Equity

The following table provides a summary of changes to accumulated other comprehensive income by component for the three months ended March 31, 2016 and 2015.

Table 16.1 – Changes in Accumulated Other Comprehensive Income by Component



	Three Months Ended March 31, 2016						Three Months Ended March 31, 2015
(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	$	139,356		$	(47,363	)	$	186,737		$	(46,049	)
Other comprehensive income (loss) before reclassifications	(10,103		)	(14,243		)	5,053			(8,442		)
Amounts reclassified from other accumulated comprehensive income	(10,953		)	18			(1,690		)	31
Net current-period other comprehensive income (loss)	(21,056		)	(14,225		)	3,363			(8,411		)
Balance at End of Period	$	118,300		$	(61,588	)	$	190,100		$	(54,460	)

The following table provides a summary of reclassifications out of accumulated other comprehensive income for three months ended March 31, 2016 and 2015.

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 March 31,
(In Thousands)	Income Statement	2016			2015
Net realized (gain) loss on AFS securities
Gain on sale of AFS securities	Realized gains, net	(10,953		)	(1,690		)
		$	(10,953	)	$	(1,690	)
Net realized loss on interest rate agreements designated as cash flow hedges
Amortization of deferred loss	Interest expense	$	18		$	31
		$	18		$	31

Earnings Per Common Share

The following table provides the basic and diluted earnings per common share computations for the three months ended March 31, 2016 and 2015.

Table 16.3 – Basic and Diluted Earnings Per Common Share



	Three Months Ended March 31,
(In Thousands, Except Share Data)	2016			2015
Basic Earnings Per Common Share:
Net income attributable to Redwood	$	12,063		$	14,801
Less: Dividends and undistributed earnings allocated to participating securities	(701		)	(822		)
Net income allocated to common shareholders	$	11,362		$	13,979
Basic weighted average common shares outstanding	77,137,682			83,360,312
Basic Earnings Per Common Share	$	0.15		$	0.17
Diluted Earnings Per Common Share:
Net income attributable to Redwood	$	12,063		$	14,801
Less: Dividends and undistributed earnings allocated to participating securities	(701		)	(822		)
Net income allocated to common shareholders	$	11,362		$	13,979
Weighted average common shares outstanding	77,137,682			83,360,312
Net effect of dilutive equity awards	—			2,261,904
Diluted weighted average common shares outstanding	77,137,682			85,622,216
Diluted Earnings Per Common Share	$	0.15		$	0.16

For the three months ended March 31, 2016 and 2015, 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. 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, 2016 and 2015, 21,245,028 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 months ended March 31, 2016 and 2015, the number of outstanding equity awards that were antidilutive totaled 6,950 and 79,535, respectively.

Stock Repurchases

In August 2015, our Board of Directors authorized the repurchase of up to $100 million of our common stock. During the three months ended March 31, 2016, we repurchased 839,130 common shares for $11 million, utilizing the remaining availability under this authorization.

In February 2016, our Board of Directors approved an additional authorization for the repurchase of up to $100 million of our common stock and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. This current authorization replaced all previous share repurchase plans and has no expiration date. This current repurchase authorization does not obligate us to acquire any specific number of shares or securities. Under this current authorization, shares or securities 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. Under this authorization, during the three months ended March 31, 2016, we repurchased 770,055 shares pursuant to this authorization for $9 million. During the three months ended March 31, 2015, there were no shares acquired under then-existing share repurchase authorization. At March 31, 2016, approximately $91 million of this current authorization remained available for the repurchase of shares of our common stock.