Redwood Trust, Inc. · NYSE:RWT
Redwood Trust — Q3 2026 Earnings Presentation
47 slides from Redwood Trust's earnings presentation, Nov 3, 2026
Slide 1: Q3 2026 Redwood Review
R E D W O O D T R U S T . C O M Q3 2026 Redwood Review November 3, 2026 Exhibit 99.3
Slide 2: Cautionary Statement/Forward-Looking Statements
2 Cautionary Statement/ Forward-Looking Statements This presentation contains forward-looking statements, including statements regarding our 2026 and 2027 forward outlook and strategic priorities, key drivers to increase earnings, book value, mortgage banking volumes and market share and statements
Slide 3: Redwood Trust is the Leading Non-Agency Real Estate Platform
3 Redwood Trust is the Leading Non-Agency Real Estate Platform Through our operating businesses and related investments, we provide liquidity to parts of the housing market not well-served by government programs INTRODUCTION Correspondent Non-QM Platform Correspondent Jumbo Platform Direct & Third-P
Slide 4: Redwood Connects Housing Finance with the Broader Capital Markets
4 Banks Non-Banks$ ~170 independent mortgage bank relationships Customers ~$27B Direct Originations* ~$180B Loan Purchases* Private markets ~$4B Loans sold to JV partners* Capital markets 220+ Securitizations Issued* Redwood Connects Housing Finance with the Broader Capital Markets Loans sold to fin
Slide 5: Planned Transition to a C-Corporation
5 Planned Transition to a C-Corporation
Slide 6: An Evolution to Support Our Next Phase of Growth
6 An Evolution to Support Our Next Phase of Growth Today’s announcements advance our next chapter and build on our ongoing strategic transition CORPORATE STRUCTURE CAPITAL ALLOCATION Planned Transition to a C-Corporation Planned Preferred Stock Exchange Offer Align our structure with our mortgage ba
Slide 7: A Strategic Transition is the Next Logical Step in Value Creation
7 7 WHAT IT MEANS FOR SHAREHOLDERS ▪ Strengthens the Balance Sheet ▪ Provides flexibility to retain and reinvest more earnings, prioritizing debt reduction and long-term book value growth A Strategic Transition is the Next Logical Step in Value Creation for Shareholders Detailed Endnotes are include
Slide 8: Our Mortgage Banking Business Has Outgrown the Traditional REIT Structure
8 Our Mortgage Banking Business Has Outgrown the Traditional REIT Structure ($3) $114 $155 ($91) Mortgage Banking Redwood Investments and Legacy Investments FY'23 Q3'26 LTM $5.1 $10.7 $22.7 $30.4 2023 2024 2025 Q3'26 LTM Sequoia Aspire CoreVest Q3 '26 LTM MORTGAGE BANKING PRODUCTION BY PLATFORM(1) C
Slide 9: C-Corporation Transition Creates a Clearer Path to Book Value Growth
9 Our C-Corporation Transition Creates a Clearer Path to Book Value Growth Beginning in 2027 BOOK VALUE PER SHARE ESTIMATED DEFERRED TAX ASSET BENEFIT(1) $0.73 - $0.77 $6.56 $7.29 - $7.33 Q3'26 Book Value Estimated DTA recognition benefit from NOLs Pro forma Q3'26 Book Value ▪ Since the start of 202
Slide 10: C-Corporation Transition Expected to Lower Our Cost of Capital
10 C-Corporation Transition Expected to Lower Our Cost of Capital Over Time 150 – 200 bps Illustrative gap in market yields(1) Broader investor base Potential access to institutional high-yield and other investors beyond traditional mortgage REIT buyers Stronger credit profile Retained earnings buil
Slide 11: Q3'26 Business Update
11 Q3’26 Business Update
Slide 12: Third Quarter 2026 Financial Performance
12 Third Quarter 2026 Financial Performance Detailed Endnotes are included at the end of this presentation. *Non-GAAP Core Segments EAD EPS and Non-GAAP Core Segments EAD ROE are non-GAAP measures. See “Non-GAAP Financial Measures” slides for additional information. ($0.39) Consolidated GAAP EPS $0.
