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Equity
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Equity Equity
The following table provides a summary of changes to accumulated other comprehensive income by component for the years ended December 31, 2021 and 2020.
Table 17.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component
Years Ended December 31,
20212020
(In Thousands)Net Unrealized Gains on Available-for-Sale SecuritiesNet Unrealized Losses on Interest Rate Agreements Accounted for as Cash Flow HedgesNet Unrealized Gains on Available-for-Sale SecuritiesNet Unrealized Losses on 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		8,016 — (3,951)(32,806)
Amounts reclassified from other accumulated comprehensive income (loss)(16,849)4,127 (12,165)3,188 
Net current-period other comprehensive (loss) income(8,833)4,127 (16,116)(29,618)
Balance at End of Period$67,503 $(76,430)$76,336 $(80,557)
The following table provides a summary of reclassifications out of accumulated other comprehensive income for the years ended December 31, 2021 and 2020.
Table 17.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Amount Reclassified From
Accumulated Other Comprehensive Income
Affected Line Item in theYear Ended December 31,
(In Thousands)Income Statement20212020
Net Realized (Gain) Loss on AFS Securities
(Decrease) increase in allowance for credit losses on AFS securitiesInvestment fair value changes, net$(388)$388 
Gain on sale of AFS securitiesRealized gains, net(16,461)(12,553)
$(16,849)$(12,165)
Net Realized Loss on Interest Rate
  Agreements Designated as Cash Flow Hedges
Amortization of deferred lossInterest expense$4,127 $3,188 
$4,127 $3,188 
Issuance of Common Stock
In 2018, we established a program to sell up to an aggregate of $150 million of common stock from time to time in at-the-market ("ATM") offerings. In March 2020, we increased the maximum aggregate amount of common stock offered under the ATM program to $175 million. During the year ended December 31, 2021, we issued 1,578,554 common shares for net proceeds of approximately $20 million through ATM offerings. During the year ended December 31, 2020, we issued 129,500 common shares for net proceeds of approximately $2 million through ATM offerings. At December 31, 2021, approximately $90 million remained outstanding for future offerings under this program.
Direct Stock Purchase and Dividend Reinvestment Plan
During the year ended December 31, 2021, we issued 119,040 shares of common stock for net proceeds of $1 million through our Direct Stock Purchase and Dividend Reinvestment Plan. During the year ended December 31, 2021, we did not issue any shares of common stock through our Direct Stock Purchase and Dividend Reinvestment Plan. At December 31, 2021, approximately 6 million shares remained outstanding for future offerings under this plan.
Earnings per Common Share
The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2021, 2020, and 2019.
Table 17.3 – Basic and Diluted Earnings per Common Share
Years Ended December 31,
(In Thousands, except Share Data)202120202019
Basic Earnings (Loss) per Common Share:
Net income (loss) attributable to Redwood$319,613 $(581,847)$169,183 
Less: Dividends and undistributed earnings allocated to participating securities(10,635)(1,990)(4,797)
Net income (loss) allocated to common shareholders$308,978 $(583,837)$164,386 
Basic weighted average common shares outstanding113,230,190 113,935,605 101,120,744 
Basic Earnings (Loss) per Common Share$2.73 $(5.12)$1.63 
Diluted Earnings (Loss) per Common Share:
Net income (loss) attributable to Redwood$319,613 $(581,847)$169,183 
Less: Dividends and undistributed earnings allocated to participating securities(9,880)(1,990)(5,273)
Adjust for interest expense and gain on extinguishment of convertible notes for the period, net of tax27,463 — 36,212 
Net income (loss) allocated to common shareholders$337,196 $(583,837)$200,122 
Weighted average common shares outstanding113,230,190 113,935,605 101,147,225 
Net effect of dilutive equity awards273,236 — 251,100 
Net effect of assumed convertible notes conversion to common shares28,566,875 — 35,382,269 
Diluted weighted average common shares outstanding142,070,301 113,935,605 136,780,594 
Diluted Earnings (Loss) per Common Share$2.37 $(5.12)$1.46 
We included participating securities, which are certain equity awards that have non-forfeitable dividend participation rights, in the calculations of basic and diluted earnings per common share as we determined that the two-class method was more dilutive than the alternative treasury stock method for these shares. Dividends and undistributed earnings allocated to participating securities under the basic and diluted earnings per share calculations require specific shares to be included that may differ in certain circumstances.
For the years ended December 31, 2021, and 2019, certain of our convertible notes were determined to be dilutive and were included in the calculation of diluted EPS under the "if-converted" method. Under this method, the periodic interest expense (net of applicable taxes) for dilutive notes is added back to the numerator and the weighted average number of shares that the notes are entitled to (if converted, regardless of whether they are in or out of the money) are included in the denominator.
For the year ended December 31, 2020, 31,306,089 of common shares related to the assumed conversion of our convertible notes were antidilutive and were excluded in the calculation of diluted earnings per share. For the years ended December 31, 2021, 2020, and 2019, the number of outstanding equity awards that were antidilutive totaled 18,736, 12,622, and 10,051, respectively.
Stock Repurchases
In February 2018, our Board of Directors approved an authorization for the repurchase of our common stock, increasing the total amount authorized for repurchases of common stock to $100 million, and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. This authorization increased the previous share repurchase authorization approved in February 2016 and has no expiration date. This repurchase authorization does not obligate us to acquire any specific number of shares or securities. Under this authorization, shares or securities may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. During the year ended December 31, 2021, we did not repurchase any shares of our common stock pursuant to this authorization. During the year ended December 31, 2020, we repurchased 3,047,335 shares of our common stock pursuant to this authorization for $22 million. At December 31, 2021, $78 million of the current authorization remained available for the repurchase of shares of our common stock and we also continued to be authorized to repurchase outstanding debt securities.