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Segment Information
 9 Months Ended
Sep. 30, 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. 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.
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 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, indirect general and administrative expenses and other expenses.
The following tables present financial information by segment for the three and nine months ended September 30, 2024 and 2023.
Table 4.1 – Business Segment Financial Information
Three Months Ended September 30, 2024
(In Thousands)Residential Consumer Mortgage BankingResidential Investor Mortgage BankingInvestment PortfolioCorporate/
Other		Total
Interest income$26,318 $4,868 $217,057 $400 $248,643 
Interest expense(16,770)(3,099)(184,319)(18,957)(223,145)
Net interest income (expense)9,548 1,769 32,738 (18,557)25,498 
Non-interest income (loss)
Mortgage banking activities, net26,715 12,854 — — 39,569 
Investment fair value changes, net— — (11,966)(236)(12,202)
HEI income, net— — 10,651 — 10,651 
Other income, net— 5,434 426 135 5,995 
Realized gains, net— — 211 — 211 
Total non-interest income (loss), net26,715 18,288 (678)(101)44,224 
General and administrative expenses(5,240)(9,306)(701)(20,761)(36,008)
Portfolio management costs— — (6,324)(32)(6,356)
Loan acquisition costs(1,291)(1,885)— — (3,176)
Other expenses— (2,202)(26)— (2,228)
(Provision for) benefit from income taxes(6,977)(981)606 224 (7,128)
Segment Contribution$22,755 $5,683 $25,615 $(39,227)
Net Income$14,826 
Non-cash amortization (expense), net$(271)$(2,422)$1,016 $(2,863)$(4,540)
Total Assets$1,543,380 $357,432 $16,151,156 $375,458 $18,427,426 
Nine Months Ended September 30, 2024
(In Thousands)Residential Consumer Mortgage BankingResidential Investor Mortgage BankingInvestment PortfolioCorporate/
Other		Total
Interest income$61,728 $15,647 $598,696 $2,729 $678,800 
Interest expense(34,958)(11,480)(506,429)(50,932)(603,799)
Net interest income (expense)26,770 4,167 92,267 (48,203)75,001 
Non-interest income (loss)
Mortgage banking activities, net40,787 32,262 — — 73,049 
Investment fair value changes, net— — 11,770 (1,037)10,733 
HEI income, net— — 35,521 — 35,521 
Other income, net— 7,233 10,371 (810)16,794 
Realized gains, net— — 525 95 620 
Total non-interest income (loss), net40,787 39,495 58,187 (1,752)136,717 
General and administrative expenses(14,986)(30,407)(3,517)(54,951)(103,861)
Portfolio management costs— — (14,746)(71)(14,817)
Loan acquisition costs(2,843)(5,982)(244)(8)(9,077)
Other expenses— (7,210)(3,556)— (10,766)
(Provision for) benefit from income taxes(10,031)706 (3,454)204 (12,575)
Segment Contribution$39,697 $769 $124,937 $(104,781)
Net Income$60,622 
Non-cash amortization (expense), net$(868)$(7,921)$(2,204)$(7,684)$(18,677)
Total Assets$1,543,380 $357,432 $16,151,156 $375,458 $18,427,426 
Three Months Ended September 30, 2023
(In Thousands)Residential Consumer Mortgage BankingResidential Investor Mortgage BankingInvestment PortfolioCorporate/
Other		Total
Interest income$6,063 $4,618 $164,847 $1,546 $177,074 
Interest expense(4,826)(3,888)(133,790)(14,219)(156,723)
Net interest income (expense)1,237 730 31,057 (12,673)20,351 
Non-interest income (loss)
Mortgage banking activities, net8,964 10,476 — — 19,440 
Investment fair value changes, net— — (41,789)100 (41,689)
HEI income, net— — 10,259 — 10,259 
Other income, net— 1,278 2,622 (1,554)2,346 
Realized gains, net— — 26 24 50 
Total non-interest income (loss), net8,964 11,754 (28,882)(1,430)(9,594)
General and administrative expenses(4,521)(9,402)(1,340)(14,434)(29,697)
Portfolio management costs— — (3,636)(25)(3,661)
Loan acquisition costs(395)(1,485)— — (1,880)
Other expenses— (3,108)(1,525)— (4,633)
(Provision for) Benefit from income taxes(813)318 (1,457)256 (1,696)
Segment Contribution$4,472 $(1,193)$(5,783)$(28,306)
Net (Loss)$(30,810)
Non-cash amortization (expense), net$(266)$(3,294)$(1,687)$(2,099)$(7,346)
Total Assets$659,520 $197,974 $11,701,939 $461,705 $13,021,138 
Nine Months Ended September 30, 2023
(In Thousands)Residential Consumer Mortgage BankingResidential Investor Mortgage BankingInvestment PortfolioCorporate/
Other		Total
Interest income$14,007 $13,509 $500,393 $6,662 $534,571 
Interest expense(13,392)(11,599)(392,260)(44,436)(461,687)
Net interest income (expense)615 1,910 108,133 (37,774)72,884 
Non-interest income (loss)
Mortgage banking activities, net19,390 33,273 — — 52,663 
Investment fair value changes, net1,076 — (57,930)(2,744)(59,598)
HEI income, net— — 23,445 — 23,445 
Other income, net— 4,762 8,803 (2,505)11,060 
Realized gains, net— — 858 246 1,104 
Total non-interest income (loss), net20,466 38,035 (24,824)(5,003)28,674 
General and administrative expenses(13,065)(34,718)(3,990)(44,284)(96,057)
Portfolio management costs— — (10,233)(38)(10,271)
Loan acquisition costs(719)(3,894)— — (4,613)
Other expenses— (9,323)(3,969)— (13,292)
(Provision for) Benefit from income taxes(887)2,427 (3,135)953 (642)
Segment Contribution$6,410 $(5,563)$61,982 $(86,146)
Net (Loss)$(23,317)
Non-cash amortization (expense), net$(813)$(10,291)$(6,167)$(6,292)$(23,563)
Total Assets$659,520 $197,974 $11,701,939 $461,705 $13,021,138