EX-99.1 2 d527369dex991.htm EX-99.1 EX-99.1
CAPSTEAD
Information as of March 31, 2013
Investor Presentation
Exhibit 99.1

Safe Harbor Statement -
Private Securities Litigation Reform Act of 1995
Cautionary Statement Concerning Forward-looking Statements
This
document
contains
“forward-looking
statements”
within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act
of
1995.
Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results,
performance
or
achievements,
and
may
contain
the
words
“believe,”
“anticipate,”
“expect,”
“estimate,”
“intend,”
“will
be,”
“will
likely
continue,”
“will
likely
result,”
or
words
or
phrases
of
similar
meaning.
Forward-looking
statements
are
based
largely
on
the
expectations
of management and are subject to a number of risks and uncertainties including, but not limited to, the following:
In addition to the above considerations, actual results and liquidity are affected by other risks and uncertainties which could cause
actual results to be significantly different from those expressed or implied by any forward-looking statements included herein.  It is not
possible to identify all of the risks, uncertainties and other factors that may affect future results.  In light of these risks and uncertainties,
the forward-looking events and circumstances discussed herein may not occur and actual results could differ materially from those
anticipated or implied in the forward-looking statements.  Forward-looking statements speak only as of the date the statement is made
and
the
Company
undertakes
no
obligation
to
update
or
revise
any
forward-looking
statements,
whether
as
a
result
of
new
information,
future events or otherwise.  Accordingly, readers of this document are cautioned not to place undue reliance on any forward-looking
statements included herein.
–
changes in general economic conditions;
–
fluctuations in interest rates and levels of mortgage
prepayments;
–
the effectiveness of risk management strategies;
–
the impact of differing levels of leverage employed;
–
liquidity of secondary markets and credit markets;
–
the availability of financing at reasonable levels and terms to
support investing on a leveraged basis;
–
the availability of new investment capital;
–
the availability of suitable qualifying investments from both
an investment return and regulatory perspective;
–
changes in legislation or regulation affecting Fannie Mae and
Freddie Mac (together, the “GSEs”) and similar federal
government agencies and related guarantees;
–
deterioration in credit quality and ratings of existing or future
issuances of GSE or Ginnie Mae Securities;
–
changes in legislation or regulation affecting exemptions for
mortgage REITs from regulation under the Investment
Company Act of 1940; and
–
increases in costs and other general competitive factors.
2

Company Summary
Proven Strategy
Experienced 
Management Team
Aligned with 
Stockholders
Overview of Capstead Mortgage Corporation
•
Founded
in
1985,
Capstead
is
the
oldest
publicly-traded
Agency
mortgage
REIT.
•
At
March
31,
2013,
we
had
a
residential
ARM
securities
portfolio
of
$13.85
billion,
supported
by
long-term
investment
capital
of
$1.59
billion
levered
8.06
times.*
•
Our
five-year
compound
annual
total
return
of
18.0%
exceeded
the
Russell
2000
Index
and
the
NAREIT
Mortgage
REIT
Index.**
•
We
invest
exclusively
in
residential
adjustable-rate
mortgage
(ARM)
securities
issued
and
guaranteed
by
Fannie
Mae,
Freddie
Mac
or
Ginnie
Mae.
Agency-guaranteed
mortgage
securities
are
considered
to
have
little,
if
any,
credit
risk.
•
Our
focus
on
short-duration
ARM
securities
augmented
with
2-year
interest
rate
swap
agreements
differentiates
us
from
our
peers
because
ARM
securities
reset
to
more
current
interest
rates
within
a
relatively
short
period
of
time.
This
allows
for
the
recovery
of
financing
spreads
diminished
during
periods
of
rising
interest
rates
and
smaller
fluctuations
in
portfolio
values
from
changes
in
interest
rates
compared
to
fixed-rate
mortgage
securities.
With
this
strategy,
Capstead
is
recognized
as
the
most
defensively-positioned
Agency
mortgage
REIT
from
an
interest
rate
risk
perspective.
•
Our
prudently
leveraged
portfolio
provides
financial
flexibility
to
manage
changing
market
conditions.
•
Our
top
four
executive
officers
have
over
85
years
of
combined
mortgage
finance
industry
experience,
including
over
80
years
at
Capstead.
•
We
are
self-managed
with
low
operating
costs
and
a
focus
on
performance-based
compensation
for
our
executive
officers.
This
structure
greatly
enhances
the
alignment
of
management
interests
with
those
of
our
stockholders.
3
*   Long-term
investment
capital
includes
stockholders’
equity
and
unsecured
borrowings,
net
of
investments
in
related
unconsolidated
affiliates.
**  Compound annual growth rate is based on cumulative total returns assuming an investment in Capstead was made March 31, 2008 and dividends were reinvested.

Market Snapshot
(dollars in thousands, except per share amounts)
Perpetual Preferred
Trust
Total Long-Term
   Common
Series A
Series B
Preferred
Investment Capital
NYSE Stock Ticker 
   CMO
CMOPRA
CMOPRB
Shares outstanding
95,532
186
16,493
Cost of preferred capital
11.44%
11.15%
8.49%
10.23%
Price as of April 25, 2013
$13.01
    $21.90
       $15.13
Book Value per common share
$13.60
Price as a multiple of 
March 31, 2013 book value
95.7%
Recorded value
$1,301,100
$2,604
$186,388
$99,978
$1,590,070
Market capitalization as of April 25, 2013
$1,242,871
$4,073
$249,539
$99,978
$1,596,461
(a)
As of March 31, 2013.  
4
(a)
(a)
(a)
(a)

Capstead’s Prudent Use of Leverage
5
**
Borrowings under repurchase arrangements divided by long-term investment capital.
Portfolio leverage ended
the first quarter of 2013 at 8.06 times long-term investment capital.  In our view, borrowing at
current levels represents an appropriate and prudent use of leverage for an agency-guaranteed ARM securities portfolio in
today’s market conditions. 
On October 30, 2012, we announced a $100 million common stock buy back program.  From the fourth quarter 2012 through
early in 2013, we repurchased a total of $42 million in common shares under this authorization.
($ in millions)
$1,114
$1,127
$1,393
$1,597
$1,590
82%
82%
80%
75%
75%
12%
12%
13%
16%
16%
9%
9%
7%
6%
6%
$
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
12/31/09
12/31/10
12/31/11
12/31/12
3/31/13
Common Stock
Preferred Stock
Trust Prefered Securities, net
6.67x
6.91x
8.15x
8.00x
8.06x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
12/31/09
12/31/10
12/31/11
12/31/12
3/31/13
$100
$189
$1,301
Common Stock
Preferred Stock
Trust Preferred Securities, net
Portfolio Leverage*
Long-Term Investment Capital

Capstead’s Proven Short-Duration Investment Strategy
6
As of March 31, 2013           
As of March 31, 2013         
Low risk agency-guaranteed residential ARM securities financed primarily with 30-90 day “repo”
borrowings, augmented with two-year interest rate swap agreements for hedging purposes.
Total: $12.82 billion
*    Based on fair market value as of the indicated balance sheet date. 
Total: $13.85 billion*
•
Most of our securities are backed by well-seasoned mortgage
loans with coupon interest rates that reset at least annually or
begin doing so after an initial fixed-rate period of five years or
less.
•
We have long-term relationships with numerous repo
counterparties.  As of March 31, 2013, we had borrowings
outstanding with 24 counterparties.
•
First quarter 2013 repo borrowing rates averaged 41 basis
points, down from 45 basis points during the fourth quarter of
2012 (a blended rate of 0.58% after considering currently-
paying interest rate swaps).
•
At March 31, 2013 we held $4.20 billion notional amount of 
currently-paying two-year term interest rate swaps requiring
fixed rate payments averaging 0.67% with average maturities of
12
months.  An additional $2.10 billion notional amount of
forward-starting swaps were held at quarter-end that will begin
requiring fixed rate payments averaging 0.45% for two-year
terms beginning on various dates between June 2013 and
January 2014.
•
The duration of our investment portfolio and related borrowings
was approximately ten months and nine months, respectively,
at March 31, 2013.  This  resulted in a net duration gap of
approximately
one
month.
Duration
is
a
measure
of
market
price sensitivity to interest rate movements.
Longer-to-Reset
ARMs
$5.94 Billion
Current-Reset
ARMs
$7.91 Billion
Borrowings with rates
effectively fixed by
Currently-Paying Interest
Rate Swaps
$4.20 Billion
(excludes $2.10 Billion in
forward-starting swaps)
Remaining
Borrowings
$8.62 Billion
Residential ARM Securities Portfolio
Repurchase Arrangements & Similar Borrowings
33%
67%
57%
43%

