Redwood Trust announces strongest quarter since recession

MILL VALLEY -- Redwood Trust, Inc. (NYSE: RWT) today announced net income of $61 million for the first quarter of 2013, equivalent to 69 cents per diluted share and up 45.2 percent versus earnings in the first three months of last year.

Calling those earnings its strongest in the post-recession economy, the real estate investment and lending firm credited its earnings on the resale of purchased residential and commercial loans for helping to fuel that increase.

The company noted several highlights for the quarter, including four residential loan securitizations totaling $2.2 billion. The company identified $3.1 billion in residential loans for purchase during the quarter, up from $2.1 billion identified in the prior quarter.

Net interest income for the first quarter was $35 million, up from $4 million in the prior quarter. Revenue from mortgage banking was $44 million, up from $24 million in the prior quarter. Revenue from real estate investment trust activity was $16 million, compared to $10 million in the first quarter of 2012.

Redwood Trust had total assets of $4.8 billion at the end of the quarter, up from $4.4 billion in the prior quarter and down from $5.4 one year prior. The company issued a 28 cent dividend to common shareholders for the quarter, compared to 25 cents in each quarter in the year prior.


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