| Schedule of Business Segment Financial Information |
The following tables present financial information by segment for the three and six months ended June 30, 2026 and 2025. Table 4.1 – Business Segment Financial Information | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2026 | | (In Thousands) | | Sequoia | | Aspire | | CoreVest | | Redwood Investments | | Legacy Investments | | Corporate/
Other | | Total | | Interest income | | $ | 58,354 | | | $ | 18,109 | | | $ | 3,491 | | | $ | 301,749 | | | $ | 3,334 | | | $ | 187 | | | $ | 385,224 | | | Interest expense | | (31,080) | | | (14,548) | | | (2,209) | | | (291,579) | | | (13,737) | | | — | | | (353,153) | | | Net interest income (expense) | | 27,274 | | | 3,561 | | | 1,282 | | | 10,170 | | | (10,403) | | | 187 | | | 32,071 | | | Non-interest income | | | | | | | | | | | | | | | | Mortgage banking activities, net, excluding risk management derivatives | | 58,697 | | | (6,039) | | | 9,946 | | | — | | | — | | | — | | | 62,604 | | Risk management derivatives (losses) gains, net (1) | | (45,753) | | | 15,238 | | | (18) | | | — | | | — | | | — | | | (30,533) | | | Total Mortgage banking activities, net | | 12,944 | | | 9,199 | | | 9,928 | | | — | | | — | | | — | | | 32,071 | | | Investment fair value changes, net, excluding risk management derivatives | | — | | | — | | | (38) | | | 26,153 | | | (12,314) | | | — | | | 13,801 | | Risk management derivatives (losses) gains, net (1) | | — | | | — | | | — | | | (36,324) | | | — | | | — | | | (36,324) | | | Total Investment fair value changes, net | | — | | | — | | | (38) | | | (10,171) | | | (12,314) | | | — | | | (22,523) | | | HEI income, net | | — | | | — | | | — | | | 493 | | | 2,305 | | | — | | | 2,798 | | | Servicing income, net | | — | | | 30 | | | — | | | 2,618 | | | — | | | — | | | 2,648 | | | Fee income, net | | — | | | — | | | 2,496 | | | 453 | | | 11 | | | — | | | 2,960 | | | Other income (loss), net | | — | | | — | | | (182) | | | 5,193 | | | 974 | | | — | | | 5,985 | | | Realized gains, net | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total non-interest income (loss), net | | 12,944 | | | 9,229 | | | 12,204 | | | (1,414) | | | (9,024) | | | — | | | 23,939 | | | General and administrative expenses | | (6,134) | | | (2,826) | | | (7,679) | | | (853) | | | (15) | | | (20,691) | | | (38,198) | | | Portfolio management costs | | — | | | — | | | — | | | (3,436) | | | (3,591) | | | (3) | | | (7,030) | | | Loan acquisition costs | | (2,098) | | | (1,067) | | | (2,825) | | | — | | | — | | | — | | | (5,990) | | | Other expenses | | — | | | — | | | (2,011) | | | (2,343) | | | (393) | | | — | | | (4,747) | | | Benefit from (Provision for) income taxes | | 134 | | | (1,419) | | | 285 | | | (623) | | | 328 | | | 150 | | | (1,145) | | | Net Income (Loss) | | $ | 32,120 | | | $ | 7,478 | | | $ | 1,256 | | | $ | 1,501 | | | $ | (23,098) | | | $ | (20,357) | | | $ | (1,100) | | | Dividends on preferred stock | | (519) | | | (170) | | | (89) | | | (758) | | | (222) | | | — | | | (1,758) | | Net Income (Loss) Available (Related) To Common Stockholders (2) | | $ | 31,601 | | | $ | 7,308 | | | $ | 1,167 | | | $ | 743 | | | $ | (23,320) | | | $ | (20,357) | | | $ | (2,858) | | | Total Assets | | $ | 2,236,378 | | | $ | 835,233 | | | $ | 320,658 | | | $ | 24,322,023 | | | $ | 915,571 | | | $ | 188,268 | | | $ | 28,818,131 | | | | | | | | | | | | | | | | |
