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Equity (Tables)
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
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, 2016 and 2015.
Table 16.1 – Changes in Accumulated Other Comprehensive Income by Component
 
 
Years Ended December 31,
 
 
2016
 
2015
(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
 
$
139,356

 
$
(47,363
)
 
$
186,737

 
$
(46,049
)
Other comprehensive income (loss)
before reclassifications (1)
 
(2,316
)
 
3,271

 
(17,955
)
 
(1,409
)
Amounts reclassified from other
accumulated comprehensive income
 
(21,167
)
 
72

 
(29,426
)
 
95

Net current-period other comprehensive income (loss)
 
(23,483
)
 
3,343

 
(47,381
)
 
(1,314
)
Balance at End of Period
 
$
115,873

 
$
(44,020
)
 
$
139,356

 
$
(47,363
)

(1)
Amounts presented for unrealized gains (losses) on available-for-sale securities are net of tax benefit (provision) of $1 million and $(0.4) million for the years ended December 31, 2016 and 2015, respectively.
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, 2016 and 2015.
Table 16.2 – Reclassifications Out of Accumulated Other Comprehensive Income
 
 
 
 
Amount Reclassified From Accumulated Other Comprehensive Income
 
 
Affected Line Item in the
 
Years Ended December 31,
(In Thousands)
 
Income Statement
 
2016
 
2015
Net Realized (Gain) Loss on AFS Securities
 
 
 
 
 
 
Other than temporary impairment (1)
 
Investment fair value changes, net
 
$
368

 
$
246

Gain on sale of AFS securities
 
Realized gains, net
 
(21,535
)
 
(29,672
)
 
 
 
 
$
(21,167
)
 
$
(29,426
)
Net Realized Loss on Interest Rate
Agreements Designated as Cash Flow Hedges
 
 
 
 
 
 
Amortization of deferred loss
 
Interest expense
 
$
72

 
$
95

 
 
 
 
$
72

 
$
95


(1)
For the year ended December 31, 2016, other-than-temporary impairments were $3 million, of which $0.4 million were recognized through the consolidated statements of income and $3 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet. For the year ended December 31, 2015, other-than-temporary impairments were $0.4 million, of which $0.2 million were recognized through our consolidated statements of income, and $0.2 million were recognized in Accumulated other comprehensive income, a component of our consolidated balance sheet.
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, 2016, 2015, and 2014.
Table 16.3 – Basic and Diluted Earnings per Common Share
 
 
Years Ended December 31,
(In Thousands, except Share Data)
 
2016
 
2015
 
2014
Basic Earnings per Common Share:
 
 
 
 
 
 
Net income attributable to Redwood
 
$
131,252

 
$
102,088

 
$
100,569

Less: Dividends and undistributed earnings allocated to participating securities
 
(3,742
)
 
(2,806
)
 
(2,612
)
Net income allocated to common shareholders
 
$
127,510

 
$
99,282

 
$
97,957

Basic weighted average common shares outstanding
 
76,747,047

 
82,945,103

 
82,837,369

Basic Earnings per Common Share
 
$
1.66

 
$
1.20

 
$
1.18

Diluted Earnings per Common Share:
 
 
 
 
 
 
Net income attributable to Redwood
 
$
131,252

 
$
102,088

 
$
100,569

Less: Dividends and undistributed earnings allocated to participating securities
 
(4,035
)
 
(2,677
)
 
(2,524
)
Add back: Interest expense on convertible notes for the period, net of tax
 
23,862

 
—

 
—

Net income allocated to common shareholders
 
$
151,079

 
$
99,411

 
$
98,045

Weighted average common shares outstanding
 
76,747,047

 
82,945,103

 
82,837,369

Net effect of dilutive equity awards
 
28,435

 
1,573,292

 
2,261,210

Net effect of assumed convertible notes conversion to common shares
 
21,133,608

 
—

 
—

Diluted weighted average common shares outstanding
 
97,909,090

 
84,518,395

 
85,098,579

Diluted Earnings per Common Share
 
$
1.54

 
$
1.18

 
$
1.15