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Equity (Tables) | 9 Months Ended
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Sep. 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 nine months ended September 30, 2017 and 2016. Table 15.1 – Changes in Accumulated Other Comprehensive Income by Component
|  | Three Months Ended September 30, 2017 |  | Three Months Ended September 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 |  | $ | 114,364 |  |  | $ | (44,688 | ) |  | $ | 116,849 |  |  | $ | (70,518 | )
Other comprehensive income (loss) before reclassifications (1) |  | 13,158 |  |  | 321 |  |  | 9,038 |  |  | 647 |
Amounts reclassified from other accumulated comprehensive income |  | (853 | ) |  | 14 |  |  | (1,319 | ) |  | 18 |
Net current-period other comprehensive income (loss) |  | 12,305 |  |  | 335 |  |  | 7,719 |  |  | 665 |
Balance at End of Period |  | $ | 126,669 |  |  | $ | (44,353 | ) |  | $ | 124,568 |  |  | $ | (69,853 | )
|  | Nine Months Ended September 30, 2017 |  | Nine Months Ended September 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) |  | 17,899 |  |  | (375 | ) |  | 5,195 |  |  | (22,545 | )
Amounts reclassified from other accumulated comprehensive income |  | (7,103 | ) |  | 42 |  |  | (19,983 | ) |  | 55 |
Net current-period other comprehensive income (loss) |  | 10,796 |  |  | (333 | ) |  | (14,788 | ) |  | (22,490 | )
Balance at End of Period |  | $ | 126,669 |  |  | $ | (44,353 | ) |  | $ | 124,568 |  |  | $ | (69,853 | )
(1) | Amounts presented for net unrealized gains on available-for-sale securities are net of tax benefit (provision) of zero and $(0.1) million for the three and nine months ended September 30, 2017, respectively, and $0.2 million and $0.6 million for the three and nine months ended September 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 nine months ended September 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 September 30,
(In Thousands) |  | Income Statement |  | 2017 |  | 2016
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | 3 |  |  | $ | — |
Gain on sale of AFS securities |  | Realized gains, net |  | (856 | ) |  | (1,319 | )
|  |  |  | $ | (853 | ) |  | $ | (1,319 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 14 |  |  | $ | 18 |
|  |  |  | $ | 14 |  |  | $ | 18 |
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive Income
|  | Affected Line Item in the |  | Nine Months Ended September 30,
(In Thousands) |  | Income Statement |  | 2017 |  | 2016
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | 248 |  |  | $ | 305 |
Gain on sale of AFS securities |  | Realized gains, net |  | (7,351 | ) |  | (20,288 | )
|  |  |  | $ | (7,103 | ) |  | $ | (19,983 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 42 |  |  | $ | 55 |
|  |  |  | $ | 42 |  |  | $ | 55 |
(1) | For the nine months ended September 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 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, 2017 and 2016. Table 15.3 – Basic and Diluted Earnings per Common Share
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands, except Share Data) |  | 2017 |  | 2016 |  | 2017 |  | 2016
Basic Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 36,180 |  |  | $ | 52,553 |  |  | $ | 109,473 |  |  | $ | 105,897 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (948 | ) |  | (1,485 | ) |  | (2,800 | ) |  | (3,040 | )
Net income allocated to common shareholders |  | $ | 35,232 |  |  | $ | 51,068 |  |  | $ | 106,673 |  |  | $ | 102,857 |
Basic weighted average common shares outstanding |  | 76,850,830 |  |  | 76,680,183 |  |  | 76,803,324 |  |  | 76,827,026 |
Basic Earnings per Common Share |  | $ | 0.46 |  |  | $ | 0.67 |  |  | $ | 1.39 |  |  | $ | 1.34 |
Diluted Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 36,180 |  |  | $ | 52,553 |  |  | $ | 109,473 |  |  | $ | 105,897 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (986 | ) |  | (1,439 | ) |  | (2,926 | ) |  | (3,226 | )
Add back: Interest expense on convertible notes for the period, net of tax |  | 6,564 |  |  | 6,115 |  |  | 18,639 |  |  | 18,263 |
Net income allocated to common shareholders |  | $ | 41,758 |  |  | $ | 57,229 |  |  | $ | 125,186 |  |  | $ | 120,934 |
Weighted average common shares outstanding |  | 76,850,830 |  |  | 76,680,183 |  |  | 76,803,324 |  |  | 76,827,026 |
Net effect of dilutive equity awards |  | 298,955 |  |  | 54,696 |  |  | 215,141 |  |  | 18,665 |
Net effect of assumed convertible notes conversion to common shares |  | 25,553,323 |  |  | 21,096,738 |  |  | 22,379,401 |  |  | 21,145,987 |
Diluted weighted average common shares outstanding |  | 102,703,108 |  |  | 97,831,617 |  |  | 99,397,866 |  |  | 97,991,678 |
Diluted Earnings per Common Share |  | $ | 0.41 |  |  | $ | 0.58 |  |  | $ | 1.26 |  |  | $ | 1.23 |

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