. . . EXHIBIT 11.1 REDWOOD TRUST, INC. COMPUTATION OF PER SHARE EARNINGS
Three Months Six Months Ended Ended June 30, 2003 June 30, 2003 ------------- ------------- BASIC: Average common shares outstanding .............................. 17,652,854 17,036,286 ------------- ------------- Total .................................................... 17,652,854 17,036,286 ============= ============= Net Income ..................................................... $ 22,212,050 $ 37,143,740 ============= ============= Per Share Amount ............................................... $ 1.26 $ 2.18 ============= ============= 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 ------------- ------------- Total .................................................... 18,433,165 17,730,304 ============= ============= Net Income ..................................................... $ 22,212,050 $ 37,143,740 ============= ============= Per Share Amount ............................................... $ 1.21 $ 2.09 ============= =============