Equity

The following table provides a summary of changes to accumulated other comprehensive income by component for the three months ended March 31, 2015 and 2014.

Changes in Accumulated Other Comprehensive Income by Component



	Three Months Ended March 31, 2015						Three Months Ended March 31, 2014
(In Thousands)	Net unrealized gains on available-for-sale securities			Net unrealized losses on interest rate agreements accounted for as cash flow hedges			Net unrealized gains on available-for-sale securities		Net unrealized losses on interest rate agreements accounted for as cash flow hedges
Balance at beginning of period	$	186,737		$	(46,049	)	$	164,654	$	(15,888	)
Other comprehensive income (loss) before reclassifications	5,053			(8,442		)	19,323		(8,795		)
Amounts reclassified from other accumulated comprehensive income	(1,690		)	31			1,298		60
Net current-period other comprehensive income (loss)	3,363			(8,411		)	20,621		(8,735		)
Balance at End of Period	$	190,100		$	(54,460	)	$	185,275	$	(24,623	)

The following table provides a summary of reclassifications out of accumulated other comprehensive income for three months ended March 31, 2015 and 2014.

Reclassifications Out of Accumulated Other Comprehensive Income



		Amount Reclassified From Accumulated Other Comprehensive Income
	Affected Line Item in the	Three Months Ended March 31,
(In Thousands)	Income Statement	2015			2014
Net realized gains (losses) on AFS securities
Other than temporary impairment	Other market valuations, net	$	—		$	1,298
Gain on sale of AFS securities	Realized gains, net	$	(1,690	)	$	—
		$	(1,690	)	$	1,298
Net realized gains on interest rate agreements designated as cash flow hedges
Amortization of deferred loss	Interest expense	$	31		$	60
		$	31		$	60

Earnings Per Common Share

The following table provides the basic and diluted earnings per common share computations for the three months ended March 31, 2015 and 2014.

Basic and Diluted Earnings Per Common Share



	Three Months Ended March 31,
(In Thousands, Except Share Data)	2015			2014
Basic Earnings Per Common Share:
Net income attributable to Redwood	$	14,801		$	12,333
Less: Dividends and undistributed earnings allocated to participating securities	(822		)	(702		)
Net income allocated to common shareholders	$	13,979		$	11,631
Basic weighted average common shares outstanding	83,360,312			82,410,562
Basic Earnings Per Common Share	$	0.17		$	0.14

Diluted Earnings Per Common Share:
Net income attributable to Redwood	$	14,801		$	12,333
Less: Dividends and undistributed earnings allocated to participating securities	(822		)	(702		)
Net income allocated to common shareholders	$	13,979		$	11,631
Weighted average common shares outstanding	83,360,312			82,410,562
Net effect of dilutive equity awards	2,261,904			2,529,978
Diluted weighted average common shares outstanding	85,622,216			84,940,540
Diluted Earnings Per Common Share	$	0.16		$	0.14

For the three months ended March 31, 2015 and 2014, we determined certain equity awards outstanding during each of these periods qualified as participating securities. We included participating securities in the calculation of basic earnings per common share as well as diluted earnings per common share as we determined that the two-class method was more dilutive than the alternative treasury stock method. For the three months ended March 31, 2015 and 2014, there were 2,261,904 and 2,529,978 of dilutive equity awards, respectively, determined under the two-class method. Dividends and undistributed earnings allocated to participating securities under the basic and diluted earnings per share calculations require specific shares to be included that may differ in certain circumstances.

For the three months ended March 31, 2015 and 2014, 21,292,309 and 11,825,450, respectively, of common shares related to the assumed conversion of the convertible notes were antidilutive and were excluded in the calculation of diluted earnings per share. For the three months ended March 31, 2014, the number of outstanding equity awards that were antidilutive totaled 79,535.

Stock Repurchases

We announced a stock repurchase authorization in November 2007 for the repurchase of up to 5,000,000 common shares. This plan replaced all previous share repurchase plans and has no expiration date. During the three months ended March 31, 2015, there were no shares acquired under the plan. At March 31, 2015, there remained 4,005,985 shares available for repurchase under this plan.