Redwood Trust (RWT), the only major private-label issuer of residential mortgage-backed securities in the wake of the housing crisis, saw its profit grow 100% in the third-quarter of 2012.

Redwood reported third-quarter net income of $40 million or $0.48 per share, compared to $1 million or $0.01 per share in the year-ago quarter.

Redwood's balance sheet also shows gradual growth in its real estate exposures, with $1.3 billion in fair value of real estate securities on its books in September. That's up slightly from $1.31 billion in June, $1.26 billion in March and $1.033 billion a year earlier.

As far as residential loans on its consolidated balance sheet, the company reported its home loans had $3.49 billion in value, which is down from $4.15 billion.

The firm's profit also is a dramatic increase from $1 million, or 1 cent a share, for the third quarter of 2011.

Redwood recently brought its seventh RMBS to market since the recession.

kpanchuk@housingwire.com