UNITED STATES OF AMERICA SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended: September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______________ to _______________. Commission File Number 1-13759 REDWOOD TRUST, INC. (Exact Name of Registrant as Specified in Its Charter) (State or O ...

Financial Performance - The company reported strong GAAP earnings of $90 million, equating to $0.66 per diluted share, and a 6.5% increase in book value to $11.46 as of June 30, 2021[348]. - The annualized GAAP return on equity for the first half of 2021 was 31%, with a total economic return to shareholders of 19%[348]. - Net income for Q2 2021 was $90.025 million, a decrease of $75.419 million compared to Q2 2020[365]. - The annualized GAAP return on equity for Q2 2021 was 28.7%, with an economic return on book value of 8.2%[361]. - The book value per share increased by $0.70 to $11.46 during Q2 2021, reflecting strong earnings and comprehensive income[362]. - The company announced a 13% increase in its quarterly dividend to $0.18 per share for Q2 2021[362]. - REIT taxable income for the three months ended June 30, 2021, was $12,497 thousand, compared to a loss of $57,905 thousand in the same period of 2020, representing a significant recovery[439]. - Total taxable income for the six months ended June 30, 2021, was $106,511 thousand, compared to a loss of $28,463 thousand in 2020, indicating a strong performance[439]. - Distributions to shareholders for the three months ended June 30, 2021, were $20,346 thousand, up from $14,366 thousand in 2020, reflecting a 42% increase[439]. Loan and Investment Activities - The company locked close to $4 billion in jumbo residential loans during the second quarter, achieving margins towards the high end of historical targets[350]. - The business purpose lending platform, CoreVest, surpassed $500 million in fundings during the second quarter, focusing on single-family rental and bridge loan originations[351]. - The company originated $527 million in business purpose mortgage loans in Q2 2021, including $312 million in single-family rental loans[362]. - The company securitized $1.81 billion of loans in Q2 2021 and had a pipeline of $2.47 billion in residential jumbo loans identified for purchase[362]. - The company completed three securitizations totaling $1.53 billion during Q2 2021[391]. - The company funded $215 million in business purpose bridge loans during Q2 2021, with principal payments received totaling $115 million[413]. - The company had $727 million in bridge loans held-for-investment at June 30, 2021, with a weighted average coupon of 7.63%[435]. - The company consolidated $3.26 billion of loans and $3.01 billion of ABS issued associated with investments in CAFL entities as of June 30, 2021[412]. Revenue and Income Sources - The revenue mix is expected to continue migrating towards mortgage banking, significantly exceeding net interest income from the investment portfolio in the first half of 2021[353]. - The BPL business saw over a 50% increase in mortgage banking income in Q2 2021, benefiting from diverse product offerings and strong borrower relationships[356]. - Net interest income for the three months ended June 30, 2021, was $30,630,000, up from $27,280,000 in the same period of 2020, reflecting a growth of approximately 8.7%[378]. - Total interest income for the six months ended June 30, 2021, was $267,000,000, compared to $328,027,000 in 2020, indicating a decrease of about 18.6%[379]. - The net interest income for the six months ended June 30, 2021, was $56,383,000, compared to $78,690,000 in the same period of 2020, reflecting a decline of about 28.3%[379]. - Business purpose loans generated interest income of $15,474,000 for the three months ended June 30, 2021, with a yield of 6.7%[378]. Market Conditions and Risks - The ongoing impact of the COVID-19 pandemic remains a significant risk factor affecting the company's operations and market conditions[346]. - The company anticipates that regulatory changes for loans on second homes and investor properties could significantly increase market volumes in 2021 and beyond[345]. - The company faced increased competition in the business purpose lending market, particularly for lower-balance bridge and rental loan products[351]. - The non-Agency mortgage market is expected to increase volumes to $435 billion in 2021, driven by a regulatory pullback from GSEs on second homes and investor properties[354]. - The company expects quarter-to-quarter GAAP earnings volatility due to various factors, including changes in asset values and mortgage banking activities[482]. - The ongoing pandemic has introduced additional volatility, impacting estimates and financial performance[483]. - The company actively manages risks such as credit risk, interest rate risk, and liquidity risk to enhance earnings and preserve capital[484]. Capital and Cash Flow - The company estimates its available capital at approximately $175 million as of June 30, 2021[345]. - Unrestricted cash at June 30, 2021, was $421 million, with estimated available capital of $175 million[362]. - As of June 30, 2021, total capital was $1.95 billion, consisting of $1.30 billion in equity capital and $651 million in convertible notes and long-term debt[449]. - Cash flows from operating activities were negative $2.65 billion for the six months ended June 30, 2021, primarily due to mortgage banking activities[454]. - Net cash provided by investing activities was $1.07 billion during the six months ended June 30, 2021, mainly from principal payments on loans held-for-investment[455]. - Net cash provided by financing activities was $1.51 billion for the same period, driven by $1.18 billion from net short-term debt borrowings[458]. - The company maintains loan warehouse facilities with a total capacity of $2.35 billion and available capacity of $1.30 billion as of June 30, 2021[462]. - As of June 30, 2021, the company had $1.48 billion of short-term debt outstanding, with a peak balance of $2.66 billion during the first half of 2021[463]. Segment Performance - The company operates through three segments: Residential Lending, Business Purpose Lending, and Third-Party Investments, contributing to its overall financial performance[381]. - Residential Lending segment generated $31 million of net income in Q2 2021, down from $53 million in Q1 2021, with mortgage banking income of $27 million[384]. - Business Purpose Lending segment net income increased to $33 million in Q2 2021, driven by a 37% increase in origination volume compared to Q1 2021[402]. - Total segment investments in Residential Lending rose to $496.3 million as of June 30, 2021, compared to $382.3 million at the end of 2020[396]. - Total segment investments in Third-Party Investments increased to $799,421 as of June 30, 2021, compared to $775,369 on December 31, 2020[420]. - The net investment fair value changes for Third-Party Investments segment were $42,018 for the three months and $81,734 for the six months ended June 30, 2021[425].

UNITED STATES OF AMERICA SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended: March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _______________ to _______________. Commission File Number 1-13759 REDWOOD TRUST, INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other ...

Business Segments - The company combined its Multifamily Investments and Third-Party Residential Investments segments into a new segment called Third-Party Investments starting in Q2 2020[31]. - The Residential Lending segment primarily generates revenue from net interest income and mortgage banking activities, with a focus on prime and jumbo mortgages[32]. - The Business Purpose Lending segment focuses on originating single-family rental and bridge loans, with revenue primarily from net interest income and mortgage banking activities[33]. - The Third-Party Investments segment includes investments in RMBS and Freddie Mac K-Series multifamily loan securitizations, generating revenue from interest income and potential gains on securities sales[34]. Workforce and Work Environment - As of December 31, 2020, the company employed 247 full-time employees, with 38% having been with the organization for over 5 years[36][38]. - The company has implemented a remote work model during the pandemic, allowing employees to work from home while monitoring health guidelines[43]. Competition and Market Risks - The company faces intense competition from various financial institutions, including commercial banks and other mortgage REITs, which may impact investment opportunities and returns[44]. - The company actively manages market risks, including credit and interest rate risks, to enhance earnings and preserve capital[582]. Diversity and Inclusion - The company is committed to fostering diversity and inclusion, with a newly created Diversity Council to guide these efforts[40]. Accounting Standards - New accounting standards and their potential effects on the company's financial statements are discussed in the annual report[584].