MILL VALLEY, Calif. (AP) -- Redwood Trust Inc., a real estate investment trust, said Monday Diane L. Merdian has been named chief financial officer, effective in March.

Martin S. Hughes, who currently serves as president, co-chief operating officer, and chief financial officer, will serve as CFO until March. Hughes will continue to serve as president and co-chief operating officer thereafter.

Separately, Jeffrey T. Pero has been elected to the board of directors. Merdian has resigned from her position as a board member.

Merdian previously worked as an equity research analyst focused on the banking sector. She also worked as bank strategist and senior bank research analyst of Keefe, Bruyette & Woods, where she was a managing director.

Shares rose 39 cents, or 2.8 percent, to $14.10, in afternoon trading.