Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 108

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 16
Chunk 108
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12 Consecutive Months12 Consecutive Months or LongerFairValueUnrealizedLossesFair ValueUnrealized Losses(In Thousands)December 31, 2024$30,351 $(391)$19,817 $(5,283)December 31, 20232,374 (128)27,299 (6,625)At December 31, 2024, after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheet included 90 AFS securities, of which 20 were in an unrealized loss position, including 11 in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2023, our consolidated balance sheet included 66 AFS securities, of which 21 were in an unrealized loss position including 19 that was in a continuous unrealized loss position for 12 consecutive months or longer.Allowance for Credit Losses Credit impairments on our available-for-sale securities are recorded in earnings using an allowance for credit losses, with the allowance limited to the amount by which the security's fair value is less than its amortized cost basis. We evaluate all securities in an unrealized loss position to determine if the impairment is credit-related (resulting in an allowance for credit losses recorded in earnings) or non-credit-related (resulting in an unrealized loss through other comprehensive income). The allowance for credit losses is calculated using a discounted cash flow approach and is measured as the difference between the beneficial interest’s amortized cost and the estimate of cash flows expected to be collected, discounted at the effective interest rate used to accrete the beneficial interest. No allowance is recorded for beneficial interests in an unrealized gain position. At December 31, 2024 and 2023, our allowance for credit losses related to our AFS securities was $0.9 million and $2 million, respectively. The following table details the activity related to the allowance for credit losses for AFS securities for the years ended December 31, 2024 and 2023.Table 9.4 – Rollforward of Allowance for Credit LossesYear EndedYear Ended(In Thousands)December 31, 2024December 31, 2023Beginning balance allowance for credit losses$2,482 $2,540 Additions to allowance for credit losses on securities for which credit losses were not previously recorded88 300 Additional decreases to the allowance for credit losses on securities that had an allowance recorded