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 ----------------- ----------------- ----------------- Basic: Average common shares outstanding ......................... 13,199,819 13,334,163 7,950,175 ------------ ------------ ------------ Total ............................................... 13,199,819 13,334,163 7,950,175 ============ ============ ============ Net Income ................................................ ($40,117,961) $ 24,746,164 $ 11,537,318 ============ ============ ============ Per Share Amount .......................................... ($ 3.04) $ 1.86 $ 1.45 ============ ============ ============ 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 ------------ ------------ ------------ Total ............................................... 13,199,819 13,680,410 8,744,184 ============ ============ ============ Net Income ................................................ ($40,117,961) $ 24,746,164 $ 11,537,318 ============ ============ ============ Per Share Amount .......................................... ($ 3.04) $ 1.81 $ 1.32 ============ ============ ============