Redwood Trust Inc (NYSE:RWT)
$ 7.1 0.03 (0.42%) Market Cap: 939.09 Mil Enterprise Value: 17.59 Bil PE Ratio: 12.91 PB Ratio: 0.81 GF Score: 56/100

Q2 2024 Redwood Trust Inc Earnings Call Transcript

Aug 01, 2024 / 12:00PM GMT
Release Date Price: $7.07 (-2.75%)

Key Points

Positve
  • Redwood Trust Inc (RWT) achieved approximately 50% growth in residential consumer lock volumes for the second consecutive quarter.
  • The company realized a 20% reduction in fixed costs, improving operating efficiency.
  • Earnings available for distribution increased by 70% from the prior quarter, reaching $0.13 per share.
  • Redwood Trust Inc (RWT) saw an 80% quarter-over-quarter growth in bank lock volume.
  • The company maintained a robust cash position of $276 million at quarter end, effectively unchanged from the first quarter.
Negative
  • GAAP earnings decreased to $0.10 per share from $0.21 per share in the first quarter.
  • Book value per share slightly decreased from $8.78 at March 31 to $8.73 at June 30.
  • The company experienced higher reserves on bridge loans, impacting performance.
  • Net interest income from the bridge portfolio decreased due to a smaller portfolio size.
  • The delinquency rate in the bridge loan portfolio saw a modest uptick, largely driven by multifamily loans.
Operator

Good afternoon, and welcome to the Redwood Trust, Inc., second-quarter 2024 financial results conference call. Today's conference is being recorded.

I will now turn the call over to Kaitlyn Mauritz, Redwood's Head of Investor Relations. Please go ahead, ma'am.

Kaitlyn Mauritz
Redwood Trust Inc - Head of Investor Relations

Thank you, operator. Hello, everyone, and thank you for joining us today for our second quarter 2024 earnings conference call. With me on today's call are Chris Abate, Chief Executive Officer; Dash Robinson, President; and Brooke Carillo, Chief Financial Officer.

Before we begin, I want to remind you that certain statements made during management's presentation today with respect to future financial and business performance may constitute forward-looking statements. Forward-looking statements are based on current expectations, forecasts and assumptions and include risks and uncertainties that could cause actual results to differ materially. We encourage you to read the company's annual report on Form 10-K, which provides a

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