Exhibit 99.1
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REDWOOD TRUST REPORTS FIRST QUARTER 2021 FINANCIAL RESULTS

MILL VALLEY, CA – Wednesday, April 28, 2021 – Redwood Trust, Inc. (NYSE:RWT), a leader in expanding access to housing for homebuyers and renters, today reported its financial results for the quarter ended March 31, 2021.
Key Financial Results and Metrics
GAAP net income was $97 million, or $0.72 per diluted common share
GAAP book value per common share was $10.76 at March 31, 2021
Economic return on book value(1) of 10%
Recourse leverage ratio(2) of 1.9x at March 31, 2021
Declared and paid a regular quarterly dividend of $0.16 per common share for the first quarter

Operating Business Highlights
Residential Lending
Locked a record $4.6 billion(3) of jumbo residential loans, up 22% from the fourth quarter of 2020; loan purchase commitments were $3.5 billion(4), up 41% from the fourth quarter of 2020
Lock mix(3) was approximately 38% purchase money loans and 62% refinancing; 95% Select loans and 5% Choice loans
Loan pipeline at March 31, 2021 included $3.3 billion of loans identified for purchase, up 7% from the fourth quarter of 2020
Purchased $3.1 billion of jumbo loans and sold $1.4 billion of whole loans
Completed two securitizations backed by $876 million of Select jumbo loans, in aggregate
Exercised call options on three Sequoia securitizations, acquiring $19 million of jumbo loans in March and $56 million in April
As of March 31, 2021, funded $274 million of residential loan purchases through "Rapid Funding" since inception, a proprietary technology-enabled program that significantly accelerates purchase timelines for qualified originators







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(1)    Economic return on book value is based on the period change in GAAP book value per common share plus dividends declared per common share in the period.
(2)    Recourse leverage ratio is defined as recourse debt at Redwood divided by tangible stockholders' equity. Recourse debt excludes $7.2 billion of consolidated securitization debt (ABS issued and servicer advance financing) and other debt that is non-recourse to Redwood, and tangible stockholders' equity excludes $53 million of intangible assets.
(3)    Does not account for potential fallout from pipeline that typically occurs through the lending process.
(4)    Includes estimated potential fallout from locked pipeline that typically occurs through the lending process.

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Business Purpose Lending
Originated $386 million in business purpose loans, down 14% from the seasonally high fourth quarter of 2020, including $253 million of single-family rental (SFR) loans and $133 million of bridge loans; bridge loan volume increased 33% from the fourth quarter of 2020
Approximately 33% of SFR origination volume in the first quarter was generated from borrowers that previously had a bridge loan with CoreVest and 71% of total origination volumes were from repeat borrowers
Completed the ramp-up on CAFL 2020-P1(5), providing $200 million in financing for single-family rental loans including the transfer of $158 million of SFR loans in the first quarter

Other Company Highlights
During the quarter, the fair value of the securities investment portfolio increased 5%
Expanded BPL pipeline opportunity through a minority preferred equity investment in Churchill Finance, a vertically-integrated real estate finance company

Technology Updates
Launched RWT Horizons, a venture investment strategy focused on early and mid-stage companies driving innovation in financial and real estate technology, and digital infrastructure
Initial capital allocation of $25 million expected to grow over time    
Made first investments in three technology companies, two focused on the residential rental market and one focused on the digitization of the mortgage ecosystem through blockchain
Onboarded majority of active Sequoia securitizations (aggregate notional value at issuance of $17.3 billion) onto the dv01 capital markets technology platform to provide investors secure, real-time data and transparency on the underlying loan performance of these securitizations
Introduced Rapid Funding+, which includes additional workflow enhancements that enable more customized funding schedules and enables the program to be offered to an expanded group of loan sellers
Launched pilot of Redwood Live, an app-based tool designed to give loan sellers visibility into the underwriting process with live status updates for each of their loans

"Our first quarter results demonstrated to shareholders the outstanding earnings potential of our operating platforms, complemented by continued value appreciation across our portfolio. As the economy recovers and home prices reach new highs, our role in providing access to quality housing has never been more important. The durability and diversification of our business model puts us in pole position to address consumer and investor needs for quality access to housing," said Chris Abate, Chief Executive Officer of Redwood Trust.

“We continue to make significant progress in our technology roadmap, through both our home-grown initiatives and strategic partnerships," continued Abate. “We are on a path to disrupt the mortgage finance landscape with innovative solutions that can help all stakeholders, most importantly non-agency borrowers. With an engaged and talented workforce, emerging regulatory shifts and strong competitive positioning, we’re excited about the role Redwood will play in the evolution of housing finance.”


