Exhibit 11.1
Redwood Trust, Inc.
Computation of Per Share Earnings
| Twelve Months | Twelve Months | Twelve Months | ||||||||||||
| Ended | Ended | Ended | ||||||||||||
| December 31, 2003 | December 31, 2002 | December 31, 2001 | ||||||||||||
Basic: |
||||||||||||||
Average common shares
outstanding |
17,759,346 | 15,177,449 | 10,163,581 | |||||||||||
Total |
17,759,346 | 15,177,449 | 10,163,581 | |||||||||||
Net Income |
$ | 131,713,361 | $ | 53,893,217 | $ | 30,162,747 | ||||||||
Per Share Amount |
$ | 7.42 | $ | 3.55 | $ | 2.97 | ||||||||
Diluted: |
||||||||||||||
Average common shares
outstanding |
17,759,346 | 15,177,449 | 10,163,581 | |||||||||||
Net effect of dilutive stock options outstanding
during the period — based on the treasury stock method |
827,303 | 481,174 | 311,183 | |||||||||||
Total |
18,586,649 | 15,658,623 | 10,474,764 | |||||||||||
Net Income |
$ | 131,713,361 | $ | 53,893,217 | $ | 30,162,747 | ||||||||
Per Share Amount |
$ | 7.09 | $ | 3.44 | $ | 2.88 | ||||||||