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Segment Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
Redwood operates in three segments: Residential Lending, Business Purpose Lending, and Third-Party Investments. For a full description of our segments, see Part I, Item 1—Business in our Annual Report on Form 10-K for the year ended December 31, 2020.
Segment contribution represents the measure of profit that management uses to assess the performance of our business segments and make resource allocation and operating decisions. Certain corporate expenses not directly assigned or allocated to one of our three segments, as well as activity from certain consolidated Sequoia entities, are included in the Corporate/Other column as reconciling items to our consolidated financial statements. These unallocated corporate expenses primarily include interest expense and realized gains from the repurchase of our convertible notes and trust preferred securities, indirect general and administrative expenses and other expense.
The following tables present financial information by segment for the three months ended March 31, 2021 and 2020.
Table 23.1 – Business Segment Financial Information
Three Months Ended March 31, 2021
(In Thousands)Residential LendingBusiness Purpose LendingThird-Party Investments Corporate/
Other 		 Total
Interest income$27,548 $64,405 $34,990 $1,362 $128,305 
Interest expense(19,037)(50,075)(23,179)(10,261)(102,552)
Net interest income8,511 14,330 11,811 (8,899)25,753 
Non-interest income
Mortgage banking activities, net61,435 21,172 — — 82,607 
Investment fair value changes, net2,746 3,299 39,716 (674)45,087 
Other income, net2,853 843 — 147 3,843 
Realized gains, net2,408 108 200 — 2,716 
Total non-interest income (loss), net69,442 25,422 39,916 (527)134,253 
General and administrative expenses(13,757)(11,159)(1,131)(17,504)(43,551)
Loan acquisition costs(1,416)(2,052)(87)(4)(3,559)
Other expenses(6)(3,777)(330)17 (4,096)
Provision for income taxes(9,979)(1,321)(243)— (11,543)
Segment Contribution$52,795 $21,443 $49,936 $(26,917)
Net Income$97,257 
Non-cash amortization (expense) income, net$1,666 $(5,857)$(144)$(1,895)$(6,230)

Three Months Ended March 31, 2020
(In Thousands)Residential LendingBusiness Purpose LendingThird-Party Investments Corporate/
Other 		 Total
Interest income$60,631 $53,060 $81,196 $3,194 $198,081 
Interest expense(37,562)(32,353)(62,501)(14,255)(146,671)
Net interest income23,069 20,707 18,695 (11,061)51,410 
Non-interest income
Mortgage banking activities, net(23,081)(5,821)— — (28,902)
Investment fair value changes, net(196,635)(142,130)(531,558)(509)(870,832)
Other income, net(497)2,184 1,241 — 2,928 
Realized gains, net1,796 — 2,056 — 3,852 
Total non-interest income, net(218,417)(145,767)(528,261)(509)(892,954)
General and administrative expenses(4,599)(11,640)(1,535)(10,908)(28,682)
Loan acquisition costs(1,033)(2,693)(253)(7)(3,986)
Other expenses— (92,985)1,882 (312)(91,415)
Benefit from income taxes5,330 6,582 10,317 — 22,229 
Segment Contribution$(195,650)$(225,796)$(499,155)$(22,797)
Net Loss$(943,398)
Non-cash amortization income (expense), net$367 $(5,363)$866 $(367)$(4,497)
Other significant non-cash expense: goodwill impairment$— $(88,675)$— $— $(88,675)
The following table presents the components of Corporate/Other for the three months ended March 31, 2021 and 2020.

Table 23.2 – Components of Corporate/Other
Three Months Ended March 31,
20212020
(In Thousands)
Legacy Consolidated VIEs (1)
OtherTotal
Legacy Consolidated VIEs (1)
Other Total
Interest income$1,348 $14 $1,362 $3,194 $— $3,194 
Interest expense(875)(9,386)(10,261)(2,522)(11,733)(14,255)
Net interest income473 (9,372)(8,899)672 (11,733)(11,061)
Non-interest income
Investment fair value changes, net(699)25 (674)(391)(118)(509)
Other income— 147 147 — — — 
Total non-interest income, net(699)172 (527)(391)(118)(509)
General and administrative expenses— (17,504)(17,504)— (10,908)(10,908)
Loan acquisition costs— (4)(4)— (7)(7)
Other expenses— 17 17 — (312)(312)
Total$(226)$(26,691)$(26,917)$281 $(23,078)$(22,797)
(1)     Legacy consolidated VIEs represent Legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs.
The following table presents supplemental information by segment at March 31, 2021 and December 31, 2020.
Table 23.3 – Supplemental Segment Information
(In Thousands)Residential LendingBusiness Purpose LendingThird-Party Investments Corporate/
Other		Total
March 31, 2021
Residential loans$2,272,624 $— $2,154,351 $274,861 $4,701,836 
Business purpose loans— 4,172,120 — — 4,172,120 
Multifamily loans— — 489,545 — 489,545 
Real estate securities167,040 — 197,280 — 364,320 
Other investments7,945 19,405 293,776 1,453 322,579 
Intangible assets— 52,992 — — 52,992 
Total assets2,601,672 4,359,491 3,155,645 780,040 10,896,848 
December 31, 2020
Residential loans$1,741,963 $— $2,221,153 $285,935 $4,249,051 
Business purpose loans— 4,136,353 — — 4,136,353 
Multifamily loans— — 492,221 — 492,221 
Real estate securities160,780 — 183,345 — 344,125 
Other investments8,815 21,627 317,282 451 348,175 
Intangible assets— 56,865 — — 56,865 
Total assets1,989,802 4,323,040 3,232,415 809,809 10,355,066