2013
2012
Q1
Q4
Q3
Q2
Q1
Yields on residential mortgage investments:
Cash yields
2.57%
2.60%
2.65%
2.71%
2.74%
Investment premium amortization
(0.84)
(0.84)
(0.79)
(0.67)
(0.60)
       Adjusted yields
1.73
1.76
1.86
2.04
2.14
Related borrowing rates:
Unhedged borrowing rates
0.41
0.45
0.41
0.37
0.32
Fixed swap rates
0.71
0.75
0.78
0.80
0.85
Adjusted borrowing rates
0.58
0.63
0.56
0.54
0.49
Financing spreads on residential mortgage investments
1.15
1.13
1.30
1.50
1.65
Annualized CPR
19.65
19.60
18.74
15.86
14.50
(a)
Cash yields are based on the cash component of interest income.  Investment premium amortization is determined using the interest method and incorporates
actual and anticipated future mortgage prepayments.  Both are expressed as a percentage calculated on an annualized basis on average amortized cost basis
for the indicated periods. 
(b)
Unhedged borrowing rates represent average rates on repurchase arrangements and similar borrowings.  Fixed swap rates represent the average fixed rates
on currently-paying interest rate swap agreements used to hedge short-term borrowing rates.  Adjusted borrowing rates reflect unhedged borrowing rates and
swap rates as well as differences between variable rate payments received on the Company’s currently-paying swap agreements, which typically are based on
one-month LIBOR, and unhedged borrowing rates as well as any measured hedge ineffectiveness, calculated on an annualized basis on average outstanding
balances for the indicated periods.
Financing spreads on residential mortgage investments, a non-GAAP financial measure, differs from total financing spreads, an all-inclusive GAAP
measure, that is based on all interest-earning assets and all interest-paying liabilities.  The Company believes that presenting financing spreads on
residential mortgage investments provides useful information for evaluating the performance of the Company’s portfolio.  The following reconciles
these two measures.
2013
2012
Q1
Q4
Q3
Q2
Q1
Financing spreads on residential mortgage investments
1.15%
1.13%
1.30%
1.50%
1.65%
Impact of yields on other interest-earning assets
(0.05)
(0.07)
(0.05)
(0.06)
(0.06)
Impact of borrowing rates on unsecured borrowings
and other interest-paying liabilities
(0.06)
(0.06)
(0.06)
(0.07)
(0.06)
Total financing spreads
1.04
1.00
1.19
1.37
1.52
   
Financing Spread Analysis
As of March 31, 2013 (unaudited)
7
(a)
(b)
*
*
*
Other interest-earning assets consist of overnight investments and cash collateral receivable from interest rate swap counterparties.  Other  interest-paying liabilities
consist of long-term unsecured borrowings (at an average borrowing rate of 8.49%) that the Company considers a component of its long-term investment capital and cash
collateral payable to interest rate swap counterparties.

Capstead’s Stockholder Friendly Structure
8
*
Expressed as a percentage of average long-term investment capital (LTIC). 
**
Incentive compensation is based on a 10% participation in returns on LTIC in excess of benchmark returns (greater of 10% or the average 10-year Treasury rate
plus 2.0%), capped at 50 basis points of LTIC and subject to Compensation Committee discretion.
•
Self-managed with low operating costs.
•
Our
board
of
directors
requires
management
to
hold
a
significant
amount
of
CMO
stock
based
on
a
multiple of each executive’s base salary. As of  February 25, 2013 our directors and executive officers
beneficially owned 1.8% of our common shares.
•
Pay structure is variable through compensation elements that focus on “pay for performance.”
•
Management is incented to grow the Company by raising capital when it is accretive to book value and
earnings rather than for the purpose of increasing compensation or external management fees.
•
Bottom line: our management prospers when our stockholders prosper.
*
**
Quarter Ended
March 31, 2013
Compensation-related expenses:
  Fixed:
Salaries and related deferred compensation match,
payroll taxes, insurance and other benefits
   0.23%
  Variable:
Incentive Compensation
0.09
Dividend Equivalent Rights
0.05
  54% of compensation-related
Performance Stock Awards
0.10
expenses were performance-based
Related deferred compensation match and payroll taxes
0.03
0.27
0.50
Other platform expenses
0.27
   0.77%
-
Represents the lowest platform costs
in the industry.

Key Elements of Capstead’s ARM Portfolio
As of March 31, 2013 (dollars in thousands, unaudited)
9
Fully
Average
Months
Principal
Investment
Amortized Cost Basis 
Fair Market
Net
Indexed
Net
to
Balance
Premiums
($)
%
Value
WAC*
WAC*
Margins
Roll
Current-reset ARMs:
Fannie Mae Agency Securities
$
4,939,887
$118,124
$
5,058,011
102.39
$5,232,985
2.42%
2.23%
1.70%
5.0
Freddie Mac Agency Securities
 
1,727,847
46,919
1,774,766
102.72
1,837,610
2.62
2.35
1.84
5.6
Ginnie Mae Agency Securities
 
795,542
19,500
815,042
102.45
830,846
2.44
1.68
1.51
7.2
Residential Mortgage Loans
4,757 
2
4,759  
100.04
4,823
  3.49
   2.33
    2.04
     4.5
7,468,033
184,545
7,652,578
102.47
7,906,264
2.47
2.20
1.71
5.4
Longer-to-reset ARMs:
Fannie Mae Agency Securities
 
3,010,881
121,875
3,132,756
104.05
3,165,567
2.94
2.49
1.76
43.6
Freddie Mac Agency Securities
 
1,848,105
76,592
1,924,697
104.14
1,942,119
2.96
2.56
1.84
46.1
Ginnie Mae Agency Securities
787,244
 
29,978
817,222
103.81
832,107
  2.96
   1.67
   1.51
  29.6
    
5,646,230
 
228,445
5,874,675
104.05
5,939,793
  2.95
   2.40
   1.75
   42.5
$
13,114,263 
$412,990
$13,527,253
103.15
  $13,846,057
  2.68
   2.29
   1.73
    21.3
Gross WAC (rate paid by borrowers)*
3.29
*
Net WAC, or weighted average coupon, is the weighted average interest rate of the mortgage loans underlying the indicated investments, net of servicing and other fees, as of March 31,
2013.  Net WAC is expressed as a percentage calculated on an annualized basis on the unpaid principal balance of the mortgage loans underlying these investments.  Fully indexed WAC
represents the weighted average coupon upon one or more resets using interest rate indexes and net margins, as of March 31, 2013. Gross WAC is the weighted average interest rate of the
mortgage loans underlying the indicated investments, including servicing and other fees paid by borrowers, as of March 31, 2013.
NOTE:  Excludes $8
million of fixed-rate investments.

Appendix
CAPSTEAD
10

Capstead’s First Quarter 2013 Highlights
•
Earnings of $34.9 million or $0.31
per diluted common share
•
Financing spreads on residential mortgage investments increased 2
basis points to 1.15%
•
Operating costs as a percentage of average long-term investment capital decreased 2 basis points to 0.77%
•
Book value increased $0.02 to $13.60 per common share
•
Portfolio leverage ended the quarter at 8.06 times long-term investment capital
•
Comments from our April 24, 2013 earnings press release:
“First quarter results reflect stable quarter over quarter mortgage prepayment levels on our agency-guaranteed ARM
securities portfolio as well as lower borrowing costs, which more than offset slightly lower weighted average coupons on
the
portfolio.
Lower
borrowing
costs
reflect
lower
market
rates
during
the
quarter
as
well
as
the
rollover
to
lower
rates
of
a significant portion of our currently-paying swap position.  Together, these factors contributed to a 2 basis point increase
in our financing spreads to 1.15%, with earnings remaining at $0.31 per diluted common share.  We also posted a $0.02
increase in book value to $13.60 per common share reflecting stable quarter over quarter pricing levels for agency-
guaranteed ARM securities.
“Looking forward to the rest of 2013, we are optimistic our portfolio will continue to perform well.  Mortgage
prepayment levels should remain manageable in the coming quarters
given that approximately 91% of the
mortgages underlying our current-reset ARM securities were originated prior to 2008 and carry coupon interest rates at
or below prevailing fixed mortgage rates diminishing the economic advantage, if any, of refinancing.  This should help
contain
investment
premium
amortization
costs,
which
decreased
$0.9
million
this
quarter
to
$28.4
million.
Also,
further
declines in weighted average coupons should be relatively modest
given that an increasing number of mortgage
loans underlying our current-reset ARM securities are at or near fully-indexed levels. With respect to our borrowing costs,
another $1.80
billion notional amount of our interest rate swaps with average fixed rates of 0.87% will mature over
the remainder of 2013 and have already been replaced with swaps averaging 0.45% allowing for further declines
in borrowing costs
provided market rates for short-term borrowings remain reasonable.
“We
remain
confident
in
and
focused
on
our
investment
strategy
of
managing
a
conservatively
leveraged
portfolio
of
agency-guaranteed residential ARM securities that can produce attractive risk-adjusted returns over the long term while
reducing, but not eliminating, sensitivity to changes in interest rates.”
11

Capstead’s Quarterly Income Statements
(dollars in thousands, except per share amounts) (unaudited)
12
March
December
September
June
March
2013
2012
2012
2012
2012
Interest income:
Residential mortgage investments
58,468
$          
60,948
$          
63,463
$          
65,787
$          
65,733
$          
Other
112
                   
218
                   
154
                   
176
                   
150
                   
58,580
             
61,166
             
63,617
             
65,963
             
65,883
             
Interest expense:
Repurchase arrangements and similar borrowings
(18,468)
           
(20,672)
           
(17,875)
           
(16,451)
           
(14,103)
           
Unsecured borrowings
(2,187)
              
(2,187)
              
(2,186)
              
(2,187)
              
(2,187)
              
(20,655)
           
(22,859)
           
(20,061)
           
(18,638)
           
(16,290)
           
37,925
             
38,307
             
43,556
             
47,325
             
49,593
             
Other revenue (expense):
Miscellaneous other revenue (expense)
(30)
                    
(24)
                    
9
                        
13
                      
(169)
                 
Incentive compensation
(351)
                 
(515)
                 
(781)
                 
(1,295)
              
(1,538)
              
Salaries and benefits
(1,610)
              
(1,638)
              
(1,696)
              
(1,682)
              
(1,827)
              
Other general and administrative expense
(1,081)
              
(1,111)
              
(1,115)
              
(1,091)
              
(954)
                 
(3,072)
              
(3,288)
              
(3,583)
              
(4,055)
              
(4,488)
              
Income before equity in earnings of unconsolidated affiliates
34,853
             
35,019
             
39,973
             
43,270
             
45,105
             
Equity in earnings of unconsolidated affiliates
65
                      
65
                      
64
                      
65
                      
65
                      
Net income
34,918
$          
35,084
$          
40,037
$          
43,335
$          
45,170
$          
Net income per diluted common share
$0.31
$0.31
$0.35
$0.40
$0.44
Average long-term investment capital
1,604,603
$     
1,639,014
$     
1,629,566
$     
1,544,380
$     
1,454,495
$     
Average balance of mortgage assets
13,542,932
     
