Profits at Redwood Trust shrank during the fourth quarter, reflecting lower interest income and net losses on the fair value of investments.
The Mill Valley, Calif.-based real estate investment trust reported net income of $25 million in the fourth quarter, down from $53 million in the third quarter and $41 million a year ago. Earnings per share were 31 cents.
Net interest income dropped to $36 million from $44 million a year earlier.
Similarly, net total noninterest income dropped 50% year over year to $10 million. Redwood recorded a $10 million net loss on fair value changes to its investments. Net realized gains decreased 90% to just $2 million.
Conversely, income from Redwood's mortgage banking activities continued to increase, rising to $14 million from $10 million the quarter prior. Operating expenses also improving, falling to $18 million from $20 million in the third quarter and $23 million a year ago.
