Ready Capital (RC) 10-K 12 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Mar. 05, 2020	Jun. 30, 2019
Document and Entity Information
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	READY CAPITAL CORPORATION
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 471
Entity Common Stock, Shares Outstanding		52,027,326
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Central Index Key	0001527590
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 67,928	$ 54,406
Restricted cash	51,728	28,921
Loans, net (including $20,212 and $22,664 held at fair value)	1,727,984	1,193,392
Loans, held-for-sale, at fair value	188,077	115,258
Mortgage backed securities, at fair value	92,466	91,937
Loans eligible for repurchase from Ginnie Mae	77,953	74,180
Investment in unconsolidated joint ventures	58,850	33,438
Purchased future receivables, net	43,265
Derivative instruments	2,814	2,070
Servicing rights (including $91,174 and $93,065 held at fair value)	121,969	120,062
Real estate, held for sale	58,573	7,787
Other assets	106,925	64,335
Total Assets	4,977,018	3,036,843
Liabilities
Secured borrowings	1,189,392	834,547
Convertible notes, net	111,040	109,979
Senior secured notes, net	179,289	178,870
Corporate debt, net	149,986	48,457
Guaranteed loan financing	485,461	229,678
Liabilities for loans eligible for repurchase from Ginnie Mae	77,953	74,180
Derivative instruments	5,250	3,625
Dividends payable	21,302	13,346
Accounts payable and other accrued liabilities	97,407	74,719
Total Liabilities	4,132,234	2,472,768
Stockholders’ Equity
Common stock, $0.0001 par value, 500,000,000 shares authorized, 51,127,326 and 32,105,112 shares issued and outstanding, respectively	5	3
Additional paid-in capital	822,837	540,478
Retained earnings	8,746	5,272
Accumulated other comprehensive loss	(6,176)	(922)
Total Ready Capital Corporation equity	825,412	544,831
Non-controlling interests	19,372	19,244
Total Stockholders’ Equity	844,784	564,075
Total Liabilities and Stockholders’ Equity	4,977,018	3,036,843
Consolidated VIEs
Assets
Total Assets	2,378,486	1,251,057
Liabilities
Secured borrowings	$ 1,815,154	$ 905,367

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Parenthetical information
Loan receivable allowance	$ 20,212	$ 22,664
Servicing rights held at fair value	$ 91,174	$ 93,065
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized capital	500,000,000	500,000,000
Common stock, issued	51,127,326	32,105,112
Common stock, outstanding	51,127,326	32,105,112

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 11, 2019	Sep. 10, 2019	Jun. 11, 2019	Mar. 12, 2019	Dec. 12, 2018	Sep. 11, 2018	Jun. 12, 2018	Mar. 14, 2018	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED STATEMENTS OF INCOME
Interest income																	$ 229,916	$ 169,499	$ 138,305
Interest expense																	(151,880)	(109,238)	(74,646)
Net interest income before provision for loan losses																	78,036	60,261	63,659
Provision for loan losses																	(3,684)	(1,701)	(2,363)
Net interest income after provision for loan losses									$ 22,319	$ 19,640	$ 19,933	$ 12,460	$ 13,833	$ 14,562	$ 15,848	$ 14,317	74,352	58,560	61,296
Non-interest income
Residential mortgage banking activities																	83,539	59,852	83,437
Net realized gain on financial instruments and real estate owned																	28,958	38,409	19,329
Net unrealized gain (loss) on financial instruments																	(18,790)	4,853	7,000
Servicing income, net of amortization and impairment of $5,811, $5,509 and $6,020																	30,665	27,075	22,994
Income on purchased future receivables, net of allowance for doubtful accounts of $5,082																	2,362
Income on unconsolidated joint ventures																	6,088	12,148	1,048
Other income																	11,078	5,586	7,410
Gain on bargain purchase																	30,728
Total non-interest income									45,422	39,984	32,956	56,266	22,125	42,761	40,288	42,747	174,628	147,923	141,218
Non-interest expense
Employee compensation and benefits																	(51,237)	(56,602)	(55,039)
Allocated employee compensation and benefits from related party																	(5,473)	(4,200)	(3,843)
Variable expenses on residential mortgage banking activities																	(51,760)	(22,228)	(41,737)
Professional fees																	(7,434)	(6,999)	(8,921)
Management fees – related party																	(9,578)	(8,176)	(8,059)
Incentive fees – related party																	(106)	(1,143)
Loan servicing expense																	(17,976)	(15,545)	(10,323)
Merger related expenses																	(7,750)
Other operating expenses																	(33,162)	(28,747)	(26,939)
Total non-interest expense									(48,755)	(49,842)	(44,600)	(41,279)	(29,209)	(38,859)	(39,587)	(35,983)	(184,476)	(143,640)	(154,861)
Income before provision for income taxes																	64,504	62,843	47,653
Income tax benefit (provision)																	10,552	(1,386)	(1,839)
Net income									20,934	12,427	11,245	30,450	9,486	17,569	15,884	18,518	75,056	61,457	45,814
Less: Net income attributable to non-controlling interest																	2,088	2,199	2,524
Net income attributable to Ready Capital Corporation									$ 20,428	$ 12,104	$ 10,969	$ 29,467	$ 9,177	$ 16,931	$ 15,296	$ 17,854	$ 72,968	$ 59,258	$ 43,290
Earnings per basic common share
Earnings per common share - basic									$ 0.43	$ 0.27	$ 0.25	$ 0.90	$ 0.30	$ 0.53	$ 0.48	$ 0.56	$ 1.72	$ 1.84	$ 1.38
Earnings per diluted common share
Earnings per common share - basic									0.43	0.27	0.25	0.90	0.30	0.53	0.48	0.56	1.72	1.84	1.38
Earnings per common share - diluted									0.43	0.27	0.25	0.90	0.30	0.53	0.48	0.56	$ 1.72	$ 1.84	$ 1.38
Weighted-average shares outstanding
Basic																	42,011,750	32,085,975	31,350,102
Diluted																	42,047,648	32,102,184	31,351,611
Dividends declared per share of common stock	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.37	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.37	$ 1.60	$ 1.57	$ 1.48

CONSOLIDATED STATEMENTS OF IN_2

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED STATEMENTS OF INCOME
Amortization and impairment of servicing rights	$ 5,811	$ 5,509	$ 6,020
Net of allowance for doubtful accounts	$ 5,082

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 75,056	$ 61,457	$ 45,814
Other comprehensive income (loss) - net change by component
Net change in hedging derivatives (cash flow hedges)	(5,724)
Net change in hedging derivatives (cash flow hedges)		(954)
Foreign currency translation adjustment	289
Other comprehensive income (loss)	(5,435)	(954)
Comprehensive income (loss)	69,621	60,503	45,814
Less: Comprehensive income attributable to non-controlling interests	(1,907)	(2,167)	(2,524)
Comprehensive income attributable to Ready Capital Corporation	$ 67,714	$ 58,336	$ 43,290

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, 2016	$ 513,097	$ 3	$ 513,295	$ (201)		$ 39,005	$ 552,102
Balance at beginning of period (in shares) at Dec. 31, 2016		30,549,084
Increase (Decrease) in Stockholders' Equity
Dividend declared on common stock	(46,474)			(46,474)			(46,474)
Dividend declared on OP units						(2,570)	(2,570)
Offering costs	(68)		(68)			(2)	(70)
Distributions, net						(56)	(56)
Equity component of 2017 convertible note issuance	2,065		2,065			74	2,139
Stock-based compensation	582		582				582
Conversion of OP units into common stock	19,581		19,581			(19,581)
Conversion of OP units into common stock (in shares)		1,171,494
Shares issued in exchange of litigation settlement	4,000		4,000				4,000
Shares issued in exchange of litigation settlement (in shares)		275,862
Net income	43,290			43,290		2,524	45,814
Balance at end of period at Dec. 31, 2017	536,073	$ 3	539,455	(3,385)		19,394	555,467
Balance at end of period (in shares) at Dec. 31, 2017		31,996,440
Increase (Decrease) in Stockholders' Equity
Dividend declared on common stock	(50,601)			(50,601)			(50,601)
Dividend declared on OP units						(1,766)	(1,766)
Equity issuances	86		86				86
Equity issuances (shares)		5,000
Offering costs	(103)		(103)				(103)
Contributions, net						38	38
Equity component of 2017 convertible note issuance	(322)		(322)			(12)	(334)
Stock-based compensation	447		447				447
Stock-based compensation (shares)		48,617
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	338		338				338
Manager incentive fee paid in stock (in shares)		21,397
Net income	59,258			59,258		2,199	61,457
Other comprehensive loss	(922)				$ (922)	(32)	(954)
Balance at end of period at Dec. 31, 2018	544,831	$ 3	540,478	5,272	(922)	19,244	564,075
Balance at end of period (in shares) at Dec. 31, 2018		32,105,112
Increase (Decrease) in Stockholders' Equity
Dividend declared on common stock	(69,494)			(69,494)			(69,494)
Dividend declared on OP units						(1,788)	(1,788)
Shares issued pursuant to merger transactions	189,611	$ 1	189,610				189,611
Common stock issued in connection with merger transactions		12,882,323
Equity issuances	91,800	$ 1	91,799				91,800
Equity issuances (shares)		6,000,000
Offering costs	(408)		(408)			(2)	(410)
Contributions, net						20	20
Equity component of 2017 convertible note issuance	(351)		(351)			(9)	(360)
Stock-based compensation	1,476		1,476				1,476
Stock-based compensation (shares)		124,952
Manager incentive fee paid in stock	233		233				233
Manager incentive fee paid in stock (in shares)		14,939
Net income	72,968			72,968		2,088	75,056
Other comprehensive loss	(5,254)				(5,254)	(181)	(5,435)
Balance at end of period at Dec. 31, 2019	$ 825,412	$ 5	$ 822,837	$ 8,746	$ (6,176)	$ 19,372	$ 844,784
Balance at end of period (in shares) at Dec. 31, 2019		51,127,326

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	Dec. 11, 2019	Sep. 10, 2019	Jun. 11, 2019	Mar. 12, 2019	Dec. 12, 2018	Sep. 11, 2018	Jun. 12, 2018	Mar. 14, 2018	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity
Dividends declared per share of common stock	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.37	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.37	$ 1.60	$ 1.57	$ 1.48

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Cash Flows From Operating Activities:
Net income	$ 75,056	$ 61,457	$ 45,814
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization of premiums, discounts, and debt issuance costs, net	14,409	15,470	14,525
Provision for loan losses	3,684	1,701	2,363
Impairment loss on real estate, held for sale	1,317	1,086	756
Change in repair and denial reserve	(345)	(163)
Proceeds from sale or maturity of short-term investments, net			320,394
Net settlement of derivative instruments	(6,219)	4,272	(1,256)
Purchase of loans, held for sale, at fair value	(9,149)	(17,481)	(11,195)
Origination of loans, held for sale, at fair value	(2,621,324)	(2,407,492)	(2,508,153)
Proceeds from disposition and principal payments of loans, held for sale, at fair value	2,628,521	2,586,724	2,571,583
Realized gains, net	(101,794)	(88,890)	(94,573)
Unrealized losses (gains), net	18,790	(4,853)	(7,000)
Gain on bargain purchase	(30,728)
Equity in net income of unconsolidated joint ventures, net of distributions	(5,716)	1,047	(1,048)
Purchased future receivables, net of payoffs	(8,807)
Allowance for doubtful accounts on purchased future receivables	5,082
Net changes in operating assets and liabilities
Assets of consolidated VIEs (excluding loans, net), accrued interest and due from servicers	(21,265)	(12,088)	24,319
Receivable from third parties	7,556	(2,132)	464
Other assets	(26,286)	1,448	(13,898)
Accounts payable and other accrued liabilities	24,821	191	9,394
Net cash (used in) provided by operating activities	(52,397)	140,297	352,489
Cash Flow From Investing Activities:
Origination of loans	(1,307,143)	(934,607)	(454,975)
Purchase of loans	(739,002)	(369,418)	(147,327)
Purchase of mortgage backed securities, at fair value	(9,593)	(73,305)	(14,448)
Purchase of real estate	(117)	(1,570)
Funding of unconsolidated joint ventures	(26,655)		(54,321)
Purchase of servicing rights	(894)	(362)
Proceeds on unconsolidated joint venture in excess of earnings recognized	15,578	20,884
Payment of liability under participation agreements, net of proceeds received		(555)	(1,100)
Proceeds from disposition and principal payment of loans	826,702	746,162	422,064
Proceeds from sale and principal payment of mortgage backed securities, at fair value	14,354	30,381	9,577
Proceeds from sale of real estate	18,983	1,631	4,802
Cash paid in connection with Knight Merger, net of cash acquired	(15,827)
Cash acquired in connection with the ORM Merger	10,822
Net cash (used in) investing activities	(1,212,792)	(580,759)	(235,728)
Cash Flows From Financing Activities:
Proceeds from secured borrowings	5,398,657	3,603,933	4,555,957
Payment of secured borrowings	(5,087,424)	(3,406,779)	(4,853,403)
Proceeds from issuance of securitized debt obligations of consolidated VIEs	1,395,518	607,837	338,043
Payment of securitized debt obligations of consolidated VIEs	(477,205)	(297,774)	(227,800)
Proceeds from note offerings	104,687	91,328	256,917
Payment of guaranteed loan financing	(34,704)	(74,980)	(110,945)
Payment of deferred financing costs	(28,207)	(18,831)	(16,885)
Equity issuance, net of offering costs	91,390	86	(70)
Payment of contingent consideration	(1,207)	(8,967)
Redemption of preferred stock		(103)
Contributions (distributions) from non-controlling interests, net	20	45	(56)
Dividend payments	(63,326)	(51,317)	(48,260)
Net cash (used in) provided by financing activities	1,298,199	444,478	(106,502)
Net increase (decrease) in cash, cash equivalents, and restricted cash	33,010	4,016	10,259
Cash, cash equivalents, and restricted cash at beginning of period	94,970	90,954	80,695
Cash, cash equivalents, and restricted cash at end of period	127,980	94,970	90,954
Supplemental disclosure of operating cash flow
Cash paid for interest	126,188	95,946	62,106
Cash (received) paid for income taxes	(2,661)	898	3,773
Stock-based compensation	1,476	447	582
Supplemental disclosure of non-cash investing activities
Loans transferred from Loans, held for sale, at fair value to Loans, net	1,262	644	366
Loans transferred from Loans, net to Loans, held for sale, at fair value		1,147	4,493
Consolidation of assets in securitization trusts	463,177
Deconsolidation of assets in securitization trusts	177,815
Supplemental disclosure of non-cash financing activities
Common stock issued in exchange of litigation settlement			4,000
Common stock issued in connection with merger transactions	189,611
Consolidation of borrowings in securitization trusts	463,177
Deconsolidation of borrowings in securitization trusts	177,815
Share-based component of incentive fees	233	338
Cash and restricted cash reconciliation
Cash and cash equivalents	67,928	54,406	63,425
Restricted cash	51,728	28,921	11,666
Cash, cash equivalents, and restricted cash in Assets of consolidated VIEs	8,324	11,643	15,863
Cash, cash equivalents, and restricted cash at end of period	$ 127,980	$ 94,970	$ 90,954

Organization

Organization	12 Months Ended
	Dec. 31, 2019
Organization
Organization	READY CAPITAL CORPORATION NOTES TO the CONS OLIDATED FINANCIAL STATEMENTS 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 December 31, 2019 and 2018, the Company owned approximately 97.9% and 96.6%, 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) 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: · Acquisitions . We acquire performing and non-performing SBC loans as part of our business strategy. We hold performing SBC loans to term, and we seek to maximize the value of the non-performing SBC loans acquired by us through borrower based resolution strategies. We typically acquire non-performing loans at a discount to their unpaid principal balance (“UPB”) when we believe that resolution of the loans will provide attractive risk-adjusted returns. We also acquire purchased future receivables through our Knight Capital, LLC (“Knight Capital”) funding platform. · SBC Originations . We originate SBC loans secured by stabilized or transitional investor properties using multiple loan origination channels through our wholly-owned subsidiary, ReadyCap Commercial, LLC (“ReadyCap Commercial”). These originated loans are generally held-for-investment or placed into securitization structures. Additionally, as part of this segment, we originate and service multi-family loan products under the Federal Home Loan Mortgage Corporation’s Small Balance Loan Program (“Freddie Mac” and the “Freddie Mac program”). These originated loans are held for sale, then sold to Freddie Mac. · SBA Originations, Acquisitions, and Servicing . We acquire, originate and service owner-occupied loans guaranteed by the SBA under its Section 7(a) loan program (the “SBA Section 7(a) Program”) through our wholly-owned subsidiary, ReadyCap Lending, LLC (“ReadyCap Lending”). We hold an SBA license as one of only 14 non-bank Small Business Lending Companies (“SBLCs”) and have been granted preferred lender status by the SBA. These originated loans are either held-for-investment, placed into securitization structures, or sold. · Residential Mortgage Banking . We operate our residential mortgage loan origination segment through our wholly-owned subsidiary, GMFS, LLC ("GMFS"). GMFS originates residential mortgage loans eligible to be purchased, guaranteed or insured by the Federal National Mortgage Association (“Fannie Mae”), Freddie Mac, Federal Housing Administration (“FHA”), U.S. Department of Agriculture (“USDA”) and U.S. Department of Veterans Affairs (“VA”) through retail, correspondent and broker channels. These originated loans are then sold to third parties, primarily agency lending programs. 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 (“ORM Merger”). 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 increased the Company’s equity capitalization, supported continued growth of the Company’s platform and execution of the Company’s strategy, and provided the Company with improved scale, liquidity and capital alternatives, including additional borrowing capacity. Also, the stockholder base resulting from the acquisition of ORM enhanced the trading volume and liquidity for our stockholders. The combination of the Company and ORM created cost savings and efficiencies resulting from the allocation of operating expenses over a larger portfolio and has allowed the Company to harvest value from ORM's real property assets. On October 25, 2019, the Company acquired Knight Capital. Knight Capital is a technology-driven platform that provides working capital to small and medium businesses across the U.S. Through its platform, Knight Capital supports business operations by offering a faster alternative to conventional bank funding. The total purchase price for the merger of $27.8 million consists of $17.5 million of cash and $10.3 million of Ready Capital common stock. 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	12 Months Ended
	Dec. 31, 2019
Basis of Presentation
Basis of Presentation	Note 2 – Basis of Presentation The accompanying 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 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 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 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 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 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 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 present 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. As described in Note 27, effective at the beginning of the third quarter of 2017, the Company implemented organizational changes to align its segment financial reporting more closely with its current business practices. These organizational changes resulted in securitization activities on originated SBC and SBA loans being transferred out of the acquisitions segment and into either the SBC originations or SBA originations, acquisitions, and servicing segment, based on the loan type. These organizational changes also resulted in the Company presenting Corporate-Other amounts separately and no longer reflecting these amounts as part of the four business segments. Prior period numbers were revised to conform to the new segment alignment and to be consistent with our current period’s presentation. Cash and cash equivalents The Company accounts for cash and cash equivalents in accordance with ASC 305, Cash and Cash Equivalents. The Company defines cash and cash equivalents as cash, demand deposits, and short-term, highly liquid investments with original maturities of 90 days or less when purchased. Cash and cash equivalents are exposed to concentrations of credit risk. We deposit our cash with institutions that we believe to have highly valuable and defensible business franchises, strong financial fundamentals, and predictable and stable operating environments. 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 December 31, 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. Short-term investments The Company accounts for short-term investments as trading securities under ASC 320, Investments-Debt and Equity Securities . Short-term investments consist of U.S. Treasury Bills with original maturities of less than a year but greater than three months. The Company holds short-term investments at fair value. Interest received and accrued as well as the accretion of purchase discount in connection with short-term investments is recorded as interest income in the consolidated statements of income. Changes in the fair value of short-term investments are recorded as net unrealized gain (loss) in the consolidated statements of income. Loans, net Loans, net consists of loans, held-for-investment, net of allowance for loan losses, and loans, held at fair value. Loans, held-for-investment Loans, held-for-investment are loans acquired from third parties (“acquired loans”), loans originated by the Company that we do not intend to sell, or securitized loans that were previously originated by us. Securitized loans remain on the Company’s balance sheet because the securitization vehicles are consolidated under ASC 810. Acquired loans are recorded at cost at the time they are acquired. Acquired loans are accounted for in accordance with ASC 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality 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 the Company that we do not intend to sell are accounted for under ASC 310-10, Receivables-Overall 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 scores at loan origination (“FICO”), 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 to be not probable. Interest income accrued, but not collected, at the date loans are placed on non-accrual status is reversed and subsequently recognized only to the extent it is received in cash or until the loan qualifies for return to accrual status. However, where there is doubt regarding the ultimate collectability of loan principal, all cash received is applied to reduce the carrying value of such loans. Loans are restored to accrual status only when contractually current and the collection of future payments is reasonably assured. Loans, held at fair value Loans, held at fair value represent certain loans originated by the Company for which we have elected the fair value option. Interest is recognized as interest income in the consolidated statements of income when earned and deemed collectible. Changes in fair value are recurring and are reported as net unrealized gain (loss) in the 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 the Company’s historical loan portfolio. 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 securitization to determine the likelihood of default. To determine loss severity we stressed collateral values based on observed property value declines from 2007 through their post-crisis low in 2010 to determine potential losses in the event of default. 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 in the 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) in the consolidated statements of income. For originated SBA loans, the guaranteed portion is held for sale, at fair value. For loans originated by GMFS, changes in fair value are reported as residential mortgage banking activities in the consolidated statements of income. Mortgage backed securities, at fair value The Company accounts for MBS as trading securities and carries them at fair value under ASC 320, Investments-Debt and Equity Securities. Our MBS portfolio is comprised of asset-backed securities collateralized by interest in or obligations backed by pools of SBC loans. Purchases and sales of MBS are recorded as of the trade date. Our MBS securities pledged as collateral against borrowings under repurchase agreements are included in mortgage backed securities, at fair value on our 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 consolidated balance sheets. Such amounts reflect the unpaid principal balance of the loans. Derivative instruments, at fair value Subject to maintaining our qualification as a REIT for U.S. federal income tax purposes, we utilize derivative financial instruments, currently comprised of credit default swaps (“CDSs”), interest rate swaps, and interest rate lock commitments (“IRLCs”) as part of our risk management. The Company accounts for derivative instruments under ASC 815, Derivatives and Hedges . All derivatives are reported as either assets or liabilities in the 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 December 31, 2019 and 2018, the cash collateral receivable for derivatives is $9.5 million and $11.6 million, respectively, and is included in restricted cash in the 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 consolidated statements of income. IRLCs IRLCs are agreements under which GMFS agrees to extend credit to a borrower under certain specified terms and conditions in which the interest rate and the maximum amount of the loan are set prior to funding. Unrealized gains and losses on the IRLCs, reflected as derivative assets and derivative liabilities, respectively, are measured based on the value of the underlying mortgage loan, quoted government-sponsored enterprise (Fannie Mae, Freddie Mac, and the Government National Mortgage Association ((“Ginnie Mae”), collectively, “GSEs”) or MBS prices, estimates of the fair value of the mortgage servicing rights (“MSRs”) and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The realized and unrealized gains or losses are reported in the consolidated statements of income as residential mortgage banking activities. IRLCs are classified as Level 3 in the fair value hierarchy. FX forwards FX forwards are agreements between two counterparties to exchange a pair of currencies at a set rate on a future date. FX forward contracts are used to convert the foreign currency risk to U.S. dollars to mitigate exposure to fluctuations in FX rates. The fair value adjustments are reported within net unrealized gain (loss) on financial instruments in the consolidated statements of income. FX forwards are classified as Level 2 in the fair value hierarchy. CDSs CDSs are contracts between two parties, a protection buyer who makes fixed periodic payments, and a protection seller, who collects the premium in exchange for making the protection buyer whole in the case of default. The fair value adjustments, are reported within net unrealized gain (loss) on financial instruments, while the related interest income or interest expense, are reported within net realized gain (loss) on financial instruments in the 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) in the consolidated statements of income. For residential mortgage servicing rights, gains on servicing rights retained upon sale of a loan are included in residential mortgage banking activities in the consolidated statements of income. The Company treats its servicing rights and residential mortgage servicing rights as two separate classes of servicing assets based on the class of the underlying mortgages and it treats these assets as two separate pools for risk management purposes. Servicing rights relating to the Company’s servicing of loans guaranteed by the SBA under its Section 7(a) loan program and servicing rights related to the Freddie Mac program are accounted for under ASC 860, Transfers and Servicing, while the Company’s residential mortgage servicing rights are accounted for under the fair value option under ASC 825, Financial Instruments. Servicing rights – SBA and Freddie Mac SBA and Freddie Mac servicing rights are initially recorded at fair value and subsequently carried at amortized cost. We capitalize the value expected to be realized from performing specified servicing activities for others. Servicing rights are amortized in proportion to and over the period of estimated servicing income, and are evaluated for potential impairment quarterly. For purposes of testing our servicing rights for impairment, we first determine whether facts and circumstances exist that would suggest the carrying value of the servicing asset is not recoverable. If so, we then compare the net present value of servicing cash flow with its carrying value. The estimated net present value of servicing cash flows is determined using discounted cash flow modeling techniques, which require management to make estimates regarding future net servicing cash flows, taking into consideration historical and forecasted loan prepayment rates, delinquency rates and anticipated maturity defaults. If the carrying value of the servicing rights exceeds the net present value of servicing cash flows, the servicing rights are considered impaired and an impairment loss is recognized in earnings for the amount by which carrying value exceeds the net present value of servicing cash flows. We estimate the fair value of servicing rights by determining the present value of future expected servicing cash flows using modeling techniques that incorporate management's best estimates of key variables including estimates regarding future net servicing cash flows, forecasted loan prepayment rates, delinquency rates, and return requirements commensurate with the risks involved. Cash flow assumptions are modeled using our internally forecasted revenue and expenses, and where possible, the reasonableness of assumptions is periodically validated through comparisons to market data. Prepayment speed estimates are determined from historical prepayment rates or obtained from third-party industry data. Return requirement assumptions are determined using data obtained from market participants, where available, or based on current relevant interest rates plus a risk-adjusted spread. We also consider other factors that can impact the value of the servicing rights, such as surety provider termination clauses and servicer terminations that could result if we failed to materially comply with the covenants or conditions of our servicing agreements and did not remedy the failure. Since many factors can affect the estimate of the fair value of servicing rights, we regularly evaluate the major assumptions and modeling techniques used in our estimate and review these assumptions against market comparables, if available. We monitor the actual performance of our servicing rights by regularly comparing actual cash flow, credit, and prepayment experience to modeled estimates. Servicing rights - Residential (carried at fair value) The Company’s residential mortgage servicing rights consist of conforming conventional residential loans sold to Fannie Mae and Freddie Mac or loans securitized in Ginnie Mae securities. Government insured loans serviced by the Company are securitized through Ginnie Mae, whereby the Company is insured against loss by the Federal Housing Administration or partially guaranteed against loss by the Department of Veterans Affairs. The Company has elected to account for its portfolio of residential mortgage servicing rights (“MSRs”) at fair value. For these assets, the Company uses a third-party vendor to assist management in estimating the fair value. The third-party vendor uses a discounted cash flow approach which consists of projecting servicing cash flows discounted at a rate that management believes market participants would use in their determinations of fair value. The key assumptions used in the estimation of the fair value of MSRs include prepayment rates, discount rates, default rates, and cost of servicing rates. Residential MSRs are classified as Level 3 in the fair value hierarchy. Real estate, held for sale Real estate, held for sale, includes purchased real estate and real estate acquired in full or partial settlement of loan obligations, generally through foreclosure, that is being marketed for sale. Real estate, held for sale is recorded at acquisition at the property’s estimated fair value less estimated costs to sell. After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. After acquisition, real estate held for sale is analyzed periodically for changes in fair values and any subsequent write down is charged through impairment. The Company records a gain or loss from the sale of real estate when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of real estate to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction price is probable. Once these criteria are met, the real estate is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. This adjustment is based on management’s estimate of the fair value of the loan extended to the buyer to finance the sale. Investment in unconsolidated joint ventures According to ASC 323, Equity Method and Joint Ventures , investors in unincorporated entities such as partnerships and unincorporated joint ventures generally shall account for their investments using the equity method of accounting if the investor has the ability to exercise significant influence over the investee. Under the equity method, we recognize our allocable share of the earnings or losses of the investment monthly in earnings and adjust the carrying amount for our share of the distributions that exceed our earnings. Purchased future receivables Through Knight Capital, the Company provides working capital advances to small businesses through the purchase of their future revenues. The Company enters into a contract with the business whereby the Company pays the business an upfront amount in return for a specific amount of the business’s future revenue receivables, known as payback amounts. The payback amounts are primarily received through daily payments initiated by automated clearing house (“ACH”) transactions. Revenues from purchased future receivables are realized when funds are received under each contract. The allocation of the amount received is determined by apportioning the amount received based upon the factor (discount) rate of the business's contract. Management believes that this methodology best reflects the effective interest method. The Company has established an allowance for doubtful purchased future receivables. An increase in the allowanc

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements	12 Months Ended
	Dec. 31, 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.  Adopted January 1, 2019. Issued August 2017  The adoption did not affect the financial statement impact of hedge accounting, as the change simplified hedge documentation requirements and presentation associated with hedging activities. 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.  Adopted January 1, 2019. Issued August 2018  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.  The adoption did not have a material impact on our consolidated financial statements. ASU 2018-11, Leases (Topic 842): Targeted Improvements to Accounting for Leases  Requires lessees to recognize all leases longer than twelve months in the consolidated balance sheets as a lease liability with a corresponding right-of-use asset.  Adopted January 1, 2019. Issued July 2018  Requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the "bright line" classification tests.  The Company elected the available practical expedient to not reassess whether existing contracts contain a lease or whether classification or unamortized initial lease costs would be different under the new lease guidance.  Expands qualitative and quantitative leasing disclosures to increase transparency and comparability among organizations.  The modified retrospective adoption of this standard resulted in the Company recording a gross up of approximately $3.3 million on our 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 consolidated balance sheets. 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  Replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost, which will reflect management's estimate of credit losses over the full remaining expected life of the financial assets and will consider expected future changes in macroeconomic conditions.  Required effective date: January 1, 2020. Issued June 2016  Eliminates existing guidance for PCI loans, and requires recognition of the accretable difference as an increase to the allowance for expected credit losses on financial assets purchased with more than insignificant credit deterioration since origination, with a corresponding increase in the recorded investment of related loans.  The Company expects that the allowance related to the Company's loans will increase as it will cover credit losses over the full remaining expected life of the portfolios. The Company currently intends to estimate losses over a two-year forecast period using the weighted-average of a range of macroeconomic scenarios, and then revert to longer term historical loss experience to estimate losses over more extended periods.  Requires inclusion of expected recoveries, limited to the cumulative amount of prior write-offs, when estimating the allowance for credit losses for in scope financial assets (including collateral dependent assets).  The Company expects the increase in the allowance for loan losses to be in the range of $5.3 million to $8.1 million for our accrual loans. The Company expects the total increase in the allowance for loan losses to be in the range of $8.9 million to $11.7 million which includes a $3.6 million allowance for loan loss balance sheet gross up, relating to purchased credit impaired loans. This estimate is subject to further refinement based on continuing reviews and approvals of models, methodologies, judgments, and economic conditions.  Requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption.  The Company adopted the new guidance on January 1, 2020. ASU 2017-4, Intangibles — Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment  Requires an impairment loss to be recognized when the estimated fair value of a reporting unit falls below its carrying value.  Required effective date: January 1, 2020. Issued January 2017  Eliminates the second condition in the current guidance that requires an impairment loss to be recognized only if the estimated implied fair value of the goodwill is below its carrying value.  Based on current impairment test results, the Company does not expect a material effect on the consolidated financial statements. However, the impact of the new accounting guidance will depend on the performance of the reporting unit and market conditions at the time of adoption.  After adoption, the guidance may result in more frequent goodwill impairment losses due to the removal of the second condition. ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement  Provides guidance on increasing the transparency and comparability of the disclosure requirements for fair value measurement.  Required effective date: January 1, 2020. Issued August 2018  The adoption will not have a material impact on our consolidated financial statements.

