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Equity (Tables) | 9 Months Ended
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Sep. 30, 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 and nine months ended September 30, 2020 and 2019. During the three and nine months ended September 30, 2020, we recognized net unrealized gains (losses) on our Level 3 AFS securities which we owned as of September 30, 2020 of $8 million and negative $16 million, respectively. Table 17.1 – Changes in Accumulated Other Comprehensive Income by Component
|  | Three Months Ended September 30, 2020 |  | Three Months Ended September 30, 2019
(In Thousands) |  | Available-for-Sale Securities |  | Interest Rate Agreements Accounted for as Cash Flow Hedges |  | Available-for-Sale Securities |  | Interest Rate Agreements Accounted for as Cash Flow Hedges
Balance at beginning of period |  | $ | 53,246 |  |  | $ | (82,637) |  |  | $ | 98,307 |  |  | $ | (49,384) |
Other comprehensive income (loss) before reclassifications |  | 8,236 |  |  | — |  |  | 4,484 |  |  | (11,791) |
Amounts reclassified from other accumulated comprehensive income |  | (445) |  |  | 1,040 |  |  | (3,492) |  |  | — |
Net current-period other comprehensive income (loss) |  | 7,791 |  |  | 1,040 |  |  | 992 |  |  | (11,791) |
Balance at End of Period |  | $ | 61,037 |  |  | $ | (81,597) |  |  | $ | 99,299 |  |  | $ | (61,175) |
|  | Nine Months Ended September 30, 2020 |  | Nine Months Ended September 30, 2019
(In Thousands) |  | Available-for-Sale Securities |  | Interest Rate Agreements Accounted for as Cash Flow Hedges |  | Available-for-Sale Securities |  | 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 |  | (19,890) |  |  | (32,806) |  |  | 19,764 |  |  | (27,130) |
Amounts reclassified from other accumulated comprehensive income |  | (11,525) |  |  | 2,148 |  |  | (15,807) |  |  | — |
Net current-period other comprehensive income (loss) |  | (31,415) |  |  | (30,658) |  |  | 3,957 |  |  | (27,130) |
Balance at End of Period |  | $ | 61,037 |  |  | $ | (81,597) |  |  | $ | 99,299 |  |  | $ | (61,175) |
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, 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 September 30,
(In Thousands) |  | Income Statement |  | 2020 |  | 2019
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Credit loss recovery on AFS securities |  | Investment fair value changes, net |  | $ | (444) |  |  | $ | — |
Gain on sale of AFS securities |  | Realized gains, net |  | — |  |  | (3,492) |
|  |  |  | $ | (444) |  |  | $ | (3,492) |
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 1,040 |  |  | $ | — |
|  |  |  | $ | 1,040 |  |  | $ | — |
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive Income
|  | Affected Line Item in the |  | Nine Months Ended September 30,
(In Thousands) |  | Income Statement |  | 2020 |  | 2019
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Credit loss expense on AFS securities |  | Investment fair value changes, net |  | $ | 1,027 |  |  | $ | — |
Gain on sale of AFS securities |  | Realized gains, net |  | (12,552) |  |  | (15,807) |
|  |  |  | $ | (11,525) |  |  | $ | (15,807) |
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 2,148 |  |  | $ | — |
|  |  |  | $ | 2,148 |  |  | $ | — |
Basic and Diluted Earnings Per Common Share | The following table provides the basic and diluted earnings (loss) per common share computations for the three and nine months ended September 30, 2020 and 2019. Table 17.3 – Basic and Diluted Earnings (Loss) per Common Share
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands, except Share Data) |  | 2020 |  | 2019 |  | 2020 |  | 2019
Basic Earnings (Loss) per Common Share: |  |  |  |  |  |  |  |
Net income (loss) attributable to Redwood |  | $ | 141,812 |  |  | $ | 34,310 |  |  | $ | (636,142) |  |  | $ | 120,040 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (4,067) |  |  | (856) |  |  | (1,427) |  |  | (3,260) |
Net income (loss) allocated to common shareholders |  | $ | 137,745 |  |  | $ | 33,454 |  |  | $ | (637,569) |  |  | $ | 116,780 |
Basic weighted average common shares outstanding |  | 113,403,102 |  |  | 101,872,126 |  |  | 113,952,308 |  |  | 97,214,064 |
Basic Earnings (Loss) per Common Share |  | $ | 1.21 |  |  | $ | 0.33 |  |  | $ | (5.60) |  |  | $ | 1.20 |
Diluted Earnings (Loss) per Common Share: |  |  |  |  |  |  |  |
Net income (loss) attributable to Redwood |  | $ | 141,812 |  |  | $ | 34,310 |  |  | $ | (636,142) |  |  | $ | 120,040 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (3,512) |  |  | (1,036) |  |  | (1,427) |  |  | (3,625) |
Adjust for interest expense and gain on extinguishment of convertible notes for the period, net of tax |  | 6,990 |  |  | 8,887 |  |  | — |  |  | 26,271 |
Net income (loss) allocated to common shareholders |  | $ | 145,290 |  |  | $ | 42,161 |  |  | $ | (637,569) |  |  | $ | 142,686 |
Weighted average common shares outstanding |  | 113,403,102 |  |  | 101,872,126 |  |  | 113,952,308 |  |  | 97,214,064 |
Net effect of dilutive equity awards |  | — |  |  | 362,743 |  |  | — |  |  | 261,155 |
Net effect of assumed convertible notes conversion to common shares |  | 28,566,875 |  |  | 34,287,840 |  |  | — |  |  | 33,727,470 |
Diluted weighted average common shares outstanding |  | 141,969,977 |  |  | 136,522,709 |  |  | 113,952,308 |  |  | 131,202,689 |
Diluted Earnings (Loss) per Common Share |  | $ | 1.02 |  |  | $ | 0.31 |  |  | $ | (5.60) |  |  | $ | 1.09 |

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