What is Redwood Trust's legacy investments — allowance for credit loss?

Redwood Trust (RWT) reported legacy investments — allowance for credit loss of $3.00M in Q1 2026.

What does legacy investments — allowance for credit loss mean?

The reserve set aside to cover expected losses from loans or investments that may not be repaid.

Business Segments · Allowance for credit loss

Legacy Investments — Allowance for credit loss

Redwood Trust Legacy Investments — Allowance for credit loss increased by 900.0% to $3.00M in Q1 2026 compared to the prior quarter. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementSegment

CategoryRisk

SignalLower is better

VolatilityModerate

First reportedQ4 2025

Last reportedQ1 2026May 7, 2026

Rolls up toNet loans

How to read this metric

An increase suggests management expects higher future defaults or a worsening economic outlook, while a decrease suggests improved credit expectations.

Detailed definition

This is a contra-asset account representing the estimated amount of credit losses expected over the life of the legacy i...

Peer comparison

Equivalent to 'Allowance for Loan and Lease Losses' (ALLL) or 'Credit Loss Reserves' at peer financial institutions.

Metric ID: rwt_segment_legacy_investments_allowance_for_credit_loss

Historical Data

2 periods

	Q4 '25	Q1 '26
Value	$300.00K	$3.00M
QoQ Change	—	+900.0%

Range$300.00K – $3.00M

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Frequently Asked Questions

What is Redwood Trust's legacy investments — allowance for credit loss?: Redwood Trust (RWT) reported legacy investments — allowance for credit loss of $3.00M in Q1 2026.
What does legacy investments — allowance for credit loss mean?: The reserve set aside to cover expected losses from loans or investments that may not be repaid.