EXHIBIT 11.1
REDWOOD TRUST, INC.
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
Three Months Nine Months
Ended Ended
September 30, 1997 September 30, 1997
------------------ ------------------
PRIMARY:
Average common shares outstanding .................. 14,316,678 12,983,071
Net effect of dilutive stock options outstanding
during the period -- based on the treasury
stock method ................................... 177,434 243,410
Net effect of dilutive stock warrants outstanding
during the period -- based on the treasury
stock method ................................... 130,489 189,551
----------- -----------
Total ........................................ 14,624,601 13,416,032
=========== ===========
Net Income ......................................... $ 6,859,361 $20,349,907
=========== ===========
Per Share Amount ................................... $0.47 $1.52
=========== ===========
FULLY DILUTED:
Average common shares outstanding .................. 14,316,678 12,983,071
Net effect of dilutive stock options outstanding
during the period -- based on the treasury
stock method ................................... 177,434 243,410
Net effect of dilutive stock warrants outstanding
during the period -- based on the treasury
stock method ................................... 130,489 189,551
----------- -----------
Total ........................................ 14,624,601 13,416,032
=========== ===========
Net Income ......................................... $ 6,859,361 $20,349,907
=========== ===========
Per Share Amount ................................... $0.47 $1.52
=========== ===========
64
EXHIBIT 11.1
REDWOOD TRUST, INC.
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
Three Months Nine Months
Ended Ended
September 30, 1996 September 30, 1996
------------------ ------------------
PRIMARY:
Average common shares outstanding............................ 8,732,326 7,360,916
Net effect of dilutive stock options outstanding
during the period -- based on the treasury stock method.. 162,393 186,576
Net effect of dilutive stock warrants outstanding
during the period -- based on the treasury stock method.. 621,455 699,324
--------- ----------
Total 9,516,174 8,246,815
========= ==========
Net Income $2,999,205 $7,453,284
========== ==========
Per Share Amount $0.32 $0.90
========== ==========
FULLY DILUTED:
Average common shares outstanding............................ 8,732,326 7,360,916
Net effect of dilutive stock options outstanding
during the period -- based on the treasury stock method.. 180,891 204,202
Net effect of dilutive stock warrants outstanding
during the period -- based on the treasury stock method.. 744,178 837,425
---------- ----------
Total 9,657,395 8,402,542
========== ==========
Net Income $2,999,205 $7,453,284
========== ==========
Per Share Amount $0.31 $0.89
========== ==========
65