XML 82 R24.htm IDEA: XBRL DOCUMENT
v3.2.0.727

Equity | 6 Months Ended
--- | ---
Jun. 30, 2015
Equity [Abstract] |
Equity | Equity The following table provides a summary of changes to accumulated other comprehensive income by component for the three and six months ended June 30, 2015 and 2014. Changes in Accumulated Other Comprehensive Income by Component
|  | Three Months Ended June 30, 2015 |  | Three Months Ended June 30, 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 |  | $ | 190,100 |  |  | $ | (54,460 | ) |  | $ | 185,275 |  |  | $ | (24,623 | )
Other comprehensive income (loss) before reclassifications |  | (5,080 | ) |  | 15,469 |  |  | 12,721 |  |  | (5,401 | )
Amounts reclassified from other accumulated comprehensive income |  | (5,361 | ) |  | 26 |  |  | (454 | ) |  | 39 |
Net current-period other comprehensive income (loss) |  | (10,441 | ) |  | 15,495 |  |  | 12,267 |  |  | (5,362 | )
Balance at End of Period |  | $ | 179,659 |  |  | $ | (38,965 | ) |  | $ | 197,542 |  |  | $ | (29,985 | )
|  | Six Months Ended June 30, 2015 |  | Six Months Ended June 30, 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 |  | (28 | ) |  | 7,026 |  |  | 33,229 |  |  | (14,196 | )
Amounts reclassified from other accumulated comprehensive income |  | (7,050 | ) |  | 58 |  |  | (341 | ) |  | 99 |
Net current-period other comprehensive income (loss) |  | (7,078 | ) |  | 7,084 |  |  | 32,888 |  |  | (14,097 | )
Balance at End of Period |  | $ | 179,659 |  |  | $ | (38,965 | ) |  | $ | 197,542 |  |  | $ | (29,985 | )
The following table provides a summary of reclassifications out of accumulated other comprehensive income for three and six months ended June 30, 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 June 30,
(In Thousands) |  | Income Statement |  | 2015 |  | 2014
Net realized gains (losses) on AFS securities |  |  |  |  |  |
Other than temporary impairment |  | Mortgage banking and investment activities, net |  | $ | — |  |  | $ | 264 |
Gain on sale of AFS securities |  | Realized gains, net |  | (5,361 | ) |  | (718 | )
|  |  |  | $ | (5,361 | ) |  | $ | (454 | )
Net realized gains on interest rate agreements designated as cash flow hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 26 |  |  | $ | 39 |
|  |  |  | $ | 26 |  |  | $ | 39 |
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive Income
|  | Affected Line Item in the |  | Six Months Ended June 30,
(In Thousands) |  | Income Statement |  | 2015 |  | 2014
Net realized gains (losses) on AFS securities |  |  |  |  |  |
Other than temporary impairment |  | Mortgage banking and investment activities, net |  | $ | — |  |  | $ | 377 |
Gain on sale of AFS securities |  | Realized gains, net |  | (7,050 | ) |  | (718 | )
|  |  |  | $ | (7,050 | ) |  | $ | (341 | )
Net realized gains on interest rate agreements designated as cash flow hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 58 |  |  | $ | 99 |
|  |  |  | $ | 58 |  |  | $ | 99 |
Earnings Per Common Share The following table provides the basic and diluted earnings per common share computations for the three and six months ended June 30, 2015 and 2014. Basic and Diluted Earnings Per Common Share
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In Thousands, Except Share Data) |  | 2015 |  | 2014 |  | 2015 |  | 2014
Basic Earnings Per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 27,064 |  |  | $ | 16,017 |  |  | $ | 41,865 |  |  | $ | 28,350 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (642 | ) |  | (537 | ) |  | (1,375 | ) |  | (1,239 | )
Net income allocated to common shareholders |  | $ | 26,422 |  |  | $ | 15,480 |  |  | $ | 40,490 |  |  | $ | 27,111 |
Basic weighted average common shares outstanding |  | 83,936,844 |  |  | 82,740,012 |  |  | 83,650,170 |  |  | 82,575,636 |
Basic Earnings Per Common Share |  | $ | 0.31 |  |  | $ | 0.19 |  |  | $ | 0.48 |  |  | $ | 0.33 |
Diluted Earnings Per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 27,064 |  |  | $ | 16,017 |  |  | $ | 41,865 |  |  | $ | 28,350 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (619 | ) |  | (537 | ) |  | (1,375 | ) |  | (1,239 | )
Add back: Interest expense on convertible notes for the period, net of tax |  | 2,789 |  |  | — |  |  | — |  |  | — |
Net income allocated to common shareholders |  | $ | 29,234 |  |  | $ | 15,480 |  |  | $ | 40,490 |  |  | $ | 27,111 |
Weighted average common shares outstanding |  | 83,936,844 |  |  | 82,740,012 |  |  | 83,650,170 |  |  | 82,575,636 |
Net effect of dilutive equity awards |  | 1,546,038 |  |  | 2,292,986 |  |  | 1,823,735 |  |  | 2,418,685 |
Net effect of assumed convertible notes conversion to common shares |  | 9,466,859 |  |  | — |  |  | — |  |  | — |
Diluted weighted average common shares outstanding |  | 94,949,741 |  |  | 85,032,998 |  |  | 85,473,905 |  |  | 84,994,321 |
Diluted Earnings Per Common Share |  | $ | 0.31 |  |  | $ | 0.18 |  |  | $ | 0.47 |  |  | $ | 0.32 |
For the three and six months ended June 30, 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 these shares. For the three and six months ended June 30, 2015, there were 1,546,038 and 1,823,735 of dilutive equity awards, respectively. For the three and six months ended June 30, 2014, there were 2,292,986 and 2,418,685 of dilutive equity awards, respectively. 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 June 30, 2015, common shares related to the assumed conversion of convertible notes totaling 9,466,859 were included in the calculation of diluted earnings per share as they were determined to be dilutive. For the three and six months ended June 30, 2015, 11,825,450 and 21,292,309, 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 and six months ended June 30, 2015, the number of outstanding equity awards that were antidilutive totaled 286,075 and 299,491, respectively. For the three and six months ended June 30, 2014, the number of outstanding equity awards that were antidilutive totaled 70,508 and 271,392, respectively. 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 had no expiration date. During the six months ended June 30, 2015, there were no shares acquired under the plan. In August 2015, our Board of Directors authorized the repurchase of up to $100 million of our common stock, replacing the Board’s previous share repurchase authorization. Our share repurchase authorization does not obligate us to acquire any specific number of shares. Under this authorization, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. As of August 7, 2015, no shares had been acquired under this authorization.

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(d),(e)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 4.E) -URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29-31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB TOPIC 4.C) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph d -Article 4 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Article 4 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section C Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 + Details
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration