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Equity (Tables) | 3 Months Ended
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Mar. 31, 2018
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 months ended March 31, 2018 and 2017. Table 15.1 – Changes in Accumulated Other Comprehensive Income by Component
|  | Three Months Ended March 31, 2018 |  | Three Months Ended March 31, 2017
(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 |  | $ | 128,201 |  |  | $ | (42,953 | ) |  | $ | 115,873 |  |  | $ | (44,020 | )
Other comprehensive (loss) income before reclassifications (1) |  | (4,237 | ) |  | 8,431 |  |  | 2,930 |  |  | 1,733 |
Amounts reclassified from other accumulated comprehensive income |  | (9,387 | ) |  | — |  |  | (3,928 | ) |  | 14 |
Net current-period other comprehensive (loss) income |  | (13,624 | ) |  | 8,431 |  |  | (998 | ) |  | 1,747 |
Balance at End of Period |  | $ | 114,577 |  |  | $ | (34,522 | ) |  | $ | 114,875 |  |  | $ | (42,273 | )
(1) | Amounts presented for net unrealized gains on available-for-sale securities are net of tax provision of $0.1 million for both the three months ended March 31, 2018 and 2017.
Reclassifications out of Accumulated Other Comprehensive Income | The following table provides a summary of reclassifications out of accumulated other comprehensive income for three months ended March 31, 2018 and 2017. 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 March 31,
(In Thousands) |  | Income Statement |  | 2018 |  | 2017
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | — |  |  | $ | 117 |
Gain on sale of AFS securities |  | Realized gains, net |  | (9,387 | ) |  | (4,045 | )
|  |  |  | $ | (9,387 | ) |  | $ | (3,928 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | — |  |  | $ | 14 |
|  |  |  | $ | — |  |  | $ | 14 |
(1) | For the three months ended March 31, 2018, there were no other-than-temporary impairments. For the three months ended March 31, 2017, other-than-temporary impairments were $0.2 million, of which $0.1 million were recognized through our consolidated statements of income and $0.1 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 months ended March 31, 2018 and 2017. Table 15.3 – Basic and Diluted Earnings per Common Share
|  | Three Months Ended March 31,
(In Thousands, except Share Data) |  | 2018 |  | 2017
Basic Earnings per Common Share: |  |  |  |
Net income attributable to Redwood |  | $ | 46,845 |  |  | $ | 36,969 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,433 | ) |  | (968 | )
Net income allocated to common shareholders |  | $ | 45,412 |  |  | $ | 36,001 |
Basic weighted average common shares outstanding |  | 75,396,649 |  |  | 76,738,202 |
Basic Earnings per Common Share |  | $ | 0.60 |  |  | $ | 0.47 |
Diluted Earnings per Common Share: |  |  |  |
Net income attributable to Redwood |  | $ | 46,845 |  |  | $ | 36,969 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,394 | ) |  | (1,005 | )
Add back: Interest expense on convertible notes for the period, net of tax |  | 8,641 |  |  | 5,870 |
Net income allocated to common shareholders |  | $ | 54,092 |  |  | $ | 41,834 |
Weighted average common shares outstanding |  | 75,396,649 |  |  | 76,738,202 |
Net effect of dilutive equity awards |  | 34,827 |  |  | 111,197 |
Net effect of assumed convertible notes conversion to common shares |  | 32,763,121 |  |  | 21,096,738 |
Diluted weighted average common shares outstanding |  | 108,194,597 |  |  | 97,946,137 |
Diluted Earnings per Common Share |  | $ | 0.50 |  |  | $ | 0.43 |

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