Business Combinations

Business Combinations	12 Months Ended
	Dec. 31, 2019
Business Combinations
Business Combinations	Note 5 – Business Combinations 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. Pursuant to the Merger Agreement, the Company acquired ORM in a stock-for-stock transaction with an aggregate purchase price equal to 99.0% of ORM’s book value. 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. 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. The consideration transferred was allocated to the assets acquired and liabilities assumed based on their respective fair values. The methodologies used and key assumptions made to estimate the fair value of the assets acquired and liabilities assumed are primarily based on future cash flows and discount rates. 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 130,449 Real estate, held for sale 67,973 Investment in unconsolidated joint ventures 8,619 Other assets Deferred tax assets 4,660 Accrued interest 1,209 Other 379 Total assets acquired $ 224,111 Liabilities Secured borrowings 12,713 Accounts payable and other accrued liabilities 1,000 Due to Manager 228 Deferred tax liabilities 123 Total liabilities assumed $ 14,064 Net assets acquired $ 210,047 For acquired loan receivables, the gross contractual unpaid principal acquired is $134.8 million and we expect to collect all contractual amounts. The aggregate consideration transferred, net assets acquired, and the related bargain purchase gain was as follows: 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 consolidated statements of income under gain on bargain purchase. Acquisition-related costs directly attributable to the ORM Merger, including legal, accounting, valuation, and other professional or consulting fees, totaling $6.2 million for the year ended December 31, 2019, respectively, were expensed as incurred and are reflected separately within the consolidated statements of income. The following pro-forma income and earnings (unaudited) of the combined company are presented as if the merger had occurred on January 1, 2018: For the year ended For the year ended (In Thousands) December 31, 2019 December 31, 2018 Selected Financial Data Interest income $ 232,706 $ 181,780 Interest expense (152,428) (111,371) Provision for loan losses (3,684) (1,462) Non-interest income 145,393 157,049 Non-interest expense (180,140) (155,704) Income before provision for income taxes 41,847 70,292 Income tax benefit (provision) 10,545 (1,945) Net income $ 52,392 $ 68,347 Non-recurring pro-forma transaction costs directly attributable to the merger were $9.2 million for the year ended December 31, 2019, and have been deducted from the non-interest expense amount above. These costs included legal, accounting, valuation, and other professional or consulting fees directly attributable to the merger. The Company excluded the bargain purchase gain of $30.7 million from the amount above. Acquisition of Knight Capital On October 25, 2019, the Company acquired Knight Capital. Knight Capital is a technology-driven platform that provides working capital to small and medium businesses across the U.S. Through its platform, Knight Capital supports business operations by offering a faster alternative to conventional bank funding. The total purchase price for the merger of $27.8 million consists of $17.5 million of cash and $10.3 million of Ready Capital common stock. The purchase price was allocated to the assets acquired and liabilities assumed based on their respective fair values. The following table summarizes the fair value of assets acquired and liabilities assumed from the merger: (In Thousands) October 25, 2019 Assets Cash and cash equivalents $ 1,673 Purchased future receivables, 39,540 Prepaid expenses and other 1,265 Intangible assets 5,880 Total assets acquired $ 48,358 Liabilities Secured borrowings 30,600 Accounts payable and other accrued liabilities 1,173 Total liabilities assumed $ 31,773 Net assets acquired $ 16,585 The aggregate consideration transferred, net assets acquired, and the related goodwill was as follows: Total Consideration Transferred (in thousands) Cash consideration $ 17,500 Common stock consideration 10,290 Total consideration transferred $ 27,790 Net Tangible Assets $ 10,705 Identified Intangible Assets 5,880 FV of Net Assets Acquired $ 16,585 Goodwill $ 11,205 The acquired intangible assets are definite-lived assets consisting of technology, brokers network and trade name. The estimated fair values of the technology and brokers network were determined using the cost replacement method, and the fair value of the trade name was determined using the relief from royalty method. The estimated fair value of the intangible assets were primarily based on cost assumptions such as replacement costs, which management believes are reasonable. The fair value of the intangible assets with definite lives is as follows (dollars in thousands): (In Thousands) Fair Value Weighted Average Amortization Life Internally developed software $ 3,800 6 years Broker network 1,200 4.5 years Trade name 880 6 years Total Intangible Assets $ 5,880 6 years Goodwill of $11.2 million was recognized in connection with the Company’s acquisition of Knight Capital as the consideration paid exceeded the fair value of the net assets acquired. Acquisition-related costs directly attributable to the acquisition of Knight Capital, including legal, accounting, valuation, and other professional or consulting fees, totaling $1.5 million for the year ended December 31, 2019 were expensed as incurred and are reflected separately within the consolidated statements of income. The following pro-forma income and earnings (unaudited) of the combined company are presented as if the merger had occurred on January 1, 2018: For the year ended For the year ended (In Thousands) December 31, 2019 December 31, 2018 Selected Financial Data Interest income $ 229,916 $ 169,499 Interest expense (151,880) (109,238) Provision for loan losses (3,684) (1,701) Non-interest income 223,197 192,181 Non-interest expense (229,648) (201,454) Income before provision for income taxes 67,901 49,287 Income tax benefit (provision) 10,552 (1,386) Net income $ 78,453 $ 47,901 Non-recurring pro-forma transaction costs directly attributable to the merger were $2.2 million for the year ended December 31, 2019, and have been deducted from the non-interest expense amount above. These costs included legal, accounting, valuation, and other professional or consulting fees directly attributable to the merger.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	12 Months Ended
	Dec. 31, 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, 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: December 31, 2019 December 31, 2018 Loans (In Thousands) Carrying Value UPB Carrying Value UPB Loans Acquired SBA 7(a) loans $ 255,240 $ 269,396 $ 264,308 $ 283,423 Acquired loans 356,545 358,777 206,983 215,213 Acquired Transitional loans 73,762 74,302 — — Originated Transitional loans 593,657 600,226 272,981 275,237 Originated SBC loans, at fair value 20,212 19,565 22,664 22,325 Originated SBC loans 133,118 132,227 345,100 342,751 Originated SBA 7(a) loans 297,934 299,580 85,569 89,733 Originated Residential Agency loans 3,396 3,395 1,899 1,900 Total Loans, before allowance for loan losses $ 1,733,864 $ 1,757,468 $ 1,199,504 $ 1,230,582 Allowance for loan losses $ (5,880) — $ (6,112) — Total Loans, net $ 1,727,984 $ 1,757,468 $ 1,193,392 $ 1,230,582 Loans in consolidated VIEs Loans Originated SBC loans $ 1,037,844 $ 1,026,921 $ 432,308 $ 422,897 Acquired loans 666,226 671,698 343,156 354,794 Originated Transitional loans 490,913 493,217 391,752 393,116 Originated SBA 7(a) loans 79,457 83,559 — — Acquired SBA 7(a) loans 53,320 66,997 55,966 74,554 Total Loans, in consolidated VIEs, before allowance for loan losses $ 2,327,760 $ 2,342,392 $ 1,223,182 $ 1,245,361 Allowance for loan losses on loans in consolidated VIEs $ (1,561) — $ (2,208) — Total Loans, net, in consolidated VIEs $ 2,326,199 $ 2,342,392 $ 1,220,974 $ 1,245,361 Total Loans, net, and Loans, net in consolidated VIEs $ 4,054,183 $ 4,099,860 $ 2,414,366 $ 2,475,943 Loans, held for sale, at fair value Originated Residential Agency loans $ 136,506 $ 132,016 $ 67,775 $ 65,586 Originated Freddie Mac loans 21,775 21,513 23,322 22,973 Originated SBA 7(a) loans 28,551 26,669 21,153 19,669 Acquired loans 1,245 1,208 3,008 2,935 Total Loans, held for sale, at fair value $ 188,077 $ 181,406 $ 115,258 $ 111,163 Loans, held for sale, at fair value in consolidated VIEs Loans, held for sale, at fair value Acquired loans $ 4,434 $ 4,400 $ — $ — Total Loans, held for sale, at fair value in consolidated VIEs $ 4,434 $ 4,400 $ — $ — Total Loans, held for sale, at fair value, and Loans, held for sale, at fair value in consolidated VIEs $ 192,511 $ 185,806 $ 115,258 $ 111,163 Total Loan portfolio $ 4,246,694 $ 4,285,666 $ 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: December 31, 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 $ 297,172 $ 4,646 $ 5,042 $ 306,860 $ 9,177 $ 1,326 Acquired loans 969,208 36,405 14,908 1,020,521 17,774 3,382 Acquired Transitional loans 63,051 9,489 1,222 73,762 5,726 — Originated Transitional loans 1,074,955 5,728 5,645 1,086,328 24,587 — Originated SBC loans, at fair value 20,212 — — 20,212 — — Originated SBC loans 1,137,140 15,670 16,089 1,168,899 16,089 — Originated SBA 7(a) loans 370,101 5,238 1,290 376,629 8,882 — Originated Residential Agency loans 582 635 2,179 3,396 2,105 74 Total Loans, before general allowance for loans losses $ 3,932,421 $ 77,811 $ 46,375 $ 4,056,607 $ 84,340 $ 4,782 General allowance for loan losses $ (2,424) Total Loans, net $ 4,054,183 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 December 31, 2019 and December 31, 2018: 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 December 31, 2019 Loans (1) (2) Acquired SBA 7(a) loans $ 7,712 $ 39,566 $ 103,590 $ 83,954 $ 39,726 $ 32,312 $ 306,860 Acquired loans 215,041 366,665 265,994 128,962 30,104 13,755 1,020,521 Acquired Transitional loans 3,638 4,806 27,222 32,469 5,627 — 73,762 Originated Transitional loans 1,736 28,108 277,388 750,298 28,059 739 1,086,328 Originated SBC loans, at fair value — 8,192 — 6,422 5,598 — 20,212 Originated SBC loans — 60,601 431,312 660,733 8,045 8,208 1,168,899 Originated SBA 7(a) loans 865 13,843 41,166 130,177 78,544 112,034 376,629 Originated Residential Agency loans — 51 — 830 2,393 122 3,396 Total Loans, before general allowance for loans losses $ 228,992 $ 521,832 $ 1,146,672 $ 1,793,845 $ 198,096 $ 167,170 $ 4,056,607 General allowance for loan losses $ (2,424) Total Loans, net $ 4,054,183 Percentage of outstanding 5.6 % 12.9 % 28.3 % 44.2 % 4.9 % 4.1 % 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 December 31, 2019 and 2018, the Company’s total carrying amount of loans in the foreclosure process was $0.8 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 consolidated balance sheets. Geographic Concentration (% of Unpaid Principal Balance) December 31, 2019 December 31, 2018 California 16.9 % 14.1 % Texas 15.2 11.3 Florida 8.3 10.8 New York 8.3 6.3 Illinois 5.2 3.8 Georgia 4.8 5.3 Arizona 3.4 5.0 North Carolina 3.2 3.7 Colorado 2.8 2.7 Washington 2.8 2.8 Other 29.1 34.2 Total 100.0 % 100.0 % The following table displays the collateral type concentration of the Company’s loans, net, on our consolidated balance sheets. Collateral Concentration (% of Unpaid Principal Balance) December 31, 2019 December 31, 2018 Multi-family 26.6 % 23.3 % SBA (1) 17.6 18.1 Retail 17.5 18.5 Office 12.9 15.1 Mixed Use 10.4 9.6 Industrial 6.4 8.2 Lodging/Residential 3.3 2.4 Other 5.3 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 consolidated balance sheets. Collateral Concentration (% of Unpaid Principal Balance) December 31, 2019 December 31, 2018 Offices of Physicians 14.1 % 17.7 % Child Day Care Services 8.1 9.9 Hotels, Motels & Tourist Courts 11.6 3.8 Eating Places 6.1 5.4 Lodging 5.7 10.1 Veterinarians 4.1 6.8 Gasoline Service Stations 3.7 2.3 Funeral Service & Crematories 2.0 2.3 Grocery Stores 2.0 3.8 Auto 1.3 2.7 Other 41.3 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 consolidated balance sheet dates: December 31, 2019 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for General $ 124 $ 64 $ 652 $ 414 $ 1,019 $ 151 $ 2,424 Specific 180 124 86 941 762 - 2,093 PCI - - 2,165 759 - - 2,924 Ending balance $ 304 $ 188 $ 2,903 $ 2,114 $ 1,781 $ 151 $ 7,441 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: Year Ended December 31, 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 420 (167) 630 939 1,711 151 3,684 Charge-offs and sales (127) - (1,144) (1,282) (516) - (3,069) Recoveries - 2 (1,635) 139 - - (1,494) Ending balance $ 304 $ 188 $ 2,903 $ 2,114 $ 1,781 $ 151 $ 7,441 Year End December 31, 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 (recoveries of) loan losses (457) 353 1,843 (306) 268 - 1,701 Charge-offs and sales (169) - (1,380) (903) - - (2,452) Recoveries - - (2,675) - - - (2,675) Ending balance $ 11 $ 353 $ 5,052 $ 2,318 $ 586 $ - $ 8,320 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) December 31, 2019 December 31, 2018 Impaired loans With an allowance $ 18,063 $ 9,734 Without an allowance 60,036 33,082 Total recorded carrying value of impaired loans $ 78,099 $ 42,816 Allowance for loan losses related to impaired loans $ (2,093) $ (1,989) Unpaid principal balance of impaired loans $ 83,991 $ 49,128 Impaired loans on non-accrual status $ 78,099 $ 42,816 Average carrying value of impaired loans $ 67,553 $ 36,675 December 31, 2019 December 31, 2018 Interest income on impaired loans for the year ended $ 2,777 $ 966 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 in the consolidated balance sheet by loan type as of the consolidated balance sheet dates. December 31, 2019 December 31, 2018 (In Thousands) SBC SBA Total SBC SBA Total Recorded carrying value modified loans classified as TDRs $ 6,258 $ 14,204 $ 20,462 $ 1,825 $ 17,344 $ 19,169 Allowance for loan losses on loans classified as TDRs $ 274 $ 454 $ 728 $ 321 $ 278 $ 599 Carrying value of modified loans classified as TDRs Carrying value of modified loans classified as TDRs on accrual status $ 333 $ 7,437 $ 7,770 $ 1,696 $ 7,375 $ 9,071 Carrying value of modified loans classified as TDRs on non-accrual status 5,925 6,767 12,692 129 9,969 10,098 Total carrying value of modified loans classified as TDRs $ 6,258 $ 14,204 $ 20,462 $ 1,825 $ 17,344 $ 19,169 The following table summarizes the TDR activity that occurred during the years ended December 31, 2019 and 2018 and the financial effects of these modifications. Year Ended December 31, 2019 Year Ended December 31, 2018 (In Thousands, except number of loans) SBC SBA Total SBC SBA Total Number of loans permanently modified 3 31 34 1 38 39 Pre-modification recorded balance (a) $ 2,169 $ 4,045 $ 6,214 $ 3,444 $ 7,214 $ 10,658 Post-modification recorded balance (a) $ 2,169 $ 3,778 $ 5,947 $ 3,444 $ 7,266 $ 10,710 Number of loans that remain in default as of December 31, 2019 (b) 3 8 11 1 11 12 Balance of loans that remain in default as of December 31, 2019 (b) $ 2,240 $ 534 $ 2,774 $ 3,444 $ 534 $ 3,978 Concession granted (a) : Term extension $ - $ 4,033 $ 4,033 $ - $ 6,844 $ 6,844 Interest rate reduction - - - - - - Principal reduction - - - - 7 7 Foreclosure 2,240 264 2,504 3,444 181 3,625 Total $ 2,240 $ 4,297 $ 6,537 $ 3,444 $ 7,032 $ 10,476 (a) Represents carrying value. (b) Represents the December 31, 2019 carrying values of the TDRs that occurred during the year ended December 31, 2019 and 2018 that remained in default as of December 31, 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: December 31, 2019 December 31, 2018 Non-PCI PCI Non-PCI PCI (In Thousands) Loans Loans Loans Loans Unpaid principal balance $ 4,012,432 $ 67,863 $ 2,361,155 $ 92,463 Non-accretable discount — (4,887) — (6,040) Accretable discount (24,436) (9,559) (31,533) (16,023) Loans, held-for-investment 3,987,996 53,417 2,329,622 70,400 Allowance for loan losses (4,517) (2,924) (3,925) (4,395) Loans, held-for-investment $ 3,983,479 $ 50,493 $ 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. Year Ended December 31, (In Thousands) 2019 2018 Beginning accretable discount - PCI loans $ 16,023 $ 23,749 Purchases/Originations — 514 Sales (2,114) (2,554) Accretion (3,444) (5,123) Other 478 726 Transfers (1,384) (1,289) Ending accretable discount - PCI loans $ 9,559 $ 16,023 In 2018, the Company acquired credit impaired loans with contractually required principal and interest payments receivable of $4.1 million; expected cash flows of $1.8 million; and a fair value (initial carrying amount) of $1.4 million. In 2019, the Company did not acquire any PCI loans.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 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 value 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 December 31, 2019: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Loans, held for sale, at fair value $ — $ 192,510 $ — $ 192,510 Loans, net, at fair value — — 20,212 20,212 Mortgage backed securities, at fair value — 92,006 460 92,466 Derivative instruments, at fair value — — 2,814 2,814 Residential mortgage servicing rights, at fair value — — 91,174 91,174 Total assets $ — $ 284,516 $ 114,660 $ 399,176 Liabilities: Derivative instruments, at fair value $ — $ 5,250 $ — $ 5,250 Total liabilities $ — $ 5,250 $ — $ 5,250 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 tables present a summary of changes in our Level 3 assets and liabilities: Year Ended December 31, 2019 (In Thousands) MBS Derivatives Loans, held at fair value Residential MSRs, at fair value Contingent consideration Beginning Balance $ 12,148 $ 1,776 $ 22,664 $ 93,065 $ 1,207 Purchases or Originations 9,593 — - - — Additions due to loans sold, servicing retained - — - 26,854 Sales / Principal payments (2,230) — (2,744) (10,178) (1,207) Realized gains, net 517 — (141) — Unrealized gains (losses), net 98 1,038 433 (18,567) — Accreted discount, net 141 — — — — Transfer to (from) Level 3 (19,807) — — — — Ending Balance $ 460 $ 2,814 $ 20,212 $ 91,174 $ — Unrealized gains (losses), net on assets or liabilities held at the end of the period $ 355 $ 1,038 $ 647 $ (18,567) $ — Year Ended December 31, 2018 (In Thousands) MBS Derivatives Loans, held at fair value Residential MSRs, at fair value Contingent consideration Beginning Balance $ 8,063 $ 1,827 $ 188,150 $ 72,295 $ 10,016 Purchases or Originations — — 150 — — Additions due to loans sold, servicing retained — — 20,974 — Sales / Principal payments (977) — (19,188) (5,899) — Realized gains, net 271 — 46 — — Unrealized gains (losses), net 2,866 (51) (720) 5,695 — Accreted discount, net 84 — — — Amortization and adjustment for earn-out payments — — — (8,809) Transfer to (from) Level 3 1,841 — — — — Transfer to loans, held-for-investment — — (145,774) Ending Balance $ 12,148 $ 1,776 $ 22,664 $ 93,065 $ 1,207 Unrealized gains (losses), net on assets or liabilities held at the end of the period $ 100 $ 1,776 $ 325 $ 8,617 $ — 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 December 31, 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 $ 20,212 Single External Source Third Party Mark $ 100.47 – 110.83 $ 103.31 Mortgage backed securities, at fair value (b) 357 Broker Quotes Third Party Mark 1.00 – 1.00 1.00 Mortgage backed securities, at fair value 103 Transaction Price Transaction Price 99.00 – 99.00 99.00 Residential mortgage servicing rights, at fair value 91,174 Single external source Discounted cash flow N/A N/A (a) Prices are weighted based on the unpaid principal balance of the loans and securities included in the range for each class. (b) Price ranges and weighted averages represent interest-only strips with a fair value of $0.4 million as of December 31, 2019. 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) (b) 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 in the consolidated balance sheets and are classified as Level 3: December 31, 2019 December 31, 2018 (In Thousands) Carrying Value Estimated Carrying Value Estimated Assets: Loans, net $ 4,033,972 $ 4,147,831 $ 2,391,702 $ 2,434,185 Purchased future receivables, net 43,265 43,265 — — Servicing rights 30,795 34,723 26,997 28,441 Total assets $ 4,108,032 $ 4,225,819 $ 2,418,699 $ 2,462,626 Liabilities: Secured borrowings $ 1,189,392 $ 1,189,392 $ 834,547 $ 834,547 Securitized debt obligations of consolidated VIEs, net 1,815,154 1,859,047 905,367 918,536 Senior secured note, net 179,289 190,923 178,870 176,981 Guaranteed loan financing 485,461 515,182 229,678 236,804 Convertible notes, net 111,040 116,654 109,979 101,581 Corporate debt, net 149,986 161,098 48,457 48,457 Total liabilities $ 3,930,322 $ 4,032,296 $ 2,306,898 $ 2,316,906 Other assets totaling $20.7 million at December 31, 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 $1.2 million at December 31, 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 $20.0 million at December 31, 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	12 Months Ended
	Dec. 31, 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 December 31, 2019 and 2018. Weighted Weighted Average Gross Gross Average Interest Principal Amortized Unrealized Unrealized (In Thousands) Maturity (a) Rate (a) Balance Cost Fair Value Gains Losses December 31, 2019 Mortgage backed securities, at fair value Freddie Mac Loans 06/2037 4.3 % $ 83,149 $ 61,207 $ 66,108 $ 4,915 $ (14) Commercial Loans 02/2051 5.4 35,984 25,358 26,255 924 (27) Tax Liens 09/2026 6.0 104 104 103 — (1) Total Mortgage backed securities, at fair value 07/2041 4.6 % $ 119,237 $ 86,669 $ 92,466 $ 5,839 $ (42) 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 December 31, 2019 and 2018. Weighted Average Interest Principal Amortized (In Thousands) Rate (a) Balance Cost Fair Value December 31, 2019 Mortgage backed securities, at fair value After five years through ten years 3.8 % $ 2,869 $ 2,641 $ 2,825 After ten years 4.7 116,368 84,028 89,641 Total Mortgage backed securities, at fair value 4.6 % $ 119,237 $ 86,669 $ 92,466 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

Servicing Rights	12 Months Ended
	Dec. 31, 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: Year Ended December 31, (In Thousands) 2019 2018 SBA servicing rights, at amortized cost Beginning net carrying amount $ 16,749 $ 16,684 Additions due to loans sold, servicing retained 3,470 3,569 Acquisitions 894 362 Amortization (3,393) (3,418) Impairment (60) (448) Ending net carrying value of SBA servicing rights $ 17,660 $ 16,749 Freddie Mac multi-family servicing rights, at amortized cost Beginning net carrying amount $ 10,248 $ 5,059 Additions due to loans sold, servicing retained 5,195 6,832 Amortization (2,308) (1,643) Ending net carrying value of Freddie Mac multi-family servicing rights $ 13,135 $ 10,248 Ending net carrying value of SBA and Freddie Mac multi-family servicing rights, at amortized cost $ 30,795 $ 26,997 Residential mortgage servicing rights, at fair value Beginning Balance $ 93,065 $ 72,295 Additions due to loans sold, servicing retained 26,854 20,974 Loan pay-offs (10,178) (5,899) Unrealized gains (losses) (18,567) 5,695 Ending fair value of residential mortgage servicing rights $ 91,174 $ 93,065 Total servicing rights $ 121,969 $ 120,062 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 December 31, 2019 As of December 31, 2018 Unpaid Principal Unpaid Principal (In Thousands) Amount Carrying Value Amount Carrying Value SBA $ 568,017 $ 17,660 $ 506,155 $ 16,749 Freddie Mac multi-family 1,167,476 13,135 964,377 10,248 Total $ 1,735,493 $ 30,795 $ 1,470,532 $ 26,997 The significant assumptions used in the December 31, 2019 and 2018 estimated valuation of the Company’s SBA and Freddie Mac multi-family servicing rights carried at amortized cost include: December 31, 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) December 31, 2019 December 31, 2018 SBA servicing rights (at amortized cost) • Forward prepayment rate 10% adverse change $ (563) $ (470) 20% adverse change (1,097) (915) • Default rate 10% adverse change $ (94) $ (63) 20% adverse change (186) (125) • Discount rate 10% adverse change $ (520) $ (579) 20% adverse change (1,011) (1,118) Freddie Mac multi-family servicing rights (at amortized cost) • Forward prepayment rate 10% adverse change $ (285) $ (63) 20% adverse change (558) (124) • Default rate 10% adverse change $ (5) $ (11) 20% adverse change (10) (22) • Discount rate 10% adverse change $ (381) $ (490) 20% adverse change (746) (791) The estimated future amortization expense for the servicing rights is expected to be as follows: (In Thousands) December 31, 2019 2020 $ 5,699 2021 4,961 2022 4,305 2023 3,711 2024 3,182 Thereafter 8,937 Total $ 30,795 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 December 31, 2019 As of December 31, 2018 Unpaid Principal Unpaid Principal (In Thousands) Amount Fair Value Amount Fair Value Fannie Mae $ 3,388,630 $ 37,309 $ 2,848,435 $ 34,562 Ginnie Mae 2,504,993 29,869 2,350,301 29,586 Freddie Mac 2,270,981 23,996 2,267,943 28,917 Total $ 8,164,604 $ 91,174 $ 7,466,679 $ 93,065 The significant assumptions used in the valuation of the Company’s residential mortgage servicing rights carried at fair value include: December 31, 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) December 31, 2019 December 31, 2018 Prepayment rate 10% adverse change $ (4,195) $ (3,281) 20% adverse change (8,091) (6,330) Discount rate 10% adverse change $ (3,450) $ (3,716) 20% adverse change (6,654) (7,159) Cost of servicing 10% adverse change $ (1,648) $ (1,683) 20% adverse change (3,297) (3,365)

Residential mortgage banking ac

Residential mortgage banking activities and variable expenses on residential mortgage banking activities	12 Months Ended
	Dec. 31, 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 consolidated statements of operations. For the Year Ended December 31, (In Thousands) 2019 2018 2017 Realized and unrealized gains and losses of residential mortgage loans held for sale, at fair value $ 54,640 $ 36,240 $ 63,024 Creation of new mortgage servicing rights, net of payoffs 16,676 15,075 14,919 Loan origination fee income on residential mortgage loans 10,702 9,371 8,193 Unrealized gains (loss) on IRLCs and other derivatives 1,521 (834) (2,699) Residential mortgage banking activities $ 83,539 $ 59,852 $ 83,437 Variable expenses on residential mortgage banking activities $ (51,760) $ (22,228) $ (41,737)

Secured Borrowings

Secured Borrowings	12 Months Ended
	Dec. 31, 2019
Secured Borrowings
Secured borrowings	Note 11 – Secured borrowings The following tables present certain characteristics of our secured borrowings: Carrying Value at Lender Asset Class Current Maturity Pricing Facility Size Pledged Assets December 31, 2019 December 31, 2018 JPMorgan Acquired loans, SBA loans August 2020 1M L + 2.00 to 2.50% $ 250,000 $ 207,030 $ 88,972 $ 68,417 Keybank Freddie Mac loans February 2020 1M L + 1.50% 125,000 21,775 21,513 22,973 East West Bank SBA loans July 2020 Prime - 0.821 to + 0.29% 50,000 16,992 13,294 27,443 Credit Suisse Acquired loans (non USD) December 2021 Euribor + 2.50% 224,500 (a) 52,500 37,646 — FCB Acquired loans June 2021 2.75% 1,399 1,778 1,354 2,974 Comerica Bank Residential loans April 2020 1M L + 1.75% 100,000 60,303 56,822 40,231 TBK Bank Residential loans July 2020 Variable Pricing 100,000 53,577 52,151 — Origin Bank Residential loans May 2020 Variable Pricing 50,000 16,275 15,343 12,870 Associated Bank Residential loans November 2020 1M L + 1.50% 40,000 6,508 5,823 15,907 East West Bank Residential MSRs September 2023 1M L + 2.50% 50,000 61,304 39,900 8,500 Credit Suisse Purchased future receivables June 2021 1M L + 4.50% 50,000 43,265 34,900 — Rabobank Real estate January 2021 4.22% 14,500 19,950 12,485 — Total borrowings under credit facilities (b) $ 1,055,399 $ 561,257 $ 380,203 $ 199,315 Citibank Fixed rate, Transitional, Acquired loans August 2020 1M L + 1.875 to 2.125% $ 500,000 $ 194,474 $ 124,718 $ 194,117 Deutsche Bank Fixed rate, Transitional loans November 2021 3M L + 2.00 to 2.40% 425,000 182,757 141,356 239,972 JPMorgan Transitional loans February 2020 1M L + 2.25 to 4.00% 275,000 344,656 250,466 96,343 JPMorgan MBS April 2020 3.15 to 4.52% 93,715 129,268 93,715 24,881 Deutsche Bank MBS February 2020 3.42 to 3.93% 44,730 60,120 44,730 17,425 Citibank MBS February 2020 3.10 to 4.14% 56,189 77,355 56,189 — Bank of America MBS January 2020 2.44 to 2.74% 38,954 44,412 38,954 — RBC MBS April 2020 3.39 to 3.71% 59,061 74,161 59,061 62,494 Total borrowings under repurchase agreements (c) $ 1,492,649 $ 1,107,203 $ 809,189 $ 635,232 Total secured borrowings $ 2,548,048 $ 1,668,460 $ 1,189,392 $ 834,547 (a) The current facility size is €200.0 million, but has been converted into USD for purposes of this disclosure. (b) The weighted average interest rate of borrowings under credit facilities was 4.0% and 4.6% as of December 31, 2019 and 2018, respectively. (c) The weighted average interest rate of borrowings under repurchase agreements was 4.2% and 4.0% as of December 31, 2019 and 2018, respectively. The following table presents the carrying value of the Company’s collateral pledged with respect to secured borrowings outstanding with our lenders: Pledged Assets (In Thousands) December 31, 2019 December 31, 2018 Collateral pledged - borrowings under credit facilities Loans, net $ 436,738 $ 215,533 Mortgage servicing rights 61,304 63,479 Purchased future receivables 43,265 — Real estate, held for sale 19,950 — Total collateral pledged on borrowings under credit facilities $ 561,257 $ 279,012 Collateral pledged - borrowings under repurchase agreements Loans, net $ 721,887 $ 685,274 Mortgage backed securities 113,436 112,552 Retained interest in assets of consolidated VIEs 271,880 35,684 Total collateral pledged on borrowings under repurchase agreements $ 1,107,203 $ 833,510 Total collateral pledged on secured borrowings $ 1,668,460 $ 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 December 31, 2019 and 2018.

Senior secured notes, convertib

Senior secured notes, convertible notes, and corporate debt, net	12 Months Ended
	Dec. 31, 2019
Senior secured notes, convertible notes, and corporate debt, net
Senior secured notes, convertible notes, and corporate debt, net	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 December 31, 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 Convertible Notes will be convertible by holders into shares of the Company's common stock at an initial conversion rate of 1.4997 shares of common stock per $25 principal amount of the Convertible Notes, which is equivalent to an initial conversion price of approximately $16.67 per share of common stock. Upon conversion, holders will receive, at the Company's discretion, cash, shares of the Company's common stock or a combination thereof. The Company may redeem all or any portion of the Convertible Notes, at its option, on or after August 15, 2021, at a redemption price payable in cash equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest. Additionally, upon the occurrence of certain corporate transactions, holders may require the Company to purchase the Convertible Notes for cash at a purchase price equal to 100% of the principal amount of the Convertible Notes to be purchased, plus accrued and unpaid interest. The Convertible Notes will be convertible only upon satisfaction of one or more of the following conditions: (1) the closing market price of the Company’s common stock is greater than or equal to 120% of the conversion price of the respective Convertible Notes for at least 20 out of 30 days prior to the end of the preceding fiscal quarter, (2) the trading price of the Convertible Notes is less than 98% of the product of (i) the conversion rate and (ii) the closing price of the Company’s common stock during any five consecutive trading day period, (3) the Company issues certain equity instruments at less than the 10-day average closing market price of its common stock or the per-share value of certain distributions exceeds the market price of the Company’s common stock by more than 10%, or (4) certain other specified corporate events (significant consolidation, sale, merger share exchange, etc.) occur. At issuance, we allocated $112.7 million and $2.3 million of the carrying value of the Convertible Notes to its debt and equity components, respectively, before the allocation of deferred financing costs. As of December 31, 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 ( the “2021 Notes”). The Company issued the 2021 Notes under a base indenture, dated August 9, 2017, as supplemented by the second supplemental indenture, dated as of April 27, 2018, between the Company and U.S. Bank National Association, as trustee. The 2021 Notes bear interest at a rate of 6.50% per annum, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, beginning on July 30, 2018. The 2021 Notes will mature on April 30, 2021, unless earlier redeemed or repurchased. The Company may redeem for cash all or any portion of the 2021 Notes, at its option, on or after April 30, 2019 and before April 30, 2020 at a redemption price equal to 101% of the principal amount of the 2021 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. On or after April 30, 2020, the Company may redeem for cash all or any portion of the 2021 Notes, at its option, at a redemption price equal to 100% of the principal amount of the 2021 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes a change of control repurchase event, holders may require it to purchase the 2021 Notes, in whole or in part, for cash at a repurchase price equal to 101% of the aggregate principal amount of the 2021 Notes to be purchased, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase, as described in greater detail in the Indenture. The 2021 Notes are the Company’s senior direct unsecured obligations and will not be guaranteed by any of its subsidiaries, except to the extent described in the Indenture upon the occurrence of certain events. The 2021 Notes rank equal in right of payment to any of the Company’s existing and future unsecured and unsubordinated indebtedness; effectively junior in right of payment to any of its existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness, other liabilities (including trade payables) and (to the extent not held by the Company) preferred stock, if any, of its subsidiaries. On July 22, 2019, the Company completed the public offer and sale of $57.5 million aggregate principal amount of its 6.20% Senior Notes due 2026 (the “2026 Notes” and together with the 2021 Notes, the “Corporate Debt”), which includes $7.5 million aggregate principal amount of the 2026 Notes relating to the full exercise of the underwriters’ over-allotment option. The net proceeds from the sale of the 2026 Notes are approximately $55.3 million, after deducting underwriters’ discount and estimated offering expenses. The Company will contribute the net proceeds to Sutherland Partners, L.P. (the “Operating Partnership”), its operating partnership subsidiary, in exchange for the issuance by the Operating Partnership of a senior unsecured note with terms that are substantially equivalent to the terms of the 2026 Notes. The Operating Partnership intends to use the net proceeds to originate or acquire the Company’s target assets and for general business purposes. The 2026 Notes bear interest at a rate of 6.20% per annum, payable quarterly in arrears on January 30, April 30, July 30, and October 30 of each year, beginning on October 30, 2019. The 2026 Notes will mature on July 30, 2026, unless earlier repurchased or redeemed. The Company may redeem for cash all or any portion of the 2026 Notes, at its option, on or after July 30, 2022 and before July 30, 2025 at a redemption price equal to 101% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. On or after July 30, 2025, the Company may redeem for cash all or any portion of the 2026 Notes, at its option, at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes a change of control repurchase event, holders may require it to purchase the 2026 Notes, in whole or in part, for cash at a repurchase price equal to 101% of the aggregate principal amount of the 2026 Notes to be purchased, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase, as described in greater detail in the Indenture. The 2026 Notes are the Company’s senior unsecured obligations and will not be guaranteed by any of its subsidiaries, except to the extent described in the Indenture upon the occurrence of certain events. The 2026 Notes rank equal in right of payment to any of the Company’s existing and future unsecured and unsubordinated indebtedness; effectively junior in right of payment to any of its existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness, other liabilities (including trade payables) and (to the extent not held by the Company) preferred stock, if any, of its subsidiaries. On December 2, 2019, the Company completed the public offer and sale of $45.0 million aggregate principal amount of the 2026 Notes. The new notes have the same terms (expect with respect to issue date, issue price and the date from which interest will accrue) as, are fully fungible with and are treated as a single series of debt securities as, the 6.20% Senior Notes due 2026 the Company issued on July 22, 2019. As of December 31, 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, in the consolidated balance sheet: (in thousands, except rates) Coupon Rate Maturity Date December 31, 2019 Senior secured notes principal amount (1) 7.50 % 2/15/2022 $ 180,000 Unamortized premium - Senior secured notes 1,667 Unamortized deferred financing costs - Senior secured notes (2,378) Total Senior secured notes, net $ 179,289 Convertible notes - principal amount (2) 7.00 % 8/15/2023 115,000 Unamortized discount - Convertible notes (3) (1,446) Unamortized deferred financing costs - Convertible notes (2,514) Total Convertible notes, net $ 111,040 Corporate debt principal amount (4) 6.50 % 4/30/2021 $ 50,000 Corporate debt principal amount (5) 6.20 % 7/30/2026 104,250 Unamortized discount - Corporate debt 433 Unamortized deferred financing costs - Corporate debt (4,697) Total Corporate debt, net $ 149,986 Total carrying amount of debt components $ 440,315 Total carrying amount of conversion option of equity components recorded in equity $ 1,446 (1) Interest on the Senior Secured Notes is payable semiannually on each February 15 and August 15, beginning on August 15, 2017. (2) Interest on the Convertible Notes is payable quarterly on February 15, May 15, August 15, and November 15 of each year, beginning on November 15, 2017. (3) Represents the discount created by separating the conversion option from the debt host instrument. (4) Interest on the corporate debt is payable January 30, April 30, July 30, and October 30 of each year, beginning on July 30, 2018. (5) Interest on the corporate debt is payable January 30, April 30, July 30, and October 30 of each year, beginning on October 30, 2019. The following table presents the contractual maturities of the Senior Secured Notes, Convertible Notes, and Corporate debt: (In Thousands) December 31, 2019 2020 $ — 2021 49,143 2022 179,289 2023 111,040 2024 — Thereafter 100,843 Total $ 440,315

Guaranteed loan financing

Guaranteed loan financing	12 Months Ended
	Dec. 31, 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 in the consolidated balance sheets and the portion sold is recorded as guaranteed loan financing in the liabilities section of the 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 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 December 31, 2019 5.45 % 1.70 - 7.50 % 2020 - 2044 $ 485,461 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) December 31, 2019 2020 $ 537 2021 1,647 2022 2,534 2023 3,697 2024 4,930 Thereafter 472,116 Total $ 485,461 Our guaranteed loan financings are secured by loans of $487.2 million and $232.4 million as of December 31, 2019 and 2018, respectively.

Variable interest entities and

Variable interest entities and securitization activities	12 Months Ended
	Dec. 31, 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 our acquired and originated 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 in 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 in the consolidated balance sheets. The following table presents additional information on the Company’s securitized debt obligations: December 31, 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 $ 6,399 $ 6,399 5.5 % $ 12,226 $ 12,226 5.4 % ReadyCap Lending Small Business Trust 2015-1 — — — 3,397 1,180 3.4 ReadyCap Lending Small Business Trust 2019-2 131,032 129,007 4.3 — — — Sutherland Commercial Mortgage Trust 2017-SBC6 42,309 41,486 3.4 69,764 68,574 3.3 Sutherland Commercial Mortgage Trust 2018-SBC7 138,235 136,212 4.7 205,451 202,491 4.7 Sutherland Commercial Mortgage Trust 2019-SBC8 219,617 216,981 2.9 — — — ReadyCap Commercial Mortgage Trust 2014-1 18,626 18,632 5.6 36,108 36,129 4.5 ReadyCap Commercial Mortgage Trust 2015-2 64,239 61,443 4.5 110,497 106,755 4.2 ReadyCap Commercial Mortgage Trust 2016-3 32,269 30,777 4.7 63,945 62,053 3.7 ReadyCap Commercial Mortgage Trust 2018-4 121,179 117,428 3.9 144,701 140,314 3.9 ReadyCap Commercial Mortgage Trust 2019-5 309,296 299,273 4.1 — — — ReadyCap Commercial Mortgage Trust 2019-6 379,400 371,939 3.2 — — — Ready Capital Mortgage Financing 2017-FL1 — — — 63,615 61,902 3.7 Ready Capital Mortgage Financing 2018-FL2 115,381 114,057 3.8 217,057 213,743 3.4 Ready Capital Mortgage Financing 2019-FL3 267,904 264,249 3.5 — — — Total $ 1,845,886 $ 1,807,883 3.7 % $ 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) December 31, 2019 December 31, 2018 Assets: Cash and cash equivalents $ 23 $ — Restricted cash 8,301 11,643 Loans, net 2,326,199 1,220,974 Loans, held for sale, at fair value 4,434 — Due from servicers 27,964 11,514 Accrued interest 11,565 6,750 Real estate, held for sale — 176 Total assets $ 2,378,486 $ 1,251,057 Liabilities: Securitized debt obligations of consolidated VIEs, net 1,815,154 905,367 Total liabilities $ 1,815,154 $ 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 December 31, 2019 and 2018: Carrying Maximum (1) (In Thousands) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Assets: Mortgage backed securities, at fair value (2) $ 66,108 $ 75,591 $ 66,108 $ 75,591 Investment in unconsolidated joint ventures 58,850 33,438 58,850 33,438 Total assets in unconsolidated VIEs $ 124,958 $ 109,029 $ 124,958 $ 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 dates. (2) Retained interest in Freddie Mac sponsored securitizations.

