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Sep 30, 2020
Redwood Trust Q3 2020 Earnings Report
Reported financial results for the quarter ended September 30, 2020.
Key Takeaways
Redwood Trust reported a GAAP net income of $142 million, or $1.02 per diluted common share, and an economic return on book value of 17%. The company's unrestricted cash balance was $451 million, and the total recourse leverage ratio was 1.4x.
GAAP net income was $142 million, or $1.02 per diluted common share
GAAP book value per common share was $9.41 at September 30, 2020
Economic return on book value of 17%
Unrestricted cash balance of $451 million at September 30, 2020
Forward Guidance
Redwood is optimistic that they will end the year on a high note and believe they are well positioned to take market share in the coming quarters.
Positive Outlook
- Record-breaking results for both Select residential loan locks
- Record-breaking results for business purpose lending earnings
- The secular trends supporting our housing thesis are intact and accelerating with a nationwide push toward single-family housing
- Strong demand for loans
- New technological initiatives
Challenges Ahead
- Expected volatility through the remainder of 2020
- Potential fallout from pipeline that typically occurs through the lending process
- Numerous risks and uncertainties
- Redwood's actual results may differ from Redwood's beliefs, expectations, estimates, and projections
Historical Earnings Impact
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Avg. Return Before/After Earnings
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