Group 1 - Redwood Trust Inc (NYSE: RWT) has a business model that allows it to achieve high returns while minimizing balance sheet risks [1] - The stock is currently trading at 0.7 times price-to-book (P/B) ratio, indicating potential undervaluation [1]

PART I — FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Redwood Trust reported Q1 2025 net income of $16.1 million ($0.10 diluted EPS), down from $30.3 million in Q1 2024, with total assets growing to $19.9 billion - The company declared a common dividend of **$0.18 per share** for the first quarter of 2025[18](index=18&type=chunk) Q1 2025 Key Financial Highlights | Financial Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $27.9M | $24.2M | | Net Income | $16.1M | $30.3M | | Diluted EPS | $0.10 | $0.21 | | Total Assets (End of Period) | $19.9B | $15.1B | | Total Liabilities (End of Period) | $18.7B | $13.8B | | Total Equity (End of Period) | $1.18B | $1.22B | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased by $1.6 billion to $19.9 billion, driven by residential consumer loans, while total liabilities rose by $1.6 billion to $18.7 billion Balance Sheet Comparison (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$19,871,775** | **$18,258,344** | | Residential consumer loans, at fair value | $12,752,258 | $11,077,823 | | Residential investor loans, at fair value | $4,439,834 | $4,587,090 | | Cash and cash equivalents | $259,918 | $245,165 | | **Total Liabilities** | **$18,688,281** | **$17,070,481** | | Asset-backed securities issued, net | $14,458,243 | $13,270,204 | | Debt obligations, net | $3,760,685 | $3,462,880 | | **Total Equity** | **$1,183,494** | **$1,187,863** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2025 net income was $16.1 million, down from $30.3 million in Q1 2024, primarily due to a negative swing in investment fair value changes Income Statement Summary (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Interest Income | $27,942 | $24,210 | | Mortgage banking activities, net | $33,053 | $14,556 | | Investment fair value changes, net | $(5,188) | $21,837 | | Total non-interest income, net | $45,906 | $50,339 | | General and administrative expenses | $(37,471) | $(34,569) | | **Net Income** | **$16,147** | **$30,262** | | **Diluted EPS** | **$0.10** | **$0.21** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly increased to $1.95 billion in Q1 2025, primarily due to higher held-for-sale loan purchases Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,952,505) | $(954,171) | | Net cash provided by investing activities | $658,757 | $350,287 | | Net cash provided by financing activities | $1,327,296 | $575,483 | | **Net increase (decrease) in cash** | **$33,548** | **$(28,401)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's three operating segments, fair value measurements, and management of residential loan portfolios and debt facilities [Note 4. Segment Information](index=12&type=section&id=Note%204.%20Segment%20Information) Sequoia Mortgage Banking and Redwood Investments were key contributors to Q1 2025 net income, offset by a corporate-level net loss Segment Contribution (Net Income/Loss, in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Sequoia Mortgage Banking | $25,817 | $7,019 | | CoreVest Mortgage Banking | $1,338 | $(5,509) | | Redwood Investments | $22,868 | $57,492 | | Corporate/Other | $(33,876) | $(28,740) | | **Total Net Income** | **$16,147** | **$30,262** | [Note 7. Residential Consumer Loans](index=21&type=section&id=Note%207.%20Residential%20Consumer%20Loans) Residential consumer loans increased to $12.8 billion in Q1 2025, driven by $2.3 billion in loan acquisitions Activity of Residential Consumer Loans Held-for-Sale (in thousands) | Activity | Three Months Ended March 31, 2025 | | :--- | :--- | | Principal balance of loans acquired | $2,337,185 | | Principal balance of loans sold | $420,513 | | Principal balance of loans transferred from HFS to HFI | $1,623,900 | - The company had **$2.3 billion** in commitments to fund residential consumer loans as of March 31, 2025, including a **$1 billion** commitment to acquire a pool of seasoned jumbo loans[91](index=91&type=chunk) [Note 8. Residential Investor Loans](index=24&type=section&id=Note%208.