension $ - $ 1,411 $ 1,411 $ - $ 2,000 $ 2,000 Interest rate reduction - - - - - - Principal reduction - - - - - - Foreclosure 105 217 322 - 87 87 Total $ 105 $ 1,628 $ 1,733 $ - $ 2,087 $ 2,087 (a) Represents carrying value. (b) Represents the June 30, 2019 carrying values of the TDRs that occurred during the year ended June 30, 2019 and 2018 that remained in default as of June 30, 2019. 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.
Schedule of outstanding amounts and details of carrying amount of acquired loans, held for investment	June 30, 2019 December 31, 2018 Non-PCI PCI Non-PCI PCI (In Thousands) Loans Loans Loans Loans Unpaid principal balance $ 3,014,416 $ 82,419 $ 2,361,155 $ 92,463 Non-accretable discount — (6,908) — (6,040) Accretable discount (29,363) (12,176) (31,533) (16,023) Loans, held-for-investment 2,985,053 63,335 2,329,622 70,400 Allowance for loan losses (4,839) (3,975) (3,925) (4,395) Loans, held-for-investment $ 2,980,214 $ 59,360 $ 2,325,697 $ 66,005
Non - PCI Loans
Schedule of impaired loans, held for investment	(In Thousands) June 30, 2019 December 31, 2018 Impaired loans With an allowance $ 21,251 $ 9,734 Without an allowance 40,383 33,082 Total recorded carrying value of impaired loans $ 61,634 $ 42,816 Allowance for loan losses related to impaired loans $ (2,738) $ (1,989) Unpaid principal balance of impaired loans $ 68,796 $ 49,128 Impaired loans on non-accrual status $ 61,634 $ 42,816 Average carrying value of impaired loans $ 65,455 $ 36,675 June 30, 2019 June 30, 2018 Interest income on impaired loans for the three months ended $ 328 $ 20 Interest income on impaired loans for the six months ended $ 934 $ 22
PCI Loans
Schedule of activity of accretable yield of loans, held for investment	Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Beginning accretable discount- PCI loans $ $ $ 16,023 $ 23,749 Purchases/Originations — 514 Sales (1,275) (1,494) Accretion (1,986) (2,975) Other 177 344 Transfers (763) (653) Ending accretable discount- PCI loans $ 12,176 $ $ 12,176 $ 19,485
Geographical concentration
Schedule of concentration risk of loans secured by real estate	Geographic Concentration (Unpaid Principal Balance) June 30, 2019 December 31, 2018 California 18.9 % 14.1 % Texas 13.1 11.3 Florida 8.8 10.8 New York 8.6 6.3 Illinois 4.8 3.8 Georgia 4.7 5.3 Arizona 3.9 5.0 North Carolina 3.1 3.7 Pennsylvania 2.5 3.8 Washington 2.5 2.8 Other 29.1 33.1 Total 100.0 % 100.0 %
Collateral concentration
Schedule of concentration risk of loans secured by real estate	The following table displays the collateral type concentration of the Company’s loans, net, on our unaudited interim consolidated balance sheets. Collateral Concentration (Unpaid Principal Balance) June 30, 2019 December 31, 2018 Multi-family 29.0 % 23.3 % Retail 20.6 18.5 Office 14.1 15.1 Mixed Use 12.4 9.6 SBA (1) 8.3 18.1 Industrial 7.3 8.2 Lodging/Residential 2.9 2.4 Other 5.4 4.8 Total 100.0 % 100.0 % (1) Further detail provided on SBA collateral concentration is included in table below. The following table displays the collateral type concentration of the Company’s SBA loans within loans, net, on our unaudited interim consolidated balance sheets. Collateral Concentration (Unpaid Principal Balance) June 30, 2019 December 31, 2018 Offices of Physicians 13.6 % 17.7 % Child Day Care Services 9.6 9.9 Hotels, Motels & Tourist Courts 7.9 3.8 Eating Places 7.2 5.4 Lodging 6.1 10.1 Veterinarians 5.0 6.8 Gasoline Service Stations 3.8 2.3 Funeral Service & Crematories 3.1 2.3 Grocery Stores 2.5 3.8 Auto 2.0 2.7 Other 39.2 35.2 Total 100.0 % 100.0 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2019
Fair value measurements
Schedule of financial instruments carried at fair value on a recurring basis	The following table presents the Company’s financial instruments carried at fair value on a recurring basis as of June 30, 2019: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Loans, held for sale, at fair value $ — $ 177,507 $ — $ 177,507 Loans, net, at fair value — — 20,409 20,409 Mortgage backed securities, at fair value — 62,752 36,655 99,407 Derivative instruments, at fair value — — 3,670 3,670 Residential mortgage servicing rights, at fair value — — 85,658 85,658 Total assets $ — $ 240,259 $ 146,392 $ 386,651 Liabilities: Derivative instruments, at fair value $ — $ 9,032 $ — $ 9,032 Total liabilities $ — $ 9,032 $ — $ 9,032 The following table presents the Company’s financial instruments carried at fair value on a recurring basis as of December 31, 2018: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Cash held in money market funds $ 586 $ — $ — $ 586 Loans, held for sale, at fair value — 115,258 — 115,258 Loans, net, at fair value — — 22,664 22,664 Mortgage backed securities, at fair value — 79,789 12,148 91,937 Derivative instruments, at fair value — 294 1,776 2,070 Residential mortgage servicing rights, at fair value — — 93,065 93,065 Total assets $ 586 $ 195,341 $ 129,653 $ 325,580 Liabilities: Derivative instruments, at fair value $ — $ 3,625 $ — $ 3,625 Contingent consideration — — 1,207 1,207 Total liabilities $ — $ 3,625 $ 1,207 $ 4,832
Summary of the valuation techniques and significant unobservable inputs used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy	The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy as of June 30, 2019 using third party information without adjustment: Predominant Weighted Valuation Average Price (In Thousands, except price) Fair Value Technique Type Price Range (a) Loans, held at fair value $ 20,409 Single External Source Third Party Mark $ 99.69 – 109.24 $ 101.65 Mortgage backed securities, at fair value 36,540 Broker Quotes Third Party Mark 21.78 – 97.50 76.89 Mortgage backed securities, at fair value 115 Transaction Price Transaction Price 99.00 – 99.00 99.00 Residential mortgage servicing rights, at fair value 85,658 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 The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s financial instruments that are categorized within Level 3 of the fair value hierarchy as of December 31, 2018 using third-party information without adjustment: Predominant Weighted Valuation Average Price (In Thousands, except price) Fair Value Technique Type Price Range (a) Loans, held at fair value $ 22,664 Single External Source Third Party Mark $ 99.41 – 105.21 $ 101.52 Mortgage backed securities, at fair value (b) 12,033 Broker Quotes Third Party Mark 44.65 – 97.50 70.92 Mortgage backed securities, at fair value 115 Transaction Price Transaction Price 99.00 – 99.00 99.00 Residential mortgage servicing rights, at fair value 93,065 Single external source Discounted cash flow N/A N/A Contingent consideration 1,207 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
Summary of the carrying value and estimated fair value of financial instruments not carried at fair value on the consolidated balance sheets and are classified as Level 3	June 30, 2019 December 31, 2018 (In Thousands) Carrying Value Fair Value Carrying Value Fair Value Assets: Loans, net $ 3,039,574 $ 3,141,194 $ 2,391,702 $ 2,434,185 Servicing rights 29,103 33,797 26,997 28,441 Total assets $ 3,068,677 $ 3,174,991 $ 2,418,699 $ 2,462,626 Liabilities: Secured borrowings $ 988,868 $ 988,868 $ 834,547 $ 834,547 Securitized debt obligations of consolidated VIEs, net 1,567,113 1,606,181 905,367 918,536 Senior secured note, net 179,086 189,683 178,870 176,981 Guaranteed loan financing 28,445 30,761 229,678 236,804 Convertible notes, net 110,506 112,972 109,979 101,581 Corporate debt, net 48,795 50,619 48,457 48,457 Total liabilities $ 2,922,813 $ 2,979,084 $ 2,306,898 $ 2,316,906
Loans, held at fair value
Fair value measurements
Summary of changes in the fair value of financial instruments held at fair value classified as Level 3	Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Beginning Balance $ 22,595 $ 40,430 $ 22,664 $ 188,150 Realized gains (losses), net (165) (52) (166) (55) Unrealized gains (losses), net 144 (651) 105 (1,413) Originations — — — 150 Sales (2,141) — (2,141) — Principal payments (24) (2,038) (53) (6,704) Transfer to loans, held-for-investment — (3,335) — (145,774) Ending Balance $ 20,409 $ 34,354 $ 20,409 $ 34,354
MBS
Fair value measurements
Summary of changes in the fair value of financial instruments held at fair value classified as Level 3	Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Beginning Balance $ 27,200 $ 22,736 $ 12,148 $ 8,063 Accreted discount, net 44 63 46 84 Realized gains, net 127 148 107 271 Unrealized gains (losses), net 200 2,636 289 2,866 Purchases 9,593 — 9,593 — Sales / Principal payments (567) (449) (669) (966) Transfer to (from) Level 3 58 (25,008) 15,141 (10,192) Ending Balance $ 36,655 $ 126 $ 36,655 $ 126
Derivatives
Fair value measurements
Summary of changes in the fair value of financial instruments held at fair value classified as Level 3	Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Beginning Balance $ 2,483 $ 3,470 $ 1,776 $ 1,827 Unrealized gains (losses) 1,187 (638) 1,894 1,005 Ending Balance $ 3,670 $ 2,832 $ 3,670 $ 2,832
Contingent Consideration
Fair value measurements
Summary of changes in the fair value of financial instruments held at fair value classified as Level 3	Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Beginning Balance $ — $ 10,732 $ 1,207 $ 10,016 Earn-out payments — (8,967) (1,207) (8,333) Amortization and adjustment for earn-out payments — (79) — 3 Ending Balance $ — $ 1,686 $ — $ 1,686

Mortgage Backed Securities (Tab

Mortgage Backed Securities (Tables)	6 Months Ended
	Jun. 30, 2019
Mortgage Backed Securities
Schedule of information about the Company's MBS portfolio	The following table presents certain information about the Company’s MBS portfolio, which are classified as trading securities and carried at fair value, as of June 30, 2019 and December 31, 2018. Weighted Weighted Average Gross Gross Average Interest Principal Amortized Unrealized Unrealized (In Thousands) Maturity (a) Rate (a) Balance Cost Fair Value Gains Losses June 30, 2019 Mortgage backed securities, at fair value Freddie Mac Loans 06/2037 4.7 % $ 91,784 $ 67,203 $ 73,045 $ 5,842 $ — Commercial Loans 01/2051 5.3 36,253 25,603 26,247 698 (54) Tax Liens 09/2026 6.0 116 116 115 — (1) Total Mortgage backed securities, at fair value 04/2041 4.8 % $ 128,153 $ 92,922 $ 99,407 $ 6,540 $ (55) December 31, 2018 Mortgage backed securities, at fair value Freddie Mac Loans 05/2037 4.5 % $ 97,066 $ 70,819 $ 75,591 $ 4,826 $ (54) Commercial Loans 11/2049 5.5 20,666 16,228 16,231 30 (27) Tax Liens 09/2026 6.0 116 116 115 — (1) Total Mortgage backed securities, at fair value 07/2039 4.7 % $ 117,848 $ 87,163 $ 91,937 $ 4,856 $ (82) (a) Weighted based on current principal balance
Schedule of information about the maturity of the Company's MBS portfolio	The following table presents certain information about the maturity of the Company’s MBS portfolio as of June 30, 2019 and December 31, 2018 . Weighted Average Interest Principal Amortized (In Thousands) Rate (a) Balance Cost Fair Value June 30, 2019 Mortgage backed securities, at fair value After five years through ten years 11.0 % $ 2,881 $ 2,638 $ 2,937 After ten years 4.7 125,272 90,284 96,470 Total Mortgage backed securities, at fair value 4.8 % $ 128,153 $ 92,922 $ 99,407 December 31, 2018 Mortgage backed securities, at fair value After five years through ten years 10.6 % $ 3,406 $ 3,103 $ 3,520 After ten years 4.5 114,442 84,060 88,417 Total 4.7 % $ 117,848 $ 87,163 $ 91,937 (a) Weighted based on current principal balance.

Servicing rights (Tables)

Servicing rights (Tables)	6 Months Ended
	Jun. 30, 2019
Schedule of beginning and ending balances of servicing rights	Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 SBA servicing rights, at amortized cost Beginning net carrying amount $ 16,448 $ 16,318 $ 16,749 $ 16,684 Additions due to loans sold, servicing retained 1,842 1,113 2,775 1,805 Acquisitions — 362 — 362 Amortization (838) (853) (1,660) (1,739) Impairment 548 6 136 (166) Ending net carrying value of SBA servicing rights $ 18,000 $ 16,946 $ 18,000 $ 16,946 Freddie Mac multi-family servicing rights, at amortized cost Beginning net carrying amount $ 10,986 $ 6,704 $ 10,248 $ 5,059 Additions due to loans sold, servicing retained 680 2,452 1,947 4,390 Amortization (563) (382) (1,092) (675) Ending net carrying value of Freddie Mac multi-family servicing rights $ 11,103 $ 8,774 $ 11,103 $ 8,774 Ending net carrying value of SBA and Freddie Mac multi-family servicing rights, at amortized cost $ 29,103 $ 25,720 $ 29,103 $ 25,720 Residential mortgage servicing rights, at fair value Beginning Balance $ 88,218 $ 81,591 $ 93,065 $ 72,295 Additions due to loans sold, servicing retained 5,861 5,449 9,454 11,155 Loan pay-offs (2,082) (1,784) (3,394) (3,082) Unrealized gains (losses) (6,339) 298 (13,467) 5,186 Ending fair value of residential mortgage servicing rights $ 85,658 $ 85,554 $ 85,658 $ 85,554 Total servicing rights $ 114,761 $ 111,274 $ 114,761 $ 111,274
Schedule of future amortization expense for the servicing rights	(In Thousands) June 30, 2019 2019 $ 2,831 2020 5,135 2021 4,495 2022 3,932 2023 3,414 Thereafter 9,296 Total $ 29,103
Residential
Schedule of servicing rights	As of June 30, 2019 As of December 31, 2018 Unpaid Principal Unpaid Principal (In Thousands) Amount Fair Value Amount Fair Value Fannie Mae $ 3,065,213 $ 32,530 $ 2,848,435 $ 34,562 Ginnie Mae 2,308,720 25,081 2,350,301 29,586 Freddie Mac 2,402,396 28,047 2,267,943 28,917 Total $ 7,776,329 $ 85,658 $ 7,466,679 $ 93,065
Schedule of Mortgage Servicing Rights Portfolio	June 30, 2019 December 31, 2018 Range of input Weighted Range of input Weighted Residential mortgage servicing rights (at fair value) • Forward prepayment rate - % % - % % • Discount rate - % % - % % • Servicing expense $ - $ $ $ - $ $
Schedule of adverse changes to key assumptions on the carrying amount of the servicing rights	(In Thousands) June 30, 2019 December 31, 2018 Prepayment rate 10% adverse change $ (3,671) $ (3,281) 20% adverse change (7,058) (6,330) Discount rate 10% adverse change $ (3,257) $ (3,716) 20% adverse change (6,280) (7,159) Cost of servicing 10% adverse change $ (1,606) $ (1,683) 20% adverse change (3,212) (3,365)
SBA | Freddie Mac
Schedule of servicing rights	As of June 30, 2019 As of December 31, 2018 Unpaid Principal Unpaid Principal (In Thousands) Amount Carrying Value Amount Carrying Value SBA $ 565,563 $ 18,000 $ 506,155 $ 16,749 Freddie Mac multi-family 1,051,751 11,103 964,377 10,248 Total $ 1,617,314 $ 29,103 $ 1,470,532 $ 26,997
Schedule of adverse changes to key assumptions on the carrying amount of the servicing rights	(In Thousands) June 30, 2019 December 31, 2018 SBA servicing rights (at amortized cost) • Forward prepayment rate 10% adverse change $ (529) $ (470) 20% adverse change (1,031) (915) • Default rate 10% adverse change $ (94) $ (63) 20% adverse change (186) (125) • Discount rate 10% adverse change $ (597) $ (579) 20% adverse change (1,157) (1,118) Freddie Mac multi-family servicing rights (at amortized cost) • Forward prepayment rate 10% adverse change $ (109) $ (63) 20% adverse change (216) (124) • Default rate 10% adverse change $ (17) $ (11) 20% adverse change (33) (22) • Discount rate 10% adverse change $ (312) $ (490) 20% adverse change (613) (791)
SBA | Freddie Mac | Commercial
Schedule of adverse changes to key assumptions on the carrying amount of the servicing rights	June 30, 2019 December 31, 2018 Range of input Weighted Range of input Weighted SBA servicing rights (at amortized cost) • Forward prepayment rate - % % - % % • Forward default rate - % % - % % • Discount rate - % % - % % • Servicing expense - % % - % % Freddie Mac multi-family servicing rights (at amortized cost) • Forward prepayment rate - % % - % % • Forward default rate - % % - % % • Discount rate - % % - % % • Servicing expense - % % - % %

Residential mortgage banking _2

Residential mortgage banking activities and variable expenses on residential mortgage banking activities (Tables)	6 Months Ended
	Jun. 30, 2019
Residential mortgage banking activities and variable expenses on residential mortgage banking activities
Schedule of the components of gains on residential mortgage banking activities, net of variable loan expenses	Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Realized and unrealized gains and losses of residential mortgage loans held for sale, at fair value $ 13,886 $ 11,795 $ 24,085 $ 18,074 Creation of new mortgage servicing rights, net of payoffs 3,779 3,665 6,060 8,073 Loan origination fee income on residential mortgage loans 2,624 2,663 4,367 4,838 Unrealized gains (loss) on IRLCs and other derivatives 732 (868) 1,096 293 Residential mortgage banking activities $ 21,021 $ 17,255 $ 35,608 $ 31,279 Variable expenses on residential mortgage banking activities $ (13,501) $ (7,493) $ (22,677) $ (9,783)

Secured Borrowings (Tables)

