Redwood Trust Reports Third Quarter 2015 Results

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MILL VALLEY, Calif., Nov. 5, 2015 /PRNewswire/ -- Redwood Trust, Inc. (NYSE:RWT) today reported net income for the third quarter of 2015 of $19 million, or $0.22 per fully diluted share. This compares to net income of $27 million, or $0.31 per fully diluted share, for the second quarter of 2015 and net income of $45 million, or $0.50 per fully diluted share, for the third quarter of 2014.

Redwood also reported estimated REIT taxable income of $24 million, or $0.29 per share, for the third quarter of 2015. This compares to estimated REIT taxable income of $18 million, or $0.21 per share, for the second quarter of 2015 and estimated REIT taxable income of $18 million, or $0.21 per share, for the third quarter of 2014. 

At September 30, 2015, Redwood reported a book value per share of $14.69, as compared to $14.96 at June 30, 2015, and $15.21 at September 30, 2014.

Additional information on Redwood's business, financial results, and taxable income can be found in The Redwood Review, a quarterly publication available on Redwood's website at www.redwoodtrust.com. In order to complete the formatting of its Quarterly Report on Form 10-Q with eXtensible Business Reporting Language (XBRL) tags, Redwood plans to file this Quarterly Report with the Securities and Exchange Commission by Friday, November 6, 2015, and make it available on Redwood's website.

Redwood will host an earnings call today, November 5, 2015, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss its third quarter 2015 financial results. The number to dial in order to listen to the conference call is 1-888-500-6948 in the U.S. and Canada. International callers must dial 1-719-785-9446. Callers should reference call ID #911519. A replay of the call will be available through midnight on November 19, 2015, and can be accessed by dialing 1-877-870-5176 in the U.S. and Canada or 1-858-384-5517 internationally and entering access code #911519. Live audio of the conference call will also be accessible over the internet at www.redwoodtrust.com, where a link to the call will be posted on Redwood's home page. To listen to the call over the internet, go to the Redwood website at least 15 minutes before the call to register and to download and install any needed audio software. An audio replay of the call will also be available on Redwood's website following the call.

Cautionary Statement:  This press release and the related conference call contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to estimates of taxable income and the filing of our Quarterly Report on Form 10-Q. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "expect," "believe," "intend," "seek," "plan" and similar expressions or their negative forms, or by references to strategy, plans, or intentions. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our most recent Annual Report on Form 10-K under the caption "Risk Factors." Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected may be described from time to time in reports we file with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

 

REDWOOD TRUST, INC.


















Consolidated Income Statements (1)

Third

Second

First

Fourth

Third

($ in millions, except share and per share data)

Quarter

Quarter

Quarter

Quarter

Quarter


2015

2015

2015

2014

2014











Interest income

$

63

$

63

$

64

$

65

$

63

Interest expense

(24)

(23)

(24)

(24)

(23)

Net interest income

40

40

40

41

40

(Provision for) reversal of provision for loan losses

—

—

—

(2)

2

Net interest income after provision

40

40

40

40

42

Non-interest income (loss)









Mortgage banking and investment activities, net

(13)

6

1

15

14

MSR income (loss), net

4

1

(11)

(9)

6

Other income

—

1

1

—

2

Realized gains, net

6

6

4

5

9

Total non-interest income (loss)

(3)

14

(5)

11

30

Operating expenses

(24)

(25)

(25)

(26)

(21)

Benefit from (provision for) income taxes

7

(2)

5

3

(5)

Net income

$

19

$

27

$

15

$

27

$

45











Weighted average diluted shares (thousands)

85,075

94,950

85,622

85,384

96,956

Diluted earnings per share

$

0.22

$

0.31

$

0.16

$

0.31

$

0.50

Regular dividends declared per common share

$

0.28

$

0.28

$

0.28

$

0.28

$

0.28











(1) Certain totals may not foot due to rounding















REDWOOD TRUST, INC.













Consolidated Income Statements (1)

Nine Months Ended September 30,

($ in millions, except share and per share data)

2015

2014





Interest income

$

191

$

177

Interest expense

(71)

(64)

Net interest income

120

113

Reversal of provision for loan losses

—

1

Net interest income after provision

120

114

Non-interest income



Mortgage banking and investment activities, net

(6)

10

MSR income (loss), net

(7)

5

Other income

2

2

Realized gains, net

16

11

Total non-interest income

6

27

Operating expenses

(75)

(64)

Benefit from (provision for) income taxes

10

(4)

Net income

$

61

$

73





Weighted average diluted shares (thousands)

85,339

85,031

Diluted earnings per share

$

0.69

$

0.84

Regular dividends declared per common share

$

0.84

$

0.84





(1) Certain totals may not foot due to rounding








 

REDWOOD TRUST, INC.


















Consolidated Balance Sheets (1)

30-Sep

30-Jun

31-Mar

31-Dec

30-Sep

($ in millions, except share and per share data)

2015

2015

2015

2014

2014






















Residential loans

$

4,037

$

3,286

$

3,400

$

3,399

$

3,288

Commercial loans

468

551

460

567

498

Real estate securities

1,085

1,158

1,285

1,379

1,395

Mortgage servicing rights

163

168

120

139

135

Cash and cash equivalents

235

226

304

270

150

Other assets

281

206

247

165

146

Total assets

$

6,269

$

5,596

$

5,816

$

5,919

$

5,612











Short-term debt

$

1,873

$

1,367

$

1,502

$

1,794

$

1,888

Other liabilities

189

123

153

129

104

Asset-backed securities issued

1,179

1,262

1,353

1,545

1,656

Long-term debt

1,822

1,579

1,551

1,195

697

Total liabilities

5,062

4,331

4,559

4,663

4,345











Stockholders' equity

1,207

1,265

1,257

1,256

1,267











Total liabilities and equity

$

6,269

$

5,596

$

5,816

$

5,919

$

5,612











Shares outstanding at period end (thousands)

82,125

84,552

83,749

83,443

83,284

GAAP book value per share

$

14.69

$

14.96

$

15.01

$

15.05

$

15.21











(1) Certain totals may not foot due to rounding


 

 

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SOURCE Redwood Trust, Inc.

Released November 5, 2015