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EXHIBIT 11.1
REDWOOD TRUST, INC.
COMPUTATION OF PER SHARE EARNINGS
Three Months Six Months
Ended Ended
June 30, 2003 June 30, 2003
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BASIC:
Average common shares outstanding .............................. 17,652,854 17,036,286
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Total .................................................... 17,652,854 17,036,286
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Net Income ..................................................... $ 22,212,050 $ 37,143,740
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Per Share Amount ............................................... $ 1.26 $ 2.18
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DILUTED:
Average common shares outstanding .............................. 17,652,854 17,036,286
Net effect of dilutive stock options outstanding
during the period -- based on the treasury stock method .... 780,311 694,019
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Total .................................................... 18,433,165 17,730,304
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Net Income ..................................................... $ 22,212,050 $ 37,143,740
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Per Share Amount ............................................... $ 1.21 $ 2.09
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