Secured Borrowings (Tables)	6 Months Ended
	Jun. 30, 2019
Secured Borrowings
Schedule of characteristics of secured borrowings	Pledged Assets Carrying Value (In Thousands) Maturity Pricing Facility June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Borrowings under credit facilities JPMorgan - Commercial (1) May 2020 1M L + 2.00 to 2.50% $ 225,000 $ 157,334 $ 85,393 $ 127,983 $ 68,417 Keybank - Commercial (2) February 2020 1M L + 1.50% 125,000 35,684 23,322 35,037 22,973 East West - Commercial (3) July 2020 Prime - 0.821 to + 0.29% 50,000 54,017 37,255 41,113 27,443 Comerica - Residential (4) September 2019 1M L + 1.75% 125,000 79,024 35,860 74,580 40,231 Associated Bank - Residential (4) August 2019 1M L + 1.75% 40,000 19,265 13,653 18,165 15,907 Origin Bank - Residential (4) May 2020 Variable Pricing 50,000 28,084 16,831 26,512 12,870 East West - Residential (4) September 2023 1M L + 2.50% 50,000 60,577 63,479 38,300 8,500 Rabobank - Commercial (5) January 2021 4.22% 14,500 19,950 — 12,681 — FCB - Commercial (6) June 2021 2.75% 2,158 2,686 3,219 2,114 2,974 Total borrowings under credit facilities (10) $ 681,658 $ 456,621 $ 279,012 $ 376,485 $ 199,315 Borrowings under repurchase agreements Citibank - Commercial (8) August 2019 1M L + 1.875 to 2.125% $ 500,000 $ 256,871 $ 230,140 $ 217,072 $ 194,117 Deutsche Bank- Commercial (6) February 2020 3M L + 2.30 to 2.80% 300,000 188,840 310,797 144,900 239,972 JPMorgan - Commercial (7) December 2020 1M L + 2.25 to 4.00% 200,000 96,413 144,337 61,302 96,343 JPMorgan - MBS (9) September 2019 3.67 to 5.10% 42,907 66,806 39,882 42,907 24,881 Deutsche Bank - MBS (9) August 2019 4.17 to 4.59% 39,524 59,331 24,536 39,524 17,425 Bank of America - MBS (9) July 2019 3.03 to 3.38% 45,863 54,249 — 45,863 — RBC - MBS (9) October 2019 3.73 to 4.17% 60,815 81,167 83,818 60,815 62,494 Total borrowings under repurchase agreements (11) $ 1,189,109 $ 803,677 $ 833,510 $ 612,383 $ 635,232 Total secured borrowings $ 1,870,767 $ 1,260,298 $ 1,112,522 $ 988,868 $ 834,547 (1) Borrowings are used to finance SBC and SBA loan acquisitions, and SBA loan originations. (2) Borrowings are used to finance Freddie Mac SBC loan originations. (3) Borrowings are used to finance SBA loan acquisitions and loan originations. (4) Borrowings are used to finance Residential Agency loan originations. (5) Borrowings are used to finance Real estate acquired in settlement of loans. (6) Borrowings are used to finance SBC loan originations, Transitional loan originations, and SBC loan acquisitions. (7) Borrowings are used to finance SBC loan originations and Transitional loan originations. (8) Borrowings are used to finance SBC loan originations and SBC loan acquisitions. (9) Borrowings are used to finance Mortgage backed securities and Retained interests in consolidated VIE's. (10) The weighted average interest rate of borrowings under credit facilities was 4.2% and 4.6% as of June 30, 2019 and December 31, 2018, respectively. (11) The weighted average interest rate of borrowings under repurchase agreements was 5.0% and 4.0% as of June 30, 2019 and December 31, 2018, respectively.
Schedule of carrying value of collateral pledged with respect to borrowings under credit facilities and promissory note payable outstanding	Pledged Assets (In Thousands) June 30, 2019 December 31, 2018 Collateral pledged - borrowings under credit facilities Loans, net $ 376,094 $ 215,533 Mortgage servicing rights 60,577 63,479 Real estate acquired in settlement of loans 19,950 — Total collateral pledged on borrowings under credit facilities $ 456,621 $ 279,012 Collateral pledged - borrowings under repurchase agreements Loans, net $ 542,124 $ 685,274 Mortgage backed securities 85,871 112,552 Retained interest in assets of consolidated VIEs 175,682 35,684 Total collateral pledged on borrowings under repurchase agreements $ 803,677 $ 833,510 Total collateral pledged on secured borrowings $ 1,260,298 $ 1,112,522

Senior secured notes, Convert_2

Senior secured notes, Convertible notes, and Corporate debt, net (Tables)	6 Months Ended
	Jun. 30, 2019
Senior secured notes, Convertible notes, and Corporate debt, net
Schedule of components of the Senior Secured Notes, Convertible Notes, and Corporate debt	(in thousands, except rates) Coupon Rate Maturity Date June 30, 2019 Senior secured notes principal amount (1) 7.50 % 2/15/2022 $ 180,000 Unamortized premium - Senior secured notes 2,034 Unamortized deferred financing costs - Senior secured notes (2,948) Total Senior secured notes, net $ 179,086 Convertible notes - principal amount (2) 7.00 % 8/15/2023 115,000 Unamortized discount - Convertible notes (3) (1,629) Unamortized deferred financing costs - Convertible notes (2,865) Total Convertible notes, net $ 110,506 Corporate debt principal amount (4) 6.50 % 4/30/2021 $ 50,000 Unamortized deferred financing costs - Corporate debt (1,205) Total Corporate debt, net $ 48,795 Total carrying amount of debt components $ 338,387 Total carrying amount of conversion option of equity components recorded in equity $ 1,629 (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.
Schedule of contractual maturities of the Senior Secured Notes, Convertible Notes, and Corporate debt	(In Thousands) June 30, 2019 2019 $ — 2020 — 2021 48,795 2022 179,086 2023 110,506 Thereafter — Total $ 338,387

Guaranteed loan financing (Tabl

Guaranteed loan financing (Tables)	6 Months Ended
	Jun. 30, 2019
Guaranteed loan financing.
Schedule of guaranteed loan financing and the related interest rates and maturity dates	Weighted Range of Average Interest Range of (In Thousands) Interest Rate Rates Maturities (Years) Ending Balance June 30, 2019 3.66 % 3.46 – 8.25 % 2019 - 2037 $ 28,445 December 31, 2018 4.46 % 1.70 – 8.00 % 2019 - 2038 $ 229,678
Summary of contractual maturities of total guaranteed loan financing outstanding	(In Thousands) June 30, 2019 2019 $ 154 2020 460 2021 531 2022 149 2023 421 Thereafter 26,730 Total $ 28,445

Variable Interest Entities an_2

Variable Interest Entities and Securitization Activities (Tables)	6 Months Ended
	Jun. 30, 2019
Summary of information on securitized debt obligations of consolidated VIEs	June 30, 2019 December 31, 2018 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 $ 9,383 $ 9,383 5.5 % $ 12,226 $ 12,226 5.4 % ReadyCap Lending Small Business Trust 2015-1 — — 3.8 3,397 1,180 3.4 Sutherland Commercial Mortgage Trust 2017-SBC6 55,919 54,939 3.4 69,764 68,574 3.3 Sutherland Commercial Mortgage Trust 2018-SBC7 173,542 171,071 4.7 205,451 202,491 4.7 Sutherland Commercial Mortgage Trust 2019-SBC8 246,218 243,377 2.9 — — — ReadyCap Commercial Mortgage Trust 2014-1 29,198 29,210 5.6 36,108 36,129 4.5 ReadyCap Commercial Mortgage Trust 2015-2 90,904 87,721 4.3 110,497 106,755 4.2 ReadyCap Commercial Mortgage Trust 2016-3 44,280 42,594 4.1 63,945 62,053 3.7 ReadyCap Commercial Mortgage Trust 2018-4 138,003 133,974 3.9 144,701 140,314 3.9 ReadyCap Commercial Mortgage Trust 2019-5 349,556 338,850 4.1 — — — Ready Capital Mortgage Financing 2017-FL1 21,500 20,991 5.4 63,615 61,902 3.7 Ready Capital Mortgage Financing 2018-FL2 173,675 171,138 3.7 217,057 213,743 3.4 Ready Capital Mortgage Financing 2019-FL3 267,904 263,865 3.8 — — — Total $ 1,600,082 $ 1,567,113 3.9 % $ 926,761 $ 905,367 4.0 %
Schedule of assets and liabilities for VIEs	(In Thousands) June 30, 2019 December 31, 2018 Assets: Cash and cash equivalents $ 45 $ — Restricted cash 22,051 11,643 Loans, net 2,057,307 1,220,974 Real estate acquired in settlement of loans — 176 Accrued interest 11,077 6,750 Due from servicers 18,230 11,514 Total assets $ 2,108,710 $ 1,251,057 Liabilities: Securitized debt obligations of consolidated VIEs, net 1,567,113 905,367 Total liabilities $ 1,567,113 $ 905,367
Unconsolidated VIEs
Schedule of assets and liabilities for VIEs	Carrying Maximum (1) (In Thousands) June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Assets: Mortgage backed securities, at fair value (2) $ 82,610 $ 75,591 $ 82,610 $ 75,591 Investment in unconsolidated joint ventures 47,551 33,438 47,551 33,438 Total assets in unconsolidated VIEs $ 130,161 $ 109,029 $ 130,161 $ 109,029 (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 third-party sponsored securitizations.

Interest Income and Interest _2

Interest Income and Interest Expense (Tables)	6 Months Ended
	Jun. 30, 2019
Interest Income and Interest Expense
Schedule of components of interest income and expense	Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Interest income Loans Acquired SBA 7(a) loans $ 4,288 $ 7,968 $ 11,469 $ 15,840 Acquired loans 15,012 12,707 25,265 22,166 Originated Transitional loans 17,056 10,038 31,241 18,950 Originated SBC loans, at fair value 354 497 721 2,525 Originated SBC loans 11,898 7,204 24,180 12,944 Originated SBA 7(a) loans 2,836 1,030 4,764 1,873 Acquired Transitional loans 2,777 — 2,777 — Originated Residential Agency loans 16 12 22 24 Total loans (1) $ 54,237 $ 39,456 $ 100,439 $ 74,322 Held for sale, at fair value, loans Originated Residential Agency loans $ 1,047 $ 987 $ 1,823 $ 1,864 Originated Freddie loans 198 431 455 942 Acquired loans 37 77 73 90 Total loans, held for sale, at fair value $ 1,282 $ 1,495 $ 2,351 $ 2,896 Mortgage backed securities, at fair value 1,515 907 2,997 1,789 Total interest income $ 57,034 $ 41,858 $ 105,787 $ 79,007 Interest expense Secured borrowings $ (11,540) $ (8,747) $ (21,449) $ (15,969) Securitized debt obligations of consolidated VIEs (17,038) (8,288) (33,539) (15,491) Guaranteed loan financing (518) (2,956) (3,228) (5,770) Senior secured note (3,481) (3,487) (6,965) (6,726) Convertible note (2,188) (2,187) (4,376) (4,373) Corporate debt (988) (742) (1,972) (742) Total interest expense $ (35,753) $ (26,407) $ (71,529) $ (49,071) Net interest income before provision for loan losses $ 21,281 $ 15,451 $ 34,258 $ 29,936 (1) Includes interest income on loans in consolidated VIEs.

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jun. 30, 2019
Derivative Instruments
Schedule of the Company’s derivatives	As of June 30, 2019 As of December 31, 2018 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 Credit Default Swaps Credit Risk $ 15,000 $ — $ (59) $ 15,000 $ 295 $ — Interest Rate Swaps - not designated as hedges Interest rate risk 304,500 — (1,798) 411,811 — (2,349) Interest Rate Swaps - designated as hedges Interest rate risk 297,251 — (7,175) 134,325 — (1,276) Interest rate lock commitments Interest rate risk 289,113 3,670 — 144,799 1,775 — Total $ 905,864 $ 3,670 $ (9,032) $ 705,935 $ 2,070 $ (3,625)
Schedule of gains and losses on derivatives	Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Net Realized Unrealized Net Realized Unrealized (In Thousands) Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Credit default swaps (1) $ — $ (31) $ — $ (354) Interest rate swaps (1) (3,405) (5,153) (4,200) (4,549) Residential mortgage banking activities interest rate swaps (2) — (456) — (799) Interest rate lock commitments (2) — 1,188 — 1,896 Total $ (3,405) $ (4,452) $ (4,200) $ (3,806) (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. Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Net Realized Unrealized Net Realized Unrealized (In Thousands) Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Credit default swaps (1) $ — $ 198 $ — $ 206 Interest rate swaps (1) (951) 931 3,603 (415) Residential mortgage banking activities interest rate swaps (2) — (230) — (712) Interest rate lock commitments (2) — (638) — 1,005 Total $ (951) $ 261 $ 3,603 $ 84 (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.
Schedule of gains and losses on the Company’s derivatives which have qualified for hedge accounting	(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) $ 59 $ — $ 59 $ (6,638) $ (6,579) Total - Three months ended June 30, 2019 $ 59 $ — $ 59 $ (6,638) $ (6,579) Hedge type Interest rate - forecasted transactions (1) $ — $ — $ — $ — $ — Total - Three months ended June 30, 2018 $ — $ — $ — $ — $ — Hedge type Interest rate - forecasted transactions (1) $ 100 $ — $ 100 $ (7,097) $ (6,997) Total - Six months ended June 30, 2019 $ 100 $ — $ 100 $ (7,097) $ (6,997) Hedge type Interest rate - forecasted transactions (1) $ — $ — $ — $ — $ — Total - Six months ended June 30, 2018 $ — $ — $ — $ — $ — (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.

Real Estate Acquired in Settl_2

Real Estate Acquired in Settlement of Loans (Tables)	6 Months Ended
	Jun. 30, 2019
Real Estate Acquired in Settlement of Loans
Summary of the carrying amount of the Company’s real estate holdings	(In Thousands) June 30, 2019 December 31, 2018 Acquired ORM Portfolio: Retail $ 19,950 $ — Mixed Use 17,478 — Lodging/Residential 10,711 — Land 8,711 — Office 1,256 — Services 1,034 — Total Acquired ORM REO $ 59,140 $ — Other REO held for sale: Office $ 5,739 6,719 SBA 303 23 Mixed Use 279 279 Retail 191 191 Single Family 182 368 Multi-Family — 207 Total Other REO $ 6,694 $ 7,787 Total Real estate acquired in settlement of loans, held for sale $ 65,834 $ 7,787

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2019
Management Fee
Related-party transactions
Schedule of related party transactions	For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Management fee - total $ 2.5 million $ 2.0 million $ 4.5 million $ 4.0 million Management fee - amount unpaid $ 2.5 million $ 2.0 million $ 2.5 million $ 2.0 million
Incentive Distribution
Related-party transactions
Schedule of related party transactions	For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Incentive fee distribution - total $ — $ 0.3 million $ — $ 0.7 million Incentive fee distribution - amount unpaid $ — $ 0.3 million $ — $ 0.3 million
Expense Reimbursement
Related-party transactions
Schedule of related party transactions	For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Reimbursable expenses payable to our Manager - total $ 1.1 million $ 0.8 million $ 1.9 million $ 1.7 million Reimbursable expenses payable to our Manager - amount unpaid $ 0.4 million $ 0.9 million $ 0.4 million $ 0.9 million

Other Assets and Other Liabil_2

Other Assets and Other Liabilities (Tables)	6 Months Ended
	Jun. 30, 2019
Other Assets and Other Liabilities
Schedule of other assets and other liabilities	(In Thousands) June 30, 2019 December 31, 2018 Other assets: Due from servicers $ 13,454 $ 7,284 Accrued interest 6,882 7,253 Intangible assets 2,759 2,915 Deferred financing costs 1,666 2,564 Deferred tax asset 22,744 18,084 Deferred loan exit fees 10,188 8,668 Other 10,706 8,679 Total other assets $ 68,399 $ 55,447 Accounts payable and other accrued liabilities: Deferred tax liability $ 20,094 $ 19,972 Accrued salaries, wages and commissions 10,929 19,925 Accrued interest payable 12,981 14,244 Servicing principal and interest payable 7,874 10,582 Repair and denial reserve 6,318 5,524 Payable to related parties 2,495 2,580 Unapplied cash 1,219 340 Other accounts payable and accrued liabilities 11,769 1,552 Total accounts payable and other accrued liabilities $ 73,679 $ 74,719

Other Income and Operating Ex_2

Other Income and Operating Expenses (Tables)	6 Months Ended
	Jun. 30, 2019
Other Income and Operating Expenses
Schedule of other income and operating expenses	Three Months Ended June 30, Six Months Ended June 30, (In Thousands) 2019 2018 2019 2018 Other income Origination income $ 1,709 1,358 $ 2,517 2,511 Release/ (Increase) of repair and denial reserve (76) — (165) (110) Other 1,159 468 1,340 759 Total other income $ 2,792 $ 1,826 $ 3,692 $ 3,160 Other operating expenses Origination costs 2,734 2,573 3,923 4,429 Technology expense 1,057 783 2,158 1,566 Charge off of real estate acquired in settlement of loans 375 981 680 1,000 Rent expense 1,103 563 1,794 1,085 Recruiting, training and travel expenses 592 577 1,179 1,280 Loan acquisition costs (5) 934 105 934 Other 2,229 2,505 5,108 6,633 Total other operating expenses $ 8,085 $ 8,916 $ 14,947 $ 16,927

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2019
Stockholders’ Equity
Schedule of cash dividends declared by the Board of Directors	The following table presents cash dividends declared by our board of directors on our common stock from March 14, 2017 through June 30, 2019: Dividend per Declaration Date Record Date Payment Date Share March 14, 2018 March 30, 2018 April 30, 2018 $ 0.37 June 12, 2018 June 29, 2018 July 31, 2018 $ 0.40 September 11, 2018 September 28, 2018 October 31, 2018 $ 0.40 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
Schedule of Restricted Stock Unit RSU and RSA activity	Restricted Stock Awards (In Thousands, except share data) Number of Grant date fair value Weighted-average grant date fair value (per share) Outstanding, January 1 118,904 $ 1,661 $ 13.97 Granted 111,097 1,784 16.06 Vested (52,110) (733) 14.06 Forfeited — — — Canceled — — — Outstanding, March 31, 2019 177,891 $ 2,712 $ 15.25 Granted 21,356 310 14.51 Vested (19,766) (293) 14.84 Forfeited (5,746) (82) 14.21 Canceled — — — Outstanding, June 30, 2019 173,735 $ 2,647 $ 15.24

