Company: RWT-PA
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000930236-25-000020
Chunk: 152

Company: REDWOOD TRUST INC
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 1
Chunk 152
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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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The following table presents an earnings summary of our Redwood Investments segment for the three months ended March 31, 2025 to the immediate preceding quarter ended December 31, 2024 broken out by our strategies within the Redwood Investments segment.

Table 10 – Redwood Investments Earnings Summary by StrategyThree Months EndedThree Months Ended(In Thousands)March 31, 2025December 31, 2024ChangeMarch 31, 2025March 31, 2024ChangeRetained Operating Investments$23,031 $27,343 $(4,312)$23,031 $44,699 $(21,668)Third-Party Portfolio Investments33,788 2,015 31,773 33,788 16,502 17,286 Legacy Bridge Investments(33,951)(26,597)(7,354)(33,951)(3,709)(30,242)Segment Contribution$22,868 $2,761 $20,107 $22,868 $57,492 $(34,624)

Investment fair value changes, net is primarily comprised of the change in fair value (both realized and unrealized) of our portfolio investments accounted for under the fair value option and interest rate hedges associated with these investments. See Table 3 in the Consolidated Results of Operations in Part I, Item 2 of this Quarterly Report on Form 10-Q for further detail on the composition of investment fair value changes (the difference in amounts in the table above and in Table 3 relates to fair value changes for investments held at corporate/other).

 We hold certain of our investments, primarily our MSRs, at our TRS. Activity of this segment that is performed within/at our TRS is subject to federal and state income taxes. The benefit from income taxes was primarily due to GAAP losses generated by this segment’s operations at our TRS and our provision for income taxes at this segment is primarily driven by the amount of income earned from portfolio assets. 

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