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Equity
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021.
Table 18.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component
Years Ended December 31,
20222021
(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(64,704)— 8,016 — 
Amounts reclassified from other accumulated comprehensive (loss) income636 4,127 (16,849)4,127 
Net current-period other comprehensive (loss) income(64,068)4,127 (8,833)4,127 
Balance at End of Period$3,435 $(72,303)$67,503 $(76,430)
The following table provides a summary of reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2022 and 2021.
Table 18.2 – 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 Statement20222021
Net Realized (Gain) Loss on AFS Securities
Increase (decrease) in allowance for credit losses on AFS securitiesInvestment fair value changes, net$2,541 $(388)
Gain on sales and calls of AFS securitiesRealized gains, net(1,905)(16,461)
$636 $(16,849)
Net Realized Loss on Interest Rate
  Agreements Designated as Cash Flow Hedges
Amortization of deferred lossInterest expense$4,127 $4,127 
$4,127 $4,127 
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 year ended December 31, 2022, we issued 5.2 million common shares for net proceeds of $67 million under this program. During the years ended December 31, 2021 and December 31, 2020, we issued 1.6 million and 0.1 million of common shares for net proceeds of $20 million and $2 million under this program, respectively. During the first quarter of 2022, we increased the capacity of this program to $175 million, all of which remained outstanding for future offerings under this program as of December 31, 2022.
Direct Stock Purchase and Dividend Reinvestment Plan
During the year ended December 31, 2022, we did not issue shares of common stock through our Direct Stock Purchase and Dividend Reinvestment Plan. During the year ended December 31, 2021, we issued 0.1 million shares of common stock for net proceeds of $1 million through our Direct Stock Purchase and Dividend Reinvestment Plan. At December 31, 2022, approximately 6 million shares remained outstanding for future offerings under this plan.
Earnings per Common Share
The following table provides the basic and diluted earnings per common share computations for the years ended December 31, 2022, 2021, and 2020.
Table 18.3 – Basic and Diluted Earnings per Common Share
Years Ended December 31,
(In Thousands, except Share Data)202220212020
Basic Earnings (Loss) per Common Share:
Net (loss) income attributable to Redwood$(163,520)$319,613 $(581,847)
Less: Dividends and undistributed earnings allocated to participating securities(4,335)(10,635)(1,990)
Net (loss) income allocated to common shareholders$(167,855)$308,978 $(583,837)
Basic weighted average common shares outstanding117,227,846 113,230,190 113,935,605 
Basic (Loss) Earnings per Common Share$(1.43)$2.73 $(5.12)
Diluted Earnings per Common Share:
Net (loss) income attributable to Redwood$(163,520)$319,613 $(581,847)
Less: Dividends and undistributed earnings allocated to participating securities(4,335)(9,880)(1,990)
Add back: interest expense of convertible notes for the period, net of tax— 27,463 — 
Net (loss) income allocated to common shareholders$(167,855)$337,196 $(583,837)
Weighted average common shares outstanding117,227,846 113,230,190 113,935,605 
Net effect of dilutive equity awards— 273,236 — 
Net effect of assumed convertible notes conversion to common shares— 28,566,875 — 
Diluted weighted average common shares outstanding117,227,846 142,070,301 113,935,605 
Diluted (Loss) Earnings per Common Share$(1.43)$2.37 $(5.12)
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 year ended December 31, 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 years ended December 31, 2022 and December 31, 2020, 40,081,997 and 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, 2022, 2021, and 2020, the number of outstanding equity awards that were antidilutive totaled 226,975, 18,736, and 12,622, respectively.
Stock Repurchases
In July 2022, our Board of Directors approved an authorization for the repurchase of up to $125 million of our common stock, and also authorized the repurchase of outstanding debt securities, including convertible and exchangeable debt. This authorization replaced our previous $100 million stock repurchase authorization. This authorization has no expiration date and does not obligate us to acquire any specific number of shares or securities. During the year ended December 31, 2022, we repurchased 7.1 million shares of our common stock for a total cost of $56 million. At December 31, 2022, $101 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. See Note 14. Short-Term Debt and Note 16. Long-Term Debt for information regarding our convertible and exchangeable debt repurchases in 2022.