Earnings per Share of Common _2

Earnings per Share of Common Stock (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings per Share of Common Stock
Schedule of computation of basic and diluted earnings per share	Three Months Ended June 30, Six Months Ended June 30, (In Thousands, except for share and per share amounts) 2019 2018 2019 2018 Basic Earnings Net income $ 11,245 $ 15,884 $ 41,693 $ 34,402 Less: Income attributable to non-controlling interest 276 588 1,257 1,252 Less: Income attributable to participating shares 79 51 161 112 Basic earnings $ 10,890 $ 15,245 $ 40,275 $ 33,038 Diluted Earnings Continuing Operations Net income $ 11,245 $ 15,884 $ 41,693 $ 34,402 Less: Income attributable to non-controlling interest 276 588 1,257 1,252 Less: Income attributable to participating shares 79 51 161 112 Diluted earnings $ 10,890 $ 15,245 $ 40,275 $ 33,038 Number of Shares Basic — Average shares outstanding 44,425,598 32,073,717 38,524,023 32,055,110 Effect of dilutive securities — Unvested participating shares 5,665 19,033 3,294 14,389 Diluted — Average shares outstanding 44,431,263 32,092,750 38,527,317 32,069,499 Earnings Per Share Attributable to RC Common Stockholders: Basic $ 0.25 $ 0.48 $ 1.05 $ 1.03 Diluted $ 0.25 $ 0.48 1.05 1.03

Offsetting Assets and Liabili_2

Offsetting Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2019
Offsetting Assets and Liabilities
Schedule of effect of offsetting recognized assets	The following table provides disclosure regarding the effect of offsetting of the Company’s recognized assets presented in the unaudited interim consolidated balance sheet as of June 30, 2019: Gross Assets Amounts Presented in Gross Amounts Not Offset in the Consolidated Gross Offset in the the Balance Sheets (1) Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral (In Thousands) Assets Sheets Sheets Instruments Received Net Amount Credit default swaps $ — $ — $ — $ — $ — $ — Interest rate swaps — — — — — — Total $ — $ — $ — $ — $ — $ — The following table provides disclosure regarding the effect of offsetting of the Company’s recognized assets presented in the unaudited interim consolidated balance sheet as of December 31, 2018: Gross Assets Amounts Presented in Gross Amounts Not Offset in the Consolidated Gross Offset in the the Balance Sheets (1) Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral (In Thousands) Assets Sheets Sheets Instruments Received Net Amount Credit default swaps $ 295 $ — $ 295 $ — $ 295 $ — Total $ 295 $ — $ 295 $ — $ 295 $ — (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 consolidated balance sheets as assets or liabilities, respectively.
Schedule of effect of offsetting recognized liabilities	The following table provides disclosure regarding the effect of offsetting of the Company’s recognized liabilities presented in the unaudited interim consolidated balance sheet as of June 30, 2019: Gross Liabilities Amounts Presented in Gross Amounts Not Offset in the Consolidated Gross Offset in the the Balance Sheets (1) Amounts of Consolidated Consolidated Cash Recognized Balance Balance Financial Collateral (In Thousands) Liabilities Sheets Sheets Instruments Paid Net Amount Interest rate swaps $ 8,973 $ — $ 8,973 $ — $ 8,973 $ — Credit default swaps 59 — 59 — 59 — Secured borrowings 988,868 — 988,868 988,868 — — Total $ 997,900 $ — $ 997,900 $ 988,868 $ 9,032 $ — The following table provides disclosure regarding the effect of offsetting of the Company’s recognized liabilities presented in the unaudited interim consolidated balance sheet as of December 31, 2018: Liabilities Gross Presented in Gross Amounts Not Offset in the Consolidated Gross Amounts the Balance Sheets (1) Amounts of Offset in the Consolidated Cash Recognized Consolidated Balance Financial Collateral (In Thousands) Liabilities Balance Sheets Sheets Instruments Paid Net Amount Interest rate swaps $ 3,625 $ — $ 3,625 $ — $ 3,625 $ — Secured borrowings 834,547 — 834,547 834,547 — — Total $ 838,172 $ — $ 838,172 $ 834,547 $ 3,625 $ — (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 consolidated balance sheets as assets or liabilities, respectively.

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting
Schedule of segment reporting information	Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the three months ended June 30, 2019 are summarized in the below table. SBA Originations, Residential Loan SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 18,208 $ 30,639 $ 7,124 $ 1,063 $ — $ 57,034 Interest expense (10,602) (21,401) (2,300) (1,450) — (35,753) Net interest income before provision for loan losses $ 7,606 $ 9,238 $ 4,824 $ (387) $ — $ 21,281 Provision for loan losses (544) (350) (454) — — (1,348) Net interest income after provision for loan losses $ 7,062 $ 8,888 $ 4,370 $ (387) $ — $ 19,933 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 21,021 $ — $ 21,021 Net realized gain on financial instruments 453 1,627 4,175 — — 6,255 Net unrealized gain on financial instruments (661) (76) 71 (6,340) — (7,006) Other income 957 1,661 39 85 50 2,792 Servicing income — 461 1,818 5,532 — 7,811 Income from unconsolidated joint ventures 2,083 — — — — 2,083 Gain on bargain purchase — — — — — — Total non-interest income $ 2,832 $ 3,673 $ 6,103 $ 20,298 $ 50 $ 32,956 Non-interest expense Employee compensation and benefits (26) (1,774) (4,424) (5,445) (840) (12,509) Allocated employee compensation and benefits from related party (125) — — — (1,125) (1,250) Variable expenses on residential mortgage banking activities — — — (13,501) — (13,501) Professional fees (47) (313) (169) (229) (828) (1,586) Management fees – related party — — — — (2,495) (2,495) Loan servicing expense (1,117) (1,475) (260) (1,677) (42) (4,571) Merger related expenses — — — — (603) (603) Other operating expenses (882) (2,712) (2,076) (2,054) (361) (8,085) Total non-interest expense $ (2,197) $ (6,274) $ (6,929) $ (22,906) $ (6,294) $ (44,600) Net income (loss) before provision for income taxes $ 7,697 $ 6,287 $ 3,544 $ (2,995) $ (6,244) $ 8,289 Total assets $ 1,158,351 $ 2,055,751 $ 261,326 $ 303,465 $ 61,430 $ 3,840,323 Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the six months ended June 30, 2019 are summarized in the below table. SBA Originations, Residential Loan SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 28,881 $ 58,828 $ 16,233 $ 1,845 $ — $ 105,787 Interest expense (18,307) (42,068) (8,790) (2,364) — (71,529) Net interest income before provision for loan losses $ 10,574 $ 16,760 $ 7,443 $ (519) $ — $ 34,258 Provision for loan losses (677) (309) (880) — — (1,866) Net interest income after provision for loan losses $ 9,897 $ 16,451 $ 6,563 $ (519) $ — $ 32,392 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 35,608 $ — $ 35,608 Net realized gain on financial instruments 404 5,167 7,966 — — 13,537 Net unrealized gain on financial instruments (680) 734 (504) (13,468) — (13,918) Other income 1,025 2,447 53 102 65 3,692 Servicing income 1 897 2,833 10,832 — 14,563 Income from unconsolidated joint ventures 5,012 — — — — 5,012 Gain on bargain purchase — — — — 30,728 30,728 Total non-interest income $ 5,762 $ 9,245 $ 10,348 $ 33,074 $ 30,793 $ 89,222 Non-interest expense Employee compensation and benefits (27) (4,034) (8,192) (10,040) (1,664) (23,957) Allocated employee compensation and benefits from related party (210) — — — (1,893) (2,103) Variable expenses on residential mortgage banking activities — — — (22,677) — (22,677) Professional fees (217) (614) (356) (465) (1,763) (3,415) Management fees – related party — — — — (4,492) (4,492) Incentive fees – related party — — — — — — Loan servicing expense (1,918) (2,690) (117) (3,417) (77) (8,219) Merger related expenses — — — — (6,070) (6,070) Other operating expenses (1,304) (4,829) (3,126) (4,127) (1,561) (14,947) Total non-interest expense $ (3,676) $ (12,167) $ (11,791) $ (40,726) $ (17,520) $ (85,880) Net income (loss) before provision for income taxes $ 11,983 $ 13,529 $ 5,120 $ (8,171) $ 13,273 $ 35,734 Total assets $ 1,158,351 $ 2,055,751 $ 261,326 $ 303,465 $ 61,430 $ 3,840,323 Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the three months ended June 30, 2018 are summarized in the below table. SBA Originations, Residential Loan SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 28,881 $ 58,828 $ 16,233 $ 1,845 $ — $ 105,787 Interest expense (18,307) (42,068) (8,790) (2,364) — (71,529) Net interest income before provision for loan losses $ 10,574 $ 16,760 $ 7,443 $ (519) $ — $ 34,258 Provision for loan losses (677) (309) (880) — — (1,866) Net interest income after provision for loan losses $ 9,897 $ 16,451 $ 6,563 $ (519) $ — $ 32,392 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 35,608 $ — $ 35,608 Net realized gain on financial instruments 404 5,167 7,966 — — 13,537 Net unrealized gain on financial instruments (680) 734 (504) (13,468) — (13,918) Other income 1,025 2,447 53 102 65 3,692 Servicing income 1 897 2,833 10,832 — 14,563 Income from unconsolidated joint ventures 5,012 — — — — 5,012 Gain on bargain purchase — — — — 30,728 30,728 Total non-interest income $ 5,762 $ 9,245 $ 10,348 $ 33,074 $ 30,793 $ 89,222 Non-interest expense Employee compensation and benefits (27) (4,034) (8,192) (10,040) (1,664) (23,957) Allocated employee compensation and benefits from related party (210) — — — (1,893) (2,103) Variable expenses on residential mortgage banking activities — — — (22,677) — (22,677) Professional fees (217) (614) (356) (465) (1,763) (3,415) Management fees – related party — — — — (4,492) (4,492) Incentive fees – related party — — — — — — Loan servicing expense (1,918) (2,690) (117) (3,417) (77) (8,219) Merger related expenses — — — — (6,070) (6,070) Other operating expenses (1,304) (4,829) (3,126) (4,127) (1,561) (14,947) Total non-interest expense $ (3,676) $ (12,167) $ (11,791) $ (40,726) $ (17,520) $ (85,880) Net income (loss) before provision for income taxes $ 11,983 $ 13,529 $ 5,120 $ (8,171) $ 13,273 $ 35,734 Total assets $ 1,158,351 $ 2,055,751 $ 261,326 $ 303,465 $ 61,430 $ 3,840,323 SBA Originations, Residential Loan SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 12,970 $ 18,891 $ 8,998 $ 999 $ — $ 41,858 Interest expense (6,277) (15,320) (3,972) (838) — (26,407) Net interest income before provision for loan losses $ 6,693 $ 3,571 $ 5,026 $ 161 $ — $ 15,451 Provision for loan losses 80 73 244 — — 397 Net interest income after provision for loan losses $ 6,773 $ 3,644 $ 5,270 $ 161 $ — $ 15,848 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 17,255 $ — $ 17,255 Net realized gain on financial instruments (52) 3,532 5,140 — — 8,620 Net unrealized gain (loss) on financial instruments 848 4,130 (819) 298 — 4,457 Other income 111 1,356 291 68 — 1,826 Servicing income 5 330 1,464 4,828 — 6,627 Income from unconsolidated joint ventures 1,503 — — — — 1,503 Total non-interest income $ 2,415 $ 9,348 $ 6,076 $ 22,449 $ — $ 40,288 Non-interest expense Employee compensation and benefits $ (141) $ (2,285) $ (3,138) $ (8,535) $ (173) (14,272) Allocated employee compensation and benefits from related party (120) — — — (1,080) (1,200) Variable expenses on residential mortgage banking activities — — — (7,493) (7,493) Professional fees (150) (325) (524) (115) (1,287) (2,401) Management fees – related party — — — — (2,036) (2,036) Incentive fees – related party — — — — (269) (269) Loan servicing (expense) income (764) (886) 211 (1,561) — (3,000) Other operating expenses (1,998) (3,287) (970) (1,981) (680) (8,916) Total non-interest expense $ (3,173) $ (6,783) $ (4,421) $ (19,685) $ (5,525) $ (39,587) Net income (loss) before provision for income taxes $ 6,015 $ 6,209 $ 6,925 $ 2,925 $ (5,525) $ 16,549 Total assets $ 707,943 $ 1,296,872 $ 489,938 $ 298,027 $ 20,200 $ 2,812,980 Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the six months ended June 30, 2018 are summarized in the below table. SBA Originations, Residential Loan SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 22,655 $ 36,751 $ 17,713 $ 1,888 $ — $ 79,007 Interest expense (12,106) (27,790) (7,592) (1,583) — (49,071) Net interest income before provision for loan losses $ 10,549 $ 8,961 $ 10,121 $ 305 $ — $ 29,936 Provision for loan losses (192) 109 312 — — 229 Net interest income after provision for loan losses $ 10,357 $ 9,070 $ 10,433 $ 305 $ — $ 30,165 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 31,279 $ — $ 31,279 Net realized gain on financial instruments 94 12,231 8,526 — — 20,851 Net unrealized gain (loss) on financial instruments 801 1,763 (286) 5,186 — 7,464 Other income 268 2,615 168 109 — 3,160 Servicing income 10 582 2,716 9,729 — 13,037 Income on unconsolidated joint ventures 7,243 — — — — 7,243 Total non-interest income $ 8,416 $ 17,191 $ 11,124 $ 46,303 $ — $ 83,034 Non-interest expense Employee compensation and benefits $ (313) $ (4,922) $ (6,393) $ (17,650) $ (314) $ (29,592) Allocated employee compensation and benefits from related party (240) — — — (2,160) (2,400) Variable expenses on residential mortgage banking activities — — — (9,783) — (9,783) Professional fees (467) (714) (1,003) (224) (2,641) (5,049) Management fees – related party — — — — (4,049) (4,049) Incentive fees – related party — — — — (676) (676) Loan servicing expense (1,565) (1,525) 287 (4,290) — (7,093) Other operating expenses (2,816) (5,967) (2,080) (4,681) (1,383) (16,927) Total non-interest expense $ (5,401) $ (13,128) $ (9,189) $ (36,628) $ (11,223) $ (75,569) Net income (loss) before provision for income taxes $ 13,372 $ 13,133 $ 12,368 $ 9,980 $ (11,223) $ 37,630 Total assets $ 707,943 $ 1,296,872 $ 489,938 $ 298,027 $ 20,200 $ 2,812,980

Supplemental Financial Data (Ta

Supplemental Financial Data (Tables)	6 Months Ended
	Jun. 30, 2019
Unconsolidated VIEs
Schedule of condensed financial information for unconsolidated subsidiaries	Statements of Income Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (In Thousands) Girod HoldCo, LLC WFLLA, LLC Girod HoldCo, LLC WFLLA, LLC Interest income $ 3,678 $ 1,835 $ 4,418 $ 2,205 Realized gains 430 215 2,135 1,065 Unrealized gains 5,091 2,540 1,242 620 Servicing expense and other (1,460) (733) (1,760) (884) Income before provision for income taxes $ 7,739 $ 3,857 $ 6,035 $ 3,006 Statements of Income Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (In Thousands) Girod HoldCo, LLC WFLLA, LLC Girod HoldCo, LLC WFLLA, LLC Interest income $ 4,835 $ 2,413 $ 12,265 $ 6,120 Realized gains 631 315 16,038 8,003 Unrealized gains 16,368 8,168 4,505 2,248 Servicing expense and other (2,357) (1,181) (3,765) (1,885) Income before provision for income taxes $ 19,477 $ 9,715 $ 29,043 $ 14,486

Organization (Details)

Organization (Details) - segment	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Organization
Ownership percentage in operating partnership	97.60%	96.50%
Number of reportable segments	4
Number of operating segments	4

Organization - Merger with Owen

Organization - Merger with Owens Realty Mortgage and other details (Details) $ / shares in Units, $ in Millions	Mar. 29, 2019USD ($)$ / sharesshares	Jun. 30, 2019
Organization
Closing share price	$ 14.67
Owens Realty Mortgage, Inc.
Organization
Common share fixed exchange ratio	1.441
Number of common shares issued in acquisition | shares	12,223,830
Aggregate value of consideration | $	$ 179.3
Closing share price	$ 14.67
Ready Capital Shareholders
Organization
Closing share price	$ 14.67
Percentage of equity interests held after closing	72.00%
Owens Realty Shareholders
Organization
Percentage of equity interests held after closing	28.00%
Minimum
Organization
Percentage of taxable income distributed in the form of qualifying distributions		90.00%

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)classitem	Dec. 31, 2018USD ($)
Amount in money market mutual funds	$ 0	$ 600
Number of days loans must be delinquent to be placed on nonaccrual status	90 days
Number of separate classes of servicing rights used for risk management purposes | class	2
Number of repurchase agreements accounted for as components of linked transactions | item	0
Unrecognized accrued taxes, interest and penalties	$ 0	0
The number of consecutive months contractual payments that must be received on a loan in non-accrual status before resuming recognition of interest income | item	3
Borrowings under credit facilities | Maximum
Maturity period	2 years
Restricted cash
Cash collateral receivable	$ 14,600	$ 11,600

Recently Issued Accounting Pr_3

Recently Issued Accounting Pronouncements (Details) $ in Millions	Jun. 30, 2019USD ($)
Leases
Right-of-use assets	$ 3.3
Balance sheet location, Right-of-use assets	us-gaap:PrepaidExpenseAndOtherAssets
Lease liabilities	$ 3.3
Balance sheet location, Lease liabilities	us-gaap:AccountsPayableAndOtherAccruedLiabilities

