Redwood Trust (RWT) took in more profits in the first quarter on higher market value adjustments of its securities.

The California real estate investment trust reported $30 million in net income, or 37 cents per share, up 66% from $18 million in profits one year ago.

It reported a $27 million gain on market valuation adjustments in the first quarter, up from a $24 million increase last year.

The value of the mortgage-backed securities Redwood held at fair value was $1.2 billion in the first quarter.

Redwood issued several of the only private-label MBS since the mortgage market froze in 2007. It sold two deals already in 2012 and has several more planned by the end of the year.

It held more than $3.3 billion in mortgages on its book for investment and another $303 million for sale as of March 31, up from just $2 million at the end of the first quarter last year.

jprior@housingwire.com

@JonAPrior