Financial Performance - GAAP net loss attributable to common stockholders was (8.4)million,equatingto(0.07) per basic and diluted common share[5]. - Net loss attributable to common stockholders was 8.4millioninQ42024,comparedtonetincomeof13.1 million in Q3 2024[27]. - Non-GAAP Earnings Available for Distribution (EAD) was 18.4million,or0.13 per basic common share, down from 0.18inthepreviousquarter[5].−Earningsavailablefordistribution(non−GAAP)was18.4 million in Q4 2024, down from 25.2millioninQ32024[27].−EADreturnoncommonequity(non−GAAP,annualized)was6.617.6 million, significantly lower than 44.2millioninQ32024,primarilyduetofairvaluechanges[24].AssetandEquityChanges−Totalassetsdecreasedto18.258 billion in Q4 2024 from 18.427billioninQ32024,reflectingareductioninresidentialconsumerloans[25].−Stockholders′equityattheendofQ42024was1.188 billion, down from 1.223billioninQ32024[25].−GAAPbookvaluepercommonsharedecreasedto8.46 at December 31, 2024, from 8.74atSeptember30,2024,reflectinganeconomicreturnonbookvalueof(1.1)27.6 million, an increase from 25.5millioninQ32024,drivenbyaccretivecapitaldeployment[24].−Sequoiamortgagebankingactivitiesgeneratednetincomeof16.8 million in Q4 2024, down from 26.7millioninQ32024,despitemaintaininggainonsalemarginsabovethetargetrange[24].−CoreVestmortgagebankingactivitiesnetincomedecreasedto1.1 million in Q4 2024 from 1.8millioninQ32024duetonon−recurringfeerevenueinthepreviousquarter[24].LoanandFinancingActivities−Lockedloanstotaled2.3 billion, a 4% increase from 2.2billioninQ32024,withquarterlyflowvolumeincreasingby572.5 billion of loans through securitizations (1.1billion)andwholeloansales(1.4 billion)[5]. - Funded loans amounted to 501million,a9458 million in Q3 2024, with term loan volume rising 43% to 227million[5].−Therecourseleverageratiowas2.4xatDecember31,2024,downfrom2.5xatSeptember30,2024[5].−Thecompanymaintainedunrestrictedcashandcashequivalentsof245 million and total excess warehouse financing capacity of $4.7 billion[9]. Strategic Outlook - The CEO highlighted expectations for further progress in 2025, focusing on strategic bank relationships and innovative loan products to enhance market share[8]. Non-GAAP Measures - EAD Net contribution and EAD Net contribution ROC are non-GAAP measures used to analyze the profitability of each business segment[10]. - GAAP ROC is defined as GAAP Net contribution adjusted for investment fair value changes, realized gains and losses, acquisition-related expenses, and organizational restructuring charges[10]. - Acquisition-related expenses include transaction costs and ongoing amortization of intangible assets from Riverbend and CoreVest acquisitions[10]. - EAD ROC is calculated by dividing EAD by average capital utilized for each respective period[10].
Redwood Trust(RWT)2025-02-13 21:15