Acquisition of Owens Realty M_3

Acquisition of Owens Realty Mortgage Inc - ORM Merger (Details) $ / shares in Units, $ in Millions	Mar. 29, 2019USD ($)$ / sharesshares	Nov. 07, 2018
Acquisition of Owens Realty Mortgage, Inc
Closing share price	$ 14.67
Ready Capital Shareholders
Acquisition of Owens Realty Mortgage, Inc
Closing share price	$ 14.67
Percentage of equity interests held after closing	72.00%
Owens Realty Shareholders
Acquisition of Owens Realty Mortgage, Inc
Percentage of equity interests held after closing	28.00%
Owens Realty Mortgage, Inc.
Acquisition of Owens Realty Mortgage, Inc
Percentage of adjusted OMR book value		99.00%
Number of common shares issued in acquisition | shares	12,223,830
Common share fixed exchange ratio	1.441
Aggregate value of consideration | $	$ 179.3
Closing share price	$ 14.67

Acquisition of Owens Realty M_4

Acquisition of Owens Realty Mortgage, Inc - Fair value of assets and liabilities assumed (Details) - Owens Realty Mortgage, Inc. - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 29, 2019
Assets:
Cash and cash equivalents		$ 10,822
Loans, net		130,449
Real estate acquired in settlement of loans, held for sale	$ 59,140	67,973
Investment in unconsolidated joint ventures		8,619
Deferred tax assets		4,660
Accrued interest		1,209
Other		379
Total assets acquired		224,111
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
Gross contractual principal of acquired loan receivables.		$ 134,800

Acquisition of Owens Realty M_5

Acquisition of Owens Realty Mortgage, Inc - Bargain purchase gain (Details) $ / shares in Units, $ in Thousands	Mar. 29, 2019USD ($)$ / sharesshares	Jun. 30, 2019USD ($)	Jun. 30, 2019USD ($)
Aggregate consideration transferred, net of assets acquired and bargain purchase gain
Closing share price | $ / shares	$ 14.67
Bargain purchase gain			$ 30,728
Owens Realty Mortgage, Inc.
Aggregate consideration transferred, net of assets acquired and bargain purchase gain
FV of Net Assets Acquired	$ 210,047
Common share fixed exchange ratio	1.441
Shares issued | shares	12,223,830
Closing share price | $ / shares	$ 14.67
Total consideration transferred based on value of shares issued	$ 179,324
Bargain purchase gain	$ 30,728
Acquisition related costs		$ 600	$ 6,000
Owens Realty Mortgage, Inc. | Owens Realty Mortgage, Inc.
Aggregate consideration transferred, net of assets acquired and bargain purchase gain
ORM shares outstanding at March 29, 2019 | shares	8,482,880

Acquisition of Owens Realty M_6

Acquisition of Owens Realty Mortgage, Inc - Pro-forma Information (Details) - USD ($) $ in Thousands	Mar. 29, 2019	Jun. 30, 2019	Jun. 30, 2019
Pro-forma information
Interest income		$ 44,945	$ 84,985
Interest expense		(26,994)	(50,196)
Provision for loan losses		282	195
Noninterest income		42,504	86,508
Noninterest expense		(41,863)	(80,884)
Income before provision for income taxes		18,874	40,608
Provision for income (taxes) benefit		(647)	(3,393)
Net income		18,227	37,215
Nonrecurring transaction costs excluded from pro forma non-interest expense		$ 600	8,400
Bargain purchase gain			$ 30,728
Owens Realty Mortgage, Inc.
Pro-forma information
Bargain purchase gain	$ 30,728

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses - Classification, unpaid principal balance, and carrying value (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Carrying Value
Total Loans, before allowance for loan losses	$ 1,009,526		$ 1,199,504
Allowance for loan losses	(6,850)		(6,112)
Total Loans, net	1,002,676		1,193,392
Allowance for loan losses on loans in consolidated VIEs	(8,814)	$ (8,277)	(8,320)	$ (9,666)	$ (10,533)	$ (11,746)
Total Loans, net of allowance for loan losses, including loans in consolidated VIEs	3,059,983		2,414,366
Loans, held for sale, at fair value	177,507		115,258
Loans, held-for-investment	3,237,490		2,529,624
UPB
Total Loans, before allowance for loan losses	1,056,379		1,230,582
Total Loans, net	1,056,379		1,230,582
Total Loans, held for sale, at fair value	171,124		111,163
Total Loan portfolio	3,288,037		2,587,106
Consolidated VIEs
Carrying Value
Total Loans, in consolidated VIEs, before allowance for loan losses	2,059,271		1,223,182
Allowance for loan losses on loans in consolidated VIEs	(1,964)		(2,208)
Total Loans, net, in consolidated VIEs	2,057,307		1,220,974
Total Loans, net of allowance for loan losses, including loans in consolidated VIEs	3,059,983		2,414,366
UPB
Total Loans, in consolidated VIEs, before allowance for loan losses	2,060,534		1,245,361
Total Loans, net, in consolidated VIEs	2,060,534		1,245,361
Total Loans, net, and Loans, net in consolidated VIEs	3,116,913		2,475,943
Acquired SBA 7(a) loans
Carrying Value
Total Loans, before allowance for loan losses	116,151		264,308
Allowance for loan losses on loans in consolidated VIEs	(2,194)	(2,274)	(2,318)	(2,634)	(2,990)	(3,527)
Loans, held for sale, at fair value	1,475
UPB
Total Loans, before allowance for loan losses	149,922		283,423
Total Loans, held for sale, at fair value	1,367
Acquired SBA 7(a) loans | Consolidated VIEs
Carrying Value
Total Loans, in consolidated VIEs, before allowance for loan losses			55,966
UPB
Total Loans, in consolidated VIEs, before allowance for loan losses			74,554
Acquired loans
Carrying Value
Total Loans, before allowance for loan losses	192,007		206,983
Allowance for loan losses on loans in consolidated VIEs	(5,072)	(5,041)	(5,052)	(6,167)	(6,544)	(7,264)
Loans, held for sale, at fair value	2,790		3,008
UPB
Total Loans, before allowance for loan losses	198,793		215,213
Total Loans, held for sale, at fair value	2,665		2,935
Acquired loans | Consolidated VIEs
Carrying Value
Total Loans, in consolidated VIEs, before allowance for loan losses	765,771		343,156
UPB
Total Loans, in consolidated VIEs, before allowance for loan losses	772,841		354,794
Acquired Transitional loans
Carrying Value
Total Loans, before allowance for loan losses	96,391
Allowance for loan losses on loans in consolidated VIEs	(66)
UPB
Total Loans, before allowance for loan losses	97,770
Originated Transitional loans
Carrying Value
Total Loans, before allowance for loan losses	193,219		272,981
Allowance for loan losses on loans in consolidated VIEs	(367)	(222)	(353)	(223)	(338)
UPB
Total Loans, before allowance for loan losses	195,043		275,237
Originated Transitional loans | Consolidated VIEs
Carrying Value
Total Loans, in consolidated VIEs, before allowance for loan losses	604,267		391,752
UPB
Total Loans, in consolidated VIEs, before allowance for loan losses	607,667		393,116
Originated SBC loans, at fair value
Carrying Value
Total Loans, before allowance for loan losses	20,409		22,664
UPB
Total Loans, before allowance for loan losses	20,078		22,325
Originated SBC loans
Carrying Value
Total Loans, before allowance for loan losses	285,950		345,100
Allowance for loan losses on loans in consolidated VIEs	(421)		(11)	(98)	(227)	(637)
UPB
Total Loans, before allowance for loan losses	284,147		342,751
Originated SBC loans | Consolidated VIEs
Carrying Value
Total Loans, in consolidated VIEs, before allowance for loan losses	689,233		432,308
UPB
Total Loans, in consolidated VIEs, before allowance for loan losses	680,026		422,897
Originated SBA 7(a) loans
Carrying Value
Total Loans, before allowance for loan losses	101,977		85,569
Allowance for loan losses on loans in consolidated VIEs	(694)	$ (740)	(586)	$ (544)	$ (434)	$ (318)
Loans, held for sale, at fair value	12,008		21,153
UPB
Total Loans, before allowance for loan losses	107,204		89,733
Total Loans, held for sale, at fair value	11,132		19,669
Originated Residential Agency loans
Carrying Value
Total Loans, before allowance for loan losses	3,422		1,899
Loans, held for sale, at fair value	125,550		67,775
UPB
Total Loans, before allowance for loan losses	3,422		1,900
Total Loans, held for sale, at fair value	120,923		65,586
Originated Freddie Mac loans
Carrying Value
Loans, held for sale, at fair value	35,684		23,322
UPB
Total Loans, held for sale, at fair value	$ 35,037		$ 22,973

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses - Delinquency (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Loan delinquency information
Total Loans Carrying Value	$ 3,062,176	$ 2,416,303
Non-Accrual Loans	69,367	49,486
90+ Days Past Due but Accruing	5,160	4,854
General allowance for loan losses	(2,193)	(1,937)
Total Loans, net of allowance for loan losses, including loans in consolidated VIEs	$ 3,059,983	$ 2,414,366
Percentage of outstanding	100.00%	100.00%
Financing Receivable, Nonaccrual, Percent Past Due	2.30%	2.00%
Percentage of outstanding	0.20%	0.20%
Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	$ 2,979,120	$ 2,337,336
Percentage of outstanding	97.30%	96.70%
30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	$ 40,932	$ 42,331
Percentage of outstanding	1.30%	1.80%
90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	$ 42,124	$ 36,636
Percentage of outstanding	1.40%	1.50%
Acquired SBA 7(a) loans
Loan delinquency information
Total Loans Carrying Value	$ 114,360	$ 318,488
Non-Accrual Loans	11,542	17,916
90+ Days Past Due but Accruing	2,063	1,043
General allowance for loan losses	(406)	(532)
Acquired SBA 7(a) loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	106,326	299,080
Acquired SBA 7(a) loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	1,131	14,943
Acquired SBA 7(a) loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	6,903	4,465
Acquired loans
Loan delinquency information
Total Loans Carrying Value	953,491	545,695
Non-Accrual Loans	10,208	11,447
90+ Days Past Due but Accruing	2,940	3,811
General allowance for loan losses	(784)	(608)
Acquired loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	936,985	524,930
Acquired loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	5,990	7,213
Acquired loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	10,516	13,552
Acquired Transitional loans
Loan delinquency information
Total Loans Carrying Value	96,391
Non-Accrual Loans	8,326
General allowance for loan losses	(66)
Acquired Transitional loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	89,332
Acquired Transitional loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	3,141
Acquired Transitional loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	3,918
Originated Transitional loans
Loan delinquency information
Total Loans Carrying Value	797,486	664,733
Non-Accrual Loans	13,114
General allowance for loan losses	(367)	(353)
Originated Transitional loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	778,730	659,103
Originated Transitional loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	18,756	5,630
Originated SBC loans, at fair value
Loan delinquency information
Total Loans Carrying Value	20,409	22,664
Originated SBC loans, at fair value | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	20,409	22,664
Originated SBC loans
Loan delinquency information
Total Loans Carrying Value	974,789	777,408
Non-Accrual Loans	21,770	16,895
General allowance for loan losses	(25)	(11)
Originated SBC loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	944,900	748,146
Originated SBC loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	11,537	12,367
Originated SBC loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	18,352	16,895
Originated SBA 7(a) loans
Loan delinquency information
Total Loans Carrying Value	101,828	85,416
Non-Accrual Loans	2,177	1,666
90+ Days Past Due but Accruing	157
General allowance for loan losses	(545)	(433)
Originated SBA 7(a) loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	101,246	83,076
Originated SBA 7(a) loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	377	2,178
Originated SBA 7(a) loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	205	162
Originated Residential Agency loans
Loan delinquency information
Total Loans Carrying Value	3,422	1,899
Non-Accrual Loans	2,230	1,562
Originated Residential Agency loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	1,192	337
Originated Residential Agency loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	$ 2,230	$ 1,562

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses - Credit Quality (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 3,062,176	$ 2,416,303
General allowance for loan losses	(2,193)	(1,937)
Total Loans, net of allowance for loan losses, including loans in consolidated VIEs	3,059,983	2,414,366
Carrying amount of loan foreclosure in process	$ 1,900	$ 1,400
Percentage of outstanding	100.00%	100.00%
0.0 - 20.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 214,234	$ 124,928
Percentage of outstanding	7.00%	5.20%
20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 418,926	$ 293,021
Percentage of outstanding	13.70%	12.10%
40.1 - 60.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 856,371	$ 697,709
Percentage of outstanding	28.00%	28.90%
60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 1,265,110	$ 1,001,900
Percentage of outstanding	41.30%	41.50%
80.1 - 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 220,548	$ 200,209
Percentage of outstanding	7.20%	8.30%
Greater than 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 86,987	$ 98,536
Percentage of outstanding	2.80%	4.00%
Acquired SBA 7(a) loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 114,360	$ 318,488
General allowance for loan losses	(406)	(532)
Acquired SBA 7(a) loans | 0.0 - 20.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	3,548	6,337
Acquired SBA 7(a) loans | 20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	18,179	38,150
Acquired SBA 7(a) loans | 40.1 - 60.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	28,099	100,578
Acquired SBA 7(a) loans | 60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	26,379	93,411
Acquired SBA 7(a) loans | 80.1 - 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	17,765	33,750
Acquired SBA 7(a) loans | Greater than 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	20,390	46,262
Acquired loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	953,491	545,695
General allowance for loan losses	(784)	(608)
Acquired loans | 0.0 - 20.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	206,954	118,198
Acquired loans | 20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	296,396	165,567
Acquired loans | 40.1 - 60.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	215,613	136,206
Acquired loans | 60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	109,508	70,017
Acquired loans | 80.1 - 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	98,739	40,003
Acquired loans | Greater than 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	26,281	15,704
Acquired Transitional loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	96,391
General allowance for loan losses	(66)
Acquired Transitional loans | 0.0 - 20.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	3,585
Acquired Transitional loans | 20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	12,373
Acquired Transitional loans | 40.1 - 60.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	36,930
Acquired Transitional loans | 60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	36,726
Acquired Transitional loans | 80.1 - 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	6,777
Originated Transitional loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	797,486	664,733
General allowance for loan losses	(367)	(353)
Originated Transitional loans | 20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	29,450	29,245
Originated Transitional loans | 40.1 - 60.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	153,126	178,861
Originated Transitional loans | 60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	557,343	348,967
Originated Transitional loans | 80.1 - 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	57,434	101,513
Originated Transitional loans | Greater than 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	133	6,147
Originated SBC loans, at fair value
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	20,409	22,664
Originated SBC loans, at fair value | 20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	8,566	8,600
Originated SBC loans, at fair value | 60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	6,410	6,328
Originated SBC loans, at fair value | 80.1 - 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	5,433	7,736
Originated SBC loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	974,789	777,408
General allowance for loan losses	(25)	(11)
Originated SBC loans | 20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	49,038	48,259
Originated SBC loans | 40.1 - 60.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	409,055	271,311
Originated SBC loans | 60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	492,545	457,838
Originated SBC loans | 80.1 - 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	18,118
Originated SBC loans | Greater than 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	6,033
Originated SBA 7(a) loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	101,828	85,416
General allowance for loan losses	(545)	(433)
Originated SBA 7(a) loans | 0.0 - 20.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	147	393
Originated SBA 7(a) loans | 20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	4,924	3,200
Originated SBA 7(a) loans | 40.1 - 60.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	13,437	10,642
Originated SBA 7(a) loans | 60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	34,789	24,387
Originated SBA 7(a) loans | 80.1 - 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	14,798	16,473
Originated SBA 7(a) loans | Greater than 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	33,733	30,321
Originated Residential Agency loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	3,422	1,899
Originated Residential Agency loans | 40.1 - 60.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	111	111
Originated Residential Agency loans | 60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	1,410	952
Originated Residential Agency loans | 80.1 - 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	1,484	734
Originated Residential Agency loans | Greater than 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 417	$ 102

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses - Geographic and Collateral Concentration (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Concentration risk
Percentage of loan	100.00%	100.00%
Percentage of SBA loan	100.00%	100.00%
Offices of Physicians
Concentration risk
Percentage of SBA loan	13.60%	17.70%
Child Day Care Services
Concentration risk
Percentage of SBA loan	9.60%	9.90%
Eating Places
Concentration risk
Percentage of SBA loan	7.20%	5.40%
Hotels, Motels and Tourist Courts
Concentration risk
Percentage of SBA loan	7.90%	3.80%
Lodging
Concentration risk
Percentage of SBA loan	6.10%	10.10%
Veterinarians
Concentration risk
Percentage of SBA loan	5.00%	6.80%
Gasoline Service Stations
Concentration risk
Percentage of SBA loan	3.80%	2.30%
Funeral Service and Crematories
Concentration risk
Percentage of SBA loan	3.10%	2.30%
Grocery Stores
Concentration risk
Percentage of SBA loan	2.50%	3.80%
Auto
Concentration risk
Percentage of SBA loan	2.00%	2.70%
Other
Concentration risk
Percentage of SBA loan	39.20%	35.20%
Multi-family
Concentration risk
Percentage of loan	29.00%	23.30%
Retail
Concentration risk
Percentage of loan	20.60%	18.50%
Office
Concentration risk
Percentage of loan	14.10%	15.10%
SBA
Concentration risk
Percentage of loan	8.30%	18.10%
Mixed Use
Concentration risk
Percentage of loan	12.40%	9.60%
Industrial
Concentration risk
Percentage of loan	7.30%	8.20%
Lodging/Residential
Concentration risk
Percentage of loan	2.90%	2.40%
Other
Concentration risk
Percentage of loan	5.40%	4.80%
Geographical concentration
Concentration risk
Percentage of loan	100.00%	100.00%
Geographical concentration | California
Concentration risk
Percentage of loan	18.90%	14.10%
Geographical concentration | Texas
Concentration risk
Percentage of loan	13.10%	11.30%
Geographical concentration | Florida
Concentration risk
Percentage of loan	8.80%	10.80%
Geographical concentration | New York
Concentration risk
Percentage of loan	8.60%	6.30%
Geographical concentration | Georgia
Concentration risk
Percentage of loan	4.70%	5.30%
Geographical concentration | Arizona
Concentration risk
Percentage of loan	3.90%	5.00%
Geographical concentration | Illinois
Concentration risk
Percentage of loan	4.80%	3.80%
Geographical concentration | Pennsylvania
Concentration risk
Percentage of loan	2.50%	3.80%
Geographical concentration | North Carolina
Concentration risk
Percentage of loan	3.10%	3.70%
Geographical concentration | Washington
Concentration risk
Percentage of loan	2.50%	2.80%
Geographical concentration | Other
Concentration risk
Percentage of loan	29.10%	33.10%

