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Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
Redwood operates in three segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking and Redwood Investments. The accounting policies of the reportable segments are the same as those described in Note 3 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2024. 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, 2024.
This segmentation aligns with the results of operations presented to our chief operating decision maker ("CODM") in reviewing the Company for performance assessment and resource allocation. We identify our CODM to be a group consisting of the Company's Chief Executive Officer, President and Chief Financial Officer.
Our CODM evaluates performance and allocates resources on each respective segment primarily based on segment net income (loss), also referred to as segment contribution, which is also used to assess the annual budget and forecasting process and to consider budget-to-actual variances when allocating capital and personnel to the segments throughout the year.
The accounting policies applied to the segments are the same as those described in Note 3 to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2024, with the exception of allocations of certain corporate expenses not directly assigned or allocated to one of our three segments. These unallocated corporate expenses are included in the Corporate/Other column as reconciling items to our consolidated financial statements and primarily include interest expense for our senior notes, convertible and exchangeable senior notes, and trust preferred securities, 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 Redwood Investments 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, 2025 and 2024.
Table 4.1 – Business Segment Financial Information
Three Months Ended March 31, 2025
(In Thousands)Sequoia Mortgage BankingCoreVest Mortgage BankingRedwood InvestmentsCorporate/
Other		Total
Interest income$31,683 $4,394 $235,721 $296 $272,094 
Interest expense(13,339)(2,389)(212,268)(16,156)(244,152)
Net interest income (expense)18,344 2,005 23,453 (15,860)27,942 
Non-interest income
Mortgage banking activities, net, excluding risk management derivatives1,364 13,847 — — 15,211 
Risk management derivatives gains (losses), net (1)
20,787 (2,945)— — 17,842 
Total Mortgage banking activities, net22,151 10,902 — — 33,053 
Investment fair value changes, net, excluding risk management derivatives— — (25,739)(80)(25,819)
Risk management derivatives gains, net (1)
— — 20,631 — 20,631 
Total Investment fair value changes, net— — (5,108)(80)(5,188)
HEI income, net— — 10,166 — 10,166 
Servicing income, net— — 3,407 — 3,407 
Fee income, net— 3,079 (728)— 2,351 
Other income (loss), net— — 370 1,180 1,550 
Realized gains, net— — 567 — 567 
Total non-interest income, net22,151 13,981 8,674 1,100 45,906 
General and administrative expenses(6,346)(10,597)(1,365)(19,163)(37,471)
Portfolio management costs— — (6,491)— (6,491)
Loan acquisition costs(1,071)(2,497)— — (3,568)
Other expenses— (2,202)(1,707)— (3,909)
(Provision for) benefit from income taxes(7,261)648 304 47 (6,262)
Net Income (Loss) (2)
$25,817 $1,338 $22,868 $(33,876)$16,147 
Total Assets$1,559,117 $343,985 $17,601,951 $366,722 $19,871,775 
(1)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations and Redwood Investments. For mortgage banking, also includes other derivative financial instruments such as loan purchase commitments and interest rate locks.
(2)Net Income (Loss) by segment is also referred to as Segment Contribution.
Three Months Ended March 31, 2024
(In Thousands)Sequoia Mortgage BankingCoreVest Mortgage BankingRedwood InvestmentsCorporate/
Other		Total
Interest income$14,313 $3,771 $184,898 $1,758 $204,740 
Interest expense(8,266)(2,877)(155,299)(14,088)(180,530)
Net interest income (expense)6,047 894 29,599 (12,330)24,210 
Non-interest income (loss)
Mortgage banking activities, net, excluding risk management derivatives4,738 4,220 — — 8,958 
Risk management derivatives gains, net (1)
3,089 2,509 — — 5,598 
Total Mortgage banking activities, net7,827 6,729 — — 14,556 
Investment fair value changes, net, excluding risk management derivatives— — 16,806 650 17,456 
Risk management derivatives gains, net (1)
— — 4,381 — 4,381 
Total Investment fair value changes, net— — 21,187 650 21,837 
HEI income, net— — 9,086 — 9,086 
Servicing income, net— — 4,225 — 4,225 
Fee income, net— 626 375 — 1,001 
Other income (loss), net— — 170 (945)(775)
Realized gains, net— — 314 95 409 
Total non-interest income (loss), net7,827 7,355 35,357 (200)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)
Net Income (Loss) (2)
$7,019 $(5,509)$57,492 $(28,740)$30,262 
Total Assets$594,842 $383,090 $13,692,180 $387,862 $15,057,974 
(1)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations and Redwood Investments. For mortgage banking, also includes other derivative financial instruments such as loan purchase commitments and interest rate locks.
(2)Net Income (Loss) by segment is also referred to as Segment Contribution.