MILL VALLEY -- Redwood Trust, Inc. (NYSE: RWT) on Wednesday reported second-quarter net income rose by three and a third times from a year before.
Net income in the real estate investment trust's second quarter, ended June 30, was $66 million, up from $20 a year before and equivalent to 71 cents per diluted share. Estimated taxable income was $20 million, up from $16 million.
The REIT, which brokers, invests in and securitizes residential and commercial mortgages, had total assets of $5.4 billion at the mid-year point, compared with $5.2 billion a year prior. The portfolio had $3.2 billion in residential loans -- up from $2.8 billion at the end of last year but down from $3.47 billion at the same point last year -- and $1.3 billion in real estate securities.
While income had risen during the quarter, company described in its quarterly shareholder publication that a recent uptick in interest rates had lessened the value of some older mortgages held either for direct sale or securitization. Those mortgages are expected to be sold off during the third quarter, generating a profit when factored with related hedge investments.
Redwood Trust issued $2.2 billion in asset-backed securities for the quarter, compared to $2.5 billion six months ago and $3.56 billion as of June 30 2012.
Other accomplishments for the quarter the company highlights in its financial-report announcement were adding a 100th seller to its residential mortgage conduit and becoming an approved seller and servicer for both Fannie Mae and Freddie Mac.
Redwood Trust declared a quarterly dividend of 28 cents per share, payable on Sept. 30 to shareholders of record as of Sept. 13.
Shares were trading at $16.20 a share after hours Wednesday, down more than 2 percent from the closing price of $16.56. The price at the end of trading was off 15 cents a share, or just less than 1 percent, from Tuesday.