13,888,637
     
13,657,286
     
12,922,725
     
12,280,065
     
Investment premium amortization
28,385
             
29,331
             
27,151
             
21,699
             
18,496
             
Average CPR*
                  19.7% 
                  19.6% 
                  18.7%  
                  15.9%  
                  14.5%  
Average financing spreads on residential mortgage investments
                  1.15   
                  1.13   
                  1.30   
                  1.50   
                  1.65   
Quarter Ended
*    The constant prepayment rate, or CPR, represents only prepayments.

Capstead’s Annual Income Statements –
Five Years Ended 2012
(dollars in thousands, except per share amounts) (unaudited)
13
December
December
December
December
December
2012
2011
2010
2009
2008
Interest income:
Residential mortgage investments
255,931
$        
243,077
$        
198,488
$        
313,676
$        
394,729
$        
Other
698
                   
301
                   
1,290
               
919
                   
5,760
               
256,629
          
243,378
          
199,778
          
314,595
          
400,489
          
Interest expense:
Repurchase arrangements and similar borrowings
(69,101)
           
(57,328)
           
(47,502)
           
(120,083)
         
(249,706)
         
Unsecured borrowings
(8,747)
              
(8,747)
              
(8,747)
              
(8,747)
              
(8,747)
              
Other
-
                         
(5)
                       
(2)
                       
-
                         
-
                         
(77,848)
           
(66,080)
           
(56,251)
           
(128,830)
         
(258,453)
         
178,781
          
177,298
          
143,527
          
185,765
          
142,036
          
Other revenue (expense):
Miscellaneous other revenue (expense)
(171)
                 
(1,023)
              
(904)
                 
(40,641)
           
(1,593)
              
Incentive compensation
(4,129)
              
(5,697)
              
(5,055)
              
(4,769)
              
(6,000)
              
Salaries and benefits
(6,843)
              
(6,701)
              
(6,097)
              
(5,655)
              
(4,978)
              
Other general and administrative expense
(4,271)
              
(3,932)
              
(4,834)
              
(5,696)
              
(3,801)
              
(15,414)
           
(17,353)
           
(16,890)
           
(56,761)
           
(16,372)
           
Income before equity in earnings of unconsolidated affiliates
163,367
          
159,945
          
126,637
          
129,004
          
125,664
          
Equity in earnings of unconsolidated affiliates
259
                   
259
                   
259
                   
259
                   
259
                   
Net income
163,626
$        
160,204
$        
126,896
$        
129,263
$        
125,923
$        
Net income per diluted common share
$1.50
$1.75
$1.52
$1.66
$1.93
Average long-term investment capital
1,567,232
$     
1,284,057
$     
1,120,647
$     
1,032,853
$     
813,428
$        
Average balance of mortgage assets
13,190,380
     
10,839,749
     
7,665,796
       
7,604,530
       
7,630,958
       
Investment premium amortization
96,677
             
68,077
             
57,634
             
29,426
             
29,336
             
Average CPR*
                  17.2%
                  16.1%
                  29.1%
                  16.6%
                  16.0% 
Average financing spreads on residential mortgage investments
                  1.38   
                  1.68    
                  1.93   
                  2.42   
                  1.67   
Year Ended
*    The constant prepayment rate, or CPR, represents only prepayments.

