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Redwood Trust Reports Second Quarter 2015 Results

Wednesday, August 05, 2015

MILL VALLEY, Calif., Aug. 5, 2015 /PRNewswire/ -- Redwood Trust, Inc. (NYSE:RWT) today reported net income for the second quarter of 2015 of $27 million, or $0.31 per fully diluted share. This compares to net income of $15 million, or $0.16 per fully diluted share, for the first quarter of 2015 and net income of $16 million, or $0.18 per fully diluted share, for the second quarter of 2014.

Redwood also reported estimated REIT taxable income of $18 million, or $0.21 per share, for the second quarter of 2015. This compares to estimated REIT taxable income of $15 million, or $0.18 per share, for the first quarter of 2015 and estimated REIT taxable income of $14 million, or $0.17 per share, for the second quarter of 2014.

At June 30, 2015, Redwood reported a book value per share of $14.96, as compared to $15.01 at March 31, 2015, and $15.03 at June 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 Monday, August 10, 2015, and make it available on Redwood's website.

Redwood will host an earnings call today, August 5, 2015, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time to discuss its second quarter 2015 financial results. The number to dial in order to listen to the conference call is 1-888-656-7435 in the U.S. and Canada. International callers must dial 1-913-312-1446. Callers should reference call ID #1838733. A replay of the call will be available through midnight on August 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 #1838733. 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)

Second


First


Fourth


Third


Second

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

Quarter


Quarter


Quarter


Quarter


Quarter


2015


2015


2014


2014


2014
















Interest income

$

63


$

64


$

65


$

63


$

58

Interest expense


(23)



(24)



(24)



(23)



(21)

Net interest income


40



40



41



40



37

(Provision for) reversal of provision for loan losses


-



-



(2)



2



-

Net interest income after provision


40



40



40



42



37

Noninterest income















  Mortgage banking and investment activities, net


6



1



15



14



2

  MSR income (loss), net


1



(11)



(9)



6



(2)

  Other income


1



1



-



2



-

  Realized gains, net


6



4



5



9



1

  Total noninterest income (loss)


14



(5)



11



31



1

Operating expenses 


(25)



(25)



(26)



(21)



(22)

(Provision for) benefit from income taxes


(2)



5



3



(5)



-

Net income

$

27


$

15


$

27


$

45


$

16































Weighted average diluted shares (thousands)


94,950



85,622



85,384


96,956


85,033

Diluted earnings per share

$

0.31


$

0.16


$

0.31


$

0.50


$

0.18

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 data)


Six Months Ended June 30,



2015


2014








Interest income


$

127


$

113

Interest expense



(47)



(40)

Net interest income



80



73

Provision for loan losses



-



(1)

Net interest income after provision



80



72

Noninterest income







   Mortgage banking and investment activities, net



6



(4)

   MSR income (loss), net



(10)



(1)

   Other income



2



-

   Realized gains, net



11



2

  Total noninterest income (loss)



9



(3)

Operating expenses 



(50)



(42)

Other expenses



-



-

Benefit from income taxes



3



2

Net income


$

42


$

28







Average diluted shares (thousands)


85,474


84,994

Diluted earnings per share


$

0.47


$

0.32

Regular dividends declared per common share


$

0.56


$

0.56








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



 

REDWOOD TRUST, INC.










































Consolidated Balance Sheets (1)


30-Jun


31-Mar


31-Dec


30-Sep


30-Jun

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

2015


2015


2014


2014


2014

















Residential loans


$

3,286


$

3,400


$

3,399


$

3,288


$

2,724

Commercial loans



551



460



567



498



469

Real estate securities



1,158



1,285



1,379



1,395



1,845

Mortgage servicing rights



168



120



139



135



71

Cash and cash equivalents



226



304



270



150



157

Other assets



206



247



165



146



112

Total Assets


$

5,596


$

5,816


$

5,919


$

5,612


$

5,379

















Short-term debt 


$

1,367


$

1,502


$

1,794


$

1,888


$

1,718

Other liabilities



123



153



129



104



97

Asset-backed securities issued



1,262



1,353



1,545



1,656



1,768

Long-term debt 



1,579



1,551



1,195



697



547

Total liabilities  



4,331



4,559



4,663



4,345



4,130

















Stockholders' equity 



1,265



1,257



1,256



1,267



1,249

















Total Liabilities and Equity


$

5,596


$

5,816


$

5,919


$

5,612


$

5,379

































Shares outstanding at period end (thousands)


84,552



83,749



83,443



83,284



83,080

GAAP book value per share


$

14.96


$

15.01


$

15.05


$

15.21


$

15.03

















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






 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/redwood-trust-reports-second-quarter-2015-results-300124399.html

SOURCE Redwood Trust, Inc.

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