EXHIBIT 11
CAPSTEAD MORTGAGE CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
-------------------------- -------------------------
1997 1996 1997 1996
----------- ------------- ----------- ------------
PRIMARY:
Average number of common
shares outstanding 52,765 38,319 49,431 36,872
Incremental shares calculated
using the Treasury Stock
method 1,190 883 1,109 856
------- ------- -------- --------
53,955 39,202 50,540 37,728
======= ======= ======== ========
Net income $41,867 $32,428 $118,926 $ 91,429
Less cash dividends paid on
convertible preferred stock:
Series A ($0.40 per share) (166) (195) (519) (616)
Series B ($0.315 per share) (5,907) (8,643) (19,415) (27,909)
------- ------- -------- --------
Net income available to common
stockholders $35,794 $23,590 $ 98,992 $ 62,904
======= ======= ======== ========
Primary net income per share $0.66 $0.60 $1.96 $1.67
======= ======= ======== ========
FULLY DILUTED:
Average number of common
shares outstanding 52,765 38,319 49,431 36,872
Assumed conversion of
convertible preferred stock:
Series A 865 1,032 904 1,070
Series B 14,208 21,514 15,431 22,016
Incremental shares calculated
using the Treasury Stock
method 1,190 892 1,214 1,173
------- ------- -------- --------
69,028 61,757 66,980 61,131
======= ======= ======== ========
Net income available to common
stockholders $41,867 $32,428 $118,926 $ 91,429
======= ======= ======== ========
Fully diluted net income per share $0.61 $0.53 $1.78 $1.50
======= ======= ======== ========