Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 237

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 237
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 risks associated with our mortgage banking operations, Redwood Investments 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.

12

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025(Unaudited) Note 4. Segment Information - (continued)

Six Months Ended June 30, 2025(In Thousands)Sequoia Mortgage BankingCoreVest Mortgage BankingRedwood InvestmentsLegacy InvestmentsCorporate/OtherTotalInterest income$68,704 $8,131 $421,313 $57,601 $681 $556,430 Interest expense(34,841)(4,293)(377,601)(65,212)(32,707)(514,654)Net interest income (expense)33,863 3,838 43,712 (7,611)(32,026)41,776 Non-interest incomeMortgage banking activities, net, excluding risk management derivatives(21,268)29,201 — — — 7,933 Risk management derivatives gains, net (1)67,815 (1,838)— — — 65,977 Total Mortgage banking activities, net46,547 27,363 — — — 73,910 Investment fair value changes, net, excluding risk management derivatives— — (49,626)(77,677)(212)(127,515)Risk management derivatives gains (losses), net (1)— — 44,251 (6,628)— 37,623 Total Investment fair value changes, net— — (5,375)(84,305)(212)(89,892)HEI income (loss), net— — 181 (2,914)— (2,733)Servicing income, net— — 5,015 — — 5,015 Fee income (loss), net— 5,861 554 (1,855)— 4,560 Other income (loss), net— 2,397 764 — (1,259)1,902 Realized gains, net— — 1,207 — — 1,207 Total non-interest income (loss),