Redwood Trust: ACQUISITION PROVIDES ADDITIONAL SCALE TO COREVEST’S MARKET LEADER POSITION IN COMMERCIAL LOANS – Form 8-K

ACQUISITION PROVIDES ADDITIONAL SCALE TO COREVEST’S LEADERSHIP POSITION IN THE COMMERCIAL LOAN MARKET

MILL VALLEY, Calif. — Redwood Trust, Inc.(NYSE: RWT; “Redwood” or the “Company”), a leader in expanding access to housing for buyers and renters, today announced that it has entered into a definitive agreement to acquire Riverbend Funding, LLC and its subsidiaries (“Riverbend”), a premier private mortgage lender to transitional residential and commercial real estate investors, in an all-cash transaction. The addition of Riverbend complements Redwood’s existing mortgage banking platform, CoreVest American Finance Lender, LLC (“CoreVest”), enhancing CoreVest’s product line, geographic and production footprint and customer base. Following the closing of the acquisition, Riverbend will be integrated into CoreVest.

Co-founded in 2017 by Emilian Halloran, Sean Robbins and Brian Burke, Riverbend is a leading bridge lender providing financing to experienced real estate investors acquiring transitional residential and multi-family properties with plans for rehabilitation and sale, as well as to professional developers of multi-family properties. . Riverbend has over 50 employees and is headquartered in Portland, Oregon. Over the past twelve months, Riverbend has issued more than $1.0 billion in loans in 33 states, with additional key markets targeted for future expansion. Riverbend’s management team plans to remain with the business after the transaction closes.

“We are delighted to announce the acquisition of Riverbend, demonstrating our commitment to strategically grow our mortgage banking platforms in a way that benefits our partners,” said Chris Abate, CEO of Redwood. “Riverbend’s platform adds a complementary product and geographic footprint to CoreVest’s existing business. The bridge loan market continues to be exceptionally strong, supported by increasing sales of newly built and rehabilitated homes amid a declining housing inventory. This acquisition strengthens our scale in this market and we believe that our existing partners will benefit from the products, experience and strategic enhancement that Riverbend brings to CoreVest.”

“We look forward to working with Emilian, Sean and the talented team at Riverbend,” added Beth O’Brien, CEO of CoreVest. “Riverbend adds a first-class origination team with a history of high quality service and attractive financing terms as well as seasoned experience in underwriting and sourcing. The Riverbend team has also been very successful in distributing effectively lending through capital markets executions. Riverbend’s experience will complement our existing mortgage banking platform and distribution capabilities as we continue to capture market share in this market in full growth. ”

“Since its inception, Riverbend has been committed to providing innovative lending options, putting the needs of our borrowers first, and closing deals with service and speed,” said Sean Robbins, co-founder of Riverbend. “CoreVest shares these values ​​and partnering with CoreVest will help us provide better financing options to our partners, drive overall productivity and improve our efficiency. The opportunity we see together is significant. We look forward to working together and to implement our shared vision of providing best-in-class financing, service and products to our borrowers.”

The acquisition is expected to close in the second quarter of 2022, subject to customary closing conditions.

JMP Securities, A Citizens Company, served as exclusive financial advisor to Redwood on the transaction. Riverbend was advised by Piper Sandler. Mayer Brown LLP acted as legal counsel to Redwood.

Additional Resources

An investor presentation related to the transaction is available on Redwood’s Investor Relations website at https://ir.redwoodtrust.com.

About Redwood Trust

Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of mortgage lending. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the US real estate market that are not well served by government programs. We offer personalized mortgage investments to a diverse range of investors, thanks to our best-in-class securitization platforms; full loan distribution activities; and our publicly traded shares. Our aggregation, origination and investment businesses have evolved to incorporate a diverse mix of residential, commercial and multi-family assets. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation and a commitment to technological innovation that facilitates risk-driven scale. We operate through three segments: Residential Mortgage Banking, Commercial Mortgage Banking and Investment Portfolio. Additionally, through RWT Horizons™, our venture capital investment initiative, we invest in early-stage companies strategically aligned with our lending, real estate and fintech businesses to drive innovations on our residential and commercial lending platforms. Since our IPO in 1994, we’ve managed our business through multiple cycles, built a track record of innovation, and established an industry-leading reputation for service and a common-sense approach to investing in credit. Redwood Trust is internally managed and structured as a Real Estate Investment Trust (“REIT”) for tax purposes. For more information about Redwood, please visit our website at www.redwoodtrust.com or connect with us on LinkedIn, Twitter or Facebook.

About CoreVest

CoreVest, a division of Redwood Trust, Inc., is the leading lender to residential real estate investors nationwide. It offers long-term loans for rental property portfolios as well as short-term bridge loans, investment lines of credit and building programs for rental. With over $16 billion in loans closed and over 100,000 units financed, CoreVest offers attractive rates, fast turnaround times and closing certainty. The company works directly with borrowers and brokers. For more information, visit www.corevestfinance.com.

About Riverbend

Riverbend Lending is an innovative private lending partner with a national footprint and local expertise. The company is led by a management team with over sixty years of experience in real estate investments. Our management team has a proven track record with a combined funded portfolio of over $1.5 billion in single-family and multi-family loans across the United States.

Forward-looking statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements relating to Redwood’s expectations regarding the closing of its acquisition of Riverbend, the integration of Riverbend into Redwood and CoreVest businesses, and the subsequent performance of the combined companies and the credit markets generally. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates and projections and, accordingly, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as “anticipate”, “estimate”, “will”, “should”, “expect”, “believe”, “intend”. of”, “seek”, “plan” and similar expressions or their negative forms, or by references to strategy, plans or intentions. Such forward-looking statements are subject to risks and uncertainties, including, among others, those described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 under the heading “Risk Factors”. Other risks, uncertainties and factors that could cause actual results to differ materially from those projected may be described from time to time in reports we file with the Securities and Exchange Commission, including reports on Forms 10-Q and 8-K. We undertake no obligation to update or revise the statement forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT

Redwood Investor Relations

Kaitlyn Mauritz

SVP, Head of Investor Relations

Phone: 866-269-4976

Email: investorrelations@redwoodtrust.com

Sequoia Media

Sard Verbinnen & Co

E-mail: Redwood-SVC@sardverb.com

CoreVest Media

Tuan Pham

Phone: 949-344-7884

Tuan.Pham@cvest.com


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Sandy A. Greer