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EXHIBIT 11.1
REDWOOD TRUST, INC.
COMPUTATION OF PER SHARE EARNINGS
Three Months Three Months
Ended Ended
March 31, 2003 March 31, 2002
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Basic:
Average common shares outstanding .............................. 16,412,867 13,658,443
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Total 16,412,867 13,658,443
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Net Income $14,931,689 $11,218,789
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Per Share Amount $ 0.91 $ 0.82
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DILUTED:
Average common shares outstanding .............................. 16,412,867 13,658,443
Net effect of dilutive stock options outstanding
during the period -- based on the treasury stock method .... 570,646 418,962
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Total 16,983,513 14,077,405
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Net Income $14,931,689 $11,218,789
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Per Share Amount $ 0.88 $ 0.80
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