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Equity (Tables) | 9 Months Ended
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Sep. 30, 2022
Equity [Abstract] |
Changes to Accumulated Other Comprehensive Income by Component | The following table provides a summary of changes to accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2022 and 2021. Table 18.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component
|  | Three Months Ended September 30, 2022 |  | Three Months Ended September 30, 2021
(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 |  | $ | 16,595 |  |  | $ | (74,383) |  |  | $ | 88,251 |  |  | $ | (78,511) |
Other comprehensive (loss) income before reclassifications |  | (8,731) |  |  | — |  |  | (2,658) |  |  | — |
Amounts reclassified from other accumulated comprehensive (income) loss |  | 544 |  |  | 1,040 |  |  | (6,200) |  |  | 1,041 |
Net current-period other comprehensive (loss) income |  | (8,187) |  |  | 1,040 |  |  | (8,858) |  |  | 1,041 |
Balance at End of Period |  | $ | 8,408 |  |  | $ | (73,343) |  |  | $ | 79,393 |  |  | $ | (77,470) |
|  | Nine Months Ended September 30, 2022 |  | Nine Months Ended September 30, 2021
(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 |  | $ | 67,503 |  |  | $ | (76,430) |  |  | $ | 76,336 |  |  | $ | (80,557) |
Other comprehensive (loss) income before reclassifications |  | (60,013) |  |  | — |  |  | 19,552 |  |  | — |
Amounts reclassified from other accumulated comprehensive (income) loss |  | 918 |  |  | 3,087 |  |  | (16,495) |  |  | 3,087 |
Net current-period other comprehensive (loss) income |  | (59,095) |  |  | 3,087 |  |  | 3,057 |  |  | 3,087 |
Balance at End of Period |  | $ | 8,408 |  |  | $ | (73,343) |  |  | $ | 79,393 |  |  | $ | (77,470) |
Reclassifications out of Accumulated Other Comprehensive Income | The following table provides a summary of reclassifications out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2022 and 2021. Table 18.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive (Loss)
|  | Affected Line Item in the |  | Three Months Ended September 30,
(In Thousands) |  | Income Statement |  | 2022 |  | 2021
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Increase (decrease) in allowance for credit losses on AFS securities |  | Investment fair value changes, net |  | $ | 544 |  |  | $ | — |
Gain on sale of AFS securities |  | Realized gains, net |  | — |  |  | (6,200) |
|  |  |  | $ | 544 |  |  | $ | (6,200) |
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 1,040 |  |  | $ | 1,041 |
|  |  |  | $ | 1,040 |  |  | $ | 1,041 |
|  |  |  | Amount Reclassified From Accumulated Other Comprehensive (Loss)
|  | Affected Line Item in the |  | Nine Months Ended September 30,
(In Thousands) |  | Income Statement |  | 2022 |  | 2021
Net Realized (Gain) Loss on AFS Securities |  |  |  |  |  |
Increase (decrease) in allowance for credit losses on AFS securities |  | Investment fair value changes, net |  | $ | 2,315 |  |  | $ | (388) |
Gain on sale of AFS securities |  | Realized gains, net |  | (1,397) |  |  | (16,107) |
|  |  |  | $ | 918 |  |  | $ | (16,495) |
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges |  |  |  |  |  |
Amortization of deferred loss |  | Interest expense |  | $ | 3,087 |  |  | $ | 3,087 |
|  |  |  | $ | 3,087 |  |  | $ | 3,087 |
Basic and Diluted Earnings Per Common Share | The following table provides the basic and diluted (loss) earnings per common share computations for the three and nine months ended September 30, 2022 and 2021. Table 18.3 – Basic and Diluted Earnings per Common Share
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands, except Share Data) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Basic Earnings per Common Share: |  |  |  |  |  |  |  |
Net (loss) income attributable to Redwood |  | $ | (50,411) |  |  | $ | 88,286 |  |  | $ | (119,462) |  |  | $ | 275,568 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,158) |  |  | (2,984) |  |  | (3,445) |  |  | (8,979) |
Net (loss) income allocated to common shareholders |  | $ | (51,569) |  |  | $ | 85,302 |  |  | $ | (122,907) |  |  | $ | 266,589 |
Basic weighted average common shares outstanding |  | 116,087,890 |  |  | 112,995,847 |  |  | 118,530,172 |  |  | 112,754,691 |
Basic (Loss) Earnings per Common Share |  | $ | (0.44) |  |  | $ | 0.75 |  |  | $ | (1.04) |  |  | $ | 2.36 |
Diluted Earnings per Common Share: |  |  |  |  |  |  |  |
Net (loss) income attributable to Redwood |  | $ | (50,411) |  |  | $ | 88,286 |  |  | $ | (119,462) |  |  | $ | 275,568 |
Less: Dividends and undistributed earnings allocated to participating securities |  | (1,158) |  |  | (2,747) |  |  | (3,445) |  |  | (8,151) |
Add back: Interest expense on convertible notes for the period, net of tax |  | — |  |  | 6,870 |  |  | — |  |  | 20,585 |
Net (loss) income allocated to common shareholders |  | $ | (51,569) |  |  | $ | 92,409 |  |  | $ | (122,907) |  |  | $ | 288,002 |
Weighted average common shares outstanding |  | 116,087,890 |  |  | 112,995,847 |  |  | 118,530,172 |  |  | 112,754,691 |
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 |
Diluted weighted average common shares outstanding |  | 116,087,890 |  |  | 141,855,471 |  |  | 118,530,172 |  |  | 141,575,385 |
Diluted (Loss) Earnings per Common Share |  | $ | (0.44) |  |  | $ | 0.65 |  |  | $ | (1.04) |  |  | $ | 2.03 |

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