Redwood Trust Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Redwood Trust Inc. has filed its 2023 10-K, providing a comprehensive overview of its financial position and operations.</b>

AI Summary

REDWOOD TRUST INC (RWTO) filed a Annual Report (10-K) with the SEC on February 29, 2024. Redwood Trust Inc. filed its 2023 Form 10-K on February 29, 2024, reporting on its fiscal year ended December 31, 2023. The filing details various financial instruments and asset classes, including Residential Loans Held for Sale and Investment, and Multifamily Loans. Key financial data points such as Common Stock, Redeemable Preferred Stock, and Senior Notes are reported. The company's business address is One Belvedere Place, Suite 300, Mill Valley, CA 94941. The filing includes information on Variable Interest Entities and their primary beneficiaries as of December 31, 2023.

Why It Matters

For investors and stakeholders tracking REDWOOD TRUST INC, this filing contains several important signals. This 10-K filing provides investors with detailed financial statements and disclosures, crucial for understanding Redwood Trust's performance and risk exposure in the real estate investment trust sector. The specific data on loan portfolios and debt instruments allows for a granular analysis of the company's asset management and capital structure.

Risk Assessment

Risk Level: medium — REDWOOD TRUST INC shows moderate risk based on this filing. The company operates in the real estate investment trust sector, which is subject to market fluctuations, interest rate changes, and regulatory oversight, as indicated by the detailed reporting of various loan types and financial instruments.

Analyst Insight

Investors should review the detailed breakdown of loan portfolios and debt instruments within the 10-K to assess Redwood Trust's risk and return profile.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-29 — Filing Date (Date of submission)
• 0000930236 — Central Index Key (SEC identifier)
• 001-13759 — SEC File Number (SEC registration number)

Key Players & Entities

• REDWOOD TRUST INC (company) — Filer name
• 20231231 (date) — Fiscal year end
• 20240229 (date) — Filing date
• One Belvedere Place, Suite 300, Mill Valley, CA 94941 (address) — Business address
• 6798 (sic_code) — Standard Industrial Classification for Real Estate Investment Trusts
• MD (state) — State of incorporation

FAQ

Risk Factors

• Market Valuation Adjustments [medium — market]: The company's financial results are subject to market valuation adjustments, impacting reported values.
• Debt Instruments [medium — financial]: The company utilizes various debt instruments, including senior notes, which carry associated risks.
• Variable Interest Entities [medium — operational]: The company's involvement with variable interest entities may expose it to certain risks and obligations.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-29: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document filed by Redwood Trust Inc. for the fiscal year 2023.)

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share RWT New York Stock Exchange
• $2.68 — investment portfolio had approximately $2.68 per share of net discount at year-end 2
• $185 million — timate we could generate an incremental $185 million of capital organically through financin

Filing Documents

• rwt-20231231.htm (10-K) — 8758KB
• rwtex101q4.htm (EX-10.1) — 70KB
• rwtex102q4.htm (EX-10.2) — 71KB
• rwtex103q4.htm (EX-10.3) — 73KB
• rwtex1049q4.htm (EX-10.49) — 39KB
• rwtex191q4.htm (EX-19.1) — 37KB
• rwtex21q4.htm (EX-21) — 9KB
• rwtex23q4.htm (EX-23) — 3KB
• rwtex311q4.htm (EX-31.1) — 10KB
• rwtex312q4.htm (EX-31.2) — 10KB
• rwtex321q4.htm (EX-32.1) — 4KB
• rwtex322q4.htm (EX-32.2) — 4KB
• rwtex971q4.htm (EX-97.1) — 30KB
• rwt-20231231_g1.jpg (GRAPHIC) — 109KB
• 0000930236-24-000009.txt (&nbsp;) — 46496KB
• rwt-20231231.xsd (EX-101.SCH) — 209KB
• rwt-20231231_cal.xml (EX-101.CAL) — 183KB
• rwt-20231231_def.xml (EX-101.DEF) — 1334KB
• rwt-20231231_lab.xml (EX-101.LAB) — 1993KB
• rwt-20231231_pre.xml (EX-101.PRE) — 1690KB
• rwt-20231231_htm.xml (XML) — 10711KB

Risk Factors

Item 1A. Risk Factors 6

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 61

Cyber Risk Management Disclosure

Item 1C. Cyber Risk Management Disclosure 61

Properties

Item 2. Properties 62

Legal Proceedings

Item 3. Legal Proceedings 63

Mine Safety Disclosures (Not Applicable)

Item 4. Mine Safety Disclosures (Not Applicable) 63 PART II

Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 64

[Reserved]

Item 6. [Reserved] 66

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 67

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 113

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 120

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 120

Controls and Procedures

Item 9A. Controls and Procedures 120

Other Information

Item 9B. Other Information 121

Disclosure Regarding Foreign Jurisdictions That Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 109 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 122

Executive Compensation

Item 11. Executive Compensation 122

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 122

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 122

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 122 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 123

Form 10-K Summary

Item 16. Form 10-K Summary 128 Consolidated Financial Statements F- 1 i Special Note - Cautionary Statement This Annual Report on Form 10-K and the documents incorporated by reference herein contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "expect," "believe," "intend," "seek," "plan" and similar expressions or their negative forms, or by references to strategy, plans, or intentions. These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in this Annual Report on Form 10-K under the caption "Risk Factors." Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected are described below and may be described from time to time in reports we file with the SEC, including reports on Forms 10-Q and 8-K. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

BUSINESS

ITEM 1. BUSINESS Introduction Redwood Trust, Inc., together with its subsidiaries, is a specialty finance company focused on several distinct areas of housing credit, with a mission to help make quality housing, whether rented or owned, accessible to all American households. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors through our best-in-class securitization platforms, whole-loan distribution activities and our publicly-traded securities. Our aggregation, origination and investment activities have evolved to incorporate a diverse mix of residential consumer and residential investor housing credit assets. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. We operate our business in three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. Our primary sources of income are net interest income from our investments and non-interest income from our mortgage banking activities. Net interest income primarily consists of the interest income we earn on investments less the interest expense we incur on borrowed funds and other liabilities. Income from mortgage banking activities is generated through the origination and acquisition of loans, and their subsequent sale, securitization, or transfer to our investment portfolio. Redwood Trust, Inc. has elected to be taxed as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), beginning with its taxable year ended December 31, 1994. We generally refer, collectively, to Redwood Trust, Inc. and those of its

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View this 10-K filing on SEC EDGAR