 CAPSTEAD
Information as of March 31, 2013 with
Additional Analysis Reflecting Recent
Perpetual Preferred Stock Issuance
and the Pending Redemption of
Existing Perpetual Preferred Shares
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. |
 Cost of
As Adjusted for Issuance of
March 31,
Preferred
Series E Preferred and Redemption
2013
Capital
of Series A and B Preferred
Long-term investment capital:
Trust preferred securities, net
$
99,978
8.49%
$
99,978
8.49%
Existing perpetual preferred stock:
Series A
2,604
11.44%
-
Series B
186,388
11.15%
-
(a)
188,992
11.15%
-
New Series E perpetual preferred stock
-
164,395
7.76%
(b)
Total mezzanine capital
288,970
10.23%
264,373
8.03%
(c)
Common equity capital
1,301,100
1,283,928
(d)
$1,590,070
$
1,548,301
Improvements in Capstead’s Capital Structure
(dollars in thousands) (unaudited)
4
On May 8, 2013 we priced a $150 million perpetual preferred stock issuance with a
7.50% coupon and announced our intent to redeem our existing perpetual
preferred stock using the proceeds of this offering and cash on hand.
Upon completion of the redemption by mid-June 2013, we will have significantly lowered our
effective cost of preferred capital to the benefit of future earnings.
(a)
The
redemption
of
our
Series
A
and
B
preferred
shares
will
be
completed
by
mid-June.
It
is
anticipated
that
nearly
all
of
the
Series
A
shares
will
convert
into
common
shares
because
it
is
economically
advantageous
to
do
so
and
that
none
of
the
Series
B
shares
will
convert
because
it
is
not
advantageous
to
do
so.
Redemption
costs
(approximately
$206
million
for
the
Series
B
preferred
shares)
will
be
funded
with
proceeds
from
our
new
7.50%
Series
E
preferred
shares
(see
(b)
below)
and
cash
on
hand.
(b)
Reflects
the
May
8,
2013
issuance
of
6
million
shares
of
our
7.50%
Series
E
Cumulative
Redeemable
Preferred
Stock
(Liquidation
Preference:
$25.00
per
share)
(NYSE
Symbol:
CMOPRE),
for
$150
million
in
gross
proceeds
before
estimated
underwriting
and
offering
expenses
and
the
subsequent
exercise
of
$20
million
of
the
underwriters’
overallotment
option
(800,000
shares).
(c)
Note
that
between
October
2015
and
September
2016
the
effective
cost
of
our
trust
preferred
securities
will
decline
from
8.49%
to
7.56%
as
these
securities
enter
20-year
floating
rate
periods
that
we
have
hedged
using
interest
rate
swap
agreements.
This
will
further
lower
the
effective
cost
of
our
total
mezzanine
capital
to
7.68%.
(d)
As
adjusted
common
equity
capital
reflects
the
expected
payment
of
aggregate
Series
B
redemption
preferences
over
recorded
amounts
of
$19.8
million
($12.50
redemption
price
per
preferred
share
less
$11.30
recorded
amount
per
preferred
share)
and
the
conversion
of
all
Series
A
preferred
shares
into
common
shares.
Book
value
per
common
share
will
be
reduced
by
approximately
2%
because
of
the
redemption
preferences
paid
on
our
existing
preferred
shares,
dilution
from
the
conversion
of
Series
A
preferred
shares
into
common
shares,
and
the
establishment
of
a
new
redemption
preference
on
our
new
Series
E
preferred
shares. |
 Capstead’s Quarterly Income Statements
(dollars in thousands, except per share amounts) (unaudited)
5
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
Less cash dividends declared on preferred shares *
(5,270)
(5,270)
(5,270)
(5,268)
(5,213)
Net income available to common stockholders
29,648
$
29,814
$
34,767
$
38,067
$
39,957
$
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 constant prepayment rate, or CPR (represents
only prepayments)
Average financing spreads on residential mortgage investments
1.50 Quarter Ended
1.15
19.7%
1.13
19.6%
15.9%
1.65
14.5%
1.30
18.7% *
With
the
issuance
of
our
new
7.50%
Series
E
preferred
shares,
and
subsequent
redemption
of
our
existing
preferred
shares,
cash
dividends
paid
on
preferred
shares
will
be
reduced
to
a
quarterly
run-rate
of
$3.2
million.
Second
quarter
2013
net
income
available
to
common
stockholders
will
reflect
a
short-term
preferred
capital
“overhang”
associated
with
the
timing
difference
between
the
issuance
of
our
Series
E
preferred
shares
and
the
mid-June
redemption
of
our
existing
preferred
shares.
Second
quarter
net
income
available
to
common
stockholders
will
also
reflect
a
one-time
charge
of
$19.8
million
associated
with
the
expected
payment
of
Series
B
redemption
preferences. |
 33%
67%
43%
57%
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. Residential ARM Securities
Portfolio Repurchase Arrangements & Similar Borrowings
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 |
 *
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 $8
million of fixed-rate investments.
Fully
Average
Months
Principal
Investment
Amortized Cost Basis
Fair Market
Net
Indexed
Net
to
Balance
Premiums
($)
%
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
Key Elements of Capstead’s ARM Portfolio
As of March 31, 2013 (dollars in thousands, unaudited)
7 |
 2013
2012
Q1
Q4
Q3
Q2
Q1
Yields on residential mortgage
investments:
(a)
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:
(b)
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
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)
8
(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.
*
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.
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. |
 Capstead’s Stockholder Friendly Structure
9
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.
*
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. |
 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 Annual Income Statements –
Five Years Ended 2012
(dollars in thousands, except per share amounts) (unaudited)
12
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 constant prepayment rate of CPR (represents only
prepayments)
Average financing spreads on residential mortgage investments
1.68
16.1% Year Ended
16.6%
1.67
16.0%
1.93
29.1%
2.42
1.38
17.2% |
 Capstead’s Comparative Balance Sheets
(dollars in thousands, except per share amounts)
13
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
$
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
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
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
14
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 |