Redwood Trust, Inc. · NYSE:RWT
Redwood Trust — Q1 2026 Earnings Presentation
41 slides from Redwood Trust's earnings presentation, Apr 29, 2026
Slide 1: Q1 2026 Redwood Review
Q1 2026 Redwood Review April 29, 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: Redwood Has a 30+ Year Track Record of Delivering Value
Redwood Has a 30+ Year Track Record of Delivering Value ~370% $2.6 200+ #1 $150+ Total billion Securitizations Non-Bank billion Shareholder Across Products Distributor of Cumulative Loans Funded / Return Since (including 11 in Jumbo & Non-QM Dividends Locked(3) Inception 1Q’26)(1) Loans(2) Since Inc
Slide 5: Record Securitization Activity in Q1'26
Record Securitization Activity in Q1’26 – $5.2 billion in issuance Jumbo SEMT SEMT SEMT SEMT 30-Year 2026-1 2026-2 2026-3 2026-4 $2.6 billion $663 million $788 million $385 million $742 million SEQUOIA 4 deals Other Jumbo HYB INV INV MEDPRO RFT Products 2026-HYB 2026-INV1 2026-INV2 2026-MED1 2026-1
Slide 6: Castlelake and Redwood Trust Announce Strategic Joint Venture
Castlelake and Redwood Trust Announce Strategic Joint Venture • Today we announced a new strategic joint venture to support profitable mortgage banking growth JV Partners (1) Asset Class Prime Jumbo Loans Purchasing Power Up to $8 billion Why it Matters • Scalable platform capacity, including the po
Slide 7: First Quarter 2026 Financial Performance
First Quarter 2026 Financial Performance CONSOLIDATED EARNINGS AND RETURNS GAAP RETURNS • (3.1%) GAAP ROE ($0.07) (3.3%) • (0.8%) Total Economic Return (1) Consolidated GAAP EPS BVPS QoQ Change BOOK VALUE AND COMMON DIVIDEND • $7.12 Book Value Per Share $0.21 11.5% • $0.18 Dividend Per Share Non-GAA
Slide 8: First Quarter 2026 Financial Performance (Continued)
First Quarter 2026 Financial Performance (Continued) SEGMENT CAPITAL COMPOSITION NON-GAAP CORE SEGMENTS EAD PER SHARE Legacy Investments Redwood $0.28 15% Investments 31% $0.21 Core $1.6 Segments represent 19.1% ($0.08) Billion 85% of Non-GAAP Core Segments EAD ROE* total capital Mortgage Banking Pl
Slide 9: 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) Includes Corporate Financing Costs(2) $10.0 10-Year Treasury (RHS) 5.00 Excludes Corporate Financing Costs(2) $8.5 $8.5 4.75 48% $7.3 $7.0 $6.8 4.50 38% % perce
Slide 10: Continued Market Share Growth Despite Lower Industry Volumes
Continued Market Share Growth Despite Lower Industry Volumes MBS ISSUANCE FANNIE/FREDDIE(1) RWT MORTGAGE BANKING VOLUME(2) Purchase Sequoia Refinance Aspire CoreVest $212.3 $203.0 $8.5 $74.2 $7.3 $85.3 -4% 17% QoQ Change QoQ growth $138.1 $117.7 $ billions $ billions Q4'25 Q1'26 Q4'25 Q1'26 Note: Mo
Slide 11: Earnings Have Improved as Legacy Investments Resolve
Earnings Have Improved as Legacy Investments Resolve LEGACY INVESTMENTS CAPITAL SINCE Q2’25 NON-GAAP CORE SEGMENTS EAD SINCE Q2’25* $43.2 $523 $36.5 54% $459 43% Decrease in $27.1 $306 Capital Allocated $25.1 to Legacy $242 Investments Increase in Non-GAAP Core Segments EAD* $ millions $ millions Q2
Slide 12: 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) (Q4’25 vs. Q1’26) (Total Expense(2) / Volume) 17% 0.70% 0.66% 9% Q1’26 volume outpaced expense growth 7% ~2x Improvement Total Expense Growth Total Volume Growth Q4'25 Q1'26 12 De
Slide 13: Diversified Distribution Strategy Accelerates Capital Velocity