Interest income and interest ex

Interest income and interest expense	12 Months Ended
	Dec. 31, 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 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: Year Ended December 31, (In Thousands) 2019 2018 2017 Interest income Loans Acquired SBA 7(a) loans $ 20,687 $ 32,278 $ 37,110 Acquired loans 61,832 46,154 34,720 Originated Transitional loans 69,217 48,499 25,323 Originated SBC loans, at fair value 1,383 3,599 7,769 Originated SBC loans 51,617 24,948 22,564 Originated SBA 7(a) loans 11,409 4,428 998 Acquired Transitional loans 2,047 — — Originated Residential Agency loans 75 51 255 Total loans (1) $ 218,267 $ 159,957 $ 128,739 Held for sale, at fair value, loans Originated Residential Agency loans $ 4,328 $ 3,747 $ 3,723 Originated Freddie loans 1,008 1,428 1,507 Acquired loans 217 153 993 Total loans, held for sale, at fair value (1) $ 5,553 $ 5,328 $ 6,223 Mortgage backed securities, at fair value 6,096 4,214 3,343 Total interest income $ 229,916 $ 169,499 $ 138,305 Interest expense Secured borrowings $ (48,955) $ (35,331) $ (26,092) Securitized debt obligations of consolidated VIEs (69,152) (36,988) (23,387) Guaranteed loan financing (5,125) (11,613) (13,435) Senior secured note (13,920) (13,702) (8,069) Convertible note (8,752) (8,748) (3,427) Corporate debt (5,922) (2,706) — Promissory note (54) (150) (236) Total interest expense $ (151,880) $ (109,238) $ (74,646) Net interest income before provision for loan losses $ 78,036 $ 60,261 $ 63,659 (1) Includes interest income on loans in consolidated VIEs.

Derivative instruments

Derivative instruments	12 Months Ended
	Dec. 31, 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 in the 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 in the 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 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 in the consolidated financial statements. Notional amounts included in the table are the average notional amounts on the 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 summarizes our derivatives, by type, as of December 31, 2019 and December 31, 2018: As of December 31, 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 Interest rate lock commitments Interest rate risk $ 238,283 $ 2,814 $ — $ 144,799 $ 1,775 $ — Interest Rate Swaps - not designated as hedges Interest rate risk 291,001 — (3,181) 411,811 — (2,349) Interest Rate Swaps - designated as hedges Interest rate risk 158,325 — (1,709) 134,325 — (1,276) Credit Default Swaps Credit Risk 15,000 — (110) 15,000 295 — FX forwards Foreign exchange rate risk 15,000 — (250) — — — Total $ 717,609 $ 2,814 $ (5,250) $ 705,935 $ 2,070 $ (3,625) The following tables summarize the gains and losses on the Company’s derivatives: Year Ended December 31, 2019 Year Ended December 31, 2018 Net Realized Unrealized Net Realized Unrealized (In Thousands) (Loss) Gain (Loss) (Loss) Gain (Loss) Credit default swaps (1) $ — $ (404) $ (703) $ 862 Interest rate swaps (1)(2) (6,221) (1,747) 4,272 (5,323) Residential mortgage banking activities interest rate swaps (3) — 483 — (783) Interest rate lock commitments (3) — 1,038 — (51) FX forwards (1) — (250) — — Total $ (6,221) $ (880) $ 3,569 $ (5,295) (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) $ (513) $ — $ (513) $ (6,237) $ (5,724) Total - Year Ended December 31, 2019 $ (513) $ — $ (513) $ (6,237) $ (5,724) Hedge type Interest rate - forecasted transactions (1) $ — $ — $ — $ (954) $ (954) Total - Year Ended December 31, 2018 $ — $ — $ — $ (954) $ (954) (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, held for sale

Real estate, held for sale	12 Months Ended
	Dec. 31, 2019
Real estate, held for sale
Real estate, held for sale	Note 17 – Real estate, held for sale The following table summarizes the carrying amount of the Company’s real estate holdings as of the consolidated balance sheet dates: (In Thousands) December 31, 2019 December 31, 2018 Acquired ORM Portfolio: Retail $ 19,950 $ — Mixed Use 17,478 — Land 7,919 — Lodging/Residential 6,280 — Office 1,256 — Total Acquired ORM REO $ 52,883 $ — Other REO held for sale: Office $ 4,465 6,719 SBA 286 23 Mixed Use 279 279 Retail 660 191 Single Family — 368 Multi-Family — 207 Total Other REO $ 5,690 $ 7,787 Total Real estate, held for sale $ 58,573 $ 7,787

Agreements and transactions wit

Agreements and transactions with related parties	12 Months Ended
	Dec. 31, 2019
Agreements and transactions with related parties
Agreements and transactions with related parties	Note 18 – Agreements and transactions with related parties Management Agreement The Company has entered into a management agreement with our Manager (the “Management Agreement”), which describes the services to be provided to us by our Manager and compensation for such services. Our 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 Year Ended December 31, 2019 2018 Management fee - total $ 9.6 million $ 8.2 million Management fee - amount unpaid $ 2.6 million $ 2.1 million Incentive distribution Our 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 the 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 the 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 Year Ended December 31, 2019 2018 Incentive fee distribution - total $ 0.1 million $ 1.1 million Incentive fee distribution - amount unpaid $ 0.1 million $ 0.5 million 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 our 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 our Manager is not fair, subject to our 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. Additionally, upon such a termination by the Company without cause (or upon termination by the Manager due to the Company’s material breach), the management agreement provides that the Company will pay the Manager a termination fee equal to three times the average annual base management fee earned by our Manager during the prior 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, except upon an internalization. Additionally, if the management agreement is terminated under circumstances in which the Company is obligated to make a termination payment to the Manager, the operating partnership shall repurchase, concurrently with such termination, the Class A special unit for an amount equal to three times the average annual amount of the incentive distribution paid or payable in respect of the Class A special unit during the 24-month period immediately preceding such termination, calculated as of the end of the most recently completed fiscal quarter before the date of termination. The current term of the Management Agreement will expire on October 31, 2020 and is automatically renewed for successive one-year terms on each anniversary thereafter; provided, however, that either the Company, under the certain limited circumstances described above that would require the Company and the operating partnership to make the payments described above, or the Manager may terminate the Management Agreement annually upon 180 days prior notice. Expense reimbursement In addition to the management fees and incentive distribution described above, the Company is also responsible for reimbursing our Manager for certain expenses paid by our Manager on behalf of the Company and for certain services provided by our Manager to the Company. Expenses incurred by our Manager and reimbursed by us are typically included in salaries and benefits or general and administrative expense in the consolidated statements of income. The following table presents certain information on reimbursable expenses payable to our Manager: For the Year Ended December 31, 2019 2018 Reimbursable expenses payable to our Manager - total $ 7.0 million $ 4.9 million Reimbursable expenses payable to our Manager - amount unpaid $ 4.2 million $ 3.1 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	12 Months Ended
	Dec. 31, 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 consolidated balance sheet dates. (In Thousands) December 31, 2019 December 31, 2018 Other assets: Deferred tax asset $ 31,803 $ 18,084 Tax receivable 4,019 — Deferred loan exit fees 13,039 8,668 Accrued interest 10,583 7,253 Due from servicers 10,127 7,284 Right-of-use lease asset 4,531 — Goodwill 11,206 — Intangible assets 8,309 2,915 Deferred financing costs 2,046 2,564 Other assets 11,262 17,567 Total other assets $ 106,925 $ 64,335 Accounts payable and other accrued liabilities: Deferred tax liability $ 18,757 $ 19,972 Accrued salaries, wages and commissions 21,146 19,925 Accrued interest payable 17,305 14,244 Servicing principal and interest payable 14,145 10,582 Repair and denial reserve 5,179 5,524 Payable to related parties 2,697 2,580 Accrued professional fees 1,809 1,618 Other liabilities 16,369 274 Total accounts payable and other accrued liabilities $ 97,407 $ 74,719 Intangible assets The following table presents information about the intangible assets held by the Company: (In Thousands) December 31, 2019 December 31, 2018 Estimated Useful Life Internally developed software - Knight Capital $ 3,694 $ — 6 years Broker network - Knight Capital 1,156 — 4.5 years SBA license 1,000 1,000 Indefinite life Favorable lease 905 1,063 12 years Trade name - Knight Capital 855 — 6 years Trade name - GMFS 699 852 15 years Total Intangible Assets $ 8,309 $ 2,915 Amortization expense related to the intangible assets previously acquired for the years ended December 31, 2019 and 2018 was $0.5 million and $0.4 million, respectively. Such amounts are recorded as other operating expenses in the consolidated statements of income. At December 31, 2019, accumulated amortization for finite-lived intangible assets is as follows: (In Thousands) December 31, 2019 Favorable lease $ 575 Trade name - GMFS 524 Internally developed software - Knight Capital 106 Broker network - Knight Capital 44 Trade name - Knight Capital 25 Total Accumulated Amortization $ 1,274 Amortization expense related to the finite-lived intangible assets for the five years subsequent to December 31, 2019 is as follows: (In Thousands) December 31, 2019 2020 $ 1,323 2021 1,295 2022 1,268 2023 1,242 2024 1,210 Thereafter 971 Total $ 7,309 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 consolidated balance sheets and the provision for loan indemnification losses is included in variable expenses on residential mortgage banking activities, in the Company's 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 December 31, 2019 and 2018, the loan indemnification reserve was $2.1 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 December 31, 2019 and 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	12 Months Ended
	Dec. 31, 2019
Other income and operating expenses
Other income and operating expenses	Note 20 – Other income and operating expenses The following table details the Company’s other income and operating expenses for the consolidated statements of income. For the Year Ended December 31, (In Thousands) 2019 2018 2017 Other income Origination income $ 5,860 $ 4,590 $ 4,302 Release of repair and denial reserve 345 163 1,013 Other 4,873 833 2,095 Total other income $ 11,078 $ 5,586 $ 7,410 Other operating expenses Origination costs $ 10,168 $ 7,752 $ 6,862 Technology expense 4,834 3,624 3,692 Charge off of real estate 1,317 1,086 756 Rent and property tax expense 4,310 2,524 2,314 Recruiting, training and travel expense 2,352 2,287 2,389 Marketing expense 2,052 2,433 1,629 Loan acquisition costs 575 1,458 600 Financing costs on purchased future receivables 376 — — Other 7,178 7,583 8,697 Total other operating expenses $ 33,162 $ 28,747 $ 26,939

Stockholders Equity

Stockholders Equity	12 Months Ended
	Dec. 31, 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 January 1, 2018 through December 31, 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 September 10, 2019 September 30, 2019 October 31, 2019 $ 0.40 December 11, 2019 December 31, 2019 January 31, 2020 $ 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 our 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 year ended December 31, 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) 14.07 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 Granted — — — Vested (6,336) (100) 15.79 Forfeited — — — Canceled — — — Outstanding, September 30, 2019 167,399 $ 2,547 $ 15.21 Granted 865,854 13,525 15.62 Vested (23,636) (350) 14.81 Forfeited — — — Canceled — — — Outstanding, December 31, 2019 1,009,617 $ 15,722 $ 15.57 At December 31, 2018, there were 23,104 of fully vested RSUs that were not yet issued as common stock. At December 31, 2019 all vested RSUs have been issued as common stock. During the year ended December 31, 2019 and 2018, the Company recognized $1.5 million and $0.6 million of noncash compensation expense related to its stock-based incentive plan in our consolidated statements of income, respectively. At December 31, 2019 and 2018, approximately $15.7 million and $1.2 million of noncash compensation expense related to unvested awards had not yet been charged to net income. 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	12 Months Ended
	Dec. 31, 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. Year Ended December 31, (In Thousands, except for share and per share amounts) 2019 2018 2017 Basic Earnings Net income $ 75,056 $ 61,457 $ 45,814 Less: Income attributable to non-controlling interest 2,088 2,199 2,524 Less: Income attributable to participating shares 653 217 62 Basic earnings $ 72,315 $ 59,041 $ 43,228 Diluted Earnings Net income $ 75,056 $ 61,457 $ 45,814 Less: Income attributable to non-controlling interest 2,088 2,199 2,524 Less: Income attributable to participating shares 653 217 62 Diluted earnings $ 72,315 $ 59,041 $ 43,228 Number of Shares Basic — Average shares outstanding 42,011,750 32,085,975 31,350,102 (1) Effect of dilutive securities — Unvested participating shares 35,898 16,209 1,509 Diluted — Average shares outstanding 42,047,648 32,102,184 31,351,611 Earnings Per Share Attributable to RC Common Stockholders: Basic $ 1.72 $ 1.84 $ 1.38 Diluted 1.72 1.84 1.38 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 December 31, 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 December 31, 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 December 31, 2019 and 2018, the non-controlling interest OP unit holders owned 1,117,169, OP units.

Offsetting assets and liabiliti

Offsetting assets and liabilities	12 Months Ended
	Dec. 31, 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 December 31, 2019 and 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 in the 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 consolidated balance sheets to enable users of the consolidated financial statements to evaluate the effect or potential effect of netting arrangements on its financial position for recognized assets and liabilities. These recognized assets and liabilities are financial instruments and derivative instruments that are either subject to enforceable master netting arrangements or ISDA Master Agreements or meet the following right of setoff criteria: (a) the amounts owed by the Company to another party are determinable, (b) the Company has the right to set off the amounts owed with the amounts owed by the counterparty, (c) the Company intends to offset, and (d) the Company’s right of offset is enforceable at law. As of December 31, 2019 and 2018, the Company has elected to offset assets and liabilities associated with its OTC derivative contracts in the consolidated balances sheets. The following tables provide disclosure regarding the effect of offsetting the Company’s recognized assets and liabilities presented in the consolidated balance sheets: Gross amounts not offset in the Consolidated Balance Sheets (1) (in thousands) Gross amounts of recognized Assets / Liabilities Gross amounts offset in the Consolidated Balance Sheets Amounts presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received / Paid Net Amount December 31, 2019 Assets Interest rate swaps $ 2,814 $ — $ 2,814 $ — $ 2,814 $ — Total $ 2,814 $ — $ 2,814 $ — $ 2,814 $ — Liabilities Interest rate swaps $ 4,890 $ — $ 4,890 $ — $ 4,890 $ — Credit default swaps 110 — 110 — 110 — FX forwards 250 250 — 250 — Secured borrowings 1,189,392 — 1,189,392 1,189,392 — — Total $ 1,194,642 $ — $ 1,194,642 $ 1,189,392 $ 5,250 $ — December 31, 2018 Assets Credit default swaps $ $ — $ 295 $ — $ 295 $ — Total $ 295 $ — $ 295 $ — $ 295 $ — Liabilities 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.

Financial Instruments with off-

Financial Instruments with off-balance sheet risk, credit risk, and certain other risks	12 Months Ended
	Dec. 31, 2019
Financial Instruments 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	12 Months Ended
	Dec. 31, 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 consolidated financial statements. Unfunded Loan Commitments As of December 31, 2019 and December 31, 2018, unfunded loan commitments for SBC loans were as follows: December 31, December 31, (In Thousands) 2019 2018 Loans, net $ 128,719 $ 161,746 Loans, held for sale at fair value $ 6,982 $ 4,895 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 December 31, 2019 and 2018, total commitments to originate loans were as follows: December 31, December 31, (In Thousands) 2019 2018 Commitments to originate residential agency loans $ 190,806 $ 124,020

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Taxes
Income Taxes	Note 26 – Income Taxes The Company is a REIT pursuant to Internal Revenue Code 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 December 31, 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 that would not be qualifying income if earned directly by the parent REIT, 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. 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. The Tax Cuts and Jobs Act (the Tax Act) was signed into law on December 22, 2017. The Tax Act changed many aspects of U.S. corporate income taxation, including a reduction of the corporate income tax rate from 35% to 21%, implementation of a territorial tax system, and imposition of a tax on deemed repatriated earnings of foreign subsidiaries. We recognized the tax effects of the Tax Act in our year ended December 31, 2017 results and recorded a $1.0 million income tax benefit which relates entirely to the re-measurement of deferred tax balances to the 21% tax rate. As of December 31, 2018, our accounting for the implications of the Tax Act was complete. Our income tax provision consists of the following: Year Ended December 31, (In Thousands) 2019 2018 2017 Current Federal income tax (benefit) $ 523 $ 356 $ (1,235) State and local income tax (benefit) 47 169 (171) Net current tax provision (benefit) 570 525 (1,406) Deferred Federal income tax (benefit) (9,739) 1,167 3,779 State and local income tax (benefit) (1,383) (306) 613 Valuation allowance — — (1,147) Net deferred tax provision (benefit) (11,122) 861 3,245 Total income tax provision (benefit) $ (10,552) $ 1,386 $ 1,839 The following table is a reconciliation of our federal income tax determined using our statutory federal tax rate to our reported income tax provision for the years ended December 31, 2019 and 2018: Year Ended December 31, (In Thousands) 2019 2018 U.S. statutory tax $ 13,579 21.0 % $ 13,207 21.0 % State and local income tax (benefit) (1,717) (2.6) 464 0.7 Income attributable to REIT (19,641) (30.4) (11,274) (17.9) Income attributable to Non-controlling interests (462) (0.7) (400) (0.6) Nondeductible (2,692) (4.2) (194) (0.3) Change in tax rate 381 0.6 (554) (0.9) Return to Provision — — (11) — Other — — 148 0.2 Effective income tax (benefit) $ (10,552) (16.3) % $ 1,386 2.2 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are presented net by tax jurisdiction and are reported in other assets and other liabilities, respectively. The following table presents the tax effects of temporary differences on their respective net deferred tax assets and liabilities: (In Thousands) December 31, 2019 December 31, 2018 Deferred tax assets: Net operating loss carryforwards $ 23,277 $ 8,408 Unrealized losses 40 1,442 Accruals 2,917 2,815 Depreciation and amortization 1,379 986 Goodwill 3,702 3,927 Compensation 248 279 Other 240 227 Total deferred tax assets $ 31,803 $ 18,084 Deferred tax liabilities: Loan / servicing rights balance $ 17,793 $ 19,210 Derivative instruments 439 133 Other taxable temporary difference 525 629 Total deferred tax liabilities $ 18,757 $ 19,972 Net deferred tax assets (liabilities) $ 13,046 $ (1,888) The Company has approximately $90.7 million of federal and $198.0 million of state net operating loss carryforwards which have expiration dates beginning 2033, with certain amounts having no expiration. We recognize deferred tax assets and liabilities for the future tax consequences arising from differences between the carrying amounts of existing assets and liabilities under GAAP and their respective tax bases. We evaluate our deferred tax assets for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including our historical profitability and projections of future taxable income. As of December 31, 2019, we continued to conclude that the positive evidence in favor of the recoverability of our deferred tax asset outweighed the negative evidence and that it is more likely than not that our deferred tax assets will be realized. Our framework for assessing the recoverability of deferred tax assets requires us to weigh all available evidence, including the sustainability of recent profitability required to realize the deferred tax assets, the cumulative net income in our consolidated statements of income in recent years, the future reversals of existing taxable temporary differences, and the carryforward periods for any carryforwards of net operating losses. The difference between the statutory rate of 21% and the effective income tax rate is primarily due to state and local taxes. As of December 31, 2019 and 2018, the Company had no uncertain tax positions recorded or disclosed in the financial statements. Additionally, it is the belief of management that the total amount of uncertain tax positions, if any, will not materially change over the next 12 months. Our major tax jurisdictions where we file income tax returns include Federal, New York State and New York City. Our 2016 and forward tax years are subject to examination. The TRS major tax jurisdictions are Federal, Louisiana, New York City, New Jersey and California. For Federal and state purposes, with the exception of New Jersey, the TRS entities are subject to examination for the 2016 and forward tax years. For New Jersey, the TRS entities are subject to examination for the 2015 and forward tax years.

Segment Reporting

Segment Reporting	12 Months Ended
	Dec. 31, 2019
Segment Reporting
Segment Reporting	Note 27 – Segment reporting The Company reports its results of operations through the following four business segments: i) Acquisitions , ii) SBC Originations , iii) SBA Originations, Acquisitions and Servicing , and iv) Residential Mortgage Banking . The Company’s organizational structure is based on a number of factors that the Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, uses to evaluate, view, and run its business operations, which includes customer base and nature of loan program types. The segments are based on this organizational structure and the information reviewed by the CODM and management to evaluate segment results. Acquisitions Through the acquisitions segment, the Company acquires performing and non-performing SBC loans and intends to continue to acquire these loans as part of the Company’s business strategy. The Company also acquires purchased future receivables through our Knight Capital platform. SBC originations Through the SBC originations segment, the Company originates SBC loans secured by stabilized or transitional investor properties using multiple loan origination channels. Additionally, as part of this segment, we originate and service multi-family 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. Segment Realignment Effective at the beginning of the third quarter of 2017, the Company implemented organizational changes to align its segment financial reporting more closely with its current business practices. Securitization activities on originated SBC and SBA loans were transferred out of the Acquisitions segment and into either the SBC originations or SBA originations, acquisitions, and servicing segment, based on loan type. The other change presents Corporate- Other amounts separately and no longer reflects these amounts as part of the four business segments. Prior period numbers were revised to conform to the new segment alignment and to be consistent with our current period’s presentation. Results of business segments and all other Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the year ended December 31, 2019 are summarized in the below table. SBA Originations, Residential SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 65,922 $ 127,495 $ 32,096 $ 4,403 $ — $ 229,916 Interest expense (40,502) (90,677) (14,864) (5,837) — (151,880) Net interest income before provision for loan losses $ 25,420 $ 36,818 $ 17,232 $ (1,434) $ — $ 78,036 Provision for loan losses (808) (319) (2,557) — — (3,684) Net interest income after provision for loan losses $ 24,612 $ 36,499 $ 14,675 $ (1,434) $ — $ 74,352 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 83,539 $ — $ 83,539 Net realized gain on financial instruments 18 13,750 15,190 — — 28,958 Net unrealized gain (loss) on financial instruments (254) (107) 393 (18,569) (253) (18,790) Servicing income 798 1,898 5,330 22,639 — 30,665 Income on purchased future receivables, net of allowance for doubtful accounts 2,362 — — — — 2,362 Income from unconsolidated joint ventures 6,088 — — — — 6,088 Other income 4,210 4,907 1,548 249 164 11,078 Gain on bargain purchase — — — — 30,728 30,728 Total non-interest income $ 13,222 $ 20,448 $ 22,461 $ 87,858 $ 30,639 $ 174,628 Non-interest expense Employee compensation and benefits (1,855) (6,905) (16,255) (22,882) (3,340) (51,237) Allocated employee compensation and benefits from related party (547) — — — (4,926) (5,473) Variable expenses on residential mortgage banking activities — — — (51,760) — (51,760) Professional fees (723) (1,652) (1,011) (1,101) (2,947) (7,434) Management fees – related party — — — — (9,578) (9,578) Incentive fees – related party — — — — (106) (106) Loan servicing expense (4,662) (5,695) (261) (7,225) (133) (17,976) Merger related expenses — — — — (7,750) (7,750) Other operating expenses (4,573) (11,199) (6,591) (7,717) (3,082) (33,162) Total non-interest expense $ (12,360) $ (25,451) $ (24,118) $ (90,685) $ (31,862) $ (184,476) Net income (loss) before provision for income taxes $ 25,474 $ 31,496 $ 13,018 $ (4,261) $ (1,223) $ 64,504 Total assets $ 1,264,226 $ 2,492,156 $ 760,031 $ 330,363 $ 130,242 $ 4,977,018 Reportable segments for the year ended December 31, 2018 are summarized in the below table. SBA Originations, Residential SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 47,243 $ 81,752 $ 36,706 $ 3,798 $ — $ 169,499 Interest expense (28,946) (60,879) (16,218) (3,195) — (109,238) Net interest income before provision for loan losses $ 18,297 $ 20,873 $ 20,488 $ 603 $ — $ 60,261 Provision for loan losses (1,727) (13) 39 — — (1,701) Net interest income after provision for loan losses $ 16,570 $ 20,860 $ 20,527 $ 603 $ — $ 58,560 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 59,852 $ — $ 59,852 Net realized gain on financial instruments 5,023 17,482 15,904 — — 38,409 Net unrealized gain (loss) on financial instruments (1,156) 142 173 5,694 — 4,853 Servicing income 20 1,396 5,390 20,269 — 27,075 Income on unconsolidated joint ventures 12,148 — — — — 12,148 Other income 368 4,366 621 200 31 5,586 Total non-interest income $ 16,403 $ 23,386 $ 22,088 $ 86,015 $ 31 $ 147,923 Non-interest expense Employee compensation and benefits $ (386) $ (8,815) $ (13,077) $ (33,401) $ (923) $ (56,602) Allocated employee compensation and benefits from related party (420) — — — (3,780) (4,200) Variable expenses on residential mortgage banking activities — — — (22,228) — (22,228) Professional fees (1,310) (1,285) (820) (607) (2,977) (6,999) Management fees – related party — — — — (8,176) (8,176) Incentive fees – related party — — — — (1,143) (1,143) Loan servicing expense (3,926) (3,883) (260) (7,444) (32) (15,545) Other operating expenses (3,214) (10,392) (4,070) (8,254) (2,817) (28,747) Total non-interest expense $ (9,256) $ (24,375) $ (18,227) $ (71,934) $ (19,848) $ (143,640) Net income (loss) before provision for income taxes $ 23,717 $ 19,871 $ 24,388 $ 14,684 $ (19,817) $ 62,843 Total assets $ 644,512 $ 1,606,210 $ 455,513 $ 260,523 $ 70,085 $ 3,036,843 Reportable segments for the year ended December 31, 2017 are summarized in the below table. SBA Originations, Residential SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 37,198 $ 59,021 $ 38,108 $ 3,978 $ — $ 138,305 Interest expense (16,741) (35,121) (16,098) (3,145) (3,541) (74,646) Net interest income before provision for loan losses $ 20,457 $ 23,900 $ 22,010 $ 833 $ (3,541) $ 63,659 Provision for loan losses (2,026) (195) (142) — — (2,363) Net interest income after provision for loan losses $ 18,431 $ 23,705 $ 21,868 $ 833 $ (3,541) $ 61,296 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 83,437 $ — $ 83,437 Net realized gain on financial instruments (323) 9,665 9,509 — 478 19,329 Net unrealized gain (loss) on financial instruments 1,628 8,125 1,315 (4,000) (68) 7,000 Servicing income 197 824 4,624 17,349 — 22,994 Income on unconsolidated joint venture 1,048 — — — — 1,048 Other income 1,766 3,983 1,513 148 — 7,410 Total non-interest income $ 4,316 $ 22,597 $ 16,961 $ 96,934 $ 410 $ 141,218 Non-interest expense Employee compensation and benefits (576) (8,509) (10,505) (34,601) (848) (55,039) Allocated employee compensation and benefits from related party (384) — — — (3,459) (3,843) Variable expenses on residential mortgage banking activities — — — (41,737) — (41,737) Professional fees (1,501) (1,351) (1,973) (865) (3,231) (8,921) Management fees – related party — — — — (8,059) (8,059) Incentive fees – related party — — — — — — Loan servicing expense (2,981) (2,355) 1,454 (6,441) — (10,323) Other operating expenses (4,285) (9,666) (4,076) (6,677) (2,235) (26,939) Total non-interest expense $ (9,727) $ (21,881) $ (15,100) $ (90,321) $ (17,832) $ (154,861) Income from continuing operations before provision for income taxes $ 13,020 $ 24,421 $ 23,729 $ 7,446 $ (20,963) $ 47,653 Total Assets $ 511,427 $ 1,154,509 $ 510,006 $ 324,392 $ 23,169 $ 2,523,503

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)	Note 28 – Quarterly Financial Data (Unaudited) The following table summarizes our quarterly financial data which, in the opinion of management, reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of our results of operations (amounts in thousands, except per share amounts): March 31 June 30 September 30 December 31 2019 Net interest income after provision for loan losses $ 12,460 $ 19,933 $ 19,640 $ 22,319 Non-interest income 56,266 32,956 39,984 45,422 Non-interest expense (41,279) (44,600) (49,842) (48,755) Net income 30,450 11,245 12,427 20,934 Net income attributable to Ready Capital Corporation 29,467 10,969 12,104 20,428 Earnings per share - Basic $ 0.90 $ 0.25 $ 0.27 $ 0.43 Earnings per share - Diluted $ 0.90 $ 0.25 $ 0.27 $ 0.43 Dividends declared per share of common stock $ 0.40 $ 0.40 $ 0.40 $ 0.40 2018 Net interest income after provision for loan losses $ 14,317 $ 15,848 $ 14,562 $ 13,833 Non-interest income 42,747 40,288 42,761 22,125 Non-interest expense (35,983) (39,587) (38,859) (29,209) Net income 18,518 15,884 17,569 9,486 Net income attributable to Ready Capital Corporation 17,854 15,296 16,931 9,177 Earnings per share - Basic $ 0.56 $ 0.48 $ 0.53 $ 0.30 Earnings per share - Diluted $ 0.56 $ 0.48 $ 0.53 $ 0.30 Dividends declared per share of common stock $ 0.37 $ 0.40 $ 0.40 $ 0.40 Annual EPS may not equal the sum of each quarter’s EPS due to rounding and other computational factors.

Supplemental Financial Data

Supplemental Financial Data	12 Months Ended
	Dec. 31, 2019
Supplemental Financial Data
Supplemental Financial Data	Note 29 - 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 consolidated financial statements, including condensed financial information for the years ended December 31, 2019 and 2018. Statements of Income Year Ended December 31, 2019 Year Ended December 31, 2018 (In Thousands) Girod HoldCo, LLC WFLLA, LLC Girod HoldCo, LLC WFLLA, LLC Interest income $ 6,922 $ 3,454 $ 21,182 $ 10,570 Realized gains 5,218 2,604 27,310 13,628 Unrealized gains 15,286 7,628 8,191 4,087 Servicing expense and other (5,996) (2,999) (7,972) (3,989) Income before provision for income taxes $ 21,430 $ 10,687 $ 48,711 $ 24,296 During the years ended December 31, 2019 and 2018, the Company recorded $6.1 million and $12.1 million of income, respectively, which is based on our proportional ownership interest in the entities above. This amount is reflected in income from unconsolidated joint ventures within the consolidated statement of income. Year Ended December 31, (In Thousands) 2019 2018 Income on unconsolidated joint ventures WFLLA, LLC $ 5,344 $ 12,148 Other unconsolidated joint ventures 744 — Income on unconsolidated joint ventures $ 6,088 $ 12,148

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2019
Subsequent Events
Subsequent Events	Note 30 – Subsequent events In January 2020, the Company extended one our repurchase agreements pursuant to an amendment to the Letter Agreement. The amended agreement has a maximum advance amount of $425.0 million and extends through June 2020. In February 2020, the Company extended one of our repurchase agreements pursuant to an amendment to the Master Repurchase Agreement. The amended agreement has a maximum advance amount of $400.0 million and extends through December 2020. In February 2020, the Company extended one of our credit facilities pursuant to an amendment to the Warehousing Credit and Security Agreement. The amended agreement has a maximum advance amount of $100.0 million and extends through February 2021.

Schedule IV _ Mortgage Loans on

Schedule IV – Mortgage Loans on Real Estate	12 Months Ended
	Dec. 31, 2019
Schedule IV – Mortgage Loans on Real Estate
Schedule IV – Mortgage Loans on Real Estate	Ready Capital Corporation Schedule IV – Mortgage Loans on Real Estate There are no individual loans that exceed 3% of the total carrying amount of all mortgages. The following table discloses the Company’s mortgage loans on real estate, categorized by product type: Product Type UPB Grouping Loan Count Interest Rate Maturity Date Carrying Value UPB UPB of loans subject to delinquent principal or interest Acquired loans 0 - 500k 0.00 - 11.50% 2004 - 2039 $ 349,845 $ 356,240 $ 30,410 500k - 1mm 3.38 - 10.25% 2019 - 2046 181,026 183,525 11,800 1mm - 1.5mm 1.00 - 9.50% 2020 - 2038 99,088 100,761 2,411 1.5mm - 2mm 3.50 - 7.64% 2020 - 2037 49,034 49,739 1,501 2mm - 2.5mm 5.06 - 7.00% 2020 - 2038 38,045 37,838 - > 2.5mm 3.31 - 11.00% 2020 - 2037 309,161 307,981 9,892 Total Acquired loans 2,214 $ 1,026,199 $ 1,036,083 $ 56,014 Acquired SBA 7(a) loans 0 - 500k 0.00 - 8.75% 2020 - 2041 $ 119,416 $ 138,422 $ 13,657 500k - 1mm 4.75 - 7.75% 2020 - 2041 93,844 100,883 2,532 1mm - 1.5mm 5.50 - 7.75% 2026 - 2042 46,010 48,696 1,444 1.5mm - 2mm 6.00 - 7.75% 2035 - 2042 6,542 6,779 - 2mm - 2.5mm 5.00 - 7.75% 2037 - 2040 6,733 6,732 - > 2.5mm 6.00 - 7.25% 2035 - 2042 34,315 34,881 - Total Acquired SBA 7(a) loans 1,257 $ 306,860 $ 336,393 $ 17,633 Acquired transitional loans 0 - 500k 10 7.00 - 9.34% 2019 - 2028 $ 1,642 $ 1,665 $ - 500k - 1mm 4 5.00 - 7.50% 2019 - 2021 3,026 3,048 - 1mm - 1.5mm 6 7.75 - 9.08% 2019 - 2023 8,130 8,215 2,750 1.5mm - 2mm 5 6.50 - 8.50% 2020 - 2020 8,676 8,708 1,550 2mm - 2.5mm 3 7.75 - 8.00% 2019 - 2020 6,157 6,160 - > 2.5mm 7 5.00 - 9.34% 2019 - 2021 46,131 46,505 6,467 Total Acquired transitional loans 35 $ 73,762 $ 74,302 $ 10,767 Originated transitional loans 0 - 500k 4.85 - 8.83% 2020 - 2026 $ 1,611 $ 1,597 $ - 500k - 1mm 4.92 - 7.00% 2021 - 2024 8,043 8,129 - 1mm - 1.5mm 4.76 - 11.77% 2019 - 2025 14,974 15,291 1,300 1.5mm - 2mm 5.44 - 12.00% 2020 - 2026 15,256 15,332 - 2mm - 2.5mm 5.49 - 6.86% 2020 - 2021 15,204 15,381 - > 2.5mm 4.65 - 8.83% 2018 - 2024 1,029,482 1,037,713 10,132 Total Originated transitional loans 181 $ 1,084,570 $ 1,093,443 $ 11,432 Originated Freddie loans 1mm - 1.5mm 3.73 - 3.73% 2027 - 2027 $ 1,624 $ 1,600 $ - 2mm - 2.5mm 3.59 - 3.59% 2040 - 2040 2,421 2,385 - > 2.5mm 3.86 - 4.39% 2027 - 2030 17,730 17,528 - Total Originated Freddie loans 6 $ 21,775 $ 21,513 $ - Originated Residential Agency loans 0 - 500k 2.13 - 5.99% 2030 - 2058 $ 134,889 $ 130,481 $ 2,812 500k - 1mm 3.75 - 5.50% 2049 - 2050 5,013 4,930 - Total Originated Residential Agency loans 692 $ 139,902 $ 135,411 $ 2,812 Originated SBA 7(a) loans 0 - 500k 6.00 - 8.25% 2023 - 2045 $ 80,682 $ 82,565 $ 2,676 500k - 1mm 6.00 - 8.25% 2026 - 2045 85,023 85,667 592 1mm - 1.5mm 6.25 - 7.75% 2027 - 2044 75,386 76,597 1,062 1.5mm - 2mm 6.00 - 7.75% 2028 - 2044 46,927 47,223 - 2mm - 2.5mm 6.00 - 7.75% 2029 - 2044 25,676 25,407 - > 2.5mm 6.25 - 7.25% 2028 - 2044 91,486 92,349 3,037 Total Originated SBA 7(a) loans 605 $ 405,180 $ 409,808 $ 7,367 Originated SBC loans 0 - 500k 4.80 - 6.86% 2020 - 2043 $ 5,605 $ 5,511 $ - 500k - 1mm 4.50 - 9.39% 2020 - 2029 33,146 32,540 519 1mm - 1.5mm 4.60 - 10.00% 2019 - 2030 75,335 74,293 3,139 1.5mm - 2mm 4.50 - 6.43% 2019 - 2032 83,488 82,337 1,560 2mm - 2.5mm 4.53 - 6.06% 2020 - 2029 73,573 72,543 2,085 > 2.5mm 4.12 - 7.50% 2019 - 2038 899,511 891,925 24,164 Total Originated SBC loans 348 $ 1,170,658 $ 1,159,148 $ 31,467 Originated SBC loans, at fair value 1mm - 1.5mm 6.38 - 6.38% 2026 - 2026 $ 1,499 $ 1,376 $ - 1.5mm - 2mm 5.25 - 5.25% 2027 - 2027 1,754 1,583 - > 2.5mm 5.57 - 7.75% 2019 - 2020 16,959 16,606 - Total Originated SBC loans, at fair value 5 $ 20,212 $ 19,565 $ - General Allowance for Loan Losses (2,424) Total Loans 5,343 $ 4,246,694 $ 4,285,666 $ 137,492 Reconciliation of mortgage loans on real estate: The following tables reconcile mortgage loans on real estate, including loans in consolidated VIEs, from December 31, 2017 to December 31, 2019 ($ in thousands): Loans, net Loans, held for sale, at fair value Total Loan Receivables Balance at December 31, 2016 $ 1,666,680 $ 181,797 $ 1,848,477 Origination of loan receivables 454,975 2,508,153 2,963,128 Purchases of loan receivables 147,327 11,195 158,522 Proceeds from disposition and principal payment of loan receivables (422,059) (2,571,583) (2,993,642) Net realized gain (loss) on sale of loan receivables (3,203) 78,798 75,595 Net unrealized gain (loss) on loan receivables 5,328 3,537 8,865 Accretion/amortization of discount, premium and other fees 13,825 - 13,825 Transfers (4,125) 4,125 - Transfers to real estate, held for sale (2,285) - (2,285) Provision for loan losses (2,363) - (2,363) Balance at December 31, 2017 $ 1,854,100 $ 216,022 $ 2,070,122 Loans, net Loans, held for sale, at fair value Total Loan Receivables Balance at December 31, 2017 $ 1,854,100 $ 216,022 $ 2,070,122 Origination of loan receivables 934,607 2,407,492 3,342,099 Purchases of loan receivables 369,418 17,481 386,899 Proceeds from disposition and principal payment of loan receivables (746,162) (2,586,724) (3,332,886) Net realized gain (loss) on sale of loan receivables (5,454) 63,067 57,613 Net unrealized gain (loss) on loan receivables (720) (2,401) (3,121) Accretion/amortization of discount, premium and other fees 14,474 - 14,474 Transfers (503) 503 - Transfers to real estate, held for sale (3,693) (182) (3,875) Provision for loan losses (1,701) - (1,701) Balance at December 31, 2018 $ 2,414,366 $ 115,258 $ 2,529,624 Loans, net Loans, held for sale, at fair value Total Loan Receivables Balance at December 31, 2018 $ 2,414,366 $ 115,258 $ 2,529,624 Origination of loan receivables 1,307,143 2,621,324 3,928,467 Purchases of loan receivables 739,002 9,149 748,151 Proceeds from disposition and principal payment of loan receivables (826,702) (2,628,521) (3,455,223) Loans acquired as part of ORM merger transaction 130,449 - 130,449 Net realized gain (loss) on sale of loan receivables (5,700) 76,274 70,574 Net unrealized gain (loss) on loan receivables 760 289 1,049 Accretion/amortization of discount, premium and other fees 14,194 - 14,194 Loans consolidated as part of RCLT 2019-2 transaction 463,177 - 463,177 Payment of guaranteed loan financing (177,815) - (177,815) Transfers 1,262 (1,262) - Transfers to real estate, held for sale (2,269) - (2,269) Provision for loan losses (3,684) - (3,684) Balance at December 31, 2019 $ 4,054,183 $ 192,511 $ 4,246,694

