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Equity (Tables) | 9 Months Ended
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Sep. 30, 2019
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, 2019 and 2018. Table 17.1 – Changes in Accumulated Other Comprehensive Income by Component
|  | Three Months Ended September 30, 2019 |  | Three Months Ended September 30, 2018
(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 |  | $ | 98,307 |  |  | $ | (49,384 | ) |  | $ | 106,725 |  |  | $ | (31,105 | )
Other comprehensive income (loss) before reclassifications (1) |  | 4,484 |  |  | (11,791 | ) |  | (2,408 | ) |  | 4,801 |
Amounts reclassified from other accumulated comprehensive income |  | (3,492 | ) |  | — |  |  | (5,686 | ) |  | — |
Net current-period other comprehensive income (loss) |  | 992 |  |  | (11,791 | ) |  | (8,094 | ) |  | 4,801 |
Balance at End of Period |  | $ | 99,299 |  |  | $ | (61,175 | ) |  | $ | 98,631 |  |  | $ | (26,304 | )
|  | Nine Months Ended September 30, 2019 |  | Nine Months Ended September 30, 2018
(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 |  | $ | 95,342 |  |  | $ | (34,045 | ) |  | $ | 128,201 |  |  | $ | (42,953 | )
Other comprehensive income (loss) before reclassifications (1) |  | 19,764 |  |  | (27,130 | ) |  | (9,749 | ) |  | 16,649 |
Amounts reclassified from other accumulated comprehensive income |  | (15,807 | ) |  | — |  |  | (19,821 | ) |  | — |
Net current-period other comprehensive income (loss) |  | 3,957 |  |  | (27,130 | ) |  | (29,570 | ) |  | 16,649 |
Balance at End of Period |  | $ | 99,299 |  |  | $ | (61,175 | ) |  | $ | 98,631 |  |  | $ | (26,304 | )
(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.
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, 2019 and 2018. Table 17.2 – 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 |  | 2019 |  | 2018
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | — |  |  | $ | 33 |
Gain on sale of AFS securities |  | Realized gains, net |  | (3,492 | ) |  | (7,247 | )
Gain on sale of AFS securities |  | Provision for income taxes |  | — |  |  | 1,528 |
|  |  |  | $ | (3,492 | ) |  | $ | (5,686 | )
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive Income
|  | Affected Line Item in the |  | Nine Months Ended September 30,
(In Thousands) |  | Income Statement |  | 2019 |  | 2018
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Other than temporary impairment (1) |  | Investment fair value changes, net |  | $ | — |  |  | $ | 89 |
Gain on sale of AFS securities |  | Realized gains, net |  | (15,807 | ) |  | (21,438 | )
Gain on sale of AFS securities |  | Provision for income taxes |  | — |  |  | 1,528 |
|  |  |  | $ | (15,807 | ) |  | $ | (19,821 | )
(1) | For both the three and nine months ended September 30, 2019, there were no other-than-temporary impairments. 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.
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, 2019 and 2018. Table 17.3 – Basic and Diluted Earnings per Common Share
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands, except Share Data) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Basic Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 34,310 |  |  | $ | 40,921 |  |  | $ | 120,040 |  |  | $ | 120,513 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (856 | ) |  | (1,231 | ) |  | (3,260 | ) |  | (3,766 | )
Net income allocated to common shareholders |  | $ | 33,454 |  |  | $ | 39,690 |  |  | $ | 116,780 |  |  | $ | 116,747 |
Basic weighted average common shares outstanding |  | 101,872,126 |  |  | 80,796,856 |  |  | 97,214,064 |  |  | 77,211,188 |
Basic Earnings per Common Share |  | $ | 0.33 |  |  | $ | 0.49 |  |  | $ | 1.20 |  |  | $ | 1.51 |
Diluted Earnings per Common Share: |  |  |  |  |  |  |  |
Net income attributable to Redwood |  | $ | 34,310 |  |  | $ | 40,921 |  |  | $ | 120,040 |  |  | $ | 120,513 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,036 | ) |  | (1,284 | ) |  | (3,625 | ) |  | (3,867 | )
Add back: Interest expense on convertible notes for the period, net of tax |  | 8,887 |  |  | 8,666 |  |  | 26,271 |  |  | 23,642 |
Net income allocated to common shareholders |  | $ | 42,161 |  |  | $ | 48,303 |  |  | $ | 142,686 |  |  | $ | 140,288 |
Weighted average common shares outstanding |  | 101,872,126 |  |  | 80,796,856 |  |  | 97,214,064 |  |  | 77,211,188 |
Net effect of dilutive equity awards |  | 362,743 |  |  | 443,191 |  |  | 261,155 |  |  | 251,935 |
Net effect of assumed convertible notes conversion to common shares |  | 34,287,840 |  |  | 33,442,641 |  |  | 33,727,470 |  |  | 30,328,906 |
Diluted weighted average common shares outstanding |  | 136,522,709 |  |  | 114,682,688 |  |  | 131,202,689 |  |  | 107,792,029 |
Diluted Earnings per Common Share |  | $ | 0.31 |  |  | $ | 0.42 |  |  | $ | 1.09 |  |  | $ | 1.30 |

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