Capstead Mortgage Corp., Dallas, has reported a net loss from continuing operations of $2.35 million ($0.12 per share) for the first quarter, compared with net income of $2.54 million ($0.13 per share) a year earlier.Capstead attributed the loss to a payment of preferred-share dividends totaling $5.06 million. Earnings improved from those of the fourth quarter, but financing spreads narrowed as a result of higher borrowing rates, the company said. "As a result, first-quarter earnings, while improved, still fell short of quarterly preferred dividend requirements, resulting in a loss per common share," Capstead reported. The company said its mortgage securities portfolio grew by more than $400 million to approximately $4.8 billion in the first quarter, as acquisitions of adjustable-rate mortgage securities totaled $832 million, more than offsetting $403 million of portfolio runoff. Capstead can be found on the Web at http://www.capstead.com.

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