Capstead Mortgage (CMO) 10-Q 2013 Q3 Quarterly report

EXHIBIT 12

CAPSTEAD MORTGAGE CORPORATION

COMPUTATION OF RATIO OF NET INCOME TO FIXED CHARGES AND RATIO OF NET

INCOME TO COMBINED FIXED CHARGES AND PREFERRED STOCK ITEMS

(In thousands, except ratios)

(Unaudited)

Computation of ratio of net income to fixed charges:

	Nine Months Ended September 30,		Year Ended December 31
	2013		2012		2011		2010		2009		2008
Fixed charges	$	57,536	$	77,848	$	66,080	$	56,251	$	128,830	$	258,453
Fixed charges	$	57,536	$	77,848	$	66,080	$	56,251	$	128,830	$	258,453
Net income		89,514		163,626		160,204		126,896		129,263		125,923
	$	147,050	$	241,474	$	226,284	$	183,147	$	258,093	$	384,376
Ratio of net income to fixed charges	2.56:1		3.10:1		3.42:1		3.26:1		2.00:1		1.49:1

Computation of ratio of net income to combined fixed charges and preferred stock items:

	Nine Months Ended September 30,		Year Ended December 31
	2013		2012		2011		2010		2009		2008
Fixed charges	$	57,536	$	77,848	$	66,080	$	56,251	$	128,830	$	258,453
Preferred stock items:
Redemption preference premiums*		19,924		–		–		–		–		–
Dividends		14,325		21,021		20,369		20,233		20,239		20,251
Combined fixed charges and  preferred stock items	$	91,785	$	98,869	$	86,449	$	76,484	$	149,069	$	278,704
Fixed charges	$	57,536	$	77,848	$	66,080	$	56,251	$	128,830	$	258,453
Net income		89,514		163,626		160,204		126,896		129,263		125,923
	$	147,050	$	241,474	$	226,284	$	183,147	$	258,093	$	384,376
Ratio of net income to combined  fixed charges and preferred  stock items	1.60:1		2.44:1		2.62:1		2.39:1		1.73:1		1.38:1

* Capstead’s Series A and B preferred shares were redeemed on June 13, 2013.  See NOTE 9 to the consolidated financial statements (included under Item 1 of this report).  The ratio of net income to combined fixed charges and preferred stock dividends excluding the redemption preference premiums was 2.05:1 for the nine months ended September 30, 2013.