Company: RWT-PA
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0000930236-25-000007
Chunk: 113

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: 10-K
Item: Item 16
Chunk 113
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 31, 2024, the carrying value of our investment in the joint venture was $26 million. We account for our investment in the joint venture under the equity method of accounting as we have a minority non-controlling interest approximating 20% across both Redwood's direct equity capital contribution to this joint venture structure and joint venture co-investments to be held in Redwood's investment portfolio, but we are deemed to be able to exert significant influence over the affairs of the joint venture. We adjust the carrying value of our equity method investment for our share of earnings or losses, dividends or return of capital on a quarterly basis. We recognized net equity method earnings of $1 million for the year ended December 31, 2024, through Other income, net in our Consolidated statements of income. See Note 8 for further information on residential investor bridge loans sold to these joint ventures.

F- 51

REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024

Note 12. Derivative Financial Instruments

The following table presents the fair value and notional amount of our derivative financial instruments at December 31, 2024 and 2023.Table 12.1 – Fair Value and Notional Amount of Derivative Financial InstrumentsDecember 31, 2024December 31, 2023FairValueNotionalAmountFairValueNotionalAmount(In Thousands)Assets - Risk Management DerivativesInterest rate swaps$— $— $1,742 $50,000 TBAs— — 952 385,000 Interest rate futures16,446 712,500 — — Swaptions23,738 8,245,000 — — Assets - Other DerivativesLPCs and IRLCs5,819 919,888 11,518 216,194 Total Assets (1)$46,003 $9,877,388 $14,212 $651,194 Liabilities - Risk Management DerivativesTBAs$(16,249)$1,350,000 $(27,020)$1,405,000 Interest rate futures(6,915)830,500 (3,394)141,500 Liabilities - Other DerivativesLoan purchase commitments(496)157,985 (3,414)430,983 Total Liabilities (1)$(