Redwood Trust Reports Second Quarter 2015 Results

Aug 05, 2015, 16:05 ET from Redwood Trust, Inc.

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.

 

SOURCE Redwood Trust, Inc.



RELATED LINKS

http://www.redwoodtrust.com