%20Residential%20Investor%20Loans) The $4.4 billion residential investor loan portfolio is actively managed for credit risk, with $206 million in modifications and $342 million on non-accrual status - In Q1 2025, the company modified or placed into forbearance residential investor loans with a total unpaid principal balance of **$206 million**[128](index=128&type=chunk) - As of March 31, 2025, residential investor loans with an aggregate unpaid principal balance of **$342 million** were on non-accrual status[134](index=134&type=chunk) - The fair value of residential investor bridge loans declined from **$1.94 billion to $1.88 billion**, reflecting payoffs and negative fair value changes from higher delinquencies on 2021 and 2022 vintage loans[128](index=128&type=chunk) [Note 18. Debt Obligations, Net](index=44&type=section&id=Note%2018.%20Debt%20Obligations%2C%20Net) Total debt obligations increased to $3.76 billion, supported by $5.2 billion in warehouse facilities, with $90 million in new senior notes issued Debt Obligations Summary (in thousands) | Debt Type | Carrying Value (Mar 31, 2025) | Facility Capacity (Mar 31, 2025) | | :--- | :--- | :--- | | Residential consumer loan warehouse facilities | $1,210,265 | $2,875,000 | | Residential investor loan warehouse facilities | $786,891 | $2,330,000 | | Corporate Debt (Convertible, Senior, etc.) | $733,003 | N/A | | **Total Debt Obligations** | **$3,760,685** | | - In January 2025, Redwood issued **$90 million** of 9.125% Senior Notes due in 2030[230](index=230&type=chunk) [Note 19. Commitments and Contingencies](index=46&type=section&id=Note%2019.%20Commitments%20and%20Contingencies) Significant funding commitments include $350 million for bridge loan advances and equity capital commitments to joint ventures - Commitment to fund up to **$350 million** of additional advances on existing residential investor bridge loans[234](index=234&type=chunk) - Committed approximately **$100 million** of equity capital to a joint venture established in Q1 2024, with **$25 million** contributed to date[235](index=235&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported strong Sequoia segment performance, a capital-light strategy for CoreVest, and efforts to reduce legacy bridge loans, targeting 9-12% ROE in H2 2025 - Sequoia jumbo lock volumes rose **73%** from the prior quarter to **$4 billion**, the highest quarterly volume since Q3 2021[278](index=278&type=chunk) - CoreVest funded **$482 million** in loans in Q1 2025, a **48% increase year-over-year**, with a strategy to reduce on-balance sheet holdings and distribute through private credit partnerships[280](index=280&type=chunk) - The company is taking steps to accelerate the reduction of its legacy bridge loan portfolio to focus capital on strategic go-forward activities[282](index=282&type=chunk) - Management expects to achieve annualized returns on equity in the **9% to 12% range** in the second half of 2025[275](index=275&type=chunk) [Results of Operations by Segment](index=61&type=section&id=Results%20of%20Operations%20by%20Segment) Q1 2025 segment performance was led by Sequoia's rebound and CoreVest's profitability, while Redwood Investments' contribution declined due to legacy bridge loan losses Segment Contribution Summary (in thousands) | Segment | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Sequoia Mortgage Banking | $25,817 | $21,799 | $7,019 | | CoreVest Mortgage Banking | $1,338 | $1,526 | $(5,509) | | Redwood Investments | $22,868 | $2,761 | $57,492 | [Sequoia Mortgage Banking Segment](index=61&type=section&id=Sequoia%20Mortgage%20Banking%20Segment) Sequoia's contribution surged to $25.8 million in Q1 2025, driven by a 73% sequential increase in loan lock volumes to $4.0 billion - Loan purchase commitments (locks) increased to **$3.3 billion** in Q1 2025, up from **$1.9 billion** in Q4 2024 and **$1.3 billion** in Q1 2024[326](index=326&type=chunk) - Locked a **$1 billion** bulk transaction of seasoned loans from a large bank in Q1 2025[329](index=329&type=chunk) - Gain on sale margin was **123 basis points** in Q1 2025, remaining above the historical target range of 75-100 basis points[332](index=332&type=chunk) [CoreVest Mortgage Banking Segment](index=64&type=section&id=CoreVest%20Mortgage%20Banking%20Segment) CoreVest returned to profitability with a $1.3 million contribution, driven by $481 million in funding volume and a capital-light distribution strategy CoreVest Funding Activity (in thousands) | Activity | Three Months Ended March 31, 2025 | | :--- | :--- | | Fundings (Term & Bridge) | $481,449 | | Sales | $(370,316) | | Transfers between segments | $(105,799) | - Distribution activity was strong in Q1 2025, with **$421 million** distributed through whole loan sales and sales to joint ventures[353](index=353&type=chunk) [Redwood Investments Segment](index=66&type=section&id=Redwood%20Investments%20Segment) Redwood Investments' contribution declined to $22.9 million due to a $34.0 million loss from legacy bridge loans, despite gains from other investment strategies Redwood Investments Earnings by Strategy (in thousands) | Strategy | Q1 2025 Contribution | | :--- | :--- | | Retained Operating Investments | $23,031 | | Third-Party Portfolio Investments | $33,788 | | Legacy Bridge Investments | $(33,951) | | **Total Segment Contribution** | **$22,868** | - 90 day+ delinquencies on residential investor bridge loans were higher in Q1 2025, primarily driven by two sponsor relationships and concentrated in 2021 and 2022 vintages[371](index=371&type=chunk) - The company is actively working to reduce exposure in the legacy bridge loan portfolio, with a **10% payoff rate** (by UPB) during Q1 2025[371](index=371&type=chunk) [Liquidity and Capital Resources](index=74&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $1.94 billion in total capital and $5.2 billion in warehouse facilities, expecting to repay $124 million in maturing notes Capital and Liquidity Summary (as of March 31, 2025) | Metric | Amount | | :--- | :--- | | Total Capital | $1.94 billion | | Total Equity Capital | $1.18 billion | | Unrestricted Cash & Equivalents | $260 million | | Unencumbered Assets | $291 million | - The company's **5.75% exchangeable senior notes** with an outstanding principal of **$124 million** mature in October 2025 and are expected to be repaid with cash on hand[431](index=431&type=chunk) - At March 31, 2025, **$101 million** remained available under the common stock repurchase authorization[422](index=422&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposure were reported since December 31, 2024, beyond those discussed in MD&A - No material changes in market risk exposure were reported since the fiscal year ended December 31, 2024[450](index=450&type=chunk) [Controls and Procedures](index=78&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during Q1 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[452](index=452&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[453](index=453&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) No significant updates to legal proceedings were reported since the Annual Report on Form 10-K - There are no significant updates regarding litigation matters since the last Annual Report[241](index=241&type=chunk)[455](index=455&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=79&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity securities were sold or shares repurchased in Q1 2025, with $101 million remaining for common stock repurchases - No shares of common or preferred stock were repurchased during Q1 2025[457](index=457&type=chunk) - As of March 31, 2025, the remaining repurchase authorization was **$101 million** for common stock and **$70 million** for preferred stock[457](index=457&type=chunk)

Core Viewpoint - Redwood Trust (RWT) is positioned as a strong investment opportunity due to its improving earnings outlook and positive analyst sentiment [1][2]. Estimate Revisions - Analysts have shown growing optimism regarding Redwood Trust's earnings prospects, leading to a rising trend in estimate revisions, which typically correlates with stock price movements [2]. - The consensus earnings estimate for the current quarter is $0.20 per share, reflecting a year-over-year increase of +53.85%, with a 9.59% rise in estimates over the last 30 days [4]. - For the full year, the expected earnings are $0.82 per share, indicating a year-over-year change of +57.69%, with a 9.78% increase in consensus estimates over the past month [5]. Zacks Rank - Redwood Trust has achieved a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on the positive estimate revisions [6]. - Historically, stocks with a Zacks Rank 1 have generated an average annual return of +25% since 2008, suggesting a favorable investment environment [3][6]. Stock Performance - Over the past four weeks, Redwood Trust shares have increased by 10.1%, indicating investor confidence in the company's earnings growth prospects [7].

