Company: RWT-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000930236-25-000037
Chunk: 251

Company: REDWOOD TRUST INC
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 251
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 gains, net, in our consolidated statements of income. During the three and nine months ended September 30, 2025, we recognized net gains of zero and $1.2 million, respectively, on sales of AFS securities. For the three and nine months ended September 30, 2024 we did not sell any AFS securities. During the three and nine months ended September 30, 2025, we had $2 million and $6 million of net unrealized gains on AFS securities, respectively.At September 30, 2025, we had zero AFS securities with contractual maturities less than five years, $5 million AFS securities with contractual maturities greater than five years but less than ten years, and the remainder of our AFS securities had contractual maturities greater than ten years.

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025(Unaudited) Note 9. Real Estate Securities - (continued)

AFS Securities with Unrealized LossesThe following table presents the total carrying value (fair value) and unrealized losses of residential AFS securities that were in a gross unrealized loss position at September 30, 2025 and December 31, 2024.Table 9.3 – AFS Securities in Gross Unrealized Loss Position by Holding Periods Less Than 12 Consecutive Months12 Consecutive Months or LongerFairValueUnrealizedLossesFairValueUnrealized Losses(In Thousands)September 30, 2025$— $— $21,315 $(3,852)December 31, 202430,351 (391)19,817 (5,283)At September 30, 2025, after giving effect to purchases, sales, and extinguishment due to credit losses, our consolidated balance sheets included 63 AFS securities, of which 11 were in an unrealized loss position and 11 were in a continuous unrealized loss position for 12 consecutive months or longer. At December 31, 2024, our consolidated balance sheets included 90 AFS securities, of which 20 were in an unrealized loss position and 11 were in a continuous unrealized loss position for 12 consecutive months or longer.Allowance for Credit LossesCredit impairments on our AFS securities are recorded in earnings using an allowance for credit losses, with the allowance limited to the amount