Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 22

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 22
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 a separate standalone segment in the future, we are including its results within our Sequoia Mortgage Banking segment until this additional conduit activity reaches sufficient scale. 

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The following table presents key earnings and operating metrics for our Sequoia Mortgage Banking segment during the three and six months ended June 30, 2025 to the immediate preceding quarter March 31, 2025 and year-to-date period through June 30, 2024.

Table 5 – Sequoia Mortgage Banking Earnings Summary and Operating MetricsThree Months EndedSix Months Ended(In Thousands)June 30, 2025March 31, 2025ChangeJune 30, 2025June 30, 2024ChangeMortgage banking income$39,915 $40,495 $(580)80,410 $31,293 $49,117 Operating expenses(8,472)(7,417)(1,055)(15,889)(11,297)(4,592)Provision for income taxes(9,289)(7,261)(2,028)(16,551)(3,054)(13,497)Segment Contribution$22,154 $25,817 $(3,663)$47,970 $16,942 $31,028 LPCs entered into (loan locks, adjusted for expected fallout)$3,047,445 $3,303,832 $(256,387)$6,351,277 $3,727,620 $2,623,657 

Operating expenses presented in the table above include general and administrative expenses and loan acquisition costs for this segment.

Activity at this segment is performed within our taxable REIT subsidiary and subject to federal and state income taxes. The provision for income taxes for the periods presented above resulted from GAAP income from these operations at our TRS during that period.

The following table provides the activity of residential consumer loans held in inventory for sale at our Sequoia Mortgage Banking business during the three and six months ended June 30, 2025. 

Table 6 – Loan Inventory for Sequoia Mortgage Banking OperationsThree Months EndedSix Months Ended(In Thousands)June 30, 2025June 30, 2025Balance at beginning of period $1,294,290 $1,013,547 Acquisitions2,859,167 5,242,364 Sales (788,729)(1,212,701)Transfers between segments (1)(