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Use of estimates	Use of estimates The preparation of the Company’s 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 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 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 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 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 present 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. As described in Note 27, effective at the beginning of the third quarter of 2017, the Company implemented organizational changes to align its segment financial reporting more closely with its current business practices. These organizational changes resulted in securitization activities on originated SBC and SBA loans being transferred out of the acquisitions segment and into either the SBC originations or SBA originations, acquisitions, and servicing segment, based on the loan type. These organizational changes also resulted in the Company presenting Corporate-Other amounts separately and no longer reflecting these amounts as part of the four business segments. Prior period numbers were revised to conform to the new segment alignment and to be consistent with our current period’s presentation.
Cash and cash equivalents	Cash and cash equivalents The Company accounts for cash and cash equivalents in accordance with ASC 305, Cash and Cash Equivalents. The Company defines cash and cash equivalents as cash, demand deposits, and short-term, highly liquid investments with original maturities of 90 days or less when purchased. Cash and cash equivalents are exposed to concentrations of credit risk. We deposit our cash with institutions that we believe to have highly valuable and defensible business franchises, strong financial fundamentals, and predictable and stable operating environments. 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 December 31, 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.
Short term investments	Short-term investments The Company accounts for short-term investments as trading securities under ASC 320, Investments-Debt and Equity Securities . Short-term investments consist of U.S. Treasury Bills with original maturities of less than a year but greater than three months. The Company holds short-term investments at fair value. Interest received and accrued as well as the accretion of purchase discount in connection with short-term investments is recorded as interest income in the consolidated statements of income. Changes in the fair value of short-term investments are recorded as net unrealized gain (loss) in the consolidated statements of income.
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 the Company that we do not intend to sell, or securitized loans that were previously originated by us. Securitized loans remain on the Company’s balance sheet because the securitization vehicles are consolidated under ASC 810. Acquired loans are recorded at cost at the time they are acquired. Acquired loans are accounted for in accordance with ASC 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality 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 the Company that we do not intend to sell are accounted for under ASC 310-10, Receivables-Overall 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 scores at loan origination (“FICO”), 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 to be not probable. Interest income accrued, but not collected, at the date loans are placed on non-accrual status is reversed and subsequently recognized only to the extent it is received in cash or until the loan qualifies for return to accrual status. However, where there is doubt regarding the ultimate collectability of loan principal, all cash received is applied to reduce the carrying value of such loans. Loans are restored to accrual status only when contractually current and the collection of future payments is reasonably assured. Loans, held at fair value Loans, held at fair value represent certain loans originated by the Company for which we have elected the fair value option. Interest is recognized as interest income in the consolidated statements of income when earned and deemed collectible. Changes in fair value are recurring and are reported as net unrealized gain (loss) in the 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 the Company’s historical loan portfolio. 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 securitization to determine the likelihood of default. To determine loss severity we stressed collateral values based on observed property value declines from 2007 through their post-crisis low in 2010 to determine potential losses in the event of default. 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 in the 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) in the consolidated statements of income. For originated SBA loans, the guaranteed portion is held for sale, at fair value. For loans originated by GMFS, changes in fair value are reported as residential mortgage banking activities in the 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 carries them at fair value under ASC 320, Investments-Debt and Equity Securities. Our MBS portfolio is comprised of asset-backed securities collateralized by interest in or obligations backed by pools of SBC loans. Purchases and sales of MBS are recorded as of the trade date. Our MBS securities pledged as collateral against borrowings under repurchase agreements are included in mortgage backed securities, at fair value on our 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 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 in the 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 December 31, 2019 and 2018, the cash collateral receivable for derivatives is $9.5 million and $11.6 million, respectively, and is included in restricted cash in the 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 consolidated statements of income. IRLCs IRLCs are agreements under which GMFS agrees to extend credit to a borrower under certain specified terms and conditions in which the interest rate and the maximum amount of the loan are set prior to funding. Unrealized gains and losses on the IRLCs, reflected as derivative assets and derivative liabilities, respectively, are measured based on the value of the underlying mortgage loan, quoted government-sponsored enterprise (Fannie Mae, Freddie Mac, and the Government National Mortgage Association ((“Ginnie Mae”), collectively, “GSEs”) or MBS prices, estimates of the fair value of the mortgage servicing rights (“MSRs”) and the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expense and broker fees. The realized and unrealized gains or losses are reported in the consolidated statements of income as residential mortgage banking activities. IRLCs are classified as Level 3 in the fair value hierarchy. FX forwards FX forwards are agreements between two counterparties to exchange a pair of currencies at a set rate on a future date. FX forward contracts are used to convert the foreign currency risk to U.S. dollars to mitigate exposure to fluctuations in FX rates. The fair value adjustments are reported within net unrealized gain (loss) on financial instruments in the consolidated statements of income. FX forwards are classified as Level 2 in the fair value hierarchy. CDSs CDSs are contracts between two parties, a protection buyer who makes fixed periodic payments, and a protection seller, who collects the premium in exchange for making the protection buyer whole in the case of default. The fair value adjustments, are reported within net unrealized gain (loss) on financial instruments, while the related interest income or interest expense, are reported within net realized gain (loss) on financial instruments in the 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) in the consolidated statements of income. For residential mortgage servicing rights, gains on servicing rights retained upon sale of a loan are included in residential mortgage banking activities in the consolidated statements of income. The Company treats its servicing rights and residential mortgage servicing rights as two separate classes of servicing assets based on the class of the underlying mortgages and it treats these assets as two separate pools for risk management purposes. Servicing rights relating to the Company’s servicing of loans guaranteed by the SBA under its Section 7(a) loan program and servicing rights related to the Freddie Mac program are accounted for under ASC 860, Transfers and Servicing, while the Company’s residential mortgage servicing rights are accounted for under the fair value option under ASC 825, Financial Instruments. Servicing rights – SBA and Freddie Mac SBA and Freddie Mac servicing rights are initially recorded at fair value and subsequently carried at amortized cost. We capitalize the value expected to be realized from performing specified servicing activities for others. Servicing rights are amortized in proportion to and over the period of estimated servicing income, and are evaluated for potential impairment quarterly. For purposes of testing our servicing rights for impairment, we first determine whether facts and circumstances exist that would suggest the carrying value of the servicing asset is not recoverable. If so, we then compare the net present value of servicing cash flow with its carrying value. The estimated net present value of servicing cash flows is determined using discounted cash flow modeling techniques, which require management to make estimates regarding future net servicing cash flows, taking into consideration historical and forecasted loan prepayment rates, delinquency rates and anticipated maturity defaults. If the carrying value of the servicing rights exceeds the net present value of servicing cash flows, the servicing rights are considered impaired and an impairment loss is recognized in earnings for the amount by which carrying value exceeds the net present value of servicing cash flows. We estimate the fair value of servicing rights by determining the present value of future expected servicing cash flows using modeling techniques that incorporate management's best estimates of key variables including estimates regarding future net servicing cash flows, forecasted loan prepayment rates, delinquency rates, and return requirements commensurate with the risks involved. Cash flow assumptions are modeled using our internally forecasted revenue and expenses, and where possible, the reasonableness of assumptions is periodically validated through comparisons to market data. Prepayment speed estimates are determined from historical prepayment rates or obtained from third-party industry data. Return requirement assumptions are determined using data obtained from market participants, where available, or based on current relevant interest rates plus a risk-adjusted spread. We also consider other factors that can impact the value of the servicing rights, such as surety provider termination clauses and servicer terminations that could result if we failed to materially comply with the covenants or conditions of our servicing agreements and did not remedy the failure. Since many factors can affect the estimate of the fair value of servicing rights, we regularly evaluate the major assumptions and modeling techniques used in our estimate and review these assumptions against market comparables, if available. We monitor the actual performance of our servicing rights by regularly comparing actual cash flow, credit, and prepayment experience to modeled estimates. Servicing rights - Residential (carried at fair value) The Company’s residential mortgage servicing rights consist of conforming conventional residential loans sold to Fannie Mae and Freddie Mac or loans securitized in Ginnie Mae securities. Government insured loans serviced by the Company are securitized through Ginnie Mae, whereby the Company is insured against loss by the Federal Housing Administration or partially guaranteed against loss by the Department of Veterans Affairs. The Company has elected to account for its portfolio of residential mortgage servicing rights (“MSRs”) at fair value. For these assets, the Company uses a third-party vendor to assist management in estimating the fair value. The third-party vendor uses a discounted cash flow approach which consists of projecting servicing cash flows discounted at a rate that management believes market participants would use in their determinations of fair value. The key assumptions used in the estimation of the fair value of MSRs include prepayment rates, discount rates, default rates, and cost of servicing rates. Residential MSRs are classified as Level 3 in the fair value hierarchy.
Real estate, held for sale	Real estate, held for sale Real estate, held for sale, includes purchased real estate and real estate acquired in full or partial settlement of loan obligations, generally through foreclosure, that is being marketed for sale. Real estate, held for sale is recorded at acquisition at the property’s estimated fair value less estimated costs to sell. After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. After acquisition, real estate held for sale is analyzed periodically for changes in fair values and any subsequent write down is charged through impairment. The Company records a gain or loss from the sale of real estate when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of real estate to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction price is probable. Once these criteria are met, the real estate is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. This adjustment is based on management’s estimate of the fair value of the loan extended to the buyer to finance the sale.
Investment in unconsolidated joint 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 allocable share of the earnings or losses of the investment monthly in earnings and adjust the carrying amount for our share of the distributions that exceed our earnings.
Purchased future receivables	Purchased future receivables Through Knight Capital, the Company provides working capital advances to small businesses through the purchase of their future revenues. The Company enters into a contract with the business whereby the Company pays the business an upfront amount in return for a specific amount of the business’s future revenue receivables, known as payback amounts. The payback amounts are primarily received through daily payments initiated by automated clearing house (“ACH”) transactions. Revenues from purchased future receivables are realized when funds are received under each contract. The allocation of the amount received is determined by apportioning the amount received based upon the factor (discount) rate of the business's contract. Management believes that this methodology best reflects the effective interest method. The Company has established an allowance for doubtful purchased future receivables. An increase in the allowance for doubtful purchased future receivables results in a charge to income and is reduced when purchased future receivables are charged-off. Purchased future receivables are charged-off after 90 days past due. Management believes that the allowance reflects the risk elements and is adequate to absorb losses inherent in the portfolio. Although management has performed this evaluation, future adjustments may be necessary based on changes in economic conditions or other factors.
Intangible assets	Intangible assets The Company accounts for intangible assets under ASC 350, Intangibles- Goodwill and Other . The Company’s intangible assets include an SBA license, capitalized software, a broker network, trade names, and an acquired favorable lease. The Company capitalizes software costs expected to result in long-term operational benefits, such as replacement systems or new applications that result in significantly increased operational efficiencies or functionality. All other costs incurred in connection with internal use software are expensed as incurred. The Company initially records its intangible assets at cost or fair value and will test for impairment if a triggering event occurs. Intangible assets are included within other assets in the consolidated balance sheets. The Company amortizes intangible assets with identified estimated useful lives on a straight-line basis over their estimated useful lives.
Goodwill	Goodwill The Company recorded goodwill in connection with the Company’s acquisition of Knight Capital. Goodwill is not amortized, but rather, is tested for impairment annually or more frequently if events or changes in circumstances indicate potential impairment. Goodwill at December 31, 2019, represents the excess of the consideration paid over the fair value of net assets acquired in connection with the acquisition of Knight. In testing goodwill for impairment, the Company follows ASC 350, Intangibles- Goodwill and Other, which permits a qualitative assessment of whether it is more likely than not that the fair value of the reporting unit is less than its carrying value including goodwill. If the qualitative assessment determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value including The first annual goodwill impairment test for the recently acquired Knight Capital business will occur in the fourth quarter of 2020.
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 consolidated statements of income as a component of interest expense. Deferred financing costs may include legal, accounting and other related fees. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Pursuant to the adoption of ASU 2015-03, unamortized deferred financing costs related to securitizations and note issuances are presented in the 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 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 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 in the 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 December 31, 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 consolidated balance sheets as an asset and cash received from the lender was recorded on our consolidated balance sheets as a liability. Interest paid and accrued in connection with our repurchase agreements is recorded as interest expense in the 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, and this SPE issues debt instruments. The entity that has a controlling financial interest in a VIE is referred to as the primary beneficiary and is required to consolidate the VIE. The consolidation of the SPE includes the issuance of senior securities to third parties, which are shown as securitized debt obligations of consolidated VIEs in the consolidated balance sheets. Debt issuance costs related to securitizations are presented as a direct deduction from the carrying value of the related debt liability. Debt issuance costs are amortized using the effective interest method and are included in interest expense in the consolidated statements of income.
Convertible note, net	Convertible note, net ASC 470 requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. ASC 470-20 requires that the initial proceeds from the sale of these notes be allocated between a liability component and an equity component in a manner that reflects interest expense at the interest rate of similar nonconvertible debt that could have been issued by the Company at such time. We measured the estimated fair value of the debt component of our convertible notes as of the issuance date based on our nonconvertible debt borrowing rate. The equity components of the convertible senior notes have been reflected within additional paid-in capital in our 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 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 consolidated balance sheets.
Senior secured notes, net	Senior secured notes, net The Company accounts for secured debt offerings under ASC 470 . Pursuant to the adoption of ASU 2015-03, the Company’s senior secured notes are presented net of debt issuance costs. These senior secured notes are collateralized by loans, MBS, and retained interests of consolidated VIE’s. Interest paid and accrued in connection with senior secured notes is recorded as interest expense in the consolidated statements of income.
Corporate debt, net	Corporate debt, net The Company accounts for corporate debt offerings under ASC 470. The Company’s corporate debt is presented net of debt issuance costs. Interest paid and accrued in connection with corporate debt is recorded as interest expense in the consolidated statements of income.
Guaranteed loan financing	Guaranteed loan financing Certain partial loan sales do not qualify for sale accounting under ASC 860 because these sales do not meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest remain as an investment in the consolidated balance sheets and the proceeds from the portion sold is recorded as guaranteed loan financing in the liabilities section of the 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 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 in the consolidated balance sheets and the 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 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 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 the Company that we intend to sell in the near term. The fair value elections for loans, held for sale, at fair value originated by the Company were made due to the short-term nature of these instruments. We have elected the fair value option for loans held-for-sale originated by GMFS that the Company intends to sell in the near term. We have elected the fair value option for certain residential mortgage servicing rights acquired as part of the merger transaction.
Earnings per share	Earnings per share We present both basic and diluted earnings per share (“EPS”) amounts in our 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 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 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 consolidated statements of income. As of December 31, 2019 and 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 under ASC 606, 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 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 loans, held at fair value and loans, held for sale, at fair value, are presented in the consolidated statements of income as components of other income and operating expenses. Origination fees for residential mortgage loans originated by GMFS are presented in the 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 consolidated statements of income as a component of 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 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 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.
Foreign currency transactions	Foreign currency transactions Assets and liabilities denominated in non-U.S. currencies are translated into U.S. dollars using foreign currency exchange rates prevailing at the end of the reporting period. Revenue and expenses are translated at the average exchange rates for each reporting period. Foreign currency remeasurement gains or losses on transactions in nonfunctional currencies are recognized in earnings. Gains or losses on translation of the financial statements of a non-U.S. operation, when the functional currency is other than the U.S. dollar, are included, net of taxes, in the consolidated statements of comprehensive income.

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
	Dec. 31, 2019
Owens Realty Mortgage, Inc.
Business Acquisition [Line Items]
Schedule of fair value of assets acquired and liabilities acquired	(In Thousands) March 29, 2019 Assets Cash and cash equivalents $ 10,822 Loans 130,449 Real estate, held for sale 67,973 Investment in unconsolidated joint ventures 8,619 Other assets Deferred tax assets 4,660 Accrued interest 1,209 Other 379 Total assets acquired $ 224,111 Liabilities Secured borrowings 12,713 Accounts payable and other accrued liabilities 1,000 Due to Manager 228 Deferred tax liabilities 123 Total liabilities assumed $ 14,064 Net assets acquired $ 210,047
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 year ended For the year ended (In Thousands) December 31, 2019 December 31, 2018 Selected Financial Data Interest income $ 232,706 $ 181,780 Interest expense (152,428) (111,371) Provision for loan losses (3,684) (1,462) Non-interest income 145,393 157,049 Non-interest expense (180,140) (155,704) Income before provision for income taxes 41,847 70,292 Income tax benefit (provision) 10,545 (1,945) Net income $ 52,392 $ 68,347
Knight Capital
Business Acquisition [Line Items]
Schedule of fair value of assets acquired and liabilities acquired	(In Thousands) October 25, 2019 Assets Cash and cash equivalents $ 1,673 Purchased future receivables, 39,540 Prepaid expenses and other 1,265 Intangible assets 5,880 Total assets acquired $ 48,358 Liabilities Secured borrowings 30,600 Accounts payable and other accrued liabilities 1,173 Total liabilities assumed $ 31,773 Net assets acquired $ 16,585
Schedule of aggregate consideration transferred, net assets acquired, and related bargain purchase gain	Total Consideration Transferred (in thousands) Cash consideration $ 17,500 Common stock consideration 10,290 Total consideration transferred $ 27,790 Net Tangible Assets $ 10,705 Identified Intangible Assets 5,880 FV of Net Assets Acquired $ 16,585 Goodwill $ 11,205
Schedule of pro-forma revenue and earnings	For the year ended For the year ended (In Thousands) December 31, 2019 December 31, 2018 Selected Financial Data Interest income $ 229,916 $ 169,499 Interest expense (151,880) (109,238) Provision for loan losses (3,684) (1,701) Non-interest income 223,197 192,181 Non-interest expense (229,648) (201,454) Income before provision for income taxes 67,901 49,287 Income tax benefit (provision) 10,552 (1,386) Net income $ 78,453 $ 47,901
Schedule of acquired intangible assets are definite-lived assets	The fair value of the intangible assets with definite lives is as follows (dollars in thousands): (In Thousands) Fair Value Weighted Average Amortization Life Internally developed software $ 3,800 6 years Broker network 1,200 4.5 years Trade name 880 6 years Total Intangible Assets $ 5,880 6 years

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2019
Schedule of classification, unpaid principal balance, and carrying value of loans held including loans of consolidated VIEs	December 31, 2019 December 31, 2018 Loans (In Thousands) Carrying Value UPB Carrying Value UPB Loans Acquired SBA 7(a) loans $ 255,240 $ 269,396 $ 264,308 $ 283,423 Acquired loans 356,545 358,777 206,983 215,213 Acquired Transitional loans 73,762 74,302 — — Originated Transitional loans 593,657 600,226 272,981 275,237 Originated SBC loans, at fair value 20,212 19,565 22,664 22,325 Originated SBC loans 133,118 132,227 345,100 342,751 Originated SBA 7(a) loans 297,934 299,580 85,569 89,733 Originated Residential Agency loans 3,396 3,395 1,899 1,900 Total Loans, before allowance for loan losses $ 1,733,864 $ 1,757,468 $ 1,199,504 $ 1,230,582 Allowance for loan losses $ (5,880) — $ (6,112) — Total Loans, net $ 1,727,984 $ 1,757,468 $ 1,193,392 $ 1,230,582 Loans in consolidated VIEs Loans Originated SBC loans $ 1,037,844 $ 1,026,921 $ 432,308 $ 422,897 Acquired loans 666,226 671,698 343,156 354,794 Originated Transitional loans 490,913 493,217 391,752 393,116 Originated SBA 7(a) loans 79,457 83,559 — — Acquired SBA 7(a) loans 53,320 66,997 55,966 74,554 Total Loans, in consolidated VIEs, before allowance for loan losses $ 2,327,760 $ 2,342,392 $ 1,223,182 $ 1,245,361 Allowance for loan losses on loans in consolidated VIEs $ (1,561) — $ (2,208) — Total Loans, net, in consolidated VIEs $ 2,326,199 $ 2,342,392 $ 1,220,974 $ 1,245,361 Total Loans, net, and Loans, net in consolidated VIEs $ 4,054,183 $ 4,099,860 $ 2,414,366 $ 2,475,943 Loans, held for sale, at fair value Originated Residential Agency loans $ 136,506 $ 132,016 $ 67,775 $ 65,586 Originated Freddie Mac loans 21,775 21,513 23,322 22,973 Originated SBA 7(a) loans 28,551 26,669 21,153 19,669 Acquired loans 1,245 1,208 3,008 2,935 Total Loans, held for sale, at fair value $ 188,077 $ 181,406 $ 115,258 $ 111,163 Loans, held for sale, at fair value in consolidated VIEs Loans, held for sale, at fair value Acquired loans $ 4,434 $ 4,400 $ — $ — Total Loans, held for sale, at fair value in consolidated VIEs $ 4,434 $ 4,400 $ — $ — Total Loans, held for sale, at fair value, and Loans, held for sale, at fair value in consolidated VIEs $ 192,511 $ 185,806 $ 115,258 $ 111,163 Total Loan portfolio $ 4,246,694 $ 4,285,666 $ 2,529,624 $ 2,587,106
Schedule of delinquency information on loans, net	December 31, 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 $ 297,172 $ 4,646 $ 5,042 $ 306,860 $ 9,177 $ 1,326 Acquired loans 969,208 36,405 14,908 1,020,521 17,774 3,382 Acquired Transitional loans 63,051 9,489 1,222 73,762 5,726 — Originated Transitional loans 1,074,955 5,728 5,645 1,086,328 24,587 — Originated SBC loans, at fair value 20,212 — — 20,212 — — Originated SBC loans 1,137,140 15,670 16,089 1,168,899 16,089 — Originated SBA 7(a) loans 370,101 5,238 1,290 376,629 8,882 — Originated Residential Agency loans 582 635 2,179 3,396 2,105 74 Total Loans, before general allowance for loans losses $ 3,932,421 $ 77,811 $ 46,375 $ 4,056,607 $ 84,340 $ 4,782 General allowance for loan losses $ (2,424) Total Loans, net $ 4,054,183 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 December 31, 2019 Loans (1) (2) Acquired SBA 7(a) loans $ 7,712 $ 39,566 $ 103,590 $ 83,954 $ 39,726 $ 32,312 $ 306,860 Acquired loans 215,041 366,665 265,994 128,962 30,104 13,755 1,020,521 Acquired Transitional loans 3,638 4,806 27,222 32,469 5,627 — 73,762 Originated Transitional loans 1,736 28,108 277,388 750,298 28,059 739 1,086,328 Originated SBC loans, at fair value — 8,192 — 6,422 5,598 — 20,212 Originated SBC loans — 60,601 431,312 660,733 8,045 8,208 1,168,899 Originated SBA 7(a) loans 865 13,843 41,166 130,177 78,544 112,034 376,629 Originated Residential Agency loans — 51 — 830 2,393 122 3,396 Total Loans, before general allowance for loans losses $ 228,992 $ 521,832 $ 1,146,672 $ 1,793,845 $ 198,096 $ 167,170 $ 4,056,607 General allowance for loan losses $ (2,424) Total Loans, net $ 4,054,183 Percentage of outstanding 5.6 % 12.9 % 28.3 % 44.2 % 4.9 % 4.1 % 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	December 31, 2019 (In Thousands) Originated Originated Transitional loans Acquired Acquired Originated Acquired Transitional loans Total Allowance for General $ 124 $ 64 $ 652 $ 414 $ 1,019 $ 151 $ 2,424 Specific 180 124 86 941 762 - 2,093 PCI - - 2,165 759 - - 2,924 Ending balance $ 304 $ 188 $ 2,903 $ 2,114 $ 1,781 $ 151 $ 7,441 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	Year Ended December 31, 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 420 (167) 630 939 1,711 151 3,684 Charge-offs and sales (127) - (1,144) (1,282) (516) - (3,069) Recoveries - 2 (1,635) 139 - - (1,494) Ending balance $ 304 $ 188 $ 2,903 $ 2,114 $ 1,781 $ 151 $ 7,441 Year End December 31, 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 (recoveries of) loan losses (457) 353 1,843 (306) 268 - 1,701 Charge-offs and sales (169) - (1,380) (903) - - (2,452) Recoveries - - (2,675) - - - (2,675) Ending balance $ 11 $ 353 $ 5,052 $ 2,318 $ 586 $ - $ 8,320
Schedule of recorded investment of TDRs	December 31, 2019 December 31, 2018 (In Thousands) SBC SBA Total SBC SBA Total Recorded carrying value modified loans classified as TDRs $ 6,258 $ 14,204 $ 20,462 $ 1,825 $ 17,344 $ 19,169 Allowance for loan losses on loans classified as TDRs $ 274 $ 454 $ 728 $ 321 $ 278 $ 599 Carrying value of modified loans classified as TDRs Carrying value of modified loans classified as TDRs on accrual status $ 333 $ 7,437 $ 7,770 $ 1,696 $ 7,375 $ 9,071 Carrying value of modified loans classified as TDRs on non-accrual status 5,925 6,767 12,692 129 9,969 10,098 Total carrying value of modified loans classified as TDRs $ 6,258 $ 14,204 $ 20,462 $ 1,825 $ 17,344 $ 19,169
Schedule of TDR modifications by primary modification type and related financial effects	Year Ended December 31, 2019 Year Ended December 31, 2018 (In Thousands, except number of loans) SBC SBA Total SBC SBA Total Number of loans permanently modified 3 31 34 1 38 39 Pre-modification recorded balance (a) $ 2,169 $ 4,045 $ 6,214 $ 3,444 $ 7,214 $ 10,658 Post-modification recorded balance (a) $ 2,169 $ 3,778 $ 5,947 $ 3,444 $ 7,266 $ 10,710 Number of loans that remain in default as of December 31, 2019 (b) 3 8 11 1 11 12 Balance of loans that remain in default as of December 31, 2019 (b) $ 2,240 $ 534 $ 2,774 $ 3,444 $ 534 $ 3,978 Concession granted (a) : Term extension $ - $ 4,033 $ 4,033 $ - $ 6,844 $ 6,844 Interest rate reduction - - - - - - Principal reduction - - - - 7 7 Foreclosure 2,240 264 2,504 3,444 181 3,625 Total $ 2,240 $ 4,297 $ 6,537 $ 3,444 $ 7,032 $ 10,476 (a) Represents carrying value. (b) Represents the December 31, 2019 carrying values of the TDRs that occurred during the year ended December 31, 2019 and 2018 that remained in default as of December 31, 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	December 31, 2019 December 31, 2018 Non-PCI PCI Non-PCI PCI (In Thousands) Loans Loans Loans Loans Unpaid principal balance $ 4,012,432 $ 67,863 $ 2,361,155 $ 92,463 Non-accretable discount — (4,887) — (6,040) Accretable discount (24,436) (9,559) (31,533) (16,023) Loans, held-for-investment 3,987,996 53,417 2,329,622 70,400 Allowance for loan losses (4,517) (2,924) (3,925) (4,395) Loans, held-for-investment $ 3,983,479 $ 50,493 $ 2,325,697 $ 66,005
Non - PCI Loans
Schedule of impaired loans, held for investment	(In Thousands) December 31, 2019 December 31, 2018 Impaired loans With an allowance $ 18,063 $ 9,734 Without an allowance 60,036 33,082 Total recorded carrying value of impaired loans $ 78,099 $ 42,816 Allowance for loan losses related to impaired loans $ (2,093) $ (1,989) Unpaid principal balance of impaired loans $ 83,991 $ 49,128 Impaired loans on non-accrual status $ 78,099 $ 42,816 Average carrying value of impaired loans $ 67,553 $ 36,675 December 31, 2019 December 31, 2018 Interest income on impaired loans for the year ended $ 2,777 $ 966
PCI Loans
Schedule of activity of accretable yield of loans, held for investment	Year Ended December 31, (In Thousands) 2019 2018 Beginning accretable discount - PCI loans $ 16,023 $ 23,749 Purchases/Originations — 514 Sales (2,114) (2,554) Accretion (3,444) (5,123) Other 478 726 Transfers (1,384) (1,289) Ending accretable discount - PCI loans $ 9,559 $ 16,023
Geographical concentration
Schedule of concentration risk of loans secured by real estate	Geographic Concentration (% of Unpaid Principal Balance) December 31, 2019 December 31, 2018 California 16.9 % 14.1 % Texas 15.2 11.3 Florida 8.3 10.8 New York 8.3 6.3 Illinois 5.2 3.8 Georgia 4.8 5.3 Arizona 3.4 5.0 North Carolina 3.2 3.7 Colorado 2.8 2.7 Washington 2.8 2.8 Other 29.1 34.2 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 consolidated balance sheets. Collateral Concentration (% of Unpaid Principal Balance) December 31, 2019 December 31, 2018 Multi-family 26.6 % 23.3 % SBA (1) 17.6 18.1 Retail 17.5 18.5 Office 12.9 15.1 Mixed Use 10.4 9.6 Industrial 6.4 8.2 Lodging/Residential 3.3 2.4 Other 5.3 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 consolidated balance sheets. Collateral Concentration (% of Unpaid Principal Balance) December 31, 2019 December 31, 2018 Offices of Physicians 14.1 % 17.7 % Child Day Care Services 8.1 9.9 Hotels, Motels & Tourist Courts 11.6 3.8 Eating Places 6.1 5.4 Lodging 5.7 10.1 Veterinarians 4.1 6.8 Gasoline Service Stations 3.7 2.3 Funeral Service & Crematories 2.0 2.3 Grocery Stores 2.0 3.8 Auto 1.3 2.7 Other 41.3 35.2 Total 100.0 % 100.0 %

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2019: (In Thousands) Level 1 Level 2 Level 3 Total Assets: Loans, held for sale, at fair value $ — $ 192,510 $ — $ 192,510 Loans, net, at fair value — — 20,212 20,212 Mortgage backed securities, at fair value — 92,006 460 92,466 Derivative instruments, at fair value — — 2,814 2,814 Residential mortgage servicing rights, at fair value — — 91,174 91,174 Total assets $ — $ 284,516 $ 114,660 $ 399,176 Liabilities: Derivative instruments, at fair value $ — $ 5,250 $ — $ 5,250 Total liabilities $ — $ 5,250 $ — $ 5,250 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 December 31, 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 $ 20,212 Single External Source Third Party Mark $ 100.47 – 110.83 $ 103.31 Mortgage backed securities, at fair value (b) 357 Broker Quotes Third Party Mark 1.00 – 1.00 1.00 Mortgage backed securities, at fair value 103 Transaction Price Transaction Price 99.00 – 99.00 99.00 Residential mortgage servicing rights, at fair value 91,174 Single external source Discounted cash flow N/A N/A (a) Prices are weighted based on the unpaid principal balance of the loans and securities included in the range for each class. (b) Price ranges and weighted averages represent interest-only strips with a fair value of $0.4 million as of December 31, 2019. 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) (b)
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	December 31, 2019 December 31, 2018 (In Thousands) Carrying Value Estimated Carrying Value Estimated Assets: Loans, net $ 4,033,972 $ 4,147,831 $ 2,391,702 $ 2,434,185 Purchased future receivables, net 43,265 43,265 — — Servicing rights 30,795 34,723 26,997 28,441 Total assets $ 4,108,032 $ 4,225,819 $ 2,418,699 $ 2,462,626 Liabilities: Secured borrowings $ 1,189,392 $ 1,189,392 $ 834,547 $ 834,547 Securitized debt obligations of consolidated VIEs, net 1,815,154 1,859,047 905,367 918,536 Senior secured note, net 179,289 190,923 178,870 176,981 Guaranteed loan financing 485,461 515,182 229,678 236,804 Convertible notes, net 111,040 116,654 109,979 101,581 Corporate debt, net 149,986 161,098 48,457 48,457 Total liabilities $ 3,930,322 $ 4,032,296 $ 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	Year Ended December 31, 2019 (In Thousands) MBS Derivatives Loans, held at fair value Residential MSRs, at fair value Contingent consideration Beginning Balance $ 12,148 $ 1,776 $ 22,664 $ 93,065 $ 1,207 Purchases or Originations 9,593 — - - — Additions due to loans sold, servicing retained - — - 26,854 Sales / Principal payments (2,230) — (2,744) (10,178) (1,207) Realized gains, net 517 — (141) — Unrealized gains (losses), net 98 1,038 433 (18,567) — Accreted discount, net 141 — — — — Transfer to (from) Level 3 (19,807) — — — — Ending Balance $ 460 $ 2,814 $ 20,212 $ 91,174 $ — Unrealized gains (losses), net on assets or liabilities held at the end of the period $ 355 $ 1,038 $ 647 $ (18,567) $ — Year Ended December 31, 2018 (In Thousands) MBS Derivatives Loans, held at fair value Residential MSRs, at fair value Contingent consideration Beginning Balance $ 8,063 $ 1,827 $ 188,150 $ 72,295 $ 10,016 Purchases or Originations — — 150 — — Additions due to loans sold, servicing retained — — 20,974 — Sales / Principal payments (977) — (19,188) (5,899) — Realized gains, net 271 — 46 — — Unrealized gains (losses), net 2,866 (51) (720) 5,695 — Accreted discount, net 84 — — — Amortization and adjustment for earn-out payments — — — (8,809) Transfer to (from) Level 3 1,841 — — — — Transfer to loans, held-for-investment — — (145,774) Ending Balance $ 12,148 $ 1,776 $ 22,664 $ 93,065 $ 1,207 Unrealized gains (losses), net on assets or liabilities held at the end of the period $ 100 $ 1,776 $ 325 $ 8,617 $ —

Mortgage Backed Securities (Tab

Mortgage Backed Securities (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2019 and 2018. Weighted Weighted Average Gross Gross Average Interest Principal Amortized Unrealized Unrealized (In Thousands) Maturity (a) Rate (a) Balance Cost Fair Value Gains Losses December 31, 2019 Mortgage backed securities, at fair value Freddie Mac Loans 06/2037 4.3 % $ 83,149 $ 61,207 $ 66,108 $ 4,915 $ (14) Commercial Loans 02/2051 5.4 35,984 25,358 26,255 924 (27) Tax Liens 09/2026 6.0 104 104 103 — (1) Total Mortgage backed securities, at fair value 07/2041 4.6 % $ 119,237 $ 86,669 $ 92,466 $ 5,839 $ (42) 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 December 31, 2019 and 2018. Weighted Average Interest Principal Amortized (In Thousands) Rate (a) Balance Cost Fair Value December 31, 2019 Mortgage backed securities, at fair value After five years through ten years 3.8 % $ 2,869 $ 2,641 $ 2,825 After ten years 4.7 116,368 84,028 89,641 Total Mortgage backed securities, at fair value 4.6 % $ 119,237 $ 86,669 $ 92,466 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 Weighted based on current principal balance