Slide 13: Third Quarter 2026 Financial Performance (Continued)
13 Legacy Investments 7% Mortgage Banking Platforms 38% Redwood Investments 55% $0.18 ($0.02) ($0.20) Non-GAAP Core Segments EAD Non-GAAP Legacy Investment Segments EAD Non-GAAP Consolidated EAD* Third Quarter 2026 Financial Performance (Continued) Detailed Endnotes are included at the end of this p
Slide 14: Core Segments Remained Resilient Amid Increased Volatility
14 1.05% 1.10% 1.15% 1.20% 1.25% 1.30% 1.35% 4.0% 4.3% 4.5% 4.8% 5.0% 5.3% 5.5% Core Segments Remained Resilient Amid Increased Volatility Q3’26 BOOK VALUE PER SHARE ROLL-FORWARD Jul Aug Sep 10-Year 5.29% TBA Basis 1.25% +82 bps 10-Year Q3’26 change Oct 10-YEAR TREASURY VS. TBA BASIS(1) $ per share
Slide 15: Legacy Loan Dispositions Are Accelerating
15 $527 $676 $785 Q3'26 Pro FormaQ2'26Q3'25 $241 $134 $123 Q3'25 Q2'26 Q3'26 Pro Forma Renovate / Build to Rent Multifamily / Term SAB / Other ▪ Legacy Investments resolutions create a meaningful opportunity to improve financial performance Legacy Loan Dispositions Are Accelerating Detailed Endnotes
Slide 16: Legacy Earnings Reflect Disposition-Related Marks
16 ($0.08) ($0.10) ($0.21) ($0.39) Net Interest Income & Other Portfolio Management Costs, Corporate Financing & Tax Investment FV Changes Legacy Inv EPS Legacy Earnings Reflect Disposition-Related Marks Q3’26 LEGACY INVESTMENTS SEGMENT EPS COMPONENTS(1) $ per share Detailed Endnotes are included at
Slide 17: Disciplined Risk Management Delivers Strong Returns Through Market Cycles
17 3.50 3.75 4.00 4.25 4.50 4.75 5.00 5.25 $1.0 $2.5 $4.0 $5.5 $7.0 $8.5 $10.0 Jun-24 Aug-24 Oct-24 Dec-24 Feb-25 Apr-25 Jun-25 Aug-25 Oct-25 Dec-25 Feb-26 Apr-26 Jun-26 Aug-26 Oct-26 Disciplined Risk Management Delivers Strong Returns Through Market Cycles 10-YEAR TREASURY YIELD VS. RWT MORTGAGE BA
Slide 18: Robust Securitization Activity with Over $20 Billion in Issuance YTD
18 $3.1 $3.3 $6.7 $6.6 $6.8 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Sequoia Aspire CoreVest Robust Securitization Activity with Over $20 Billion in Issuance YTD $ billions 12 Detailed Endnotes are included at the end of this presentation. +121% Increase in YoY Securitization Distributions(2) #1 Securitized Is
Slide 19: Proactive Pipeline Management Aligns with Market Conditions
19 $0.8 $3.1 $6.9 ($7.5) $2.5 Q2'26 Ending Loan Inventory Purchased / Funded Securitized / Sold / Transferred Q3'26 Ending Loan Inventory Q4'26 Unallocated Inventory MORTGAGE BANKING LOAN ACTIVITY(1) Proactive Pipeline Management Aligns with Market Conditions $ billions 75% Q2’26 inventory+ Q3’26 pu
Slide 20: Maintaining Expense Efficiency as Production Scales
20 0.88% 0.69% FY'25 Q3'26 YTD 7% 50% Total Expense Growth Total Volume Growth Detailed Endnotes are included at the end of this presentation. TOTAL VOLUME(1) AND EXPENSE CHANGE(2) (Q3’25-YTD vs. Q3’26-YTD) Maintaining Expense Efficiency as Production Scales TOTAL EXPENSE(2) AS % OF VOLUME(1) (Total
Slide 21: Sequoia / Aspire Joint Ventures Drive Accretive Capital Efficiency
21 Sequoia / Aspire Joint Ventures Drive Accretive Capital Efficiency CASH FREED UP FROM WAREHOUSE CAPITAL(1) ~$200 ~$140 ~$60 Redwood Only Redwood + JV Warehouse equity required Cash freed up ~$60 million of cash freed up by JV- directed volume (~30% less) (illustrative) LOWER CAPITAL NEEDED FOR RE
Slide 22: Leverage Associated with Fast-Turning Assets
