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.
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SOURCE Redwood Trust, Inc.
