Redwood Trust, Inc. · NYSE:RWT
Redwood Trust — Q2 2026 Earnings Presentation
40 slides from Redwood Trust's earnings presentation, Jul 28, 2026
Slide 1: Q2 2026 Redwood Review
Q2 2026 Redwood Review July 28, 2026 RE D W OOD TR UST .COM
Slide 2: Cautionary Statement/Forward-Looking Statements
Cautionary Statement/ Forward-Looking Statements This presentation contains forward-looking statements, including statements Other risks, uncertainties, and factors that could cause actual results to differ regarding our 2026 forward outlook and strategic priorities, key drivers to increase material
Slide 3: Redwood Trust is the Leading Non-Agency Real Estate Platform
INTRODUCTION 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 Correspondent Correspondent Jumbo Platform Non-QM Platform Housing Investment
Slide 4: We are the Leading Alternative to the GSEs in the Private Sector
WHY REDWOOD? We are the Leading Alternative to the GSEs in the Private Sector FANNIE / FREDDIE REDWOOD TRUST Standard-bearer for mortgage Standard-bearer for private market liquidity market liquidity Governance framework Not an active GSE originator/ focused on prudent servicer profitability
Slide 5: Redwood's Market Leading Housing Platform
Redwood’s Market Leading Housing Platform 210+ With more issuance than any other bank or non-bank participant (not including GSEs), Redwood is the #1 ~334% Securitizations Non-Bank Distributor of Jumbo & Non-QM Loans(3) Total Across Products Shareholder Return including 25 in H1’26(1) Since Inceptio
Slide 6: Diverse Capital Base Supports Continued Growth
Diverse Capital Base Supports Continued Growth Joint venture partnerships provide more than $1.2 billion of dedicated strategic capital supporting REDWOOD TRUST’S each of our three operating platforms JOINT VENTURES + TOTAL CAPITAL(1) ANNUAL TOTAL VOLUME POTENTIAL(2) Serving markets and borrowers no
Slide 7: Joint Venture Partnerships Drive Higher Volume and Overall Returns
Joint Venture Partnerships Drive Higher Volume and Overall Returns Joint venture partnerships VOLUME PER $100 MILLION OF ESTIMATED RETURN ON ESTIMATED DAYS ON RWT CAPITAL CAPITAL INVESTED(1) BALANCE SHEET allow Redwood to distribute loans faster, reducing the amount of $18-$20 30%-35% Billion 30-35
Slide 8: Second Quarter 2026 Financial Performance
Second Quarter 2026 Financial Performance CONSOLIDATED EARNINGS AND RETURNS GAAP RETURNS • (1.3%) GAAP ROE ($0.03) (3.0%) • (0.6%) Total Economic Return (1) Consolidated GAAP EPS BVPS QoQ Change BOOK VALUE AND COMMON DIVIDEND • $6.90 Book Value Per Share $0.25 18.5% Non-GAAP Core Non-GAAP Core • $0.
Slide 9: Second Quarter 2026 Financial Performance (Continued)
Second Quarter 2026 Financial Performance (Continued) SEGMENT CAPITAL COMPOSITION NON-GAAP CORE SEGMENTS EAD PER SHARE $0.25 Legacy Mortgage Investments Banking 12% Platforms 40% $0.15 18.5% Core $1.7 Segments Billion represent 89% of total Non-GAAP Core Segments EAD ROE* ($0.11) capital Redwood Inv
Slide 10: Redeploying Capital From Legacy Investments Grows Earnings
Redeploying Capital From Legacy Investments Grows Earnings ESTIMATED RETURNS CAPITAL ALLOCATION TO LEGACY INVESTMENTS SEGMENT 20% to 25% Every $100 million of $523 redeployed capital could $459 63% add 200-400 basis points to company-wide ROE Reduction since Q2’25 $306 +30% $242 Return delta $195 -1
Slide 11: Strong Performance Amid Market Volatility
Strong Performance Amid Market Volatility 10-YEAR TREASURY VS. RWT MORTGAGE BANKING VOLUME(1) RWT MORTGAGE BANKING ROC* RWT MB Volume (LHS) 10-Year Treasury (RHS) $10.0 5.00 38% $8.5 4.75 33% $7.0 4.50 % percent $ billions $5.5 4.25 $8.5 $8.0 $4.0 $7.3 4.00 $6.8 $2.5 $4.5 3.75 $4.1 $1.0 3.50 Jan-25
Slide 12: Record Securitization Activity in 1H'26 – over $10 billion in issuance
Record Securitization Activity in 1H’26 – over $10 billion in issuance Securitization activity Year-to-Date: • 20 SEMT deals for a total issuance of $11.3 billion(1) • 3 SPIRE deals for a total issuance of $1.3 billion $6.7 $6.6 • 2 CAFL deals for a total issuance of over $500 million • $165 million
Slide 13: Continued Efficiency Gains as Production Scales
