EPS: As of FY2025 Q1, the actual value is USD 0.1.

Key Financial Metrics

• GAAP Book Value per Common Share: $8.39 at March 31, 2025, compared to $8.46 at December 31, 2024.
• GAAP Net Income: $14.4 million or $0.10 per basic and diluted common share.
• Non-GAAP Earnings Available for Distribution (EAD): $19.8 million or $0.14 per basic common share.
• Recourse Leverage Ratio: 2.5x at March 31, 2025, compared to 2.4x at December 31, 2024.
• Unrestricted Cash and Cash Equivalents: $260 million at March 31, 2025.

Segment Financial Performance

• Sequoia Mortgage Banking: Net income of $25.8 million, with a 28% annualized GAAP ROE. Locked $4.0 billion of loans, a 73% increase from the previous quarter.
• CoreVest Mortgage Banking: Net income of $1.3 million, with a 9% annualized GAAP ROE and 20% non-GAAP EAD ROE. Funded $482 million of loans, a 4% decrease from the previous quarter.
• Redwood Investments: Net income of $22.9 million. Net income from Third-Party Portfolio Investments increased due to higher valuations from declining interest rates.

Operational Metrics

• Net Interest Income: $27.9 million for the quarter ended March 31, 2025, compared to $27.6 million for the quarter ended December 31, 2024.
• Total Non-Interest Income: $45.9 million for the quarter ended March 31, 2025, compared to $17.6 million for the quarter ended December 31, 2024.

Cash Flow

• Unrestricted Cash: $260 million as of March 31, 2025, up from $245 million in Q4’24.

Outlook / Guidance

Redwood Trust plans to use its solid capital footing to continue providing class-leading service to its origination and sponsor networks, with the objective of further growing market share as the year progresses. The company remains focused on migrating capital towards its operating platforms to execute further on its business plans and grow its earnings profile. The company anticipates growth in mortgage banking volumes and earnings, driven by strategic priorities and capital deployment opportunities. It targets annualized non-GAAP EAD returns on equity and estimates potential earnings from embedded discounts in the Redwood Investments segment.