REDWOOD TRUST INC (RWTO) SEC Filings, Jul-Sep 2026

REDWOOD TRUST INC (RWT) Chief Executive Officer and director Christopher J. Abate reported an open‑market purchase of 100,000 shares of common stock on September 15, 2026 at $3.839 per share, held indirectly by a trust, bringing his indirect common‑stock holdings to 679,283 shares. He also reported deferred stock unit awards convertible into 115,896, 98,268 and 118,421 shares of common stock at grant‑date fair values of $5.63, $6.64 and $7.79 per underlying share, which vest in tranches between 2025 and 2029, and no Rule 10b5‑1 trading plan is reported.

Redwood Trust, Inc. (RWT) declared third quarter 2026 dividends and announced balance-sheet actions including a planned convertible notes offering and sales of legacy loans. The Board declared a $0.18 per share common stock dividend, unchanged from the prior quarter and representing the 109th consecutive quarterly common dividend, payable September 30, 2026 to holders of record on September 23, 2026. The Board also declared a third quarter 2026 dividend on the 10.00% Series A preferred stock of $0.625 per share, payable October 15, 2026 to holders of record on October 1, 2026.

Redwood reached preliminary agreements to dispose of certain legacy bridge loans with an aggregate unpaid principal balance of up to $190 million, which management currently estimates would reduce book value per share by approximately 2% from the June 30, 2026 level. These dispositions are targeted to close late in the third quarter or early in the fourth quarter of 2026 and remain subject to definitive documentation and closing conditions. Separately, Redwood plans a private offering of $150 million aggregate principal amount of convertible senior notes due 2030, with an option for initial purchasers to buy up to an additional $22.5 million of notes. The company intends to use a portion of the net proceeds to repurchase part of its 2027 notes, up to $20 million to repurchase common stock, and the remainder for general corporate purposes and funding its housing credit platforms.

Redwood Trust, Inc. (RWT) has a significant shareholder position reported by Bay Pond Investors (Bermuda) L.P. on a Schedule 13G. Bay Pond reports beneficial ownership of 6,379,415 shares of Redwood Trust common stock, representing 5.08% of the outstanding class.

Bay Pond reports no sole voting or dispositive power over these shares and instead holds shared voting and shared dispositive power over all 6,379,415 shares. The filing is signed by Ihsan Speede as Authorized Person for Wellington Alternative Investments LLC, the general partner of Bay Pond Investors (Bermuda) L.P.

Redwood Trust, Inc. has a significant institutional holder, as Wellington Management Group LLP and related entities report beneficial ownership of Redwood Trust common stock on a passive basis. As of June 30, 2026, Wellington-managed clients collectively hold 8,735,371 shares, representing 6.98% of the outstanding common stock.

The Wellington entities report 0 shares with sole voting or dispositive power and instead list 8,307,376 shares with shared voting power and up to 8,735,371 shares with shared dispositive power. The shares are owned of record by multiple advisory clients of Wellington’s investment adviser affiliates, none of which individually is known to hold more than five percent of the class.

BlackRock, Inc. filed an amended Schedule 13G reporting beneficial ownership of common stock of Redwood Trust, Inc. BlackRock reports beneficially owning 11,143,861 shares, representing 8.9% of Redwood Trust’s outstanding common stock.

BlackRock states it has sole voting power over 10,921,654 shares and sole dispositive power over 11,143,861 shares, with no shared voting or dispositive power. Various underlying clients have rights to dividends or sale proceeds, but no single client holds more than five percent of Redwood Trust’s outstanding common shares.

Wellington Management Group LLP and affiliated entities report significant institutional ownership of Redwood Trust, Inc. common stock on a Schedule 13G/A (Amendment No. 7). They report beneficial ownership of 14,138,285 shares, representing 11.29% of the outstanding common stock.

The group reports no sole voting or dispositive power, with 13,710,290 shares subject to shared voting power and 14,138,285 shares subject to shared dispositive power. The shares are owned of record by clients of various Wellington investment advisers, and no single client is reported to hold more than five percent of the class.

Redwood Trust, Inc. reported a consolidated net loss for Q2 2026 that was lower than in Q2 2025. For the quarter, net loss was 1,100 (in thousands), or 2,858 (in thousands) attributable to common stockholders. Total interest income reached 385,224 (in thousands), producing net interest income of 32,071 (in thousands), while non-interest income was positive 23,939 (in thousands) from mortgage banking, servicing, and HEI activities.

Total assets rose to 28,818,131 (in thousands) at June 30, 2026, led by residential consumer loans of 23,638,696 (in thousands) funded largely through 22,515,907 (in thousands) of asset-backed securities. Equity was 933,839 (in thousands) as cumulative distributions exceeded cumulative earnings. Sequoia and Aspire mortgage banking segments generated solid positive contribution, offset by losses in Legacy Investments and Corporate/Other. Operating cash flow was an outflow of 8,254,974 (in thousands), driven by heavy loan origination and purchase activity, largely offset by securitization and other financing inflows.

Redwood Trust, Inc. reported second-quarter 2026 results with a GAAP net loss of $2.9 million, or $(0.03) per basic and diluted common share. Non-GAAP Earnings Available for Distribution were $20.3 million, or $0.15 per share, and Core Segments EAD were $34.0 million, or $0.25 per share. GAAP book value per common share was $6.90 at June 30, 2026, down from $7.12 at March 31, 2026, and the company declared a $0.18 quarterly common dividend, producing an economic return on book value of (0.6)%.

Mortgage banking production exceeded $8 billion for the second consecutive quarter, generating $40.1 million of GAAP net income and a 33% annualized return on capital across Sequoia, Aspire and CoreVest. Sequoia locked $5.6 billion of loans, Aspire locked a record $2.1 billion, and CoreVest funded $410 million, while more than 20 securitizations were completed year-to-date.

Management highlights AI-enabled automation delivering approximately 23,600 annualized hours of time savings, over 50% above the first-quarter baseline, alongside stable gain-on-sale margins and lower cost per loan in key platforms. Unrestricted cash and cash equivalents were $192 million and recourse debt $4.5 billion at June 30, 2026, with recourse leverage of 5.0x. Legacy Investments produced a GAAP net loss of $(23.3) million, and capital allocated to this segment is described as falling toward less than 10% of total capital as positions are wound down.

Redwood Trust, Inc. reported that its mortgage banking businesses continued to grow in the second quarter of 2026, with aggregate volumes over $8 billion. Aspire, its non-QM platform, delivered record lock volume of $2.1 billion, up 32% from the first quarter.

The company currently estimates a modest 1% to 3% decline in GAAP book value at June 30, 2026 from the prior quarter, with economic return on book value for the quarter estimated between (1.0)% and 1.0%, including the $0.18 per share dividend. Redwood also highlighted strong liquidity, citing a corporate unsecured senior notes offering completed in May and $3.5 billion of excess available asset funding capacity at June 30, 2026. It expects to report full second quarter results on July 28, 2026 and outlined plans to launch an Aspire joint venture with an institutional capital partner in the third quarter.