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Segment Information
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
Redwood operates in three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking and Investment Portfolio. The accounting policies of the reportable segments are the same as those described in Note 3 — Summary of Significant Accounting Policies. 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, 2021.
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 from 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 and six months ended June 30, 2022 and 2021.
Table 23.1 – Business Segment Financial Information
Three Months Ended June 30, 2022
(In Thousands)Residential Mortgage BankingBusiness Purpose Mortgage BankingInvestment PortfolioCorporate/
Other		Total
Interest income$13,199 $8,586 $144,478 $1,192 $167,455 
Interest expense(8,297)(4,258)(102,589)(11,823)(126,967)
Net interest income4,902 4,328 41,889 (10,631)40,488 
Non-interest (loss) income
Mortgage banking activities, net(17,787)(12,230)— — (30,017)
Investment fair value changes, net— — (98,111)10,139 (87,972)
Other income, net— 1,054 6,235 (283)7,006 
Realized gains, net— — — — — 
Total non-interest (loss) income, net(17,787)(11,176)(91,876)9,856 (110,983)
General and administrative expenses(6,082)(11,069)(3,041)(11,774)(31,966)
Loan acquisition costs(881)(2,599)— — (3,480)
Other expenses74 (3,306)(236)— (3,468)
Benefit from (provision for) income taxes5,588 3,169 686 — 9,443 
Segment Contribution$(14,186)$(20,653)$(52,578)$(12,549)
Net (Loss)$(99,966)
Non-cash amortization (expense) income, net$(760)$(3,480)$(1,450)$(2,137)$(7,827)
Six Months Ended June 30, 2022
(In Thousands)Residential Mortgage BankingBusiness Purpose Mortgage BankingInvestment PortfolioCorporate/
Other		Total
Interest income$26,166 $13,427 $315,050 $2,212 $356,855 
Interest expense(15,233)(6,826)(219,171)(22,035)(263,265)
Net interest income10,933 6,601 95,879 (19,823)93,590 
Non-interest (loss) income
Mortgage banking activities, net(9,852)(3,850)— — (13,702)
Investment fair value changes, net— — (103,517)9,425 (94,092)
Other income, net— 1,629 11,517 (157)12,989 
Realized gains, net— — 2,581 — 2,581 
Total non-interest (loss) income, net(9,852)(2,221)(89,419)9,268 (92,224)
General and administrative expenses(12,183)(21,541)(6,174)(26,922)(66,820)
Loan acquisition costs(2,298)(5,647)— — (7,945)
Other expenses74 (6,840)(787)— (7,553)
Benefit from (provision for) income taxes6,595 6,450 (1,144)— 11,901 
Segment Contribution$(6,731)$(23,198)$(1,645)$(37,477)
Net (Loss)$(69,051)
Non-cash amortization (expense) income, net$(298)$(7,370)$(9,644)$(4,170)$(21,482)
Three Months Ended June 30, 2021
(In Thousands)Residential Mortgage BankingBusiness Purpose Mortgage BankingInvestment PortfolioCorporate/
Other		Total
Interest income$13,246 $3,026 $121,248 $1,175 $138,695 
Interest expense(7,618)(1,521)(88,693)(10,233)(108,065)
Net interest income5,628 1,505 32,555 (9,058)30,630 
Non-interest income
Mortgage banking activities, net21,265 33,154 — — 54,419 
Investment fair value changes, net— — 49,727 (247)49,480 
Other income, net— 156 1,705 265 2,126 
Realized gains, net— — 8,384 — 8,384 
Total non-interest income, net21,265 33,310 59,816 18 114,409 
General and administrative expenses(6,898)(12,356)(3,157)(18,183)(40,594)
Loan acquisition costs(1,887)(1,861)— — (3,748)
Other expenses— (3,873)(112)— (3,985)
Provision for income taxes(3,725)(2,182)(780)— (6,687)
Segment Contribution$14,383 $14,543 $88,322 $(27,223)
Net Income$90,025 
Non-cash amortization (expense) income, net$(13)$(4,054)$7 $(1,955)$(6,015)