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses - Allowance for loan losses by loan product and impairment methodology (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Allowance for loan losses
General	$ 2,193		$ 1,937
Specific	2,645		1,988
PCI	3,976		4,395
Ending Balance	8,814	$ 8,277	8,320	$ 9,666	$ 10,533	$ 11,746
Originated SBC loans
Allowance for loan losses
General	25		11
Specific	396
Ending Balance	421		11	98	227	637
Originated Transitional loans
Allowance for loan losses
General	367		353
Ending Balance	367	222	353	223	338
Acquired loans
Allowance for loan losses
General	784		608
Specific	1,162		1,012
PCI	3,126		3,432
Ending Balance	5,072	5,041	5,052	6,167	6,544	7,264
Acquired SBA 7(a) loans
Allowance for loan losses
General	406		532
Specific	938		823
PCI	850		963
Ending Balance	2,194	2,274	2,318	2,634	2,990	3,527
Originated SBA 7(a) loans
Allowance for loan losses
General	545		433
Specific	149		153
Ending Balance	$ 694	$ 740	$ 586	$ 544	$ 434	$ 318

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses - Investment Loans Allowance Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Allowance for loan losses
Beginning Balance	$ 8,277	$ 10,533	$ 8,320	$ 11,746
Provision for (Recoveries of) loan losses	1,348	(397)	1,866	(229)
Charge-offs and sales	(630)	(133)	(962)	(975)
Recoveries	(181)	(337)	(410)	(876)
Ending Balance	8,814	9,666	8,814	9,666
Originated SBC loans
Allowance for loan losses
Beginning Balance		227	11	637
Provision for (Recoveries of) loan losses	421	(129)	410	(370)
Charge-offs and sales				(169)
Ending Balance	421	98	421	98
Originated Transitional loans
Allowance for loan losses
Beginning Balance	222	338	353
Provision for (Recoveries of) loan losses	145	(115)	14	223
Ending Balance	367	223	367	223
Acquired loans
Allowance for loan losses
Beginning Balance	5,041	6,544	5,052	7,264
Provision for (Recoveries of) loan losses	161	90	495	230
Charge-offs and sales		(60)		(284)
Recoveries	(130)	(407)	(475)	(1,043)
Ending Balance	5,072	6,167	5,072	6,167
Acquired SBA 7(a) loans
Allowance for loan losses
Beginning Balance	2,274	2,990	2,318	3,527
Provision for (Recoveries of) loan losses	601	(353)	773	(538)
Charge-offs and sales	(630)	(73)	(962)	(522)
Recoveries, adjustments	(51)	70	65	167
Ending Balance	2,194	2,634	2,194	2,634
Originated SBA 7(a) loans
Allowance for loan losses
Beginning Balance	740	434	586	318
Provision for (Recoveries of) loan losses	(46)	110	108	226
Ending Balance	694	$ 544	694	$ 544
Acquired Transitional loans
Allowance for loan losses
Provision for (Recoveries of) loan losses	66		66
Ending Balance	$ 66		$ 66

Loans and Allowance for Loan _9

Loans and Allowance for Loan Losses - Investment Loans Impairment (Details) - Non - PCI Loans - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Impaired loans
Impaired loans with an allowance	$ 21,251		$ 21,251		$ 9,734
Impaired loans without an allowance	40,383		40,383		33,082
Total recorded carrying value of impaired loans	61,634		61,634		42,816
Allowance for loan losses related to impaired loans			(2,738)		(1,989)
Unpaid principal balance of impaired loans	68,796		68,796		49,128
Impaired loans on non-accrual status	61,634		61,634		42,816
Average carrying amount of impaired loans			65,455		$ 36,675
Interest income recognized on impaired loans	$ 328	$ 20	$ 934	$ 22

Loans and Allowance for Loan_10

Loans and Allowance for Loan Losses - TDR Accrual Status (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Troubled debt restructurings (TDRs)
Recorded carrying value modified loans classified as TDR	$ 14,547	$ 19,169
Allowance for loan losses on loans classified as TDRs	529	599
Carrying value of modified loans classified as TDRs
Carrying value of modified loans classified as TDRs on accrual status	4,360	9,071
Carrying value of modified loans classified as TDRs on non-accrual status	10,187	10,098
Total carrying value of modified loans classified as TDRs	14,547	19,169
SBC
Troubled debt restructurings (TDRs)
Recorded carrying value modified loans classified as TDR	5,113	1,825
Allowance for loan losses on loans classified as TDRs	256	321
Carrying value of modified loans classified as TDRs
Carrying value of modified loans classified as TDRs on accrual status	1,669	1,696
Carrying value of modified loans classified as TDRs on non-accrual status	3,444	129
Total carrying value of modified loans classified as TDRs	5,113	1,825
SBA
Troubled debt restructurings (TDRs)
Recorded carrying value modified loans classified as TDR	9,434	17,344
Allowance for loan losses on loans classified as TDRs	273	278
Carrying value of modified loans classified as TDRs
Carrying value of modified loans classified as TDRs on accrual status	2,691	7,375
Carrying value of modified loans classified as TDRs on non-accrual status	6,743	9,969
Total carrying value of modified loans classified as TDRs	$ 9,434	$ 17,344

Loans and Allowance for Loan_11

Loans and Allowance for Loan Losses - TDR Activity (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)loan	Jun. 30, 2018USD ($)loan	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)
Troubled debt restructurings (TDRs)
Number of loans permanently modified	5	11	15	22
Pre-modification recorded balance	$ 193	$ 918	$ 1,975	$ 2,038
Post-modification recorded balance	180	917	$ 1,932	$ 2,140
Number of loans that remain in default			6	1
Balance of loans that remain in default			$ 404
TDR Modifications including financial effects	$ 184	$ 888	$ 1,733	$ 2,087
SBC
Troubled debt restructurings (TDRs)
Number of loans permanently modified			1
Pre-modification recorded balance			$ 103
Post-modification recorded balance			$ 103
Number of loans that remain in default			1
Balance of loans that remain in default			$ 105
TDR Modifications including financial effects			$ 105
SBA
Troubled debt restructurings (TDRs)
Number of loans permanently modified	5	11	14	22
Pre-modification recorded balance	$ 193	$ 918	$ 1,872	$ 2,038
Post-modification recorded balance	180	917	$ 1,829	$ 2,140
Number of loans that remain in default			5	1
Balance of loans that remain in default			$ 299
TDR Modifications including financial effects	184	888	1,628	$ 2,087
Term Extension
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	184	865	1,411	2,000
Term Extension | SBA
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	$ 184	865	1,411	2,000
Foreclosure
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects		23	322	87
Foreclosure | SBC
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects			105
Foreclosure | SBA
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects		$ 23	$ 217	$ 87

Loans and Allowance for Loan_12

Loans and Allowance for Loan Losses - Investment Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Acquired loans
Allowance for loan losses on loans in consolidated VIEs	$ (8,814)	$ (8,277)	$ (8,320)	$ (9,666)	$ (10,533)	$ (11,746)
Non - PCI Loans
Acquired loans
Unpaid principal balance	3,014,416		2,361,155
Accretable discount	(29,363)		(31,533)
Loans, held-for-investment	2,985,053		2,329,622
Allowance for loan losses on loans in consolidated VIEs	(4,839)		(3,925)
Loans, held-for-investment	2,980,214		2,325,697
PCI Loans
Acquired loans
Unpaid principal balance	82,419		92,463
Non-accretable discount	(6,908)		(6,040)
Accretable discount	(12,176)	$ (14,092)	(16,023)	$ (19,485)	$ (20,994)	$ (23,749)
Loans, held-for-investment	63,335		70,400
Allowance for loan losses on loans in consolidated VIEs	(3,975)		(4,395)
Loans, held-for-investment	$ 59,360		$ 66,005

Loans and Allowance for Loan_13

Loans and Allowance for Loan Losses - Investment Loans Value and Yield Activity (Details) - PCI Loans - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Accretable yield
Beginning accretable discount- PCI loans	$ 14,092	$ 20,994	$ 16,023	$ 23,749
Purchases/Originations	0	514		514
Sales	(996)	(838)	(1,275)	(1,494)
Accretion	(1,069)	(1,266)	(1,986)	(2,975)
Other	36	(67)	177	344
Transfers	113	148	(763)	(653)
Ending accretable discount- PCI loans	$ 12,176	$ 19,485	$ 12,176	$ 19,485

Fair Value Measurements - Finan

Fair Value Measurements - Financial Instruments Carried at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets:
Loans, held for sale, at fair value	$ 177,507	$ 115,258
Derivative instruments, at fair value	3,670	2,070
Residential mortgage servicing rights, at fair value	85,658	93,065
Liabilities:
Derivative instruments, at fair value	9,032	3,625
Recurring
Assets:
Cash held in money market funds		586
Loans, held for sale, at fair value	177,507	115,258
Loans, net at fair value	20,409	22,664
Mortgage backed securities, at fair value	99,407	91,937
Derivative instruments, at fair value	3,670	2,070
Residential mortgage servicing rights, at fair value	85,658	93,065
Total assets	386,651	325,580
Liabilities:
Derivative instruments, at fair value	9,032	3,625
Contingent consideration		1,207
Total liabilities	9,032	4,832
Recurring | Level 1
Assets:
Cash held in money market funds		586
Total assets		586
Recurring | Level 2 inputs
Assets:
Loans, held for sale, at fair value	177,507	115,258
Mortgage backed securities, at fair value	62,752	79,789
Derivative instruments, at fair value		294
Total assets	240,259	195,341
Liabilities:
Derivative instruments, at fair value	9,032	3,625
Total liabilities	9,032	3,625
Recurring | Level 3 inputs
Assets:
Loans, net at fair value	20,409	22,664
Mortgage backed securities, at fair value	36,655	12,148
Derivative instruments, at fair value	3,670	1,776
Residential mortgage servicing rights, at fair value	85,658	93,065
Total assets	$ 146,392	129,653
Liabilities:
Contingent consideration		1,207
Total liabilities		$ 1,207

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Fair Value (Details) - Level 3 inputs - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Loans Receivable
Changes in fair value of assets
Beginning Balance	$ 22,595	$ 40,430	$ 22,664	$ 188,150	$ 188,150
Realized gains (losses), net	(165)	(52)	(166)	(55)
Unrealized gains (losses), net	144	(651)	105	(1,413)
Originations				150
Sales	(2,141)		(2,141)
Principal payments	(24)	(2,038)	(53)	(6,704)
Transfer from loans, held-for-investment, net		(3,335)		(145,774)
Ending Balance	20,409	34,354	20,409	34,354	22,664
Total unrealized gain (loss)			200		300
MBS
Changes in fair value of assets
Beginning Balance	27,200	22,736	12,148	8,063	8,063
Accreted discount, net	44	63	46	84
Realized gains (losses), net	127	148	107	271
Unrealized gains (losses), net	200	2,636	289	2,866
Purchases	9,593		9,593
Sales / Principal payments	(567)	(449)	(669)	(966)
Assets transferred out of Level 3	58	(25,008)	15,141	(10,192)
Ending Balance	36,655	126	36,655	126	12,148
Total unrealized gain (loss)			2,700		100
Mortgage servicing rights
Changes in fair value of liabilities
Total unrealized gain (loss)			2,700		8,600
Derivatives
Changes in fair value of assets
Beginning Balance	2,483	3,470	1,776	1,827	1,827
Unrealized gains (losses), net	1,187	(638)	1,894	1,005
Ending Balance	$ 3,670	2,832	3,670	2,832	1,776
Total unrealized gain (loss)			3,700		1,800
Contingent Consideration
Changes in fair value of liabilities
Beginning Balance		10,732	1,207	10,016	10,016
Earn-out payments		(8,967)	(1,207)	(8,333)
Amortization and adjustment for earn-out payments		(79)		3
Ending Balance		$ 1,686		$ 1,686	1,207
Total unrealized gain (loss)			$ 0		$ 0

Fair Value Measurements - Valua

Fair Value Measurements - Valuation and Inputs, at FV (Details) $ in Thousands	Jun. 30, 2019USD ($)item	Dec. 31, 2018USD ($)$ / sharesitem
Fair value inputs, quantitative information
Debt instrument, measurement input | item	99.69
Recurring
Fair value inputs, quantitative information
Asset, fair value	$ 386,651	$ 325,580
Liabilities, fair value	9,032	4,832
Recurring | Level 3 inputs
Fair value inputs, quantitative information
Asset, fair value	146,392	129,653
Liabilities, fair value		1,207
Loans Receivable | Recurring | Level 3 inputs | Third Party Mark
Fair value inputs, quantitative information
Asset, fair value	$ 20,409	$ 22,664
Debt Instrument, Measurement Input [Extensible List]	Third Party Mark	Third Party Mark
Loans Receivable | Recurring | Level 3 inputs | Third Party Mark | Measurement Input, Share Price | Minimum
Fair value inputs, quantitative information
Debt instrument, measurement input | item	99.69	99.41
Loans Receivable | Recurring | Level 3 inputs | Third Party Mark | Measurement Input, Share Price | Maximum
Fair value inputs, quantitative information
Debt instrument, measurement input | item	109.24	105.21
Loans Receivable | Recurring | Level 3 inputs | Third Party Mark | Measurement Input, Share Price | Weighted Average
Fair value inputs, quantitative information
Debt instrument, measurement input | item	101.65	101.52
MBS | Recurring | Level 3 inputs | Third Party Mark
Fair value inputs, quantitative information
Asset, fair value	$ 36,540	$ 12,033
Debt Instrument, Measurement Input [Extensible List]	Third Party Mark	Third Party Mark
MBS | Recurring | Level 3 inputs | Third Party Mark | Measurement Input, Share Price | Minimum
Fair value inputs, quantitative information
Debt instrument, measurement input | item	21.78	44.65
MBS | Recurring | Level 3 inputs | Third Party Mark | Measurement Input, Share Price | Maximum
Fair value inputs, quantitative information
Debt instrument, measurement input | item	97.50	97.50
MBS | Recurring | Level 3 inputs | Third Party Mark | Measurement Input, Share Price | Weighted Average
Fair value inputs, quantitative information
Debt instrument, measurement input	76.89	70.92
MBS | Recurring | Level 3 inputs | Transaction Price
Fair value inputs, quantitative information
Asset, fair value	$ 115	$ 115
Debt Instrument, Measurement Input [Extensible List]	Transaction Price	Transaction Price
MBS | Recurring | Level 3 inputs | Transaction Price | Measurement Input, Share Price | Minimum
Fair value inputs, quantitative information
Debt instrument, measurement input | item	99	99
MBS | Recurring | Level 3 inputs | Transaction Price | Measurement Input, Share Price | Maximum
Fair value inputs, quantitative information
Debt instrument, measurement input | item	99	99
MBS | Recurring | Level 3 inputs | Transaction Price | Measurement Input, Share Price | Weighted Average
Fair value inputs, quantitative information
Debt instrument, measurement input	99	99
Mortgage servicing rights | Recurring | Level 3 inputs | Discounted Cash Flow
Fair value inputs, quantitative information
Asset, fair value	$ 85,658	$ 93,065
Debt Instrument, Measurement Input [Extensible List]	Discounted Cash Flow	Discounted Cash Flow
Contingent Consideration | Recurring | Level 3 inputs | Discounted Cash Flow
Fair value inputs, quantitative information
Asset, fair value		$ 1,207
Debt Instrument, Measurement Input [Extensible List]		Discounted Cash Flow

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities, Not at FV (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets:
Receivable from third parties	$ 2,763	$ 8,888
Liabilities:
Senior secured notes, net	179,086	178,870
Carrying Amount
Assets:
Loans, held-for-investment	3,039,574	2,391,702
Servicing rights	29,103	26,997
Total assets	3,068,677	2,418,699
Liabilities:
Secured borrowings	988,868	834,547
Securitized debt obligations of consolidated VIEs	1,567,113	905,367
Senior secured notes, net	179,086	178,870
Guaranteed loan financing	28,445	229,678
Convertible note, net	110,506	109,979
Corporate debt, net	48,795	48,457
Total liabilities	2,922,813	2,306,898
Carrying Amount | Level 3 inputs
Assets:
Due from servicers and accrued interest	20,300	14,500
Receivable from third parties	2,800	8,900
Liabilities:
Payable to related parties and accrued interest payable	15,300	16,800
Fair Value
Assets:
Loans, held-for-investment	3,141,194	2,434,185
Servicing rights	33,797	28,441
Total assets	3,174,991	2,462,626
Liabilities:
Secured borrowings	988,868	834,547
Securitized debt obligations of consolidated VIEs	1,606,181	918,536
Senior secured notes, net	189,683	176,981
Guaranteed loan financing	30,761	236,804
Convertible note, net	112,972	101,581
Corporate debt, net	50,619	48,457
Total liabilities	$ 2,979,084	$ 2,316,906

