Equity (Tables)

3 Months Ended

Mar. 31, 2022

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 months ended March 31, 2022 and 2021.

Table 17.1 – Changes in Accumulated Other Comprehensive Income (Loss) by Component


	Three Months Ended March 31, 2022				Three Months Ended March 31, 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	(17,873)		—		10,986		—
Amounts reclassified from other accumulated comprehensive (income) loss	(692)		1,018		(2,795)		1,018
Net current-period other comprehensive (loss) income	(18,565)		1,018		8,191		1,018
Balance at End of Period	$	48,938	$	(75,412)	$	84,527	$	(79,539)

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 months ended March 31, 2022 and 2021.

Table 17.2 – Reclassifications Out of Accumulated Other Comprehensive Income (Loss)



		Amount Reclassified From Accumulated Other Comprehensive (Loss)
	Affected Line Item in the	Three Months Ended March 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	$	705	$	(374)
Gain on sale of AFS securities	Realized gains, net	(1,397)		(2,421)

		$	(692)	$	(2,795)
Net Realized Loss on Interest Rate Agreements Designated as Cash Flow Hedges
Amortization of deferred loss	Interest expense	$	1,018	$	1,018
		$	1,018	$	1,018

Basic and Diluted Earnings Per Common Share

The following table provides the basic and diluted earnings per common share computations for the three months ended March 31, 2022 and 2021.

Table 17.3 – Basic and Diluted Earnings per Common Share


	Three Months Ended March 31,
(In Thousands, except Share Data)	2022		2021
Basic Earnings per Common Share:
Net income attributable to Redwood	$	30,915	$	97,257
Less: Dividends and undistributed earnings allocated to participating securities	(1,209)		(3,294)
Net income allocated to common shareholders	$	29,706	$	93,963
Basic weighted average common shares outstanding	119,884,172		112,276,842
Basic Earnings per Common Share	$	0.25	$	0.84
Diluted Earnings per Common Share:
Net income attributable to Redwood	$	30,915	$	97,257
Less: Dividends and undistributed earnings allocated to participating securities	(1,348)		(2,951)
Add back: Interest expense on convertible notes for the period, net of tax	4,582		7,007
Net income allocated to common shareholders	$	34,149	$	101,313
Weighted average common shares outstanding	119,884,172		112,276,842
Net effect of dilutive equity awards	290,831		195,568
Net effect of assumed convertible notes conversion to common shares	20,331,154		28,566,875
Diluted weighted average common shares outstanding	140,506,157		141,039,285
Diluted Earnings per Common Share	$	0.24	$	0.72