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Equity
 3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Equity Equity
The following table provides a summary of changes to accumulated other comprehensive income (loss) by component for the three months ended March 31, 2022 and 2021.
Table 17.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component
Three Months Ended March 31, 2022Three Months Ended March 31, 2021
(In Thousands)Available-for-Sale SecuritiesInterest Rate Agreements Accounted for as Cash Flow HedgesAvailable-for-Sale SecuritiesInterest Rate Agreements Accounted for as Cash Flow Hedges
Balance at beginning of period$67,503 $(76,430)$76,336 $(80,557)
Other comprehensive (loss) income
before reclassifications 		(17,873)— 10,986 — 
Amounts reclassified from other
accumulated comprehensive (income) loss		(692)1,018 (2,795)1,018 
Net current-period other comprehensive (loss) income (18,565)1,018 8,191 1,018 
Balance at End of Period$48,938 $(75,412)$84,527 $(79,539)
The following table provides a summary of reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2022 and 2021.
Table 17.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
Amount Reclassified From
Accumulated Other Comprehensive (Loss)
Affected Line Item in theThree Months Ended March 31,
(In Thousands)Income Statement20222021
Net Realized (Gain) Loss on AFS Securities
Increase (decrease) in allowance for credit losses on AFS securitiesInvestment fair value changes, net$705 $(374)
Gain on sale of AFS securitiesRealized gains, net(1,397)(2,421)
$(692)$(2,795)
Net Realized Loss on Interest Rate
  Agreements Designated as Cash Flow Hedges
Amortization of deferred lossInterest expense$1,018 $1,018 
$1,018 $1,018 
Issuance of Common Stock
We have an established program to sell common stock from time to time in at-the-market ("ATM") offerings. During the three months ended March 31, 2022, we issued 5,232,869 common shares for net proceeds of $67 million under this program. During the three months ended March 31, 2022, we increased the capacity of this program to $175 million, all of which remained outstanding for future offerings under this program as of March 31, 2022.
Direct Stock Purchase and Dividend Reinvestment Plan
During the three months ended March 31, 2022, we did not issue any shares of common stock through our Direct Stock Purchase and Dividend Reinvestment Plan. At March 31, 2022, 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 three months ended March 31, 2022 and 2021.
Table 17.3 – Basic and Diluted Earnings per Common Share
Three Months Ended March 31,
(In Thousands, except Share Data)20222021
Basic Earnings per Common Share:
Net income attributable to Redwood$30,915 $97,257 
Less: Dividends and undistributed earnings allocated to participating securities(1,209)(3,294)
Net income allocated to common shareholders$29,706 $93,963 
Basic weighted average common shares outstanding119,884,172 112,276,842 
Basic Earnings per Common Share$0.25 $0.84 
Diluted Earnings per Common Share:
Net income attributable to Redwood$30,915 $97,257 
Less: Dividends and undistributed earnings allocated to participating securities(1,348)(2,951)
Add back: Interest expense on convertible notes for the period, net of tax4,582 7,007 
Net income allocated to common shareholders$34,149 $101,313 
Weighted average common shares outstanding119,884,172 112,276,842 
Net effect of dilutive equity awards290,831 195,568 
Net effect of assumed convertible notes conversion to common shares20,331,154 28,566,875 
Diluted weighted average common shares outstanding140,506,157 141,039,285 
Diluted Earnings per Common Share$0.24 $0.72 
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.
During the three months ended March 31, 2022 and 2021, 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 three months ended March 31, 2021, 8,235,721 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 three months ended March 31, 2022 and 2021, the number of outstanding equity awards that were antidilutive totaled 17,154 and 15,460, respectively.
Stock Repurchases
Our Board of Directors previously approved an authorization for the repurchase of up to $100 million of our common stock, and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. This authorization has no expiration date and does not obligate us to acquire any specific number of shares or securities. During the three months ended March 31, 2022, we did not repurchase any shares. At March 31, 2022, $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.