Capstead’s Comparative Balance Sheets
(dollars in thousands, except per share amounts)
14
(stockholders' equity and
(repurchase arrangements and similar
(based on common shares
March 31,
December 31,
December 31,
December 31,
December 31,
2013
2012
2011
2010
2009
Assets
Residential mortgage investments
13,854,405
$  
13,860,158
$  
12,264,906
$
8,515,691
$  
8,081,050
$  
Commercial loan investments
-
                         
-
                         
-
                       
-
                      
10,053
          
Cash collateral receivable from interest rate swap counterparties
40,233
            
49,972
            
48,505
           
35,289
          
30,485
          
Interest rate swap agreements at fair value
114
                   
169
                   
617
                
9,597
            
1,758
            
Cash and cash equivalents
471,510
          
425,445
          
426,717
        
359,590
       
409,623
       
Receivables and other assets
120,725
          
130,402
          
100,760
        
76,078
          
92,817
          
Investments in unconsolidated affiliates
3,117
               
3,117
               
3,117
             
3,117
            
3,117
            
14,490,104
$  
14,469,263
$  
12,844,622
$
8,999,362
$  
8,628,903
$  
Liabilities
Repurchase arrangements and similar borrowings
12,821,519
$  
12,784,238
$  
11,352,444
$
7,792,743
$  
7,435,256
$  
Cash collateral payable to interest rate swap counterparties
  -
  -
  -
9,024
            
  -
Interest rate swap agreements at fair value
24,763
            
32,868
            
31,348
           
16,337
          
9,218
            
Unsecured borrowings
103,095
          
103,095
          
103,095
        
103,095
       
103,095
       
Common stock dividend payable
30,349
            
29,512
            
38,184
           
27,401
          
37,432
          
Accounts payable and accrued expenses
20,286
            
22,425
            
26,844
           
23,337
          
29,961
          
13,000,012
    
12,972,138
    
11,551,915
   
7,971,937
    
7,614,962
    
Stockholders' Equity
Perpetual preferred stock
188,992
          
188,992
          
184,514
        
179,323
       
179,333
       
Common stock
1,006,982
       
1,014,223
       
903,653
        
674,202
       
661,724
       
Accumulated other comprehensive income
294,118
          
293,910
          
204,540
        
173,900
       
172,884
       
1,490,092
       
1,497,125
       
1,292,707
     
1,027,425
    
1,013,941
    
14,490,104
$  
14,469,263
$  
12,844,622
$
8,999,362
$  
8,628,903
$  
Book value per common share
outstanding and calculated assuming liquidation preferences
for the Series A and B preferred stock) (unaudited)
13.60
$13.58
$12.52
$12.02
$11.99
Long-term investment capital
unsecured borrowings, net of investments in related
unconsolidated affiliates) (unaudited)
$1,590,070
$1,597,103
$1,392,685
$1,127,403
$1,113,919
Portfolio leverage
borrowings divided by long-term investment capital) (unaudited)
8.06:1
8.00:1
8.15:1
6.91:1
6.67:1

Experienced Management Team
15
Over 85 years of combined mortgage finance industry experience, including over 80 years at Capstead.
Andrew F.
Jacobs
–
President and Chief Executive Officer, Director
–
Has served as president and chief executive officer since 2003 and has held various executive positions at Capstead since 1988
–
Certified Public Accountant (“CPA”), member of the Executive Board of the National Association of Real Estate Investment Trusts
(“NAREIT”), chairman of NAREIT’s Council of Mortgage REITs, member of the Executive Committee of the Chancellors Council of
the University of Texas System, the Executive Council of the Real Estate Finance and Investment Center at the University of Texas
at Austin, the American Institute of Certified Public Accountants (“AICPA”), and the Financial Executives International (“FEI”)
Phillip A. Reinsch
–
Executive Vice President and Chief Financial Officer, Secretary
–
Has
held
various
financial
accounting
and
reporting
positions
at
Capstead
since
1993
–
Formerly employed by Ernst & Young LLP as an audit senior manager focusing on mortgage banking and asset securitization
–
CPA, Member AICPA, FEI
Robert A.
Spears
–
Executive Vice
President, Director of Residential Mortgage Investments
–
Has served in asset and liability management positions at Capstead since 1994
–
Formerly Vice President of secondary marketing with NationsBanc Mortgage Corporation
Michael W.
Brown
–
Senior
Vice
President, Asset
and
Liability
Management, Treasurer
–
Has served in asset and liability management positions at Capstead since 1994
–
MBA, Southern Methodist University, Dallas, Texas