Core Viewpoint - Redwood Trust (RWT) shares have increased by 10.1% in the past four weeks, closing at $5.89, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $7.47, representing a 26.8% increase from the current price [1] Price Targets and Analyst Estimates - The mean estimate consists of nine short-term price targets with a standard deviation of $0.73, where the lowest estimate is $6 (1.9% increase) and the highest is $8.50 (44.3% increase) [2] - A low standard deviation indicates a high degree of agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about RWT's earnings prospects, with a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, one estimate has increased while there were no negative revisions, leading to a 9.8% increase in the Zacks Consensus Estimate [12] Zacks Rank and Investment Potential - RWT holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside in the near term [13]

Core Insights - Redwood Trust reported revenue of $27.9 million for Q1 2025, a 16.3% year-over-year increase, but fell short of the Zacks Consensus Estimate of $31.31 million by -10.89% [1] - The company’s EPS for the quarter was $0.14, compared to $0.08 a year ago, but also missed the consensus estimate of $0.17 by -17.65% [1] Financial Performance Metrics - Net interest income was reported at $27.90 million, below the average estimate of $30.09 million from four analysts [4] - Total non-interest income (loss), net, was $45.90 million, exceeding the average estimate of $43.75 million based on four analysts [4] - Non-interest income (loss) from other income, net, was $1.60 million, significantly lower than the average estimate of $7.25 million [4] - Non-interest income (loss) from investment fair value changes, net, was reported at -$5.20 million, compared to the average estimate of $4.13 million from two analysts [4] Stock Performance - Redwood Trust shares have returned +2.8% over the past month, outperforming the Zacks S&P 500 composite, which saw a -0.2% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Redwood Trust reported quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.17 per share, but showing an improvement from $0.08 per share a year ago, indicating a -17.65% earnings surprise [1] - The company posted revenues of $27.9 million for the quarter, missing the consensus estimate by 10.89%, compared to $24 million in the same quarter last year [2] Earnings Performance - Over the last four quarters, Redwood Trust has surpassed consensus EPS estimates two times [2] - The company had an earnings surprise of -18.75% in the previous quarter, where it was expected to post earnings of $0.16 per share but delivered $0.13 [1] Stock Performance - Redwood Trust shares have declined approximately 4.8% since the beginning of the year, while the S&P 500 has seen a decline of 5.5% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates for the upcoming quarter at $0.20 on revenues of $30.55 million, and $0.82 on revenues of $126.96 million for the current fiscal year [7] - The estimate revisions trend for Redwood Trust is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The REIT and Equity Trust industry, to which Redwood Trust belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Data and Key Metrics Changes - The company reported GAAP earnings of $14.4 million or $0.10 per share, compared to a loss of $8.4 million or negative $0.07 per share in the previous quarter, indicating a significant sequential improvement [22] - Book value per share ended the quarter at $8.39, a slight decline from $8.46 in the fourth quarter, translating to a positive economic return of 1.3% for the first quarter [22] - Earnings available for distribution (EAD) for the first quarter was $19.8 million or $0.14 per share, up from $18.4 million or $0.13 per share in the fourth quarter [23] Business Line Data and Key Metrics Changes - Sequoia's first quarter performance showed $4 billion in locks, representing a 73% quarter-on-quarter growth, driven by wallet share growth and seasoned bulk portfolios [11] - Net income from Sequoia was $25.8 million, representing a 28% return on equity (ROE) for the quarter, up from 23% in the previous quarter [23] - CorVest generated net income of $2.9 million, resulting in a 20% ROE for the quarter, despite a slight decrease in volumes from the fourth quarter [24] Market Data and Key Metrics Changes - The company noted that the mortgage market has not experienced disproportionate effects from recent market volatility, unlike previous years [6] - The company observed a significant demand for the assets created, with trillions of dollars raised by private credit institutions looking to invest in the residential mortgage