Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 302

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 302
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625)(10,766)(2,859)Total Operating expenses(55,724)(55,827)103 (162,990)(138,521)(24,469)Net (Loss) Income Before Income Taxes(1,351)(93,930)92,579 (72,872)73,197 (146,069)Provision for income taxes(6,353)(4,562)(1,791)(17,177)(12,575)(4,602)Net (Loss) Income(7,704)(98,492)90,788 (90,049)60,622 (150,671)Dividends on preferred stock(1,750)(1,757)7 (5,257)(5,257)— Net (Loss) Income (Related) Available to Common Stockholders$(9,454)$(100,249)$90,795 $(95,306)$55,365 $(150,671)

64

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

Net loss for the three months ended September 30, 2025 totaled $9 million, compared with $100 million for the three months ended June 30, 2025. The improvement reflects the sale or transfer of a portfolio of Legacy unsecuritized bridge loans and REO assets and third-party originated HEI that had been subject to negative fair value adjustments in the prior quarter, together with strong segment contribution from our Mortgage Banking operations in the current quarter.

Net interest income increased to $15 million from $14 million in the prior quarter, primarily driven by an increase in net interest income from our Sequoia Mortgage Banking operations of $6 million, which was offset by a decrease of $5 million in net interest income from our Redwood Investments portfolio. The increase in net interest income in our Sequoia Mortgage Banking operations was due to an increase in average loan balances and higher yields earned on residential consumer loans held-for-sale during the quarter. Lower net interest income in our Redwood Investments portfolio primarily reflected paydowns on our third-party securities during the third quarter, and to a lesser extent, continued third-party security sales of assets as part of our plans to wind-down the Legacy Investments portfolio.

Sequoia mortgage banking activities, net increased to $29 million from $24 million in the prior quarter. This increase was primarily due to a significant increase in lock volumes