EXHIBIT 11.1
REDWOOD TRUST, INC.
Statement Re: Computation of Per Share Earnings
Twelve Months Twelve Months Twelve Months
Ended Ended Ended
December 31, 1998 December 31, 1997 December 31, 1996
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Basic:
Average common shares outstanding ......................... 13,199,819 13,334,163 7,950,175
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Total ............................................... 13,199,819 13,334,163 7,950,175
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Net Income ................................................ ($40,117,961) $ 24,746,164 $ 11,537,318
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Per Share Amount .......................................... ($ 3.04) $ 1.86 $ 1.45
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Diluted:
Average common shares outstanding ......................... 13,199,819 13,334,163 7,950,175
Net effect of dilutive stock options outstanding
during the period -- based on the treasury stock method -- 191,513 175,391
Net effect of dilutive stock warrants outstanding
during the period -- based on the treasury stock method -- 154,734 618,618
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Total ............................................... 13,199,819 13,680,410 8,744,184
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Net Income ................................................ ($40,117,961) $ 24,746,164 $ 11,537,318
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Per Share Amount .......................................... ($ 3.04) $ 1.81 $ 1.32
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