Keefe, Bruyette & Woods Report Redwood Trust's Credit Provision Increased To $7.9 Million

In a report published by Keefe, Bruyette & Woods, Redwood Trust's RWT operating EPS of $0.16 declined from $0.25 in 3Q as the company's credit provision (primarily related to its legacy Sequoia portfolio) increased to $7.9 million from $2.4 million. Keefe, Bruyette & Woods reported that, “RWT deployed $195 million into residential loans, acquired $26 million in RMBS, and originated $30 million in commercial loans. Economic BV increased to $14.31 from $13.73 in 3Q10. We reduce our 2011E to $1.20 and maintain OP.” Redwood Trust closed yesterday at $16.38.