XML 77 R55.htm IDEA: XBRL DOCUMENT v3.21.2

Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Business Segment Financial Information

The following tables present financial information by segment for the three and six months ended June 30, 2021 and 2020.

Table 23.1 – Business Segment Financial Information

						Three Months Ended June 30, 2021
(In Thousands)						Residential Lending						Business Purpose Lending						Third-Party Investments						Corporate/ Other						Total
Interest income						$	33,033					$	70,515					$	33,972					$	1,175					$	138,695
Interest expense						(21,056)						(54,442)						(22,334)						(10,233)						(108,065)
Net interest income						11,977						16,073						11,638						(9,058)						30,630
Non-interest income
Mortgage banking activities, net						21,265						33,154						—						—						54,419
Investment fair value changes, net						3,927						3,782						42,018						(247)						49,480
Other income, net						839						1,017						5						265						2,126
Realized gains, net						6,687						390						1,307						—						8,384
Total non-interest income (loss), net						32,718						38,343						43,330						18						114,409
General and administrative expenses						(7,793)						(13,688)						(930)						(18,183)						(40,594)
Loan acquisition costs						(1,887)						(1,861)						—						—						(3,748)
Other expenses						—						(3,873)						(112)						—						(3,985)
Provision for income taxes						(4,171)						(2,182)						(334)						—						(6,687)
Segment Contribution						$	30,844					$	32,812					$	53,592					$	(27,223)
Net Income																														$	90,025
Non-cash amortization (expense) income, net						$	1,339					$	(5,584)					$	185					$	(1,955)					$	(6,015)

						Six Months Ended June 30, 2021
(In Thousands)						Residential Lending						Business Purpose Lending						Third-Party Investments						Corporate/ Other						Total
Interest income						$	60,581					$	134,920					$	68,962					$	2,537					$	267,000
Interest expense						(40,093)						(104,517)						(45,513)						(20,494)						(210,617)
Net interest income						20,488						30,403						23,449						(17,957)						56,383
Non-interest income
Mortgage banking activities, net						82,700						54,326						—						—						137,026
Investment fair value changes, net						6,673						7,081						81,734						(921)						94,567
Other income, net						3,692						1,860						5						412						5,969
Realized gains, net						9,095						498						1,507						—						11,100
Total non-interest income, net						102,160						63,765						83,246						(509)						248,662
General and administrative expenses						(21,550)						(24,847)						(2,061)						(35,687)						(84,145)
Loan acquisition costs						(3,303)						(3,913)						(87)						(4)						(7,307)
Other expenses						(6)						(7,650)						(442)						17						(8,081)
Provision for income taxes						(14,150)						(3,503)						(577)						—						(18,230)
Segment Contribution						$	83,639					$	54,255					$	103,528					$	(54,140)
Net Income																														$	187,282
Non-cash amortization (expense) income, net						$	3,005					$	(11,441)					$	41					$	(3,850)					$	(12,245)

						Three Months Ended June 30, 2020
(In Thousands)						Residential Lending						Business Purpose Lending						Third-Party Investments						Corporate/ Other						Total
Interest income						$	36,653					$	53,742					$	36,811					$	2,740					$	129,946
Interest expense						(28,762)						(36,631)						(24,927)						(12,346)						(102,666)
Net interest income						7,891						17,111						11,884						(9,606)						27,280
Non-interest income
Mortgage banking activities, net						(8,005)						2,023						—						—						(5,982)
Investment fair value changes, net						35,085						40,401						76,972						(230)						152,228
Other income, net						230						686						(509)						758						1,165
Realized gains, net						205						—						578						25,182						25,965
Total non-interest income, net						27,515						43,110						77,041						25,710						173,376
General and administrative expenses						(3,700)						(9,016)						(1,986)						(13,818)						(28,520)
Loan acquisition costs						(175)						(1,277)						(120)						—						(1,572)
Other expenses						—						(3,884)						(1,065)						(134)						(5,083)
Benefit from (provision for) income taxes						3,323						2,439						(5,799)						—						(37)
Segment Contribution						$	34,854					$	48,483					$	79,955					$	2,152
Net Income																														$	165,444
Non-cash amortization income (expense), net						$	(1,265)					$	(6,391)					$	312					$	(1,619)					$	(8,963)