Mortgage Backed Securities (Det

Mortgage Backed Securities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Mortgage Backed Securities
Fair Value	$ 99,407	$ 91,937
MBS
Mortgage Backed Securities
Weighted Average Interest Rate	4.80%	4.70%
Principal Balance	$ 128,153	$ 117,848
Amortized Cost	92,922	87,163
Fair Value	99,407	91,937
Gross Unrealized Gains	6,540	4,856
Gross Unrealized Losses	$ (55)	$ (82)
Mortgage Backed Securities Weighted Average Interest Rate
After five years through ten years (as percent)	11.00%	10.60%
After ten years (as percent)	4.70%	4.50%
Mortgage Backed Securities Principal Balance
After five years through ten years	$ 2,881	$ 3,406
After ten years	125,272	114,442
Mortgage Backed Securities Amortized Cost
After five years through ten years	2,638	3,103
After ten years	90,284	84,060
Mortgage Backed Securities Estimated Fair Value
After five years through ten years	2,937	3,520
After ten years	$ 96,470	$ 88,417
Freddie Mac Loans
Mortgage Backed Securities
Weighted Average Interest Rate	4.70%	4.50%
Principal Balance	$ 91,784	$ 97,066
Amortized Cost	67,203	70,819
Fair Value	73,045	75,591
Gross Unrealized Gains	$ 5,842	4,826
Gross Unrealized Losses		$ (54)
Commercial Loans
Mortgage Backed Securities
Weighted Average Interest Rate	5.30%	5.50%
Principal Balance	$ 36,253	$ 20,666
Amortized Cost	25,603	16,228
Fair Value	26,247	16,231
Gross Unrealized Gains	698	30
Gross Unrealized Losses	$ (54)	$ (27)
Tax Liens
Mortgage Backed Securities
Weighted Average Interest Rate	6.00%	6.00%
Principal Balance	$ 116	$ 116
Amortized Cost	116	116
Fair Value	115	115
Gross Unrealized Losses	$ (1)	$ (1)

Servicing rights (Details)

Servicing rights (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Servicing rights
Unpaid Principal Amount					$ 1,617,314	$ 1,470,532
Carrying Value	$ 29,103		$ 26,997		29,103	26,997
Total servicing rights					114,761	120,062	$ 111,274
Servicing rights activity at amortized cost
Beginning net carrying value at amortized cost			26,997
Ending net carrying value at amortized cost	29,103		29,103
Residential
Servicing rights
Unpaid Principal Amount					7,776,329	7,466,679
Servicing rights activity at fair value
Beginning net carrying value at fair value	88,218	$ 81,591	93,065	$ 72,295
Additions due to loans sold, servicing retained	5,861	5,449	9,454	11,155
Loan pay-offs	(2,082)	(1,784)	(3,394)	(3,082)
Unrealized gains (losses)	(6,339)	298	(13,467)	5,186
Ending net carrying value at fair value	85,658	85,554	85,658	85,554
Freddie Mac
Servicing rights
Unpaid Principal Amount					1,051,751	964,377
Carrying Value	10,986	6,704	10,248	5,059	11,103	10,248	8,774
Servicing rights activity at amortized cost
Beginning net carrying value at amortized cost	10,986	6,704	10,248	5,059
Additions due to loans sold, servicing retained	680	2,452	1,947	4,390
Amortization	(563)	(382)	(1,092)	(675)
Ending net carrying value at amortized cost	11,103	8,774	11,103	8,774
Freddie Mac | Residential
Servicing rights
Unpaid Principal Amount					2,402,396	2,267,943
Servicing rights activity at fair value
Beginning net carrying value at fair value			28,917
Ending net carrying value at fair value	28,047		28,047
SBA
Servicing rights
Unpaid Principal Amount					565,563	506,155
Carrying Value	16,448	16,318	16,749	16,684	18,000	$ 16,749	16,946
Servicing rights activity at amortized cost
Beginning net carrying value at amortized cost	16,448	16,318	16,749	16,684
Additions due to loans sold, servicing retained	1,842	1,113	2,775	1,805
Acquisitions		362		362
Amortization	(838)	(853)	(1,660)	(1,739)
Recovery (Impairment)	548	6	136	(166)
Ending net carrying value at amortized cost	18,000	16,946	18,000	16,946
SBA | Freddie Mac
Servicing rights
Carrying Value	29,103	25,720	29,103	25,720	$ 29,103		$ 25,720
Servicing rights activity at amortized cost
Ending net carrying value at amortized cost	$ 29,103	$ 25,720	$ 29,103	$ 25,720

Servicing rights - Estimated va

Servicing rights - Estimated valuation (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Minimum | Freddie Mac
Servicing rights, valuation assumptions
Forward prepayment assumptions	0.00%	0.00%
Forward default rate	0.00%	0.00%
Discount rate	6.00%	12.00%
Servicing expense (as a percent)	0.20%	0.20%
Maximum | Freddie Mac
Servicing rights, valuation assumptions
Forward prepayment assumptions	35.00%	35.00%
Forward default rate	2.00%	2.00%
Discount rate	6.00%	12.00%
Servicing expense (as a percent)	0.20%	0.20%
Weighted Average | Freddie Mac
Servicing rights, valuation assumptions
Forward prepayment assumptions	5.20%	5.00%
Forward default rate	2.00%	1.30%
Discount rate	6.00%	12.00%
Servicing expense (as a percent)	0.20%	0.20%
SBA | Minimum
Servicing rights, valuation assumptions
Forward prepayment assumptions	4.60%	3.80%
Forward default rate	0.00%	0.00%
Discount rate	9.90%	12.00%
Servicing expense (as a percent)	0.40%	0.40%
SBA | Maximum
Servicing rights, valuation assumptions
Forward prepayment assumptions	21.30%	20.20%
Forward default rate	11.90%	12.20%
Discount rate	9.90%	12.00%
Servicing expense (as a percent)	0.40%	0.40%
SBA | Weighted Average
Servicing rights, valuation assumptions
Forward prepayment assumptions	8.60%	9.20%
Forward default rate	7.50%	6.40%
Discount rate	9.90%	12.00%
Servicing expense (as a percent)	0.40%	0.40%

Servicing rights - Assumptions

Servicing rights - Assumptions (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Freddie Mac
Adverse changes to key assumptions on the carrying amount of the servicing rights
Prepayment rate (10% adverse change)	$ (109)	$ (63)
Prepayment rate (20% adverse change)	(216)	(124)
Default rate (10% adverse change)	(17)	(11)
Default rate (20% adverse change)	(33)	(22)
Discount rate (10% adverse change)	(312)	(490)
Discount rate (20% adverse change)	(613)	(791)
SBA
Adverse changes to key assumptions on the carrying amount of the servicing rights
Prepayment rate (10% adverse change)	(529)	(470)
Prepayment rate (20% adverse change)	(1,031)	(915)
Default rate (10% adverse change)	(94)	(63)
Default rate (20% adverse change)	(186)	(125)
Discount rate (10% adverse change)	(597)	(579)
Discount rate (20% adverse change)	$ (1,157)	$ (1,118)

Servicing rights - Amortization

Servicing rights - Amortization (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Future amortization expense for the servicing rights
2019	$ 2,831
2020	5,135
2021	4,495
2022	3,932
2023	3,414
Thereafter	9,296
Total	$ 29,103	$ 26,997

Servicing rights - Residential

Servicing rights - Residential mortgage servicing rights (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Servicing rights
Unpaid Principal Amount	$ 1,617,314	$ 1,470,532
Residential
Servicing rights
Unpaid Principal Amount	7,776,329	7,466,679
Fair Value	85,658	93,065	$ 88,218	$ 85,554	$ 81,591	$ 72,295
Possible impact of adverse changes to key assumptions
Prepayment rate (10% adverse change)	(3,671)	(3,281)
Prepayment rate (20% adverse change)	(7,058)	(6,330)
Discount rate (10% adverse change)	(3,257)	(3,716)
Discount rate (20% adverse change)	(6,280)	(7,159)
Cost of servicing (10% adverse change)	(1,606)	(1,683)
Cost of servicing (20% adverse change)	(3,212)	(3,365)
Fannie Mae | Residential
Servicing rights
Unpaid Principal Amount	3,065,213	2,848,435
Fair Value	32,530	34,562
Ginnie Mae | Residential
Servicing rights
Unpaid Principal Amount	2,308,720	2,350,301
Fair Value	25,081	29,586
Freddie Mac
Servicing rights
Unpaid Principal Amount	1,051,751	964,377
Possible impact of adverse changes to key assumptions
Prepayment rate (10% adverse change)	(109)	(63)
Prepayment rate (20% adverse change)	(216)	(124)
Discount rate (10% adverse change)	(312)	(490)
Discount rate (20% adverse change)	(613)	(791)
Freddie Mac | Residential
Servicing rights
Unpaid Principal Amount	2,402,396	2,267,943
Fair Value	$ 28,047	$ 28,917
Minimum | Residential
Servicing rights, valuation assumptions
Forward prepayment assumptions	6.60%	6.10%
Discount rate	9.00%	9.00%
Servicing expense	$ 70	$ 70
Minimum | Freddie Mac
Servicing rights, valuation assumptions
Forward prepayment assumptions	0.00%	0.00%
Discount rate	6.00%	12.00%
Servicing expense (as a percent)	0.20%	0.20%
Maximum | Residential
Servicing rights, valuation assumptions
Forward prepayment assumptions	16.10%	13.90%
Discount rate	11.00%	11.10%
Servicing expense	$ 85	$ 85
Maximum | Freddie Mac
Servicing rights, valuation assumptions
Forward prepayment assumptions	35.00%	35.00%
Discount rate	6.00%	12.00%
Servicing expense (as a percent)	0.20%	0.20%
Weighted Average | Residential
Servicing rights, valuation assumptions
Forward prepayment assumptions	9.90%	8.40%
Discount rate	9.60%	9.70%
Servicing expense	$ 75	$ 75
Weighted Average | Freddie Mac
Servicing rights, valuation assumptions
Forward prepayment assumptions	5.20%	5.00%
Discount rate	6.00%	12.00%
Servicing expense (as a percent)	0.20%	0.20%

Residential mortgage banking _3

Residential mortgage banking activities and variable expenses on residential mortgage banking activities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Residential mortgage banking activities
Realized and unrealized gains and losses of residential mortgage loans held for sale, at fair value	$ 13,886	$ 11,795	$ 24,085	$ 18,074
Creation of new mortgage servicing rights, net of payoffs	3,779	3,665	6,060	8,073
Loan origination fee income on residential mortgage loans	2,624	2,663	4,367	4,838
Unrealized gains (loss) on IRLCs and other derivatives	732	(868)	1,096	293
Residential mortgage banking activities	21,021	17,255	35,608	31,279
Variable expenses on residential mortgage banking activities	$ (13,501)	$ (7,493)	$ (22,677)	$ (9,783)

Secured Borrowings (Details)

Secured Borrowings (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Secured borrowings and promissory note
Pledged Assets Carrying Value	$ 1,260,298	$ 1,112,522
Carrying Value, Secured borrowings	988,868	834,547
Secured borrowings
Secured borrowings and promissory note
Maximum Facility Size	1,870,767
Pledged Assets Carrying Value	1,260,298	1,112,522
Carrying Value, Secured borrowings	988,868	834,547
Borrowings under credit facilities
Secured borrowings and promissory note
Maximum Facility Size	681,658
Pledged Assets Carrying Value	456,621	279,012
Carrying Value, Secured borrowings	$ 376,485	$ 199,315
Weighted average interest rate of borrowings (as a percent)	4.20%	4.60%
Borrowings under repurchase agreements
Secured borrowings and promissory note
Maximum Facility Size	$ 1,189,109
Pledged Assets Carrying Value	803,677	$ 833,510
Carrying Value, Secured borrowings	$ 612,383	$ 635,232
Weighted average interest rate of borrowings (as a percent)	5.00%	4.00%
Commercial | JPMorgan | Borrowings under credit facilities
Secured borrowings and promissory note
Maximum Facility Size	$ 225,000
Pledged Assets Carrying Value	157,334	$ 85,393
Carrying Value, Secured borrowings	$ 127,983	68,417
Commercial | JPMorgan | Borrowings under credit facilities | Minimum | One month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.00%
Commercial | JPMorgan | Borrowings under credit facilities | Maximum | One month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.50%
Commercial | JPMorgan | Borrowings under repurchase agreements
Secured borrowings and promissory note
Maximum Facility Size	$ 200,000
Pledged Assets Carrying Value	96,413	144,337
Carrying Value, Secured borrowings	$ 61,302	96,343
Commercial | JPMorgan | Borrowings under repurchase agreements | Minimum | One month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.25%
Commercial | JPMorgan | Borrowings under repurchase agreements | Maximum | One month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	4.00%
Commercial | Keybank | Borrowings under credit facilities
Secured borrowings and promissory note
Maximum Facility Size	$ 125,000
Pledged Assets Carrying Value	35,684	23,322
Carrying Value, Secured borrowings	$ 35,037	22,973
Commercial | Keybank | Borrowings under credit facilities | One month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	1.50%
Commercial | East West Bank | Borrowings under credit facilities
Secured borrowings and promissory note
Maximum Facility Size	$ 50,000
Pledged Assets Carrying Value	54,017	37,255
Carrying Value, Secured borrowings	$ 41,113	27,443
Commercial | East West Bank | Borrowings under credit facilities | Minimum | Administrative agent's prime rate
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	(0.821%)
Commercial | East West Bank | Borrowings under credit facilities | Maximum | Administrative agent's prime rate
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	0.29%
Commercial | Rabobank | Borrowings under credit facilities
Secured borrowings and promissory note
Pricing, stated rate (as a percent)	4.22%
Maximum Facility Size	$ 14,500
Pledged Assets Carrying Value	19,950
Carrying Value, Secured borrowings	$ 12,681
Commercial | FCB | Borrowings under credit facilities
Secured borrowings and promissory note
Pricing, stated rate (as a percent)	2.75%
Maximum Facility Size	$ 2,158
Pledged Assets Carrying Value	2,686	3,219
Carrying Value, Secured borrowings	2,114	2,974
Commercial | Deutsche Bank | Borrowings under repurchase agreements
Secured borrowings and promissory note
Maximum Facility Size	300,000
Pledged Assets Carrying Value	188,840	310,797
Carrying Value, Secured borrowings	$ 144,900	239,972
Commercial | Deutsche Bank | Borrowings under repurchase agreements | Minimum | Three Month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.30%
Commercial | Deutsche Bank | Borrowings under repurchase agreements | Maximum | Three Month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.80%
Commercial | Citibank | Borrowings under repurchase agreements
Secured borrowings and promissory note
Maximum Facility Size	$ 500,000
Pledged Assets Carrying Value	256,871	230,140
Carrying Value, Secured borrowings	$ 217,072	194,117
Commercial | Citibank | Borrowings under repurchase agreements | Minimum | One month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	1.875%
Commercial | Citibank | Borrowings under repurchase agreements | Maximum | One month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.125%
Residential | East West Bank | Borrowings under credit facilities
Secured borrowings and promissory note
Maximum Facility Size	$ 50,000
Pledged Assets Carrying Value	60,577	63,479
Carrying Value, Secured borrowings	$ 38,300	8,500
Residential | East West Bank | Borrowings under credit facilities | One month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.50%
Residential | Comerica | Borrowings under credit facilities
Secured borrowings and promissory note
Maximum Facility Size	$ 125,000
Pledged Assets Carrying Value	79,024	35,860
Carrying Value, Secured borrowings	$ 74,580	40,231
Residential | Comerica | Borrowings under credit facilities | Minimum | One month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	1.75%
Residential | Associated Bank | Borrowings under credit facilities
Secured borrowings and promissory note
Maximum Facility Size	$ 40,000
Pledged Assets Carrying Value	19,265	13,653
Carrying Value, Secured borrowings	$ 18,165	15,907
Residential | Associated Bank | Borrowings under credit facilities | One month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	1.75%
Residential | Origin Bank | Borrowings under credit facilities
Secured borrowings and promissory note
Maximum Facility Size	$ 50,000
Pledged Assets Carrying Value	28,084	16,831
Carrying Value, Secured borrowings	26,512	12,870
MBS | Borrowings under repurchase agreements
Secured borrowings and promissory note
Pledged Assets Carrying Value	85,871	112,552
MBS | JPMorgan | Borrowings under repurchase agreements
Secured borrowings and promissory note
Maximum Facility Size	42,907
Pledged Assets Carrying Value	66,806	39,882
Carrying Value, Secured borrowings	$ 42,907	24,881
MBS | JPMorgan | Borrowings under repurchase agreements | Minimum
Secured borrowings and promissory note
Pricing, stated rate (as a percent)	3.67%
MBS | JPMorgan | Borrowings under repurchase agreements | Maximum
Secured borrowings and promissory note
Pricing, stated rate (as a percent)	5.10%
MBS | Deutsche Bank | Borrowings under repurchase agreements
Secured borrowings and promissory note
Maximum Facility Size	$ 39,524
Pledged Assets Carrying Value	59,331	24,536
Carrying Value, Secured borrowings	$ 39,524	17,425
MBS | Deutsche Bank | Borrowings under repurchase agreements | Minimum
Secured borrowings and promissory note
Pricing, stated rate (as a percent)	4.17%
MBS | Deutsche Bank | Borrowings under repurchase agreements | Maximum
Secured borrowings and promissory note
Pricing, stated rate (as a percent)	4.59%
MBS | Bank of America | Borrowings under repurchase agreements
Secured borrowings and promissory note
Maximum Facility Size	$ 45,863
Pledged Assets Carrying Value	54,249
Carrying Value, Secured borrowings	$ 45,863
MBS | Bank of America | Borrowings under repurchase agreements | Minimum
Secured borrowings and promissory note
Pricing, stated rate (as a percent)	3.03%
MBS | Bank of America | Borrowings under repurchase agreements | Maximum
Secured borrowings and promissory note
Pricing, stated rate (as a percent)	3.38%
MBS | RBC Bank | Borrowings under repurchase agreements
Secured borrowings and promissory note
Maximum Facility Size	$ 60,815
Pledged Assets Carrying Value	81,167	83,818
Carrying Value, Secured borrowings	$ 60,815	$ 62,494
MBS | RBC Bank | Borrowings under repurchase agreements | Minimum
Secured borrowings and promissory note
Pricing, stated rate (as a percent)	3.73%
MBS | RBC Bank | Borrowings under repurchase agreements | Maximum
Secured borrowings and promissory note
Pricing, stated rate (as a percent)	4.17%

