Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 224

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 224
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General and administrative expenses(5,240)(9,306)(1,861)— (19,601)(36,008)Portfolio management costs— — (1,550)(4,791)(15)(6,356)Loan acquisition costs(1,291)(1,885)— — — (3,176)Other expenses— (2,202)(26)— — (2,228)(Provision for) Benefit from income taxes(6,977)(981)606 — 224 (7,128)Net Income (Loss) (2)$22,755 $5,683 $16,430 $3,676 $(33,718)$14,826 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.

14

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025(Unaudited) Note 4. Segment Information - (continued)

Nine Months Ended September 30, 2024(In Thousands)Sequoia Mortgage BankingCoreVest Mortgage BankingRedwood InvestmentsLegacy InvestmentsCorporate/OtherTotalInterest income$61,728 $15,647 $471,952 $126,744 $2,729 $678,800 Interest expense(34,958)(11,480)(397,286)(117,131)(42,944)(603,799)Net interest income (expense)26,770 4,167 74,666 9,613 (40,215)75,001 Non-interest income (loss)Mortgage banking activities, net, excluding risk management derivatives15,666 29,569 — — — 45,235 Risk management derivatives gains, net (1)25,121 2,693 — — — 27,814 Total Mortgage banking activities, net40,787 32,262 — — — 73,049