Capstead Mortgage Corp (CMO) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2018

Exhibit 99.1


CONTACT:	Lindsey Crabbe	FOR IMMEDIATE RELEASE
	(214) 874-2339

CAPSTEAD MORTGAGE CORPORATION

ANNOUNCES FOURTH QUARTER 2018 RESULTS

DALLAS – January 30, 2019 – Capstead Mortgage Corporation (“Capstead” or the “Company”) (NYSE:

CMO) today announced financial results for the quarter ended December 31, 2018.

Fourth Quarter 2018 Summary

•	Generated earnings of $9.0 million or $0.05 per diluted common share

•	Paid common dividend of $0.08 per common share

•	Repurchased 5.8 million shares of common stock for $43.3 million, generating book value accretion of $0.14 per share

•	Book value per common share declined 0.9% or $0.09 to $9.39 per common share, which together with the fourth quarter dividend generated an economic return of -0.1%

•	Agency-guaranteed residential adjustable-rate mortgage (ARM) portfolio and leverage ended the quarter at $11.97 billion and 9.49 times long-term investment capital, respectively

About Capstead

Capstead is a self-managed real estate investment trust, or REIT, for federal income tax purposes. The Company earns income from investing in a leveraged portfolio of residential adjustable-rate mortgage pass-through securities, referred to as ARM securities, issued and guaranteed by government-sponsored enterprises, either Fannie Mae or Freddie Mac, or by an agency of the federal government, Ginnie Mae.

Fourth Quarter Earnings and Related Discussion

Capstead reported net income of $9.0 million or $0.05 per diluted common share for the quarter ended December 31, 2018. This compares to net income of $8.7 million or $0.04 per diluted common share for the quarter ended September 30, 2018. The Company paid a fourth quarter 2018 dividend of $0.08 per common share on January 18, 2019.

Portfolio yields averaged 2.34% during the fourth quarter of 2018, an increase of 26 basis points from the 2.08% reported for the third quarter. Cash yields (yields on the portfolio before investment premium amortization) increased 14 basis points to average 3.21% during the fourth quarter, benefiting from mortgage loans underlying the portfolio resetting to higher rates based on higher prevailing six- and 12-month interest rate indices and higher coupon interest rates on recent acquisitions. As of December 31, 2018, current-reset ARMs (52% of the Company’s ARM securities portfolio) will reset in rate on average in approximately six months, allowing the Company’s cash yields to continue benefiting from higher prevailing interest rates in future

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The following information was filed by Capstead Mortgage Corp (CMO) on Wednesday, January 30, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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