As of September 30, 2024, Redwood Trust, Inc. reported significant growth in its financial performance compared to the previous fiscal period. The company’s total assets increased to $18.43 billion, up from $14.50 billion at the end of 2023. This growth was driven by a rise in residential consumer loans held-for-sale, which reached $1.36 billion, and residential consumer loans held-for-investment, which rose to $9.79 billion.

The company’s interest income for the third quarter of 2024 was $248.64 million, a substantial increase from $177.07 million in the same quarter of 2023. For the nine months ended September 30, 2024, interest income totaled $678.80 million, compared to $534.57 million in the prior year. Net interest income also saw an increase, reaching $25.50 million for Q3 2024, up from $20.35 million in Q3 2023, and $75.00 million for the nine-month period, compared to $72.88 million in 2023.

Non-interest income from mortgage banking activities surged to $39.57 million in Q3 2024, compared to $19.44 million in Q3 2023, and totaled $73.05 million for the nine months, up from $52.66 million in the previous year. Total non-interest income for Q3 2024 was $44.22 million, a significant recovery from a loss of $9.59 million in Q3 2023.

Net income for Q3 2024 was $14.83 million, a stark contrast to a net loss of $30.81 million in Q3 2023. For the nine months ended September 30, 2024, net income reached $60.62 million, compared to a loss of $23.32 million in the same period of 2023. Basic earnings per share improved to $0.09 for Q3 2024, compared to a loss of $0.29 in Q3 2023.

Strategically, Redwood Trust has focused on expanding its residential consumer mortgage banking segment, which has benefited from lower interest rates and enhanced partnerships with banking institutions. The company completed three securitizations in Q3 2024, bringing the year-to-date total to nine, backed by over $4 billion in mortgage loan collateral. Additionally, the company has committed to funding up to $429 million in residential investor bridge loans.

Operating expenses increased due to higher variable compensation and loan acquisition costs, reflecting the company's growth initiatives. The company also reported a common dividend increase of 6.25% to $0.17 per share for Q3 2024, marking its first increase since 2021.

Overall, Redwood Trust's financial results for the third quarter and nine months ended September 30, 2024, demonstrate a robust recovery and strategic positioning within the housing credit market.