Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 338

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 338
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 tax provisions associated with these activities are also included in this segment.

The following table presents an earnings summary for our Redwood Investments segment for the three and six months ended June 30, 2025 to the immediate preceding quarter ended March 31, 2025 and the year-to-date period ended June 30, 2024.

Table 9 – Redwood Investments Earnings SummaryThree Months EndedSix Months Ended(In Thousands)June 30, 2025March 31, 2025ChangeJune 30, 2025June 30, 2024ChangeNet interest income$22,097 $21,659 $438 $43,712 $47,769 $(4,057)Investment fair value changes, net(8,998)3,623 (12,621)(5,375)40,637 (46,012)HEI income, net126 55 71 181 — 181 Servicing income1,608 3,407 (1,799)5,015 7,774 (2,759)Fee income, net412 142 270 554 733 (179)Other income, net394 370 24 764 1,208 (444)Realized gains, net640 567 73 1,207 314 893 Operating expenses(5,954)(5,116)(838)(11,070)(9,918)(1,152)Benefit from (provision for) income taxes1,567 304 1,263 1,871 (4,060)5,931 Segment Contribution$11,892 $25,011 $(13,119)$36,859 $84,457 $(47,598)

Investment fair value changes, net is primarily comprised of the change in fair value (both realized and unrealized) of our portfolio investments accounted for under the fair value option and interest rate hedges associated with these investments. See Table 3 in the Consolidated Results of Operations in Part I, Item 2 of this Quarterly Report on Form 10-Q for further detail on the composition of investment fair value changes (the difference in amounts in the table above and in Table 3 relates to fair value changes for investments held at corporate/other).

 We hold certain of our investments, primarily our MSRs, at our TRS. Activity of this segment that is performed within our TRS is subject to