April 28, 1987

Capstead undergoes a growth spurt. A second public offering of 2.7 million shares of common stock raises $65.9 million of capital.

December 1, 1988

Lomas Mortgage Securities Fund, Inc., a closed-end mutual fund, is formed. This new venture is listed on the New York Stock Exchange with an initial public offering of 28.8 million shares of common stock raising $321 million of capital.

July 1989

Exit Lomas Mortgage USA from the mortgage origination business, ending Capstead's source of mortgage loans. Enter Capstead's newly formed mortgage loan conduit for acquiring jumbo mortgage loans.

September 1989

A vote of confidence. Capstead closes its first whole loan repurchase agreement with Wall Street investment banking firms, successfully replacing commercial paper and bank lines of credit.

November 6, 1989

Two companies that have made a name for themselves make a new name. Lomas Mortgage Corporation acquires Strategic Mortgage Investments, Inc. of California and is renamed Capstead Mortgage Corporation. This strategic move, accomplished through the issue of 5.5 million shares of $1.60 Cumulative Convertible Preferred Stock, Series A, increases stockholders' equity by $76.7 million and total assets by $274.1 million.

1990

With the development of a Local Area Network and Jumbo Acquisition Management System, efficiency increases significantly.

January 1991

Capstead makes company history with a record-breaking monthly total of $85.2 million of mortgage loans purchased.

January 1, 1991

Making us proud. Kay Bailey Hutchison, now a U.S. Senator, is elected
Texas State Treasurer while serving on Capstead's Board of Directors.

January 11, 1991

Capstead issues its first AAA-rated private pass-through security for $178 million.

February 19, 1991

Having demonstrated faithful performance and become an investor's best friend, Lomas Mortgage Securities Fund, Inc. is renamed Tyler Cabot Mortgage Securities Fund, Inc.

Spring 1991

"I have personally never worked so hard during my life, but it was a great experience." So one employee describes the first of many community service projects, during which a run-down old house sheltering several elderly alcoholics was thoroughly overhauled inside and out.

August 1991

Talk about going over big! Capstead exceeds $2 billion in jumbo mortgage loans purchased since inception.

February 4, 1992

A third public offering of 2.0 million shares funds additional growth with net proceeds of $61.6 million.

April 1992

Capstead exceeds the $5 billion mark in jumbo mortgage loans purchased since inception.

October 23-29, 1992

Capstead captures positive media attention with Dallas Business Journal article headlined "Capstead Rises on Falling Interest Rates," and National Mortgage News article proclaiming "Capstead One of Largest Jumbo Purchasers."

December 2, 1992

Stockholders' equity doubles as Capstead acquires Tyler Cabot, issuing 29.4 million shares of $1.26 Cumulative Convertible Preferred Stock, Series B.

December 3, 1992

In Wall Street Journal and Dallas Morning News ads, Capstead announces its acquisition of Tyler Cabot and doubling of equity.

1992

Capstead wraps up the year having purchased $5.5 billion in mortgage loans, issued $4.5 billion in CMOs and issued $1.2 billion in AAA-rated mortgage pass-through securities.

February 26, 1993

Business as usual for a Capstead executive becomes a scramble for safety as terrorists detonate a bomb in the underground parking area of the World Trade Center in New York City.

March 1, 1993

Capstead Mortgage Corporation ventures into servicing and master servicing of mortgage loans, forming Capstead Inc. to conduct these operations.

June 7, 1993

National Mortgage News acknowledges Capstead's new direction with an article headlined "Capstead to Start Servicing Loans."

Dear Capstead,

I feel so compelled today to include a note along with this house
payment-to commend your company on its mortgage business practices ... prompt and clear information. You run such a great company! Thank you!

Sincerely
Mrs. Melanie Wheelwright (from actual customer letter)

July 21, 1993

From service on Capstead's Board of Directors, John H. Dalton leaves to serve his country as Secretary of the Navy.

September 30, 1993

Capstead's termination of management agreement is reported in Dallas Morning News article headlined "Capstead Will End Ties with Lomas Financial."

September 30, 1993
Capstead goes from zero to a $1.3 billion mortgage servicing portfolio in six short months.

1993

Significant technological enhancements for the year include the imaging of mortgage loan files by optical scanner and the introduction of an interactive communication system. The system allows homeowners to call and receive voice data responses through prompts or have a customer service representative greet them by name with online account information.

1st Quarter 1994

Off to a great start. First quarter mortgage servicing operation shows a profit.

April 23, 1994

More than 50 Capstead employees lace up their walking shoes to raise over $10,000 for the March of Dimes at the 15K walk around White Rock Lake in Dallas.

May 20, 1994

We've never done it that way before - but maybe we should. The second biannual "Get Out of the Rut" emphasizes the need for innovative thinking as a springboard to forward-thinking corporate strategies.

June 1994

Capstead employees raise over $2,000 in much needed funds for Junior Achievement in the Disco Bowl-A-Thon, as well as devote many hours sharing their expertise with students in the Dallas Public Schools.

August 24-27, 1994

New and old officers join together to focus on future technology, the current economy, creative thinking and team building at Capstead's first management conference.

September 23, 1994

Capstead's move from 2001 Bryan Tower to Cityplace is announced in a January 6, 1994 Dallas Morning News article headlined "Cityplace Lures Capstead from Downtown Site."

September 30, 1994

Impressive gains continue as Capstead's servicing portfolio grows to $12 billion in mortgage loans.

October 14, 1994

Capstead Inc. closes its first servicing line with a Wall Street investment banking firm.

April 1995

Capstead Inc. originates its first mortgage loan.

September 5, 1995

Looking forward to continued success. Capstead celebrates its tenth anniversary of operations.

October 30, 1995

A three-for-two common stock split through a 50 percent stock dividend becomes effective for Capstead Mortgage Corporation.

December 31, 1995

Like a well-oiled profit-making machine, Capstead's servicing portfolio increases to $25.6 billion in mortgage loans.

Wow! Capstead reports a compound annual return of 17.8% for ten years. The company is proud to commemorate such outstanding investment growth in this Annual Report.