Six Months Ended June 30, 2021
(In Thousands)Residential Mortgage BankingBusiness Purpose Mortgage BankingInvestment PortfolioCorporate/
Other		Total
Interest income$20,825 $5,881 $237,757 $2,537 $267,000 
Interest expense(12,365)(3,120)(174,638)(20,494)(210,617)
Net interest income8,460 2,761 63,119 (17,957)56,383 
Non-interest income
Mortgage banking activities, net82,700 54,326 — — 137,026 
Investment fair value changes, net— — 95,488 (921)94,567 
Other income, net— 278 5,279 412 5,969 
Realized gains, net— — 11,100 — 11,100 
Total non-interest income (loss), net82,700 54,604 111,867 (509)248,662 
General and administrative expenses(19,587)(22,550)(6,321)(35,687)(84,145)
Loan acquisition costs(3,291)(3,353)(659)(4)(7,307)
Other expenses(6)(7,650)(442)17 (8,081)
Provision for income taxes(13,211)(3,503)(1,516)— (18,230)
Segment Contribution$55,065 $20,309 $166,048 $(54,140)
Net Income$187,282 
Non-cash amortization income (expense), net$(16)$(8,152)$(227)$(3,850)$(12,245)
The following table presents the components of Corporate/Other for the three and six months ended June 30, 2022 and 2021.

Table 23.2 – Components of Corporate/Other
Three Months Ended June 30,
20222021
(In Thousands)
Legacy Consolidated VIEs (1)
OtherTotal
Legacy Consolidated VIEs (1)
Other Total
Interest income$1,108 $84 $1,192 $1,169 $6 $1,175 
Interest expense(967)(10,856)(11,823)(755)(9,478)(10,233)
Net interest income141 (10,772)(10,631)414 (9,472)(9,058)
Non-interest income
Investment fair value changes, net(336)10,475 10,139 (216)(31)(247)
Other income— (283)(283)— 265 265 
Total non-interest income, net(336)10,192 9,856 (216)234 18 
General and administrative expenses— (11,774)(11,774)— (18,183)(18,183)
Loan acquisition costs— — — — — — 
Other expenses— — — — — — 
Total$(195)$(12,354)$(12,549)$198 $(27,421)$(27,223)
Six Months Ended June 30,
20222021
(In Thousands)Legacy Consolidated VIEs (1)OtherTotalLegacy Consolidated VIEs (1)Other Total
Interest income$2,120 $92 $2,212 $2,517 $20 $2,537 
Interest expense(1,668)(20,367)(22,035)(1,630)(18,864)(20,494)
Net interest income452 (20,275)(19,823)887 (18,844)(17,957)
Non-interest income
Investment fair value changes, net(1,050)10,475 9,425 (915)(6)(921)
Other income— (157)(157)— 412 412 
Realized gains, net— — — — — — 
Total non-interest income, net(1,050)10,318 9,268 (915)406 (509)
General and administrative expenses— (26,922)(26,922)— (35,687)(35,687)
Loan acquisition costs— — — — (4)(4)
Other expenses— — — — 17 17 
Total$(598)$(36,879)$(37,477)$(28)$(54,112)$(54,140)

(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 June 30, 2022 and December 31, 2021.
Table 23.3 – Supplemental Segment Information
(In Thousands)Residential Mortgage BankingBusiness Purpose Lending Mortgage BankingInvestment Portfolio Corporate/
Other		Total
June 30, 2022
Residential loans$990,924 $— $5,378,886 $208,789 $6,578,599 
Business purpose loans— 503,945 4,698,992 — 5,202,937 
Consolidated Agency multifamily loans— — 443,114 — 443,114 
Real estate securities3,994 — 280,284 — 284,278 
Other investments— — 615,807 63,860 679,667 
Intangible assets— 34,720 — — 34,720 
Total assets1,032,281 645,428 11,513,520 684,307 13,875,536 
December 31, 2021
Residential loans$1,673,235 $— $5,688,742 $230,455 $7,592,432 
Business purpose loans— 347,860 4,443,129 — 4,790,989 
Consolidated Agency multifamily loans— — 473,514 — 473,514 
Real estate securities4,927 — 372,484 — 377,411 
Other investments— — 606,267 35,702 641,969 
Intangible assets— 41,561 — — 41,561 
Total assets1,716,285 464,967 11,770,486 755,206 14,706,944