bivey@imfpubs.com

Redwood Trust, Mill Valley, CA, earned $55.0 million from its investment portfolio in the third quarter of 2019, up 25.1% from the previous period, according to results released Wednesday afternoon.

Overall, the REIT posted net income of $34.3 million, a sequential improvement of 9.7%. Its mortgage banking division generated $3.4 million of net income.

The company registered $5.06 billion of total investments as of Sept. 30, including a $2.21 billion securities portfolio. During the first nine months of 2019, the investment portfolio generated returns of roughly 12%.

The REIT deployed $152.0 million of capital for its investment portfolio in the third quarter, with about half of the purchases concentrated on re-performing loan securities issued by Freddie Mac.