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Equity (Tables)
 3 Months Ended
Mar. 31, 2020
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, 2020 and 2019. During the three months ended March 31, 2020, the net unrealized losses recognized on our Level 3 AFS securities which we own as of March 31, 2020 totaled $81 million.
Table 17.1 – Changes in Accumulated Other Comprehensive Income by Component
 
 
Three Months Ended March 31, 2020
 
Three Months Ended March 31, 2019
(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
 
$
92,452

 
$
(50,939
)
 
$
95,342

 
$
(34,045
)
Other comprehensive income (loss)
before reclassifications (1)
 
(80,519
)
 
(32,806
)
 
6,718

 
(5,838
)
Amounts reclassified from other
accumulated comprehensive income
 
(13,798
)
 
79

 
(9,493
)
 
—

Net current-period other comprehensive income (loss)
 
(94,317
)
 
(32,727
)
 
(2,775
)
 
(5,838
)
Balance at End of Period
 
$
(1,865
)
 
$
(83,666
)
 
$
92,567

 
$
(39,883
)
Reclassifications out of Accumulated Other Comprehensive Income
The following table provides a summary of reclassifications out of accumulated other comprehensive income for the three months ended March 31, 2020 and 2019.
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 March 31,
(In Thousands)
 
Income Statement
 
2020
 
2019
Net Realized (Gain) Loss on AFS Securities
 
 
 
 
 
 
Credit loss expense on AFS securities
 
Investment fair value changes, net
 
$
1,525

 
$
—

Gain on sale of AFS securities
 
Realized gains, net
 
(15,323
)
 
(9,493
)
 
 
 
 
$
(13,798
)
 
$
(9,493
)
Basic and Diluted Earnings Per Common Share
The following table provides the basic and diluted (loss) earnings per common share computations for the three months ended March 31, 2020 and 2019.
Table 17.3 – Basic and Diluted (Loss) Earnings per Common Share
 
 
Three Months Ended March 31,
(In Thousands, except Share Data)
 
2020
 
2019
Basic (Loss) Earnings per Common Share:
 
 
 
 
Net (loss) income attributable to Redwood
 
$
(943,398
)
 
$
54,464

Less: Dividends and undistributed earnings allocated to participating securities
 
(1,209
)
 
(1,539
)
Net (loss) income allocated to common shareholders
 
$
(944,607
)
 
$
52,925

Basic weighted average common shares outstanding
 
114,076,568

 
92,685,350

Basic (Loss) Earnings per Common Share
 
$
(8.28
)
 
$
0.57

Diluted (Loss) Earnings per Common Share:
 
 
 
 
Net (loss) income attributable to Redwood
 
$
(943,398
)
 
$
54,464

Less: Dividends and undistributed earnings allocated to participating securities
 
(1,209
)
 
(1,539
)
Add back: Interest expense on convertible notes for the period, net of tax
 
—

 
8,687

Net (loss) income allocated to common shareholders
 
$
(944,607
)
 
$
61,612

Weighted average common shares outstanding
 
114,076,568

 
92,685,350

Net effect of dilutive equity awards
 
—

 
150,170

Net effect of assumed convertible notes conversion to common shares
 
—

 
33,442,640

Diluted weighted average common shares outstanding
 
114,076,568

 
126,278,160

Diluted (Loss) Earnings per Common Share
 
$
(8.28
)
 
$
0.49