Dynex Capital(US:DX)2026-01-26 13:01Financial Performance - Total economic return of $1.29 per common share for Q4 2025, and $2.75 per common share for the full year 2025, representing 10.2% and 21.6% of beginning book value respectively [3] - Comprehensive income of $1.22 per common share for Q4 2025 and $2.85 per common share for the full year 2025 [3] - As of December 31, 2025, the comprehensive income to common shareholders was $354,303 thousand, reflecting a total net change in fair value of $258,122 thousand [13] - The company reported a comprehensive income to common shareholders of $189,606,000 for the three months ended December 31, 2025, compared to $162,527,000 for the previous quarter [31] - Earnings available for distribution (EAD) to common shareholders was $34,399,000 for the three months ended December 31, 2025, up from $33,599,000 in the prior quarter [31] Book Value and Dividends - Book value per common share increased to $13.45 as of December 31, 2025, up from $12.67 as of September 30, 2025 [3] - Dividends declared of $0.51 per common share for Q4 2025 and $2.00 for the full year 2025 [3] Capital and Liquidity - Raised $393 million in equity capital during Q4 2025, totaling $1.2 billion for the year [3] - Liquidity of $1.4 billion as of December 31, 2025 [3] Asset Management - Purchased $3 billion in Agency RMBS and $284 million in Agency CMBS during Q4 2025, totaling $8.2 billion and $1.2 billion for the year respectively [3] - Average balance of interest-earning assets increased by 58% during 2025 [3] - The total Agency RMBS fair value as of December 31, 2025, was $18,122,483 thousand, with an unrealized gain of $22,571 thousand [15] - The total Agency CMBS fair value as of December 31, 2025, was $1,218,343 thousand, with an unrealized gain of $5,236 thousand [15] Interest Income and Expenses - The net interest income for the fourth quarter of 2025 was $177,036 thousand, compared to $149,679 thousand in the prior quarter [18] - The economic net interest income for the fourth quarter of 2025 was $51,082 thousand, with an effective yield of 0.99% [18] - The average balance of Agency RMBS for the fourth quarter of 2025 was $12,712,611 thousand, yielding an effective interest rate of 4.98% [18] - The total interest income from Agency CMBS for the fourth quarter of 2025 was $9,992 thousand, with an effective yield of 4.27% [18] - The net interest spread increased to 0.75% from 0.46% quarter-over-quarter [31] Leverage and Borrowings - Leverage was 7.3 times shareholders' equity as of December 31, 2025 [3] - The total balance of repurchase agreement borrowings outstanding as of December 31, 2025, was $13,904,231 thousand, with a weighted average interest rate of 4.10% [17] Derivatives and Hedging - The company recognized a net gain on derivatives of $73,781,000 for the three months ended December 31, 2025, compared to a loss of $10,694,000 in the previous quarter [31] - The projected amortization of net deferred tax hedge gains is estimated at $558,232,000 over the next several fiscal years, with $95,972,000 expected in fiscal year 2026 [25] - The notional amount of interest rate swaps increased to $9,685,000,000 from $7,860,000,000 quarter-over-quarter [31] - The average fixed pay rate for 3-5 year interest rate swaps remained stable at 3.42% for both periods [22] Unrealized Gains - The company experienced an unrealized gain on U.S. Treasury futures of $50,038,000 for the quarter ended December 31, 2025, compared to a gain of $41,174,000 in the previous quarter [31]