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 ============ ============ ===========