Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 304

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 304
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051 12,303 6,968 Systems and consulting3,983 3,254 7,767 6,455 Office costs1,895 2,076 3,874 4,158 Accounting and legal1,516 789 3,115 2,006 Corporate costs930 985 1,668 1,857 Other1,810 1,718 3,587 3,254 Total General and Administrative Expenses$36,983 $33,284 $74,454 $67,853 (1)Includes $2 million of severance and transition-related expenses for the six months ended June 30, 2024.(2)For the three months ended June 30, 2025 and 2024, long-term incentive award expense included $6 million and $7 million of expense, respectively, with $5 million awards settleable in shares of our common stock, and $1 million and $2 million awards settleable in cash. For the six months ended June 30, 2025 and 2024, long-term incentive award expense included $11 million and $14 million of expense, respectively, with $9 million and $11 million awards settleable in shares of our common stock, and $2 million and $3 million awards settleable in cash.For additional information related to cash-settled long-term incentive awards, see Note 14 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024.

Note 23. Taxes

The Company's effective income tax rate differs from the federal corporate tax rate of 21.0%, primarily as a result of state taxes and REIT GAAP income not subject to federal income tax.The Company's effective tax rate was (15.1)% and 10.6% for the six months ended June 30, 2025 and 2024.We assessed our tax positions for all open tax years (i.e., Federal, 2021 to 2025, and State, 2020 to 2025) at June 30, 2025 and December 31, 2024, and concluded that we had no uncertain tax positions that resulted in material unrecognized tax benefits. As of June 30, 2025, the Company has a valuation allowance of $118 million for certain state deferred tax assets