Exhibit 11.1
Redwood Trust, Inc.
Computation of Per Share Earnings
| Three Months | Nine Months | |||||||||||
| Ended | Ended | |||||||||||
| September 30, 2004 |
September 30, 2004 |
|||||||||||
| Basic: | ||||||||||||
Average common shares outstanding |
21,952,606 | 20,674,396 | ||||||||||
Total |
21,952,606 | 20,674,396 | ||||||||||
Net Income |
$ | 72,341,818 | $ | 178,221,052 | ||||||||
Per Share Amount |
$ | 3.30 | $ | 8.62 | ||||||||
| Diluted: | ||||||||||||
Average common shares outstanding |
21,952,606 | 20,674,396 | ||||||||||
Net effect of dilutive stock options outstanding
during the period — based on the treasury stock method |
775,763 | 811,812 | ||||||||||
Total |
22,728,369 | 21,486,208 | ||||||||||
Net Income |
$ | 72,341,818 | $ | 178,221,052 | ||||||||
Per Share Amount |
$ | 3.18 | $ | 8.29 | ||||||||