Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 271

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 271
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 driven by an increase in variable and equity compensation expense as well as higher portfolio management and loan acquisition costs related to specially serviced residential investor bridge loans.

Additional detail on our General and administrative expenses is presented in Table 22.1 of our Notes to Consolidated Financial Statements in Part 1, Item 1 of this Quarterly Report on Form 10-Q.

Provision for Income Taxes

Our provision for income taxes is almost entirely related to activity at our taxable REIT subsidiaries ("TRS"), which primarily includes our mortgage banking activities and MSR investments, as well as certain other investment and hedging activities. The increase in the tax provision in the three months ended March 31, 2025 was primarily the result of a higher effective rate compared to the first quarter of 2024.

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Consolidated Net Interest Income 

The following tables present the components of net interest income recorded in each line item of our consolidated statements of income for the three months ended March 31, 2025 to the immediate preceding quarter ended December 31, 2024 and year-to-date period ended March 31, 2024. 

Table 2 – Consolidated Net Interest IncomeThree Months EndedMarch 31, 2025December 31, 2024(Dollars in Thousands)Interest Income/ (Expense) Average    Balance (1)YieldInterest Income/ (Expense) Average    Balance (1)YieldInterest IncomeResidential consumer loans  Unsecuritized $15,726 $966,777 6.5 %$20,457 $1,239,483 6.6 %Securitized - Sequoia (2)132,882 9,540,373 5.6 %121,387 8,762,162 5.5 %Securitized - SLST (re-performing loans) (2)13,735 1,237,704 4.4 %13,818 1,298,793 4.3 %Total residential consumer loans$162,343 $11,744,854 5.5 %$155,662 $11,300,438 5.5 %Residential investor loansUnsecuritized - Term2,625 160,895 6.5 %2,429 193,785 5.0 %Unsecuritized - Bridge22,064 1,124,335 7