Redwood Trust (RWT) Provides Preliminary Third Quarter 2022 Financial Results

Redwood Trust, Inc. (NYSE: RWT; “Redwood” or the “Company”), a leader in expanding access to housing for homebuyers and renters, today provided preliminary results for certain financial measures for the quarter ended September 30, 2022 and also announced the date for the Company’s third quarter 2022 financial results webcast and conference call.

The financial information set forth below is provided in light of recent market volatility and intended to provide shareholders with information on the resiliency and strength of Redwood’s balance sheet as we navigate through ongoing market conditions. These financial figures reflect the Company’s preliminary estimates with respect to such information, based on information currently available to management, and are subject to completion, including the completion of customary financial statement closing and review procedures as of and for the quarter ended September 30, 2022.

Preliminary Third Quarter 2022 Financial Results

• The Company estimates that at September 30, 2022, GAAP book value per share was in a range of $10.15 to $10.25, a 4.9% to 5.8% decrease from $10.78 at June 30, 2022
• Maintained robust balance sheet with unrestricted cash of $297 million and unencumbered assets of approximately $500 million at September 30, 2022
• Added $900 million of new financing capacity across multiple borrowing facilities (with both new and existing domestic depository institutions) in the third quarter to further support operating platforms; have over $3 billion of unused financing capacity across Residential and Business Purpose Mortgage Banking segments
• Repurchased 3.4 million shares of Redwood’s common stock at a cost of $24 million, resulting in $0.12 per share of book value accretion in the third quarter
• Total margin call activity in the third quarter resulted in a net return of cash to Redwood from financing and hedging counterparties
• A third quarter common stock dividend of $0.23 per share, unchanged from the second quarter of 2022, was paid on September 30, 2022 to shareholders of record at September 23, 2022

Per share amounts at September 30, 2022 are based on 113,343,014 common shares outstanding on that date.

Third Quarter 2022 Financial Results Release Date

The Company also announced it is scheduled to release its full third quarter 2022 results on October 27, 2022 after the close of the market. Redwood's senior management team plans to hold a conference call to discuss its third quarter 2022 financial results later that same day at 2:00 pm Pacific Time/ 5:00 pm Eastern Time.

Webcast Information

The conference call will be webcast live in listen-only mode through the News & Events section of Redwood’s Investor Relations website at https://www.redwoodtrust.com/investor-relations/news-events/events. To listen to the webcast, please go to Redwood's 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.

Conference Call Information

To participate by phone, please dial-in at least 15 minutes prior to the start time to allow for wait times to access the conference call. The live conference call will be accessible domestically or internationally, by dialing 1-877-423-9813 or 1-201-689-8573, respectively.

A replay of the conference call will be available after 5:00 p.m. Pacific Time / 8:00 p.m. Eastern Time on Thursday, October 27, 2022, through 8:59 p.m. Pacific Time / 11:59 p.m. Eastern Time on Thursday, November 10, 2022. To access the replay, listeners may use 1-844-512-2921 (domestic) or 1-412-317-6671 (international). The passcode for the replay is 13729621.

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