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Loans (Tables) | 9 Months Ended
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Sep. 30, 2014
Residential Loans |
Summary of Classifications and Carrying Value of Loans | The following table summarizes the classifications and carrying value of the residential loans owned at Redwood and at consolidated Sequoia Entities at September 30, 2014 and December 31, 2013.
September 30, 2014 (In Thousands) |  | Redwood |  |  | Sequoia |  |  | Total |
Held-for-sale |  |  |  |  |  |  |  |  |  |  |  |
Fair value - Conforming |  | $ | 399,145 |  |  | $ | - |  |  | $ | 399,145 |
Fair value - Jumbo |  |  | 1,101,782 |  |  |  | - |  |  |  | 1,101,782 |
Lower of cost or fair value |  |  | 1,502 |  |  |  | - |  |  |  | 1,502 |
Held-for-investment |  |  |  |  |  |  |  |  |  |  |  |
Fair value - Jumbo |  |  | 238,651 |  |  |  | - |  |  |  | 238,651 |
At amortized cost |  |  | - |  |  |  | 1,546,507 |  |  |  | 1,546,507 |
Total Residential Loans |  | $ | 1,741,080 |  |  | $ | 1,546,507 |  |  | $ | 3,287,587 |
December 31, 2013 (In Thousands) |  | Redwood |  |  | Sequoia |  |  | Total |
Held-for-sale |  |  |  |  |  |  |  |  |  |  |  |
Fair value - Conforming |  | $ | 11,502 |  |  | $ | - |  |  | $ | 11,502 |
Fair value - Jumbo |  |  | 391,100 |  |  |  | - |  |  |  | 391,100 |
Lower of cost or fair value |  |  | 1,665 |  |  |  | - |  |  |  | 1,665 |
Held-for-investment, at amortized cost |  |  | - |  |  |  | 1,762,167 |  |  |  | 1,762,167 |
Total Residential Loans |  | $ | 404,267 |  |  | $ | 1,762,167 |  |  | $ | 2,166,434 |
Carrying Value for Loans Held-for-Investment | The following table details the carrying value for residential loans held-for-investment at amortized cost at September 30, 2014 and December 31, 2013. These loans are owned at Sequoia securitization entities that we consolidate for financial reporting purposes.
(In Thousands) |  | September 30, 2014 |  |  | December 31, 2013 |
Principal balance |  | $ | 1,554,876 |  |  | $ | 1,770,803 |
Unamortized premium, net |  |  | 13,540 |  |  |  | 16,791 |
Recorded investment |  |  | 1,568,416 |  |  |  | 1,787,594 |
Allowance for loan losses |  |  | (21,909) |  |  |  | (25,427) |
Carrying Value |  | $ | 1,546,507 |  |  | $ | 1,762,167 |
Recorded Investment in Residential Loans Held-For-Investment Organized by Year of Origination | The following table displays our recorded investment in residential loans held-for-investment at September 30, 2014 and December 31, 2013, organized by year of origination.
(In Thousands) |  | September 30, 2014 |  |  | December 31, 2013 |
2003 & Earlier |  | $ | 758,768 |  |  | $ | 881,364 |
2004 |  |  | 459,050 |  |  |  | 513,458 |
2005 |  |  | 59,946 |  |  |  | 62,675 |
2006 |  |  | 138,263 |  |  |  | 149,776 |
2007 |  |  | - |  |  |  | - |
2008 |  |  | - |  |  |  | - |
2009 |  |  | 19,273 |  |  |  | 25,860 |
2010 |  |  | 80,209 |  |  |  | 92,728 |
2011 |  |  | 52,907 |  |  |  | 61,733 |
Total Recorded Investment |  | $ | 1,568,416 |  |  | $ | 1,787,594 |
Summary of Activity in Allowance for Loans Losses | The following table summarizes the activity in the allowance for loan losses for the three and nine months ended September 30, 2014 and 2013.
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(In Thousands) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Balance at beginning of period |  | $ | 23,972 |  |  | $ | 23,150 |  |  | $ | 25,427 |  |  | $ | 28,504 |
Charge-offs, net |  |  | (1,355) |  |  |  | (818) |  |  |  | (2,833) |  |  |  | (3,363) |
(Reversal of provision) provision for loan losses |  |  | (708) |  |  |  | 883 |  |  |  | (685) |  |  |  | (1,926) |
Balance at End of Period |  | $ | 21,909 |  |  | $ | 23,215 |  |  | $ | 21,909 |  |  | $ | 23,215 |
Loan Modifications Determined to be Troubled Debt Restructuring | The following table presents the details of the loan modifications determined to be TDRs for the three and nine months ended September 30, 2014 and 2013.
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(Dollars in Thousands) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
TDRs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Number of modifications |  |  | 8 |  |  |  | 5 |  |  |  | 22 |  |  |  | 12 |
Pre-modification outstanding recorded investment |  | $ | 2,041 |  |  | $ | 1,144 |  |  | $ | 7,008 |  |  | $ | 2,939 |
Post-modification outstanding recorded investment |  |  | 2,081 |  |  |  | 898 |  |  |  | 7,245 |  |  |  | 2,838 |
Loan modification effect on net interest income after provision and other MVA |  |  | (494) |  |  |  | (555) |  |  |  | (1,714) |  |  |  | (863) |
TDRs that Subsequently Defaulted |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Number of modifications |  |  | 3 |  |  |  | 1 |  |  |  | 9 |  |  |  | 4 |
Recorded investment |  | $ | 672 |  |  | $ | 201 |  |  | $ | 3,165 |  |  | $ | 788 |
Commercial Loans |
Summary of Classifications and Carrying Value of Loans | The following table summarizes the classifications and carrying value of commercial loans at September 30, 2014 and December 31, 2013.