						Six Months Ended June 30, 2020
(In Thousands)						Residential Lending						Business Purpose Lending						Third-Party Investments						Corporate/ Other						Total
Interest income						$	97,284					$	106,802					$	118,007					$	5,934					$	328,027
Interest expense						(66,324)						(68,984)						(87,428)						(26,601)						(249,337)
Net interest income						30,960						37,818						30,579						(20,667)						78,690
Non-interest income
Mortgage banking activities, net						(31,086)						(3,798)						—						—						(34,884)
Investment fair value changes, net						(161,550)						(101,729)						(454,586)						(739)						(718,604)
Other income, net						(267)						2,870						732						758						4,093
Realized gains, net						2,001						—						2,634						25,182						29,817
Total non-interest income, net						(190,902)						(102,657)						(451,220)						25,201						(719,578)
General and administrative expenses						(8,299)						(20,656)						(3,521)						(24,726)						(57,202)
Loan acquisition costs						(1,208)						(3,970)						(373)						(7)						(5,558)
Other expenses						—						(96,869)						817						(446)						(96,498)
Benefit from income taxes						8,653						9,021						4,518						—						22,192
Segment Contribution						$	(160,796)					$	(177,313)					$	(419,200)					$	(20,645)
Net Loss																														$	(777,954)
Non-cash amortization income (expense), net						$	(1,053)					$	(11,316)					$	1,053					$	(1,728)					$	(13,044)
Other significant non-cash expense: goodwill impairment						$	—					$	(88,675)					$	—					$	—					$	(88,675)

Components of Corporate and Other

The following table presents the components of Corporate/Other for the three and six months ended June 30, 2021 and 2020.

Table 23.2 – Components of Corporate/Other

						Three Months Ended June 30,
						2021																		2020
(In Thousands)						Legacy Consolidated VIEs (1)						Other						Total						Legacy Consolidated VIEs (1)						Other						Total
Interest income						$	1,169					$	6					$	1,175					$	2,685					$	55					$	2,740
Interest expense						(755)						(9,478)						(10,233)						(1,518)						(10,828)						(12,346)
Net interest income						414						(9,472)						(9,058)						1,167						(10,773)						(9,606)
Non-interest income
Investment fair value changes, net						(216)						(31)						(247)						(230)						—						(230)
Other income						—						265						265						—						758						758
Realized gains, net						—						—						—						—						25,182						25,182
Total non-interest income, net						(216)						234						18						(230)						25,940						25,710
General and administrative expenses						—						(18,183)						(18,183)						—						(13,818)						(13,818)
Other expenses						—						—						—						—						(134)						(134)
Total						$	198					$	(27,421)					$	(27,223)					$	937					$	1,215					$	2,152

						Six Months Ended June 30,
						2021																		2020
(In Thousands)						Legacy Consolidated VIEs (1)						Other						Total						Legacy Consolidated VIEs (1)						Other						Total
Interest income						$	2,517					$	20					$	2,537					$	5,879					$	55					$	5,934
Interest expense						(1,630)						(18,864)						(20,494)						(4,040)						(22,561)						(26,601)
Net interest income						887						(18,844)						(17,957)						1,839						(22,506)						(20,667)
Non-interest income
Investment fair value changes, net						(915)						(6)						(921)						(621)						(118)						(739)
Other income						—						412						412						—						758						758
Realized gains, net						—						—						—						—						25,182						25,182
Total non-interest income, net						(915)						406						(509)						(621)						25,822						25,201
General and administrative expenses						—						(35,687)						(35,687)						—						(24,726)						(24,726)
Loan acquisition costs						—						(4)						(4)						—						(7)						(7)
Other expenses						—						17						17						—						(446)						(446)
Total						$	(28)					$	(54,112)					$	(54,140)					$	1,218					$	(21,863)					$	(20,645)

(1)     Legacy consolidated VIEs represent Legacy Sequoia entities that are consolidated for GAAP financial reporting purposes. See Note 4 for further discussion on VIEs.

Supplemental Information by Segment

The following table presents supplemental information by segment at June 30, 2021 and December 31, 2020.

Table 23.3 – Supplemental Segment Information

(In Thousands)						Residential Lending						Business Purpose Lending												Third-Party Investments						Corporate/ Other						Total
June 30, 2021
Residential loans						$	3,383,101					$	—											$	2,098,624					$	260,875					$	5,742,600
Business purpose loans						—						4,408,889												—						—						4,408,889
Multifamily loans						—						—												485,157						—						485,157
Real estate securities						163,609						—												191,277						—						354,886
Other investments						8,721						13,168												267,851						18,992						308,732
Intangible assets						—						49,119												—						—						49,119
Total assets						3,615,860						4,576,139												3,063,094						741,298						11,996,391
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 securities						160,780						—												183,345						—						344,125
Other investments						8,815						21,627												317,282						451						348,175
Intangible assets						—						56,865												—						—						56,865
Total assets						1,989,802						4,323,040												3,232,415						809,809						10,355,066

X

- Definition

Schedule Of Corporate And Other [Table Text Block]

+ References

No definition available.

+ Details

Name:	rwt_ScheduleOfCorporateAndOtherTableTextBlock
Namespace Prefix:	rwt_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Supplemental Balance Sheet [Table Text Block]

+ References

No definition available.

+ Details

Name:	rwt_SupplementalBalanceSheetTableTextBlock
Namespace Prefix:	rwt_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 25
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8813-108599

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

+ Details

Name:	us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_SegmentReportingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration