Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 345

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 345
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30, 2025 to the immediate preceding quarter ended March 31, 2025 and the year-to-date period ended June 30, 2024.

Table 13 – Legacy Investments Earnings SummaryThree Months EndedSix Months Ended(In Thousands)June 30, 2025March 31, 2025ChangeJune 30, 2025June 30, 2024ChangeNet interest income$(9,449)$1,838 $(11,287)$(7,611)$8,137 $(15,748)Investment fair value changes, net(75,574)(8,731)(66,843)(84,305)(16,902)(67,403)HEI income, net(13,025)10,111 (23,136)(2,914)24,969 (27,883)Fee income, net(985)(870)(115)(1,855)131 (1,986)Operating expenses(7,491)(4,447)(3,044)(11,938)(6,516)(5,422)Benefit from (provision for) income taxes2,535 — 2,535 2,535 — 2,535 Segment Contribution$(103,989)$(2,099)$(101,890)$(106,088)$9,819 $(115,907)

Investment fair value changes, net is primarily comprised of the change in fair value (both realized and unrealized) of our portfolio investments accounted for under the fair value option and interest rate hedges associated with these investments. See Table 3 in the Consolidated Results of Operations in Part I, Item 2 of this Quarterly Report on Form 10-Q for further detail on the composition of investment fair value changes (the difference in amounts in the table above and in Table 3 relates to fair value changes for investments held at corporate/other).

 We hold certain of our investments at our TRS. Activity of this segment that is performed within our TRS is subject to federal and state income taxes. The benefit from income taxes was primarily due to GAAP losses generated by this segment’s operations at our TRS and our provision for income taxes at this segment is primarily driven by the amount of income earned from portfolio assets. 

80

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

The decrease in segment contribution during the three months ended June 30, 202