Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 8-K
Source: 0001104659-25-003630
Chunk: 1

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 8-K
Item: Item 2.02
Chunk 1
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 or exchangeable notes or preferred stock, (vii) issuable
in respect of our employee stock purchase plan, or (viii) issuable in respect of our deferred compensation plan in each case as of
December 31, 2024.

Recourse leverage ratio is defined as our recourse
debt divided by tangible stockholders’ equity. As of December 31, 2024, recourse debt excludes an estimated $14.0 billion of
consolidated securitization debt (ABS issued and servicer advance financing) and other debt that is non-recourse to us, and tangible stockholders’
equity excludes an estimated $42 million of goodwill and intangible assets. On a preliminary basis, we estimate our recourse debt was
$2.8 billion and that our stockholders’ equity was $1.1 billion at December 31, 2024.

Our financial statement closing and review procedures
for the quarter and year ended December 31, 2024 are not yet complete and, as a result, the financial results information set forth
above reflects our preliminary estimate with respect to such information, based on information currently available to management, and
may vary from our actual financial results as of and for the quarter and year ended December 31, 2024. Further, these preliminary
estimates are not a comprehensive statement or estimate of our financial results or financial condition as of and for the quarter and
year ended December 31, 2024. These preliminary estimates should not be viewed as a substitute for full interim and annual financial
statements prepared in accordance with GAAP and they are not necessarily indicative of the results to be achieved in any future period.
Accordingly, you should not place undue reliance on these preliminary estimates.

These preliminary estimates, which are the responsibility
of our management, were prepared by our management and are based upon a number of assumptions. Additional items that may require adjustments
to these preliminary estimates may be identified and could result in material changes to these preliminary estimates. Preliminary estimates
of results are inherently uncertain and we undertake no obligation to update this information. See “ Cautionary Statement Regarding
Forward-Looking Statements” below and “ Risk Factors” beginning on page 6 of our Annual Report on Form 10-K for the year
ended December 31, 2023 for a discussion of factors that could impact our actual results of operations. Grant Thornton LLP, our independent
registered public accounting firm, has not audited, reviewed, compiled or performed