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Segment Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
Redwood operates in three segments: Residential Consumer Mortgage Banking, Residential Investor 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, 2023.
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 at certain consolidated Legacy Sequoia Securitization entities, are included in the Corporate/Other column as reconciling items to our consolidated financial statements. These unallocated corporate expenses primarily include interest expense for our convertible notes and trust preferred securities (and in 2024 and 2023, realized gains from the repurchase of convertible notes), indirect general and administrative expenses and other expense. In the normal course of business, loans are originated and acquired at our mortgage banking segments and may subsequently be transferred to our investment portfolio segment either as whole loans or through the retention of securities from securitizations we sponsor and consolidate under GAAP. All of our loans are accounted for under the fair value option and amounts transferred between segments are accounted for at fair value at the time of transfer.
The following tables present financial information by segment for the three months ended March 31, 2024 and 2023.
Table 24.1 – Business Segment Financial Information
Three Months Ended March 31, 2024
(In Thousands)Residential Consumer Mortgage BankingResidential Investor Mortgage BankingInvestment PortfolioCorporate/
Other		Total
Interest income$14,313 $3,771 $182,600 $4,056 $204,740 
Interest expense(8,266)(2,877)(153,105)(16,282)(180,530)
Net interest income (expense)6,047 894 29,495 (12,226)24,210 
Non-interest income (loss)
Mortgage banking activities, net7,827 6,729 — — 14,556 
Investment fair value changes, net— — 21,405 432 21,837 
HEI income, net— — 9,031 — 9,031 
Other income, net— 626 4,825 (945)4,506 
Realized gains, net— — 314 95 409 
Total non-interest income (loss), net7,827 7,355 35,575 (418)50,339 
General and administrative expenses(4,789)(11,425)(2,175)(16,180)(34,569)
Portfolio management costs— — (3,588)(9)(3,597)
Loan acquisition costs(572)(1,663)— (2)(2,237)
Other expenses— (2,806)(555)— (3,361)
(Provision for) Benefit from income taxes(1,494)2,136 (1,146)(19)(523)
Segment Contribution$7,019 $(5,509)$57,606 $(28,854)
Net Income$30,262 
Non-cash amortization (expense), net$(284)$(3,073)$(3,017)$(1,940)$(8,314)
Three Months Ended March 31, 2023
(In Thousands)Residential Consumer Mortgage BankingResidential Investor Mortgage BankingInvestment PortfolioCorporate/
Other		Total
Interest income$5,510 $4,494 $163,660 $4,852 $178,516 
Interest expense(6,866)(4,038)(123,452)(17,723)(152,079)
Net interest income (expense)(1,356)456 40,208 (12,871)26,437 
Non-interest income (loss)
Mortgage banking activities, net3,365 13,306 — — 16,671 
Investment fair value changes, net1,076 — (5,279)(189)(4,392)
HEI income, net— — 4,265 — 4,265 
Other income, net— 2,408 2,168 (20)4,556 
Realized gains, net— — (117)115 (2)
Total non-interest income (loss), net4,441 15,714 1,037 (94)21,098 
General and administrative expenses(4,806)(13,678)(1,409)(15,662)(35,555)
Portfolio management costs— — (3,510)— (3,510)
Loan acquisition costs(175)(1,114)— — (1,289)
Other expenses— (3,108)(576)— (3,684)
Benefit from income taxes633 703 (213)— 1,123 
Segment Contribution$(1,263)$(1,027)$35,537 $(28,627)
Net Income$4,620 
Non-cash amortization (expense), net$(255)$(3,701)$(2,833)$(2,106)$(8,895)
The following table presents the components of Corporate/Other for the three months ended March 31, 2024 and 2023.

Table 24.2 – Components of Corporate/Other
Three Months Ended March 31,
20242023
(In Thousands)
Legacy Consolidated VIEs (1)
OtherTotal
Legacy Consolidated VIEs (1)
Other Total
Interest income$2,298 $1,758 $4,056 $2,543 $2,309 $4,852 
Interest expense(2,194)(14,088)(16,282)(2,504)(15,219)(17,723)
Net interest income (expense)104 (12,330)(12,226)39 (12,910)(12,871)
Non-interest income (loss)
Investment fair value changes, net(218)650 432 (94)(95)(189)
Other income, net— (945)(945)— (20)(20)
Realized gains, net— 95 95 — 115 115 
Total non-interest income (loss), net(218)(200)(418)(94)— (94)
General and administrative expenses— (16,180)(16,180)— (15,662)(15,662)
Portfolio management costs — (9)(9)— — — 
Loan acquisition costs— (2)(2)— — — 
Benefit from income taxes— (19)(19)— — — 
Total$(114)$(28,740)$(28,854)$(55)$(28,572)$(28,627)

(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, 2024 and December 31, 2023.
Table 24.3 – Supplemental Segment Information
(In Thousands)Residential Consumer Mortgage BankingResidential Investor Mortgage BankingInvestment Portfolio Corporate/
Other		Total
March 31, 2024
Residential consumer loans$511,706 $— $6,973,027 $131,859 $7,616,592 
Residential investor loans— 280,551 4,901,443 — 5,181,994 
Consolidated Agency multifamily loans— — 422,788 — 422,788 
Real estate securities62,815 — 149,492 — 212,307 
Home equity investments— — 560,325 420 560,745 
Other investments— — 279,737 57,608 337,345 
Goodwill— 23,373 — — 23,373 
Intangible assets— 25,657 — — 25,657 
Total assets594,842 383,090 13,560,010 520,032 15,057,974 
December 31, 2023
Residential consumer loans$911,192 $— $5,999,706 $139,739 $7,050,637 
Residential investor loans— 180,250 5,040,048 — 5,220,298 
Consolidated Agency multifamily loans— — 425,285 — 425,285 
Real estate securities4,995 — 122,802 — 127,797 
Home equity investments— — 550,323 113 550,436 
Other investments— — 287,822 56,108 343,930 
Goodwill— 23,373 — — 23,373 
Intangible assets— 28,462 — — 28,462 
Total assets971,535 293,225 12,718,201 521,366 14,504,327