XML 56 R44.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Equity (Tables) | 9 Months Ended
--- | ---
Sep. 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 nine months ended September 30, 2018 and 2017. Table 16.1 – Changes in Accumulated Other Comprehensive Income by Component
|  | Three Months Ended September 30, 2018 |  | Three Months Ended September 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 |  | $ | 106,725 |  |  | $ | (31,105 | ) |  | $ | 114,364 |  |  | $ | (44,688 | )
Other comprehensive (loss) income before reclassifications (1) |  | (2,408 | ) |  | 4,801 |  |  | 13,158 |  |  | 321 |
Amounts reclassified from other accumulated comprehensive income (2) |  | (5,686 | ) |  | — |  |  | (853 | ) |  | 14 |
Net current-period other comprehensive (loss) income |  | (8,094 | ) |  | 4,801 |  |  | 12,305 |  |  | 335 |
Balance at End of Period |  | $ | 98,631 |  |  | $ | (26,304 | ) |  | $ | 126,669 |  |  | $ | (44,353 | )
|  | Nine Months Ended September 30, 2018 |  | Nine Months Ended September 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) |  | (9,749 | ) |  | 16,649 |  |  | 17,899 |  |  | (375 | )
Amounts reclassified from other accumulated comprehensive income (2) |  | (19,821 | ) |  | — |  |  | (7,103 | ) |  | 42 |
Net current-period other comprehensive income (loss) |  | (29,570 | ) |  | 16,649 |  |  | 10,796 |  |  | (333 | )
Balance at End of Period |  | $ | 98,631 |  |  | $ | (26,304 | ) |  | $ | 126,669 |  |  | $ | (44,353 | )
(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, 2018, respectively, and zero and $(0.1) million for the three and nine months ended September 30, 2017, respectively.
(2) | Amounts are presented net of tax provision of $2 million for both the three and nine months ended September 30, 2018.
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 nine months ended September 30, 2018 and 2017. 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 |  | 2018 |  | 2017
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | 33 |  |  | $ | 3 |
Gain on sale of AFS securities |  | Realized gains, net |  | (7,247 | ) |  | (856 | )
Gain on sale of AFS securities |  | Provision for income taxes |  | 1,528 |  |  | — |
|  |  |  | $ | (5,686 | ) |  | $ | (853 | )
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 |  | Nine Months Ended September 30,
(In Thousands) |  | Income Statement |  | 2018 |  | 2017
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | 89 |  |  | $ | 248 |
Gain on sale of AFS securities |  | Realized gains, net |  | (21,438 | ) |  | (7,351 | )
Gain on sale of AFS securities |  | Provision for income taxes |  | 1,528 |  |  | — |
|  |  |  | $ | (19,821 | ) |  | $ | (7,103 | )
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | — |  |  | $ | 42 |
|  |  |  | $ | — |  |  | $ | 42 |
(1) | For the three months ended September 30, 2018, other-than-temporary impairments were $0.4 million, of which less than $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 nine months ended September 30, 2018, other-than-temporary impairments were $0.6 million, of which $0.1 million were recognized through our consolidated statements of income and $0.5 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet. 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.
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, 2018 and 2017. 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) |  | 2018 |  | 2017 |  | 2018 |  | 2017
Basic Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 40,921 |  |  | $ | 36,180 |  |  | $ | 120,513 |  |  | $ | 109,473 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,231 | ) |  | (948 | ) |  | (3,766 | ) |  | (2,800 | )
Net income allocated to common shareholders |  | $ | 39,690 |  |  | $ | 35,232 |  |  | $ | 116,747 |  |  | $ | 106,673 |
Basic weighted average common shares outstanding |  | 80,796,856 |  |  | 76,850,830 |  |  | 77,211,188 |  |  | 76,803,324 |
Basic Earnings per Common Share |  | $ | 0.49 |  |  | $ | 0.46 |  |  | $ | 1.51 |  |  | $ | 1.39 |
Diluted Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 40,921 |  |  | $ | 36,180 |  |  | $ | 120,513 |  |  | $ | 109,473 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,284 | ) |  | (986 | ) |  | (3,867 | ) |  | (2,926 | )
Add back: Interest expense on convertible notes for the period, net of tax |  | 8,666 |  |  | 6,564 |  |  | 23,642 |  |  | 18,639 |
Net income allocated to common shareholders |  | $ | 48,303 |  |  | $ | 41,758 |  |  | $ | 140,288 |  |  | $ | 125,186 |
Weighted average common shares outstanding |  | 80,796,856 |  |  | 76,850,830 |  |  | 77,211,188 |  |  | 76,803,324 |
Net effect of dilutive equity awards |  | 443,191 |  |  | 298,955 |  |  | 251,935 |  |  | 215,141 |
Net effect of assumed convertible notes conversion to common shares |  | 33,442,641 |  |  | 25,553,323 |  |  | 30,328,906 |  |  | 22,379,401 |
Diluted weighted average common shares outstanding |  | 114,682,688 |  |  | 102,703,108 |  |  | 107,792,029 |  |  | 99,397,866 |
Diluted Earnings per Common Share |  | $ | 0.42 |  |  | $ | 0.41 |  |  | $ | 1.30 |  |  | $ | 1.26 |

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information about items reclassified out of accumulated other comprehensive income (loss). + References No definition available. + Details
Name: | us-gaap_ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of accumulated other comprehensive income (loss). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section 45 -Paragraph 14A -URI http://asc.fasb.org/extlink&oid=114867106&loc=SL7669686-108580 + Details
Name: | us-gaap_ScheduleOfAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of an entity's basic and diluted earnings per share calculations, including a reconciliation of numerators and denominators of the basic and diluted per-share computations for income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257 + Details
Name: | us-gaap_ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration