Equity (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022 and 2021.

Table 18.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component


	Years Ended December 31,
	2022				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	(64,704)		—		8,016		—
Amounts reclassified from other accumulated comprehensive (loss) income	636		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)

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

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 the	Year Ended December 31,
(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	$	2,541	$	(388)
Gain on sales and calls of AFS securities	Realized gains, net	(1,905)		(16,461)
		$	636	$	(16,849)
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges
Amortization of deferred loss	Interest expense	$	4,127	$	4,127
		$	4,127	$	4,127

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, 2022, 2021, and 2020.

Table 18.3 – Basic and Diluted Earnings per Common Share


	Years Ended December 31,
(In Thousands, except Share Data)	2022		2021		2020
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 outstanding	117,227,846		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 outstanding	117,227,846		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 outstanding	117,227,846		142,070,301		113,935,605
Diluted (Loss) Earnings per Common Share	$	(1.43)	$	2.37	$	(5.12)