UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-09819 | --- | --- | |------------------------------------------------------------------------------|--------------------------------------------| | (Exact name of registr ...

Dynex Capital, Inc. (NYSE:DX) Q3 2022 Earnings Conference Call October 24, 2022 10:00 AM ET Company Participants Alison Griffin - Vice President, Investor Relations Byron Boston - Chief Executive Officer and Co-Chief Investment Officer Rob Colligan - EVP and Chief Financial Officer Smriti Popenoe - President and Co-Chief Investment Officer Conference Call Participants Doug Harter - Credit Suisse Bose George - KBW Trevor Cranston - JMP Securities Jason Stewart - Jones Trading Eric Hagan - BTIG Christopher No ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-09819 DYNEX CAPITAL, INC. (Exact name of registrant as specified in its charter) Virginia 52-1549373 (State or other jurisdiction of incorporation or organization) (I.R.S. Emp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-09819 DYNEX CAPITAL, INC. (Exact name of registrant as specified in its charter) Virginia 52-1549373 (State or other jurisdiction of incorporation or organization) (I.R.S. Em ...

Dynex Capital, Inc. (NYSE:DX) Q1 2022 Earnings Conference Call April 27, 2022 10:00 AM ET Company Participants Alison Griffin - VP, IR Byron Boston - CEO, Co-CIO & Director Stephen Benedetti - EVP, CFO, COO & Secretary Smriti Popenoe - President & Co-CIO Conference Call Participants Douglas Harter - Crédit Suisse Trevor Cranston - JMP Securities Eric Hagen - BTIG Bose George - KBW Christopher Nolan - Ladenburg Thalmann & Co. Jason Stewart - JonesTrading Institutional Services Operator Thank you for standing ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-09819 DYNEX CAPITAL, INC. (Exact name of registrant as specified in its charter) Virginia 52-1549373 (State or other jurisdiction of incorporation or organization) (I.R.S. Employe ...

Dynex Capital, Inc. (NYSE:DX) Q4 2021 Earnings Conference Call February 3, 2022 10:00 AM ET Company Participants Alison Griffin – Vice President-Investor Relations Byron Boston – Chief Executive Officer and Co-Chief Investment Officer Steve Benedetti – Executive Vice President, Chief Financial Officer and Chief Operating Officer Smriti Popenoe – President and Co-Chief Investment Officer Conference Call Participants Eric Hagan – BTIG Josh Bolton – Credit Suisse Trevor Cranston – JMP Securities Mike Smith – K ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 1-9819 DYNEX CAPITAL, INC. (Exact name of registrant as specified in its charter) Virginia 52-1549373 (State or other jurisdiction of incorporation or organization) (I.R.S. E ...

Dynex Capital, Inc. (NYSE:DX) Q3 2021 Earnings Conference Call October 27, 2021 10:00 AM ET Company Participants Alison Griffin - VP, IR Byron Boston - CEO & Co-Chief Information Officer Steve Benedetti - EVP, CFO & COO Smriti Popenoe - President & Co-Chief Investment Officer Conference Call Participants John Kolz - Credit Suisse Trevor Cranston - JMP Securities Mike Smith - KBW Eric Hagen - BTIG Jason Stewart - Jones Trading Christopher Nolan - Ladenburg Thalmann Operator Ladies and gentlemen, thank you fo ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited consolidated balance sheets, income statements, and cash flow statements for the period ended June 30, 2021 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $3.47 billion, driven by an increase in mortgage-backed securities and supported by a rise in shareholders' equity | Financial Metric | June 30, 2021 (unaudited, $s in thousands) | December 31, 2020 ($s in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$3,474,295** | **$3,095,435** | | Mortgage-backed securities, at fair value | $2,995,502 | $2,596,255 | | **Total Liabilities** | **$2,718,666** | **$2,461,982** | | Repurchase agreements | $2,321,043 | $2,437,163 | | Payable for purchases pending settlement | $350,854 | $5 | | **Total Shareholders' Equity** | **$755,629** | **$633,453** | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The company reported a net loss of $45.7 million for Q2 2021, a significant reversal from the prior year due to losses on derivative instruments | Metric ($s in thousands except per share data) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $12,118 | $15,003 | $24,377 | $32,724 | | (Loss) gain on derivative instruments, net | $(52,940) | $(8,563) | $54,861 | $(204,130) | | Net (loss) income to common shareholders | $(45,682) | $191,585 | $66,701 | $85,351 | | Comprehensive (loss) income to common shareholders | $(31,412) | $26,538 | $15,815 | $(6,724) | | Net (loss) income per common share-basic | $(1.43) | $8.31 | $2.27 | $3.71 | | Dividends declared per common share | $0.39 | $0.43 | $0.78 | $0.88 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash increased by $124.4 million in the first half of 2021, with positive cash flows from both operating and investing activities | Cash Flow Activity ($s in thousands) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $67,854 | $83,469 | | Net cash provided by investing activities | $74,578 | $1,448,425 | | Net cash used in financing activities | $(18,069) | $(1,459,337) | | **Net increase in cash** | **$124,363** | **$72,557** | [Notes to the Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies, MBS portfolio composition, and extensive use of derivatives for hedging purposes - The company is an internally managed mortgage REIT that primarily invests on a leveraged basis in Agency mortgage-backed securities (MBS), including residential (RMBS), commercial (CMBS), and interest-only (IO) securities[19](index=19&type=chunk) - Effective January 1, 2021, the company elected the fair value option for all newly purchased MBS, with changes in fair value reported in net income[40](index=40&type=chunk) | MBS Portfolio Summary (June 30, 2021) | Fair Value ($s in thousands) | | :--- | :--- | | MBS designated as AFS | $1,947,316 | | MBS measured at fair value through net income | $1,048,186 | | **Total MBS** | **$2,995,502** | | Repurchase Agreements (June 30, 2021) | Amount ($s in thousands) | | :--- | :--- | | Balance Outstanding | $2,321,043 | | Weighted Average Rate | 0.21% | | WAVG Original Term to Maturity (days) | 106 | - The company uses U.S. Treasury futures, options on U.S. Treasury futures, swaptions, and TBA securities to mitigate interest rate risk on its book value[50](index=50&type=chunk)[90](index=90&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the impact of a flattening yield curve and wider MBS spreads on the company's financial performance and hedging strategy [Executive Overview](index=28&type=section&id=Executive%20Overview) A flattening yield curve and wider credit spreads led to a decline in book value, prompting strategic portfolio adjustments during the quarter - Market conditions in Q2 2021 were characterized by a **flattening yield curve and widening credit spreads** for Agency RMBS, driven by discussions of potential tapering by the Federal Reserve[126](index=126&type=chunk) - The company's **book value declined by $(1.32) per common share** during Q2, primarily due to hedge losses of $(93.8) million as the yield curve flattened[133](index=133&type=chunk) - Strategically, the company reduced its investment portfolio early in the quarter when spreads were tight, then re-leveraged later by investing **$68.3 million from ATM issuances** into lower coupon Agency RMBS[131](index=131&type=chunk) - The company's outlook is for rates to remain range-bound in the near term, but for the **10-year UST rate to move higher** over the next 6-12 months[136](index=136&type=chunk) [Financial Condition](index=32&type=section&id=Financial%20Condition) The company's $5.4 billion investment portfolio is heavily concentrated in Agency RMBS and is approximately 86% hedged against interest rate risk | Investment Portfolio Composition | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Agency RMBS | 89% | 84% | | Agency CMBS | 4% | 7% | | CMBS IO | 7% | 9% | - The Agency RMBS portfolio, including TBAs, totaled **$4.8 billion in fair value**, with a focus on lower coupon (2.0% and 2.5%) securities to mitigate prepayment risk[148](index=148&type=chunk)[149](index=149&type=chunk) - The CMBS IO portfolio is primarily composed of investment-grade securities, with the largest underlying property type exposures being **Retail (28.1%) and Office (21.7%)**[155](index=155&type=chunk)[160](index=160&type=chunk) - As of June 30, 2021, approximately **86% of the MBS portfolio** (including TBAs) was hedged using instruments like U.S. Treasury futures and interest rate swaptions, an increase from 62% at year-end 2020[162](index=162&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Derivative losses drove a comprehensive loss in Q2 2021, though adjusted net interest income increased due to favorable TBA dollar roll economics | Metric ($s in thousands) | Q2 2021 | Q1 2021 | | :--- | :--- | :--- | | Net interest income | $12,118 | $12,259 | | (Loss) gain on derivative instruments, net | $(52,940) | $107,801 | | Comprehensive (loss) income to common shareholders | $(31,412) | $47,227 | - **Adjusted net interest income increased** in Q2 2021 due to a 29% increase in the average investment in TBA securities, which benefited from favorable implied financing costs[174](index=174&type=chunk) | Metric ($s in thousands) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | | Net