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EXHIBIT 11
REDWOOD TRUST, INC.
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, 1996 MARCH 31, 1995
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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
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Total 6,129,587 2,115,161
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Net Income $1,954,190 $ 401,677
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Per Share Amount $ 0.32 $ 0.19
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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
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Total 6,132,648 2,115,161
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Net Income $1,954,190 $ 401,677
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Per Share Amount $ 0.32 $ 0.19
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(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.
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