Capstead Mortgage (CMO) 10-Q 2014 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
	2014		2013		2012		2011		2010		2009
Fixed charges	$	53,414	$	75,104	$	77,848	$	66,080	$	56,251	$	128,830
Fixed charges	$	53,414	$	75,104	$	77,848	$	66,080	$	56,251	$	128,830
Net income		107,346		126,487		163,626		160,204		126,896		129,263
	$	160,760	$	201,591	$	241,474	$	226,284	$	183,147	$	258,093
Ratio of net income to fixed charges	3.01:1		2.68:1		3.10:1		3.42:1		3.26:1		2.00:1

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

	Nine Months Ended September 30,		Year Ended December 31
	2014		2013		2012		2011		2010		2009
Fixed charges	$	53,414	$	75,104	$	77,848	$	66,080	$	56,251	$	128,830
Preferred stock items:
Redemption preference premiums*		–		19,924		–		–		–		–
Dividends		10,216		17,536		21,021		20,369		20,233		20,239
Combined fixed charges and  preferred stock items	$	63,630	$	112,564	$	98,869	$	86,449	$	76,484	$	149,069
Fixed charges	$	53,414	$	75,104	$	77,848	$	66,080	$	56,251	$	128,830
Net income		107,346		126,487		163,626		160,204		126,896		129,263
	$	160,760	$	201,591	$	241,474	$	226,284	$	183,147	$	258,093
Ratio of net income to combined fixed charges and preferred stock items	2.53:1		1.79:1		2.44:1		2.62:1		2.39:1		1.73:1

* Capstead’s Series A and B preferred shares were redeemed in June 2013.  The ratio of net income to combined fixed charges and preferred stock dividends excluding the redemption preference premiums was 2.18:1 for the year ended December 31, 2013.