Servicing rights (Tables)

Servicing rights (Tables)	12 Months Ended
	Dec. 31, 2019
Schedule of information regarding portfolio of servicing rights	Year Ended December 31, (In Thousands) 2019 2018 SBA servicing rights, at amortized cost Beginning net carrying amount $ 16,749 $ 16,684 Additions due to loans sold, servicing retained 3,470 3,569 Acquisitions 894 362 Amortization (3,393) (3,418) Impairment (60) (448) Ending net carrying value of SBA servicing rights $ 17,660 $ 16,749 Freddie Mac multi-family servicing rights, at amortized cost Beginning net carrying amount $ 10,248 $ 5,059 Additions due to loans sold, servicing retained 5,195 6,832 Amortization (2,308) (1,643) Ending net carrying value of Freddie Mac multi-family servicing rights $ 13,135 $ 10,248 Ending net carrying value of SBA and Freddie Mac multi-family servicing rights, at amortized cost $ 30,795 $ 26,997 Residential mortgage servicing rights, at fair value Beginning Balance $ 93,065 $ 72,295 Additions due to loans sold, servicing retained 26,854 20,974 Loan pay-offs (10,178) (5,899) Unrealized gains (losses) (18,567) 5,695 Ending fair value of residential mortgage servicing rights $ 91,174 $ 93,065 Total servicing rights $ 121,969 $ 120,062
Schedule of future amortization expense for the servicing rights	(In Thousands) December 31, 2019 2020 $ 5,699 2021 4,961 2022 4,305 2023 3,711 2024 3,182 Thereafter 8,937 Total $ 30,795
Residential MSRs
Schedule of servicing rights	As of December 31, 2019 As of December 31, 2018 Unpaid Principal Unpaid Principal (In Thousands) Amount Fair Value Amount Fair Value Fannie Mae $ 3,388,630 $ 37,309 $ 2,848,435 $ 34,562 Ginnie Mae 2,504,993 29,869 2,350,301 29,586 Freddie Mac 2,270,981 23,996 2,267,943 28,917 Total $ 8,164,604 $ 91,174 $ 7,466,679 $ 93,065
Schedule of Mortgage Servicing Rights Portfolio	December 31, 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) December 31, 2019 December 31, 2018 Prepayment rate 10% adverse change $ (4,195) $ (3,281) 20% adverse change (8,091) (6,330) Discount rate 10% adverse change $ (3,450) $ (3,716) 20% adverse change (6,654) (7,159) Cost of servicing 10% adverse change $ (1,648) $ (1,683) 20% adverse change (3,297) (3,365)
SBA | Freddie Mac
Schedule of servicing rights	As of December 31, 2019 As of December 31, 2018 Unpaid Principal Unpaid Principal (In Thousands) Amount Carrying Value Amount Carrying Value SBA $ 568,017 $ 17,660 $ 506,155 $ 16,749 Freddie Mac multi-family 1,167,476 13,135 964,377 10,248 Total $ 1,735,493 $ 30,795 $ 1,470,532 $ 26,997
Schedule of adverse changes to key assumptions on the carrying amount of the servicing rights	(In Thousands) December 31, 2019 December 31, 2018 SBA servicing rights (at amortized cost) • Forward prepayment rate 10% adverse change $ (563) $ (470) 20% adverse change (1,097) (915) • Default rate 10% adverse change $ (94) $ (63) 20% adverse change (186) (125) • Discount rate 10% adverse change $ (520) $ (579) 20% adverse change (1,011) (1,118) Freddie Mac multi-family servicing rights (at amortized cost) • Forward prepayment rate 10% adverse change $ (285) $ (63) 20% adverse change (558) (124) • Default rate 10% adverse change $ (5) $ (11) 20% adverse change (10) (22) • Discount rate 10% adverse change $ (381) $ (490) 20% adverse change (746) (791)
SBA | Freddie Mac | Commercial
Schedule of adverse changes to key assumptions on the carrying amount of the servicing rights	December 31, 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)	12 Months Ended
	Dec. 31, 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	For the Year Ended December 31, (In Thousands) 2019 2018 2017 Realized and unrealized gains and losses of residential mortgage loans held for sale, at fair value $ 54,640 $ 36,240 $ 63,024 Creation of new mortgage servicing rights, net of payoffs 16,676 15,075 14,919 Loan origination fee income on residential mortgage loans 10,702 9,371 8,193 Unrealized gains (loss) on IRLCs and other derivatives 1,521 (834) (2,699) Residential mortgage banking activities $ 83,539 $ 59,852 $ 83,437 Variable expenses on residential mortgage banking activities $ (51,760) $ (22,228) $ (41,737)

Secured Borrowings (Tables)

Secured Borrowings (Tables)	12 Months Ended
	Dec. 31, 2019
Secured Borrowings
Schedule of characteristics of secured borrowings	Carrying Value at Lender Asset Class Current Maturity Pricing Facility Size Pledged Assets December 31, 2019 December 31, 2018 JPMorgan Acquired loans, SBA loans August 2020 1M L + 2.00 to 2.50% $ 250,000 $ 207,030 $ 88,972 $ 68,417 Keybank Freddie Mac loans February 2020 1M L + 1.50% 125,000 21,775 21,513 22,973 East West Bank SBA loans July 2020 Prime - 0.821 to + 0.29% 50,000 16,992 13,294 27,443 Credit Suisse Acquired loans (non USD) December 2021 Euribor + 2.50% 224,500 (a) 52,500 37,646 — FCB Acquired loans June 2021 2.75% 1,399 1,778 1,354 2,974 Comerica Bank Residential loans April 2020 1M L + 1.75% 100,000 60,303 56,822 40,231 TBK Bank Residential loans July 2020 Variable Pricing 100,000 53,577 52,151 — Origin Bank Residential loans May 2020 Variable Pricing 50,000 16,275 15,343 12,870 Associated Bank Residential loans November 2020 1M L + 1.50% 40,000 6,508 5,823 15,907 East West Bank Residential MSRs September 2023 1M L + 2.50% 50,000 61,304 39,900 8,500 Credit Suisse Purchased future receivables June 2021 1M L + 4.50% 50,000 43,265 34,900 — Rabobank Real estate January 2021 4.22% 14,500 19,950 12,485 — Total borrowings under credit facilities (b) $ 1,055,399 $ 561,257 $ 380,203 $ 199,315 Citibank Fixed rate, Transitional, Acquired loans August 2020 1M L + 1.875 to 2.125% $ 500,000 $ 194,474 $ 124,718 $ 194,117 Deutsche Bank Fixed rate, Transitional loans November 2021 3M L + 2.00 to 2.40% 425,000 182,757 141,356 239,972 JPMorgan Transitional loans February 2020 1M L + 2.25 to 4.00% 275,000 344,656 250,466 96,343 JPMorgan MBS April 2020 3.15 to 4.52% 93,715 129,268 93,715 24,881 Deutsche Bank MBS February 2020 3.42 to 3.93% 44,730 60,120 44,730 17,425 Citibank MBS February 2020 3.10 to 4.14% 56,189 77,355 56,189 — Bank of America MBS January 2020 2.44 to 2.74% 38,954 44,412 38,954 — RBC MBS April 2020 3.39 to 3.71% 59,061 74,161 59,061 62,494 Total borrowings under repurchase agreements (c) $ 1,492,649 $ 1,107,203 $ 809,189 $ 635,232 Total secured borrowings $ 2,548,048 $ 1,668,460 $ 1,189,392 $ 834,547 (a) The current facility size is €200.0 million, but has been converted into USD for purposes of this disclosure. (b) The weighted average interest rate of borrowings under credit facilities was 4.0% and 4.6% as of December 31, 2019 and 2018, respectively. (c) The weighted average interest rate of borrowings under repurchase agreements was 4.2% and 4.0% as of December 31, 2019 and 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) December 31, 2019 December 31, 2018 Collateral pledged - borrowings under credit facilities Loans, net $ 436,738 $ 215,533 Mortgage servicing rights 61,304 63,479 Purchased future receivables 43,265 — Real estate, held for sale 19,950 — Total collateral pledged on borrowings under credit facilities $ 561,257 $ 279,012 Collateral pledged - borrowings under repurchase agreements Loans, net $ 721,887 $ 685,274 Mortgage backed securities 113,436 112,552 Retained interest in assets of consolidated VIEs 271,880 35,684 Total collateral pledged on borrowings under repurchase agreements $ 1,107,203 $ 833,510 Total collateral pledged on secured borrowings $ 1,668,460 $ 1,112,522

Senior secured notes, convert_2

Senior secured notes, convertible notes, and corporate debt, net (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2019 Senior secured notes principal amount (1) 7.50 % 2/15/2022 $ 180,000 Unamortized premium - Senior secured notes 1,667 Unamortized deferred financing costs - Senior secured notes (2,378) Total Senior secured notes, net $ 179,289 Convertible notes - principal amount (2) 7.00 % 8/15/2023 115,000 Unamortized discount - Convertible notes (3) (1,446) Unamortized deferred financing costs - Convertible notes (2,514) Total Convertible notes, net $ 111,040 Corporate debt principal amount (4) 6.50 % 4/30/2021 $ 50,000 Corporate debt principal amount (5) 6.20 % 7/30/2026 104,250 Unamortized discount - Corporate debt 433 Unamortized deferred financing costs - Corporate debt (4,697) Total Corporate debt, net $ 149,986 Total carrying amount of debt components $ 440,315 Total carrying amount of conversion option of equity components recorded in equity $ 1,446 (1) Interest on the Senior Secured Notes is payable semiannually on each February 15 and August 15, beginning on August 15, 2017. (2) Interest on the Convertible Notes is payable quarterly on February 15, May 15, August 15, and November 15 of each year, beginning on November 15, 2017. (3) Represents the discount created by separating the conversion option from the debt host instrument. (4) Interest on the corporate debt is payable January 30, April 30, July 30, and October 30 of each year, beginning on July 30, 2018. (5) Interest on the corporate debt is payable January 30, April 30, July 30, and October 30 of each year, beginning on October 30, 2019.
Schedule of contractual maturities of the Senior Secured Notes, Convertible Notes, and Corporate debt	(In Thousands) December 31, 2019 2020 $ — 2021 49,143 2022 179,289 2023 111,040 2024 — Thereafter 100,843 Total $ 440,315

Guaranteed loan financing (Tabl

Guaranteed loan financing (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2019 5.45 % 1.70 - 7.50 % 2020 - 2044 $ 485,461 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) December 31, 2019 2020 $ 537 2021 1,647 2022 2,534 2023 3,697 2024 4,930 Thereafter 472,116

Variable interest entities an_2

Variable interest entities and securitization activities (Tables)	12 Months Ended
	Dec. 31, 2019
Consolidated VIEs
Summary of information on securitized debt obligations	December 31, 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 $ 6,399 $ 6,399 5.5 % $ 12,226 $ 12,226 5.4 % ReadyCap Lending Small Business Trust 2015-1 — — — 3,397 1,180 3.4 ReadyCap Lending Small Business Trust 2019-2 131,032 129,007 4.3 — — — Sutherland Commercial Mortgage Trust 2017-SBC6 42,309 41,486 3.4 69,764 68,574 3.3 Sutherland Commercial Mortgage Trust 2018-SBC7 138,235 136,212 4.7 205,451 202,491 4.7 Sutherland Commercial Mortgage Trust 2019-SBC8 219,617 216,981 2.9 — — — ReadyCap Commercial Mortgage Trust 2014-1 18,626 18,632 5.6 36,108 36,129 4.5 ReadyCap Commercial Mortgage Trust 2015-2 64,239 61,443 4.5 110,497 106,755 4.2 ReadyCap Commercial Mortgage Trust 2016-3 32,269 30,777 4.7 63,945 62,053 3.7 ReadyCap Commercial Mortgage Trust 2018-4 121,179 117,428 3.9 144,701 140,314 3.9 ReadyCap Commercial Mortgage Trust 2019-5 309,296 299,273 4.1 — — — ReadyCap Commercial Mortgage Trust 2019-6 379,400 371,939 3.2 — — — Ready Capital Mortgage Financing 2017-FL1 — — — 63,615 61,902 3.7 Ready Capital Mortgage Financing 2018-FL2 115,381 114,057 3.8 217,057 213,743 3.4 Ready Capital Mortgage Financing 2019-FL3 267,904 264,249 3.5 — — — Total $ 1,845,886 $ 1,807,883 3.7 % $ 926,761 $ 905,367 4.0 %
Schedule of assets and liabilities for VIEs	(In Thousands) December 31, 2019 December 31, 2018 Assets: Cash and cash equivalents $ 23 $ — Restricted cash 8,301 11,643 Loans, net 2,326,199 1,220,974 Loans, held for sale, at fair value 4,434 — Due from servicers 27,964 11,514 Accrued interest 11,565 6,750 Real estate, held for sale — 176 Total assets $ 2,378,486 $ 1,251,057 Liabilities: Securitized debt obligations of consolidated VIEs, net 1,815,154 905,367 Total liabilities $ 1,815,154 $ 905,367
Unconsolidated VIEs
Schedule of assets and liabilities for VIEs	Carrying Maximum (1) (In Thousands) December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Assets: Mortgage backed securities, at fair value (2) $ 66,108 $ 75,591 $ 66,108 $ 75,591 Investment in unconsolidated joint ventures 58,850 33,438 58,850 33,438 Total assets in unconsolidated VIEs $ 124,958 $ 109,029 $ 124,958 $ 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 dates. (2) Retained interest in Freddie Mac sponsored securitizations.

Interest income and interest _2

Interest income and interest expense (Tables)	12 Months Ended
	Dec. 31, 2019
Interest income and interest expense
Schedule of components of interest income and expense	Year Ended December 31, (In Thousands) 2019 2018 2017 Interest income Loans Acquired SBA 7(a) loans $ 20,687 $ 32,278 $ 37,110 Acquired loans 61,832 46,154 34,720 Originated Transitional loans 69,217 48,499 25,323 Originated SBC loans, at fair value 1,383 3,599 7,769 Originated SBC loans 51,617 24,948 22,564 Originated SBA 7(a) loans 11,409 4,428 998 Acquired Transitional loans 2,047 — — Originated Residential Agency loans 75 51 255 Total loans (1) $ 218,267 $ 159,957 $ 128,739 Held for sale, at fair value, loans Originated Residential Agency loans $ 4,328 $ 3,747 $ 3,723 Originated Freddie loans 1,008 1,428 1,507 Acquired loans 217 153 993 Total loans, held for sale, at fair value (1) $ 5,553 $ 5,328 $ 6,223 Mortgage backed securities, at fair value 6,096 4,214 3,343 Total interest income $ 229,916 $ 169,499 $ 138,305 Interest expense Secured borrowings $ (48,955) $ (35,331) $ (26,092) Securitized debt obligations of consolidated VIEs (69,152) (36,988) (23,387) Guaranteed loan financing (5,125) (11,613) (13,435) Senior secured note (13,920) (13,702) (8,069) Convertible note (8,752) (8,748) (3,427) Corporate debt (5,922) (2,706) — Promissory note (54) (150) (236) Total interest expense $ (151,880) $ (109,238) $ (74,646) Net interest income before provision for loan losses $ 78,036 $ 60,261 $ 63,659 (1) Includes interest income on loans in consolidated VIEs.

Derivative instruments (Tables)

Derivative instruments (Tables)	12 Months Ended
	Dec. 31, 2019
Derivative instruments
Schedule of the Company’s derivatives	As of December 31, 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 Interest rate lock commitments Interest rate risk $ 238,283 $ 2,814 $ — $ 144,799 $ 1,775 $ — Interest Rate Swaps - not designated as hedges Interest rate risk 291,001 — (3,181) 411,811 — (2,349) Interest Rate Swaps - designated as hedges Interest rate risk 158,325 — (1,709) 134,325 — (1,276) Credit Default Swaps Credit Risk 15,000 — (110) 15,000 295 — FX forwards Foreign exchange rate risk 15,000 — (250) — — — Total $ 717,609 $ 2,814 $ (5,250) $ 705,935 $ 2,070 $ (3,625)
Schedule of gains and losses on derivatives	Year Ended December 31, 2019 Year Ended December 31, 2018 Net Realized Unrealized Net Realized Unrealized (In Thousands) (Loss) Gain (Loss) (Loss) Gain (Loss) Credit default swaps (1) $ — $ (404) $ (703) $ 862 Interest rate swaps (1)(2) (6,221) (1,747) 4,272 (5,323) Residential mortgage banking activities interest rate swaps (3) — 483 — (783) Interest rate lock commitments (3) — 1,038 — (51) FX forwards (1) — (250) — — Total $ (6,221) $ (880) $ 3,569 $ (5,295) (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) $ (513) $ — $ (513) $ (6,237) $ (5,724) Total - Year Ended December 31, 2019 $ (513) $ — $ (513) $ (6,237) $ (5,724) Hedge type Interest rate - forecasted transactions (1) $ — $ — $ — $ (954) $ (954) Total - Year Ended December 31, 2018 $ — $ — $ — $ (954) $ (954) (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, held for sale (Tab

Real estate, held for sale (Tables)	12 Months Ended
	Dec. 31, 2019
Real estate, held for sale
Summary of the carrying amount of the Company’s real estate holdings	(In Thousands) December 31, 2019 December 31, 2018 Acquired ORM Portfolio: Retail $ 19,950 $ — Mixed Use 17,478 — Land 7,919 — Lodging/Residential 6,280 — Office 1,256 — Total Acquired ORM REO $ 52,883 $ — Other REO held for sale: Office $ 4,465 6,719 SBA 286 23 Mixed Use 279 279 Retail 660 191 Single Family — 368 Multi-Family — 207 Total Other REO $ 5,690 $ 7,787 Total Real estate, held for sale $ 58,573 $ 7,787

Agreements and transactions w_2

Agreements and transactions with related parties (Tables)	12 Months Ended
	Dec. 31, 2019
Management fee
Related-party transactions
Schedule of related party transactions	For the Year Ended December 31, 2019 2018 Management fee - total $ 9.6 million $ 8.2 million Management fee - amount unpaid $ 2.6 million $ 2.1 million
Incentive distribution
Related-party transactions
Schedule of related party transactions	For the Year Ended December 31, 2019 2018 Incentive fee distribution - total $ 0.1 million $ 1.1 million Incentive fee distribution - amount unpaid $ 0.1 million $ 0.5 million
Expense reimbursement
Related-party transactions
Schedule of related party transactions	For the Year Ended December 31, 2019 2018 Reimbursable expenses payable to our Manager - total $ 7.0 million $ 4.9 million Reimbursable expenses payable to our Manager - amount unpaid $ 4.2 million $ 3.1 million

Other assets and other liabil_2

Other assets and other liabilities (Tables)	12 Months Ended
	Dec. 31, 2019
Other assets and other liabilities
Schedule of other assets and other liabilities	(In Thousands) December 31, 2019 December 31, 2018 Other assets: Deferred tax asset $ 31,803 $ 18,084 Tax receivable 4,019 — Deferred loan exit fees 13,039 8,668 Accrued interest 10,583 7,253 Due from servicers 10,127 7,284 Right-of-use lease asset 4,531 — Goodwill 11,206 — Intangible assets 8,309 2,915 Deferred financing costs 2,046 2,564 Other assets 11,262 17,567 Total other assets $ 106,925 $ 64,335 Accounts payable and other accrued liabilities: Deferred tax liability $ 18,757 $ 19,972 Accrued salaries, wages and commissions 21,146 19,925 Accrued interest payable 17,305 14,244 Servicing principal and interest payable 14,145 10,582 Repair and denial reserve 5,179 5,524 Payable to related parties 2,697 2,580 Accrued professional fees 1,809 1,618 Other liabilities 16,369 274 Total accounts payable and other accrued liabilities $ 97,407 $ 74,719
Schedule of Intangible assets	(In Thousands) December 31, 2019 December 31, 2018 Estimated Useful Life Internally developed software - Knight Capital $ 3,694 $ — 6 years Broker network - Knight Capital 1,156 — 4.5 years SBA license 1,000 1,000 Indefinite life Favorable lease 905 1,063 12 years Trade name - Knight Capital 855 — 6 years Trade name - GMFS 699 852 15 years Total Intangible Assets $ 8,309 $ 2,915
Schedule of accumulated amortization for finite-lived intangible assets	(In Thousands) December 31, 2019 Favorable lease $ 575 Trade name - GMFS 524 Internally developed software - Knight Capital 106 Broker network - Knight Capital 44 Trade name - Knight Capital 25 Total Accumulated Amortization $ 1,274
Amortization expense related to the intangible assets	(In Thousands) December 31, 2019 2020 $ 1,323 2021 1,295 2022 1,268 2023 1,242 2024 1,210 Thereafter 971 Total $ 7,309

Other income and operating ex_2

Other income and operating expenses (Tables)	12 Months Ended
	Dec. 31, 2019
Other income and operating expenses
Schedule of other income and operating expenses	For the Year Ended December 31, (In Thousands) 2019 2018 2017 Other income Origination income $ 5,860 $ 4,590 $ 4,302 Release of repair and denial reserve 345 163 1,013 Other 4,873 833 2,095 Total other income $ 11,078 $ 5,586 $ 7,410 Other operating expenses Origination costs $ 10,168 $ 7,752 $ 6,862 Technology expense 4,834 3,624 3,692 Charge off of real estate 1,317 1,086 756 Rent and property tax expense 4,310 2,524 2,314 Recruiting, training and travel expense 2,352 2,287 2,389 Marketing expense 2,052 2,433 1,629 Loan acquisition costs 575 1,458 600 Financing costs on purchased future receivables 376 — — Other 7,178 7,583 8,697 Total other operating expenses $ 33,162 $ 28,747 $ 26,939

Stockholders Equity (Tables)

Stockholders Equity (Tables)	12 Months Ended
	Dec. 31, 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 January 1, 2018 through December 31, 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 September 10, 2019 September 30, 2019 October 31, 2019 $ 0.40 December 11, 2019 December 31, 2019 January 31, 2020 $ 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) 14.07 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 Granted — — — Vested (6,336) (100) 15.79 Forfeited — — — Canceled — — — Outstanding, September 30, 2019 167,399 $ 2,547 $ 15.21 Granted 865,854 13,525 15.62 Vested (23,636) (350) 14.81 Forfeited — — — Canceled — — — Outstanding, December 31, 2019 1,009,617 $ 15,722 $ 15.57

Earnings per Share of Common _2

Earnings per Share of Common Stock (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings per Share of Common Stock
Schedule of computation of basic and diluted earnings per share	Year Ended December 31, (In Thousands, except for share and per share amounts) 2019 2018 2017 Basic Earnings Net income $ 75,056 $ 61,457 $ 45,814 Less: Income attributable to non-controlling interest 2,088 2,199 2,524 Less: Income attributable to participating shares 653 217 62 Basic earnings $ 72,315 $ 59,041 $ 43,228 Diluted Earnings Net income $ 75,056 $ 61,457 $ 45,814 Less: Income attributable to non-controlling interest 2,088 2,199 2,524 Less: Income attributable to participating shares 653 217 62 Diluted earnings $ 72,315 $ 59,041 $ 43,228 Number of Shares Basic — Average shares outstanding 42,011,750 32,085,975 31,350,102 (1) Effect of dilutive securities — Unvested participating shares 35,898 16,209 1,509 Diluted — Average shares outstanding 42,047,648 32,102,184 31,351,611 Earnings Per Share Attributable to RC Common Stockholders: Basic $ 1.72 $ 1.84 $ 1.38 Diluted 1.72 1.84 1.38

Offsetting assets and liabili_2

Offsetting assets and liabilities (Tables)	12 Months Ended
	Dec. 31, 2019
Offsetting assets and liabilities
Schedule of effect of offsetting recognized assets and liabilities	Gross amounts not offset in the Consolidated Balance Sheets (1) (in thousands) Gross amounts of recognized Assets / Liabilities Gross amounts offset in the Consolidated Balance Sheets Amounts presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received / Paid Net Amount December 31, 2019 Assets Interest rate swaps $ 2,814 $ — $ 2,814 $ — $ 2,814 $ — Total $ 2,814 $ — $ 2,814 $ — $ 2,814 $ — Liabilities Interest rate swaps $ 4,890 $ — $ 4,890 $ — $ 4,890 $ — Credit default swaps 110 — 110 — 110 — FX forwards 250 250 — 250 — Secured borrowings 1,189,392 — 1,189,392 1,189,392 — — Total $ 1,194,642 $ — $ 1,194,642 $ 1,189,392 $ 5,250 $ — December 31, 2018 Assets Credit default swaps $ $ — $ 295 $ — $ 295 $ — Total $ 295 $ — $ 295 $ — $ 295 $ — Liabilities 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 $ — 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.

Commitments, Contingencies an_2

Commitments, Contingencies and Indemnifications (Tables)	12 Months Ended
	Dec. 31, 2019
Commitments, Contingencies and Indemnifications
Schedule of unfunded loan commitments and commitments to originate loans	December 31, December 31, (In Thousands) 2019 2018 Loans, net $ 128,719 $ 161,746 Loans, held for sale at fair value $ 6,982 $ 4,895 December 31, December 31, (In Thousands) 2019 2018 Commitments to originate residential agency loans $ 190,806 $ 124,020

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Taxes
Schedule of income tax provision	Year Ended December 31, (In Thousands) 2019 2018 2017 Current Federal income tax (benefit) $ 523 $ 356 $ (1,235) State and local income tax (benefit) 47 169 (171) Net current tax provision (benefit) 570 525 (1,406) Deferred Federal income tax (benefit) (9,739) 1,167 3,779 State and local income tax (benefit) (1,383) (306) 613 Valuation allowance — — (1,147) Net deferred tax provision (benefit) (11,122) 861 3,245 Total income tax provision (benefit) $ (10,552) $ 1,386 $ 1,839
Schedule of income tax reconciliation	Year Ended December 31, (In Thousands) 2019 2018 U.S. statutory tax $ 13,579 21.0 % $ 13,207 21.0 % State and local income tax (benefit) (1,717) (2.6) 464 0.7 Income attributable to REIT (19,641) (30.4) (11,274) (17.9) Income attributable to Non-controlling interests (462) (0.7) (400) (0.6) Nondeductible (2,692) (4.2) (194) (0.3) Change in tax rate 381 0.6 (554) (0.9) Return to Provision — — (11) — Other — — 148 0.2 Effective income tax (benefit) $ (10,552) (16.3) % $ 1,386 2.2 %
Schedule showing temporary differences with respect to deferred tax assets and liabilities	(In Thousands) December 31, 2019 December 31, 2018 Deferred tax assets: Net operating loss carryforwards $ 23,277 $ 8,408 Unrealized losses 40 1,442 Accruals 2,917 2,815 Depreciation and amortization 1,379 986 Goodwill 3,702 3,927 Compensation 248 279 Other 240 227 Total deferred tax assets $ 31,803 $ 18,084 Deferred tax liabilities: Loan / servicing rights balance $ 17,793 $ 19,210 Derivative instruments 439 133 Other taxable temporary difference 525 629 Total deferred tax liabilities $ 18,757 $ 19,972 Net deferred tax assets (liabilities) $ 13,046 $ (1,888)

Segment Reporting (Tables)

Segment Reporting (Tables)	12 Months Ended
	Dec. 31, 2019
Segment Reporting
Schedule of segment reporting information	Reportable business segments, along with remaining unallocated amounts recorded within Corporate- Other, for the year ended December 31, 2019 are summarized in the below table. SBA Originations, Residential SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 65,922 $ 127,495 $ 32,096 $ 4,403 $ — $ 229,916 Interest expense (40,502) (90,677) (14,864) (5,837) — (151,880) Net interest income before provision for loan losses $ 25,420 $ 36,818 $ 17,232 $ (1,434) $ — $ 78,036 Provision for loan losses (808) (319) (2,557) — — (3,684) Net interest income after provision for loan losses $ 24,612 $ 36,499 $ 14,675 $ (1,434) $ — $ 74,352 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 83,539 $ — $ 83,539 Net realized gain on financial instruments 18 13,750 15,190 — — 28,958 Net unrealized gain (loss) on financial instruments (254) (107) 393 (18,569) (253) (18,790) Servicing income 798 1,898 5,330 22,639 — 30,665 Income on purchased future receivables, net of allowance for doubtful accounts 2,362 — — — — 2,362 Income from unconsolidated joint ventures 6,088 — — — — 6,088 Other income 4,210 4,907 1,548 249 164 11,078 Gain on bargain purchase — — — — 30,728 30,728 Total non-interest income $ 13,222 $ 20,448 $ 22,461 $ 87,858 $ 30,639 $ 174,628 Non-interest expense Employee compensation and benefits (1,855) (6,905) (16,255) (22,882) (3,340) (51,237) Allocated employee compensation and benefits from related party (547) — — — (4,926) (5,473) Variable expenses on residential mortgage banking activities — — — (51,760) — (51,760) Professional fees (723) (1,652) (1,011) (1,101) (2,947) (7,434) Management fees – related party — — — — (9,578) (9,578) Incentive fees – related party — — — — (106) (106) Loan servicing expense (4,662) (5,695) (261) (7,225) (133) (17,976) Merger related expenses — — — — (7,750) (7,750) Other operating expenses (4,573) (11,199) (6,591) (7,717) (3,082) (33,162) Total non-interest expense $ (12,360) $ (25,451) $ (24,118) $ (90,685) $ (31,862) $ (184,476) Net income (loss) before provision for income taxes $ 25,474 $ 31,496 $ 13,018 $ (4,261) $ (1,223) $ 64,504 Total assets $ 1,264,226 $ 2,492,156 $ 760,031 $ 330,363 $ 130,242 $ 4,977,018 Reportable segments for the year ended December 31, 2018 are summarized in the below table. SBA Originations, Residential SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 47,243 $ 81,752 $ 36,706 $ 3,798 $ — $ 169,499 Interest expense (28,946) (60,879) (16,218) (3,195) — (109,238) Net interest income before provision for loan losses $ 18,297 $ 20,873 $ 20,488 $ 603 $ — $ 60,261 Provision for loan losses (1,727) (13) 39 — — (1,701) Net interest income after provision for loan losses $ 16,570 $ 20,860 $ 20,527 $ 603 $ — $ 58,560 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 59,852 $ — $ 59,852 Net realized gain on financial instruments 5,023 17,482 15,904 — — 38,409 Net unrealized gain (loss) on financial instruments (1,156) 142 173 5,694 — 4,853 Servicing income 20 1,396 5,390 20,269 — 27,075 Income on unconsolidated joint ventures 12,148 — — — — 12,148 Other income 368 4,366 621 200 31 5,586 Total non-interest income $ 16,403 $ 23,386 $ 22,088 $ 86,015 $ 31 $ 147,923 Non-interest expense Employee compensation and benefits $ (386) $ (8,815) $ (13,077) $ (33,401) $ (923) $ (56,602) Allocated employee compensation and benefits from related party (420) — — — (3,780) (4,200) Variable expenses on residential mortgage banking activities — — — (22,228) — (22,228) Professional fees (1,310) (1,285) (820) (607) (2,977) (6,999) Management fees – related party — — — — (8,176) (8,176) Incentive fees – related party — — — — (1,143) (1,143) Loan servicing expense (3,926) (3,883) (260) (7,444) (32) (15,545) Other operating expenses (3,214) (10,392) (4,070) (8,254) (2,817) (28,747) Total non-interest expense $ (9,256) $ (24,375) $ (18,227) $ (71,934) $ (19,848) $ (143,640) Net income (loss) before provision for income taxes $ 23,717 $ 19,871 $ 24,388 $ 14,684 $ (19,817) $ 62,843 Total assets $ 644,512 $ 1,606,210 $ 455,513 $ 260,523 $ 70,085 $ 3,036,843 Reportable segments for the year ended December 31, 2017 are summarized in the below table. SBA Originations, Residential SBC Acquisitions, Mortgage Corporate- (In Thousands) Acquisitions Originations and Servicing Banking Other Consolidated Interest income $ 37,198 $ 59,021 $ 38,108 $ 3,978 $ — $ 138,305 Interest expense (16,741) (35,121) (16,098) (3,145) (3,541) (74,646) Net interest income before provision for loan losses $ 20,457 $ 23,900 $ 22,010 $ 833 $ (3,541) $ 63,659 Provision for loan losses (2,026) (195) (142) — — (2,363) Net interest income after provision for loan losses $ 18,431 $ 23,705 $ 21,868 $ 833 $ (3,541) $ 61,296 Non-interest income Residential mortgage banking activities $ — $ — $ — $ 83,437 $ — $ 83,437 Net realized gain on financial instruments (323) 9,665 9,509 — 478 19,329 Net unrealized gain (loss) on financial instruments 1,628 8,125 1,315 (4,000) (68) 7,000 Servicing income 197 824 4,624 17,349 — 22,994 Income on unconsolidated joint venture 1,048 — — — — 1,048 Other income 1,766 3,983 1,513 148 — 7,410 Total non-interest income $ 4,316 $ 22,597 $ 16,961 $ 96,934 $ 410 $ 141,218 Non-interest expense Employee compensation and benefits (576) (8,509) (10,505) (34,601) (848) (55,039) Allocated employee compensation and benefits from related party (384) — — — (3,459) (3,843) Variable expenses on residential mortgage banking activities — — — (41,737) — (41,737) Professional fees (1,501) (1,351) (1,973) (865) (3,231) (8,921) Management fees – related party — — — — (8,059) (8,059) Incentive fees – related party — — — — — — Loan servicing expense (2,981) (2,355) 1,454 (6,441) — (10,323) Other operating expenses (4,285) (9,666) (4,076) (6,677) (2,235) (26,939) Total non-interest expense $ (9,727) $ (21,881) $ (15,100) $ (90,321) $ (17,832) $ (154,861) Income from continuing operations before provision for income taxes $ 13,020 $ 24,421 $ 23,729 $ 7,446 $ (20,963) $ 47,653 Total Assets $ 511,427 $ 1,154,509 $ 510,006 $ 324,392 $ 23,169 $ 2,523,503

Quarterly Financial Data (Una_2

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Data (Unaudited)
Summary of quarterly financial data	The following table summarizes our quarterly financial data which, in the opinion of management, reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of our results of operations (amounts in thousands, except per share amounts): March 31 June 30 September 30 December 31 2019 Net interest income after provision for loan losses $ 12,460 $ 19,933 $ 19,640 $ 22,319 Non-interest income 56,266 32,956 39,984 45,422 Non-interest expense (41,279) (44,600) (49,842) (48,755) Net income 30,450 11,245 12,427 20,934 Net income attributable to Ready Capital Corporation 29,467 10,969 12,104 20,428 Earnings per share - Basic $ 0.90 $ 0.25 $ 0.27 $ 0.43 Earnings per share - Diluted $ 0.90 $ 0.25 $ 0.27 $ 0.43 Dividends declared per share of common stock $ 0.40 $ 0.40 $ 0.40 $ 0.40 2018 Net interest income after provision for loan losses $ 14,317 $ 15,848 $ 14,562 $ 13,833 Non-interest income 42,747 40,288 42,761 22,125 Non-interest expense (35,983) (39,587) (38,859) (29,209) Net income 18,518 15,884 17,569 9,486 Net income attributable to Ready Capital Corporation 17,854 15,296 16,931 9,177 Earnings per share - Basic $ 0.56 $ 0.48 $ 0.53 $ 0.30 Earnings per share - Diluted $ 0.56 $ 0.48 $ 0.53 $ 0.30 Dividends declared per share of common stock $ 0.37 $ 0.40 $ 0.40 $ 0.40

Supplemental Financial Data (Ta

Supplemental Financial Data (Tables)	12 Months Ended
	Dec. 31, 2019
Schedule of income from unconsolidated joint ventures within the consolidated statement of income	Year Ended December 31, (In Thousands) 2019 2018 Income on unconsolidated joint ventures WFLLA, LLC $ 5,344 $ 12,148 Other unconsolidated joint ventures 744 — Income on unconsolidated joint ventures $ 6,088 $ 12,148
Unconsolidated VIEs
Schedule of condensed financial information for unconsolidated subsidiaries	Statements of Income Year Ended December 31, 2019 Year Ended December 31, 2018 (In Thousands) Girod HoldCo, LLC WFLLA, LLC Girod HoldCo, LLC WFLLA, LLC Interest income $ 6,922 $ 3,454 $ 21,182 $ 10,570 Realized gains 5,218 2,604 27,310 13,628 Unrealized gains 15,286 7,628 8,191 4,087 Servicing expense and other (5,996) (2,999) (7,972) (3,989) Income before provision for income taxes $ 21,430 $ 10,687 $ 48,711 $ 24,296

Organization (Details)