space [9] - The company reported that the average capital allocation ticked down for the quarter, indicating a focus on liquidity and execution risk management [38] Company Strategy and Development Direction - The company is focusing on strategic partnerships with entities on both the supply and demand side of the market as part of its growth initiatives [10] - The company is advocating for a leveling of the playing field between private capital and government-sponsored enterprises (GSEs) to streamline regulatory burdens [9] - The company aims to achieve annualized EAD returns on equity in the 9% to 12% range by reallocating capital towards operating platforms and reducing exposure to legacy investments [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transformation in mortgage financing and the potential for significant growth opportunities in the housing finance policy landscape [8] - The management highlighted the importance of speed and efficiency in managing liquidity and execution risk amidst market volatility [40] - The company is adjusting production priorities in response to emerging local trends to meet growth goals at attractive risk-adjusted returns [17] Other Important Information - The company ended the quarter with unrestricted cash of $260 million, up from $245 million at year-end, indicating improved liquidity [25] - The company has a current share repurchase authorization of over $100 million and is actively evaluating opportunities for buybacks [64] - The company has reduced securities repo by 40% since March 31, reflecting a proactive approach to managing its debt profile [27] Q&A Session Summary Question: How did the company hedge its portfolio during recent market volatility? - Management indicated that they constantly turn capital and move risk quickly, utilizing various transactions to manage the portfolio effectively [32] Question: How does the company manage liquidity and execution risk with high volume locks? - Management emphasized the importance of speed and knowing where risk can be cleared, with half of the pipeline already sold or securitized since the end of the quarter [39] Question: Can you clarify the nature of the $1.9 billion bulk purchases? - Management confirmed that these were closed loans categorized as part of forward purchases, indicating a robust addressable market for such transactions [44] Question: What is the outlook for the bridge loans and the associated risks? - Management noted that the $1.6 per share figure pertains specifically to older vintage multifamily bridge loans, with ongoing efforts to optimize financing and pursue resolutions [49] Question: Can you elaborate on the expected EAD ROE for 2025? - Management indicated a target of 9% to 12% for the full year, with expectations for growth driven by increased flow activity and capital redeployment [59]

Financial Data and Key Metrics Changes - The company reported GAAP earnings of $14.4 million or $0.10 per share, compared to a loss of $8.4 million or negative $0.07 per share in the fourth quarter, indicating a significant sequential improvement driven by strong performance across operating platforms [22] - Book value per share ended the quarter at $8.39, a modest decline from $8.46 in the fourth quarter, translating to a positive economic return of 1.3% for the first quarter [23] - Earnings available for distribution (EAD) for the first quarter was $19.8 million or $0.14 per share, up from $18.4 million or $0.13 per share in the fourth quarter [24] Business Line Data and Key Metrics Changes - Sequoia's first quarter performance showed $4 billion in locks, representing a 73% quarter-on-quarter growth, while the net income from Sequoia was $25.8 million, representing a 28% return on equity (ROE) for the quarter, up from 23% in the previous quarter [11][24] - CorVest generated net income of $2.9 million, resulting in a 20% ROE for the quarter, despite a slight decrease in volumes from the fourth quarter [25] - Aspire's early lock volumes were just over $100 million, tracking within the same gain on sale margin range as Sequoia [25] Market Data and Key Metrics Changes - The company noted that while money center banks reported steep mortgage volume declines of 20% to 30%, Sequoia's growth was driven by wallet share growth and the emergence of seasoned bulk portfolios from banks [11] - The company observed a strong demand for the assets created, with trillions of dollars raised by private credit institutions looking to invest in the residential mortgage space [10] Company Strategy and Development Direction - The company is focusing on strategic partnerships with entities on both the supply and demand side of the market as part