Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 29

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 2
Chunk 29
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-performing loans, servicing investments, HEI investments and other third party securities that reflect our long-term thesis on housing credit. Legacy Bridge Investments primarily consists of unsecuritized bridge loans of the 2021 and 2022 vintage. There was no impact to the segment financial results as a result of this change. All prior period amounts presented within this quarterly report related to these changes in this document were conformed to this presentation. 

This segment’s main sources of income are net interest income and other income from investments, changes in fair value of investments and associated hedges, and realized gains and losses upon the sale of securities. Direct operating expenses and tax provisions associated with these activities are also included in this segment.

The following table presents an earnings summary for our Redwood Investments segment for the three months ended March 31, 2025 to the immediate preceding quarter ended December 31, 2024 and the year-to-date period ended March 31, 2024.

Table 9 – Redwood Investments Earnings SummaryThree Months EndedThree Months Ended(In Thousands)March 31, 2025December 31, 2024ChangeMarch 31, 2025March 31, 2024ChangeNet interest income$23,453 $23,650 $(197)$23,453 $29,599 $(6,146)Investment fair value changes, net(5,108)(24,850)19,742 (5,108)21,187 (26,295)HEI income, net10,166 6,389 3,777 10,166 9,086 1,080 Servicing income3,407 6,390 (2,983)3,407 4,225 (818)Fee income, net(728)(119)(609)(728)375 (1,103)Other income, net370 982 (612)370 170 200 Realized gains, net567 40 527 567 314 253 Operating expenses(9,563)(7,590)(1,973)(9,563)(6,318)(3,245)Benefit from (provision for) income taxes304 (2,131)2,435 304 (1,146)1,450 Segment Contribution$22,868 $2,761 $20,107 $22,868 $57,492 $(34,624)

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