Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 279

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 279
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, 2024ChangeMarch 31, 2025March 31, 2024ChangeMortgage banking income$40,495 $33,817 $6,678 40,495 $13,874 $26,621 Operating expenses(7,417)(6,039)(1,378)(7,417)(5,361)(2,056)Provision for income taxes(7,261)(5,979)(1,282)(7,261)(1,494)(5,767)Segment Contribution$25,817 $21,799 $4,018 $25,817 $7,019 $18,798 LPCs entered into (loan locks, adjusted for expected fallout)$3,303,832 $1,872,677 $1,431,155 $3,303,832 $1,293,622 $2,010,210 

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 months ended March 31, 2025. 

Table 6 – Loan Inventory for Sequoia Mortgage Banking OperationsThree Months Ended(In Thousands)March 31, 2025Balance at beginning of period $1,013,547 Acquisitions2,383,197 Sales (423,972)Transfers between segments (1)(1,664,315)Principal repayments(19,496)Changes in fair value, net5,329 Balance at End of Period$1,294,290 

(1)Represents the fair value of the net transfers of loans from held-for-sale to held-for-investment within our Redwood Investments Portfolio, associated with securitizations we sponsored that we consolidate under GAAP.

Three Months Ended March 31, 2025 Compared to Three Months Ended December 31, 2024 

The increase in segment contribution in the three months ended March 31, 2025, as compared to the three months ended December 31, 2024, is due to higher loan purchase and lock volumes, driven