Capstead Mortgage Corporation Announces First
Quarter 2010 Results
First Quarter 2010 Highlights
l Earnings of over $40 million or $0.51 per diluted common share
l Book value at quarter end was $11.77 per common share
l Portfolio at quarter end totaled $7.59 billion
l Portfolio leverage at quarter end was 6.37 times long-term investment capital
l Total financing spreads averaged 2.14%
April 28, 2010 05:11 PM Eastern Daylight Time
DALLAS--(EON: Enhanced Online News)--Capstead Mortgage Corporation (NYSE: CMO) (“Capstead” or the
“Company”) today reported net income of $40,437,000 or $0.51 per diluted common share for the quarter ended
March 31, 2010. This compares to net income of $42,076,000, or $0.57 per diluted common share for the quarter
ended March 31, 2009. The Company paid a first quarter 2010 dividend of $0.50 per common share on April 20,
2010.
First Quarter Earnings and Related Discussion
Capstead is a self-managed real estate investment trust for federal income tax purposes that invests in a leveraged
portfolio of residential adjustable-rate mortgage, or ARM, securities issued and guaranteed by government-
sponsored enterprises, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae.
For the quarter ended March 31, 2010, the Company reported net interest margins on interest-earning assets of
$44,687,000 compared to $46,650,000 for the fourth quarter of 2009. Net interest margins were lower during the
current quarter primarily as a result of higher investment premium amortization associated with buyouts by Freddie
Mac of seriously delinquent loans from its mortgage guarantee portfolio that were included in March 2010 portfolio
runoff. Total financing spreads averaged 2.14% during the first quarter of 2010, compared to 2.21% during the
fourth quarter of 2009.
Yields on the Company’s interest-earning assets averaged 2.99% during the first quarter of 2010, a decline of 51
basis points from an average of 3.50% achieved during the fourth quar