Equity (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021 and 2020.

Table 17.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component


	Three Months Ended March 31, 2021				Three Months Ended March 31, 2020
(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	$	76,336	$	(80,557)	$	92,452	$	(50,939)
Other comprehensive income (loss) before reclassifications	10,986		—		(80,519)		(32,806)
Amounts reclassified from other accumulated comprehensive income (loss)	(2,795)		1,018		(13,798)		79
Net current-period other comprehensive income (loss)	8,191		1,018		(94,317)		(32,727)
Balance at End of Period	$	84,527	$	(79,539)	$	(1,865)	$	(83,666)

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, 2021 and 2020.

Table 17.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss)



		Amount Reclassified From Accumulated Other Comprehensive Income
	Affected Line Item in the	Three Months Ended March 31,
(In Thousands)	Income Statement	2021		2020
Net Realized (Gain) Loss on AFS Securities
Credit loss expense on AFS securities	Investment fair value changes, net	$	(374)	$	1,525
Gain on sale of AFS securities	Realized gains, net	(2,421)		(15,323)

		$	(2,795)	$	(13,798)
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges
Amortization of deferred loss	Interest expense	$	1,018	$	79
		$	1,018	$	79

Basic and Diluted Earnings Per Common Share

The following table provides the basic and diluted earnings (loss) per common share computations for the three months ended March 31, 2021 and 2020.

Table 17.3 – Basic and Diluted Earnings (Loss) per Common Share


	Three Months Ended March 31,
(In Thousands, except Share Data)	2021		2020
Basic Earnings (Loss) per Common Share:
Net income (loss) attributable to Redwood	$	97,257	$	(943,398)
Less: Dividends and undistributed earnings allocated to participating securities	(3,294)		(1,209)
Net income (loss) allocated to common shareholders	$	93,963	$	(944,607)
Basic weighted average common shares outstanding	112,276,842		114,076,568
Basic Earnings (Loss) per Common Share	$	0.84	$	(8.28)
Diluted Earnings (Loss) per Common Share:
Net income (loss) attributable to Redwood	$	97,257	$	(943,398)
Less: Dividends and undistributed earnings allocated to participating securities	(2,951)		(1,209)
Add back: Interest expense on convertible notes for the period, net of tax	7,007		—
Net income (loss) allocated to common shareholders	$	101,313	$	(944,607)
Weighted average common shares outstanding	112,276,842		114,076,568
Net effect of dilutive equity awards	195,568		—
Net effect of assumed convertible notes conversion to common shares	28,566,875		—
Diluted weighted average common shares outstanding	141,039,285		114,076,568
Diluted Earnings (Loss) per Common Share	$	0.72	$	(8.28)