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Equity (Tables) | 9 Months Ended
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Sep. 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 nine months ended September 30, 2021 and 2020. Table 17.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component
|  | Three Months Ended September 30, 2021 |  | Three Months Ended September 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 |  | $ | 88,251 |  |  | $ | (78,511) |  |  | $ | 53,246 |  |  | $ | (82,637) |
Other comprehensive (loss) income before reclassifications |  | (2,658) |  |  | — |  |  | 8,236 |  |  | — |
Amounts reclassified from other accumulated comprehensive income (loss) |  | (6,200) |  |  | 1,041 |  |  | (445) |  |  | 1,040 |
Net current-period other comprehensive (loss) income |  | (8,858) |  |  | 1,041 |  |  | 7,791 |  |  | 1,040 |
Balance at End of Period |  | $ | 79,393 |  |  | $ | (77,470) |  |  | $ | 61,037 |  |  | $ | (81,597) |
|  | Nine Months Ended September 30, 2021 |  | Nine Months Ended September 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 |  | 19,552 |  |  | — |  |  | (19,890) |  |  | (32,806) |
Amounts reclassified from other accumulated comprehensive income (loss) |  | (16,495) |  |  | 3,087 |  |  | (11,525) |  |  | 2,148 |
Net current-period other comprehensive income (loss) |  | 3,057 |  |  | 3,087 |  |  | (31,415) |  |  | (30,658) |
Balance at End of Period |  | $ | 79,393 |  |  | $ | (77,470) |  |  | $ | 61,037 |  |  | $ | (81,597) |
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, 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 September 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 |  | $ | — |  |  | $ | (445) |
Gain on sale of AFS securities |  | Realized gains, net |  | (6,200) |  |  | — |
|  |  |  | $ | (6,200) |  |  | $ | (445) |
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 1,041 |  |  | $ | 1,040 |
|  |  |  | $ | 1,041 |  |  | $ | 1,040 |
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive Income
|  | Affected Line Item in the |  | Nine Months Ended September 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) |  |  | $ | 1,026 |
Gain on sale of AFS securities |  | Realized gains, net |  | (16,107) |  |  | (12,552) |
|  |  |  | $ | (16,495) |  |  | $ | (11,526) |
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 3,087 |  |  | $ | 2,148 |
|  |  |  | $ | 3,087 |  |  | $ | 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, 2021 and 2020. 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) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Basic Earnings (Loss) per Common Share: |  |  |  |  |  |  |  |
Net income (loss) attributable to Redwood |  | $ | 88,286 |  |  | $ | 141,812 |  |  | $ | 275,568 |  |  | $ | (636,142) |
Less: Dividends and undistributed earnings allocated to participating securities |  | (2,984) |  |  | (4,067) |  |  | (8,979) |  |  | (1,427) |
Net income (loss) allocated to common shareholders |  | $ | 85,302 |  |  | $ | 137,745 |  |  | $ | 266,589 |  |  | $ | (637,569) |
Basic weighted average common shares outstanding |  | 112,995,847 |  |  | 113,403,102 |  |  | 112,754,691 |  |  | 113,952,308 |
Basic Earnings (Loss) per Common Share |  | $ | 0.75 |  |  | $ | 1.21 |  |  | $ | 2.36 |  |  | $ | (5.60) |
Diluted Earnings (Loss) per Common Share: |  |  |  |  |  |  |  |
Net income (loss) attributable to Redwood |  | $ | 88,286 |  |  | $ | 141,812 |  |  | $ | 275,568 |  |  | $ | (636,142) |
Less: Dividends and undistributed earnings allocated to participating securities |  | (2,747) |  |  | (3,512) |  |  | (8,151) |  |  | (1,427) |
Add back: Interest expense on convertible notes for the period, net of tax |  | 6,870 |  |  | 6,990 |  |  | 20,585 |  |  | — |
Net income (loss) allocated to common shareholders |  | $ | 92,409 |  |  | $ | 145,290 |  |  | $ | 288,002 |  |  | $ | (637,569) |
Weighted average common shares outstanding |  | 112,995,847 |  |  | 113,403,102 |  |  | 112,754,691 |  |  | 113,952,308 |
Net effect of dilutive equity awards |  | 292,749 |  |  | — |  |  | 253,819 |  |  | — |
Net effect of assumed convertible notes conversion to common shares |  | 28,566,875 |  |  | 28,566,875 |  |  | 28,566,875 |  |  | — |
Diluted weighted average common shares outstanding |  | 141,855,471 |  |  | 141,969,977 |  |  | 141,575,385 |  |  | 113,952,308 |
Diluted Earnings (Loss) per Common Share |  | $ | 0.65 |  |  | $ | 1.02 |  |  | $ | 2.03 |  |  | $ | (5.60) |

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