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Equity (Tables)
 9 Months Ended
Sep. 30, 2015
Equity [Abstract]  
Changes to Accumulated Other Comprehensive Income by Component
The following table provides a summary of changes to accumulated other comprehensive income by component for the three and nine months ended September 30, 2015 and 2014.
Table 16.1 – Changes in Accumulated Other Comprehensive Income by Component
 
 
Three Months Ended September 30, 2015
 
Three Months Ended September 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
 
$
179,659

 
$
(38,965
)
 
$
197,542

 
$
(29,985
)
Other comprehensive income (loss)
before reclassifications
 
(5,673
)
 
(12,049
)
 
1,849

 
(3,258
)
Amounts reclassified from other
accumulated comprehensive income
 
(3,270
)
 
19

 
(6,409
)
 
32

Net current-period other comprehensive loss
 
(8,943
)
 
(12,030
)
 
(4,560
)
 
(3,226
)
Balance at End of Period
 
$
170,716

 
$
(50,995
)
 
$
192,982

 
$
(33,211
)
 
 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 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
 
(5,701
)
 
(5,023
)
 
35,078

 
(17,454
)
Amounts reclassified from other
accumulated comprehensive income
 
(10,320
)
 
77

 
(6,750
)
 
131

Net current-period other comprehensive income (loss)
 
(16,021
)
 
(4,946
)
 
28,328

 
(17,323
)
Balance at End of Period
 
$
170,716

 
$
(50,995
)
 
$
192,982

 
$
(33,211
)
Reclassifications out of Accumulated Other Comprehensive Income
The following table provides a summary of reclassifications out of accumulated other comprehensive income for three and nine months ended September 30, 2015 and 2014.
Table 16.2 – Reclassifications Out of Accumulated Other Comprehensive Income
 
 
 
 
Amount Reclassified From Accumulated Other Comprehensive Income
 
 
Affected Line Item in the
 
Three Months Ended September 30,
(In Thousands)
 
Income Statement
 
2015
 
2014
Net realized (gain) loss on AFS securities
 
 
 
 
 
 
Other than temporary impairment (1)
 
Mortgage banking and investment activities, net
 
$
198

 
$
188

Gain on sale of AFS securities
 
Realized gains, net
 
(3,468
)
 
(6,597
)
 
 
 
 
$
(3,270
)
 
$
(6,409
)
Net realized loss on interest rate
agreements designated as cash flow hedges
 
 
 
 
 
 
Amortization of deferred loss
 
Interest expense
 
$
19

 
$
32

 
 
 
 
$
19

 
$
32

 
 
 
 
Amount Reclassified From Accumulated Other Comprehensive Income
 
 
Affected Line Item in the
 
Nine Months Ended September 30,
(In Thousands)
 
Income Statement
 
2015
 
2014
Net realized (gain) loss on AFS securities
 
 
 
 
 
 
Other than temporary impairment (1)
 
Mortgage banking and investment activities, net
 
$
198

 
$
565

Gain on sale of AFS securities
 
Realized gains, net
 
(10,518
)
 
(7,315
)
 
 
 
 
$
(10,320
)
 
$
(6,750
)
Net realized loss on interest rate
agreements designated as cash flow hedges
 
 
 
 
 
 
Amortization of deferred loss
 
Interest expense
 
$
77

 
$
131

 
 
 
 
$
77

 
$
131


(1)
For both the three and nine months ended September 30, 2015, other-than-temporary impairments were $257, of which $198 were recognized through the Income Statement and $59 were recognized in Accumulated Other Comprehensive Income. For the three months ended September 30, 2014, other-than-temporary impairments were $188, all of which were recognized through the Income Statement.
For the nine months ended September 30, 2014, other-than-temporary impairments were $4,774, of which $565 were recognized through the Income Statement, and $4,209 were recognized in Accumulated Other Comprehensive Income.
Basic and Diluted Earnings Per Common Share
The following table provides the basic and diluted earnings per common share computations for the three and nine months ended September 30, 2015 and 2014.
Table 16.3 – Basic and Diluted Earnings Per Common Share
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In Thousands, Except Share Data)
 
2015
 
2014
 
2015
 
2014
Basic Earnings Per Common Share:
 
 
 
 
 
 
 
 
Net income attributable to Redwood
 
$
19,164

 
$
45,097

 
$
61,029

 
$
73,447

Less: Dividends and undistributed earnings allocated to participating securities
 
(553
)
 
(1,054
)
 
(1,928
)
 
(1,819
)
Net income allocated to common shareholders
 
$
18,611

 
$
44,043

 
$
59,101

 
$
71,628

Basic weighted average common shares outstanding
 
83,787,533

 
83,017,534

 
83,696,461

 
82,722,079

Basic Earnings Per Common Share
 
$
0.22

 
$
0.53

 
$
0.71

 
$
0.87

Diluted Earnings Per Common Share:
 
 
 
 
 
 
 
 
Net income attributable to Redwood
 
$
19,164

 
$
45,097

 
$
61,029

 
$
73,447

Less: Dividends and undistributed earnings allocated to participating securities
 
(553
)
 
(756
)
 
(1,928
)
 
(1,784
)
Add back: Interest expense on convertible notes for the period, net of tax
 
—

 
3,855

 
—

 
—

Net income allocated to common shareholders
 
$
18,611

 
$
48,196

 
$
59,101

 
$
71,663

Weighted average common shares outstanding
 
83,787,533

 
83,017,534

 
83,696,461

 
82,722,079

Net effect of dilutive equity awards
 
1,287,171

 
2,113,248

 
1,642,535

 
2,309,051

Net effect of assumed convertible notes conversion to common shares
 
—

 
11,825,450

 
—

 
—

Diluted weighted average common shares outstanding
 
85,074,704

 
96,956,232

 
85,338,996

 
85,031,130

Diluted Earnings Per Common Share
 
$
0.22

 
$
0.50

 
$
0.69

 
$
0.84