Continued Efficiency Gains as Production Scales TOTAL VOLUME(1) TOTAL EXPENSE(2) AND EXPENSE CHANGE(2) AS % OF VOLUME(1) (H2’25 vs. H1’26) (Total Expense / Volume) 17% 0.88% H1’26 volume outpaced 0.64% expense growth ~4x 4% ~28% Improvement Total Expense Growth Total Volume Growth FY'25 H1'26 13 Det
Slide 14: Leverage Associated with Fast Turning Assets
Leverage Associated with Fast Turning Assets Growth in secured debt has been primarily driven by Mortgage Banking growth • Rapid capital turnover across distribution channels accelerates deleveraging through cash generation • Loans on balance sheet for an average of 26 days as of June 2026(1) SEGMEN
Slide 15: Improved Financing Terms Support Growth
Improved Financing Terms Support Growth WAREHOUSE CAPACITY(1) SCHEDULED MATURITIES COST OF FUNDS(2) Renewed $4.4 billion of capacity since Q2’25 No corporate unsecured maturities for 5 quarters Average warehouse financing costs are essentially flat Secured Debt $7.2 Unsecured Debt 5.8% 5.7% $2.7 $5.
Slide 16: RWT Horizons: Compounding AI Efficiencies in Q2'26
RWT Horizons: Compounding AI Efficiencies in Q2’26 • Deployed AI-engines that deliver unified loan-level pricing and underwriting support functions across bulk and flow channels • Deployed AI-enabled automation lowering due diligence costs, and improving guideline analysis • Extended the unified tec
Slide 17: Partnering with AI Across the Ecosystem
Partnering with AI Across the Ecosystem An early-stage AI company from our existing portfolio priced an oversubscribed financing round that values our initial seed investment at approximately 27 times cost. NOTABLE INVESTMENTS IN AI START-UPS OTHER PORTFOLIO INVESTMENTS Project * * * Prometheus * Bu
Slide 18: Second Quarter 2026 Earnings & Segment Results
Second Quarter 2026 Earnings & Segment Results
Slide 19: Sequoia Q2'26 Performance Summary
Sequoia Q2’26 Performance Summary REDWOOD’S PRIME RESIDENTIAL QUARTER OVER QUARTER Q2’26 LOCK VOLUME CORRESPONDENT PLATFORM LOCK VOLUME(1) PRODUCT MIX(1) $6.5 Agency CES • $5.6 billion lock volume NOO 2% $5.6 11% represents 70% YoY growth and $5.3 $5.1 2nd highest quarterly volume(1) Med Pro • 30%+
Slide 20: Sequoia Q2'26 Performance Summary (Continued)
Sequoia Q2’26 Performance Summary (Continued) MARGIN AND COST GAIN ON SALE MARGIN(1) COST PER LOAN(2) HIGHLIGHTS 0.21% 1.41% • 0.92% gain on sale margin(1) 1.36% 1.13% 0.17% remained at the high-end Average of historical target range 0.99% 0.96% 0.92% • 0.17% cost per loan; 75bps to 18% improvement
Slide 21: Aspire Q2'26 Performance Summary
Aspire Q2’26 Performance Summary REDWOOD’S NON-QM QUARTER OVER QUARTER COST PER LOAN(2) CORRESPONDENT PLATFORM LOCK VOLUME(1) • Q2’26 lock volume of $2.1 billion(1) Expanded $2.1 DSCR 0.33% • Cost per loan of 0.27% in Q2’26 improved 10% QoQ(2) $1.6 $1.5 • Active network of over 150 sellers $1.2 31%
Slide 22: CoreVest Q2'26 Performance Summary
CoreVest Q2’26 Performance Summary REDWOOD’S HOUSING INVESTOR FUNDED VOLUMES NET COST TO ORIGINATE(1) LOAN PLATFORM Term/Bridge • Q2’26 funded volume of $410 million RTL/DSCR • Maintained pipeline integrity 0.92% throughout 1H’26 in a higher $509 $521 rate environment $460 0.87% $432 $410 • Launched
Slide 23: Redwood Investments Q2'26 Performance Summary
Redwood Investments Q2’26 Performance Summary INVESTMENTS SOURCED DIRECTLY FROM OUR OPERATING PLATFORMS • $72 million of capital deployed into retained investments created from second quarter securitization activity • GAAP net income of $0.7 million, an improvement of $9 million QoQ CAPITAL ALLOCATI
Slide 24: Legacy Investments Q2'26 Performance Summary
Legacy Investments CAPITAL ALLOCATION Q2’26 Performance HEI Summary 46% Legacy Bridge $195 & Term Loans million 54% HOUSING INVESTMENTS NO LONGER STRATEGIC TO OUR PLATFORM • Ongoing focus on reducing legacy portfolio through dispositions / resolutions QOQ 90 DAY+ LEGACY BRIDGE LOAN DELINQUENCIES • P
Slide 25: Financial Results
Financial Results
Slide 26: Income Statement
Income Statement ($ in millions, except per share data) 26 Detailed Endnotes are included at the end of this presentation.
