Loans (Tables)

3 Months Ended

Mar. 31, 2012

Residential Loans

Recorded Investment and Year of Origination for Loans Held-For-Investment

The following table displays the recorded investment and year of origination for residential loans held-for-investment at March 31, 2012 and December 31, 2011.

(In Thousands)	March 31, 2012		December 31, 2011
2003 & Earlier	$	1,416,662	$	1,771,111
2004		1,029,269		1,045,815
2005		128,375		129,163
2006		179,712		181,017
2007		62,151		63,301
2008		-		-
2009		108,819		144,116
2010		308,864		343,278
2011		173,255		188,728
Total Recorded Investment	$	3,407,107	$	3,866,529

Loan Modifications Determined to be Troubled Debt Restructuring

The following table presents the details of the loan modifications determined to be TDRs for the three months ended March 31, 2012 and 2011.

	Three Months Ended  March 31,
(Dollars in Thousands)	2012		2011
Troubled Debt Restructurings
Number of modifications		4		1
Pre-modification outstanding recorded investment	$	1,713	$	488
Post-modification outstanding recorded investment		1,799		508
Loan modification effect on Net Interest Income After Provision and Other MVA		(479)		(131)
Troubled Debt Restructurings that Subsequently Defaulted
Number of modifications		1		-
Recorded investment	$	606	$	-

Summary of Classifications and Carrying Value of Loans

The following table summarizes the classifications and carrying value of the residential loans owned at Redwood and at consolidated Sequoia entities at March 31, 2012 and December 31, 2011.

March 31, 2012
(In Thousands)	Redwood		Sequoia		Total
Held-for-sale	$	303,106	$	-	$	303,106
Held-for-investment		-		3,347,952		3,347,952
Total Residential Loans	$	303,106	$	3,347,952	$	3,651,058

December 31, 2011
(In Thousands)	Redwood		Sequoia		Total
Held-for-sale	$	395,237	$	-	$	395,237
Held-for-investment		-		3,799,648		3,799,648
Total Residential Loans	$	395,237	$	3,799,648	$	4,194,885

Carrying Value for Loans Held-for-Investment

The following table details the carrying value for residential loans held-for-investment at March 31, 2012 and December 31, 2011. These loans are owned at Sequoia securitization entities that we consolidate for financial reporting purposes.

(In Thousands)	March 31, 2012		December 31, 2011
Principal balance	$	3,372,830	$	3,829,847
Unamortized premium, net		34,277		36,682
Recorded investment		3,407,107		3,866,529
Allowance for loan losses		(59,155)		(66,881)
Carrying Value	$	3,347,952	$	3,799,648

Summary of Activity in Allowance for Loans Losses

The following table summarizes the activity in the allowance for loan losses for the three months ended March 31, 2012 and 2011.

	Three Months  Ended March 31,
(In Thousands)	2012		2011
Balance at beginning of period	$	66,881	$	62,432
Charge-offs, net		(3,148)		(2,317)
Provision for loan losses		-		2,807
Deconsolidation adjustment		(4,578)		-
Balance at End of Period	$	59,155	$	62,922

Residential Loans | Collectively Evaluated for Impairment

Recorded Investment and Past Due Status of Loans

The following table summarizes the recorded investment and past due status of residential loans collectively evaluated for impairment at March 31, 2012 and December 31, 2011.

(In Thousands)	30-59 Days         Past Due		60-89 Days         Past Due		90+ Days         Past  Due		Current		Total      Loans
March 31, 2012	$	52,988	$	9,969	$	121,878	$	3,207,446	$	3,392,281
December 31, 2011		58,954		20,938		135,671		3,636,892		3,852,455

Loans Evaluated for Impairment

The following table summarizes the balances for loans collectively evaluated for impairment at March 31, 2012 and December 31, 2011.

(In Thousands)	March 31, 2012		December 31, 2011
Principal balance	$	3,357,195	$	3,815,010
Recorded investment		3,392,281		3,852,455
Related allowance		56,195		64,069

Residential Loans | Individually Evaluated for Impairment

Loans Evaluated for Impairment

The following table summarizes the balances for loans individually evaluated for impairment, all of which had an allowance, at March 31, 2012 and December 31, 2011.

(In Thousands)	March 31, 2012		December 31, 2011
Principal balance	$	15,635	$	14,837
Recorded investment		14,826		14,074
Related allowance		2,960		2,812

Recorded Investment and Past Due Status of Loans

The following table summarizes the recorded investment and past due status of residential loans individually evaluated for impairment at March 31, 2012 and December 31, 2011.

	30-59 Days         Past Due		60-89 Days         Past Due		90+ Days         Past Due		Current		Total     Loans
(In Thousands)
March 31, 2012	$	1,873	$	1,008	$	2,011	$	9,934	$	14,826
December 31, 2011		768		2,222		2,026		9,058		14,074

Commercial Loans

Summary of Classifications and Carrying Value of Loans

The following table summarizes the classifications and carrying value of commercial loans at March 31, 2012 and December 31, 2011.

March 31, 2012
(In Thousands)	Redwood		Acacia		Total Loans
Fair value	$	-	$	12,103	$	12,103
Held-for-investment		178,415		-		178,415
Total Commercial Loans	$	178,415	$	12,103	$	190,518

December 31, 2011
(In Thousands)	Redwood		Acacia		Total Loans
Fair value	$	-	$	12,129	$	12,129
Held-for-investment		157,726		-		157,726
Total Commercial Loans	$	157,726	$	12,129	$	169,855

Carrying Value for Loans Held-for-Investment

The following table provides additional information for our commercial loans held-for-investment at March 31, 2012 and December 31, 2011.

(In Thousands)	March 31, 2012		December 31, 2011
Principal balance	$	182,803	$	158,847
Unamortized discount, net		(3,506)		(513)
Recorded investment		179,297		158,334
Allowance for loan losses		(882)		(608)
Carrying Value	$	178,415	$	157,726

Summary of Activity in Allowance for Loans Losses

The following table summarizes the activity in the allowance for commercial loan losses for the three months ended March 31, 2012 and 2011.

	Three Months Ended  March 31,
(In Thousands)	2012		2011
Balance at beginning of period	$	608	$	-
Charge-offs, net		-		-
Provision for loan losses		274		-
Balance at End of Period	$	882	$	-

Commercial Loans | Collectively Evaluated for Impairment

Loans Evaluated for Impairment

The following table summarizes the balances for loans collectively evaluated for impairment at March 31, 2012 and December 31, 2011.

(In Thousands)	March 31, 2012		December 31, 2011
Principal balance	$	182,803	$	158,847
Recorded investment		179,297		158,334
Related allowance		882		608