Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 161

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 161
---
697)(26,058)(17,829)(8,229)Provision for income taxes(5,464)(9,289)3,825 (22,015)(10,031)(11,984)Segment Contribution$34,319 $22,154 $12,165 $82,289 $39,697 $42,592 LPCs entered into (loan locks, adjusted for expected fallout)$5,359,937 $3,047,445 $2,312,492 $11,711,215 $5,501,354 $6,209,861 

Operating expenses presented in the table above include general and administrative expenses and loan acquisition costs for this segment.

Activity at this segment that is performed within our taxable REIT subsidiary is subject to federal and state income taxes. The provision for income taxes for the periods presented above resulted from GAAP income from these operations at our TRS during that period.

The following table provides the activity of residential consumer loans held in inventory for sale at our Sequoia Mortgage Banking business during the three and nine months ended September 30, 2025. 

Table 6 – Loan Inventory for Sequoia Mortgage Banking OperationsThree Months EndedNine Months Ended(In Thousands)September 30, 2025September 30, 2025Balance at beginning of period $1,350,782 $1,013,547 Acquisitions3,934,824 9,177,188 Sales (877,516)(2,090,217)Transfers between segments (1)(1,924,315)(5,589,430)Principal repayments(43,854)(89,319)Changes in fair value, net15,638 33,790 Balance at End of Period$2,455,559 $2,455,559 

(1)Represents the fair value of the net transfers of loans from held-for-sale to held-for-investment within our Redwood Investments Portfolio, associated with securitizations we sponsored that we consolidate under GAAP.

Three Months Ended September 30, 2025 Compared to Three Months Ended June 30, 2025 

The $12 million increase in segment contribution in the three months ended September 30, 2025, as compared to the three months ended June 30, 2025 was primarily due to higher lock volumes and distribution activity. Operating expenses remained consistent quarter-over-quarter, demonstrating continued