Slide 27: Balance Sheet
Balance Sheet ($ in millions) 27 Detailed Endnotes are included at the end of this presentation.
Slide 28: Capital Allocation Summary
Capital Allocation Summary ($ in millions) 28 Detailed Endnotes are included at the end of this presentation.
Slide 29: Mortgage Banking Key Results
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. 29 Detailed Endnotes are included at the end of this presentation.
Slide 30: Redwood Investments Key Results
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. 30 Detailed Endnotes are included at the end of this presentation.
Slide 31: Recourse Debt Balances
Recourse Debt Balances ($ in millions) $2,500 Recourse $2,317 Warehouse Debt/Repo (Marginable) $2,000 Warehouse Debt/Repo Debt $1,500 Secured Term Scheduled Corporate Debt $1,000 $980 $632 Maturities(1)(5) $500 $143 $454 $ millions $0 2026 2027 2028 2029 Beyond 2029 31 Detailed Endnotes are included
Slide 32: Non-GAAP Disclosures
Non-GAAP Disclosures
Slide 33: Non-GAAP Disclosures
Non-GAAP Disclosures To supplement consolidated and segment financial information prepared and presented in Beginning in the first quarter of 2026, we revised our segment reporting to (i) present Aspire Mortgage accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also
Slide 34: Non-GAAP Disclosures (Continued)
Non-GAAP Disclosures (Continued) Reconciliation of GAAP to non-GAAP EAD – Second Quarter 2026 (1) 34 Detailed Endnotes are included at the end of this presentation.
Slide 35: Non-GAAP Disclosures (Continued)
Non-GAAP Disclosures (Continued) Reconciliation of GAAP to non-GAAP EAD – First Quarter 2026 (1) 35 Detailed Endnotes are included at the end of this presentation.
Slide 36: Non-GAAP Disclosures (Continued)
Non-GAAP Disclosures (Continued) Footnotes: 4. Allocation of Corporate Segment is based on the average capital utilized by the segment during the period, which represents management’s internal estimate of the average economic capital allocated 1. Certain totals may not foot due to rounding. to suppo
Slide 37: Endnotes
Endnotes
Slide 38: Endnotes
ENDNOTES Slide 5 (Redwood’s Market Leading Housing Platform) Slide 12 (Record Securitization Activity in 1H’26 – over $10 billion in issuance ) Slide 19 (Sequoia Q2’26 Performance Summary) Source: Company financial data as of June 30, 2026 unless otherwise noted. Market data Source: Company financia
Slide 39: Endnotes (Continued)
ENDNOTES (Continued) Slide 25 (Legacy Investments Q2’26 Performance Summary) Slide 30 (Appendix: Redwood Investments Key Results) Source: Company financial data as of June 30, 2026 unless otherwise noted. 1. EAD and EAD Return on Capital are non-GAAP measures that are also referred to as EAD and EA
Slide 40: Glossary of Terms
Glossary of Terms Term Definition Term Definition bps Basis points RTL Residential transitional loans CAFL® CoreVest securitization program CES Closed end second liens Residential Consumer (Sequoia) securitization SEMT® program DQ Delinquency SPIRE Aspire securitization program DSCR Debt Service Cov