Equity (Tables)

12 Months Ended

Dec. 31, 2021

Changes to Accumulated Other Comprehensive Income (Loss) by Component

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,
	2021				2020
(In Thousands)	Net Unrealized Gains on Available-for-Sale Securities		Net Unrealized Losses on Interest Rate Agreements Accounted for as Cash Flow Hedges		Net Unrealized Gains on Available-for-Sale Securities		Net 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)

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

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 the	Year Ended December 31,
(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)	$	388
Gain on sale of AFS securities	Realized 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 loss	Interest expense	$	4,127	$	3,188
		$	4,127	$	3,188

Basic and Diluted Earnings (Loss) 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)	2021		2020		2019
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 outstanding	113,230,190		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 tax	27,463		—		36,212
Net income (loss) allocated to common shareholders	$	337,196	$	(583,837)	$	200,122
Weighted average common shares outstanding	113,230,190		113,935,605		101,147,225
Net effect of dilutive equity awards	273,236		—		251,100
Net effect of assumed convertible notes conversion to common shares	28,566,875		—		35,382,269
Diluted weighted average common shares outstanding	142,070,301		113,935,605		136,780,594
Diluted Earnings (Loss) per Common Share	$	2.37	$	(5.12)	$	1.46