Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 315

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 315
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)Net Loss (Income) Before Income Taxes(93,930)22,409 (116,339)(71,521)51,243 (122,764)Provision for income taxes(4,562)(6,262)1,700 (10,824)(5,447)(5,377)Net Income (Loss)(98,492)16,147 (114,639)(82,345)45,796 (128,141)Dividends on preferred stock(1,757)(1,750)(7)(3,507)(3,507)— Net Income (Loss) Available (Related) to Common Stockholders$(100,249)$14,397 $(114,646)$(85,852)$42,289 $(128,141)

63

Three Months Ended June 30, 2025 Compared to Three Months Ended March 31, 2025 

Net Interest Income 

Net interest income decreased by $14 million during the second quarter of 2025, primarily due to an $11 million decline from our Legacy Investments segment. The decrease was largely due to an increase in the balance of our legacy unsecuritized bridge and term loan portfolios on non-accrual during the quarter, which in certain cases caused a reversal of prior quarter net interest income. This segment was previously included within Redwood Investments, and primarily consists of assets no longer aligned with our core strategic objectives and involves positions primarily linked to legacy unsecuritized bridge and term loan portfolios, our third-party securities portfolio, and other non-core legacy assets. These assets are in the active process of sale, runoff, or other disposition as part of accelerated strategic repositioning of our business model. This segment is expected to wind down over time as the assets are sold or otherwise resolved. 

Sequoia Mortgage Banking contributed $3 million lower net interest income due to lower volume as total lock volumes fell by 10% compared to the first quarter of 2025. Furthermore, a large, seasoned bulk portfolio that we locked in the first quarter and settled in the second quarter lowered the gross coupon on our pipeline relative to the first quarter.

Additional detail on net interest income is provided in the “Net Interest Income” section that follows.

Mortgage Banking Activities, Net 

Mortgage Banking activities, net increased by $8 million during the second quarter of 2025, primarily due to higher CoreVest Mortgage Banking revenues. 

The increase in CoreVest