v3.24.3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash Flows From Operating Activities:    
Net income (loss) $ 60,622 $ (23,317)
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Amortization of premiums, discounts, and debt issuance costs, net 9,547 14,137
Depreciation and amortization of non-financial assets 9,131 11,082
Originations of held-for-sale loans (1,099,186) (577,098)
Purchases of held-for-sale loans (4,910,749) (1,051,236)
Proceeds from sales of held-for-sale loans 941,704 692,392
Principal payments on held-for-sale loans 63,665 45,326
Net settlements of derivatives (71,988) (5,023)
Non-cash equity award compensation expense and other 16,949 14,952
Market valuation adjustments (103,936) (1,275)
Realized gains, net (620) (1,104)
Net change in:    
Other assets (28,985) 14,687
Accrued expenses and other liabilities 105,306 (984)
Net cash used in operating activities (5,008,540) (867,461)
Cash Flows From Investing Activities:    
Originations and purchases of loan investments (120,661) (674,500)
Proceeds from sales of loans 52,163 5,351
Principal payments on loan investments 1,749,172 1,126,609
Purchases of real estate securities (193,744) (9,855)
Proceeds from sales of real estate securities 2,833 138,111
Principal payments on real estate securities 5,331 950
Repayments from servicer advance investments, net 21,151 55,828
Purchases of HEI (1,066) (25,626)
Repayments on HEI 37,024 26,153
Other investing activities, net (14,800) (3,787)
Net cash provided by investing activities 1,537,403 639,234
Cash Flows From Financing Activities:    
Proceeds from borrowings on debt obligations 7,207,997 2,398,412
Repayments on debt obligations (6,635,775) (2,844,566)
Proceeds from issuance of asset-backed securities 4,280,237 1,240,121
Repayments on asset-backed securities issued (1,331,656) (657,638)
Debt issuance costs paid (15,257) (1,640)
Taxes paid on equity award distributions (3,114) (3,288)
Net proceeds from issuance of common stock 352 33,788
Net proceeds from issuance of preferred stock 0 66,923
Dividends paid on common stock (67,811) (66,447)
Dividends paid on preferred stock (5,257) (3,449)
Other financing activities, net (1,400) (3,630)
Net cash provided by financing activities 3,428,316 158,586
Net decrease in cash, cash equivalents and restricted cash (42,821) (69,641)
Cash, cash equivalents and restricted cash at beginning of period 368,788 329,364
Cash, cash equivalents and restricted cash at end of period 325,967 259,723
Cash and cash equivalents 253,673 [1] 203,622
Restricted cash at end of period [2] 72,294 [1] 56,101
Cash, cash equivalents and restricted cash at end of period 325,967 259,723
Cash paid during the period for:    
Interest 721,264 436,879
Taxes paid (refunded) 347 (1,034)
Supplemental Noncash Information:    
Dividends declared but not paid on preferred stock 1,478 1,478
Retention of mortgage servicing rights from loan sales 84 0
Transfers from loans held-for-sale to loans held-for-investment 4,553,378 2,009,030
Transfers from residential consumer loans to real estate owned 14,800 53,906
Right-of-use asset obtained in exchange for operating lease liability 0 337
Reduction in operating lease liability due to lease modification $ 0 $ 274
[1] Our consolidated balance sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations of these VIEs and liabilities of consolidated VIEs for which creditors do not have recourse to Redwood Trust, Inc. or its affiliates. At September 30, 2024 and December 31, 2023, assets of consolidated VIEs totaled $14,312,672 and $10,988,885, respectively. At September 30, 2024 and December 31, 2023, liabilities of consolidated VIEs totaled $13,354,497 and $10,096,308, respectively. See Note 15 for further discussion.
[2] Restricted cash primarily includes cash held at our consolidated Servicing Investment entities, and cash associated with our risk-sharing transactions, as well as cash collateral for certain consolidated securitization entities.

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