Redwood Trust (RWT) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 8.33%. A quarter ago, it was expected that this specialty finance company would post earnings of $0.08 per share when it actually produced earnings of $0.08, delivering no surprise. Over the last four quarters, the c ...

Financial Performance - GAAP net income available to common stockholders was $13.8 million, or $0.10 per basic and diluted common share[2] - The company reported a net income of $15.5 million in Q2 2024, a decrease from $30.3 million in Q1 2024[1] - GAAP net income available to common stockholders for the three months ended June 30, 2024, was $13.8 million, compared to $28.5 million for the three months ended March 31, 2024[24] - Non-GAAP Earnings Available for Distribution ("EAD") was $18.6 million, or $0.13 per basic common share[2] - Non-GAAP Earnings Available for Distribution (EAD) was $18.6 million for the three months ended June 30, 2024, up from $11.0 million for the three months ended March 31, 2024[24] - EAD per basic common share increased to $0.13 for the three months ended June 30, 2024, compared to $0.08 for the three months ended March 31, 2024[24] - GAAP Return on Common Equity (annualized) was 4.8% for the three months ended June 30, 2024, down from 10.0% for the three months ended March 31, 2024[24] - EAD Return on Common Equity (non-GAAP, annualized) improved to 6.5% for the three months ended June 30, 2024, compared to 3.9% for the three months ended March 31, 2024[24] Loan Activity - Locked $2.7 billion of loans in Q2 2024, a 49% increase from $1.8 billion in Q1 2024[2] - Funded $459 million of loans in Q2 2024, a 41% increase from $326 million in Q1 2024[3] - Distributed $1.4 billion of jumbo loans through three securitizations in Q2 2024[2] - Residential loans increased to $9,210.2 million in Q2 2024, up from $7,616.6 million in Q1 2024, indicating strong demand in the mortgage market[22] Financial Position - GAAP book value per common share was $8.73 at June 30, 2024, down from $8.78 at March 31, 2024[2] - Total assets reached $16,491.1 million as of June 30, 2024, compared to $15,058.0 million at the end of Q1 2024, reflecting a significant growth in residential loans[22] - Unrestricted cash and cash equivalents were $276 million at June 30, 2024[4] - Total excess warehouse financing capacity was $3.8 billion at June 30, 2024[4] - Secured recourse leverage ratio was 0.6x at June 30, 2024, down from 0.9x at March 31, 2024[3] Income Sources - Income from Residential Consumer Mortgage Banking rose by 49% quarter over quarter, contributing to an increase in overall mortgage banking income[18] - Income from Residential Investor Mortgage Banking increased by 41% quarter over quarter, benefiting from improved distribution economics[18] Expenses and Adjustments - General and administrative expenses decreased by 20% compared to Q1 2024, primarily due to lower fixed employee compensation[19] - Acquisition-related expenses amounted to $2.2 million for the three months ended June 30, 2024, slightly down from $2.8 million for the three months ended March 31, 2024[24] - Organizational restructuring charges were not reported for the three months ended June 30, 2024, but were $2.8 million for the three months ended March 31, 2024[24] - The tax effect of adjustments for the three months ended June 30, 2024, was $3.7 million, compared to a tax effect of $(0.8) million for the three months ended March 31, 2024[24] Other Financial Metrics - Investment fair value changes, net, resulted in a loss of $1.1 million for the three months ended June 30, 2024, compared to a loss of $21.8 million for the three months ended March 31, 2024[24] - Declared and paid a regular quarterly dividend of $0.16 per common share[2] - The weighted average diluted common shares outstanding increased to 132,124 thousand in Q2 2024 from 131,570 thousand in Q1 2024[1] - HEI income, net increased in Q2 2024, supported by improved home price appreciation trends[19] Reporting Changes - The company has made changes to its calculation of EAD and consolidated income statements to enhance clarity and comparability with industry peers[24]

This specialty finance company is expected to post quarterly earnings of $0.12 per share in its upcoming report, which represents a year-over-year change of -14.3%. Revenues are expected to be $28.13 million, up 8.2% from the year-ago quarter. The market expects Redwood Trust (RWT) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a power ...

Redwood Trust, Inc. (RWT) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, RWT's 50- day simple moving average broke out above its 200-day moving average; this is known as a "golden cross." A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages bein ...

UNITED STATES OF AMERICA SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended: March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______________ to _______________. Commission File Number 1-13759 REDWOOD TRUST, INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 68-032 ...