(1)Represents market valuation changes of derivatives that were used to manage risks associated with our Mortgage Banking platforms, Redwood Investments and Legacy Investments. Mortgage banking activities, net, also includes other derivative financial instruments such as loan purchase commitments and interest rate locks. (2)Net Income (Loss) by segment is also referred to as Segment Contribution (Loss). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2026 | | (In Thousands) | | Sequoia | | Aspire | | CoreVest | | Redwood Investments | | Legacy Investments | | Corporate/
Other | | Total | | Interest income | | $ | 119,660 | | | $ | 36,517 | | | $ | 7,683 | | | $ | 570,497 | | | $ | 7,334 | | | $ | 452 | | | $ | 742,143 | | | Interest expense | | (67,417) | | | (29,314) | | | (4,292) | | | (547,885) | | | (26,447) | | | — | | | (675,355) | | | Net interest income (expense) | | 52,243 | | | 7,203 | | | 3,391 | | | 22,612 | | | (19,113) | | | 452 | | | 66,788 | | | Non-interest income | | | | | | | | | | | | | | | | Mortgage banking activities, net, excluding risk management derivatives | | 116,659 | | | (7,583) | | | 16,874 | | | — | | | — | | | — | | | 125,950 | | Risk management derivatives (losses) gains, net (1) | | (81,664) | | | 19,466 | | | 283 | | | — | | | — | | | — | | | (61,915) | | | Total Mortgage banking activities, net | | 34,995 | | | 11,883 | | | 17,157 | | | — | | | — | | | — | | | 64,035 | | | Investment fair value changes, net, excluding risk management derivatives | | — | | | — | | | (303) | | | 48,968 | | | (19,789) | | | — | | | 28,876 | | Risk management derivatives (losses) gains, net (1) | | — | | | — | | | — | | | (74,582) | | | (16) | | | — | | | (74,598) | | | Total Investment fair value changes, net | | — | | | — | | | (303) | | | (25,614) | | | (19,805) | | | — | | | (45,722) | | | HEI income, net | | — | | | — | | | — | | | 1,068 | | | 8,839 | | | — | | | 9,907 | | | Servicing income, net | | — | | | 30 | | | — | | | 10,639 | | | — | | | — | | | 10,669 | | | Fee income (loss), net | | — | | | — | | | 5,323 | | | 645 | | | (122) | | | — | | | 5,846 | | | Other income, net | | — | | | — | | | 407 | | | 6,091 | | | 1,924 | | | — | | | 8,422 | | | Realized gains, net | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | Total non-interest income (loss), net | | 34,995 | | | 11,913 | | | 22,584 | | | (7,171) | | | (9,164) | | | — | | | 53,157 | | | General and administrative expenses | | (13,183) | | | (5,292) | | | (20,667) | | | (4,237) | | | (31) | | | (44,146) | | | (87,556) | | | Portfolio management costs | | — | | | — | | | — | | | (7,591) | | | (8,138) | | | (30) | | | (15,759) | | | Loan acquisition costs | | (4,939) | | | (2,113) | | | (5,667) | | | — | | | — | | | — | | | (12,719) | | | Other expenses | | — | | | — | | | (4,021) | | | (7,458) | | | (393) | | | — | | | (11,872) | | | Benefit from (Provision for) income taxes | | 1,379 | | | (1,761) | | | 2,346 | | | (1,996) | | | 938 | | | 452 | | | 1,358 | | | Net Income (Loss) | | $ | 70,495 | | | $ | 9,950 | | | $ | (2,034) | | | $ | (5,841) | | | $ | (35,901) | | | $ | (43,272) | | | $ | (6,603) | | | Dividends on preferred stock | | (1,063) | | | (374) | | | (176) | | | (1,416) | | | (479) | | | — | | | (3,508) | | Net Income (Loss) Available (Related) To Common Stockholders (2) | | $ | 69,432 | | | $ | 9,576 | | | $ | (2,210) | | | $ | (7,257) | | | $ | (36,380) | | | $ | (43,272) | | | $ | (10,111) | | | Total Assets | | $ | 2,236,378 | | | $ | 835,233 | | | $ | 320,658 | | | $ | 24,322,023 | | | $ | 915,571 | | | $ | 188,268 | | | $ | 28,818,131 | |
