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CAPSTEAD MORTGAGE CORPORATION ANNOUNCES INCREASED EARNINGS

 DALLAS, July 15 /PRNewswire/ -- Capstead Mortgage Corporation (NYSE: CMO) reported record earnings for the quarter ended June 30, 1993 of $23,255,000, or $.90 per common share ($.88 per fully diluted share), up from $12,553,000, or $.83 per common share ($.80 per fully diluted share), for the same quarter in 1992.
 In commenting on the results, Ronn K. Lytle, chairman and chief executive officer, said, "Net income benefited from growth in mortgage assets, favorable borrowing costs and gains from securitization activities. Purchases of first mortgage loans were $952 million compared to $688 million in the first quarter of 1993 and $1.596 billion in the second quarter of 1992. The recent decline in interest rates should result in increased volume in the third quarter."
 Lytle went on to announce, "The rise in prepayments on mortgage loans in the second quarter resulted in a loss of $2.4 million on the company's investment in collateralized mortgage obligations (CMOs). At the current level of prepayments, the company expects to incur a loss on its investment in CMOs in the third quarter. Offsetting these losses will be expected growth in the company's investment in AAA-rated private mortgage pass-through securities and gains from securitization activities. We also expect the recently initiated servicing operations to make a positive contribution in the third quarter and overall net income in the third quarter should be higher than in the second quarter. We remain confident that employing the company's excess capital in mortgage securities investments and servicing will result in higher earnings and dividends in the years ahead."
 The comparative results of operations are as follows (in thousands, except per share amounts):
 CAPSTEAD MORTGAGE CORPORATION
 Periods Ended Quarter Six Months
 June 30, 1993 1992 1993 1992
 Interest Income $ 153,129 $ 123,976 $ 302,697 $ 224,768
 Interest Expense (124,947) (102,622) (246,389) (185,406)
 Other Revenues 6,082 (100) 15,693 1,012
 Other Expenses (11,009) (8,701) (25,841) (16,614)
 Net Income $ 23,255 $ 12,553 $ 46,160 $ 23,760
 Net Income per share:
 Primary $ .90 $ .83 $ 1.78 $ 1.64
 Fully Diluted $ .88 $ .80 $ 1.74 $ 1.56
 Average Number of
 Shares:
 Primary 15,116 14,558 15,076 13,869
 Fully Diluted 15,873 15,720 15,872 15,246
 Capstead Mortgage Corporation invests in long-term, single-family residential mortgages offering investors the opportunity to participate in income generated from servicing, investments, and the issuance of CMOs and other portfolio strategies.
 -0- 7/15/93
 /CONTACT: Ronn K. Lytle, 214-999-2301 or Andrew F. Jacobs, 214-999-2350, both of Capstead Mortgage Corporation/
 (CMO)


CO: Capstead Mortgage Corporation ST: Texas IN: FIN SU: ERN

LD-MG -- NY090 -- 2179 07/15/93 16:24 EDT
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Publication:PR Newswire
Date:Jul 15, 1993
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