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Equity (Tables) | 6 Months Ended
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Jun. 30, 2021
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 six months ended June 30, 2021 and 2020. Table 17.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component
|  | Three Months Ended June 30, 2021 |  | Three Months Ended June 30, 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 |  | $ | 84,527 |  |  | $ | (79,539) |  |  | $ | (1,865) |  |  | $ | (83,666) |
Other comprehensive income before reclassifications |  | 11,224 |  |  | — |  |  | 52,393 |  |  | — |
Amounts reclassified from other accumulated comprehensive income |  | (7,500) |  |  | 1,028 |  |  | 2,718 |  |  | 1,029 |
Net current-period other comprehensive income |  | 3,724 |  |  | 1,028 |  |  | 55,111 |  |  | 1,029 |
Balance at End of Period |  | $ | 88,251 |  |  | $ | (78,511) |  |  | $ | 53,246 |  |  | $ | (82,637) |
|  | Six Months Ended June 30, 2021 |  | Six Months Ended June 30, 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 |  | 22,210 |  |  | — |  |  | (28,126) |  |  | (32,806) |
Amounts reclassified from other accumulated comprehensive income (loss) |  | (10,295) |  |  | 2,046 |  |  | (11,080) |  |  | 1,108 |
Net current-period other comprehensive income (loss) |  | 11,915 |  |  | 2,046 |  |  | (39,206) |  |  | (31,698) |
Balance at End of Period |  | $ | 88,251 |  |  | $ | (78,511) |  |  | $ | 53,246 |  |  | $ | (82,637) |
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 six months ended June 30, 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 June 30,
(In Thousands) |  | Income Statement |  | 2021 |  | 2020
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Decrease in allowance for credit losses on AFS securities |  | Investment fair value changes, net |  | $ | (13) |  |  | $ | (54) |
Gain on sale of AFS securities |  | Realized gains, net |  | (7,487) |  |  | 2,772 |
|  |  |  | $ | (7,500) |  |  | $ | 2,718 |
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 1,028 |  |  | $ | 1,029 |
|  |  |  | $ | 1,028 |  |  | $ | 1,029 |
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive Income
|  | Affected Line Item in the |  | Six Months Ended June 30,
(In Thousands) |  | Income Statement |  | 2021 |  | 2020
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
(Decrease) increase in allowance for credit losses on AFS securities |  | Investment fair value changes, net |  | $ | (388) |  |  | $ | 1,471 |
Gain on sale of AFS securities |  | Realized gains, net |  | (9,907) |  |  | (12,551) |
|  |  |  | $ | (10,295) |  |  | $ | (11,080) |
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 2,046 |  |  | $ | 1,108 |
|  |  |  | $ | 2,046 |  |  | $ | 1,108 |
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 six months ended June 30, 2021 and 2020. Table 17.3 – Basic and Diluted Earnings (Loss) per Common Share
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In Thousands, except Share Data) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Basic Earnings (Loss) per Common Share: |  |  |  |  |  |  |  |
Net income (loss) attributable to Redwood |  | $ | 90,025 |  |  | $ | 165,444 |  |  | $ | 187,282 |  |  | $ | (777,954) |
Less: Dividends and undistributed earnings allocated to participating securities |  | (3,149) |  |  | (4,528) |  |  | (6,458) |  |  | (1,011) |
Net income (loss) allocated to common shareholders |  | $ | 86,876 |  |  | $ | 160,916 |  |  | $ | 180,824 |  |  | $ | (778,965) |
Basic weighted average common shares outstanding |  | 112,921,070 |  |  | 114,383,289 |  |  | 112,337,984 |  |  | 114,229,928 |
Basic Earnings (Loss) per Common Share |  | $ | 0.77 |  |  | $ | 1.41 |  |  | $ | 1.61 |  |  | $ | (6.82) |
Diluted Earnings (Loss) per Common Share: |  |  |  |  |  |  |  |
Net income (loss) attributable to Redwood |  | $ | 90,025 |  |  | $ | 165,444 |  |  | $ | 187,282 |  |  | $ | (777,954) |
Less: Dividends and undistributed earnings allocated to participating securities |  | (2,869) |  |  | (3,116) |  |  | (5,829) |  |  | (1,011) |
Adjust for interest expense and gain on extinguishment of convertible notes for the period, net of tax |  | 6,990 |  |  | (15,835) |  |  | 13,971 |  |  | — |
Net income (loss) allocated to common shareholders |  | $ | 94,146 |  |  | $ | 146,493 |  |  | $ | 195,424 |  |  | $ | (778,965) |
Weighted average common shares outstanding |  | 112,921,070 |  |  | 114,383,289 |  |  | 112,337,984 |  |  | 114,229,928 |
Net effect of dilutive equity awards |  | 273,139 |  |  | — |  |  | 234,353 |  |  | — |
Net effect of assumed convertible notes conversion to common shares |  | 28,566,875 |  |  | 32,715,790 |  |  | 28,566,875 |  |  | — |
Diluted weighted average common shares outstanding |  | 141,761,084 |  |  | 147,099,079 |  |  | 141,139,212 |  |  | 114,229,928 |
Diluted Earnings (Loss) per Common Share |  | $ | 0.66 |  |  | $ | 1.00 |  |  | $ | 1.38 |  |  | $ | (6.82) |

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