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CAPSTEAD MORTGAGE CORPORATION ANNOUNCES INCREASED EARNINGS

 DALLAS, Oct. 14 /PRNewswire/ -- Capstead Mortgage Corporation (NYSE: CMO) reported record earnings for the quarter ended September 30, 1993 of $23,640,000, or 92 cents per common share (90 cents per fully diluted share), up from $13,234,000, or 87 cents per common share (84 cents 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 $1.184 billion, compared to $952 million in the second quarter of 1993 and $1.177 billion in the third quarter of 1992. Purchases in the fourth quarter are expected to increase 20 percent from the third quarter to more than $1.4 billion."
 Mr. Lytle went on to announce, "The rise in prepayments on mortgage loans in the third quarter resulted in a loss of $2.9 million on the Company's investments 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 fourth quarter. Offsetting these losses will be continued gains from securitization activities. We expect net income to be higher in the fourth quarter than in the third quarter."
 "We are pleased that the Company is now fully self-managed and 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."
 Capstead Mortgage Corporation invests in long-term, single-family residential mortgage loans offering investors the opportunity to participate in the income generated from servicing and investing in such mortgage loans, the issuance of collateralized mortgage obligations, and other portfolio strategies.
 CAPSTEAD MORTGAGE CORPORATOIN
 Financial Highlights
 (in thousands, except per share amounts)
 Quarter Ended Nine Months Ended
 September 30 September 30
 1993 1992 1993 1992
 Interest Income $ 149,683 $ 133,329 $ 452,334 $ 358,100
 Interest Expense (119,688) (110,692) (366,077) (296,099)
 Other Revenues 12,229 1,095 27,950 2,108
 Other Expenses (18,584) (10,498) (44,408) (27,114)
 Net Income $ 23,640 $ 13,234 $ 69,799 $ 36,995
 Net Income
 per Share:
 Primary $.92 $.87 $2.71 $2.50
 Fully Diluted $.90 $.84 $2.64 $2.39
 Average Number
 of Shares:
 Primary 15,181 14,733 15,112 14,215
 Fully Diluted 15,903 15,728 15,883 15,469
 -0- 10/14/93
 /CONTACT: Ronn K. Lytle, 214-999-2301, or Andrew F. Jacobs, 214-999-2350, both of Capstead Mortgage/
 (CMO)


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

LG -- NY071 -- 2349 10/14/93 14:54 EDT
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Publication:PR Newswire
Date:Oct 14, 1993
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