Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 107

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 107
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271,788 (496)157,985 Total Liabilities (1)$(57,047)$11,222,488 $(23,660)$2,338,485 Total Derivatives, Net (1)$40,901 $25,518,093 $22,343 $12,215,873 (1)For the purpose of this presentation, derivative assets and liabilities are presented on a gross and a net basis.

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025(Unaudited) Note 13. Derivative Financial Instruments - (continued)

The following table presents the market valuation gains and losses on our derivatives for the three and nine months ended September 30, 2025 and 2024.Table 13.2 – Market Valuation Gains (Losses) on Derivatives, netThree Months Ended September 30, 2025Three Months Ended September 30, 2024(In Thousands)Risk Management Derivatives (1)$(4,341)$27,419 LPCs and IRLCs (2)41,990 9,801 Market Valuation Gains (Losses) on Derivatives, net$37,649 $37,220 Nine Months Ended September 30, 2025Nine Months Ended September 30, 2024(In Thousands)Risk Management Derivatives (1)$99,251 $27,556 LPCs and IRLCs (2)81,879 11,331 Market Valuation Gains on Derivatives, net$181,130 $38,887 (1)Market valuation (losses) gains on risk management derivatives used to manage the mark-to-market risks associated with our Mortgage Banking operations are recorded in Mortgage banking activities, net and market valuation gains (losses) on all other derivatives are recorded in Investment fair value changes, net on our consolidated statements of income.(2)Market valuation gains on LPCs and IRLCs are recorded in Mortgage banking activities, net on our consolidated statements of income.Derivatives Designated as Cash Flow HedgesFor interest rate agreements previously designated as cash flow hedges, our total unrealized loss reported in Accumulated other comprehensive loss was $61 million and $64 million at September 30, 2025 and December 31, 2024, respectively. We are amort