Diversified Distribution Strategy Accelerates Capital Velocity MORTGAGE BANKING DISTRIBUTIONS MORTGAGE BANKING Securitization CAPITAL EFFICIENCY Whole-loan sales (Average Capital / Annualized Volume)(1) JV transfers $7.2 1.3% 1.1% $5.4 35% 10% QoQ growth Improvement $ billions Q4'25 Q1'26 Q4'25 Q1'2
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 36 days(1) RECOURSE DEBT BY SEGME
Slide 15: Improved Financing Terms Support Growth
Improved Financing Terms Support Growth WAREHOUSE CAPACITY(1) SCHEDULED MATURITIES COST OF FUNDS(1) Renewed $5.1 billion of capacity since Q1’25 No corporate unsecured maturities for 5 quarters Average warehouse financing costs are 120bps lower Secured Debt Unsecured Debt $7.1 6.7% $5.4 $2.4 5.5% 30
Slide 16: RWT Horizons: AI Momentum in 2026
RWT Horizons: AI Momentum in 2026 • Accelerating productivity gains • Strengthening our competitive moat in non-agency mortgage and private credit • Enabling more efficient transaction execution and scalable volume growth AI IMPACT BY THE NUMBERS 2,500+ 200,000+ Sub-Minute 66% Agentic workflow AI qu
Slide 17: Partnering with AI Across the Ecosystem
Partnering with AI Customer Data Normalization Reduces data Across the Ecosystem reconciliation effort Our active RWT Horizons portfolio includes 32 AI and technology-enabled companies driving innovation across Risk management the mortgage finance ecosystem. Shown here are select & Compliance RWT Ho
Slide 18: First Quarter 2026 Earnings & Segment Results
First Quarter 2026 Earnings & Segment Results
Slide 19: Sequoia Q1'26 Performance Summary
Sequoia Q1’26 Performance Summary REDWOOD’S PRIME RESIDENTIAL QUARTER OVER QUARTER COST PER LOAN(2) CORRESPONDENT PLATFORM LOCK VOLUME(1) $6.5 • Record $6.5B lock volume in Q1’26 (1) 0.26% $5.3 • Flow-led production (61%) with a $5.1 growing contribution from new products (ARM, CES, MedPro) $3.9 $3.
Slide 20: Sequoia Q1'26 Performance Summary (Continued)
Sequoia Q1’26 Performance Summary (Continued) MARGIN HIGHLIGHTS GAIN ON SALE MARGINS(1) • Achieved 1Q’26 gain on sale margins(1) of 0.96% despite rate sell- 1.41% 1.36% 1.24% off and TBA underperformance in 0.96% 1.19% 0.99% March Average • Completed nine securitizations for $4.6 billion in total is
Slide 21: Aspire Q1'26 Performance Summary
Aspire Q1’26 Performance Summary REDWOOD’S NON-QM QUARTERLY LOCK VOLUMES(1) CORRESPONDENT PLATFORM Existing Sellers $1,562 • Q1’26 lock volume of $1.6 billion(1) New Sellers $1,487 • Cost per loan 0.30% improved 6% QoQ(2) $1,245 • Active network of ~140 sellers • Existing relationships drove ~70% of
Slide 22: SPIRE: Securitization Shelf Launched
SPIRE: Securitization Shelf Launched INAUGURAL TRANSACTION HIGHLIGHTS PRODUCT ALLOCATION(1) Bank Statement • March 2nd SPIRE 2026-1 priced $391 million 36% Non-QM securitization • Marks Aspire’s entry into the Non-QM securitization space $391 Full Doc • Achieved strong execution with deep investor m
Slide 23: CoreVest Q1'26 Performance Summary
CoreVest Q1’26 Performance Summary REDWOOD’S HOUSING INVESTOR FUNDED VOLUMES NET COST TO ORIGINATE(2) LOAN PLATFORM RTL/DSCR • Q1’26 funded volume of $432 million(1) Term/Bridge • Intentional pipeline discipline $460 0.95% $432 during March volatility leading to strong early Q2’26 pipeline 0.79% $23
Slide 24: Redwood Investments Q1'26 Performance Summary