(1)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations, Redwood Investments and Legacy Investments. Mortgage banking activities, net, also includes other derivative financial instruments such as loan purchase commitments and interest rate locks. (2)Net Income (Loss) by segment is also referred to as Segment Contribution (Loss). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | (In Thousands) | | Sequoia | | Aspire | | CoreVest | | Redwood Investments | | Legacy Investments | | Corporate/
Other | | Total | | Interest income | | $ | 35,503 | | | $ | 1,518 | | | $ | 3,737 | | | $ | 219,744 | | | $ | 23,449 | | | $ | 385 | | | $ | 284,336 | | | Interest expense | | (24,915) | | | (1,587) | | | (2,841) | | | (202,280) | | | (38,879) | | | — | | | (270,502) | | | Net interest income (expense) | | 10,588 | | | (69) | | | 896 | | | 17,464 | | | (15,430) | | | 385 | | | 13,834 | | | Non-interest income (loss) | | | | | | | | | | | | | | | | Mortgage banking activities, net, excluding risk management derivatives | | (23,756) | | | 1,124 | | | 15,354 | | | — | | | — | | | — | | | (7,278) | | Risk management derivatives gains (losses), net (1) | | 48,069 | | | (1,041) | | | 1,107 | | | — | | | — | | | — | | | 48,135 | | | Total Mortgage banking activities, net | | 24,313 | | | 83 | | | 16,461 | | | — | | | — | | | — | | | 40,857 | | | Investment fair value changes, net, excluding risk management derivatives | | — | | | — | | | — | | | (26,958) | | | (74,606) | | | (132) | | | (101,696) | | Risk management derivatives gains (losses), net (1) | | — | | | — | | | — | | | 17,960 | | | (968) | | | — | | | 16,992 | | | Total Investment fair value changes, net | | — | | | — | | | — | | | (8,998) | | | (75,574) | | | (132) | | | (84,704) | | | HEI income (loss), net | | — | | | — | | | — | | | 126 | | | (13,025) | | | — | | | (12,899) | | | Servicing income, net | | — | | | — | | | — | | | 1,608 | | | — | | | — | | | 1,608 | | | Fee income (loss), net | | — | | | — | | | 2,782 | | | 412 | | | (985) | | | — | | | 2,209 | | | Other income (loss), net | | — | | | — | | | 715 | | | 394 | | | — | | | (757) | | | 352 | | | Realized gains, net | | — | | | — | | | — | | | 640 | | | — | | | — | | | 640 | | | Total non-interest income (loss), net | | 24,313 | | | 83 | | | 19,958 | | | (5,818) | | | (89,584) | | | (889) | | | (51,937) | | | General and administrative expenses | | (6,015) | | | (1,190) | | | (10,218) | | | (1,528) | | | (57) | | | (17,975) | | | (36,983) | | | Portfolio management costs | | — | | | — | | | — | | | (2,594) | | | (7,434) | | | — | | | (10,028) | | | Loan acquisition costs | | (1,267) | | | — | | | (3,514) | | | — | | | — | | | — | | | (4,781) | | | Other expenses | | — | | | — | | | (2,203) | | | (1,832) | | | — | | | — | | | (4,035) | | | (Provision for) Benefit from income taxes | | (9,310) | | | 21 | | | 278 | | | 1,567 | | | 2,535 | | | 347 | | | (4,562) | | | Net Income (Loss) | | $ | 18,309 | | | $ | (1,155) | | | $ | 5,197 | | | $ | 7,259 | | | $ | (109,970) | | | $ | (18,132) | | | $ | (98,492) | | | Dividends on preferred stock | | (483) | | | (28) | | | (101) | | | (500) | | | (645) | | | — | | | (1,757) | | Net Income (Loss) Available (Related) To Common Stockholders (2) | | $ | 17,826 | | | $ | (1,183) | | | $ | 5,096 | | | $ | 6,759 | | | $ | (110,615) | | | $ | (18,132) | | | $ | (100,249) | | | Total Assets | | $ | 1,551,366 | | | $ | 137,751 | | | $ | 301,743 | | | $ | 15,982,357 | | | $ | 2,953,731 | | | $ | 406,072 | | | $ | 21,333,020 | |
(1)Represents market valuation changes of derivatives that were used to manage risks associated with our Mortgage Banking platforms, Redwood Investments and Legacy Investments. Mortgage banking activities, net, also includes other derivative financial instruments such as loan purchase commitments and interest rate locks. (2)Net Income (Loss) by segment is also referred to as Segment Contribution (Loss). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | (In Thousands) | | Sequoia | | Aspire | | CoreVest | | Redwood Investments | | Legacy Investments | | Corporate/