interest income | $24,377 | $32,724 | | Gain (loss) on derivative instruments, net | $54,861 | $(204,130) | | Realized gain on sale of investments, net | $6,705 | $277,882 | [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) Liquid assets increased to $517.9 million and leverage rose to 6.7x, with the company remaining in full compliance with all debt covenants - **Liquid assets**, including unrestricted cash and unencumbered Agency securities, **increased to $517.9 million** as of June 30, 2021, from $415.3 million as of December 31, 2020[202](index=202&type=chunk) - **Leverage** (total liabilities plus TBA cost basis to shareholders' equity) **increased to 6.7x** as of June 30, 2021, compared to 6.3x at year-end 2020[202](index=202&type=chunk) - The company maintained repurchase agreements with **23 counterparties** and had no more than 5% of its equity at risk with any single counterparty as of June 30, 2021[205](index=205&type=chunk) - The company was in **full compliance with all financial and operating covenants** in its repurchase agreements as of June 30, 2021[205](index=205&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company details its exposure to interest rate, spread, prepayment, and credit risks, along with its corresponding mitigation strategies [Interest Rate Risk](index=51&type=section&id=Interest%20Rate%20Risk) The company's portfolio is positioned for a steeper yield curve, with a 50 basis point rate increase projected to decrease equity by 0.5% | Scenario (Instantaneous Parallel Shift) | Projected % Change in Shareholders' Equity (June 30, 2021) | | :--- | :--- | | -100 Basis Points | -13.5% | | -50 Basis Points | -2.4% | | +50 Basis Points | -0.5% | | +100 Basis Points | -1.8% | [Spread Risk](index=53&type=section&id=Spread%20Risk) A 10 basis point widening in market spreads is projected to decrease common equity by approximately 5.2%, a risk managed via asset selection | Scenario (Change in Market Spreads) | Projected % Change in Common Equity (June 30, 2021) | | :--- | :--- | | +10 Basis Points | -5.2% | | -10 Basis Points | +5.2% | [Prepayment, Credit, and Liquidity Risk](index=54&type=section&id=Prepayment,%20Credit,%20and%20Liquidity%20Risk) The company mitigates risks by focusing on low-coupon RMBS, Agency-guaranteed securities, and maintaining diverse counterparty relationships - To manage prepayment risk, approximately **85% of the company's capital in RMBS** is invested in securities with a coupon of 2.5% or lower[236](index=236&type=chunk) - Credit risk is mitigated by investing in Agency MBS with government-sponsored entity guarantees and **primarily AAA-rated senior tranches** of CMBS IO[238](index=238&type=chunk) - Liquidity risk from repurchase agreements and TBA contracts is managed by maintaining **diverse counterparty relationships** and ensuring sufficient liquidity[240](index=240&type=chunk)[242](index=242&type=chunk) [Item 4. Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal controls over financial reporting were effective as of the end of the quarter - Management concluded that **disclosure controls and procedures were effective** as of June 30, 2021[245](index=245&type=chunk) - **No material changes** were made to the internal control over financial reporting during the three months ended June 30, 2021[246](index=246&type=chunk) [PART II. OTHER INFORMATION](index=56&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material developments in ongoing litigation and has not recorded any contingent liability - There were **no material developments** in the ongoing Receiver Litigation during the quarter[248](index=248&type=chunk) - Management has determined that the **likelihood of loss is not probable**, and no contingent liability has been recorded[248](index=248&type=chunk) [Item 1A. Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported to the risk factors disclosed in the company's 2020 Annual Report on Form 10-K - **No material changes** from the risk factors discussed in the 2020 Form 10-K were reported[249](index=249&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has an active stock repurchase program but made no repurchases during the quarter under the publicly announced plan - The company has a stock repurchase authorization of up to **$40 million for common stock** and **$40 million for Series C Preferred Stock**, valid through March 31, 2022[250](index=250&type=chunk) - **No shares were repurchased** under the plan during the three months ended June 30, 2021[252](index=252&type=chunk)[254](index=254&type=chunk) [Item 6. Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including officer certifications and governance document amendments