Dynex Capital, Inc. (NYSE: DX) has reported its first quarter 2024 financial results, showcasing various key metrics and changes from the previous period.
Financial Performance Summary: Total economic return of $0.28 per common share, or 2.1% of beginning book value Book value per common share of $13.20 as of March 31, 2024 Comprehensive income of $0.35 per common share and net income of $0.65 per common share Dividends declared of $0.39 per common share for the first quarter of 2024 Raised equity capital of $86.8 million during the first quarter through at-the-market common stock issuances Liquidity of $577.1 million as of March 31, 2024 * Leverage, including to-be-announced ("TBA") securities at cost, was 8.1 times shareholders' equity as of March 31, 2024
Changes in Financial Position: Net changes in fair value resulted in a total net change of $37.3 million, contributing to comprehensive income to common shareholders of $20,927 Net proceeds from stock issuance totaled $90,533, while common dividends declared amounted to $23,663
Mortgage-Backed Securities (MBS) Investments: The company added over $1.0 billion of agency mortgage TBA securities when spreads widened Agency RMBS accounted for 96.9% of the total MBS portfolio as of March 31, 2024, amounting to $7,991,308 * Significant changes were observed in the par value and fair value of various 30-year fixed-rate RMBS coupons from December 31, 2023, to March 31, 2024
Repurchase Agreement Borrowings: Total repurchase agreement borrowings outstanding were $5,284,708 as of March 31, 2024, with a weighted average rate of 5.46% The remaining term to maturity for these borrowings ranged from less than 30 days to 91 to 180 days
Interest Income and Expense: Net interest expense for the first quarter of 2024 was $3,192, compared to $2,277 in the previous quarter The effective yield/cost of funds for agency RMBS was 4.33%/5.51%, indicating a slight increase in the cost of funds * Total interest income for the first quarter of 2024 amounted to $71,525
Hedging Portfolio: Comprehensive income included unrealized gains of $165.5 million and realized losses of $(25.7) million from interest rate hedges in the first quarter of 2024 The company's remaining estimated net deferred tax hedge gains from its interest rate hedging portfolio was $830.2 million as of March 31, 2024
Non-GAAP Financial Measures: The company's Earnings Available for Distribution (EAD) to common shareholders was calculated at $(17,684) for the first quarter of 2024, a change from $(13,852) in the previous quarter The adjusted net interest spread was (1.01)%, compared to (1.06)% in the previous quarter
Following these announcements, the company's shares moved -0.8%, and are now trading at a price of $11.49. Check out the company's full 8-K submission here.