22 Leverage Associated with Fast-Turning Assets SEGMENT RECOURSE COMPOSITION RECOURSE LEVERAGE RATIO(1) 15 AVERAGE DAYS ON BALANCE SHEET(2) 2.7x 2.5x 5.2x <35 Avg. Dwell Days >35 Avg. Dwell Days Total Growth in secured debt has been primarily driven by Mortgage Banking growth ▪ Rapid capital turnove
Slide 23: Improved Financing Terms Support Growth
23 6.4% 6.0% Q3'25 Q3'26 $6.1 $7.1 $2.0 $3.2 $8.1 $10.3 Q3'25 Q3'26 Improved Financing Terms Support Growth Detailed Endnotes are included at the end of this presentation. WAREHOUSE CAPACITY(1) COST OF FUNDS(1) $ billions Average warehouse financing costs improved vs prior year Renewed $7.1 billion
Slide 24: Sources of Capital to Drive Incremental Growth & Liability Management
24 Sources of Capital to Drive Incremental Growth & Liability Management SOURCES OF CAPITAL: CURRENT TO ILLUSTRATIVE PRO FORMA(1) ~$200 +$40-$60 +$70-$90 +$40-$50 $350-$400 Q3 '26 liquidity JV Activity Financing Optimization Further Legacy Dispositions Pro forma liquidity WHERE FREED UP CAPITAL CAN
Slide 25: RWT Horizons: Technology & AI Update Q3'26
25 RWT Horizons: Technology & AI Update Q3’26 ▪ Deployed agents in technology support and FP&A handling work that once required manual effort from staff and executives alike ▪ Delivered self-service data access to our Capital Markets Teams ▪ In the first nine months of 2026, our engineers surpassed
Slide 26: Horizons Investments Beginning to Realize Significant Value
26 Horizons Investments Beginning to Realize Significant Value *These investments were made through an investment in Frontiers Capital RWT HORIZONS PORTFOLIO HIGHLIGHTS Project Prometheus OTHER PORTFOLIO INVESTMENTS RWT Horizons wrote one of the first checks to Closinglock, recently acquired by Cert
Slide 27: Third Quarter 2026 Earnings & Segment Results
Third Quarter 2026 Earnings & Segment Results 21
Slide 28: Sequoia Q3'26 Performance Summary
28 Sequoia Q3’26 Performance Summary Detailed Endnotes are included at the end of this presentation. • $5.1 billion lock volume represents 40% Q3’26-YTD growth(1) • Q3’26 lock volume reflects a diversified mix including 36% non-fixed rate products • $5.8 billion of distribution activity across 10 se
Slide 29: Aspire Q3'26 Performance Summary
29 $1.2 $1.5 $1.6 $2.1 $1.1 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Aspire Q3’26 Performance Summary Detailed Endnotes are included at the end of this presentation. • Q3’26 lock volume of $1.1 billion(1) • Active network of over 165 sellers • Growing share of Flow purchases now represents ~88% of volume REDWO
Slide 30: CoreVest Q3'26 Performance Summary
30 0.92% 0.92% FY'25 Q3'YTD $207 $226 $226 $222 $178 $314 $234 $206 $188 $228 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 CoreVest Q3’26 Performance Summary Detailed Endnotes are included at the end of this presentation. • Q3’26 funded volume of $406 million • Maintained pipeline integrity throughout Q3’26 amid a
Slide 31: Redwood Investments Q3'26 Performance Summary
31 6.90% 6.68% 6.49% 6.38% 6.45% Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Servicing Investments 22% Bridge Securities Retained 5%Sequoia Securities Retained 67% Term Securities Retained 6% Redwood Investments Q3’26 Performance Summary INVESTMENTS SOURCED DIRECTLY FROM OUR OPERATING PLATFORMS • $67 million of c
Slide 32: Financial Results
Financial Results 28
Slide 33: Income Statement
33 Income Statement ($ in millions, except per share data) Detailed Endnotes are included at the end of this presentation.