of its growth initiatives [10] - The company is advocating for a leveling of the playing field between private capital and government-sponsored enterprises (GSEs) to streamline regulatory burdens and enhance market efficiency [9] - The company aims to reallocate nearly 20% of capital towards operating platforms and retained operating investments while reducing exposure to legacy bridge investments [31] Management's Comments on Operating Environment and Future Outlook - Management indicated that the current macro environment has rendered most projections for 2025 obsolete, but the company is navigating market volatility from a position of strength [5][6] - The management expressed optimism about the potential transformation in housing finance policy and the opportunity for private sector financing without government support [9] - The company expects to achieve its full-year target despite potential short-term volume fluctuations due to market conditions [31] Other Important Information - The company ended the quarter with unrestricted cash of $260 million, up from $245 million at year-end, and recourse leverage stood at 2.5 times compared to 2.4 times in the fourth quarter [26] - The company has a current share repurchase authorization of over $100 million and is actively evaluating the potential for share buybacks [63] Q&A Session Summary Question: How did the company hedge its portfolio during the volatility in April? - The company emphasized its ability to turn capital and move risk quickly, which contributed to managing the period effectively across the book [33][34] Question: How does the company manage liquidity and execution risk with significant volume locks? - The company highlighted its efficient risk turnover and the ability to pre-sell or know where partners are lined up to execute, which mitigates liquidity risk [39][40] Question: Can the company provide clarity on the bulk purchases of seasoned loans? - The company confirmed that the bulk purchases are closed loans and emphasized their focus on distribution and hedging parameters [44][46] Question: What is the outlook for the bridge loans and the associated risks? - The company noted that the uptick in delinquency was a result of strategic decisions to pursue alternative resolutions and that they expect to resolve these issues throughout the year [50][52] Question: Can the company elaborate on the expected EAD ROE for 2025? - The company expects a year-end 2025 run rate of 9% to 12% for EAD ROE, driven by reallocating capital towards operating businesses [58][60]

Financial Performance - Redwood Trust's Q1 2025 total economic return was +13%[11] - The GAAP book value per share was $839 in Q1 2025[11] - The non-GAAP EAD common dividend per share was $018 in both Q4 2024 and Q1 2025[11] - GAAP segment net income for Sequoia was $258 million with a segment GAAP ROE of 28%[20] - GAAP segment net income for CoreVest was $13 million with a segment Non-GAAP EAD ROE of 20%[20] - GAAP Segment net income for Redwood Investments was $229 million[20] Business Segments - Sequoia's lock volume reached $40 billion, a 73% QoQ increase and a 125% YoY increase[20] - Aspire locked $111 million of loans after launching expanded loan products in January 2025[20] - CoreVest funded $482 million in loans, a 4% decrease QoQ but a 48% increase YoY[20] Capital Allocation and Investments - Approximately $100 million of capital was deployed into accretive Retained Operating Investments with target returns of 15% to 20%[20] - Redwood Investments represented 72% of Q1 2025 average allocated capital, totaling $15 billion[17]

Company Overview - Redwood Trust, Inc. issued its Shareholder Letter for Q1 2025 on April 21, 2025[6] - The company is listed on the New York Stock Exchange under the symbol RWT[4] - Redwood Trust is classified as an emerging growth company under the Securities Act[4] - Redwood Trust has multiple classes of securities registered, including common stock and various senior notes[4] Financial Performance - Redwood Trust reported significant financial results in the attached shareholder letter, which includes detailed performance metrics[6] - The financial statements and exhibits related to the Q1 2025 results are included in the report[8] - Redwood Trust's financial condition and operational results are subject to further detailed analysis in the shareholder letter[6] Compliance and Governance - The report was signed by Brooke E. Carillo, the Chief Financial Officer of Redwood Trust[12] - The company is committed to transparency and compliance with SEC regulations[7] Operational Insights - The shareholder letter provides insights into operational performance and future strategies[6]