Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 292

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 292
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) at September 30, 2025 and December 31, 2024, and concluded that we had no uncertain tax positions that resulted in material unrecognized tax benefits. As of September 30, 2025, the Company has a valuation allowance of $118 million for certain state deferred tax assets, as it is more likely than not that those assets will not be realized. The Company considers all available evidence, both positive and negative, to analyze the realizability of deferred tax assets. After evaluating these sources of taxable income, and considering the jurisdiction and character of the deferred tax assets, the Company continues to recognize its federal and certain state deferred tax assets of $27 million at September 30, 2025, as it believes it is more likely than not that the net deferred tax assets will be realized.

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025(Unaudited) 

Note 24. Subsequent Events

In October 2025, from our Legacy Investments segment, we sold all $254 million of securities that we had retained from our consolidated Freddie Mac SLST securitization entities and deconsolidated our securitized re-performing loans and related ABS issued. In addition, we exercised our call of the Freddie Mac SLST re-securitization entity and paid off the underlying $125 million of ABS issued. 

Additionally, in October 2025, we retired the remaining $124 million of our maturing 2025 exchangeable senior notes and upsized our secured revolving financing facility with an institutional investment manager from $250 million to $400 million, extending its maturity to 2028. We also revised the certain terms on the warrants issued in conjunction with this financing facility by extending its maturity to 2030 and re-striking the exercise price at a price of $6.96 per share, a 20% premium to the trailing 30-day volume-weighted average price of Redwood common stock. 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

INTRODUCTION 

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. Our MD&A is presented in five main sections: 

•