Redwood Trust Reports Fourth Quarter 2014 Results

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MILL VALLEY, Calif., Feb. 23, 2015  /PRNewswire/ -- Redwood Trust, Inc. (NYSE:RWT) today reported net income for the fourth quarter of 2014 of $27 million, or $0.31 per fully diluted share. This compares to net income of $45 million, or $0.50 per fully diluted share, for the third quarter of 2014 and net income of $25 million, or $0.29 per fully diluted share, for the fourth quarter of 2013.

Redwood also reported estimated REIT taxable income of $16 million, or $0.19 per share, for the fourth quarter of 2014. This compares to estimated REIT taxable income of $18 million, or $0.21 per share, for the third quarter of 2014 and REIT taxable income of $16 million, or $0.20 per share, for the fourth quarter of 2013. 

At December 31, 2014, Redwood reported a book value per share of $15.05, as compared to $15.21 at September 30, 2014, and $15.10 at December 31, 2013.

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 Annual Report on Form 10-K with eXtensible Business Reporting Language (XBRL) tags, Redwood plans to file this Annual Report with the Securities and Exchange Commission by Monday, March 2, 2015, and make it available on Redwood's website.

Redwood will host an earnings call today, February 23, 2015, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss its fourth quarter 2014 financial results. The number to dial in order to listen to the conference call is 1-888-244-2459 in the U.S. and Canada. International callers must dial 1-913-312-0975. Callers should reference call ID #8227877. A replay of the call will be available through midnight on March 9, 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 #8227877. 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 Annual Report on Form 10-K. 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)

Fourth

Third

Second

First

Fourth

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

Quarter

Quarter

Quarter

Quarter

Quarter


2014

2014

2014

2014

2013
















Interest income

$

65

$

63

$

58

$

55

$

57

Interest expense

(24)

(23)

(21)

(19)

(20)

Net interest income

41

40

37

36

38

(Provision) reversal of provision for loan losses

(2)

2

-

(1)

(4)

Net interest income after provision

40

42

37

35

34

Noninterest income














   Mortgage banking activities

11

18

6

(1)

17

   MSR income

(9)

6

(2)

1

6

   Other market valuation adjustments

4

(4)

(4)

(6)

1

   Realized gains, net

5

9

1

1

2

   Total noninterest income (loss), net

11

29

1

(5)

25

Operating expenses 

(26)

(21)

(22)

(20)

(20)

Other income (expense)

-

2

-

-

(12)

Benefit from (provision for) income taxes

3

(5)

-

2

(2)

Net income

$

27

$

45

$

16

$

12

$

25
































Average diluted shares (thousands)

85,384

96,956

85,033

84,941

84,395

Diluted earnings per share

$

0.31

$

0.50

$

0.18

$

0.14

$

0.29

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)

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

Years Ended December 31,


2014

2013







Interest income

$

242

$

226

Interest expense

(87)

(81)

Net interest income

155

145

Provision for loan losses

(1)

(5)

Net interest income after provision

154

140

Noninterest income





   Mortgage banking activities

35

102

   MSR income

(4)

20

   Other market valuation adjustments

(10)

(6)

   Realized gains, net

15

25

    Total noninterest income, net

36

142

Operating expenses 

(90)

(87)

Other income (expense)

2

(12)

Provision for income taxes

(1)

(11)

Net income

$

101

$

173






Average diluted shares (thousands)

85,099

93,695

Diluted earnings per share

$

1.15

$

1.94

Regular dividends declared per common share

$

1.12

$

1.12







(1) Certain totals may not foot due to rounding.


 

REDWOOD TRUST, INC.














































Consolidated Balance Sheets (1)

31-Dec

30-Sep

30-Jun

31-Mar

31-Dec

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

2014

2014

2014

2014

2013

















Residential loans

$

3,399

$

3,288

$

2,724

$

2,465

$

2,166

Commercial loans

567

498

469

491

432

Real estate securities

1,379

1,395

1,845

1,743

1,683

Mortgage servicing rights

139

135

71

65

65

Cash and cash equivalents

270

150

157

150

173

Other assets

165

146

112

93

89

Total Assets

$

5,919

$

5,612

$

5,379

$

5,007

$

4,609

















Short-term debt 

$

1,794

$

1,888

$

1,718

$

1,289

$

863

Other liabilities

129

104

97

100

81

Asset-backed securities issued

1,545

1,656

1,768

1,854

1,943

Long-term debt 

1,195

697

547

513

476

Total liabilities  

4,663

4,345

4,130

3,756

3,363

















Stockholders' equity 

1,256

1,267

1,249

1,251

1,246

















Total Liabilities and Equity

$

5,919

$

5,612

$

5,379

$

5,007

$

4,609


































Shares outstanding at period end (thousands)

83,443

83,284

83,080

82,620

82,505

GAAP book value per share

$

15.05

$

15.21

$

15.03

$

15.14

$

15.10

















(1) Certain totals may not foot due to rounding.








 

 

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SOURCE Redwood Trust, Inc.

Released February 23, 2015