Exhibit 11.1
Redwood Trust, Inc.
Computation of Per Share Earnings
| Three Months | Nine Months | |||||||||
| Ended | Ended | |||||||||
| September 30, 2002 | September 30, 2002 | |||||||||
Basic: |
||||||||||
Average common shares outstanding |
15,730,182 | 14,879,883 | ||||||||
Total |
15,730,182 | 14,879,883 | ||||||||
Net Income |
$ | 14,306,216 | $ | 39,327,257 | ||||||
Per Share Amount |
$ | 0.91 | $ | 2.64 | ||||||
Diluted: |
||||||||||
Average common shares outstanding |
15,730,182 | 14,879,883 | ||||||||
Net effect of dilutive stock options outstanding
during the period — based on the treasury stock method |
510,012 | 485,469 | ||||||||
Total |
16,240,194 | 15,365,352 | ||||||||
Net Income |
$ | 14,306,216 | $ | 39,327,257 | ||||||
Per Share Amount |
$ | 0.88 | $ | 2.56 | ||||||