Redwood Trust, Inc. (NYSE:RWT) Q1 2024 Earnings Conference Call April 30, 2024 5:00 PM ET Company Participants Kaitlyn Mauritz - Senior Vice President, Investor Relations Chris Abate - Chief Executive Officer Dash Robinson - President Brooke Carillo - Chief Financial Officer Conference Call Participants Rick Shane - JPMorgan Bose George - KBW Doug Harter - UBS Crispin Love - Piper Sandler Don Fandetti - Wells Fargo Stephen Laws - Raymond James Eric Hagen - BTIG Steve Delaney - Citizens JMP Kyle Joseph - Jef ...

R E D W O O D T R U S T . C O M This presentation contains forward-looking statements, including statements regarding our 2024 forward outlook, current illustrative returns related to capital deployment opportunities, estimates of upside and potential earnings in our investment portfolio from embedded discounts to par value on securities, statements regarding our joint ventures with Oaktree and CPP Investments, including the estimated levered purchase capacity of our joint venture with CPP Investments of up ...

Exhibit 99.1 REDWOOD TRUST REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS MILL VALLEY, CA – Redwood Trust, Inc. (NYSE:RWT; "Redwood", the "Company", "we" or "our"), a leader in expanding access to housing for homebuyers and renters, today reported its financial results for the quarter ended March 31, 2024. Key Q1 2024 Financial Results and Metrics Operational Business Highlights Residential Consumer Mortgage Banking Residential Investor Mortgage Banking 1 • GAAP book value per common share was $8.78 at March ...

UNITED STATES OF AMERICA SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended: December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______________ to _______________. Commission File Number 1-13759 REDWOOD TRUST, INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 68-0329422 ...

Financial Data and Key Metrics Changes - Net interest income (NII) was essentially flat this quarter, with a modest improvement in bridge NII offset by lower portfolio NII from securities sold and higher interest expense on new financing activities [10] - Earnings available for distribution (EAD) decreased to $7.1 million or $0.05 per basic common share for the fourth quarter, down from $12.6 million or $0.10 per share in the third quarter, primarily due to lower income from mortgage banking activities [11][12] - GAAP net income for the fourth quarter was $19.3 million or $0.15 per common share, compared to negative $32.6 million or negative $0.29 in the third quarter, resulting in a fourth quarter GAAP return on equity of 7.3% [142] Business Line Data and Key Metrics Changes - Residential Mortgage Banking experienced a modest quarter-over-quarter reduction in volume driven largely by seasonality, but maintained strategic momentum [3] - The investor loan products attracted retention from Capital Partners, with $111 million of loans distributed through whole loan sales and sales to a joint venture [6] - The multifamily bridge portfolio remains a key focus area, with borrowers managing to stabilize projects and inject fresh equity [140] Market Data and Key Metrics Changes - Over 55% of the quarter's total lock volume came from banks, up from 38% in the third quarter, indicating a shift in market dynamics [106] - The company estimates its $2.8 billion of locks in the second half of 2023 represent approximately 5% of total jumbo market share, compared to a historical range of 2% to 3% [89] - The multifamily bridge portfolio is under pressure due to higher rates, but there is optimism for recovery as sponsors work towards stabilization [140][141] Company Strategy and Development Direction - The company aims to continue opportunistic deployment of capital into products with attractive return profiles that complement its mortgage banking businesses [15] - A strategic shift towards joint ventures with leading private credit institutions is underway, enhancing liquidity and pricing power [98][99] - The company is focused on home equity investments, launching a traditional second lien mortgage product to address the largest untapped market in housing finance [103][132] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic positioning given excess capital and the potential for market recovery as rates stabilize [19][54] - The company is optimistic about the demand for real estate and the potential for fresh capital to support recovery in its loan portfolio [38][39] - Management acknowledged the challenges in the current market but emphasized the importance of being selective and strategic in capital deployment [31][56] Other Important Information - The company achieved a 5% to 10% expense reduction in 2023 and aims for further efficiency improvements in 2024 [80][117] - The company has approximately $318 million of unencumbered assets that can serve as a potential source of capital for growth or debt repurchase [116][66] - The company completed five securitizations in the fourth quarter, enhancing its capital structure and liquidity [32][139] Q&A Session Summary Question: What is the outlook for multifamily delinquency trends? - Management acknowledged the uptick in multifamily delinquencies but expressed optimism about the underlying demand for real estate and the potential for recovery as projects stabilize [23][39] Question: Can you discuss the dynamics of the origination side and the residential consumer mortgage banking business? - Management noted that while the origination market is challenging, they feel good about their trajectory and are taking market share, supported by strong demand for their products [150][121] Question: How does the company view its capital position and deployment strategy? - Management highlighted that they have $285 million of excess capital and are well-positioned to be aggressive in capital deployment as market conditions improve [19][57]