Provision for Credit Losses
Ready Capital Provision for Credit Losses decreased by 52.7% to $70.91M in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 164.7%, from -$109.57M to $70.91M. Over 4 years (FY 2021 to FY 2025), Provision for Credit Losses shows an upward trend with a 81.3% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase suggests deteriorating credit quality or a more conservative outlook on the loan portfolio, while a decrease suggests improved credit conditions.
Detailed definition
An expense charged to the income statement to account for expected future losses on the loan portfolio. It reflects mana...
Peer comparison
Standard for all lenders; peers report this as provision for loan losses or credit loss expense.
provision_for_credit_lossesHistorical Data
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $5.52M | $1.58M | $961.00K | $1.54M | -$4.39M | $3.43M | $33.86M | -$6.73M | $19.43M | -$12.15M | $6.69M | -$26.54M | -$18.87M | $53.17M | $285.01M | -$109.57M | $8.64M | $37.98M | $149.99M | $70.91M |
| QoQ Change | — | -71.4% | -39.1% | +60.5% | -384.7% | +178.2% | +886.9% | -119.9% | +388.5% | -162.5% | +155.0% | -496.9% | +28.9% | +381.7% | +436.1% | -138.4% | +107.9% | +339.5% | +294.9% | -52.7% |
| YoY Change | — | — | — | — | -179.6% | +117.3% | >999% | -536.7% | +542.5% | -454.2% | -80.2% | -294.2% | -197.1% | +537.5% | >999% | -312.8% | +145.8% | -28.6% | -47.4% | +164.7% |
Business Segments — Lmm Commercial Real Estate
| Segment | Q3 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q2 '24 | Q3 '24 | Q1 '25 |
|---|---|---|---|---|---|---|---|---|
| Lmm Commercial Real Estate | $7.87M | — | — | — | $6.59M | -$14.41M | $49.24M | -$117.94M |
| Small Business Lending | $200.00K | $1.40M | $2.01M | $2.31M | $96.00K | -$4.46M | $3.93M | $8.37M |
| Sbc Lending And Acquisitions | $3.23M | -$8.13M | $17.42M | -$14.47M | — | — | — | — |
| Total | $3.43M | -$6.73M | $19.43M | -$12.15M | $6.69M | -$18.87M | $53.17M | -$109.57M |
Lmm Commercial Real Estate, Sbc Lending And Acquisitions, Small Business Lending were previously reported and have since been discontinued or reclassified. Only currently active segments are shown in the chart.
Business Segments — LMM Commercial Real Estate
| Segment | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 |
|---|---|---|---|---|---|
| LMM Commercial Real Estate | -$117.94M | $5.15M | $30.98M | $143.54M | $66.52M |
| Small Business Lending | $8.37M | $3.49M | $7.00M | $6.45M | $4.38M |
| Total | -$109.57M | $8.64M | $37.98M | $149.99M | $70.91M |
Provision for Credit Losses at Other Companies
Frequently Asked Questions
- What is Ready Capital's provision for credit losses?
- Ready Capital (RC) reported provision for credit losses of $70.91M in Q1 2026.
- How has Ready Capital's provision for credit losses changed year-over-year?
- Ready Capital's provision for credit losses increased by 164.7% year-over-year, from -$109.57M to $70.91M.
- What is the long-term trend for Ready Capital's provision for credit losses?
- Over 4 years (2021 to 2025), Ready Capital's provision for credit losses has grown at a 81.3% compound annual growth rate (CAGR), from $8.05M to $87.04M.
- What does provision for credit losses mean?
- The amount set aside to cover potential losses from loans that may not be repaid.