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Equity (Tables)

9 Months Ended

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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Tabular disclosure of information about items reclassified out of accumulated other comprehensive income (loss).

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Tabular disclosure of the components of accumulated other comprehensive income (loss).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 830
-SubTopic 30
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-Name Accounting Standards Codification
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Tabular disclosure of an entity's basic and diluted earnings per share calculations, including a reconciliation of numerators and denominators of the basic and diluted per-share computations for income from continuing operations.

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-Section 50
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