First Quarter 2021 Redwood Review Available Online
A further discussion of Redwood's business and financial results is included in the first quarter 2021 Redwood Review, which is available within the “Financials-Redwood Review” section on the Company’s investor relations website at ir.redwoodtrust.com.
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(5)    Single investor transaction.
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REDWOOD TRUST, INC.
Financial PerformanceThree Months Ended
($ in millions, except per share data)3/31/202112/31/20203/31/2020
GAAP net income (loss)$97 $54 $(943)
GAAP net income (loss) per diluted common share$0.72 $0.42 $(8.28)
REIT taxable income (estimated)$10 $$38 
REIT taxable income per share (estimated)$0.09 $0.05 $0.33 
GAAP book value per share$10.76 $9.91 $6.32 
Dividends per common share$0.16 $0.14 $0.32 

Conference Call and Webcast
Redwood will host an earnings call today, April 28, 2021, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss its first quarter 2021 financial results. The number to dial in order to listen to the conference call is 1-877-300-8521 in the U.S. and Canada. International callers must dial 1-412-317-6026. A replay of the call will be available through midnight on May 12, 2021, and can be accessed by dialing 1-844-512-2921 in the U.S. and Canada or 1-412-317-6671 internationally and entering access code #101555090.
The conference call will be webcast live in listen-only mode through the Events and Presentations section of Redwood Trust's Investor Relations website at https://ir.redwoodtrust.com/events-and-presentations/events. To listen to the webcast, please go to Redwood's 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. Redwood plans to file its Quarterly Report on Form 10-Q with the Securities and Exchange Commission by Monday, May 10, 2021, and also make it available on Redwood’s website.
About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms; whole-loan distribution activities; and our publicly-traded shares. Our consolidated investment portfolio has evolved to incorporate a diverse mix of residential, business purpose and multifamily investments. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. Since going public in 1994, we have managed our business through several cycles, built a track record of innovation, and a best-in-class reputation for service and a common-sense approach to credit investing. Redwood Trust is internally managed, and structured as a real estate investment trust (“REIT”) for tax purposes. For more information about Redwood, please visit our website at www.redwoodtrust.com or connect with us on LinkedIn, Twitter, or Facebook.


Forward-Looking Statements:  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 the amount of residential mortgage loans that we identified for purchase during the first quarter of 2021 and at March 31, 2021, and expected fallout and the corresponding volume of residential mortgage loans expected to be available for purchase, our expectation to increase the capital allocation to RWT Horizons over time, our estimates of 2020 REIT taxable income, and the expected timing for the filing of Redwood's Quarterly Report on Form 10-Q. Forward-looking statements involve numerous risks and uncertainties. Redwood's actual results may differ from Redwood's 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 Annual Report on Form 10-K for the year ended December 31, 2020 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.
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REDWOOD TRUST, INC.
Consolidated Income Statements (1)
Three Months Ended
($ in millions, except share and per share data)3/31/2112/31/209/30/206/30/203/31/20
Interest income$128 $122 $122 $130 $198 
Interest expense(103)(98)(100)(103)(147)
Net interest income26 24 22 27 51 
Non-interest income (loss)
Mortgage banking activities, net83 54 59 (6)(29)
Investment fair value changes, net45 23 107 152 (871)
Other income— — 
Realized gains, net— 26 
Total non-interest income (loss), net134 77 167 173 (893)
General and administrative expenses(44)(30)(28)(29)(29)
Loan acquisition costs(4)(3)(2)(2)(4)
Other expenses(4)(4)(8)(5)(91)
(Provision for) benefit from income taxes(12)(8)(9)— 22 
Net income (loss)$97 $54 $142 $165 $(943)
Weighted average diluted shares (thousands) (2)
141,039 140,641 141,970 147,099 114,077 
Diluted earnings (loss) per common share$0.72 $0.42 $1.02 $1.00 $(8.28)
Regular dividends declared per common share$0.16 $0.14 $0.14 $0.125 $0.32 
(1)Certain totals may not foot due to rounding.
(2)In the periods presented above, excluding the first quarter of 2020, weighted average diluted shares included shares from the assumed conversion of our convertible and/or exchangeable debt in accordance with GAAP diluted EPS provisions. Actual shares outstanding at March 31, 2021, December 31, 2020, September 30, 2020, June 30, 2020, and March 31, 2020 were 112,999, 112,090, 111,904, 114,940, and 114,838, respectively.











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REDWOOD TRUST, INC.
Consolidated Balance Sheets (1)
($ in millions, except share and per share data)3/31/2112/31/209/30/206/30/203/31/20
Residential loans$4,702 $4,249 $4,495 $4,534 $6,711 
Business purpose loans4,172 4,136 3,956 3,782 3,464 
Multifamily loans 490 492 491 489 470 
Real estate securities364 344 351 316 293 
Other investments323 348 385 430 446 
Cash and cash equivalents426 461 451 529 378 
Other assets420 324 273 281 538 
Total assets$10,897 $10,355 $10,402 $10,362 $12,301 
Short-term debt$1,254 $523 $483 $663 $2,342 
Other liabilities317 195 158 168 318 
Asset-backed securities issued6,672 7,101 7,172 6,856 6,462 
Long-term debt, net1,438 1,425 1,536 1,738 2,454 
Total liabilities9,681 9,244 9,349 9,425 11,576 
Stockholders' equity1,216 1,111 1,053 937 725 
Total liabilities and equity$10,897 $10,355 $10,402 $10,362 $12,301 
Shares outstanding at period end (thousands)112,999 112,090 111,904 114,940 114,838 
GAAP book value per share$10.76 $9.91 $9.41 $8.15 $6.32 
(1)Certain totals may not foot due to rounding.



CONTACTS
Lisa M. Hartman
SVP, Head of Investor Relations
Phone: 866-269-4976
Email: investorrelations@redwoodtrust.com
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