Net income of Capstead Mortgage Corp. climbed in the first quarter to $37.4 million, up 39.5% from the level a year earlier, the company reported.

Ronn Lytle, chief executive, said improved interest spreads on mortgage securities, a larger investment portfolio, and improved mortgage servicing results contributed to the strong results.

Mr. Lytle said about half of the gain for the quarter came from its servicing operation.

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