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