Equity (Tables)

12 Months Ended

Dec. 31, 2015

Changes to Accumulated Other Comprehensive Income (Loss) by Component

The following table provides a summary of changes in accumulated other comprehensive income by component for the years ended December 31, 2015 and 2014.

Table 16.1 – Changes in Accumulated Other Comprehensive Income by Component



	Years Ended December 31,
	2015						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	(17,955		)	(1,409		)	32,635			(30,325		)
Amounts reclassified from other accumulated comprehensive income	(29,426		)	95			(10,552		)	164
Net current-period other comprehensive income (loss)	(47,381		)	(1,314		)	22,083			(30,161		)
Balance at End of Period	$	139,356		$	(47,363	)	$	186,737		$	(46,049	)

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

The following table provides a summary of reclassifications out of accumulated other comprehensive income for the years ended December 31, 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	Years Ended December 31,
(In Thousands)	Income Statement	2015			2014
Net realized (gain) loss on AFS securities
Other than temporary impairment ⁽¹⁾	Mortgage banking and investment activities, net	$	246		$	565
Gain on sale of AFS securities	Realized gains, net	(29,672		)	(11,117		)
		$	(29,426	)	$	(10,552	)
Net realized loss on interest rate agreements designated as cash flow hedges
Amortization of deferred loss	Interest expense	$	95		$	164
		$	95		$	164

(1)

For the year ended December 31, 2015, other-than-temporary impairments were $419, of which $246 were recognized through the Income Statement and $173 were recognized in Accumulated Other Comprehensive Income. For the year ended December 31, 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 (Loss) Per Common Share

The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2015, 2014, and 2013.

Table 16.3 – Basic and Diluted Earnings Per Common Share



	Years Ended December 31,
(In Thousands, Except Share Data)	2015			2014			2013
Basic Earnings Per Common Share:
Net income attributable to Redwood	$	102,088		$	100,569		$	173,246
Less: Dividends and undistributed earnings allocated to participating securities	(2,806		)	(2,612		)	(4,899		)
Net income allocated to common shareholders	$	99,282		$	97,957		$	168,347
Basic weighted average common shares outstanding	82,945,103			82,837,369			81,985,897
Basic Earnings Per Common Share	$	1.20		$	1.18		$	2.05
Diluted Earnings Per Common Share:
Net income attributable to Redwood	$	102,088		$	100,569		$	173,246
Less: Dividends and undistributed earnings allocated to participating securities	(2,677		)	(2,524		)	(3,726		)
Add back: Interest expense on convertible notes for the period, net of tax	—			—			12,641
Net income allocated to common shareholders	$	99,411		$	98,045		$	182,161
Weighted average common shares outstanding	82,945,103			82,837,369			81,985,897
Net effect of dilutive equity awards	1,573,292			2,261,210			1,957,081
Net effect of assumed convertible notes conversion to common shares	—			—			9,751,946
Diluted weighted average common shares outstanding	84,518,395			85,098,579			93,694,924
Diluted Earnings Per Common Share	$	1.18		$	1.15		$	1.94