Company: RWT-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000930236-25-000029
Chunk: 114

Company: REDWOOD TRUST INC
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 114
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)341,616 (496)157,985 Total Liabilities (1)$(68,826)$5,841,116 $(23,660)$2,338,485 Total Derivatives, Net (1)$150,971 $22,366,020 $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.

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025(Unaudited) Note 13. Derivative Financial Instruments - (continued)

The following table presents the market valuation gains and losses on our derivatives for the three and six months ended June 30, 2025 and 2024.Table 13.2 – Market Valuation Gains (Losses) on Derivatives, netThree Months Ended June 30, 2025Three Months Ended June 30, 2024(In Thousands)Risk Management Derivatives (1)$65,119 $(9,842)LPCs and IRLCs (2)8,635 7,881 Market Valuation Gains (Losses) on Derivatives, net$73,754 $(1,961)Six Months Ended June 30, 2025Six Months Ended June 30, 2024(In Thousands)Risk Management Derivatives (1)$103,592 $137 LPCs and IRLCs (2)39,889 1,530 Market Valuation Gains on Derivatives, net$143,481 $1,667 (1)Market valuation gains (losses) 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.Derivatives Designated as Cash Flow HedgesFor interest rate agreements previously designated as cash flow hedges, our total unrealized loss reported in Accumulated other comprehensive loss was $62 million and $64 million at June 30, 2025 and December 31, 2024, respectively. We