Marin County's Redwood Trust Q3 revenues jump 51% as loan portfolio soars 82%
Redwood Trust Inc. (NYSE: RWT) on Wednesday reported third-quarter earnings of $34 million, down 17% from a year before.
The Mill Valley-based company said it had net income of 31 cents per share for the quarter ended Sept. 30, down 26% from 42 cents a year before. Earnings, adjusted for non-recurring costs, were 37 cents per share, barely changed over 12 months from 38 cents.
The specialty finance company posted revenue of $150 million in the period, up 51% from $99 million in the previous third quarter. Its adjusted revenue was $34 million.
Redwood Trust's loan portfolio grew 82% over 12 months, to $12.8 billion.
“The third quarter marked a historic time for Redwood, a time where we made significant progress positioning the
company for the future of housing finance,” said Chris Abate, CEO, in the announcement of financial results. “While the rate environment offered a variety of opportunities and challenges, we were able to leverage the strength of our business model to navigate through continued market volatility and execute on our long-term strategic initiatives. We spent ample time in the third quarter focused on the acquisition of CoreVest, our long-term funding needs, and our portfolio optimization goals, which we believe will deliver strong and durable returns for our shareholders.”
The company said it completed its $492 million acquisition of CoreVest earlier this month.
Redwood Trust shares have increased 11% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $16.78, a rise of 2.5% in the last 12 months.
North Bay Business Journal contributed to this report.