EXHIBIT 11 CAPSTEAD MORTGAGE CORPORATION AND SUBSIDIARIES COMPUTATION OF PER SHARE EARNINGS 1996 1995 1994 ------------- ------------- ------------- PRIMARY: Average number of common shares outstanding 38,317,000 34,631,000 34,316,000 Incremental shares calculated using the Treasury Stock method 960,000 48,000 60,000 ------------ ------------ ------------ 39,277,000 34,679,000 34,376,000 ============ ============ ============ Net income $127,228,000 $ 77,359,000 $ 85,579,000 Less cash dividends paid on convertible preferred stock: Series A ($1.60 paid per share) (804,000) (939,000) (1,042,000) Series B ($1.26 paid per share) (35,552,000) (38,395,000) (37,834,000) Net income available to common stockholders $ 90,872,000 $ 38,025,000 $ 46,703,000 ============ ============ ============ Primary net income per share $2.31 $1.09 $1.36 FULLY DILUTED: Average number of common shares outstanding 38,317,000 34,631,000 34,316,000 Assumed conversion of convertible preferred stock: Series A 1,048,000 1,205,000 1,344,000 Series B 21,176,000 * * Incremental shares calculated using the Treasury Stock method 1,272,000 394,000 60,000 ------------ ------------ ------------ 61,813,000 36,230,000 35,720,000 ============ ============ ============ Net income $127,228,000 $ 77,359,000 $ 85,579,000 Less cash dividends paid on Series B Preferred Stock - (38,395,000) (37,834,000) ------------ ------------ ------------ Net income $127,228,000 $ 38,964,000 $ 47,745,000 ============ ============ ============ Fully diluted net income per share $2.06 $1.07 $1.34 * The Series B Preferred Stock is not considered convertible for purposes of calculating fully diluted net income per share as it was antidilutive.