Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 167

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 167
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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)(2,000,800)(3,665,115)Principal repayments(25,969)(45,465)Changes in fair value, net12,823 18,152 Balance at End of Period$1,350,782 $1,350,782 

(1)Represents the fair value of the net transfers of loans from held-for-sale to held-for-investment within our Red