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Equity (Tables) | 6 Months Ended
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Jun. 30, 2017
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, 2017 and 2016. Table 15.1 – Changes in Accumulated Other Comprehensive Income by Component
|  | Three Months Ended June 30, 2017 |  | Three Months Ended June 30, 2016
(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 |  | $ | 114,875 |  |  | $ | (42,273 | ) |  | $ | 118,300 |  |  | $ | (61,588 | )
Other comprehensive income (loss) before reclassifications (1) |  | 1,811 |  |  | (2,429 | ) |  | 6,260 |  |  | (8,949 | )
Amounts reclassified from other accumulated comprehensive income |  | (2,322 | ) |  | 14 |  |  | (7,711 | ) |  | 19 |
Net current-period other comprehensive income (loss) |  | (511 | ) |  | (2,415 | ) |  | (1,451 | ) |  | (8,930 | )
Balance at End of Period |  | $ | 114,364 |  |  | $ | (44,688 | ) |  | $ | 116,849 |  |  | $ | (70,518 | )
|  | Six Months Ended June 30, 2017 |  | Six Months Ended June 30, 2016
(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 |  | $ | 115,873 |  |  | $ | (44,020 | ) |  | $ | 139,356 |  |  | $ | (47,363 | )
Other comprehensive income (loss) before reclassifications (1) |  | 4,741 |  |  | (696 | ) |  | (3,843 | ) |  | (23,192 | )
Amounts reclassified from other accumulated comprehensive income |  | (6,250 | ) |  | 28 |  |  | (18,664 | ) |  | 37 |
Net current-period other comprehensive income (loss) |  | (1,509 | ) |  | (668 | ) |  | (22,507 | ) |  | (23,155 | )
Balance at End of Period |  | $ | 114,364 |  |  | $ | (44,688 | ) |  | $ | 116,849 |  |  | $ | (70,518 | )
(1) | Amounts presented for net unrealized gains on available-for-sale securities are net of tax benefit (provision) of $0.1 million and $(0.1) million for the three and six months ended June 30, 2017, respectively, and $0.3 million and $0.4 million for the three and six months ended June 30, 2016, respectively.
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, 2017 and 2016. Table 15.2 – 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 |  | 2017 |  | 2016
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | 128 |  |  | $ | 305 |
Gain on sale of AFS securities |  | Realized gains, net |  | (2,450 | ) |  | (8,016 | )
|  |  |  | $ | (2,322 | ) |  | $ | (7,711 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 14 |  |  | $ | 19 |
|  |  |  | $ | 14 |  |  | $ | 19 |
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive Income
|  | Affected Line Item in the |  | Six Months Ended June 30,
(In Thousands) |  | Income Statement |  | 2017 |  | 2016
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | 245 |  |  | $ | 305 |
Gain on sale of AFS securities |  | Realized gains, net |  | (6,495 | ) |  | (18,969 | )
|  |  |  | $ | (6,250 | ) |  | $ | (18,664 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 28 |  |  | $ | 37 |
|  |  |  | $ | 28 |  |  | $ | 37 |
(1) | For the three months ended June 30, 2017, other-than-temporary impairments were $0.5 million, of which $0.1 million were recognized through the consolidated statements of income and $0.3 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet. For the six months ended June 30, 2017, other-than-temporary impairments were $0.6 million, of which $0.2 million were recognized through our consolidated statements of income and $0.4 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet. For 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, 2017 and 2016. Table 15.3 – Basic and Diluted Earnings per Common Share
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In Thousands, except Share Data) |  | 2017 |  | 2016 |  | 2017 |  | 2016
Basic Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 36,324 |  |  | $ | 41,281 |  |  | $ | 73,293 |  |  | $ | 53,344 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (884 | ) |  | (1,089 | ) |  | (1,852 | ) |  | (1,494 | )
Net income allocated to common shareholders |  | $ | 35,440 |  |  | $ | 40,192 |  |  | $ | 71,441 |  |  | $ | 51,850 |
Basic weighted average common shares outstanding |  | 76,819,703 |  |  | 76,664,829 |  |  | 76,779,178 |  |  | 76,901,255 |
Basic Earnings per Common Share |  | $ | 0.46 |  |  | $ | 0.52 |  |  | $ | 0.93 |  |  | $ | 0.67 |
Diluted Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 36,324 |  |  | $ | 41,281 |  |  | $ | 73,293 |  |  | $ | 53,344 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (935 | ) |  | (1,134 | ) |  | (1,940 | ) |  | (1,668 | )
Add back: Interest expense on convertible notes for the period, net of tax |  | 6,205 |  |  | 7,015 |  |  | 12,075 |  |  | 7,637 |
Net income allocated to common shareholders |  | $ | 41,594 |  |  | $ | 47,162 |  |  | $ | 83,428 |  |  | $ | 59,313 |
Weighted average common shares outstanding |  | 76,819,703 |  |  | 76,664,829 |  |  | 76,779,178 |  |  | 76,901,255 |
Net effect of dilutive equity awards |  | 235,273 |  |  | 369 |  |  | 173,235 |  |  | 1,675 |
Net effect of assumed convertible notes conversion to common shares |  | 20,439,168 |  |  | 21,096,738 |  |  | 20,766,137 |  |  | 11,825,450 |
Diluted weighted average common shares outstanding |  | 97,494,144 |  |  | 97,761,936 |  |  | 97,718,550 |  |  | 88,728,380 |
Diluted Earnings per Common Share |  | $ | 0.43 |  |  | $ | 0.48 |  |  | $ | 0.85 |  |  | $ | 0.67 |

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