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Equity (Tables) | 6 Months Ended
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Jun. 30, 2016
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 six months ended June 30, 2016 and 2015. Table 16.1 – Changes in Accumulated Other Comprehensive Income by Component
|  | Three Months Ended June 30, 2016 |  | Three Months Ended June 30, 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 |  | $ | 118,300 |  |  | $ | (61,588 | ) |  | $ | 190,100 |  |  | $ | (54,460 | )
Other comprehensive income (loss) before reclassifications |  | 6,260 |  |  | (8,949 | ) |  | (5,080 | ) |  | 15,469 |
Amounts reclassified from other accumulated comprehensive income |  | (7,711 | ) |  | 19 |  |  | (5,361 | ) |  | 26 |
Net current-period other comprehensive income (loss) |  | (1,451 | ) |  | (8,930 | ) |  | (10,441 | ) |  | 15,495 |
Balance at End of Period |  | $ | 116,849 |  |  | $ | (70,518 | ) |  | $ | 179,659 |  |  | $ | (38,965 | )
|  | Six Months Ended June 30, 2016 |  | Six Months Ended June 30, 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 |  | (3,843 | ) |  | (23,192 | ) |  | (28 | ) |  | 7,026 |
Amounts reclassified from other accumulated comprehensive income |  | (18,664 | ) |  | 37 |  |  | (7,050 | ) |  | 58 |
Net current-period other comprehensive income (loss) |  | (22,507 | ) |  | (23,155 | ) |  | (7,078 | ) |  | 7,084 |
Balance at End of Period |  | $ | 116,849 |  |  | $ | (70,518 | ) |  | $ | 179,659 |  |  | $ | (38,965 | )
Reclassifications out of Accumulated Other Comprehensive Income | The following table provides a summary of reclassifications out of accumulated other comprehensive income for three and six months ended June 30, 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 June 30,
(In Thousands) |  | Income Statement |  | 2016 |  | 2015
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | 305 |  |  | $ | — |
Gain on sale of AFS securities |  | Realized gains, net |  | (8,016 | ) |  | (5,361 | )
|  |  |  | $ | (7,711 | ) |  | $ | (5,361 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 19 |  |  | $ | 26 |
|  |  |  | $ | 19 |  |  | $ | 26 |
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive Income
|  | Affected Line Item in the |  | Six Months Ended June 30,
(In Thousands) |  | Income Statement |  | 2016 |  | 2015
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | 305 |  |  | $ | — |
Gain on sale of AFS securities |  | Realized gains, net |  | (18,969 | ) |  | (7,050 | )
|  |  |  | $ | (18,664 | ) |  | $ | (7,050 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 37 |  |  | $ | 58 |
|  |  |  | $ | 37 |  |  | $ | 58 |
(1) | For both the three and six months ended June 30, 2016, other-than-temporary impairments were $3 million, of which $0.3 million were recognized through our consolidated statements of income and $2 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet.
Basic and Diluted 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, 2016 and 2015. Table 16.3 – Basic and Diluted Earnings per Common Share
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In Thousands, except Share Data) |  | 2016 |  | 2015 |  | 2016 |  | 2015
Basic Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 41,281 |  |  | $ | 27,064 |  |  | $ | 53,344 |  |  | $ | 41,865 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,089 | ) |  | (642 | ) |  | (1,494 | ) |  | (1,375 | )
Net income allocated to common shareholders |  | $ | 40,192 |  |  | $ | 26,422 |  |  | $ | 51,850 |  |  | $ | 40,490 |
Basic weighted average common shares outstanding |  | 76,664,829 |  |  | 83,936,844 |  |  | 76,901,255 |  |  | 83,650,170 |
Basic Earnings per Common Share |  | $ | 0.52 |  |  | $ | 0.31 |  |  | $ | 0.67 |  |  | $ | 0.48 |
Diluted Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 41,281 |  |  | $ | 27,064 |  |  | $ | 53,344 |  |  | $ | 41,865 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,134 | ) |  | (619 | ) |  | (1,668 | ) |  | (1,375 | )
Add back: Interest expense on convertible notes for the period, net of tax |  | 7,015 |  |  | 2,789 |  |  | 7,637 |  |  | — |
Net income allocated to common shareholders |  | $ | 47,162 |  |  | $ | 29,234 |  |  | $ | 59,313 |  |  | $ | 40,490 |
Weighted average common shares outstanding |  | 76,664,829 |  |  | 83,936,844 |  |  | 76,901,255 |  |  | 83,650,170 |
Net effect of dilutive equity awards |  | 369 |  |  | 1,546,038 |  |  | 1,675 |  |  | 1,823,735 |
Net effect of assumed convertible notes conversion to common shares |  | 21,096,738 |  |  | 9,466,859 |  |  | 11,825,450 |  |  | — |
Diluted weighted average common shares outstanding |  | 97,761,936 |  |  | 94,949,741 |  |  | 88,728,380 |  |  | 85,473,905 |
Diluted Earnings per Common Share |  | $ | 0.48 |  |  | $ | 0.31 |  |  | $ | 0.67 |  |  | $ | 0.47 |

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