Organization (Details) - segment	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Number of reportable segments	4
Number of operating segments	4
Operating Partnership
Ownership percentage in operating partnership	97.90%	96.60%

Organization - Acquisitions (De

Organization - Acquisitions (Details) $ / shares in Units, $ in Thousands	Oct. 25, 2019USD ($)	Mar. 29, 2019USD ($)$ / sharesshares	Dec. 31, 2019
Owens Realty Mortgage, Inc.
Organization
Common share fixed exchange ratio		1.441
Number of common shares issued in acquisition | shares		12,223,830
Total purchase price		$ 179,324
Closing share price | $ / shares		$ 14.67
Knight Capital
Organization
Common stock consideration	$ 10,290
Total purchase price	27,790
Cash consideration	$ 17,500
Ready Capital Shareholders | Owens Realty Mortgage, Inc.
Organization
Percentage of equity interests held after closing		72.00%
Owens Realty Shareholders | Owens Realty Mortgage, Inc.
Organization
Percentage of taxable income distributed in the form of qualifying distributions		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 Millions	12 Months Ended
	Dec. 31, 2019USD ($)segmentclassitem	Dec. 31, 2018USD ($)
Number of reportable segments | segment	4
Amount in money market mutual funds	$ 0	$ 0.6
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	$ 9.5	$ 11.6

Recently Issued Accounting Pr_2

Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jan. 01, 2020	Dec. 31, 2019	Jan. 01, 2019
Leases
Right-of-use assets		$ 4,531
ASU 2016-13 | Forecast | Minimum
Leases
Increase in allowance	$ 8,900
ASU 2016-13 | Forecast | Maximum
Leases
Increase in allowance	11,700
ASU 2016-13 | PCI Loans | Forecast
Leases
Increase in allowance	3,600
ASU 2016-13 | Accrual Loans | Forecast | Minimum
Leases
Increase in allowance	5,300
ASU 2016-13 | Accrual Loans | Forecast | Maximum
Leases
Increase in allowance	$ 8,100
Restatement Adjustment | ASU 2016-02
Leases
Right-of-use assets			$ 3,300
Balance sheet location, Right-of-use assets			us-gaap:PrepaidExpenseAndOtherAssets
Lease liabilities			$ 3,300
Balance sheet location, Lease liabilities			us-gaap:AccountsPayableAndOtherAccruedLiabilities

Business Combinations - Acquisi

Business Combinations - Acquisitions (Details) $ / shares in Units, $ in Thousands	Oct. 25, 2019USD ($)	Mar. 29, 2019USD ($)$ / sharesshares	Nov. 07, 2018
Owens Realty Mortgage, Inc.
Acquisitions
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
Total consideration transferred		$ 179,324
Closing share price | $ / shares		$ 14.67
Gross contractual unpaid principal acquired		$ 134,800
Owens Realty Mortgage, Inc. | Ready Capital Shareholders
Acquisitions
Percentage of equity interests held after closing		72.00%
Knight Capital
Acquisitions
Common stock consideration	$ 10,290
Cash consideration	17,500
Total consideration transferred	$ 27,790

Business Combinations - Fair Va

Business Combinations - Fair Value of Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Oct. 25, 2019	Mar. 29, 2019
Assets:
Real estate, held for sale	$ 52,883
Intangible assets		$ 5,880
Liabilities:
Goodwill	$ 11,206
Owens Realty Mortgage, Inc.
Assets:
Cash and cash equivalents			$ 10,822
Loans, net			130,449
Real estate, held for sale			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
Liabilities:
Secured borrowings			12,713
Accounts payable and other accrued liabilities			1,000
Due to Manager			228
Deferred tax liabilities			123
Total liabilities assumed			14,064
Net assets acquired			$ 210,047
Knight Capital
Assets:
Cash and cash equivalents		1,673
Purchased future receivables,		39,540
Prepaid expenses and other		1,265
Intangible assets		5,880
Total assets acquired		48,358
Liabilities:
Secured borrowings		30,600
Accounts payable and other accrued liabilities		1,173
Total liabilities assumed		31,773
Net assets acquired		16,585
Goodwill		$ 11,205

Business Combinations - Bargain

Business Combinations - Bargain Purchase (Details) $ / shares in Units, $ in Thousands	Oct. 25, 2019USD ($)	Mar. 29, 2019USD ($)$ / sharesshares	Dec. 31, 2019USD ($)
Aggregate consideration transferred, net of assets acquired and bargain purchase gain
Intangible assets	$ 5,880
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
ORM shares outstanding at March 29, 2019 | shares		8,482,880
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			6,200
Knight Capital
Aggregate consideration transferred, net of assets acquired and bargain purchase gain
FV of Net Assets Acquired	16,585
Net Tangible Assets	10,705
Intangible assets	5,880
Total consideration transferred based on value of shares issued	$ 27,790
Acquisition related costs			$ 1,500

Business Combinations - Intangi

Business Combinations - Intangible Assets and Goodwill (Details) $ in Thousands	Oct. 25, 2019USD ($)
Acquisitions
Intangible assets	$ 5,880
Internally developed software
Acquisitions
Intangible assets	$ 3,800
Weighted Average Amortization Life	6 years
Broker network
Acquisitions
Intangible assets	$ 1,200
Weighted Average Amortization Life	4 years 6 months
Trade name
Acquisitions
Intangible assets	$ 880
Weighted Average Amortization Life	6 years
Knight Capital
Acquisitions
Intangible assets	$ 5,880
Weighted Average Amortization Life	6 years

Business Combinations - Pro-for

Business Combinations - Pro-forma Information (Details) - USD ($) $ in Thousands	Mar. 29, 2019	Dec. 31, 2019	Dec. 31, 2018
Pro-forma information
Bargain purchase gain		$ 30,728
Owens Realty Mortgage, Inc.
Pro-forma information
Interest income		232,706	$ 181,780
Interest expense		(152,428)	(111,371)
Provision for loan losses		(3,684)	(1,462)
Noninterest income		145,393	157,049
Noninterest expense		(180,140)	(155,704)
Income before provision for income taxes		41,847	70,292
Income tax benefit (provision)		10,545	(1,945)
Net income		52,392	68,347
Nonrecurring transaction costs excluded from pro forma non-interest expense		9,200
Bargain purchase gain	$ 30,728
Knight Capital
Pro-forma information
Interest income		229,916	169,499
Interest expense		(151,880)	(109,238)
Provision for loan losses		(3,684)	(1,701)
Noninterest income		223,197	192,181
Noninterest expense		(229,648)	(201,454)
Income before provision for income taxes		67,901	49,287
Income tax benefit (provision)		10,552	(1,386)
Net income		78,453	$ 47,901
Nonrecurring transaction costs excluded from pro forma non-interest expense		$ 2,200

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses - Classification, unpaid principal balance, and carrying value (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Carrying Value
Total Loans, before allowance for loan losses	$ 1,733,864	$ 1,199,504
Allowance for loan losses	(5,880)	(6,112)
Total Loans, net	1,727,984	1,193,392
Allowance for loan losses on loans in consolidated VIEs	(7,441)	(8,320)	$ (11,746)
Total Loans, net of allowance for loan losses, including loans in consolidated VIEs	4,054,183	2,414,366
Loans, held for sale, at fair value	188,077	115,258
Total Loans, held for sale, at fair value in consolidated VIEs	4,434
Total Loans, held for sale, at fair value, and Loans, held for sale, at fair value in consolidated VIEs	192,511	115,258
Loans, held-for-investment	4,246,694	2,529,624
UPB
Total Loans, before allowance for loan losses	1,757,468	1,230,582
Total Loans, net	1,757,468	1,230,582
Total Loans, held for sale, at fair value	181,406	111,163
Total Loans, held for sale, at fair value in consolidated VIEs	4,400
Total Loans, held for sale, at fair value, and Loans, held for sale, at fair value in consolidated VIEs	185,806	111,163
Total Loan portfolio	4,285,666	2,587,106
Consolidated VIEs
Carrying Value
Total Loans, in consolidated VIEs, before allowance for loan losses	2,327,760	1,223,182
Allowance for loan losses on loans in consolidated VIEs	(1,561)	(2,208)
Total Loans, net, in consolidated VIEs	2,326,199	1,220,974
Total Loans, net of allowance for loan losses, including loans in consolidated VIEs	4,054,183	2,414,366
UPB
Total Loans, in consolidated VIEs, before allowance for loan losses	2,342,392	1,245,361
Total Loans, net, in consolidated VIEs	2,342,392	1,245,361
Total Loans, net, and Loans, net in consolidated VIEs	4,099,860	2,475,943
Acquired SBA 7(a) loans
Carrying Value
Total Loans, before allowance for loan losses	255,240	264,308
Allowance for loan losses on loans in consolidated VIEs	(2,114)	(2,318)	(3,527)
UPB
Total Loans, before allowance for loan losses	269,396	283,423
Acquired SBA 7(a) loans | Consolidated VIEs
Carrying Value
Total Loans, in consolidated VIEs, before allowance for loan losses	53,320	55,966
UPB
Total Loans, in consolidated VIEs, before allowance for loan losses	66,997	74,554
Acquired loans
Carrying Value
Total Loans, before allowance for loan losses	356,545	206,983
Allowance for loan losses on loans in consolidated VIEs	(2,903)	(5,052)	(7,264)
Loans, held for sale, at fair value	1,245	3,008
Total Loans, held for sale, at fair value in consolidated VIEs	4,434
UPB
Total Loans, before allowance for loan losses	358,777	215,213
Total Loans, held for sale, at fair value	1,208	2,935
Total Loans, held for sale, at fair value in consolidated VIEs	4,400
Acquired loans | Consolidated VIEs
Carrying Value
Total Loans, in consolidated VIEs, before allowance for loan losses	666,226	343,156
UPB
Total Loans, in consolidated VIEs, before allowance for loan losses	671,698	354,794
Acquired Transitional loans
Carrying Value
Total Loans, before allowance for loan losses	73,762
Allowance for loan losses on loans in consolidated VIEs	(151)
UPB
Total Loans, before allowance for loan losses	74,302
Originated Transitional loans
Carrying Value
Total Loans, before allowance for loan losses	593,657	272,981
Allowance for loan losses on loans in consolidated VIEs	(188)	(353)
UPB
Total Loans, before allowance for loan losses	600,226	275,237
Originated Transitional loans | Consolidated VIEs
Carrying Value
Total Loans, in consolidated VIEs, before allowance for loan losses	490,913	391,752
UPB
Total Loans, in consolidated VIEs, before allowance for loan losses	493,217	393,116
Originated SBC loans, at fair value
Carrying Value
Total Loans, before allowance for loan losses	20,212	22,664
UPB
Total Loans, before allowance for loan losses	19,565	22,325
Originated SBC loans
Carrying Value
Total Loans, before allowance for loan losses	133,118	345,100
Allowance for loan losses on loans in consolidated VIEs	(304)	(11)	(637)
UPB
Total Loans, before allowance for loan losses	132,227	342,751
Originated SBC loans | Consolidated VIEs
Carrying Value
Total Loans, in consolidated VIEs, before allowance for loan losses	1,037,844	432,308
UPB
Total Loans, in consolidated VIEs, before allowance for loan losses	1,026,921	422,897
Originated SBA 7(a) loans
Carrying Value
Total Loans, before allowance for loan losses	297,934	85,569
Allowance for loan losses on loans in consolidated VIEs	(1,781)	(586)	$ (318)
Loans, held for sale, at fair value	28,551	21,153
UPB
Total Loans, before allowance for loan losses	299,580	89,733
Total Loans, held for sale, at fair value	26,669	19,669
Originated SBA 7(a) loans | Consolidated VIEs
Carrying Value
Total Loans, in consolidated VIEs, before allowance for loan losses	79,457
UPB
Total Loans, in consolidated VIEs, before allowance for loan losses	83,559
Originated Residential Agency loans
Carrying Value
Total Loans, before allowance for loan losses	3,396	1,899
Loans, held for sale, at fair value	136,506	67,775
UPB
Total Loans, before allowance for loan losses	3,395	1,900
Total Loans, held for sale, at fair value	132,016	65,586
Originated Freddie Mac loans
Carrying Value
Loans, held for sale, at fair value	21,775	23,322
UPB
Total Loans, held for sale, at fair value	$ 21,513	$ 22,973

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses - Delinquency (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Loan delinquency information
Total Loans Carrying Value	$ 4,056,607	$ 2,416,303
Non-Accrual Loans	84,340	49,486
90+ Days Past Due but Accruing	4,782	4,854
General allowance for loan losses	(2,424)	(1,937)
Total Loans, net of allowance for loan losses, including loans in consolidated VIEs	$ 4,054,183	$ 2,414,366
Percentage of outstandings	100.00%	100.00%
Financing Receivable, Nonaccrual, Percent Past Due	2.10%	2.00%
Percentage of outstandings - Accruing	0.10%	0.20%
Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	$ 3,932,421	$ 2,337,336
Percentage of outstandings	97.00%	96.70%
30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	$ 77,811	$ 42,331
Percentage of outstandings	1.90%	1.80%
90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	$ 46,375	$ 36,636
Percentage of outstandings	1.10%	1.50%
Acquired SBA 7(a) loans
Loan delinquency information
Total Loans Carrying Value	$ 306,860	$ 318,488
Non-Accrual Loans	9,177	17,916
90+ Days Past Due but Accruing	1,326	1,043
General allowance for loan losses	(414)	(532)
Acquired SBA 7(a) loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	297,172	299,080
Acquired SBA 7(a) loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	4,646	14,943
Acquired SBA 7(a) loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	5,042	4,465
Acquired loans
Loan delinquency information
Total Loans Carrying Value	1,020,521	545,695
Non-Accrual Loans	17,774	11,447
90+ Days Past Due but Accruing	3,382	3,811
General allowance for loan losses	(652)	(608)
Acquired loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	969,208	524,930
Acquired loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	36,405	7,213
Acquired loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	14,908	13,552
Acquired Transitional loans
Loan delinquency information
Total Loans Carrying Value	73,762
Non-Accrual Loans	5,726
General allowance for loan losses	(151)
Acquired Transitional loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	63,051
Acquired Transitional loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	9,489
Acquired Transitional loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	1,222
Originated Transitional loans
Loan delinquency information
Total Loans Carrying Value	1,086,328	664,733
Non-Accrual Loans	24,587
General allowance for loan losses	(64)	(353)
Originated Transitional loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	1,074,955	659,103
Originated Transitional loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	5,728	5,630
Originated Transitional loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	5,645
Originated SBC loans, at fair value
Loan delinquency information
Total Loans Carrying Value	20,212	22,664
Originated SBC loans, at fair value | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	20,212	22,664
Originated SBC loans
Loan delinquency information
Total Loans Carrying Value	1,168,899	777,408
Non-Accrual Loans	16,089	16,895
General allowance for loan losses	(124)	(11)
Originated SBC loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	1,137,140	748,146
Originated SBC loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	15,670	12,367
Originated SBC loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	16,089	16,895
Originated SBA 7(a) loans
Loan delinquency information
Total Loans Carrying Value	376,629	85,416
Non-Accrual Loans	8,882	1,666
General allowance for loan losses	(1,019)	(433)
Originated SBA 7(a) loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	370,101	83,076
Originated SBA 7(a) loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	5,238	2,178
Originated SBA 7(a) loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	1,290	162
Originated Residential Agency loans
Loan delinquency information
Total Loans Carrying Value	3,396	1,899
Non-Accrual Loans	2,105	1,562
90+ Days Past Due but Accruing	74
Originated Residential Agency loans | Current and less than 30 days past due
Loan delinquency information
Total Loans Carrying Value	582	337
Originated Residential Agency loans | 30-89 Days Past Due
Loan delinquency information
Total Loans Carrying Value	635
Originated Residential Agency loans | 90+ Days Past Due
Loan delinquency information
Total Loans Carrying Value	$ 2,179	$ 1,562

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses - Credit Quality (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 4,056,607	$ 2,416,303
General allowance for loan losses	(2,424)	(1,937)
Total Loans, net of allowance for loan losses, including loans in consolidated VIEs	4,054,183	2,414,366
Carrying amount of loan foreclosure in process	800	1,400
0.0 - 20.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 228,992	$ 124,928
Percentage of outstanding	5.60%	5.20%
20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 521,832	$ 293,021
Percentage of outstanding	12.90%	12.10%
40.1 - 60.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 1,146,672	$ 697,709
Percentage of outstanding	28.30%	28.90%
60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 1,793,845	$ 1,001,900
Percentage of outstanding	44.20%	41.50%
80.1 - 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 198,096	$ 200,209
Percentage of outstanding	4.90%	8.30%
Greater than 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 167,170	$ 98,536
Percentage of outstanding	4.10%	4.00%
Acquired SBA 7(a) loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	$ 306,860	$ 318,488
General allowance for loan losses	(414)	(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	7,712	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	39,566	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	103,590	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	83,954	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	39,726	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	32,312	46,262
Acquired loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	1,020,521	545,695
General allowance for loan losses	(652)	(608)
Acquired loans | 0.0 - 20.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	215,041	118,198
Acquired loans | 20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	366,665	165,567
Acquired loans | 40.1 - 60.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	265,994	136,206
Acquired loans | 60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	128,962	70,017
Acquired loans | 80.1 - 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	30,104	40,003
Acquired loans | Greater than 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	13,755	15,704
Acquired Transitional loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	73,762
General allowance for loan losses	(151)
Acquired Transitional loans | 0.0 - 20.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	3,638
Acquired Transitional loans | 20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	4,806
Acquired Transitional loans | 40.1 - 60.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	27,222
Acquired Transitional loans | 60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	32,469
Acquired Transitional loans | 80.1 - 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	5,627
Originated Transitional loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	1,086,328	664,733
General allowance for loan losses	(64)	(353)
Originated Transitional loans | 0.0 - 20.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	1,736
Originated Transitional loans | 20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	28,108	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	277,388	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	750,298	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	28,059	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	739	6,147
Originated SBC loans, at fair value
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	20,212	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	8,192	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	6,422	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	5,598	7,736
Originated SBC loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	1,168,899	777,408
General allowance for loan losses	(124)	(11)
Originated SBC loans | 20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	60,601	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	431,312	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	660,733	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	8,045
Originated SBC loans | Greater than 100.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	8,208
Originated SBA 7(a) loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	376,629	85,416
General allowance for loan losses	(1,019)	(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	865	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	13,843	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	41,166	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	130,177	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	78,544	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	112,034	30,321
Originated Residential Agency loans
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	3,396	1,899
Originated Residential Agency loans | 20.1 - 40.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	51
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
Originated Residential Agency loans | 60.1 - 80.0%
Credit quality of loans
Total Loans, before allowance for loan losses, including loans in consolidated VIEs	830	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	2,393	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	$ 122	$ 102

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses - Geographic and Collateral Concentration (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Geographical concentration
Concentration risk
Percentage of loan	100.00%	100.00%
Geographical concentration | California
Concentration risk
Percentage of loan	16.90%	14.10%
Geographical concentration | Texas
Concentration risk
Percentage of loan	15.20%	11.30%
Geographical concentration | Florida
Concentration risk
Percentage of loan	8.30%	10.80%
Geographical concentration | New York
Concentration risk
Percentage of loan	8.30%	6.30%
Geographical concentration | Illinois
Concentration risk
Percentage of loan	5.20%	3.80%
Geographical concentration | Georgia
Concentration risk
Percentage of loan	4.80%	5.30%
Geographical concentration | Arizona
Concentration risk
Percentage of loan	3.40%	5.00%
Geographical concentration | North Carolina
Concentration risk
Percentage of loan	3.20%	3.70%
Geographical concentration | Colorado
Concentration risk
Percentage of loan	2.80%	2.70%
Geographical concentration | Washington
Concentration risk
Percentage of loan	2.80%	2.80%
Geographical concentration | Other
Concentration risk
Percentage of loan	29.10%	34.20%
Collateral concentration
Concentration risk
Percentage of loan	100.00%	100.00%
Percentage of SBA loan	100.00%	100.00%
Collateral concentration | Offices of Physicians
Concentration risk
Percentage of SBA loan	14.10%	17.70%
Collateral concentration | Child Day Care Services
Concentration risk
Percentage of SBA loan	8.10%	9.90%
Collateral concentration | Hotels, Motels and Tourist Courts
Concentration risk
Percentage of SBA loan	11.60%	3.80%
Collateral concentration | Eating Places
Concentration risk
Percentage of SBA loan	6.10%	5.40%
Collateral concentration | Lodging
Concentration risk
Percentage of SBA loan	5.70%	10.10%
Collateral concentration | Veterinarians
Concentration risk
Percentage of SBA loan	4.10%	6.80%
Collateral concentration | Gasoline Service Stations
Concentration risk
Percentage of SBA loan	3.70%	2.30%
Collateral concentration | Funeral Service and Crematories
Concentration risk
Percentage of SBA loan	2.00%	2.30%
Collateral concentration | Grocery Stores
Concentration risk
Percentage of SBA loan	2.00%	3.80%
Collateral concentration | Auto
Concentration risk
Percentage of SBA loan	1.30%	2.70%
Collateral concentration | Other
Concentration risk
Percentage of SBA loan	41.30%	35.20%
Collateral concentration | Multi-family
Concentration risk
Percentage of loan	26.60%	23.30%
Collateral concentration | SBA
Concentration risk
Percentage of loan	17.60%	18.10%
Collateral concentration | Retail
Concentration risk
Percentage of loan	17.50%	18.50%
Collateral concentration | Office
Concentration risk
Percentage of loan	12.90%	15.10%
Collateral concentration | Mixed Use
Concentration risk
Percentage of loan	10.40%	9.60%
Collateral concentration | Industrial
Concentration risk
Percentage of loan	6.40%	8.20%
Collateral concentration | Lodging/Residential
Concentration risk
Percentage of loan	3.30%	2.40%
Collateral concentration | Other
Concentration risk
Percentage of loan	5.30%	4.80%

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	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for loan losses
General	$ 2,424	$ 1,937
Specific	2,093	1,988
PCI	2,924	4,395
Ending Balance	7,441	8,320	$ 11,746
Originated SBC loans
Allowance for loan losses
General	124	11
Specific	180
Ending Balance	304	11	637
Originated Transitional loans
Allowance for loan losses
General	64	353
Specific	124
Ending Balance	188	353
Acquired loans
Allowance for loan losses
General	652	608
Specific	86	1,012
PCI	2,165	3,432
Ending Balance	2,903	5,052	7,264
Acquired SBA 7(a) loans
Allowance for loan losses
General	414	532
Specific	941	823
PCI	759	963
Ending Balance	2,114	2,318	3,527
Originated SBA 7(a) loans
Allowance for loan losses
General	1,019	433
Specific	762	153
Ending Balance	1,781	$ 586	$ 318
Acquired Transitional loans
Allowance for loan losses
General	151
Ending Balance	$ 151

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses - Investment Loans Allowance Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for loan losses
Beginning Balance	$ 8,320	$ 11,746
Provision for (Recoveries of) loan losses	3,684	1,701	$ 2,363
Charge-offs and sales	(3,069)	(2,452)
Recoveries	(1,494)	(2,675)
Ending Balance	7,441	8,320	11,746
Originated SBC loans
Allowance for loan losses
Beginning Balance	11	637
Provision for (Recoveries of) loan losses	420	(457)
Charge-offs and sales	(127)	(169)
Ending Balance	304	11	637
Originated Transitional loans
Allowance for loan losses
Beginning Balance	353
Provision for (Recoveries of) loan losses	(167)	353
Recoveries	2
Ending Balance	188	353
Acquired loans
Allowance for loan losses
Beginning Balance	5,052	7,264
Provision for (Recoveries of) loan losses	630	1,843
Charge-offs and sales	(1,144)	(1,380)
Recoveries	(1,635)	(2,675)
Ending Balance	2,903	5,052	7,264
Acquired SBA 7(a) loans
Allowance for loan losses
Beginning Balance	2,318	3,527
Provision for (Recoveries of) loan losses	939	(306)
Charge-offs and sales	(1,282)	(903)
Recoveries	139
Ending Balance	2,114	2,318	3,527
Originated SBA 7(a) loans
Allowance for loan losses
Beginning Balance	586	318
Provision for (Recoveries of) loan losses	1,711	268
Charge-offs and sales	(516)
Ending Balance	1,781	$ 586	$ 318
Acquired Transitional loans
Allowance for loan losses
Provision for (Recoveries of) loan losses	151
Ending Balance	$ 151

Loans and Allowance for Loan _9

Loans and Allowance for Loan Losses - Investment Loans Impairment (Details) - Non - PCI Loans - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Impaired loans
Impaired loans with an allowance	$ 18,063	$ 9,734
Impaired loans without an allowance	60,036	33,082
Total recorded carrying value of impaired loans	78,099	42,816
Allowance for loan losses related to impaired loans	(2,093)	(1,989)
Unpaid principal balance of impaired loans	83,991	49,128
Impaired loans on non-accrual status	78,099	42,816
Average carrying amount of impaired loans	67,553	36,675
Interest income recognized on impaired loans	$ 2,777	$ 966

Loans and Allowance for Loan_10

Loans and Allowance for Loan Losses - TDR Accrual Status (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Troubled debt restructurings (TDRs)
Recorded carrying value modified loans classified as TDR	$ 20,462	$ 19,169
Allowance for loan losses on loans classified as TDRs	728	599
Carrying value of modified loans classified as TDRs
Carrying value of modified loans classified as TDRs on accrual status	7,770	9,071
Carrying value of modified loans classified as TDRs on non-accrual status	12,692	10,098
Total carrying value of modified loans classified as TDRs	20,462	19,169
SBC
Troubled debt restructurings (TDRs)
Recorded carrying value modified loans classified as TDR	6,258	1,825
Allowance for loan losses on loans classified as TDRs	274	321
Carrying value of modified loans classified as TDRs
Carrying value of modified loans classified as TDRs on accrual status	333	1,696
Carrying value of modified loans classified as TDRs on non-accrual status	5,925	129
Total carrying value of modified loans classified as TDRs	6,258	1,825
SBA
Troubled debt restructurings (TDRs)
Recorded carrying value modified loans classified as TDR	14,204	17,344
Allowance for loan losses on loans classified as TDRs	454	278
Carrying value of modified loans classified as TDRs
Carrying value of modified loans classified as TDRs on accrual status	7,437	7,375
Carrying value of modified loans classified as TDRs on non-accrual status	6,767	9,969
Total carrying value of modified loans classified as TDRs	$ 14,204	$ 17,344

Loans and Allowance for Loan_11

Loans and Allowance for Loan Losses - TDR Activity (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan
Troubled debt restructurings (TDRs)
Number of loans permanently modified | loan	34	39
Pre-modification recorded balance	$ 6,214	$ 10,658
Post-modification recorded balance	$ 5,947	$ 10,710
Number of loans that remain in default | loan	11	12
Balance of loans that remain in default	$ 2,774	$ 3,978
TDR Modifications including financial effects	$ 6,537	$ 10,476
SBC
Troubled debt restructurings (TDRs)
Number of loans permanently modified | loan	3	1
Pre-modification recorded balance	$ 2,169	$ 3,444
Post-modification recorded balance	$ 2,169	$ 3,444
Number of loans that remain in default | loan	3	1
Balance of loans that remain in default	$ 2,240	$ 3,444
TDR Modifications including financial effects	$ 2,240	$ 3,444
SBA
Troubled debt restructurings (TDRs)
Number of loans permanently modified | loan	31	38
Pre-modification recorded balance	$ 4,045	$ 7,214
Post-modification recorded balance	$ 3,778	$ 7,266
Number of loans that remain in default | loan	8	11
Balance of loans that remain in default	$ 534	$ 534
TDR Modifications including financial effects	4,297	7,032
Term Extension
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	4,033	6,844
Term Extension | SBA
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	4,033	6,844
Principal Reduction
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects		7
Principal Reduction | SBA
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects		7
Foreclosure
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	2,504	3,625
Foreclosure | SBC
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	2,240	3,444
Foreclosure | SBA
Troubled debt restructurings (TDRs)
TDR Modifications including financial effects	$ 264	$ 181

Loans and Allowance for Loan_12

Loans and Allowance for Loan Losses - Investment Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Acquired loans
Allowance for loan losses on loans in consolidated VIEs	$ (7,441)	$ (8,320)	$ (11,746)
Non - PCI Loans
Acquired loans
Unpaid principal balance	4,012,432	2,361,155
Accretable discount	(24,436)	(31,533)
Loans, held-for-investment	3,987,996	2,329,622
Allowance for loan losses on loans in consolidated VIEs	(4,517)	(3,925)
Loans, held-for-investment	3,983,479	2,325,697
PCI Loans
Acquired loans
Unpaid principal balance	67,863	92,463
Non-accretable discount	(4,887)	(6,040)
Accretable discount	(9,559)	(16,023)	$ (23,749)
Loans, held-for-investment	53,417	70,400
Allowance for loan losses on loans in consolidated VIEs	(2,924)	(4,395)
Loans, held-for-investment	$ 50,493	$ 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	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accretable yield
Beginning accretable discount- PCI loans	$ 16,023	$ 23,749
Purchases/Originations		514
Sales	(2,114)	(2,554)
Accretion	(3,444)	(5,123)
Other	478	726
Transfers	(1,384)	(1,289)
Ending accretable discount- PCI loans	$ 9,559	16,023
Contractually required principal and interest payments receivable		4,100
Expected cash flows		1,800
Fair value (initial carrying amount)		$ 1,400

Fair Value Measurements - Finan

Fair Value Measurements - Financial Instruments Carried at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets:
Loans, held for sale, at fair value	$ 188,077	$ 115,258
Derivative instruments, at fair value	2,814	2,070
Residential mortgage servicing rights, at fair value	91,174	93,065
Liabilities:
Derivative instruments, at fair value	5,250	3,625
Recurring
Assets:
Cash held in money market funds		586
Loans, held for sale, at fair value	192,510	115,258
Loans, net at fair value	20,212	22,664
Mortgage backed securities, at fair value	92,466	91,937
Derivative instruments, at fair value	2,814	2,070
Residential mortgage servicing rights, at fair value	91,174	93,065
Total assets	399,176	325,580
Liabilities:
Derivative instruments, at fair value	5,250	3,625
Contingent consideration		1,207
Total liabilities	5,250	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	192,510	115,258
Mortgage backed securities, at fair value	92,006	79,789
Derivative instruments, at fair value		294
Total assets	284,516	195,341
Liabilities:
Derivative instruments, at fair value	5,250	3,625
Total liabilities	5,250	3,625
Recurring | Level 3 inputs
Assets:
Loans, net at fair value	20,212	22,664
Mortgage backed securities, at fair value	460	12,148
Derivative instruments, at fair value	2,814	1,776
Residential mortgage servicing rights, at fair value	91,174	93,065
Total assets	$ 114,660	129,653
Liabilities:
Contingent consideration		1,207
Total liabilities		$ 1,207

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Mortgage backed securities
Changes in fair value of assets
Beginning Balance	$ 12,148	$ 8,063
Purchases or Originations	9,593
Sales / Principal payments	(2,230)	(977)
Realized gains, net	517	271
Unrealized gains (losses), net	98	2,866
Accreted discount, net	141	84
Transfer to (from) Level 3	(19,807)	1,841
Ending Balance	460	12,148
Total unrealized gain (loss)	355	100
Derivatives
Changes in fair value of assets
Beginning Balance	1,776	1,827
Unrealized gains (losses), net	1,038	(51)
Ending Balance	2,814	1,776
Total unrealized gain (loss)	1,038	1,776
Loans, held at fair value
Changes in fair value of assets
Beginning Balance	22,664	188,150
Purchases or Originations		150
Sales / Principal payments	(2,744)	(19,188)
Realized gains, net	(141)	46
Unrealized gains (losses), net	433	(720)
Transfer from loans, held-for-investment, net		(145,774)
Ending Balance	20,212	22,664
Total unrealized gain (loss)	647	325
Mortgage servicing rights
Changes in fair value of assets
Beginning Balance	93,065	72,295
Additions due to loans sold, servicing retained	26,854	20,974
Sales / Principal payments	(10,178)	(5,899)
Unrealized gains (losses), net	(18,567)	5,695
Ending Balance	91,174	93,065
Total unrealized gain (loss)	(18,567)	8,617
Contingent Consideration
Changes in fair value of assets
Beginning Balance	1,207	10,016
Amortization and adjustment for earn-out payments	$ (1,207)	(8,809)
Ending Balance		$ 1,207

Fair Value Measurements - Valua

Fair Value Measurements - Valuation and Inputs, at FV (Details) - Recurring - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair value inputs, quantitative information
Asset, fair value	$ 399,176	$ 325,580
Liabilities, fair value	5,250	4,832
Level 3 inputs
Fair value inputs, quantitative information
Asset, fair value	114,660	129,653
Liabilities, fair value		1,207
Loans, held at fair value | Level 3 inputs | Third Party Mark
Fair value inputs, quantitative information
Asset, fair value	$ 20,212	$ 22,664
Loans, held at fair value | Level 3 inputs | Third Party Mark | Minimum
Fair value inputs, quantitative information
Price	$ 100.47	$ 99.41
Loans, held at fair value | Level 3 inputs | Third Party Mark | Maximum
Fair value inputs, quantitative information
Price	110.83	105.21
Loans, held at fair value | Level 3 inputs | Third Party Mark | Weighted Average
Fair value inputs, quantitative information
Price	$ 103.31	$ 101.52
Mortgage backed securities | Level 3 inputs | Third Party Mark
Fair value inputs, quantitative information
Asset, fair value	$ 357	$ 12,033
Mortgage backed securities | Level 3 inputs | Third Party Mark | Minimum
Fair value inputs, quantitative information
Price	$ 1	$ 44.65
Mortgage backed securities | Level 3 inputs | Third Party Mark | Maximum
Fair value inputs, quantitative information
Price	1	97.50
Mortgage backed securities | Level 3 inputs | Third Party Mark | Weighted Average
Fair value inputs, quantitative information
Price	$ 1	$ 70.92
Mortgage backed securities | Level 3 inputs | Transaction Price
Fair value inputs, quantitative information
Asset, fair value	$ 103	$ 115
Mortgage backed securities | Level 3 inputs | Transaction Price | Minimum
Fair value inputs, quantitative information
Price	$ 99	$ 99
Mortgage backed securities | Level 3 inputs | Transaction Price | Maximum
Fair value inputs, quantitative information
Price	99	99
Mortgage backed securities | Level 3 inputs | Transaction Price | Weighted Average
Fair value inputs, quantitative information
Price	$ 99	$ 99
Interest-Only-Strips | Level 3 inputs | Third Party Mark | Weighted Average
Fair value inputs, quantitative information
Asset, fair value	$ 400	$ 400
Mortgage servicing rights | Level 3 inputs | Discounted Cash Flow
Fair value inputs, quantitative information
Asset, fair value	$ 91,174	93,065
Contingent Consideration | Level 3 inputs | Discounted Cash Flow
Fair value inputs, quantitative information
Liabilities, fair value		$ 1,207

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities, Not at FV (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets:
Purchased future receivables, net	$ 43,265
Liabilities:
Senior secured notes, net	179,289	$ 178,870
Carrying Amount
Assets:
Loans, held-for-investment	4,033,972	2,391,702
Purchased future receivables, net	43,265
Servicing rights	30,795	26,997
Total assets	4,108,032	2,418,699
Liabilities:
Secured borrowings	1,189,392	834,547
Securitized debt obligations of consolidated VIEs	1,815,154	905,367
Senior secured notes, net	179,289	178,870
Guaranteed loan financing	485,461	229,678
Convertible note, net	111,040	109,979
Corporate debt, net	149,986	48,457
Total liabilities	3,930,322	2,306,898
Carrying Amount | Level 3 inputs
Assets:
Due from servicers and accrued interest	20,700	14,500
Receivable from third parties	1,200	8,900
Liabilities:
Payable to related parties and accrued interest payable	20,000	16,800
Fair Value
Assets:
Loans, held-for-investment	4,147,831	2,434,185
Purchased future receivables, net	43,265
Servicing rights	34,723	28,441
Total assets	4,225,819	2,462,626
Liabilities:
Secured borrowings	1,189,392	834,547
Securitized debt obligations of consolidated VIEs	1,859,047	918,536
Senior secured notes, net	190,923	176,981
Guaranteed loan financing	515,182	236,804
Convertible note, net	116,654	101,581
Corporate debt, net	161,098	48,457
Total liabilities	$ 4,032,296	$ 2,316,906

