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Equity (Tables) | 9 Months Ended
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Sep. 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 nine months ended September 30, 2016 and 2015. Table 16.1 – Changes in Accumulated Other Comprehensive Income by Component
|  | Three Months Ended September 30, 2016 |  | Three Months Ended September 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 |  | $ | 116,849 |  |  | $ | (70,518 | ) |  | $ | 179,659 |  |  | $ | (38,965 | )
Other comprehensive income (loss) before reclassifications |  | 9,038 |  |  | 647 |  |  | (5,673 | ) |  | (12,049 | )
Amounts reclassified from other accumulated comprehensive income |  | (1,319 | ) |  | 18 |  |  | (3,270 | ) |  | 19 |
Net current-period other comprehensive income (loss) |  | 7,719 |  |  | 665 |  |  | (8,943 | ) |  | (12,030 | )
Balance at End of Period |  | $ | 124,568 |  |  | $ | (69,853 | ) |  | $ | 170,716 |  |  | $ | (50,995 | )
|  | Nine Months Ended September 30, 2016 |  | Nine Months Ended September 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 |  | 5,195 |  |  | (22,545 | ) |  | (5,701 | ) |  | (5,023 | )
Amounts reclassified from other accumulated comprehensive income |  | (19,983 | ) |  | 55 |  |  | (10,320 | ) |  | 77 |
Net current-period other comprehensive income (loss) |  | (14,788 | ) |  | (22,490 | ) |  | (16,021 | ) |  | (4,946 | )
Balance at End of Period |  | $ | 124,568 |  |  | $ | (69,853 | ) |  | $ | 170,716 |  |  | $ | (50,995 | )
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, 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 September 30,
(In Thousands) |  | Income Statement |  | 2016 |  | 2015
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | — |  |  | $ | 198 |
Gain on sale of AFS securities |  | Realized gains, net |  | (1,319 | ) |  | (3,468 | )
|  |  |  | $ | (1,319 | ) |  | $ | (3,270 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 18 |  |  | $ | 19 |
|  |  |  | $ | 18 |  |  | $ | 19 |
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive Income
|  | Affected Line Item in the |  | Nine Months Ended September 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 |  |  | $ | 198 |
Gain on sale of AFS securities |  | Realized gains, net |  | (20,288 | ) |  | (10,518 | )
|  |  |  | $ | (19,983 | ) |  | $ | (10,320 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 55 |  |  | $ | 77 |
|  |  |  | $ | 55 |  |  | $ | 77 |
(1) | For the three months ended September 30, 2016, there were no other-than-temporary impairments. For the nine months ended September 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 nine months ended September 30, 2016 and 2015. 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) |  | 2016 |  | 2015 |  | 2016 |  | 2015
Basic Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 52,553 |  |  | $ | 19,164 |  |  | $ | 105,897 |  |  | $ | 61,029 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,485 | ) |  | (553 | ) |  | (3,040 | ) |  | (1,928 | )
Net income allocated to common shareholders |  | $ | 51,068 |  |  | $ | 18,611 |  |  | $ | 102,857 |  |  | $ | 59,101 |
Basic weighted average common shares outstanding |  | 76,680,183 |  |  | 83,787,533 |  |  | 76,827,026 |  |  | 83,696,461 |
Basic Earnings per Common Share |  | $ | 0.67 |  |  | $ | 0.22 |  |  | $ | 1.34 |  |  | $ | 0.71 |
Diluted Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 52,553 |  |  | $ | 19,164 |  |  | $ | 105,897 |  |  | $ | 61,029 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,439 | ) |  | (553 | ) |  | (3,226 | ) |  | (1,928 | )
Add back: Interest expense on convertible notes for the period, net of tax |  | 6,115 |  |  | — |  |  | 18,263 |  |  | — |
Net income allocated to common shareholders |  | $ | 57,229 |  |  | $ | 18,611 |  |  | $ | 120,934 |  |  | $ | 59,101 |
Weighted average common shares outstanding |  | 76,680,183 |  |  | 83,787,533 |  |  | 76,827,026 |  |  | 83,696,461 |
Net effect of dilutive equity awards |  | 54,696 |  |  | 1,287,171 |  |  | 18,665 |  |  | 1,642,535 |
Net effect of assumed convertible notes conversion to common shares |  | 21,096,738 |  |  | — |  |  | 21,145,987 |  |  | — |
Diluted weighted average common shares outstanding |  | 97,831,617 |  |  | 85,074,704 |  |  | 97,991,678 |  |  | 85,338,996 |
Diluted Earnings per Common Share |  | $ | 0.58 |  |  | $ | 0.22 |  |  | $ | 1.23 |  |  | $ | 0.69 |

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