EXHIBIT 11.1
REDWOOD TRUST, INC.
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
Twelve Months Twelve Months Twelve Months
Ended Ended Ended
December 31, 1997 December 31, 1996 December 31, 1995
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Basic:
Average common shares outstanding ......................... 13,334,163 7,950,175 3,314,042
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Total ............................................... 13,334,163 7,950,175 3,314,042
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Net Income ................................................ $24,746,164 $11,537,318 $ 3,154,831
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Per Share Amount .......................................... $ 1.86 $ 1.45 $ 0.95
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Diluted:
Average common shares outstanding ......................... 13,334,163 7,950,175 3,314,042
Net effect of dilutive stock options outstanding
during the period -- based on the treasury stock method 191,513 175,391 173,716
Net effect of dilutive stock warrants outstanding
during the period -- based on the treasury stock method 154,734 618,618 216,046
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Total ............................................... 13,680,410 8,744,184 3,703,804
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Net Income ................................................ $24,746,164 $11,537,318 $ 3,154,831
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Per Share Amount .......................................... $ 1.81 $ 1.32 $ 0.85
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