Segment Information (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Business Segment Financial Information

The following tables present financial information by segment for the years ended December 31, 2025, 2024, and 2023.

Table 4.1 – Business Segment Financial Information


	Year Ended December 31, 2025
(In Thousands)	Sequoia Mortgage Banking		CoreVest Mortgage Banking		Redwood Investments		Legacy Investments		Corporate/ Other		Total
Interest income	$	183,581	$	18,468	$	895,416	$	83,734	$	1,727	$	1,182,926
Interest expense	(101,174)		(10,070)		(814,035)		(108,762)		(66,188)		(1,100,229)
Net interest income (expense)	82,407		8,398		81,381		(25,028)		(64,461)		82,697
Non-interest income (loss)
Mortgage banking activities, net, excluding risk management derivatives (1)	49,429		53,196		—		—		—		102,625
Risk management derivatives (losses) gains, net (2)	66,220		(1,739)		—		—		—		64,481
Total Mortgage banking activities, net	115,649		51,457		—		—		—		167,106
Investment fair value changes, net, excluding risk management derivatives	—		—		(49,124)		(90,708)		879		(138,953)
Risk management derivatives gains (losses), net (2)	—		—		50,047		(8,463)		—		41,584
Total investment fair value changes, net	—		—		923		(99,171)		879		(97,369)
HEI income (loss), net	—		—		1,419		(708)		—		711
Servicing income, net	—		—		9,993		—		—		9,993
Fee income (loss), net	—		12,834		1,022		(2,899)		—		10,957
Other income (loss), net	—		3,342		1,550		(1,091)		82		3,883
Realized gains, net	—		—		1,207		(1,767)		(48)		(608)
Total non-interest income (loss), net	115,649		67,633		16,114		(105,636)		913		94,673
General and administrative expenses	(34,019)		(40,242)		(5,549)		(111)		(74,025)		(153,946)
Portfolio management costs	—		—		(10,930)		(17,279)		(49)		(28,258)
Loan acquisition costs	(7,506)		(10,481)		—		(156)		—		(18,143)
Other expenses	—		(8,426)		(12,938)		(500)		—		(21,864)
(Provision for) benefit from income taxes	(30,418)		3,235		7		1,769		222		(25,185)
Net Income (Loss) (3)	$	126,113	$	20,117	$	68,085	$	(146,941)	$	(137,400)	$	(70,026)
Total Assets	$	3,321,116	$	357,988	$	18,744,747	$	942,465	$	334,798	$	23,701,114

(1)Mortgage banking activities, net includes changes in the fair value of other derivative financial instruments such as loan purchase commitments and interest rate locks.

(2)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations, Redwood Investments and Legacy Investments.

(3)Net Income (Loss) by segment is also referred to as Segment Contribution (Loss).