Secured Borrowings - Collateral

Secured Borrowings - Collateral Pledged (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Collateral pledged
Pledged Assets Carrying Value	$ 1,260,298	$ 1,112,522
Secured borrowings
Collateral pledged
Pledged Assets Carrying Value	1,260,298	1,112,522
Borrowings under credit facilities
Collateral pledged
Pledged Assets Carrying Value	456,621	279,012
Borrowings under repurchase agreements
Collateral pledged
Pledged Assets Carrying Value	803,677	833,510
Loans, net | Borrowings under credit facilities
Collateral pledged
Pledged Assets Carrying Value	376,094	215,533
Loans, net | Borrowings under repurchase agreements
Collateral pledged
Pledged Assets Carrying Value	542,124	685,274
Mortgage servicing rights | Borrowings under credit facilities
Collateral pledged
Pledged Assets Carrying Value	60,577	63,479
Real estate | Borrowings under credit facilities
Collateral pledged
Pledged Assets Carrying Value	19,950
MBS | Borrowings under repurchase agreements
Collateral pledged
Pledged Assets Carrying Value	85,871	112,552
Retained interest in assets of consolidated VIEs | Borrowings under repurchase agreements
Collateral pledged
Pledged Assets Carrying Value	$ 175,682	$ 35,684

Senior secured notes, Convert_3

Senior secured notes, Convertible notes, and Corporate debt, net (Details)	Apr. 27, 2018USD ($)	Aug. 09, 2017USD ($)$ / shares	Jun. 30, 2019USD ($)Ditem	Dec. 31, 2018USD ($)	Jan. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Senior secured notes, Convertible notes, and Corporate debt
Unamortized deferred financing costs			$ (1,666,000)	$ (2,564,000)
Total Senior secured notes, net			179,086,000	178,870,000
Total Senior unsecured notes, net			48,795,000	48,457,000
Total Convertible notes, net			110,506,000	$ 109,979,000
Contractual maturities of the Senior Secured Notes, Convertible Notes, and Corporate debt
2021			48,795,000
2022			179,086,000
2023			110,506,000
Long-term Debt, Total			338,387,000
Senior Secured Notes
Senior secured notes, Convertible notes, and Corporate debt
Debt instrument, face value			$ 180,000,000
Interest rate (as a percent)			7.50%
Unamortized premium - Senior secured notes			$ 2,034,000
Unamortized deferred financing costs			(2,948,000)
Convertible Notes
Senior secured notes, Convertible notes, and Corporate debt
Debt instrument, face value		$ 115,000,000	$ 115,000,000
Interest rate (as a percent)		7.00%	7.00%
Conversion ratio		1.4997
Principal amount of notes for conversion		$ 25
Initial conversion price | $ / shares		$ 16.67
Principal amount of the notes to be redeemed (as a percent)		100.00%
Threshold period of specified consecutive trading days within which common stock price to conversion price of convertible debt instruments must exceed threshold percentage for a specified number of trading days to trigger conversion feature | D			30
Threshold period of specified consecutive trading days within which the common stock price, used in a calculation with with the conversion rate, the result of which must exceed the threshold percentage			5 days
Specified period of time used to calculate average closing market price of common stock to be used as a factor in determining potential trigger of conversion feature			10 days
Gross carrying value of convertible notes		$ 112,700,000
Gross carrying value of the equity component		$ 2,300,000
Unamortized discount - Convertible notes			$ (1,629,000)
Unamortized deferred financing costs			(2,865,000)
Total Convertible notes, net			$ 110,506,000
Convertible Notes | Minimum
Senior secured notes, Convertible notes, and Corporate debt
Percentage of common stock price to conversion price of convertible debt instruments to determine eligibility of conversion			120.00%
Threshold number of specified trading days that common stock price to conversion price of convertible debt instruments must exceed threshold percentage within a specified consecutive trading period to trigger conversion feature | item			20
The threshold percentage that per share value of distributions exceeds the average market price which may trigger the conversion feature			10.00%
Convertible Notes | Maximum
Senior secured notes, Convertible notes, and Corporate debt
Threshold percentage of the trading price of the convertible debt instrument to the product of the conversion rate and the closing stock price during any five consecutive trading day period			98.00%
Corporate Debt
Senior secured notes, Convertible notes, and Corporate debt
Debt instrument, face value	$ 50,000,000		$ 50,000,000
Interest rate (as a percent)	6.50%		6.50%
Principal amount of the notes to be redeemed (as a percent)	101.00%
Unamortized deferred financing costs			$ (1,205,000)
Total Convertible notes, net			48,795,000
Total carrying amount of debt components			338,387,000
Total carrying amount of conversion option of equity components recorded in additional paid-in capital			$ 1,629,000
Corporate Debt | On or after April 30, 2019 and before April 30, 2020
Senior secured notes, Convertible notes, and Corporate debt
Principal amount of the notes to be redeemed (as a percent)	101.00%
Corporate Debt | On or after April 30, 2020
Senior secured notes, Convertible notes, and Corporate debt
Principal amount of the notes to be redeemed (as a percent)	100.00%
ReadyCap Holdings LLC | Senior Secured Notes
Senior secured notes, Convertible notes, and Corporate debt
Debt instrument, face value					$ 40,000,000	$ 140,000,000
Interest rate (as a percent)					7.50%	7.50%
Yield-to-maturity (as a percent)					6.50%

Guaranteed Loan Financing (Deta

Guaranteed Loan Financing (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Ending balance	$ 28,445	$ 229,678
Guaranteed loan financing
Ending balance	$ 28,445	$ 229,678
Guaranteed loan financing | Weighted Average
Interest Rates	3.66%	4.46%
Guaranteed loan financing | Minimum
Interest Rates	3.46%	1.70%
Guaranteed loan financing | Maximum
Interest Rates	8.25%	8.00%

Guaranteed Loan Financing - Mat

Guaranteed Loan Financing - Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Contractual maturities of total guaranteed loan financing outstanding
2019	$ 154
2020	460
2021	531
2022	149
2023	421
Thereafter	26,730
Total	28,445
Guaranteed loan financing
Contractual maturities of total guaranteed loan financing outstanding
Loans held-for-investment pledged as security against guaranteed loan financing	$ 37,000	$ 249,200

Variable Interest Entities an_3

Variable Interest Entities and Securitization Activities - VIE Securitized Debt Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Variable interest entities
Current Principal Balance	$ 1,617,314	$ 1,470,532
Carrying value	1,567,113	905,367
Consolidated VIEs
Variable interest entities
Current Principal Balance	1,600,082	926,761
Carrying value	$ 1,567,113	$ 905,367
Weighted Average Rate	3.90%	4.00%
Waterfall Victoria Mortgage Trust 2011-SBC2
Variable interest entities
Current Principal Balance	$ 9,383	$ 12,226
Carrying value	$ 9,383	$ 12,226
Weighted Average Rate	5.50%	5.40%
ReadyCap Lending Small Business Trust 2015-1
Variable interest entities
Current Principal Balance		$ 3,397
Carrying value		$ 1,180
Weighted Average Rate	3.80%	3.40%
Sutherland Commercial Mortgage Loans 2017-SBC6
Variable interest entities
Current Principal Balance	$ 55,919	$ 69,764
Carrying value	$ 54,939	$ 68,574
Weighted Average Rate	3.40%	3.30%
Sutherland Commercial Mortgage Trust 2018-SBC7
Variable interest entities
Current Principal Balance	$ 173,542	$ 205,451
Carrying value	$ 171,071	$ 202,491
Weighted Average Rate	4.70%	4.70%
Sutherland Commercial Mortgage Trust 2019-SBC8
Variable interest entities
Current Principal Balance	$ 246,218
Carrying value	$ 243,377
Weighted Average Rate	2.90%
ReadyCap Commercial Mortgage Trust 2014-1
Variable interest entities
Current Principal Balance	$ 29,198	$ 36,108
Carrying value	$ 29,210	$ 36,129
Weighted Average Rate	5.60%	4.50%
ReadyCap Commercial Mortgage Trust 2015-2
Variable interest entities
Current Principal Balance	$ 90,904	$ 110,497
Carrying value	$ 87,721	$ 106,755
Weighted Average Rate	4.30%	4.20%
ReadyCap Commercial Mortgage Trust 2016-3
Variable interest entities
Current Principal Balance	$ 44,280	$ 63,945
Carrying value	$ 42,594	$ 62,053
Weighted Average Rate	4.10%	3.70%
ReadyCap Commercial Mortgage Trust 2018-4
Variable interest entities
Current Principal Balance	$ 138,003	$ 144,701
Carrying value	$ 133,974	$ 140,314
Weighted Average Rate	3.90%	3.90%
ReadyCap Commercial Mortgage Trust 2019-5
Variable interest entities
Current Principal Balance	$ 349,556
Carrying value	$ 338,850
Weighted Average Rate	4.10%
Ready Capital Mortgage Financing 2017-FL1
Variable interest entities
Current Principal Balance	$ 21,500	$ 63,615
Carrying value	$ 20,991	$ 61,902
Weighted Average Rate	5.40%	3.70%
Ready Capital Mortgage Financing 2018-FL2
Variable interest entities
Current Principal Balance	$ 173,675	$ 217,057
Carrying value	$ 171,138	$ 213,743
Weighted Average Rate	3.70%	3.40%
Ready Capital Mortgage Financing 2019-FL3
Variable interest entities
Current Principal Balance	$ 267,904
Carrying value	$ 263,865
Weighted Average Rate	3.80%

Variable Interest Entities an_4

Variable Interest Entities and Securitization Activities - Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Assets
Cash and cash equivalents	$ 41,925	$ 54,406	$ 105,833
Restricted cash	38,019	28,921	$ 15,108
Real estate acquired in settlement of loans, held for sale	65,834	7,787
Accrued interest	6,882	7,253
Total assets	2,108,710	1,251,057
Liabilities
Securitized debt obligations of consolidated VIEs, net	1,567,113	905,367
Consolidated VIEs
Assets
Cash and cash equivalents	45
Restricted cash	22,051	11,643
Loans, net	2,057,307	1,220,974
Real estate acquired in settlement of loans, held for sale		176
Accrued interest	11,077	6,750
Due from servicers	18,230	11,514
Total assets	2,108,710	1,251,057
Liabilities
Securitized debt obligations of consolidated VIEs, net	1,567,113	905,367
Total liabilities	$ 1,567,113	$ 905,367

Variable Interest Entities an_5

Variable Interest Entities and Securitization Activities - Assets of Unconsolidated VIEs (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Carrying amount
Mortgage backed securities, at fair value	$ 99,407	$ 91,937
Investment in unconsolidated joint ventures	47,551	33,438
Unconsolidated VIEs
Carrying amount
Mortgage backed securities, at fair value	82,610	75,591
Investment in unconsolidated joint ventures	47,551	33,438
Total assets in unconsolidated VIEs carrying amount	130,161	109,029
Maximum Exposure to Loss
Mortgage backed securities, at fair value	82,610	75,591
Investment in unconsolidated joint venture	47,551	33,438
Total assets in unconsolidated VIEs maximum exposure to loss	$ 130,161	$ 109,029

Interest Income and Interest _3

Interest Income and Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest income
Total loans	$ 54,237	$ 39,456	$ 100,439	$ 74,322
Total loans, held for sale, at fair value	1,282	1,495	2,351	2,896
Mortgage backed securities, at fair value	1,515	907	2,997	1,789
Total interest income	57,034	41,858	105,787	79,007
Interest expense
Secured borrowings	(11,540)	(8,747)	(21,449)	(15,969)
Securitized debt obligations of consolidated VIEs	(17,038)	(8,288)	(33,539)	(15,491)
Guaranteed loan financing	(518)	(2,956)	(3,228)	(5,770)
Senior secured note	(3,481)	(3,487)	(6,965)	(6,726)
Convertible note	(2,188)	(2,187)	(4,376)	(4,373)
Corporate debt	(988)	(742)	(1,972)	(742)
Total interest expense	(35,753)	(26,407)	(71,529)	(49,071)
Net interest income before provision for loan losses	21,281	15,451	34,258	29,936
Acquired SBA 7(a) loans
Interest income
Total loans	4,288	7,968	11,469	15,840
Acquired loans
Interest income
Total loans	15,012	12,707	25,265	22,166
Total loans, held for sale, at fair value	37	77	73	90
Originated Transitional loans
Interest income
Total loans	17,056	10,038	31,241	18,950
Originated SBC loans, at fair value
Interest income
Total loans	354	497	721	2,525
Originated SBC loans
Interest income
Total loans	11,898	7,204	24,180	12,944
Originated SBA 7(a) loans
Interest income
Total loans	2,836	1,030	4,764	1,873
Acquired Transitional loans
Interest income
Total loans	2,777		2,777
Originated Residential Agency loans
Interest income
Total loans	16	12	22	24
Total loans, held for sale, at fair value	1,047	987	1,823	1,864
Originated Freddie Mac loans
Interest income
Total loans, held for sale, at fair value	$ 198	$ 431	$ 455	$ 942

Derivative Instruments (Details

Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Notional Amount	$ 905,864		$ 905,864		$ 705,935
Asset Derivatives Fair Value	3,670		3,670		2,070
Liabilities Derivatives Fair Value	(9,032)		(9,032)		(3,625)
Derivative gain (loss)
Net Realized Gain (Loss)	(3,405)	$ (951)	(4,200)	$ 3,603
Unrealized Gain (Loss)	(4,452)	261	(3,806)	84
Total change in OCI for period	(6,579)		(6,997)
Designated as Hedging
Derivative gain (loss)
Total income statement impact	59		100
Derivatives - effective portion reclassified from AOCI to income	59		100
Derivatives- effective portion recorded in OCI	(6,638)		(7,097)
Total change in OCI for period	(6,579)		(6,997)
Designated as Hedging | Interest Rate Risk
Derivative gain (loss)
Total income statement impact	59		100
Derivatives - effective portion reclassified from AOCI to income	59		100
Derivatives- effective portion recorded in OCI	(6,638)		(7,097)
Total change in OCI for period	(6,579)		(6,997)
Credit default swaps
Notional Amount	15,000		15,000		15,000
Asset Derivatives Fair Value					295
Liabilities Derivatives Fair Value	(59)		(59)
Derivative gain (loss)
Unrealized Gain (Loss)	(31)	198	(354)	206
Interest Rate Swap Agreement
Liabilities Derivatives Fair Value	(8,973)		(8,973)		(3,625)
Derivative gain (loss)
Net Realized Gain (Loss)	(3,405)	(951)	(4,200)	3,603
Unrealized Gain (Loss)	(5,153)	931	(4,549)	(415)
Interest Rate Swap Agreement | Not Designated as Hedging | Interest Rate Risk
Notional Amount	304,500		304,500		411,811
Liabilities Derivatives Fair Value	(1,798)		(1,798)		(2,349)
Interest Rate Swap Agreement | Designated as Hedging | Interest Rate Risk
Notional Amount	297,251		297,251		134,325
Liabilities Derivatives Fair Value	(7,175)		(7,175)		(1,276)
Residential mortgage banking activities interest rate swaps
Derivative gain (loss)
Unrealized Gain (Loss)	(456)	(230)	(799)	(712)
Interest rate lock commitments (IRLCs)
Notional Amount	289,113		289,113		144,799
Asset Derivatives Fair Value	3,670		3,670		$ 1,775
Derivative gain (loss)
Unrealized Gain (Loss)	$ 1,188	$ (638)	$ 1,896	$ 1,005

Real Estate Acquired in Settl_3

Real Estate Acquired in Settlement of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 29, 2019	Dec. 31, 2018
Real estate acquired
Other REO	$ 6,694		$ 7,787
Total Real estate acquired in settlement of loans, held for sale	65,834		7,787
Mixed Use
Real estate acquired
Other REO	279		279
Multi-family
Real estate acquired
Other REO			207
Office
Real estate acquired
Other REO	5,739		6,719
Retail
Real estate acquired
Other REO	191		191
SBA
Real estate acquired
Other REO	303		23
Single family
Real estate acquired
Other REO	182		$ 368
Owens Realty Mortgage, Inc.
Real estate acquired
Acquired ORM portfolio	59,140	$ 67,973
Owens Realty Mortgage, Inc. | Land
Real estate acquired
Acquired ORM portfolio	8,711
Owens Realty Mortgage, Inc. | Lodging/Residential
Real estate acquired
Acquired ORM portfolio	10,711
Owens Realty Mortgage, Inc. | Mixed Use
Real estate acquired
Acquired ORM portfolio	17,478
Owens Realty Mortgage, Inc. | Office
Real estate acquired
Acquired ORM portfolio	1,256
Owens Realty Mortgage, Inc. | Retail
Real estate acquired
Acquired ORM portfolio	19,950
Owens Realty Mortgage, Inc. | Services
Real estate acquired
Acquired ORM portfolio	$ 1,034

Related Party Transactions (Det

Related Party Transactions (Details) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2018USD ($)loan	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Related-party transactions
Amount unpaid		$ 2,495		$ 2,495		$ 2,580
Purchase of loans, held-for-investment				501,417	$ 270,309
Investment in unconsolidated joint ventures		47,551		$ 47,551		$ 33,438
Management Agreement
Related-party transactions
Term of agreement				3 years
Automatically renewal period				1 year
Minimum notice period for termination				180 days
Termination fee multiplier				3
Period immediately preceding the termination used as basis for determination of the termination fee due				24 months
Management Fee
Related-party transactions
Fee percentage for results up to threshold				1.50%
Fee threshold				$ 500,000
Fee percentage for results in excess of threshold				1.00%
Incentive Distribution
Related-party transactions
Incentive multiplier				15.00%
Core earnings period				12 months
Percentage of Incentive fee multiplied by the weighted average of issue price				8.00%
The period over which core earnings must exceed the minimum threshold per the terms of the agreement				48 months
Minimum core earnings threshold				$ 0
Minimum | Management Agreement
Related-party transactions
Independent director votes required for approval				66.70%
Manager | Management Fee
Related-party transactions
Fees		2,500	$ 2,000	$ 4,500	4,000
Amount unpaid		2,500	2,000	2,500	2,000
Manager | Incentive Distribution
Related-party transactions
Fees			300		700
Amount unpaid			300		300
Manager | Expense Reimbursement
Related-party transactions
Amount unpaid		400	900	400	900
Reimbursable expenses		$ 1,100	$ 800	$ 1,900	$ 1,700
Waterfall Olympic Master Fund LP
Related-party transactions
Number of loans acquired | loan	75
Purchase of loans, held-for-investment	$ 51,600
Unpaid principal balance	$ 51,800

