Redwood Trust Q4 net income rises on record mortgage banking

Redwood Trust

11/02/2026 21:26

Overview

Housing finance firm's Q4 net income rose to $18.3 mln, driven by mortgage banking growth

Mortgage banking production reached a record $7.3 bln, boosting earnings

Company repurchased 2.7 mln shares for $15 mln, enhancing book value

Outlook

Redwood Trust aims to scale core businesses for sustainable earnings growth

Company plans to simplify operations for future cost savings

Result Drivers

MORTGAGE BANKING GROWTH - Record $7.3 bln in mortgage banking production drove earnings growth

SEQUOIA PERFORMANCE - Sequoia Mortgage Banking segment's gain on sale margin increased 37% from Q3 2025

COREVEST GROWTH - CoreVest Mortgage Banking saw growth in small-balance production despite declines in other areas

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Interest Income
$25.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the specialized reits peer group is "buy"

Wall Street's median 12-month price target for Redwood Trust Inc is $6.75, about 20.1% above its February 10 closing price of $5.62

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBwjFW0na

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)