EXHIBIT 11.1
REDWOOD TRUST, INC.
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
Twelve Months Twelve Months Twelve Months
Ended Ended Ended
December 31, 1999 December 31, 1998 December 31, 1997
----------------- ----------------- -----------------
Basic:
Average common shares outstanding ......................... 9,768,345 13,199,819 13,334,163
------------ ------------ -----------
Total ............................................... 13,199,819 13,199,819 13,334,163
============ ============ ===========
Net Income ................................................ $(1,013,118) $(40,117,961) $24,746,164
============ ============ ===========
Per Share Amount .......................................... $ (0.10) $ (3.04) $ 1.86
============ ============ ===========
Diluted:
Average common shares outstanding ......................... 9,768,345 13,199,819 13,334,163
Net effect of dilutive stock options outstanding
during the period -- based on the treasury stock method -- -- 191,513
Net effect of dilutive stock warrants outstanding
during the period -- based on the treasury stock method -- -- 154,734
------------ ------------ -----------
Total ............................................... 9,768,345 13,199,819 13,680,410
============ ============ ===========
Net Income ................................................ $(1,013,118) $(40,117,961) $24,746,164
============ ============ ===========
Per Share Amount .......................................... $ (0.10) $ (3.04) $ 1.81
============ ============ ===========