Other Assets and Other Liabil_3

Other Assets and Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Other assets:
Due from servicers	$ 13,454	$ 7,284
Accrued interest	6,882	7,253
Intangible assets	2,759	2,915
Deferred financing costs	1,666	2,564
Deferred tax asset	22,744	18,084
Deferred loan exit fees	10,188	8,668
Other	10,706	8,679
Total other assets	68,399	55,447
Accounts payable and other accrued liabilities:
Deferred tax liability	20,094	19,972
Accrued salaries, wages and commissions	10,929	19,925
Accrued interest payable	12,981	14,244
Servicing principal and interest payable	7,874	10,582
Repair and denial reserve	6,318	5,524
Payable to related parties	2,495	2,580
Unapplied cash	1,219	340
Other accounts payable and accrued liabilities	11,769	1,552
Total accounts payable and other accrued liabilities	73,679	74,719
Loan indemnification reserve
Loan indemnification reserve	$ 2,000	$ 1,700

Other Income and Operating Ex_3

Other Income and Operating Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other income
Origination income	$ 1,709	$ 1,358	$ 2,517	$ 2,511
Release/ (Increase) of repair and denial reserve	(76)		(165)	(110)
Other	1,159	468	1,340	759
Total other income	2,792	1,826	3,692	3,160
Other operating expenses
Origination costs	2,734	2,573	3,923	4,429
Technology expense	1,057	783	2,158	1,566
Charge off of real estate acquired in settlement of loans	375	981	680	1,000
Rent expense	1,103		1,794
Rent expense		563		1,085
Recruiting, training and travel expenses	592	577	1,179	1,280
Loan acquisition costs	(5)	934	105	934
Other	2,229	2,505	5,108	6,633
Total other operating expenses	$ 8,085	$ 8,916	$ 14,947	$ 16,927

Stockholders' Equity - Common S

Stockholders' Equity - Common Stock Dividends (Details) - $ / shares	Jul. 31, 2019	Jun. 11, 2019	Apr. 30, 2019	Mar. 12, 2019	Jan. 31, 2019	Dec. 12, 2018	Oct. 31, 2018	Sep. 11, 2018	Jul. 31, 2018	Jun. 12, 2018	Apr. 30, 2018	Mar. 14, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Dividends
Dividend per Share, declared		$ 0.40		$ 0.40		$ 0.40		$ 0.40		$ 0.40		$ 0.37	$ 0.40	$ 0.40	$ 0.80	$ 0.77
Dividend per Share, paid	$ 0.40		$ 0.40		$ 0.40		$ 0.40		$ 0.40		$ 0.37

Stockholders' Equity - Manager

Stockholders' Equity - Manager Equity Incentive (Details)	6 Months Ended
	Jun. 30, 2019
Stockholders’ Equity
Percentage of shares of common stock issued and outstanding on a fully diluted basis	5.00%

Stockholders' Equity - RSU acti

Stockholders' Equity - RSU activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Weighted-average grant date fair value (per share)
Stock-based compensation	$ 300		$ 200	$ 1,000	$ 400
Non-cash compensation expense not yet charged to net income				$ 2,600	$ 1,600
RSUs and RSAs
Number of shares
Outstanding, Beginning balance	177,891	118,904		118,904
Granted (in shares)	21,356	111,097
Vested (in shares)	(19,766)	(52,110)
Forfeited (in shares)	(5,746)
Outstanding, Ending balance	173,735	177,891		173,735
Grant date fair value
Beginning balance	$ 2,712	$ 1,661		$ 1,661
Granted	310	1,784
Vested	(293)	(733)
Forfeited	(82)
Ending balance	$ 2,647	$ 2,712		$ 2,647
Weighted-average grant date fair value (per share)
Beginning balance	$ 15.25	$ 13.97		$ 13.97
Granted (in per share)	14.51	16.06
Vested (in per share)	14.84	14.06
Forfeited (in per share)	14.21
Ending balance	$ 15.24	$ 15.25		$ 15.24
RSU
Number of shares
Fully vested units not yet issued as common stock				23,104

Earnings per Share of Common _3

Earnings per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Continuing Operations
Net income	$ 11,245	$ 15,884	$ 41,693	$ 34,402
Less: Income attributable to non-controlling interest	276	588	1,257	1,252
Less: Income attributable to participating shares	79	51	161	112
Basic earnings	10,890	15,245	40,275	33,038
Diluted Earnings
Net income	11,245	15,884	41,693	34,402
Less: Income attributable to non-controlling interest	276	588	1,257	1,252
Less: Income attributable to participating shares	79	51	161	112
Diluted earnings	$ 10,890	$ 15,245	$ 40,275	$ 33,038
Basic — Average shares outstanding	44,425,598	32,073,717	38,524,023	32,055,110
Effect of dilutive securities — Unvested participating shares	5,665	19,033	3,294	14,389
Diluted — Average shares outstanding	44,431,263	32,092,750	38,527,317	32,069,499
Earnings Per Share Attributable to RC Common Stockholders:
Basic	$ 0.25	$ 0.48	$ 1.05	$ 1.03
Diluted	$ 0.25	$ 0.48	$ 1.05	$ 1.03
Conversion spread value on Convertible Notes			$ 0
Impact of Convertible Notes on diluted EPS			$ 0

Earnings per Common Share - Ope

Earnings per Common Share - Operating Partnership Units (Details) - Operating Partnership - Noncontrolling Interests - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Noncontrolling interest
Number of common shares issued for OP unit redeemed by a noncontrolling interest unit holder	1
Units held by noncontrolling interest unit holders	1,117,169	1,117,169

Offsetting Assets and Liabili_3

Offsetting Assets and Liabilities - Assets (Details) $ in Thousands	Dec. 31, 2018USD ($)
Effect of offsetting of the Company’s recognized assets
Gross Amounts of Recognized Assets	$ 295
Assets Presented in the Consolidated Balance Sheets	295
Cash Collateral Received	295
Credit default swaps
Effect of offsetting of the Company’s recognized assets
Gross Amounts of Recognized Assets	295
Assets Presented in the Consolidated Balance Sheets	295
Cash Collateral Received	$ 295

Offsetting Assets and Liabili_4

Offsetting Assets and Liabilities - Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Effect of offsetting recognized liabilities, Derivative
Gross Amounts of Recognized Liabilities, Derivative	$ 9,032	$ 3,625
Effect of offsetting recognized liabilities, Total
Gross Amounts of Recognized Liabilities, Total	997,900	838,172
Liabilities Presented in the Consolidated Balance Sheets, Total	997,900	838,172
Financial Instruments, Total	988,868	834,547
Cash Collateral Paid, Total	9,032	3,625
Interest Rate Swap Agreement
Effect of offsetting recognized liabilities, Derivative
Gross Amounts of Recognized Liabilities, Derivative	8,973	3,625
Liabilities Presented in the Consolidated Balance Sheets, Derivative	8,973	3,625
Cash Collateral Paid, Derivative	8,973	3,625
Credit default swaps
Effect of offsetting recognized liabilities, Derivative
Gross Amounts of Recognized Liabilities, Derivative	59
Liabilities Presented in the Consolidated Balance Sheets, Derivative	59
Cash Collateral Paid, Derivative	59
Secured borrowings
Effect of offsetting recognized liabilities, Borrowings
Gross Amounts of Recognized Liabilities, Borrowings	988,868	834,547
Liabilities Presented in the Consolidated Balance Sheets, Borrowings	988,868	834,547
Financial Instruments, Borrowings	$ 988,868	$ 834,547

Commitments, Contingencies an_2

Commitments, Contingencies and Indemnifications (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Commitments, contingencies and indemnifications
Commitments to originate loans	$ 261.6	$ 124
Unfunded loan commitments
Commitments, contingencies and indemnifications
Unfunded loan commitments, loans held-for-investment	81.8	161.7
Unfunded loan commitments, loans held for sale at fair value	$ 9.1	$ 4.9

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
REIT requirements and income tax information
Percentage of nondeductible excise tax the entity would be subject to if they fail to meet the minimum distributions requirement			4.00%
Income tax expense (benefit)	$ (2,956)	$ 665	$ (5,959)	$ 3,228
Minimum
REIT requirements and income tax information
Percentage of taxable income distributed in the form of qualifying distributions			90.00%
Maximum
REIT requirements and income tax information
Percentage of taxable income distributed in the form of qualifying distributions			100.00%

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)segment	Jun. 30, 2018USD ($)
Segment reporting
Number of Reportable Segments | segment			4
Interest income	$ 57,034	$ 41,858	$ 105,787	$ 79,007
Interest expense	(35,753)	(26,407)	(71,529)	(49,071)
Net interest income before provision for loan losses	21,281	15,451	34,258	29,936
Provision for loan losses	(1,348)	397	(1,866)	229
Net interest income after provision for loan losses	19,933	15,848	32,392	30,165
Non-interest income
Residential mortgage banking activities	21,021	17,255	35,608	31,279
Net realized gain on financial instruments	6,255	8,620	13,537	20,851
Net unrealized gain (loss) on financial instruments	(7,006)	4,457	(13,918)	7,464
Other income	2,792	1,826	3,692	3,160
Servicing income	7,811	6,627	14,563	13,037
Income on unconsolidated joint ventures	2,083	1,503	5,012	7,243
Gain on bargain purchase			30,728
Total non-interest income	32,956	40,288	89,222	83,034
Non-interest expense
Employee compensation and benefits	(12,509)	(14,272)	(23,957)	(29,592)
Allocated employee compensation and benefits from related party	(1,250)	(1,200)	(2,103)	(2,400)
Variable expenses on residential mortgage banking activities	(13,501)	(7,493)	(22,677)	(9,783)
Professional fees	(1,586)	(2,401)	(3,415)	(5,049)
Management fees – related party	(2,495)	(2,036)	(4,492)	(4,049)
Incentive fees – related party		(269)		(676)
Loan servicing expense	(4,571)	(3,000)	(8,219)	(7,093)
Merger related expenses	(603)		(6,070)
Other operating expenses	(8,085)	(8,916)	(14,947)	(16,927)
Total non-interest expense	(44,600)	(39,587)	(85,880)	(75,569)
Net income (loss) before provision for income taxes	8,289	16,549	35,734	37,630
Total Assets	3,840,323	2,812,980	3,840,323	2,812,980
Corporate- Other
Non-interest income
Other income	50		65
Gain on bargain purchase			30,728
Total non-interest income	50		30,793
Non-interest expense
Employee compensation and benefits	(840)	(173)	(1,664)	(314)
Allocated employee compensation and benefits from related party	(1,125)	(1,080)	(1,893)	(2,160)
Professional fees	(828)	(1,287)	(1,763)	(2,641)
Management fees – related party	(2,495)	(2,036)	(4,492)	(4,049)
Incentive fees – related party		(269)		(676)
Loan servicing expense	(42)		(77)
Merger related expenses	(603)		(6,070)
Other operating expenses	(361)	(680)	(1,561)	(1,383)
Total non-interest expense	(6,294)	(5,525)	(17,520)	(11,223)
Net income (loss) before provision for income taxes	(6,244)	(5,525)	13,273	(11,223)
Total Assets	61,430	20,200	61,430	20,200
Loan Acquisitions
Segment reporting
Interest income	18,208	12,970	28,881	22,655
Interest expense	(10,602)	(6,277)	(18,307)	(12,106)
Net interest income before provision for loan losses	7,606	6,693	10,574	10,549
Provision for loan losses	(544)	80	(677)	(192)
Net interest income after provision for loan losses	7,062	6,773	9,897	10,357
Non-interest income
Net realized gain on financial instruments	453	(52)	404	94
Net unrealized gain (loss) on financial instruments	(661)	848	(680)	801
Other income	957	111	1,025	268
Servicing income		5	1	10
Income on unconsolidated joint ventures	2,083	1,503	5,012	7,243
Total non-interest income	2,832	2,415	5,762	8,416
Non-interest expense
Employee compensation and benefits	(26)	(141)	(27)	(313)
Allocated employee compensation and benefits from related party	(125)	(120)	(210)	(240)
Professional fees	(47)	(150)	(217)	(467)
Loan servicing expense	(1,117)	(764)	(1,918)	(1,565)
Other operating expenses	(882)	(1,998)	(1,304)	(2,816)
Total non-interest expense	(2,197)	(3,173)	(3,676)	(5,401)
Net income (loss) before provision for income taxes	7,697	6,015	11,983	13,372
Total Assets	1,158,351	707,943	1,158,351	707,943
SBC Originations
Segment reporting
Interest income	30,639	18,891	58,828	36,751
Interest expense	(21,401)	(15,320)	(42,068)	(27,790)
Net interest income before provision for loan losses	9,238	3,571	16,760	8,961
Provision for loan losses	(350)	73	(309)	109
Net interest income after provision for loan losses	8,888	3,644	16,451	9,070
Non-interest income
Net realized gain on financial instruments	1,627	3,532	5,167	12,231
Net unrealized gain (loss) on financial instruments	(76)	4,130	734	1,763
Other income	1,661	1,356	2,447	2,615
Servicing income	461	330	897	582
Total non-interest income	3,673	9,348	9,245	17,191
Non-interest expense
Employee compensation and benefits	(1,774)	(2,285)	(4,034)	(4,922)
Professional fees	(313)	(325)	(614)	(714)
Loan servicing expense	(1,475)	(886)	(2,690)	(1,525)
Other operating expenses	(2,712)	(3,287)	(4,829)	(5,967)
Total non-interest expense	(6,274)	(6,783)	(12,167)	(13,128)
Net income (loss) before provision for income taxes	6,287	6,209	13,529	13,133
Total Assets	2,055,751	1,296,872	2,055,751	1,296,872
SBA Originations, Acquisitions, and Servicing
Segment reporting
Interest income	7,124	8,998	16,233	17,713
Interest expense	(2,300)	(3,972)	(8,790)	(7,592)
Net interest income before provision for loan losses	4,824	5,026	7,443	10,121
Provision for loan losses	(454)	244	(880)	312
Net interest income after provision for loan losses	4,370	5,270	6,563	10,433
Non-interest income
Net realized gain on financial instruments	4,175	5,140	7,966	8,526
Net unrealized gain (loss) on financial instruments	71	(819)	(504)	(286)
Other income	39	291	53	168
Servicing income	1,818	1,464	2,833	2,716
Total non-interest income	6,103	6,076	10,348	11,124
Non-interest expense
Employee compensation and benefits	(4,424)	(3,138)	(8,192)	(6,393)
Professional fees	(169)	(524)	(356)	(1,003)
Loan servicing expense	(260)	211	(117)	287
Other operating expenses	(2,076)	(970)	(3,126)	(2,080)
Total non-interest expense	(6,929)	(4,421)	(11,791)	(9,189)
Net income (loss) before provision for income taxes	3,544	6,925	5,120	12,368
Total Assets	261,326	489,938	261,326	489,938
Residential Mortgage Banking
Segment reporting
Interest income	1,063	999	1,845	1,888
Interest expense	(1,450)	(838)	(2,364)	(1,583)
Net interest income before provision for loan losses	(387)	161	(519)	305
Net interest income after provision for loan losses	(387)	161	(519)	305
Non-interest income
Residential mortgage banking activities	21,021	17,255	35,608	31,279
Net unrealized gain (loss) on financial instruments	(6,340)	298	(13,468)	5,186
Other income	85	68	102	109
Servicing income	5,532	4,828	10,832	9,729
Total non-interest income	20,298	22,449	33,074	46,303
Non-interest expense
Employee compensation and benefits	(5,445)	(8,535)	(10,040)	(17,650)
Variable expenses on residential mortgage banking activities	(13,501)	(7,493)	(22,677)	(9,783)
Professional fees	(229)	(115)	(465)	(224)
Loan servicing expense	(1,677)	(1,561)	(3,417)	(4,290)
Other operating expenses	(2,054)	(1,981)	(4,127)	(4,681)
Total non-interest expense	(22,906)	(19,685)	(40,726)	(36,628)
Net income (loss) before provision for income taxes	(2,995)	2,925	(8,171)	9,980
Total Assets	$ 303,465	$ 298,027	$ 303,465	$ 298,027

Supplemental Financial Data (De

Supplemental Financial Data (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Supplemental Financial Data
Realized gains	$ 6,255	$ 8,620	$ 13,537	$ 20,851
Unrealized gains	(7,006)	4,457	(13,918)	7,464
Income before provision for income taxes	8,289	16,549	35,734	37,630
Income on unconsolidated joint ventures	$ 2,083	1,503	$ 5,012	7,243
WFLLA LLC
Supplemental Financial Data
Ownership percentage	50.00%		50.00%
Girod HoldCo, LLC
Supplemental Financial Data
Interest income	$ 3,678	4,418	$ 3,678	4,418
Realized gains	430	2,135	430	2,135
Unrealized gains	5,091	1,242	5,091	1,242
Servicing expense and other	(1,460)	(1,760)	(1,460)	(1,760)
Income before provision for income taxes	7,739	6,035	7,739	6,035
WFLLA LLC
Supplemental Financial Data
Interest income	1,835	2,205	1,835	2,205
Realized gains	215	1,065	215	1,065
Unrealized gains	2,540	620	2,540	620
Servicing expense and other	(733)	(884)	(733)	(884)
Income before provision for income taxes	3,857	3,006	3,857	3,006
Income on unconsolidated joint ventures	$ 1,929	$ 1,503	$ 4,858	$ 7,243
WFLLA LLC | Girod HoldCo, LLC
Supplemental Financial Data
Ownership percentage	49.90%		49.90%
Other Unconsolidated Joint Ventures
Supplemental Financial Data
Income on unconsolidated joint ventures	$ 154		$ 154

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent event	1 Months Ended
	Jul. 31, 2019USD ($)
Subsequent Event
Master repurchase agreement	$ 100,000,000
Interest rate lower than interest rate for any mortgage note	(0.75%)
Interest rate floor	4.00%
Senior notes
Subsequent Event
Debt instrument, face value	$ 57,500,000
Interest rate (as a percent)	6.20%