Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 66

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 on Form 10-K for the year ended December 31, 2024, with the exception of allocations of certain corporate expenses not directly assigned or allocated to one of our three segments. These unallocated corporate expenses are included in the Corporate/Other column as reconciling items to our consolidated financial statements and primarily include interest expense for our senior notes, convertible and exchangeable senior notes, and trust preferred securities, indirect general and administrative expenses and other expense. In the normal course of business, loans are originated and acquired at our mortgage banking segments and may subsequently be transferred to our Redwood Investments segment either as whole loans or through the retention of securities from securitizations we sponsor and consolidate under GAAP. All of our loans are accounted for under the fair value option and amounts transferred between segments are accounted for at fair value at the time of transfer.

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REDWOOD TRUST, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2025(Unaudited) Note 4. Segment Information - (continued)

The following tables present financial information by segment for the three months ended March 31, 2025 and 2024.Table 4.1 – Business Segment Financial Information Three Months Ended March 31, 2025(In Thousands)Sequoia Mortgage BankingCoreVest Mortgage BankingRedwood InvestmentsCorporate/OtherTotalInterest income$31,683 $4,394 $235,721 $296 $272,094 Interest expense(13,339)(2,389)(212,268)(16,156)(244,152)Net interest income (expense)18,344 2,005 23,453 (15,860)27,942 Non-interest incomeMortgage banking activities, net, excluding risk management derivatives1,364 13,847 — — 15,211 Risk management derivatives gains (losses), net (1)20,787 (2,945)— — 17,842 Total Mortgage banking activities, net22,151 10,902 — — 33,053 Investment fair value changes, net, excluding risk management derivatives— — (25,739)(80)(25,819)Risk management derivatives gains, net (1)— — 20,631 — 20,631 Total Investment fair value changes, net— — (5,108)(80)(5,188)HEI income,