(In Thousands) |  | September 30, 2014 |  |  | December 31, 2013 |
Held-for-sale, at fair value |  | $ | 104,709 |  |  | $ | 89,111 |
Held-for-investment |  |  |  |  |  |  |  |
At fair value |  |  | 70,712 |  |  |  | - |
At amortized cost |  |  | 322,576 |  |  |  | 343,344 |
Total Commercial Loans |  | $ | 497,997 |  |  | $ | 432,455 |
Carrying Value for Loans Held-for-Investment | The following table provides additional information for our commercial loans held-for-investment at amortized cost at September 30, 2014 and December 31, 2013.
(In Thousands) |  | September 30, 2014 |  |  | December 31, 2013 |
Principal balance |  | $ | 332,258 |  |  | $ | 353,331 |
Unamortized discount, net |  |  | (2,253) |  |  |  | (2,614) |
Recorded investment |  |  | 330,005 |  |  |  | 350,717 |
Allowance for loan losses |  |  | (7,429) |  |  |  | (7,373) |
Carrying Value |  | $ | 322,576 |  |  | $ | 343,344 |
Summary of Activity in Allowance for Loans Losses | The following table summarizes the activity in the allowance for commercial loan losses for the three and nine months ended September 30, 2014 and 2013.
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(In Thousands) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Balance at beginning of period |  | $ | 8,317 |  |  | $ | 5,660 |  |  | $ | 7,373 |  |  | $ | 4,084 |
Charge-offs, net |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Reversal of provision (provision) for loan losses |  |  | (888) |  |  |  | 844 |  |  |  | 56 |  |  |  | 2,420 |
Balance at End of Period |  | $ | 7,429 |  |  | $ | 6,504 |  |  | $ | 7,429 |  |  | $ | 6,504 |
Commercial Loans Held For Investment |
Commercial Loans Held-for-Investment by Risk Category | The following table presents the principal balance of commercial loans held-for-investment by risk category.
(In Thousands) |  | September 30, 2014 |  |  | December 31, 2013 |
Pass |  | $ | 306,575 |  |  | $ | 309,792 |
Watch list |  |  | 25,683 |  |  |  | 43,539 |
Total Commercial Loans Held-for-Investment |  | $ | 332,258 |  |  | $ | 353,331 |
Collectively Evaluated for Impairment | Residential Loans |
Loans Evaluated for Impairment | The following table summarizes the balances for loans collectively evaluated for impairment at September 30, 2014 and December 31, 2013.
(In Thousands) |  | September 30, 2014 |  |  | December 31, 2013 |
Principal balance |  | $ | 1,539,330 |  |  | $ | 1,762,165 |
Recorded investment |  |  | 1,553,147 |  |  |  | 1,779,161 |
Related allowance |  |  | 20,580 |  |  |  | 24,762 |
Recorded Investment and Past Due Status of Loans | The following table summarizes the recorded investment and past due status of residential loans collectively evaluated for impairment at September 30, 2014 and December 31, 2013.
(In Thousands) |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90+ Days Past Due |  |  | Current |  |  | Total Loans |
September 30, 2014 |  | $ | 25,885 |  |  | $ | 10,046 |  |  | $ | 73,355 |  |  | $ | 1,443,861 |  |  | $ | 1,553,147 |
December 31, 2013 |  |  | 34,187 |  |  |  | 13,248 |  |  |  | 79,010 |  |  |  | 1,652,716 |  |  |  | 1,779,161 |
Collectively Evaluated for Impairment | Commercial Loans |
Loans Evaluated for Impairment | The following table summarizes the balances for loans collectively evaluated for impairment at September 30, 2014 and December 31, 2013.
(In Thousands) |  | September 30, 2014 |  |  | December 31, 2013 |
Principal balance |  | $ | 332,258 |  |  | $ | 353,331 |
Recorded investment |  |  | 330,005 |  |  |  | 350,717 |
Related allowance |  |  | 7,429 |  |  |  | 7,373 |
Individually Evaluated for Impairment | Residential Loans |
Recorded Investment and Past Due Status of Loans | The following table summarizes the recorded investment and past due status of residential loans individually evaluated for impairment at September 30, 2014 and December 31, 2013.
(In Thousands) |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90+ Days Past Due |  |  | Current |  |  | Total Loans |
September 30, 2014 |  | $ | 1,842 |  |  | $ | 1,538 |  |  | $ | 544 |  |  | $ | 11,345 |  |  | $ | 15,269 |
December 31, 2013 |  |  | 1,560 |  |  |  | - |  |  |  | 567 |  |  |  | 6,306 |  |  |  | 8,433 |
Loans Evaluated for Impairment | The following table summarizes the balances for loans individually evaluated for impairment, all of which had an allowance, at September 30, 2014 and December 31, 2013.
(In Thousands) |  | September 30, 2014 |  |  | December 31, 2013 |
Principal balance |  | $ | 15,546 |  |  | $ | 8,638 |
Recorded investment |  |  | 15,269 |  |  |  | 8,433 |
Related allowance |  |  | 1,329 |  |  |  | 665 |

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=35738203&loc=SL6953659-111524 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 55 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=32702940&loc=SL6953803-111525 + Details
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