REDWOOD TRUST INC

For the period ended Jun 30, 2024. Filed Aug 7, 2024.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 7, 2024

RWT$3.12+0.3%Stored close · as of Nov 6, 2026

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UNITED STATES OF AMERICA

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended: June 30, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from _______________ to _______________.

Commission File Number 1-13759

REDWOOD TRUST, INC.

(Exact Name of Registrant as Specified in Its Charter)

Maryland	68-0329422
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

One Belvedere Place, · Suite 300
Mill Valley,	California		94941
(Address of Principal Executive Offices)		(Zip Code)

(415)389-7373

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes☐ No☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01 per share	RWT	New York Stock Exchange
10% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock, par value $0.01 per share	RWT PRA	New York Stock Exchange
9.125% Senior Notes Due 2029	RWTN	New York Stock Exchange
9.0% Senior Notes Due 2029	RWTO	New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common Stock, $0.01 par value per share	132,215,757	shares outstanding as of August 7, 2024

REDWOOD TRUST, INC.

2024 FORM 10-Q REPORT

TABLE OF CONTENTS

Page
PART I — · FINANCIAL INFORMATION
Item 1.	Financial Statements		2
	Consolidated Balance Sheets at June 30, 2024 (Unaudited) and December 31, 2023		2
	Consolidated Statements of Income for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited)		3
	Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited)		4
	Consolidated Statements of Changes in Stockholders' Equity for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited)		5
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (Unaudited)		7
	Notes to Consolidated Financial Statements (Unaudited)		9
	Note 1. Organization		9
	Note 2. Basis of Presentation		9
	Note 3. Summary of Significant Accounting Policies		10
	Note 4. Segment Information		12
	Note 5. Mortgage Banking Activities, Net		17
	Note 6. Fair Value of Financial Instruments		18
	Note 7. Residential Consumer Loans		27
	Note 8. Residential Investor Loans		31
	Note 9. Consolidated Agency Multifamily Loans		37
	Note 10. Real Estate Securities		38
	Note 11. Home Equity Investments (HEI)		44
	Note 12. Other Investments		46
	Note 13. Derivative Financial Instruments		48
	Note 14. Other Assets and Liabilities		52
	Note 15. Principles of Consolidation		63
	Note 16. Asset-Backed Securities Issued		63
	Note 17. Debt Obligations		65
	Note 18. Commitments and Contingencies		68
	Note 19. Equity		70
	Note 20. Earnings Per Share		73
	Note 21. Equity Compensation Plans		74
	Note 22. Operating Expenses		76
	Note 23. Taxes		77
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		78
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		110
Item 4.	Controls and Procedures		110
PART II —	OTHER INFORMATION
Item 1.	Legal Proceedings		111
Item 1A.	Risk Factors		111
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		111
Item 3.	Defaults Upon Senior Securities		111
Item 4.	Mine Safety Disclosures (Not Applicable)		111
Item 5.	Other Information		111
Item 6.	Exhibits		113
Signatures		115

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