Other | | Total | | Interest income | | $ | 67,142 | | | $ | 1,562 | | | $ | 8,131 | | | $ | 421,313 | | | $ | 57,601 | | | $ | 681 | | | $ | 556,430 | | | Interest expense | | (41,933) | | | (1,814) | | | (5,851) | | | (387,325) | | | (77,731) | | | — | | | (514,654) | | | Net interest income (expense) | | 25,209 | | | (252) | | | 2,280 | | | 33,988 | | | (20,130) | | | 681 | | | 41,776 | | | Non-interest income (loss) | | | | | | | | | | | | | | | | Mortgage banking activities, net, excluding risk management derivatives | | (22,624) | | | 1,356 | | | 29,201 | | | — | | | — | | | — | | | 7,933 | | Risk management derivatives gains (losses), net (1) | | 68,856 | | | (1,041) | | | (1,838) | | | — | | | — | | | — | | | 65,977 | | | Total Mortgage banking activities, net | | 46,232 | | | 315 | | | 27,363 | | | — | | | — | | | — | | | 73,910 | | | Investment fair value changes, net, excluding risk management derivatives | | — | | | — | | | — | | | (49,626) | | | (77,677) | | | (212) | | | (127,515) | | Risk management derivatives gains (losses), net (1) | | — | | | — | | | — | | | 44,251 | | | (6,628) | | | — | | | 37,623 | | | Total Investment fair value changes, net | | — | | | — | | | — | | | (5,375) | | | (84,305) | | | (212) | | | (89,892) | | | HEI income (loss), net | | — | | | — | | | — | | | 181 | | | (2,914) | | | — | | | (2,733) | | | Servicing income, net | | — | | | — | | | — | | | 5,015 | | | — | | | — | | | 5,015 | | | Fee income (loss), net | | — | | | — | | | 5,861 | | | 554 | | | (1,855) | | | — | | | 4,560 | | | Other income (loss), net | | — | | | — | | | 2,397 | | | 764 | | | — | | | (1,259) | | | 1,902 | | | Realized gains, net | | — | | | — | | | — | | | 1,207 | | | — | | | — | | | 1,207 | | | Total non-interest income (loss), net | | 46,232 | | | 315 | | | 35,621 | | | 2,346 | | | (89,074) | | | (1,471) | | | (6,031) | | | General and administrative expenses | | (11,433) | | | (2,118) | | | (20,815) | | | (2,877) | | | (73) | | | (37,138) | | | (74,454) | | | Portfolio management costs | | — | | | — | | | — | | | (4,654) | | | (11,865) | | | — | | | (16,519) | | | Loan acquisition costs | | (2,338) | | | — | | | (6,011) | | | — | | | — | | | — | | | (8,349) | | | Other expenses | | — | | | — | | | (4,405) | | | (3,539) | | | — | | | — | | | (7,944) | | | (Provision for) Benefit from income taxes | | (16,502) | | | (49) | | | 927 | | | 1,871 | | | 2,535 | | | 394 | | | (10,824) | | | Net Income (Loss) | | $ | 41,168 | | | $ | (2,104) | | | $ | 7,597 | | | $ | 27,135 | | | $ | (118,607) | | | $ | (37,534) | | | $ | (82,345) | | | Dividends on preferred stock | | (889) | | | (45) | | | (168) | | | (1,051) | | | (1,354) | | | — | | | (3,507) | | Net Income (Loss) Available (Related) To Common Stockholders (2) | | $ | 40,279 | | | $ | (2,149) | | | $ | 7,429 | | | $ | 26,084 | | | $ | (119,961) | | | $ | (37,534) | | | $ | (85,852) | | | Total Assets | | $ | 1,551,366 | | | $ | 137,751 | | | $ | 301,743 | | | $ | 15,982,357 | | | $ | 2,953,731 | | | $ | 406,072 | | | $ | 21,333,020 | |
(1)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations and Legacy Investments. Mortgage banking activities, net, also includes other derivative financial instruments such as loan purchase commitments and interest rate locks. (2)Net Income (Loss) by segment is also referred to as Segment Contribution (Loss).
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