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Equity (Tables) | 6 Months Ended
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Jun. 30, 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 and six months ended June 30, 2018 and 2017. Table 14.1 – Changes in Accumulated Other Comprehensive Income by Component
|  | Three Months Ended June 30, 2018 |  | Three Months Ended June 30, 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 |  | $ | 114,577 |  |  | $ | (34,522 | ) |  | $ | 114,875 |  |  | $ | (42,273 | )
Other comprehensive (loss) income before reclassifications (1) |  | (3,104 | ) |  | 3,417 |  |  | 1,811 |  |  | (2,429 | )
Amounts reclassified from other accumulated comprehensive income |  | (4,748 | ) |  | — |  |  | (2,322 | ) |  | 14 |
Net current-period other comprehensive (loss) income |  | (7,852 | ) |  | 3,417 |  |  | (511 | ) |  | (2,415 | )
Balance at End of Period |  | $ | 106,725 |  |  | $ | (31,105 | ) |  | $ | 114,364 |  |  | $ | (44,688 | )
|  | Six Months Ended June 30, 2018 |  | Six Months Ended June 30, 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 income (loss) before reclassifications (1) |  | (7,341 | ) |  | 11,848 |  |  | 4,741 |  |  | (696 | )
Amounts reclassified from other accumulated comprehensive income |  | (14,135 | ) |  | — |  |  | (6,250 | ) |  | 28 |
Net current-period other comprehensive income (loss) |  | (21,476 | ) |  | 11,848 |  |  | (1,509 | ) |  | (668 | )
Balance at End of Period |  | $ | 106,725 |  |  | $ | (31,105 | ) |  | $ | 114,364 |  |  | $ | (44,688 | )
(1) | Amounts presented for net unrealized gains on available-for-sale securities are net of tax benefit (provision) of $0.2 million and $0.1 million for the three and six months ended June 30, 2018, respectively, and $0.1 million and $(0.1) million for the three and six months ended June 30, 2017, respectively.
Reclassifications out of Accumulated Other Comprehensive Income | The following table provides a summary of reclassifications out of accumulated other comprehensive income for the three and six months ended June 30, 2018 and 2017. Table 14.2 – 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 |  | 2018 |  | 2017
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | 56 |  |  | $ | 128 |
Gain on sale of AFS securities |  | Realized gains, net |  | (4,804 | ) |  | (2,450 | )
|  |  |  | $ | (4,748 | ) |  | $ | (2,322 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | — |  |  | $ | 14 |
|  |  |  | $ | — |  |  | $ | 14 |
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive Income
|  | Affected Line Item in the |  | Six Months Ended June 30,
(In Thousands) |  | Income Statement |  | 2018 |  | 2017
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | 56 |  |  | $ | 245 |
Gain on sale of AFS securities |  | Realized gains, net |  | (14,191 | ) |  | (6,495 | )
|  |  |  | $ | (14,135 | ) |  | $ | (6,250 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | — |  |  | $ | 28 |
|  |  |  | $ | — |  |  | $ | 28 |
(1) | For the three and six months ended June 30, 2018, other-than-temporary impairments were $0.3 million, of which $0.1 million were recognized through our consolidated statements of income and $0.2 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet. For the three months ended June 30, 2017, other-than-temporary impairments were $0.5 million, of which $0.1 million were recognized through our 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.
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, 2018 and 2017. Table 14.3 – Basic and Diluted Earnings per Common Share
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In Thousands, except Share Data) |  | 2018 |  | 2017 |  | 2018 |  | 2017
Basic Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 32,747 |  |  | $ | 36,324 |  |  | $ | 79,592 |  |  | $ | 73,293 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,074 | ) |  | (884 | ) |  | (2,535 | ) |  | (1,852 | )
Net income allocated to common shareholders |  | $ | 31,673 |  |  | $ | 35,440 |  |  | $ | 77,057 |  |  | $ | 71,441 |
Basic weighted average common shares outstanding |  | 75,380,715 |  |  | 76,819,703 |  |  | 75,388,638 |  |  | 76,779,178 |
Basic Earnings per Common Share |  | $ | 0.42 |  |  | $ | 0.46 |  |  | $ | 1.02 |  |  | $ | 0.93 |
Diluted Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 32,747 |  |  | $ | 36,324 |  |  | $ | 79,592 |  |  | $ | 73,293 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,156 | ) |  | (935 | ) |  | (2,584 | ) |  | (1,940 | )
Add back: Interest expense on convertible notes for the period, net of tax |  | 6,335 |  |  | 6,205 |  |  | 14,976 |  |  | 12,075 |
Net income allocated to common shareholders |  | $ | 37,926 |  |  | $ | 41,594 |  |  | $ | 91,984 |  |  | $ | 83,428 |
Weighted average common shares outstanding |  | 75,380,715 |  |  | 76,819,703 |  |  | 75,388,638 |  |  | 76,779,178 |
Net effect of dilutive equity awards |  | 277,788 |  |  | 235,273 |  |  | 156,307 |  |  | 173,235 |
Net effect of assumed convertible notes conversion to common shares |  | 24,773,490 |  |  | 20,439,168 |  |  | 28,746,235 |  |  | 20,766,137 |
Diluted weighted average common shares outstanding |  | 100,431,993 |  |  | 97,494,144 |  |  | 104,291,180 |  |  | 97,718,550 |
Diluted Earnings per Common Share |  | $ | 0.38 |  |  | $ | 0.43 |  |  | $ | 0.88 |  |  | $ | 0.85 |

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