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Mar 31, 2022
Redwood Trust Q1 2022 Earnings Report
Redwood Trust reported financial results for Q1 2022, demonstrating resilience amidst market volatility.
Key Takeaways
Redwood Trust reported a net income of $31 million, translating to $0.24 per diluted common share, and an annualized return on equity of 9%. The company's book value per common share was $12.01. Redwood funded a record $920 million in business purpose loans and locked $2.6 billion of jumbo residential loans.
GAAP net income was $31 million, or $0.24 per diluted common share.
Book value per common share was $12.01 at March 31, 2022.
A record $920 million in business purpose loans were funded, up 25% from the previous quarter.
Locked $2.6 billion of jumbo residential loans.
Forward Guidance
Redwood expects to use its strong positioning more aggressively as attractive investment opportunities arise, focusing on capital preservation and long-term value creation.
Positive Outlook
- Positioning Redwood for new chapters of growth.
- Diversified nature of our balanced business model.
- Quality of our investment holdings.
- Mortgage banking platforms remaining a clear differentiator.
- Distribution capabilities remaining a clear differentiator.
Challenges Ahead
- Extreme global market volatility.
- Geopolitical volatility.
- Increased rate volatility driving higher hedging costs.
- Wider spreads negatively impacting securitization executions.
- Wider spreads negatively impacting whole loan executions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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