Redwood Investments Q1’26 Performance Summary INVESTMENTS SOURCED DIRECTLY FROM OUR OPERATING PLATFORMS • $53 million of capital deployed into retained investments created from first quarter securitization activity • Cost of funds continues to improve, enhancing segment contribution CAPITAL ALLOCATI
Slide 25: Legacy Investments Q1'26 Performance Summary
Legacy Investments CAPITAL ALLOCATION Q1’26 Performance Summary Legacy Bridge & $242 HEI 45% HOUSING INVESTMENTS NO LONGER Term Loans million 55% STRATEGIC TO OUR PLATFORM • Ongoing focus on reducing legacy portfolio through dispositions / resolutions • Q1’26 Legacy bridge loan activity QOQ 90 DAY+
Slide 26: Financial Results
Financial Results
Slide 27: Income Statement
Income Statement ($ in millions, except per share data) 27
Slide 28: Balance Sheet
Balance Sheet ($ in millions) 28
Slide 29: Capital Allocation Summary
Capital Allocation Summary ($ in millions) 29
Slide 30: 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. 30
Slide 31: 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. 31
Slide 32: Recourse Debt Balances
Recourse Debt Balances ($ in millions) Recourse $3,000 $2,445 Warehouse Debt/Repo (Marginable) Debt Warehouse Debt/Repo $2,000 Secured Term Scheduled $1,165 Corporate Debt Maturities(1)(5) $1,000 $593 $329 $143 $ billions $0 (6) 2026 2027 2028 2029 Beyond 2029 32
Slide 33: Non-GAAP Disclosures
Non-GAAP Disclosures
Slide 34: Non-GAAP Disclosures
Non-GAAP Disclosures To supplement consolidated and segment financial information prepared and presented in ROC is a non-GAAP measure for a segment that is calculated as GAAP segment net income (loss) accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also annualized
Slide 35: Non-GAAP Disclosures (Continued)
Non-GAAP Disclosures (Continued) Reconciliation of GAAP to non-GAAP EAD – First Quarter 2026 (1) 35
Slide 36: Non-GAAP Disclosures (Continued)
Non-GAAP Disclosures (Continued) Reconciliation of GAAP to non-GAAP EAD – Fourth Quarter 2025 (1) 36
Slide 37: Non-GAAP Disclosures (Continued)
Non-GAAP Disclosures (Continued) Footnotes: 4. . 1. Certain totals may not foot due to rounding. 5. Investment fair value changes, net includes all amounts within that same line item in our 2. Earnings Available for Distribution (“EAD”) is a non-GAAP measure that the Company has consolidated stateme
Slide 38: Endnotes
Endnotes
Slide 39: ENDNOTES
ENDNOTES Slide 4 (Redwood Has a 30+ Year Track Record of Delivering Value) Slide 10 (Continued Market Share Growth Despite Lower Industry Volumes) Slide 15 (Improved Financing Terms Supporting Growth) Source: Company financial data as of March 31, 2026 unless otherwise noted. Source: Company financi
Slide 40: ENDNOTES (Continued)
ENDNOTES (Continued) Slide 21 (Aspire Q1’26 Performance Summary) Slide 29 (Appendix: Capital Allocation Summary) Slide 31 (Appendix: Redwood Investments Key Results) Source: Company financial data as of March 31, 2026 unless otherwise noted. 1. Amounts of assets in our Redwood Investments segment, a
Slide 41: Glossary of Terms
Glossary of Terms Term Definition Term Definition Term Definition ARM Adjustable-Rate Mortgage Mortgage banking (refers to Sequoia Mortgage WA Weighted average MB Banking, Aspire Mortgage Banking and BFR Build for rent CoreVest Mortgage Banking segments) Year over year (comparison of same quarter Yo