Slide 34: Balance Sheet
34 Balance Sheet ($ in millions) Detailed Endnotes are included at the end of this presentation.
Slide 35: Capital Allocation Summary
35 Capital Allocation Summary ($ in millions) Detailed Endnotes are included at the end of this presentation.
Slide 36: Mortgage Banking Key Results
36 Mortgage Banking Key Results ($ in millions) *Return on Capital (“ROC”), EAD and EAD Return on Capital (“EAD ROC”) are non-GAAP measures. See “Non-GAAP Disclosures” slides for additional information. Detailed Endnotes are included at the end of this presentation.
Slide 37: Redwood Investments Key Results
37 Redwood Investments Key Results ($ in millions) *Return on Capital (“ROC”), EAD and EAD Return on Capital (“EAD ROC”) are non-GAAP measures. See “Non-GAAP Disclosures” slides for additional information.
Slide 38: Recourse Debt Scheduled Maturities
38 Recourse Debt Scheduled Maturities(1)(5) as of 9/30/2026 Recourse Debt Balances ($ in millions) Detailed Endnotes are included at the end of this presentation. $477 $1,964 $268 $143 $1,363 $0 $500 $1,000 $1,500 $2,000 $2,500 2026 2027 2028 2029 Beyond 2029 Warehouse Debt/Repo (Marginable) Warehou
Slide 39: Non-GAAP Financial Measures
Non-GAAP Financial Measures
Slide 40: Non-GAAP Financial Measures
40 Non-GAAP Financial Measures To supplement consolidated and segment financial information prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also provides the following non-GAAP measures: • Earnings Available for Distribution (“EAD”) • EAD
Slide 41: Reconciliation of GAAP to non-GAAP EAD – Third Quarter 2026
41 Non-GAAP Financial Measures (Continued) Reconciliation of GAAP to non-GAAP EAD – Third Quarter 2026(1)
Slide 42: Reconciliation of GAAP to non-GAAP EAD – Second Quarter 2026
42 Non-GAAP Financial Measures (Continued) Reconciliation of GAAP to non-GAAP EAD – Second Quarter 2026(1)
Slide 43: Non-GAAP Financial Measures (Continued)
43 $ in millions Non-GAAP Financial Measures (Continued) Footnotes: * Represents a non-GAAP financial measure. Refer to prior "Non-GAAP Financial Measures" section for additional information. 1. Certain totals may not foot due to rounding. 2. Allocation of Corporate Segment is based on the average c
Slide 44: Endnotes
Endnotes
Slide 45: Endnotes
45 ENDNOTES Slide 4 (Redwood Connects Housing Finance with the Broader Capital Markets) Source: Company financial data as of September 30, 2026, unless otherwise noted. 1. Inside Mortgage Finance top 100 Banks by asset size as of October 2026. Slide 7 (A Strategic Transition is the Next Logical Step
Slide 46: Endnotes (Continued)
46 ENDNOTES (Continued) Slide 36 (Appendix: Mortgage Banking Key Results) 1. Capital utilized for CoreVest operations does not include $28 million of platform premium. Slide 38 (Appendix: Recourse Debt Balances) 1. Non-marginable debt and marginable debt refer to whether such debt is subject to marg
Slide 47: Glossary of Terms
47 Glossary of Terms Term Definition Agency NOO Agency non-owner occupied ARM Adjustable rate mortgage bps Basis points CAFL® CoreVest securitization program CES Closed-end second liens DQ Delinquency DSCR Debt Service Coverage Ratio EAD Earnings available for distribution* EPS Earnings per share Ex