Mortgage Backed Securities (Det

Mortgage Backed Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Mortgage Backed Securities
Fair Value	$ 92,466	$ 91,937
Mortgage backed securities
Mortgage Backed Securities
Weighted Average Interest Rate	4.60%	4.70%
Principal Balance	$ 119,237	$ 117,848
Amortized Cost	86,669	87,163
Fair Value	92,466	91,937
Gross Unrealized Gains	5,839	4,856
Gross Unrealized Losses	$ (42)	$ (82)
Mortgage Backed Securities Weighted Average Interest Rate
After five years through ten years (as percent)	3.80%	10.60%
After ten years (as percent)	4.70%	4.50%
Mortgage Backed Securities Principal Balance
After five years through ten years	$ 2,869	$ 3,406
After ten years	116,368	114,442
Mortgage Backed Securities Amortized Cost
After five years through ten years	2,641	3,103
After ten years	84,028	84,060
Mortgage Backed Securities Estimated Fair Value
After five years through ten years	2,825	3,520
After ten years	$ 89,641	$ 88,417
Freddie Mac Loans
Mortgage Backed Securities
Weighted Average Interest Rate	4.30%	4.50%
Principal Balance	$ 83,149	$ 97,066
Amortized Cost	61,207	70,819
Fair Value	66,108	75,591
Gross Unrealized Gains	4,915	4,826
Gross Unrealized Losses	$ (14)	$ (54)
Commercial Loans
Mortgage Backed Securities
Weighted Average Interest Rate	5.40%	5.50%
Principal Balance	$ 35,984	$ 20,666
Amortized Cost	25,358	16,228
Fair Value	26,255	16,231
Gross Unrealized Gains	924	30
Gross Unrealized Losses	$ (27)	$ (27)
Tax Liens
Mortgage Backed Securities
Weighted Average Interest Rate	6.00%	6.00%
Principal Balance	$ 104	$ 116
Amortized Cost	104	116
Fair Value	103	115
Gross Unrealized Losses	$ (1)	$ (1)

Servicing rights (Details)

Servicing rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Servicing rights
Unpaid Principal Amount			$ 1,735,493	$ 1,470,532
Carrying Value	$ 30,795	$ 26,997	30,795	26,997
Total servicing rights			121,969	120,062
Servicing rights activity at amortized cost
Beginning net carrying value at amortized cost	26,997
Ending net carrying value at amortized cost	30,795	26,997
Residential MSRs
Servicing rights
Unpaid Principal Amount			8,164,604	7,466,679
Servicing rights activity at fair value
Beginning net carrying value at fair value	93,065	72,295
Additions due to loans sold, servicing retained	26,854	20,974
Loan pay-offs	(10,178)	(5,899)
Unrealized gains (losses)	(18,567)	5,695
Ending net carrying value at fair value	91,174	93,065
Freddie Mac
Servicing rights
Unpaid Principal Amount			1,167,476	964,377
Carrying Value	13,135	10,248	13,135	10,248
Servicing rights activity at amortized cost
Beginning net carrying value at amortized cost	10,248	5,059
Additions due to loans sold, servicing retained	5,195	6,832
Amortization	(2,308)	(1,643)
Ending net carrying value at amortized cost	13,135	10,248
Freddie Mac | Residential MSRs
Servicing rights
Unpaid Principal Amount			2,270,981	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	23,996	28,917
SBA
Servicing rights
Unpaid Principal Amount			568,017	506,155
Carrying Value	17,660	16,749	17,660	16,749
Servicing rights activity at amortized cost
Beginning net carrying value at amortized cost	16,749	16,684
Additions due to loans sold, servicing retained	3,470	3,569
Acquisitions	894	362
Amortization	(3,393)	(3,418)
Impairment	(60)	(448)
Ending net carrying value at amortized cost	17,660	16,749
SBA | Freddie Mac
Servicing rights
Carrying Value	30,795	26,997	$ 30,795	$ 26,997
Servicing rights activity at amortized cost
Beginning net carrying value at amortized cost	26,997
Ending net carrying value at amortized cost	$ 30,795	$ 26,997

Servicing rights - Estimated va

Servicing rights - Estimated valuation (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Freddie Mac | Minimum
Servicing rights, valuation assumptions
Forward prepayment assumptions	0.50%	0.00%
Forward default rate	0.00%	0.00%
Discount rate	6.00%	12.00%
Servicing expense (as a percent)	0.20%	0.20%
Freddie Mac | Maximum
Servicing rights, valuation assumptions
Forward prepayment assumptions	15.90%	35.00%
Forward default rate	0.50%	2.00%
Discount rate	6.00%	12.00%
Servicing expense (as a percent)	0.30%	0.20%
Freddie Mac | Weighted Average
Servicing rights, valuation assumptions
Forward prepayment assumptions	6.60%	5.00%
Forward default rate	0.40%	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	6.30%	3.80%
Forward default rate	0.00%	0.00%
Discount rate	8.80%	12.00%
Servicing expense (as a percent)	0.40%	0.40%
SBA | Maximum
Servicing rights, valuation assumptions
Forward prepayment assumptions	21.20%	20.20%
Forward default rate	10.80%	12.20%
Discount rate	8.80%	12.00%
Servicing expense (as a percent)	0.40%	0.40%
SBA | Weighted Average
Servicing rights, valuation assumptions
Forward prepayment assumptions	9.30%	9.20%
Forward default rate	7.30%	6.40%
Discount rate	8.80%	12.00%
Servicing expense (as a percent)	0.40%	0.40%

Servicing rights - Assumptions

Servicing rights - Assumptions (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Freddie Mac
Adverse changes to key assumptions on the carrying amount of the servicing rights
Prepayment rate (10% adverse change)	$ (285)	$ (63)
Prepayment rate (20% adverse change)	(558)	(124)
Default rate (10% adverse change)	(5)	(11)
Default rate (20% adverse change)	(10)	(22)
Discount rate (10% adverse change)	(381)	(490)
Discount rate (20% adverse change)	(746)	(791)
SBA
Adverse changes to key assumptions on the carrying amount of the servicing rights
Prepayment rate (10% adverse change)	(563)	(470)
Prepayment rate (20% adverse change)	(1,097)	(915)
Default rate (10% adverse change)	(94)	(63)
Default rate (20% adverse change)	(186)	(125)
Discount rate (10% adverse change)	(520)	(579)
Discount rate (20% adverse change)	$ (1,011)	$ (1,118)

Servicing rights - Amortization

Servicing rights - Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Future amortization expense for the servicing rights
2020	$ 5,699
2021	4,961
2022	4,305
2023	3,711
2024	3,182
Thereafter	8,937
Total	$ 30,795	$ 26,997

Servicing rights - Residential

Servicing rights - Residential mortgage servicing rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Servicing rights
Unpaid Principal Amount	$ 1,735,493	$ 1,470,532
Residential MSRs
Servicing rights
Unpaid Principal Amount	8,164,604	7,466,679
Fair Value	91,174	93,065	$ 72,295
Possible impact of adverse changes to key assumptions
Prepayment rate (10% adverse change)	(4,195)	(3,281)
Prepayment rate (20% adverse change)	(8,091)	(6,330)
Discount rate (10% adverse change)	(3,450)	(3,716)
Discount rate (20% adverse change)	(6,654)	(7,159)
Cost of servicing (10% adverse change)	(1,648)	(1,683)
Cost of servicing (20% adverse change)	(3,297)	(3,365)
Fannie Mae | Residential MSRs
Servicing rights
Unpaid Principal Amount	3,388,630	2,848,435
Fair Value	37,309	34,562
Ginnie Mae | Residential MSRs
Servicing rights
Unpaid Principal Amount	2,504,993	2,350,301
Fair Value	29,869	29,586
Freddie Mac
Servicing rights
Unpaid Principal Amount	1,167,476	964,377
Possible impact of adverse changes to key assumptions
Prepayment rate (10% adverse change)	(285)	(63)
Prepayment rate (20% adverse change)	(558)	(124)
Discount rate (10% adverse change)	(381)	(490)
Discount rate (20% adverse change)	(746)	(791)
Freddie Mac | Residential MSRs
Servicing rights
Unpaid Principal Amount	2,270,981	2,267,943
Fair Value	$ 23,996	$ 28,917
Minimum | Residential MSRs
Servicing rights, valuation assumptions
Forward prepayment assumptions	7.10%	6.10%
Discount rate	9.00%	9.00%
Servicing expense	$ 70	$ 70
Minimum | Freddie Mac
Servicing rights, valuation assumptions
Forward prepayment assumptions	0.50%	0.00%
Discount rate	6.00%	12.00%
Servicing expense (as a percent)	0.20%	0.20%
Maximum | Residential MSRs
Servicing rights, valuation assumptions
Forward prepayment assumptions	18.70%	13.90%
Discount rate	11.00%	11.10%
Servicing expense	$ 85	$ 85
Maximum | Freddie Mac
Servicing rights, valuation assumptions
Forward prepayment assumptions	15.90%	35.00%
Discount rate	6.00%	12.00%
Servicing expense (as a percent)	0.30%	0.20%
Weighted Average | Residential MSRs
Servicing rights, valuation assumptions
Forward prepayment assumptions	10.10%	8.40%
Discount rate	9.60%	9.70%
Servicing expense	$ 75	$ 75
Weighted Average | Freddie Mac
Servicing rights, valuation assumptions
Forward prepayment assumptions	6.60%	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	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Residential mortgage banking activities
Realized and unrealized gains and losses of residential mortgage loans held for sale, at fair value	$ 54,640	$ 36,240	$ 63,024
Creation of new mortgage servicing rights, net of payoffs	16,676	15,075	14,919
Loan origination fee income on residential mortgage loans	10,702	9,371	8,193
Unrealized gains (loss) on IRLCs and other derivatives	1,521	(834)	(2,699)
Residential mortgage banking activities	83,539	59,852	83,437
Variable expenses on residential mortgage banking activities	$ (51,760)	$ (22,228)	$ (41,737)

Secured Borrowings (Details)

Secured Borrowings (Details) $ in Thousands, € in Millions	12 Months Ended
	Dec. 31, 2019EUR (€)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Secured borrowings and promissory note
Current facility size		$ 2,548,048
Pledged Assets Carrying Value		1,668,460
Carrying Value, Secured borrowings		1,189,392	$ 834,547
Secured borrowings
Secured borrowings and promissory note
Pledged Assets Carrying Value		1,668,460	1,112,522
Borrowings under credit facilities
Secured borrowings and promissory note
Current facility size		1,055,399
Pledged Assets Carrying Value		561,257	279,012
Carrying Value, Secured borrowings		$ 380,203	$ 199,315
Weighted average interest rate of borrowings (as a percent)	4.00%	4.00%	4.60%
Borrowings under repurchase agreements
Secured borrowings and promissory note
Current facility size		$ 1,492,649
Pledged Assets Carrying Value		1,107,203	$ 833,510
Carrying Value, Secured borrowings		$ 809,189	$ 635,232
Weighted average interest rate of borrowings (as a percent)	4.20%	4.20%	4.00%
Purchased future receivables | Borrowings under credit facilities
Secured borrowings and promissory note
Pledged Assets Carrying Value		$ 43,265
Mortgage backed securities | Borrowings under repurchase agreements
Secured borrowings and promissory note
Pledged Assets Carrying Value		113,436	$ 112,552
JPMorgan | Acquired SBA Loans | Borrowings under credit facilities
Secured borrowings and promissory note
Current facility size		250,000
Pledged Assets Carrying Value		207,030
Carrying Value, Secured borrowings		88,972	68,417
JPMorgan | Acquired SBA Loans | Borrowings under credit facilities | One Month LIBOR | Minimum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.00%
JPMorgan | Acquired SBA Loans | Borrowings under credit facilities | One Month LIBOR | Maximum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.50%
JPMorgan | Transitional loans | Borrowings under repurchase agreements
Secured borrowings and promissory note
Current facility size		275,000
Pledged Assets Carrying Value		344,656
Carrying Value, Secured borrowings		250,466	96,343
JPMorgan | Transitional loans | Borrowings under repurchase agreements | One Month LIBOR | Minimum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.25%
JPMorgan | Transitional loans | Borrowings under repurchase agreements | One Month LIBOR | Maximum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	4.00%
JPMorgan | Mortgage backed securities | Borrowings under repurchase agreements
Secured borrowings and promissory note
Current facility size		93,715
Pledged Assets Carrying Value		129,268
Carrying Value, Secured borrowings		93,715	24,881
JPMorgan | Mortgage backed securities | Borrowings under repurchase agreements | Minimum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	3.15%
JPMorgan | Mortgage backed securities | Borrowings under repurchase agreements | Maximum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	4.52%
Keybank | Freddie Mac Loans | Borrowings under credit facilities
Secured borrowings and promissory note
Current facility size		125,000
Pledged Assets Carrying Value		21,775
Carrying Value, Secured borrowings		21,513	22,973
Keybank | Freddie Mac Loans | Borrowings under credit facilities | One Month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	1.50%
East West Bank | SBA loans | Borrowings under credit facilities
Secured borrowings and promissory note
Current facility size		50,000
Pledged Assets Carrying Value		16,992
Carrying Value, Secured borrowings		13,294	27,443
East West Bank | SBA loans | Borrowings under credit facilities | Prime rate | Minimum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	(0.821%)
East West Bank | SBA loans | Borrowings under credit facilities | Prime rate | Maximum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	0.29%
East West Bank | Residential MSRs | Borrowings under credit facilities
Secured borrowings and promissory note
Current facility size		50,000
Pledged Assets Carrying Value		61,304
Carrying Value, Secured borrowings		39,900	8,500
East West Bank | Residential MSRs | Borrowings under credit facilities | One Month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.50%
Credit Suisse | Acquired loans (non USD) | Borrowings under credit facilities
Secured borrowings and promissory note
Current facility size	€ 200	224,500
Pledged Assets Carrying Value		52,500
Carrying Value, Secured borrowings		37,646
Credit Suisse | Acquired loans (non USD) | Borrowings under credit facilities | Euribor Rate
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.50%
Credit Suisse | Purchased future receivables | Borrowings under credit facilities
Secured borrowings and promissory note
Current facility size		50,000
Pledged Assets Carrying Value		43,265
Carrying Value, Secured borrowings		$ 34,900
Credit Suisse | Purchased future receivables | Borrowings under credit facilities | One Month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	4.50%
FCB | Acquired loans | Borrowings under credit facilities
Secured borrowings and promissory note
Pricing, stated rate (as a percent)	2.75%	2.75%
Current facility size		$ 1,399
Pledged Assets Carrying Value		1,778
Carrying Value, Secured borrowings		1,354	2,974
Comerica Bank | Residential loans | Borrowings under credit facilities
Secured borrowings and promissory note
Current facility size		100,000
Pledged Assets Carrying Value		60,303
Carrying Value, Secured borrowings		56,822	40,231
Comerica Bank | Residential loans | Borrowings under credit facilities | One Month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	1.75%
TBK Bank | Residential loans | Borrowings under credit facilities
Secured borrowings and promissory note
Current facility size		100,000
Pledged Assets Carrying Value		53,577
Carrying Value, Secured borrowings		52,151
Origin Bank | Residential loans | Borrowings under credit facilities
Secured borrowings and promissory note
Current facility size		50,000
Pledged Assets Carrying Value		16,275
Carrying Value, Secured borrowings		15,343	12,870
Associated Bank | Residential loans | Borrowings under credit facilities
Secured borrowings and promissory note
Current facility size		40,000
Pledged Assets Carrying Value		6,508
Carrying Value, Secured borrowings		$ 5,823	15,907
Associated Bank | Residential loans | Borrowings under credit facilities | One Month LIBOR
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	1.50%
Rabobank | Real estate | Borrowings under credit facilities
Secured borrowings and promissory note
Pricing, stated rate (as a percent)	4.22%	4.22%
Current facility size		$ 14,500
Pledged Assets Carrying Value		19,950
Carrying Value, Secured borrowings		12,485
Citibank | Fixed rate, Transitional, Acquired loans | Borrowings under repurchase agreements
Secured borrowings and promissory note
Current facility size		500,000
Pledged Assets Carrying Value		194,474
Carrying Value, Secured borrowings		124,718	194,117
Citibank | Fixed rate, Transitional, Acquired loans | Borrowings under repurchase agreements | One Month LIBOR | Minimum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	1.875%
Citibank | Fixed rate, Transitional, Acquired loans | Borrowings under repurchase agreements | One Month LIBOR | Maximum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.125%
Citibank | Mortgage backed securities | Borrowings under repurchase agreements
Secured borrowings and promissory note
Current facility size		56,189
Pledged Assets Carrying Value		77,355
Carrying Value, Secured borrowings		56,189
Citibank | Mortgage backed securities | Borrowings under repurchase agreements | Minimum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	3.10%
Citibank | Mortgage backed securities | Borrowings under repurchase agreements | Maximum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	4.14%
Deutsche Bank | Fixed rate, Transitional loans | Borrowings under repurchase agreements
Secured borrowings and promissory note
Current facility size		425,000
Pledged Assets Carrying Value		182,757
Carrying Value, Secured borrowings		141,356	239,972
Deutsche Bank | Fixed rate, Transitional loans | Borrowings under repurchase agreements | Three Month LIBOR | Minimum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.00%
Deutsche Bank | Fixed rate, Transitional loans | Borrowings under repurchase agreements | Three Month LIBOR | Maximum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.40%
Deutsche Bank | Mortgage backed securities | Borrowings under repurchase agreements
Secured borrowings and promissory note
Current facility size		44,730
Pledged Assets Carrying Value		60,120
Carrying Value, Secured borrowings		44,730	17,425
Deutsche Bank | Mortgage backed securities | Borrowings under repurchase agreements | Minimum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	3.42%
Deutsche Bank | Mortgage backed securities | Borrowings under repurchase agreements | Maximum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	3.93%
Bank of America | Mortgage backed securities | Borrowings under repurchase agreements
Secured borrowings and promissory note
Current facility size		38,954
Pledged Assets Carrying Value		44,412
Carrying Value, Secured borrowings		38,954
Bank of America | Mortgage backed securities | Borrowings under repurchase agreements | Minimum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.44%
Bank of America | Mortgage backed securities | Borrowings under repurchase agreements | Maximum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	2.74%
RBC | Mortgage backed securities | Borrowings under repurchase agreements
Secured borrowings and promissory note
Current facility size		59,061
Pledged Assets Carrying Value		74,161
Carrying Value, Secured borrowings		$ 59,061	$ 62,494
RBC | Mortgage backed securities | Borrowings under repurchase agreements | Minimum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	3.39%
RBC | Mortgage backed securities | Borrowings under repurchase agreements | Maximum
Secured borrowings and promissory note
Pricing, spread on variable (as a percent)	3.71%

Secured Borrowings - Collateral

Secured Borrowings - Collateral Pledged (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Collateral pledged
Pledged Assets Carrying Value	$ 1,668,460
Secured borrowings
Collateral pledged
Pledged Assets Carrying Value	1,668,460	$ 1,112,522
Borrowings under credit facilities
Collateral pledged
Pledged Assets Carrying Value	561,257	279,012
Borrowings under repurchase agreements
Collateral pledged
Pledged Assets Carrying Value	1,107,203	833,510
Loans, net | Borrowings under credit facilities
Collateral pledged
Pledged Assets Carrying Value	436,738	215,533
Loans, net | Borrowings under repurchase agreements
Collateral pledged
Pledged Assets Carrying Value	721,887	685,274
Mortgage servicing rights | Borrowings under credit facilities
Collateral pledged
Pledged Assets Carrying Value	61,304	63,479
Purchased future receivables | Borrowings under credit facilities
Collateral pledged
Pledged Assets Carrying Value	43,265
Real estate, held for sale | Borrowings under credit facilities
Collateral pledged
Pledged Assets Carrying Value	19,950
Mortgage backed securities | Borrowings under repurchase agreements
Collateral pledged
Pledged Assets Carrying Value	113,436	112,552
Retained interest in assets of consolidated VIEs | Borrowings under repurchase agreements
Collateral pledged
Pledged Assets Carrying Value	$ 271,880	$ 35,684

Senior secured notes, convert_3

Senior secured notes, convertible notes, and corporate debt, net (Details)	Jul. 22, 2019USD ($)	Apr. 29, 2018	Apr. 27, 2018USD ($)	Aug. 09, 2017USD ($)$ / shares	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 02, 2019USD ($)	Jan. 30, 2018USD ($)
Senior secured notes, Convertible notes, and Corporate debt
Unamortized deferred financing costs					$ (2,046,000)	$ (2,564,000)
Total Senior secured notes, net					179,289,000	178,870,000
Total Corporate debt, net					149,986,000	48,457,000
Total Convertible notes, net					111,040,000	109,979,000
Total carrying amount of debt components					440,315,000
Total carrying amount of conversion option of equity components recorded in additional paid-in capital					1,446,000
Proceeds from Issuance of Secured Debt					104,687,000	$ 91,328,000	$ 256,917,000
Contractual maturities of the Senior Secured Notes, Convertible Notes, and Corporate debt
2021					49,143,000
2022					179,289,000
2023					111,040,000
Thereafter					100,843,000
Long-term Debt, Total					440,315,000
On or after July 30, 2022 and before July 30, 2025
Senior secured notes, Convertible notes, and Corporate debt
Principal amount of the notes to be redeemed (as a percent)	101.00%
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					$ 1,667,000
Unamortized deferred financing costs					(2,378,000)
Total Senior secured notes, net					179,289,000
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					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					$ (1,446,000)
Unamortized deferred financing costs					(2,514,000)
Total Convertible notes, net					$ 111,040,000
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
Unamortized premium					$ 433,000
Unamortized deferred financing costs					(4,697,000)
Total Corporate debt, net					149,986,000
6.50% Senior Notes due 2021
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%
6.50% Senior Notes due 2021 | 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%	101.00%
6.50% Senior Notes due 2021 | 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%
6.20% Senior Notes due 2026
Senior secured notes, Convertible notes, and Corporate debt
Debt instrument, face value	$ 57,500,000				$ 104,250,000			$ 45,000,000
Interest rate (as a percent)	6.20%				6.20%
Proceeds from Issuance of Secured Debt	$ 55,300,000
6.20% Senior Notes due 2026 | On or after July 30, 2022 and before July 30, 2025
Senior secured notes, Convertible notes, and Corporate debt
Principal amount of the notes to be redeemed (as a percent)	101.00%
6.20% Senior Notes due 2026 | On or after July 30, 2025
Senior secured notes, Convertible notes, and Corporate debt
Principal amount of the notes to be redeemed (as a percent)	100.00%
6.20% Senior Notes due 2026 | Over-allotment option
Senior secured notes, Convertible notes, and Corporate debt
Proceeds from Issuance of Secured Debt	$ 7,500,000
ReadyCap Holdings LLC | Senior Secured Notes
Senior secured notes, Convertible notes, and Corporate debt
Debt instrument, face value							$ 140,000,000		$ 40,000,000
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	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Ending balance	$ 485,461	$ 229,678
Guaranteed loan financing
Ending balance	$ 485,461	$ 229,678
Guaranteed loan financing | Weighted Average
Interest Rates	5.45%	4.46%
Guaranteed loan financing | Minimum
Interest Rates	1.70%	1.70%
Guaranteed loan financing | Maximum
Interest Rates	7.50%	8.00%

Guaranteed Loan Financing - Mat

Guaranteed Loan Financing - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Contractual maturities of total guaranteed loan financing outstanding
2020	$ 537
2021	1,647
2022	2,534
2023	3,697
2024	4,930
Thereafter	472,116
Total	485,461
Guaranteed loan financing
Contractual maturities of total guaranteed loan financing outstanding
Loans held-for-investment pledged as security against guaranteed loan financing	$ 487,200	$ 232,400

Variable interest entities an_3

Variable interest entities and securitization activities - Securitized Debt Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Variable interest entities
Current Principal Balance	$ 1,735,493	$ 1,470,532
Consolidated VIEs
Variable interest entities
Current Principal Balance	1,845,886	926,761
Carrying value	$ 1,807,883	$ 905,367
Weighted Average Rate	3.70%	4.00%
Waterfall Victoria Mortgage Trust 2011-SBC2
Variable interest entities
Current Principal Balance	$ 6,399	$ 12,226
Carrying value	$ 6,399	$ 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		3.40%
ReadyCap Lending Small Business Trust 2019-2
Variable interest entities
Current Principal Balance	$ 131,032
Carrying value	$ 129,007
Weighted Average Rate	4.30%
Sutherland Commercial Mortgage Trust 2017-SBC6
Variable interest entities
Current Principal Balance	$ 42,309	$ 69,764
Carrying value	$ 41,486	$ 68,574
Weighted Average Rate	3.40%	3.30%
Sutherland Commercial Mortgage Trust 2018-SBC7
Variable interest entities
Current Principal Balance	$ 138,235	$ 205,451
Carrying value	$ 136,212	$ 202,491
Weighted Average Rate	4.70%	4.70%
Sutherland Commercial Mortgage Trust 2019-SBC8
Variable interest entities
Current Principal Balance	$ 219,617
Carrying value	$ 216,981
Weighted Average Rate	2.90%
ReadyCap Commercial Mortgage Trust 2014-1
Variable interest entities
Current Principal Balance	$ 18,626	$ 36,108
Carrying value	$ 18,632	$ 36,129
Weighted Average Rate	5.60%	4.50%
ReadyCap Commercial Mortgage Trust 2015-2
Variable interest entities
Current Principal Balance	$ 64,239	$ 110,497
Carrying value	$ 61,443	$ 106,755
Weighted Average Rate	4.50%	4.20%
ReadyCap Commercial Mortgage Trust 2016-3
Variable interest entities
Current Principal Balance	$ 32,269	$ 63,945
Carrying value	$ 30,777	$ 62,053
Weighted Average Rate	4.70%	3.70%
ReadyCap Commercial Mortgage Trust 2018-4
Variable interest entities
Current Principal Balance	$ 121,179	$ 144,701
Carrying value	$ 117,428	$ 140,314
Weighted Average Rate	3.90%	3.90%
ReadyCap Commercial Mortgage Trust 2019-5
Variable interest entities
Current Principal Balance	$ 309,296
Carrying value	$ 299,273
Weighted Average Rate	4.10%
ReadyCap Commercial Mortgage Trust 2019-6
Variable interest entities
Current Principal Balance	$ 379,400
Carrying value	$ 371,939
Weighted Average Rate	3.20%
Ready Capital Mortgage Financing 2017-FL1
Variable interest entities
Current Principal Balance		$ 63,615
Carrying value		$ 61,902
Weighted Average Rate		3.70%
Ready Capital Mortgage Financing 2018-FL2
Variable interest entities
Current Principal Balance	$ 115,381	$ 217,057
Carrying value	$ 114,057	$ 213,743
Weighted Average Rate	3.80%	3.40%
Ready Capital Mortgage Financing 2019-FL3
Variable interest entities
Current Principal Balance	$ 267,904
Carrying value	$ 264,249
Weighted Average Rate	3.50%

Variable interest entities an_4

Variable interest entities and securitization activities - Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 67,928	$ 54,406	$ 63,425
Restricted cash	51,728	28,921	$ 11,666
Loans, held for sale, at fair value	188,077	115,258
Accrued interest	10,583	7,253
Real estate, held for sale	58,573	7,787
Total Assets	4,977,018	3,036,843
Liabilities
Secured borrowings	1,189,392	834,547
Total Liabilities	4,132,234	2,472,768
Consolidated VIEs
Assets
Total Assets	2,378,486	1,251,057
Liabilities
Secured borrowings	1,815,154	905,367
Consolidated VIEs
Assets
Loans, net	2,326,199	1,220,974
Reportable Legal Entities | Consolidated VIEs
Assets
Cash and cash equivalents	23
Restricted cash	8,301	11,643
Loans, net	2,326,199	1,220,974
Loans, held for sale, at fair value	4,434
Due from servicers	27,964	11,514
Accrued interest	11,565	6,750
Real estate, held for sale		176
Total Assets	2,378,486	1,251,057
Liabilities
Secured borrowings	1,815,154	905,367
Total Liabilities	$ 1,815,154	$ 905,367

Variable interest entities an_5

Variable interest entities and securitization activities - Assets of Unconsolidated VIEs (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Carrying amount
Mortgage backed securities, at fair value	$ 92,466	$ 91,937
Investment in unconsolidated joint ventures	58,850	33,438
Unconsolidated VIEs
Carrying amount
Mortgage backed securities, at fair value	66,108	75,591
Investment in unconsolidated joint ventures	58,850	33,438
Total assets in unconsolidated VIEs carrying amount	124,958	109,029
Maximum Exposure to Loss
Mortgage backed securities, at fair value	66,108	75,591
Investment in unconsolidated joint venture	58,850	33,438
Total assets in unconsolidated VIEs maximum exposure to loss	$ 124,958	$ 109,029

Interest income and interest _3

Interest income and interest expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest income
Total loans	$ 218,267	$ 159,957	$ 128,739
Total loans, held for sale, at fair value	5,553	5,328	6,223
Mortgage backed securities, at fair value	6,096	4,214	3,343
Total interest income	229,916	169,499	138,305
Interest expense
Secured borrowings	(48,955)	(35,331)	(26,092)
Securitized debt obligations of consolidated VIEs	(69,152)	(36,988)	(23,387)
Guaranteed loan financing	(5,125)	(11,613)	(13,435)
Senior secured note	(13,920)	(13,702)	(8,069)
Convertible note	(8,752)	(8,748)	(3,427)
Corporate debt	(5,922)	(2,706)
Promissory note	(54)	(150)	(236)
Total interest expense	(151,880)	(109,238)	(74,646)
Net interest income before provision for loan losses	78,036	60,261	63,659
Acquired SBA 7(a) loans
Interest income
Total loans	20,687	32,278	37,110
Acquired loans
Interest income
Total loans	61,832	46,154	34,720
Total loans, held for sale, at fair value	217	153	993
Originated Transitional loans
Interest income
Total loans	69,217	48,499	25,323
Originated SBC loans, at fair value
Interest income
Total loans	1,383	3,599	7,769
Originated SBC loans
Interest income
Total loans	51,617	24,948	22,564
Originated SBA 7(a) loans
Interest income
Total loans	11,409	4,428	998
Acquired Transitional loans
Interest income
Total loans	2,047
Originated Residential Agency loans
Interest income
Total loans	75	51	255
Total loans, held for sale, at fair value	4,328	3,747	3,723
Originated Freddie Mac loans
Interest income
Total loans, held for sale, at fair value	$ 1,008	$ 1,428	$ 1,507

Derivative instruments (Details

Derivative instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Notional Amount	$ 717,609	$ 705,935
Asset Derivatives Fair Value	2,814	2,070
Liabilities Derivatives Fair Value	(5,250)	(3,625)
Derivative gain (loss)
Total change in OCI for period	(5,724)
Total income statement impact		(954)
Designated as Hedging
Derivative gain (loss)
Derivatives - effective portion reclassified from AOCI to income	(513)
Total income statement impact	(513)
Derivatives- effective portion recorded in OCI	(6,237)
Total change in OCI for period	(5,724)
Derivatives- effective portion recorded in OCI		(954)
Total income statement impact		(954)
Designated as Hedging | Interest Rate Risk
Derivative gain (loss)
Derivatives - effective portion reclassified from AOCI to income	(513)
Total income statement impact	(513)
Derivatives- effective portion recorded in OCI	(6,237)
Total change in OCI for period	(5,724)
Derivatives- effective portion recorded in OCI		(954)
Total income statement impact		(954)
Credit default swaps
Liabilities Derivatives Fair Value	(110)
Derivative gain (loss)
Net Realized (Loss)		(703)
Unrealized Gain (Loss)	(404)	862
Credit default swaps | Credit Risk
Notional Amount	15,000	15,000
Asset Derivatives Fair Value		295
Liabilities Derivatives Fair Value	(110)
Interest Rate Swap
Liabilities Derivatives Fair Value	(4,890)	(3,625)
Derivative gain (loss)
Net Realized (Loss)	(6,221)	4,272
Unrealized Gain (Loss)	(1,747)	(5,323)
Interest Rate Swap | Not Designated as Hedging | Interest Rate Risk
Notional Amount	291,001	411,811
Liabilities Derivatives Fair Value	(3,181)	(2,349)
Interest Rate Swap | Designated as Hedging | Interest Rate Risk
Notional Amount	158,325	134,325
Liabilities Derivatives Fair Value	(1,709)	(1,276)
Residential mortgage banking activities interest rate swaps
Derivative gain (loss)
Unrealized Gain (Loss)	483	(783)
Interest rate lock commitments (IRLCs)
Derivative gain (loss)
Unrealized Gain (Loss)	1,038	(51)
Interest rate lock commitments (IRLCs) | Interest Rate Risk
Notional Amount	238,283	144,799
Asset Derivatives Fair Value	2,814	$ 1,775
FX forwards
Liabilities Derivatives Fair Value	(250)
Derivative gain (loss)
Unrealized Gain (Loss)	(250)
FX forwards | Foreign Exchange Rate Risk
Notional Amount	15,000
Liabilities Derivatives Fair Value	$ (250)

Real estate, held for sale (Det

Real estate, held for sale (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Real estate acquired
Acquired ORM portfolio	$ 52,883
Other REO held for sale	5,690	$ 7,787
Total Real estate, held for sale	58,573	7,787
Retail
Real estate acquired
Acquired ORM portfolio	19,950
Other REO held for sale	660	191
Mixed Use
Real estate acquired
Acquired ORM portfolio	17,478
Other REO held for sale	279	279
Land
Real estate acquired
Acquired ORM portfolio	7,919
Lodging/Residential
Real estate acquired
Acquired ORM portfolio	6,280
Office
Real estate acquired
Acquired ORM portfolio	1,256
Other REO held for sale	4,465	6,719
SBA
Real estate acquired
Other REO held for sale	$ 286	23
Single family
Real estate acquired
Other REO held for sale		368
Multi-family
Real estate acquired
Other REO held for sale		$ 207

Agreements and transactions w_3

Agreements and transactions with related parties (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)loan	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Related-party transactions
Amount unpaid		$ 2,697	$ 2,580
Purchase of loans, held-for-investment		739,002	369,418	$ 147,327
Investment in unconsolidated joint ventures		$ 58,850	33,438
Management agreement
Related-party transactions
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		0.667%
Manager | Management fee
Related-party transactions
Fees		$ 9,600	8,200
Amount unpaid		2,600	2,100
Manager | Incentive distribution
Related-party transactions
Fees		100	1,100
Amount unpaid		100	500
Manager | Expense reimbursement
Related-party transactions
Reimbursable expenses		7,000	4,900
Amount unpaid		$ 4,200	$ 3,100
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	Dec. 31, 2019	Dec. 31, 2018
Other assets:
Deferred tax asset	$ 31,803	$ 18,084
Tax receivable	4,019
Deferred loan exit fees	13,039	8,668
Accrued interest	10,583	7,253
Due from servicers	10,127	7,284
Right-of-use assets	4,531
Goodwill	11,206
Intangible assets	8,309	2,915
Deferred financing costs	2,046	2,564
Other assets	11,262	17,567
Total other assets	106,925	64,335
Accounts payable and other accrued liabilities:
Deferred tax liability	18,757	19,972
Accrued salaries, wages and commissions	21,146	19,925
Accrued interest payable	17,305	14,244
Servicing principal and interest payable	14,145	10,582
Repair and denial reserve	5,179	5,524
Payable to related parties	2,697	2,580
Accrued professional fees	1,809	1,618
Other liabilities	16,369	274
Total accounts payable and other accrued liabilities	97,407	74,719
Loan indemnification reserve
Loan indemnification reserve	$ 2,100	$ 1,700

Other Asset and Other Liabiliti

Other Asset and Other Liabilities - Intangible assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Finite-lived intangible assets	$ 7,309
Total Intangible Assets	8,309	$ 2,915
Amortization expense	500	400
Total Accumulated Amortization	1,274
Future amortization of lease intangibles
2020	1,323
2021	1,295
2022	1,268
2023	1,242
2024	1,210
Thereafter	971
Net amount	7,309
SBA license
Indefinite-lived intangible assets	1,000	1,000
Internally developed software | Knight Capital
Finite-lived intangible assets	$ 3,694
Estimated Useful Life	6 years
Total Accumulated Amortization	$ 106
Future amortization of lease intangibles
Net amount	3,694
Broker network | Knight Capital
Finite-lived intangible assets	$ 1,156
Estimated Useful Life	4 years 6 months
Total Accumulated Amortization	$ 44
Future amortization of lease intangibles
Net amount	1,156
Trade name | Knight Capital
Finite-lived intangible assets	$ 855
Estimated Useful Life	6 years
Total Accumulated Amortization	$ 25
Future amortization of lease intangibles
Net amount	855
Trade name | GMFS
Finite-lived intangible assets	$ 699	852
Estimated Useful Life	15 years
Total Accumulated Amortization	$ 524
Future amortization of lease intangibles
Net amount	699	852
Favorable lease
Finite-lived intangible assets	$ 905	1,063
Estimated Useful Life	12 years
Total Accumulated Amortization	$ 575
Future amortization of lease intangibles
Net amount	$ 905	$ 1,063

