Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 170

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 170
---
-date period ended September 30, 2024.

Table 9 – Redwood Investments Earnings SummaryThree Months EndedNine Months Ended(In Thousands)September 30, 2025June 30, 2025ChangeSeptember 30, 2025September 30, 2024ChangeNet interest income$17,582 $22,097 $(4,515)$61,294 $74,666 $(13,372)Investment fair value changes, net(1,742)(8,998)7,256 (7,117)31,511 (38,628)HEI income, net745 126 619 926 32 894 Servicing income1,416 1,608 (192)6,431 8,025 (1,594)Fee income, net270 412 (142)823 797 26 Other income, net392 394 (2)1,156 2,139 (983)Realized gains, net— 640 (640)1,207 525 682 Operating expenses(8,293)(5,954)(2,339)(19,364)(13,354)(6,010)(Provision for) Benefit from income taxes(30)1,567 (1,597)1,841 (3,454)5,295 Segment Contribution$10,340 $11,892 $(1,552)$47,197 $100,887 $(53,690)

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 at this segment that is performed within our TRS is subject to federal and state income taxes. The benefit from income taxes was primarily due to GAAP losses generated by this segment’s operations at our TRS and our provision for income taxes at this segment is primarily driven by the amount of income earned from portfolio assets at our TR