Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 73

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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)— (9,077)Other expenses— (7,210)(3,556)— — (10,766)(Provision for) Benefit from income taxes(10,031)706 (3,454)— 204 (12,575)Net Income (Loss) (2)$39,697 $769 $100,887 $13,495 $(94,226)$60,622 Total Assets$1,543,380 $357,432 $12,815,147 $3,337,646 $373,821 $18,427,426 (1)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations and Legacy Investments. Mortgage banking activities, net, also includes other derivative financial instruments such as loan purchase commitments and interest rate locks.(2)Net Income (Loss) by segment is also referred to as Segment Contribution.

15

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025(Unaudited) 

Note 5. Mortgage Banking Activities, Net

Mortgage banking activities, net includes changes in fair value of loans held-for-sale, loan purchase commitments, interest rate lock commitments and related risk management derivatives held in our Sequoia Mortgage Banking and CoreVest Mortgage Banking segments. The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income for the three and nine months ended September 30, 2025 and 2024.Table 5.1 – Mortgage Banking ActivitiesThree Months Ended September 30,Nine Months Ended September 30,(In Thousands)2025202420252024Sequoia Mortgage Banking Activities, Net:Changes in fair value of:Residential consumer loans, at fair value (1)$54,872 $20,959 $100,566 $31,410 Trading securities (2)(24,382)(28,630)(92,354)(17,508)Risk management derivatives (3)(2,426)34,051 65,389 25,121 Other income, net (4)655 335 1,665 1,764 Total Sequoia mortgage banking activities, net28,719 26,715 75,266 40,787 CoreVest Mortgage Banking Activities, Net:Changes in fair value of:Residential investor term loans,