Redwood Trust reported higher net income during the second quarter from a year ago, thanks to an increase in net interest income and a decrease in operating expenses.
The real estate investment trust's net income rose 52% year over year to $41 million. Earnings per share were 48 cents.
Net interest income went up by 24% to $51 million, reflecting higher interest income and a $7 million reversal of the provision for loan losses.
Operating expenses fell 20% to $20 million, and Redwood also recorded no provision for income taxes versus a year ago when it reported a $2 million charge.
Total non-interest income meanwhile fell 21% to $11 million, as an $11 million charge for net investment fair value changes offset higher profits from mortgage banking, net realized gains and net mortgage servicing rights income.