	Year Ended December 31, 2024
(In Thousands)	Sequoia Mortgage Banking		CoreVest Mortgage Banking		Redwood Investments		Legacy Investments		Corporate/ Other		Total
Interest income	$	97,860	$	20,280	$	661,489	$	162,450	$	3,085	$	945,164
Interest expense	(54,065)		(14,970)		(562,148)		(140,357)		(71,016)		(842,556)
Net interest income (expense)	43,795		5,310		99,341		22,093		(67,931)		102,608
Non-interest income (loss)
Mortgage banking activities, net, excluding risk management derivatives (1)	82,202		36,701		—		—		—		118,903
Risk management derivatives gains, net (2)	(24,623)		5,118		—		—		—		(19,505)
Total Mortgage banking activities, net	57,579		41,819		—		—		—		99,398
Investment fair value changes, net, excluding risk management derivatives	—		—		60,068		(62,959)		(1,679)		(4,570)
Risk management derivatives (losses) gains, net (2)	—		—		(21,571)		11,382		—		(10,189)
Total Investment fair value changes, net	—		—		38,497		(51,577)		(1,679)		(14,759)
HEI income, net	—		—		61		42,024		—		42,085
Servicing income, net	—		—		14,414		—		—		14,414
Fee income, net	—		10,930		965		(1,020)		155		11,030
Other income (loss), net	—		—		3,122		—		(1,292)		1,830
Realized gains, net	—		—		565		—		(259)		306
Total non-interest income (loss), net	57,579		52,749		57,624		(10,573)		(3,075)		154,304
General and administrative expenses	(20,008)		(40,008)		(7,654)		(68)		(68,655)		(136,393)
Portfolio management costs	—		—		(5,836)		(15,021)		(58)		(20,915)
Loan acquisition costs	(3,860)		(8,563)		(14)		(238)		—		(12,675)
Other expenses	—		(9,413)		(4,675)		—		—		(14,088)
(Provision for) Benefit from income taxes	(16,009)		2,219		(5,586)		—		539		(18,837)
Net Income (Loss) (3)	$	61,497	$	2,294	$	133,200	$	(3,807)	$	(139,180)	$	54,004
Total Assets	$	1,231,723	$	317,612	$	13,277,770	$	3,101,377	$	329,862	$	18,258,344

(1)Mortgage banking activities, net includes changes in the fair value of other derivative financial instruments such as loan purchase commitments and interest rate locks.

(2)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations, Redwood Investments and Legacy Investments.

(3)Net Income (Loss) by segment is also referred to as Segment Contribution (Loss).


	Year Ended December 31, 2023
(In Thousands)	Sequoia Mortgage Banking		CoreVest Mortgage Banking		Redwood Investments		Legacy Investments		Corporate/ Other		Total
Interest income	$	25,404	$	15,896	$	465,134	$	210,344	$	7,684	$	724,462
Interest expense	(24,114)		(13,078)		(379,710)		(156,817)		(57,800)		(631,519)
Net interest income (expense)	1,290		2,818		85,424		53,527		(50,116)		92,943
Non-interest income (loss)
Mortgage banking activities, net, excluding risk management derivatives (1)	45,690		40,518		—		—		—		86,208
Risk management derivatives (losses) gains, net (2)	(17,908)		(914)		—		—		—		(18,822)
Total Mortgage banking activities, net	27,782		39,604		—		—		—		67,386
Investment fair value changes, net, excluding risk management derivatives	1,076		—		24,579		(65,582)		(2,994)		(42,921)
Risk management derivatives (losses) gains, net (1)	—		—		(884)		(595)		—		(1,479)
Total Investment fair value changes, net	1,076		—		23,695		(66,177)		(2,994)		(44,400)
HEI income, net	—		—		23,569		11,672		—		35,241
Servicing income, net	—		—		7,033		—		—		7,033
Fee income, net	—		5,593		1,041		1,447		132		8,213
Other income (loss), net	—		20		716		—		(3,220)		(2,484)
Realized gains, net	—		—		1,502		(644)		841		1,699
Total non-interest income (loss), net	28,858		45,217		57,556		(53,702)		(5,241)		72,688
General and administrative expenses	(17,171)		(44,547)		(7,283)		(525)		(58,769)		(128,295)
Portfolio management costs	—		—		(6,039)		(8,492)		(40)		(14,571)
Loan acquisition costs	(1,266)		(5,900)		—		—		—		(7,166)
Other expense	—		(12,442)		(5,796)		—		2,000		(16,238)
(Provision for) benefit from income taxes	(1,659)		2,279		(2,946)		—		691		(1,635)
Net Income (Loss) (3)	$	10,052	$	(12,575)	$	120,916	$	(9,192)	$	(111,475)	$	(2,274)
Total Assets	$	971,535	$	293,225	$	9,450,031	$	3,408,949	$	380,587	$	14,504,327

(1)Mortgage banking activities, net includes changes in the fair value of other derivative financial instruments such as loan purchase commitments and interest rate locks.