REDWOOD TRUST INC

Redwood Trust reported a significantly reduced net loss of $(1.1) million for the second quarter of 2026, or $(0.03) per basic common share, a substantial improvement compared to the $(98.5) million loss in the same period last year. The company's total assets grew to $28.82 billion, driven by an increase in residential consumer loans. Redwood Trust also announced the establishment of Aspire Mortgage Banking as a new reportable segment in the first quarter of 2026, reflecting its expanded-credit residential mortgage platform.

Redwood Trust, Inc. reported a GAAP net loss of $(0.03) per basic and diluted common share for the second quarter ended June 30, 2026. However, non-GAAP Earnings Available for Distribution (EAD) was $0.15 per share, and non-GAAP Core Segments EAD was $0.25 per share, reflecting strong operational performance. The company's Mortgage Banking production exceeded $8 billion for the second consecutive quarter, marking the second highest quarterly volume in its history and nearly double the same period last year. GAAP book value per common share was $6.90, and a quarterly dividend of $0.18 per common share was declared.

Redwood Trust provided a preliminary second quarter 2026 business update, highlighting continued momentum in its Aspire mortgage banking businesses, which achieved a record $2.1 billion in lock volume, up 32% sequentially. The company also announced the development of AI-powered tools and the finalization of a new Aspire joint venture with an institutional capital partner. Preliminary estimates indicate a modest 1-3% decline in GAAP book value and an economic return on book value between (1.0)% and 1.0% for Q2 2026.

Redwood Trust, Inc. announced that its Board of Directors declared second quarter 2026 common and preferred stock dividends. The regular common stock dividend is set at $0.18 per share, consistent with the previous quarter, marking the company's 108th consecutive quarterly common dividend. Additionally, a Series A preferred stock dividend of $0.625 per share was declared.

Redwood Trust, Inc. successfully completed its registered underwritten public offering of $125,000,000 aggregate principal amount of 9.75% Senior Notes due 2031. The offering resulted in approximately $120.41 million in net proceeds for the company, which intends to use these funds for general corporate purposes, including funding its operating businesses and investment activities. The Notes are senior unsecured obligations, bearing interest quarterly and maturing on June 1, 2031.

Redwood Trust, Inc. has entered into an underwriting agreement to sell $125 million aggregate principal amount of 9.75% senior notes due 2031. The company also granted the underwriters a 30-day option to purchase up to an additional $18.75 million in notes to cover over-allotments. The offering is anticipated to close on May 27, 2026.

Redwood Trust Inc. held its 2026 Annual Meeting of Stockholders, where several key proposals were approved. Stockholders voted to increase the number of shares available for issuance under the 2014 Incentive Award Plan by 8,500,000 shares of common stock. Additionally, eight directors were elected to the Board, Grant Thornton LLP was ratified as the independent auditor for 2026, and the non-binding advisory resolution on named executive officer compensation was approved.

Redwood Trust reported a net loss of $5.5 million, or $(0.07) per common share, for the first quarter of 2026, a significant decrease from net income of $16.1 million, or $0.10 per share, in the prior year period. While net interest income increased to $34.7 million, the company was impacted by negative investment fair value changes of $(23.2) million and higher general and administrative expenses. Redwood Trust also established Aspire Mortgage Banking as a new reportable segment, reflecting its expanded-credit residential mortgage platform.

Redwood Trust Inc. reported a GAAP net loss of $(0.07) per basic and diluted common share for Q1 2026, with a GAAP net loss of $(7.3) million. However, non-GAAP Earnings Available for Distribution (EAD) was $0.21 per share, exceeding the $0.18 quarterly dividend. The company achieved a record Mortgage Banking production of $8.5 billion, up from $7.3 billion in the prior quarter, marking a third consecutive quarterly record.

Redwood Trust Inc. and Castlelake, L.P. announced a strategic joint venture to support the growth of Redwood's Sequoia platform. The venture plans to purchase up to $8 billion of Sequoia-sourced prime jumbo mortgage loans, with flexibility for future scaling and acquisition of seasoned loans. Sequoia will be responsible for sourcing, aggregating, and diligencing the loans, while Castlelake provides programmatic purchasing power and capital.