Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 241

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 241
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26)(8,461)Loan acquisition costs(1,551)(4,097)(14)(239)— (5,901)Other expenses— (5,008)(3,530)— — (8,538)(Provision for) Benefit from income taxes(3,054)1,687 (4,060)— (20)(5,447)Net Income (Loss) (2)$16,942 $(4,914)$84,457 $9,819 $(60,508)$45,796 Total Assets$1,106,416 $371,980 $11,420,075 $3,230,928 $361,705 $16,491,104 (1)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations and Legacy Investments. For mortgage banking, also includes other derivative financial instruments such as loan purchase commitments and interest rate locks. (2)Net Income (Loss) by segment is also referred to as Segment Contribution.

15

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

Note 5. Mortgage Banking Activities, Net

The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income for the three and six months ended June 30, 2025 and 2024.Table 5.1 – Mortgage Banking ActivitiesThree Months Ended June 30,Six Months Ended June 30,(In Thousands)2025202420252024Sequoia Mortgage Banking Activities, Net:Changes in fair value of:Residential consumer loans, at fair value (1)$15,095 $14,305 $45,694 $10,451 Trading securities (2)(38,645)2,611 (67,972)11,122 Risk management derivatives (3)47,028 (12,019)67,815 (8,930)Other income, net (4)921 1,348 1,013 1,429 Total Sequoia mortgage banking activities, net24,399 6,245 46,550 14,072 CoreVest Mortgage Banking Activities, Net:Changes in fair value of:Residential investor term loans, at fair value (1)4,560 6,068 11,490 5