Equity (Tables)

6 Months Ended

Jun. 30, 2011

Summary of Changes to Stockholders' Equity

The following table provides a summary of changes to stockholders’ equity for the three and six months ended June 30, 2011.

Stockholders’ Equity

(In Thousands)	Three Months Ended June 30, 2011			Six Months Ended June 30, 2011
Balance at beginning of period	$	1,074,811		$	1,064,753
Other changes in equity, net		1,987			4,231
Unrealized gains on securities and derivatives, net		(41,491	)		(31,718	)
Distributions to shareholders		(20,236	)		(40,360	)
Net income attributable to Redwood Trust, Inc.		9,439			27,604
Balance at End of Period	$	1,024,510		$	1,024,510

Summary of Components of Accumulated Other Comprehensive Income

The following table provides a summary of the components of accumulated other comprehensive income at June 30, 2011 and December 31, 2010.

(In Thousands)	June 30, 2011			December 31, 2010
Net unrealized gains on real estate securities	$	109,190		$	137,360
Less: Unrealized losses attributable to noncontrolling interest		—			(4,164	)
Net unrealized gains on real estate securities recognized in equity		109,190			141,524
Net unrealized losses on interest rate agreements accounted for as cash flow hedges		(28,569	)		(29,185	)
Total Accumulated Other Comprehensive Income	$	80,621		$	112,339

Basic and Diluted Earnings (Loss) Per Common Share

The following table provides the basic and diluted earnings per common share computations for the three and six months ended June 30, 2011 and 2010.

Basic and Diluted Earnings Per Common Share

	Three Months Ended June 30,				Six Months Ended June 30,
(In Thousands, Except Share Data)	2011		2010		2011		2010
Basic Earnings Per Common Share:
Net income attributable to Redwood	$	9,439	$	28,601	$	27,604	$	75,444
Less: Dividends and undistributed earnings allocated to participating securities		192		795		729		2,111
Net income allocated to common shareholders	$	9,247	$	27,806	$	26,875	$	73,333
Basic weighted average common shares outstanding		78,324,057		77,800,642		78,176,767		77,739,279
Basic Earnings Per Common Share	$	0.12	$	0.36	$	0.34	$	0.94
Diluted Earnings Per Common Share:
Net income attributable to Redwood	$	9,439	$	28,601	$	27,604	$	75,444
Less: Dividends and undistributed earnings allocated to participating securities		343		685		922		1,710
Net income allocated to common shareholders	$	9,096	$	27,916	$	26,682	$	73,734
Basic weighted average common shares outstanding		78,324,057		77,800,642		78,176,767		77,739,279
Net effect of dilutive equity awards		1,153,447		1,051,617		1,248,593		922,363
Diluted weighted average common shares outstanding		79,477,504		78,852,259		79,425,360		78,661,642
Diluted Earnings Per Common Share	$	0.11	$	0.35	$	0.34	$	0.94