EXHIBIT 11 REDWOOD TRUST, INC. STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
THREE MONTHS THREE MONTHS ENDED ENDED MARCH 31, 1996 MARCH 31, 1995 -------------- -------------- PRIMARY: Average common shares outstanding .................................. 5,521,376 208,332 Average preferred shares outstanding (A) ........................... 0 1,666,063 Net effect of dilutive stock options outstanding during the period -- based on the treasury stock method ........ 164,227 187,022 Net effect of dilutive stock warrants outstanding during the period -- based on the treasury stock method ........ 443,984 53,744 ---------- ---------- Total 6,129,587 2,115,161 ========== ========== Net Income $1,954,190 $ 401,677 ========== ========== Per Share Amount $ 0.32 $ 0.19 ========== ========== FULLY DILUTED: Average common shares outstanding .................................. 5,521,376 208,332 Average preferred shares outstanding (A) ........................... 0 1,666,063 Net effect of dilutive stock options outstanding during the period -- based on the treasury stock method ........ 164,548 187,022 Net effect of dilutive stock warrants outstanding during the period -- based on the treasury stock method ........ 446,724 53,744 ---------- ---------- Total 6,132,648 2,115,161 ========== ========== Net Income $1,954,190 $ 401,677 ========== ========== Per Share Amount $ 0.32 $ 0.19 ========== ==========
(A) Preferred shares considered common stock equivalents for all periods as there is no stated yield and there is an automatic conversion feature to convert the preferred to common with no additional proceeds to the company. 46