Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 286

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 286
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 Accumulated Other Comprehensive LossAffected Line Item in theThree Months Ended September 30,(In Thousands)Income Statement20252024Net Realized (Gain) Loss on AFS SecuritiesDecrease in allowance for credit losses on AFS securitiesInvestment fair value changes, net$(44)$(472)(Gain) on sale of AFS securitiesRealized gains, net— — $(44)$(472)Net Realized Loss on Interest Rate Agreements Designated as Cash Flow HedgesAmortization of deferred lossInterest expense$1,040 $1,040 $1,040 $1,040 Amount Reclassified From Accumulated Other Comprehensive LossAffected Line Item in theNine Months Ended September 30,(In Thousands)Income Statement20252024Net Realized (Gain) Loss on AFS Securities(Decrease) increase in allowance for credit losses on AFS securitiesInvestment fair value changes, net$(126)$(1,615)(Gain) on sale of AFS securitiesRealized gains, net(1,911)— $(2,037)$(1,615)Net Realized Loss on Interest Rate Agreements Designated as Cash Flow HedgesAmortization of deferred lossInterest expense$3,087 $3,098 $3,087 $3,098 We have an established program to sell common stock from time to time in at-the-market ("ATM") offerings. During the nine months ended September 30, 2025, we did not issue any shares of common stock under this program. At September 30, 2025, the remaining share issuance capacity under this program was approximately $50 million.Issuance of Preferred StockWe issued 2.8 million shares of 10.00% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock ("Series A Preferred Stock") for gross proceeds of $70 million and net proceeds of approximately $67 million, after deducting the underwriting discount and other estimated expenses. The Series A Preferred Stock pays quarterly cumulative cash dividends through January 15, 2028 at a fixed annual rate of 10%, based on the stated liquidation preference of $25.00 per share, in arrears, when authorized by Redwood's Board of Directors and declared by the Company. Starting April 15, 2028, the annual dividend rate will reset to the five-year U.S. Treasury Rate plus a spread of 6.278%. The Series A Preferred