Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 234

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 234
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 Total Assets (1)$158,909 $11,092,757 $46,003 $9,877,388 Liabilities - Risk Management DerivativesTBAs$(3,454)$800,500 $(16,249)$1,350,000 Interest rate futures(4,683)784,500 (6,915)830,500 Liabilities - Other DerivativesLPCs (2)(4,698)638,878 (496)157,985 Total Liabilities (1)$(12,835)$2,223,878 $(23,660)$2,338,485 Total Derivatives, Net (1)$146,074 $13,316,635 $22,343 $12,215,873 (1)For the purpose of this presentation, derivative assets and liabilities are presented on a gross and a net basis.(2)Included in this balance is a $1 billion loan purchase commitment we executed during the three months ended March 31, 2025 with a large money-center bank to acquire a pool of primarily seasoned jumbo loans. This trade has subsequently settled in the second quarter of 2025. See further details in Note 7. The following table presents the market valuation gains and losses on our derivatives for the three months ended March 31, 2025 and 2024.Table 13.2 – Market Valuation Gains (Losses) on Derivatives, netThree Months Ended March 31, 2025Three Months Ended March 31, 2024(In Thousands)Risk Management Derivatives (1)$38,473 $9,979 LPCs and IRLCs (2)31,254 (6,351)Market Valuation Gains on Derivatives, net$69,727 $3,628 (1)Market valuation gains on risk management derivatives used to manage the mark-to-market risks associated with our Mortgage Banking operations are recorded in Mortgage banking activities, net and market valuation gains (losses) on all other derivatives are recorded in Investment fair value changes, net on our consolidated statements of income.(2)Market valuation gains (losses) on LPCs and IRLCs are recorded in Mortgage banking activities, net on our consolidated statements of income.

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2025