Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 277

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 277
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 CFE election.

(4)Other investments includes changes in fair value of REO assets.

(5)Other income excludes net MSR fee income or provision for repurchases, as these amounts do not represent market valuation adjustments.

58

Results of Operations by Segment

We report on our business using three segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, and Redwood Investments. For additional information on our segments, refer to Note 4 of our Notes to Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.     

The following table presents the segment contribution from our three segments reconciled to our consolidated net income for the three months ended March 31, 2025 to the immediate preceding quarter December 31, 2024 and year-to-date period March 31, 2024. 

Table 4 – Segment Results SummaryThree Months EndedThree Months Ended(In Thousands)March 31, 2025December 31, 2024ChangeMarch 31, 2025March 31, 2024ChangeSegment Contribution from:Sequoia Mortgage Banking$25,817 $21,799 $4,018 $25,817 $7,019 $18,798 CoreVest Mortgage Banking1,338 1,526 (188)1,338 (5,509)6,847 Redwood Investments22,868 2,761 20,107 22,868 57,492 (34,624)Corporate/Other(33,876)(32,704)(1,172)(33,876)(28,740)(5,136)Net Income (Loss)$16,147 $(6,618)$22,765 $16,147 $30,262 $(14,115)

The sections that follow provide further detail on our business segments and their results of operations for the three months ended March 31, 2025 to the immediate preceding quarter December 31, 2024 and year-to-date period March 31, 2024. 

Corporate/Other

Net expense from Corporate/Other remained essentially flat from three months ended March 31, 2025 to the three months ended December 31, 2024. The increase in net expenses from Corporate/Other for the three months ended March 31, 2025 to the three months ended March 31, 2024 was primarily driven by an increase in variable and fixed