Other income and operating ex_3

Other income and operating expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other income
Origination income	$ 5,860	$ 4,590	$ 4,302
Release of repair and denial reserve	345	163	1,013
Other	4,873	833	2,095
Total other income	11,078	5,586	7,410
Other operating expenses
Origination costs	10,168	7,752	6,862
Technology expense	4,834	3,624	3,692
Charge off of real estate	1,317	1,086	756
Rent and property tax expense	4,310	2,524	2,314
Recruiting, training and travel expenses	2,352	2,287	2,389
Marketing expense	2,052	2,433	1,629
Loan acquisition costs	575	1,458	600
Financing costs on purchased future receivables	376
Other	(7,178)	(7,583)	(8,697)
Total other operating expenses	$ 33,162	$ 28,747	$ 26,939

Stockholders Equity - Common St

Stockholders Equity - Common Stock Dividends (Details) - $ / shares	Jan. 31, 2020	Dec. 11, 2019	Oct. 31, 2019	Sep. 10, 2019	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	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Dividends
Dividend per Share, declared		$ 0.40		$ 0.40		$ 0.40		$ 0.40		$ 0.40		$ 0.40		$ 0.40		$ 0.37	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.37	$ 1.60	$ 1.57	$ 1.48
Dividend per Share, paid	$ 0.40		$ 0.40		$ 0.40		$ 0.40		$ 0.40		$ 0.40		$ 0.40		$ 0.37

Stockholders Equity - Manager E

Stockholders Equity - Manager Equity Incentive (Details)	12 Months Ended
	Dec. 31, 2019
Stockholders’ Equity
Percentage of shares of common stock issued and outstanding on a fully diluted basis	5.00%

Stockholders Equity - RSU activ

Stockholders Equity - RSU activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Weighted-average grant date fair value (per share)
Fully vested units that were not yet issued as common stock						23,104
Stock-based compensation					$ 1,500	$ 600
Non-cash compensation expense not yet charged to net income					$ 15,700	$ 1,200
RSAs | Certain employees
Number of shares
Outstanding, Beginning balance	167,399	173,735	177,891	118,904	118,904
Granted (in shares)	865,854		21,356	111,097
Vested (in shares)	(23,636)	(6,336)	(19,766)	(52,110)
Forfeited (in shares)			(5,746)
Outstanding, Ending balance	1,009,617	167,399	173,735	177,891	1,009,617	118,904
Grant date fair value
Beginning balance	$ 2,547	$ 2,647	$ 2,712	$ 1,661	$ 1,661
Granted	13,525		310	1,784
Vested	(350)	(100)	(293)	(733)
Forfeited			(82)
Ending balance	$ 15,722	$ 2,547	$ 2,647	$ 2,712	$ 15,722	$ 1,661
Weighted-average grant date fair value (per share)
Beginning balance	$ 15.21	$ 15.24	$ 15.25	$ 13.97	$ 13.97
Granted (in per share)	15.62		14.51	16.06
Vested (in per share)	14.81	15.79	14.84	14.07
Forfeited (in per share)			14.21
Ending balance	$ 15.57	$ 15.21	$ 15.24	$ 15.25	$ 15.57	$ 13.97

Earnings per Share of Common _3

Earnings per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Continuing Operations
Net income									$ 75,056	$ 61,457	$ 45,814
Less: Income attributable to non-controlling interest									2,088	2,199	2,524
Less: Income attributable to participating shares									653	217	62
Basic earnings									72,315	59,041	43,228
Diluted Earnings
Net income									75,056	61,457	45,814
Less: Income attributable to non-controlling interest									2,088	2,199	2,524
Less: Income attributable to participating shares									653	217	62
Diluted earnings									$ 72,315	$ 59,041	$ 43,228
Basic — Average shares outstanding									42,011,750	32,085,975	31,350,102
Effect of dilutive securities — Unvested participating shares									35,898	16,209	1,509
Diluted — Average shares outstanding									42,047,648	32,102,184	31,351,611
Earnings Per Share Attributable to RC Common Stockholders:
Basic	$ 0.43	$ 0.27	$ 0.25	$ 0.90	$ 0.30	$ 0.53	$ 0.48	$ 0.56	$ 1.72	$ 1.84	$ 1.38
Diluted	$ 0.43	$ 0.27	$ 0.25	$ 0.90	$ 0.30	$ 0.53	$ 0.48	$ 0.56	$ 1.72	$ 1.84	$ 1.38
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	12 Months Ended
	Dec. 31, 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) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Effect of offsetting of the Company’s recognized assets
Gross Amounts of Recognized Assets	$ 2,814	$ 295
Amounts presented in the Consolidated Balance Sheets	2,814	295
Cash Collateral Received	2,814	295
Interest Rate Swap
Effect of offsetting of the Company’s recognized assets
Gross Amounts of Recognized Assets	2,814
Amounts presented in the Consolidated Balance Sheets	2,814
Cash Collateral Received	$ 2,814
Credit default swaps
Effect of offsetting of the Company’s recognized assets
Gross Amounts of Recognized Assets		295
Amounts 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	Dec. 31, 2019	Dec. 31, 2018
Effect of offsetting recognized liabilities, Derivative
Gross Amounts of Recognized Liabilities	$ 5,250	$ 3,625
Effect of offsetting recognized liabilities, Total
Gross Amounts of Recognized Liabilities, Total	1,194,642	838,172
Liabilities Presented in the Consolidated Balance Sheets, Total	1,194,642	838,172
Financial Instruments, Total	1,189,392	834,547
Cash Collateral Paid, Total	5,250	3,625
Interest Rate Swap
Effect of offsetting recognized liabilities, Derivative
Gross Amounts of Recognized Liabilities	4,890	3,625
Liabilities Presented in the Consolidated Balance Sheets, Derivative	4,890	3,625
Cash Collateral Paid, Derivative	4,890	3,625
Credit default swaps
Effect of offsetting recognized liabilities, Derivative
Gross Amounts of Recognized Liabilities	110
Liabilities Presented in the Consolidated Balance Sheets, Derivative	110
Cash Collateral Paid, Derivative	110
FX forwards
Effect of offsetting recognized liabilities, Derivative
Gross Amounts of Recognized Liabilities	250
Liabilities Presented in the Consolidated Balance Sheets, Derivative	250
Cash Collateral Paid, Derivative	250
Secured borrowings
Effect of offsetting recognized liabilities, Borrowings
Gross Amounts of Recognized Liabilities, Borrowings	1,189,392	834,547
Liabilities Presented in the Consolidated Balance Sheets, Borrowings	1,189,392	834,547
Financial Instruments, Borrowings	$ 1,189,392	$ 834,547

Commitments, Contingencies an_3

Commitments, Contingencies and Indemnifications (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Originated Residential Agency loans
Commitments, contingencies and indemnifications
Commitments to originate residential agency loans	$ 190,806	$ 124,020
Unfunded loan commitments
Commitments, contingencies and indemnifications
Loans, net	128,719	161,746
Loans, held for sale at fair value	$ 6,982	$ 4,895

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
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%
Uncertain tax positions	$ 0	$ 0
Number of taxable years an entity would not be able to qualify as a REIT if qualification lapses	4 years
Statutory federal income tax rate (as a percent)	21.00%	21.00%	35.00%
Income tax benefit related to remeasurement of deferred tax balances			$ 1,000
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%
Federal
REIT requirements and income tax information
Net operating loss carryovers	$ 90,700
State
REIT requirements and income tax information
Net operating loss carryovers	$ 198,000

Income Taxes - Income Tax Provi

Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current:
Federal income tax (benefit)	$ 523	$ 356	$ (1,235)
State and local income tax (benefit)	47	169	(171)
Net current tax provision (benefit)	570	525	(1,406)
Deferred:
Federal income tax (benefit)	(9,739)	1,167	3,779
State and local income tax (benefit)	(1,383)	(306)	613
Valuation allowance			(1,147)
Net deferred tax provision (benefit)	(11,122)	861	3,245
Total income tax provision (benefit)	$ (10,552)	$ 1,386	$ 1,839

Income Taxes - Effective Income

Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of federal income tax determined using statutory federal tax rate to our reported income tax provision
U.S. statutory tax	$ 13,579	$ 13,207
State and local income tax	(1,717)	464
Income attributable to REIT	(19,641)	(11,274)
Income attributable to Non-controlling interests	(462)	(400)
Nondeductible	(2,692)	(194)
Change in tax rate	381	(554)
Change in valuation allowance			$ (1,147)
Return to Provision		(11)
Other		148
Total income tax provision (benefit)	$ (10,552)	$ 1,386	$ 1,839
Reconciliation of effective income tax rate determined using statutory federal tax rate to our reported income tax provision
U.S. statutory tax, Percent	21.00%	21.00%	35.00%
State and local income tax (benefit), Percent	(2.60%)	0.70%
Income attributable to REIT, Percent	(30.40%)	(17.90%)
Income attributable to Non-controlling interests, Percent	(0.70%)	(0.60%)
Nondeductible, Percent	(4.20%)	(0.30%)
Change in tax rate, Percent	0.60%	(0.90%)
Other, Percent		0.20%
Effective income tax (benefit), Percent, Total	(16.30%)	2.20%

Income Taxes - Schedule Of Defe

Income Taxes - Schedule Of Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Net operating loss carryforwards	$ 23,277	$ 8,408
Unrealized losses	40	1,442
Accruals	2,917	2,815
Depreciation and amortization	1,379	986
Goodwill	3,702	3,927
Compensation	248	279
Other	240	227
Total deferred tax assets	31,803	18,084
Deferred tax liabilities:
Loan / servicing rights balance	17,793	19,210
Derivative instruments	439	133
Other taxable temporary difference	525	629
Total deferred tax liabilities	18,757	19,972
Net deferred tax assets	$ 13,046
Net deferred tax liabilities		$ (1,888)

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2019USD ($)segment	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Segment reporting
Number of Reportable Segments | segment									4
Interest income									$ 229,916	$ 169,499	$ 138,305
Interest expense									(151,880)	(109,238)	(74,646)
Net interest income before provision for loan losses									78,036	60,261	63,659
Provision for loan losses									(3,684)	(1,701)	(2,363)
Net interest income after provision for loan losses	$ 22,319	$ 19,640	$ 19,933	$ 12,460	$ 13,833	$ 14,562	$ 15,848	$ 14,317	74,352	58,560	61,296
Non-interest income
Residential mortgage banking activities									83,539	59,852	83,437
Net realized gain on financial instruments									28,958	38,409	19,329
Net unrealized gain (loss) on financial instruments									(18,790)	4,853	7,000
Servicing income									30,665	27,075	22,994
Income on purchased future receivables, net of allowance for doubtful accounts									2,362
Income on unconsolidated joint ventures									6,088	12,148	1,048
Other income									11,078	5,586	7,410
Gain on bargain purchase									30,728
Total non-interest income	45,422	39,984	32,956	56,266	22,125	42,761	40,288	42,747	174,628	147,923	141,218
Non-interest expense
Employee compensation and benefits									(51,237)	(56,602)	(55,039)
Allocated employee compensation and benefits from related party									(5,473)	(4,200)	(3,843)
Variable expenses on residential mortgage banking activities									(51,760)	(22,228)	(41,737)
Professional fees									(7,434)	(6,999)	(8,921)
Management fees – related party									(9,578)	(8,176)	(8,059)
Incentive fees – related party									(106)	(1,143)
Loan servicing expense									(17,976)	(15,545)	(10,323)
Merger related expenses									(7,750)
Other operating expenses									(33,162)	(28,747)	(26,939)
Total non-interest expense	(48,755)	$ (49,842)	$ (44,600)	$ (41,279)	(29,209)	$ (38,859)	$ (39,587)	$ (35,983)	(184,476)	(143,640)	(154,861)
Net income (loss) before provision for income taxes									64,504	62,843	47,653
Total Assets	4,977,018				3,036,843				4,977,018	3,036,843	2,523,503
Corporate- Other
Segment reporting
Interest expense											(3,541)
Net interest income before provision for loan losses											(3,541)
Net interest income after provision for loan losses											(3,541)
Non-interest income
Net realized gain on financial instruments											478
Net unrealized gain (loss) on financial instruments									(253)		(68)
Other income									164	31
Gain on bargain purchase									30,728
Total non-interest income									30,639	31	410
Non-interest expense
Employee compensation and benefits									(3,340)	(923)	(848)
Allocated employee compensation and benefits from related party									(4,926)	(3,780)	(3,459)
Professional fees									(2,947)	(2,977)	(3,231)
Management fees – related party									(9,578)	(8,176)	(8,059)
Incentive fees – related party									(106)	(1,143)
Loan servicing expense									(133)	(32)
Merger related expenses									(7,750)
Other operating expenses									(3,082)	(2,817)	(2,235)
Total non-interest expense									(31,862)	(19,848)	(17,832)
Net income (loss) before provision for income taxes									(1,223)	(19,817)	(20,963)
Total Assets	130,242				70,085				130,242	70,085	23,169
Loan Acquisitions | Operating Segments
Segment reporting
Interest income									65,922	47,243	37,198
Interest expense									(40,502)	(28,946)	(16,741)
Net interest income before provision for loan losses									25,420	18,297	20,457
Provision for loan losses									(808)	(1,727)	(2,026)
Net interest income after provision for loan losses									24,612	16,570	18,431
Non-interest income
Net realized gain on financial instruments									18	5,023	(323)
Net unrealized gain (loss) on financial instruments									(254)	(1,156)	1,628
Servicing income									798	20	197
Income on purchased future receivables, net of allowance for doubtful accounts									2,362
Income on unconsolidated joint ventures									6,088	12,148	1,048
Other income									4,210	368	1,766
Total non-interest income									13,222	16,403	4,316
Non-interest expense
Employee compensation and benefits									(1,855)	(386)	(576)
Allocated employee compensation and benefits from related party									(547)	(420)	(384)
Professional fees									(723)	(1,310)	(1,501)
Loan servicing expense									(4,662)	(3,926)	(2,981)
Other operating expenses									(4,573)	(3,214)	(4,285)
Total non-interest expense									(12,360)	(9,256)	(9,727)
Net income (loss) before provision for income taxes									25,474	23,717	13,020
Total Assets	1,264,226				644,512				1,264,226	644,512	511,427
SBC Originations | Operating Segments
Segment reporting
Interest income									127,495	81,752	59,021
Interest expense									(90,677)	(60,879)	(35,121)
Net interest income before provision for loan losses									36,818	20,873	23,900
Provision for loan losses									(319)	(13)	(195)
Net interest income after provision for loan losses									36,499	20,860	23,705
Non-interest income
Net realized gain on financial instruments									13,750	17,482	9,665
Net unrealized gain (loss) on financial instruments									(107)	142	8,125
Servicing income									1,898	1,396	824
Other income									4,907	4,366	3,983
Total non-interest income									20,448	23,386	22,597
Non-interest expense
Employee compensation and benefits									(6,905)	(8,815)	(8,509)
Professional fees									(1,652)	(1,285)	(1,351)
Loan servicing expense									(5,695)	(3,883)	(2,355)
Other operating expenses									(11,199)	(10,392)	(9,666)
Total non-interest expense									(25,451)	(24,375)	(21,881)
Net income (loss) before provision for income taxes									31,496	19,871	24,421
Total Assets	2,492,156				1,606,210				2,492,156	1,606,210	1,154,509
SBA Originations, Acquisitions, and Servicing | Operating Segments
Segment reporting
Interest income									32,096	36,706	38,108
Interest expense									(14,864)	(16,218)	(16,098)
Net interest income before provision for loan losses									17,232	20,488	22,010
Provision for loan losses									(2,557)	39	(142)
Net interest income after provision for loan losses									14,675	20,527	21,868
Non-interest income
Net realized gain on financial instruments									15,190	15,904	9,509
Net unrealized gain (loss) on financial instruments									393	173	1,315
Servicing income									5,330	5,390	4,624
Other income									1,548	621	1,513
Total non-interest income									22,461	22,088	16,961
Non-interest expense
Employee compensation and benefits									(16,255)	(13,077)	(10,505)
Professional fees									(1,011)	(820)	(1,973)
Loan servicing expense									(261)	(260)	1,454
Other operating expenses									(6,591)	(4,070)	(4,076)
Total non-interest expense									(24,118)	(18,227)	(15,100)
Net income (loss) before provision for income taxes									13,018	24,388	23,729
Total Assets	760,031				455,513				760,031	455,513	510,006
Residential Mortgage Banking | Operating Segments
Segment reporting
Interest income									4,403	3,798	3,978
Interest expense									(5,837)	(3,195)	(3,145)
Net interest income before provision for loan losses									(1,434)	603	833
Net interest income after provision for loan losses									(1,434)	603	833
Non-interest income
Residential mortgage banking activities									83,539	59,852	83,437
Net unrealized gain (loss) on financial instruments									(18,569)	5,694	(4,000)
Servicing income									22,639	20,269	17,349
Other income									249	200	148
Total non-interest income									87,858	86,015	96,934
Non-interest expense
Employee compensation and benefits									(22,882)	(33,401)	(34,601)
Variable expenses on residential mortgage banking activities									(51,760)	(22,228)	(41,737)
Professional fees									(1,101)	(607)	(865)
Loan servicing expense									(7,225)	(7,444)	(6,441)
Other operating expenses									(7,717)	(8,254)	(6,677)
Total non-interest expense									(90,685)	(71,934)	(90,321)
Net income (loss) before provision for income taxes									(4,261)	14,684	7,446
Total Assets	$ 330,363				$ 260,523				$ 330,363	$ 260,523	$ 324,392

Quarterly Financial Data (Una_3

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 11, 2019	Sep. 10, 2019	Jun. 11, 2019	Mar. 12, 2019	Dec. 12, 2018	Sep. 11, 2018	Jun. 12, 2018	Mar. 14, 2018	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Data (Unaudited)
Net interest income after provision for loan losses									$ 22,319	$ 19,640	$ 19,933	$ 12,460	$ 13,833	$ 14,562	$ 15,848	$ 14,317	$ 74,352	$ 58,560	$ 61,296
Non-interest income									45,422	39,984	32,956	56,266	22,125	42,761	40,288	42,747	174,628	147,923	141,218
Non-interest expense									(48,755)	(49,842)	(44,600)	(41,279)	(29,209)	(38,859)	(39,587)	(35,983)	(184,476)	(143,640)	(154,861)
Net income									20,934	12,427	11,245	30,450	9,486	17,569	15,884	18,518	75,056	61,457	45,814
Net income attributable to Ready Capital Corporation									$ 20,428	$ 12,104	$ 10,969	$ 29,467	$ 9,177	$ 16,931	$ 15,296	$ 17,854	$ 72,968	$ 59,258	$ 43,290
Earnings per common share - basic									$ 0.43	$ 0.27	$ 0.25	$ 0.90	$ 0.30	$ 0.53	$ 0.48	$ 0.56	$ 1.72	$ 1.84	$ 1.38
Earnings per common share - diluted									0.43	0.27	0.25	0.90	0.30	0.53	0.48	0.56	1.72	1.84	1.38
Dividends declared per share of common stock	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.37	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.40	$ 0.37	$ 1.60	$ 1.57	$ 1.48

Supplemental Financial Data (De

Supplemental Financial Data (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Supplemental Financial Data
Realized gains	$ 28,958	$ 38,409	$ 19,329
Unrealized gains	(18,790)	4,853	7,000
Income before provision for income taxes	64,504	62,843	47,653
Income on unconsolidated joint ventures	$ 6,088	12,148	$ 1,048
WFLLA LLC
Supplemental Financial Data
Ownership percentage	50.00%
Girod HoldCo, LLC
Supplemental Financial Data
Interest income	$ 6,922	21,182
Realized gains	5,218	27,310
Unrealized gains	15,286	8,191
Servicing expense and other	(5,996)	(7,972)
Income before provision for income taxes	21,430	48,711
WFLLA LLC
Supplemental Financial Data
Interest income	3,454	10,570
Realized gains	2,604	13,628
Unrealized gains	7,628	4,087
Servicing expense and other	(2,999)	(3,989)
Income before provision for income taxes	10,687	24,296
Income on unconsolidated joint ventures	$ 5,344	$ 12,148
WFLLA LLC | Girod HoldCo, LLC
Supplemental Financial Data
Ownership percentage	49.90%
Other Unconsolidated Joint Ventures
Supplemental Financial Data
Income on unconsolidated joint ventures	$ 744

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Thousands	Feb. 29, 2020	Jan. 31, 2020	Dec. 31, 2019
Subsequent Event
Maximum borrowing capacity			$ 2,548,048
Borrowings under repurchase agreements
Subsequent Event
Maximum borrowing capacity			1,492,649
Borrowings under credit facilities
Subsequent Event
Maximum borrowing capacity			$ 1,055,399
Subsequent event | Repurchase Agreement Extending Through June 2020
Subsequent Event
Maximum borrowing capacity		$ 425,000
Subsequent event | Repurchase Agreement Extending Through December 2020
Subsequent Event
Maximum borrowing capacity	$ 400,000
Subsequent event | Line of Credit Extending Through February 2021
Subsequent Event
Maximum borrowing capacity	$ 100,000

Schedule IV _ Mortgage Loans _2

Schedule IV – Mortgage Loans on Real Estate - Product Type (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Schedule IV – Mortgage Loans on Real Estate
Number of Loans that exceed one percent of total carrying amount | loan	0
Percentage of total carrying amount of all mortgages	3.00%
Loan Count | loan	5,343
UPB	$ 4,285,666
UPB of loans subject to DQ principal or interest	137,492
General allowance for loan losses	(2,424)	$ (1,937)
Total Loans	$ 4,246,694	$ 2,529,624	$ 2,070,122	$ 1,848,477
Acquired loans
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	2,214
Carrying Value	$ 1,026,199
UPB	1,036,083
UPB of loans subject to DQ principal or interest	$ 56,014
Acquired loans | 0 - 500k
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	1,759
Carrying Value	$ 349,845
UPB	356,240
UPB of loans subject to DQ principal or interest	$ 30,410
Acquired loans | 0 - 500k | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	0.00%
Acquired loans | 0 - 500k | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	11.50%
Acquired loans | 500k - 1mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	270
Carrying Value	$ 181,026
UPB	183,525
UPB of loans subject to DQ principal or interest	$ 11,800
Acquired loans | 500k - 1mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	3.38%
Acquired loans | 500k - 1mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	10.25%
Acquired loans | 1mm - 1.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	83
Carrying Value	$ 99,088
UPB	100,761
UPB of loans subject to DQ principal or interest	$ 2,411
Acquired loans | 1mm - 1.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	1.00%
Acquired loans | 1mm - 1.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	9.50%
Acquired loans | 1.5mm - 2mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	29
Carrying Value	$ 49,034
UPB	49,739
UPB of loans subject to DQ principal or interest	$ 1,501
Acquired loans | 1.5mm - 2mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	3.50%
Acquired loans | 1.5mm - 2mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.64%
Acquired loans | 2mm - 2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	17
Carrying Value	$ 38,045
UPB	$ 37,838
Acquired loans | 2mm - 2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	5.06%
Acquired loans | 2mm - 2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.00%
Acquired loans | >2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	56
Carrying Value	$ 309,161
UPB	307,981
UPB of loans subject to DQ principal or interest	$ 9,892
Acquired loans | >2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	3.31%
Acquired loans | >2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	11.00%
Acquired SBA 7(a) loans
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	1,257
Carrying Value	$ 306,860
UPB	336,393
UPB of loans subject to DQ principal or interest	$ 17,633
Acquired SBA 7(a) loans | 0 - 500k
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	1,056
Carrying Value	$ 119,416
UPB	138,422
UPB of loans subject to DQ principal or interest	$ 13,657
Acquired SBA 7(a) loans | 0 - 500k | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	0.00%
Acquired SBA 7(a) loans | 0 - 500k | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	8.75%
Acquired SBA 7(a) loans | 500k - 1mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	144
Carrying Value	$ 93,844
UPB	100,883
UPB of loans subject to DQ principal or interest	$ 2,532
Acquired SBA 7(a) loans | 500k - 1mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	4.75%
Acquired SBA 7(a) loans | 500k - 1mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.75%
Acquired SBA 7(a) loans | 1mm - 1.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	40
Carrying Value	$ 46,010
UPB	48,696
UPB of loans subject to DQ principal or interest	$ 1,444
Acquired SBA 7(a) loans | 1mm - 1.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	5.50%
Acquired SBA 7(a) loans | 1mm - 1.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.75%
Acquired SBA 7(a) loans | 1.5mm - 2mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	4
Carrying Value	$ 6,542
UPB	$ 6,779
Acquired SBA 7(a) loans | 1.5mm - 2mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.00%
Acquired SBA 7(a) loans | 1.5mm - 2mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.75%
Acquired SBA 7(a) loans | 2mm - 2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	3
Carrying Value	$ 6,733
UPB	$ 6,732
Acquired SBA 7(a) loans | 2mm - 2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	5.00%
Acquired SBA 7(a) loans | 2mm - 2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.75%
Acquired SBA 7(a) loans | >2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	10
Carrying Value	$ 34,315
UPB	$ 34,881
Acquired SBA 7(a) loans | >2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.00%
Acquired SBA 7(a) loans | >2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.25%
Acquired Transitional loans
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	35
Carrying Value	$ 73,762
UPB	74,302
UPB of loans subject to DQ principal or interest	$ 10,767
Acquired Transitional loans | 0 - 500k
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	10
Carrying Value	$ 1,642
UPB	$ 1,665
Acquired Transitional loans | 0 - 500k | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.00%
Acquired Transitional loans | 0 - 500k | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	9.34%
Acquired Transitional loans | 500k - 1mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	4
Carrying Value	$ 3,026
UPB	$ 3,048
Acquired Transitional loans | 500k - 1mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	5.00%
Acquired Transitional loans | 500k - 1mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.50%
Acquired Transitional loans | 1mm - 1.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	6
Carrying Value	$ 8,130
UPB	8,215
UPB of loans subject to DQ principal or interest	$ 2,750
Acquired Transitional loans | 1mm - 1.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.75%
Acquired Transitional loans | 1mm - 1.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	9.08%
Acquired Transitional loans | 1.5mm - 2mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	5
Carrying Value	$ 8,676
UPB	8,708
UPB of loans subject to DQ principal or interest	$ 1,550
Acquired Transitional loans | 1.5mm - 2mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.50%
Acquired Transitional loans | 1.5mm - 2mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	8.50%
Acquired Transitional loans | 2mm - 2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	3
Carrying Value	$ 6,157
UPB	$ 6,160
Acquired Transitional loans | 2mm - 2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.75%
Acquired Transitional loans | 2mm - 2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	8.00%
Acquired Transitional loans | >2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	7
Carrying Value	$ 46,131
UPB	46,505
UPB of loans subject to DQ principal or interest	$ 6,467
Acquired Transitional loans | >2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	5.00%
Acquired Transitional loans | >2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	9.34%
Originated Transitional loans
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	181
Carrying Value	$ 1,084,570
UPB	1,093,443
UPB of loans subject to DQ principal or interest	$ 11,432
Originated Transitional loans | 0 - 500k
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	15
Carrying Value	$ 1,611
UPB	$ 1,597
Originated Transitional loans | 0 - 500k | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	4.85%
Originated Transitional loans | 0 - 500k | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	8.83%
Originated Transitional loans | 500k - 1mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	12
Carrying Value	$ 8,043
UPB	$ 8,129
Originated Transitional loans | 500k - 1mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	4.92%
Originated Transitional loans | 500k - 1mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.00%
Originated Transitional loans | 1mm - 1.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	12
Carrying Value	$ 14,974
UPB	15,291
UPB of loans subject to DQ principal or interest	$ 1,300
Originated Transitional loans | 1mm - 1.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	4.76%
Originated Transitional loans | 1mm - 1.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	11.77%
Originated Transitional loans | 1.5mm - 2mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	10
Carrying Value	$ 15,256
UPB	$ 15,332
Originated Transitional loans | 1.5mm - 2mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	5.44%
Originated Transitional loans | 1.5mm - 2mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	12.00%
Originated Transitional loans | 2mm - 2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	7
Carrying Value	$ 15,204
UPB	$ 15,381
Originated Transitional loans | 2mm - 2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	5.49%
Originated Transitional loans | 2mm - 2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.86%
Originated Transitional loans | >2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	125
Carrying Value	$ 1,029,482
UPB	1,037,713
UPB of loans subject to DQ principal or interest	$ 10,132
Originated Transitional loans | >2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	4.65%
Originated Transitional loans | >2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	8.83%
Originated Freddie Mac loans
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	6
Carrying Value	$ 21,775
UPB	$ 21,513
Originated Freddie Mac loans | 1mm - 1.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	1
Carrying Value	$ 1,624
UPB	$ 1,600
Originated Freddie Mac loans | 1mm - 1.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	3.73%
Originated Freddie Mac loans | 1mm - 1.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	3.73%
Originated Freddie Mac loans | 2mm - 2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	1
Carrying Value	$ 2,421
UPB	$ 2,385
Originated Freddie Mac loans | 2mm - 2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	3.59%
Originated Freddie Mac loans | 2mm - 2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	3.59%
Originated Freddie Mac loans | >2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	4
Carrying Value	$ 17,730
UPB	$ 17,528
Originated Freddie Mac loans | >2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	3.86%
Originated Freddie Mac loans | >2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	4.39%
Originated Residential Agency loans
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	692
Carrying Value	$ 139,902
UPB	135,411
UPB of loans subject to DQ principal or interest	$ 2,812
Originated Residential Agency loans | 0 - 500k
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	684
Carrying Value	$ 134,889
UPB	130,481
UPB of loans subject to DQ principal or interest	$ 2,812
Originated Residential Agency loans | 0 - 500k | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	2.13%
Originated Residential Agency loans | 0 - 500k | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	5.99%
Originated Residential Agency loans | 500k - 1mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	8
Carrying Value	$ 5,013
UPB	$ 4,930
Originated Residential Agency loans | 500k - 1mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	3.75%
Originated Residential Agency loans | 500k - 1mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	5.50%
Originated SBA 7(a) loans
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	605
Carrying Value	$ 405,180
UPB	409,808
UPB of loans subject to DQ principal or interest	$ 7,367
Originated SBA 7(a) loans | 0 - 500k
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	355
Carrying Value	$ 80,682
UPB	82,565
UPB of loans subject to DQ principal or interest	$ 2,676
Originated SBA 7(a) loans | 0 - 500k | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.00%
Originated SBA 7(a) loans | 0 - 500k | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	8.25%
Originated SBA 7(a) loans | 500k - 1mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	119
Carrying Value	$ 85,023
UPB	85,667
UPB of loans subject to DQ principal or interest	$ 592
Originated SBA 7(a) loans | 500k - 1mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.00%
Originated SBA 7(a) loans | 500k - 1mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	8.25%
Originated SBA 7(a) loans | 1mm - 1.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	63
Carrying Value	$ 75,386
UPB	76,597
UPB of loans subject to DQ principal or interest	$ 1,062
Originated SBA 7(a) loans | 1mm - 1.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.25%
Originated SBA 7(a) loans | 1mm - 1.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.75%
Originated SBA 7(a) loans | 1.5mm - 2mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	27
Carrying Value	$ 46,927
UPB	$ 47,223
Originated SBA 7(a) loans | 1.5mm - 2mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.00%
Originated SBA 7(a) loans | 1.5mm - 2mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.75%
Originated SBA 7(a) loans | 2mm - 2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	11
Carrying Value	$ 25,676
UPB	$ 25,407
Originated SBA 7(a) loans | 2mm - 2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.00%
Originated SBA 7(a) loans | 2mm - 2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.75%
Originated SBA 7(a) loans | >2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	30
Carrying Value	$ 91,486
UPB	92,349
UPB of loans subject to DQ principal or interest	$ 3,037
Originated SBA 7(a) loans | >2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.25%
Originated SBA 7(a) loans | >2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.25%
Originated SBC loans
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	348
Carrying Value	$ 1,170,658
UPB	1,159,148
UPB of loans subject to DQ principal or interest	$ 31,467
Originated SBC loans | 0 - 500k
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	17
Carrying Value	$ 5,605
UPB	$ 5,511
Originated SBC loans | 0 - 500k | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	4.80%
Originated SBC loans | 0 - 500k | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.86%
Originated SBC loans | 500k - 1mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	40
Carrying Value	$ 33,146
UPB	32,540
UPB of loans subject to DQ principal or interest	$ 519
Originated SBC loans | 500k - 1mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	4.50%
Originated SBC loans | 500k - 1mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	9.39%
Originated SBC loans | 1mm - 1.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	60
Carrying Value	$ 75,335
UPB	74,293
UPB of loans subject to DQ principal or interest	$ 3,139
Originated SBC loans | 1mm - 1.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	4.60%
Originated SBC loans | 1mm - 1.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	10.00%
Originated SBC loans | 1.5mm - 2mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	46
Carrying Value	$ 83,488
UPB	82,337
UPB of loans subject to DQ principal or interest	$ 1,560
Originated SBC loans | 1.5mm - 2mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	4.50%
Originated SBC loans | 1.5mm - 2mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.43%
Originated SBC loans | 2mm - 2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	32
Carrying Value	$ 73,573
UPB	72,543
UPB of loans subject to DQ principal or interest	$ 2,085
Originated SBC loans | 2mm - 2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	4.53%
Originated SBC loans | 2mm - 2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.06%
Originated SBC loans | >2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	153
Carrying Value	$ 899,511
UPB	891,925
UPB of loans subject to DQ principal or interest	$ 24,164
Originated SBC loans | >2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	4.12%
Originated SBC loans | >2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.50%
Originated SBC loans, at fair value
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	5
Carrying Value	$ 20,212
UPB	$ 19,565
Originated SBC loans, at fair value | 1mm - 1.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	1
Carrying Value	$ 1,499
UPB	$ 1,376
Originated SBC loans, at fair value | 1mm - 1.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.38%
Originated SBC loans, at fair value | 1mm - 1.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	6.38%
Originated SBC loans, at fair value | 1.5mm - 2mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	1
Carrying Value	$ 1,754
UPB	$ 1,583
Originated SBC loans, at fair value | 1.5mm - 2mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	5.25%
Originated SBC loans, at fair value | 1.5mm - 2mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	5.25%
Originated SBC loans, at fair value | >2.5mm
Schedule IV – Mortgage Loans on Real Estate
Loan Count | loan	3
Carrying Value	$ 16,959
UPB	$ 16,606
Originated SBC loans, at fair value | >2.5mm | Minimum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	5.57%
Originated SBC loans, at fair value | >2.5mm | Maximum
Schedule IV – Mortgage Loans on Real Estate
Interest Rate	7.75%

Schedule IV _ Mortgage Loans _3

Schedule IV – Mortgage Loans on Real Estate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconcile mortgage loans on real estate
Balance at beginning	$ 2,529,624	$ 2,070,122	$ 1,848,477
Origination of loan receivables	3,928,467	3,342,099	2,963,128
Purchases of loan receivables	748,151	386,899	158,522
Proceeds from disposition and principal payment of loan receivables	(3,455,223)	(3,332,886)	(2,993,642)
Loans acquired as part of ORM merger transaction	130,449
Net realized gain (loss) on sale of loan receivables	70,574	57,613	75,595
Net unrealized gain (loss) on loan receivables	1,049	(3,121)	8,865
Accretion/amortization of discount, premium and other fees	14,194	14,474	13,825
Loans consolidated as part of RCLT 2019-2 transaction	463,177
Payment of guaranteed loan financing	(177,815)
Transfers to real estate, held for sale	(2,269)	(3,875)	(2,285)
Provision for loan losses	(3,684)	(1,701)	(2,363)
Balance at Ending	4,246,694	2,529,624	2,070,122
Loans, net
Reconcile mortgage loans on real estate
Balance at beginning	2,414,366	1,854,100	1,666,680
Origination of loan receivables	1,307,143	934,607	454,975
Purchases of loan receivables	739,002	369,418	147,327
Proceeds from disposition and principal payment of loan receivables	(826,702)	(746,162)	(422,059)
Loans acquired as part of ORM merger transaction	130,449
Net realized gain (loss) on sale of loan receivables	(5,700)	(5,454)	(3,203)
Net unrealized gain (loss) on loan receivables	760	(720)	5,328
Accretion/amortization of discount, premium and other fees	14,194	14,474	13,825
Loans consolidated as part of RCLT 2019-2 transaction	463,177
Payment of guaranteed loan financing	(177,815)
Transfers	1,262	(503)	(4,125)
Transfers to real estate, held for sale	(2,269)	(3,693)	(2,285)
Provision for loan losses	(3,684)	(1,701)	(2,363)
Balance at Ending	4,054,183	2,414,366	1,854,100
Loans, held for sale, at fair value
Reconcile mortgage loans on real estate
Balance at beginning	115,258	216,022	181,797
Origination of loan receivables	2,621,324	2,407,492	2,508,153
Purchases of loan receivables	9,149	17,481	11,195
Proceeds from disposition and principal payment of loan receivables	(2,628,521)	(2,586,724)	(2,571,583)
Net realized gain (loss) on sale of loan receivables	76,274	63,067	78,798
Net unrealized gain (loss) on loan receivables	289	(2,401)	3,537
Transfers	(1,262)	503	4,125
Transfers to real estate, held for sale		(182)
Balance at Ending	$ 192,511	$ 115,258	$ 216,022