**Redwood Trust, Inc. Reports Annual Financial Results in Form 10-K Filing**
Redwood Trust, Inc., a specialty finance company focused on housing credit, released its 2025 annual report on Form 10-K, outlining the company's financial performance and strategic developments. The filing indicates a net loss of $70 million for the year ended December 31, 2025, compared to a net income of $54 million for the year ended December 31, 2024. This decline is attributed to adverse fair value adjustments and reduced net interest income, particularly in the Legacy bridge loan portfolio, lower HEI income, and increased operating expenses related to volume growth in the Mortgage Banking platforms.
The company's net interest income decreased from $102.6 million in 2024 to $82.7 million in 2025. This reduction was primarily due to an increase in non-accrual Legacy unsecuritized bridge and term loan portfolios, which led to reversals of previously accrued interest income. Redwood's mortgage banking activities, net, however, increased to $167.1 million in 2025 from $99.4 million in 2024, driven by stronger performance in the Sequoia and CoreVest Mortgage Banking operations. Sequoia's loan lock volume reached $20.7 billion, while CoreVest's loan funding volume totaled $2.0 billion.
Strategic developments included the accelerated wind-down of the Legacy Investments portfolio, with approximately $1.2 billion of legacy asset dispositions completed during 2025. This repositioning aimed to reallocate capital to core operating businesses and improve balance sheet flexibility. The company also repurchased 9.2 million shares of its common stock for $53 million and repurchased or repaid $126 million of outstanding corporate debt securities. At year-end, Redwood Trust employed 351 full-time employees, with 70% directly engaged in the Sequoia and CoreVest Mortgage Banking platforms.
Looking ahead, Redwood Trust plans to continue scaling its operating platforms, efficiently deploying capital, and creating long-term value through disciplined execution and risk management. The company acknowledges that housing affordability, interest rate trends, and policy developments will remain key variables influencing market activity. The company's Board of Directors has set May 19, 2026, as the date for the 2026 annual meeting of stockholders.
About REDWOOD TRUST INC
Redwood Trust, Inc. is a specialty finance company focused on housing credit, providing liquidity and investment opportunities in residential and investor mortgage markets. It operates through mortgage banking platforms, securitization, and investment portfolios, generating income from interest, loan origination, and asset appreciation. The company serves diverse investors, leveraging securitization, origination, and strategic investments to support accessible, quality housing across the U.S.
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