Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 305

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 7
Chunk 305
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 $(1,100)Total Market Valuation Gains, Net$108,422 $35,814 

(1)Represents fair value changes on trading securities that are being used along with risk management derivatives to manage the market risks associated with our Sequoia Mortgage Banking operations.

(2)Mortgage banking activities, net presented above does not include fee income from loan originations or acquisitions, provisions for repurchases, or other expenses that are components of Mortgage banking activities, net presented on our consolidated statements of income, as these amounts do not represent market valuation changes.

(3)Includes changes in fair value of securitized loans held-for-investment, securitized HEI, REO and the ABS issued at the entities, which, netted together, represent the change in value of our investments at the consolidated VIEs accounted for under the CFE election.

(4)Other investments includes changes in fair value of REO assets.

(5)Other income excludes net MSR fee income or provision for repurchases, as these amounts do not represent market valuation adjustments.

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Results of Operations by Segment

We report on our business using three segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, and Redwood Investments. For additional information on our segments, refer to Part I, Item 1, and Note 4 in Part II, Item 8 of this Annual Report on Form 10-K.

The following table presents the segment contribution from our three segments reconciled to our consolidated net income (loss) for the years ended December 31, 2024 and 2023.

Table 4 – Segment Results SummaryYears Ended December 31,(In Thousands)20242023ChangeSegment Contribution from:Sequoia Mortgage Banking$61,497 $10,052 $51,445 CoreVest Mortgage Banking2,294 (12,575)14,869 Redwood Investments133,187 113,909 19,278 Corporate/Other(142,974)(113,660)(29,314)Net Income (Loss)$54,004 $(2,274)$56,278 

The sections that follow provide further detail on our business segments and their results of operations for the years ended December 31, 2024 and 2023.

Corporate/Other

The increase in net expenses from Corporate/Other for the year ended December 31, 2024 was related to an increase in variable and equity compensation expense associated with improved