Redwood Trust, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $16.1 million, a decrease from $30.3 million in the same period last year. The company's revenue for the quarter was $272.1 million, up from $204.7 million year-over-year, primarily driven by a significant increase in interest income from residential consumer loans, which rose to $162.3 million from $86.9 million. However, net income available to common stockholders fell to $14.4 million, or $0.10 per share, compared to $28.5 million, or $0.21 per share, in the prior year.
The company experienced notable changes in its operational metrics compared to the previous fiscal period. Total assets increased to $19.9 billion as of March 31, 2025, up from $18.3 billion at the end of 2024. This growth was largely attributed to a rise in residential consumer loans, which reached $12.8 billion, compared to $11.1 billion at the end of the previous year. Redwood Trust's total liabilities also increased, amounting to $18.7 billion, up from $17.1 billion, reflecting higher debt obligations and asset-backed securities issued.
Strategically, Redwood Trust expanded its Aspire platform, which offers alternative loan products tailored to underserved borrowers, achieving a lock volume of over $100 million in the first quarter. The company also reported a 73% increase in Sequoia jumbo lock volumes, reaching $4 billion, marking its highest quarterly volume since 2021. CoreVest, another segment of the company, funded $482 million in loans during the quarter, a 48% increase compared to the same period last year, although it represented a 4% decline from the previous quarter.
Operationally, Redwood Trust's mortgage banking activities saw a significant increase, with net mortgage banking income rising to $33.1 million, up from $14.6 million year-over-year. The company reported a total of 133 million shares of common stock outstanding as of March 31, 2025, a slight increase from 132.5 million shares at the end of 2024. The company continues to focus on reducing its legacy bridge loan portfolio while enhancing its operational efficiency and capital allocation strategies.
Looking ahead, Redwood Trust anticipates continued growth in its mortgage banking operations, with expectations of achieving annualized returns on equity in the range of 9% to 12% in the latter half of 2025. The company remains committed to leveraging its strategic partnerships and innovative technology to enhance its competitive position in the housing finance market.
About REDWOOD TRUST INC
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