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Segment Information
 12 Months Ended
Dec. 31, 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 Item 1—Business in this Annual Report on Form 10-K.
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 for our convertible notes and trust preferred securities (and in 2022 and 2020, realized gains from the repurchase of convertible notes), indirect general and administrative expenses and other expense.
The following tables present financial information by segment for the years ended December 31, 2022, 2021, and 2020.
Table 24.1 – Business Segment Financial Information
Year Ended December 31, 2022
(In Thousands)Residential Mortgage BankingBusiness Purpose Mortgage BankingInvestment Portfolio Corporate/
Other 		 Total
Interest income$45,202 $28,674 $627,134 $6,844 $707,854 
Interest expense(32,735)(18,041)(445,154)(56,470)(552,400)
Net interest income12,467 10,633 181,980 (49,626)155,454 
Non-interest (loss) income
Mortgage banking activities, net(21,282)7,623 — — (13,659)
Investment fair value changes, net— — (191,148)15,590 (175,558)
Other income, net— 3,509 18,596 (901)21,204 
Realized gains, net— — 3,174 2,160 5,334 
Total non-interest (loss) income, net(21,282)11,132 (169,378)16,849 (162,679)
General and administrative expenses (22,566)(56,557)(6,036)(55,749)(140,908)
Portfolio management costs— — (7,951)— (7,951)
Loan acquisition costs(3,085)(8,681)— — (11,766)
Other expenses74 (13,969)(1,695)— (15,590)
Benefit from (Provision for) income taxes12,814 13,157 (6,051)— 19,920 
Segment Contribution$(21,578)$(44,285)$(9,131)$(88,526)
Net (loss)$(163,520)
Non-cash amortization (expense) income, net$(1,075)$(15,071)$2,507 $(8,289)$(21,928)
Table 24.1 – Business Segment Financial Information (continued)
Year Ended December 31, 2021
(In Thousands)Residential Mortgage BankingBusiness Purpose Mortgage BankingInvestment PortfolioCorporate/
Other		 Total
Interest income$48,953 $14,054 $507,173 $4,746 $574,926 
Interest expense(26,963)(7,230)(351,635)(40,921)(426,749)
Net interest income 21,990 6,824 155,538 (36,175)148,177 
Non-interest income (loss)
Mortgage banking activities, net127,151 108,593 — — 235,744 
Investment fair value changes, net— — 129,614 (1,565)128,049 
Other income, net— 1,046 10,021 951 12,018 
Realized gains, net— — 17,993 — 17,993 
Total non-interest income (loss), net127,151 109,639 157,628 (614)393,804 
General and administrative expenses (33,574)(46,586)(7,992)(77,066)(165,218)
Portfolio management costs— — (5,758)— (5,758)
Loan acquisition costs(7,480)(8,100)(635)(4)(16,219)
Other expenses104 (15,127)(1,689)17 (16,695)
(Provision for) Benefit from income taxes(25,777)(8,122)(3,862)19,283 (18,478)
Segment Contribution$82,414 $38,528 $293,230 $(94,559)
Net Income$319,613 
Non-cash amortization (expense) income, net$(82)$(16,452)$(20,781)$(7,878)$(45,193)
Table 24.1 – Business Segment Financial Information (continued)
Year Ended December 31, 2020
(In Thousands)Residential Mortgage BankingBusiness Purpose Mortgage BankingInvestment PortfolioCorporate/
Other		 Total
Interest income$17,839 $19,200 $525,741 $9,136 $571,916 
Interest expense(11,978)(13,145)(375,262)(47,620)(448,005)
Net interest income 5,861 6,055 150,479 (38,484)123,911 
Non-interest income
Mortgage banking activities, net3,721 74,622 129 — 78,472 
Investment fair value changes, net— (101)(586,333)(2,004)(588,438)
Other income, net— 3,228 (1,725)2,685 4,188 
Realized gains, net— — 5,242 25,182 30,424 
Total non-interest income (loss), net3,721 77,749 (582,687)25,863 (475,354)
General and administrative expenses(16,318)(37,461)(6,819)(52,900)(113,498)
Portfolio management costs(50)— (4,154)— (4,204)
Loan acquisition costs(2,656)(5,859)— (10)(8,525)
Other expense(4,114)(104,147)194 (718)(108,785)
Benefit from (provision for) income taxes4,567 (4,063)4,104 — 4,608 
Segment Contribution$(8,989)$(67,726)$(438,883)$(66,249)
Net (loss)$(581,847)
Non-cash amortization income (expense), net$(662)$(18,426)$(1,282)$(4,954)$(25,324)
Other significant non-cash expense: goodwill impairment— (88,675)— — (88,675)
The following table presents the components of Corporate/Other for the years ended December 31, 2022, 2021, and 2020.
Table 24.2 – Components of Corporate/Other
Years Ended December 31,
202220212020
(In Thousands)
Legacy Consolidated VIEs (1)
OtherTotal
Legacy Consolidated VIEs (1)
Other Total
Legacy Consolidated VIEs (1)
Other Total
Interest income$5,672 $1,172 $6,844 $4,709 $37 $4,746 $9,061 $75 $9,136 
Interest expense(5,206)(51,264)(56,470)(3,040)(37,881)(40,921)(5,945)(41,675)(47,620)
Net interest income (loss)466 (50,092)(49,626)1,669 (37,844)(36,175)3,116 (41,600)(38,484)
Non-interest income
Investment fair value changes, net(1,302)16,892 15,590 (1,558)(7)(1,565)(1,512)(492)(2,004)
Other income, net— (901)(901)— 951 951 — 2,685 2,685 
Realized gains, net— 2,160 2,160 — — — — 25,182 25,182 
Total non-interest (loss) income, net(1,302)18,151 16,849 (1,558)944 (614)(1,512)27,375 25,863 
General and administrative expenses— (55,749)(55,749)— (77,066)(77,066)— (52,900)(52,900)
Portfolio management costs— — — — — — — — — 
Loan acquisition costs— — — — (4)(4)— (10)(10)
Other expenses— — — — 17 17 — (718)(718)
Benefit from income taxes— — — — 19,283 19,283 — — — 
Total$(836)$(87,690)$(88,526)$111 $(94,670)$(94,559)$1,604 $(67,853)$(66,249)
(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 December 31, 2022 and 2021.
Table 24.3 – Supplemental Segment Information
(In Thousands)Residential Mortgage BankingBusiness Purpose Mortgage BankingInvestment Portfolio Corporate/
Other		Total
December 31, 2022
Residential loans$628,160 $— $4,800,096 $184,932 $5,613,188 
Business purpose loans— 364,073 4,968,513 — 5,332,586 
Consolidated Agency multifamily loans— — 424,551 — 424,551 
Real estate securities— — 240,475 — 240,475 
Home equity investments— — 403,462 403,462 
Other investments— — 334,420 56,518 390,938 
Goodwill— 23,373 — — 23,373 
Intangible assets— 40,892 — — 40,892 
Total assets660,916 487,159 11,303,991 578,833 13,030,899 
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 
Home equity investments— — 192,740 — 192,740 
Other investments— — 413,527 35,702 449,229 
Intangible assets— 41,561 — — 41,561 
Total assets1,716,285 464,967 11,770,486 755,206 14,706,944