Dynex Capital reports non-GAAP Q4 EPS 3c , consensus 20c

Comprehensive income to common shareholders of $56.6 M or $1.17 per common share, for the fourth quarter of 2022 resulted in the increase of 50c in the Company’s book value per common share to $14.73 as of December 31. The fair value of the Company’s MBS portfolio benefited from spread tightening during the quarter while the active management of its interest rate hedges mitigated the impact of an inverted yield curve on the Company’s fourth quarter earnings. Partially offsetting the resulting increase of $55.2M in the fair value of its investment and hedging portfolios, the Company’s net interest income and TBA drop income declined. As the Federal Reserve continued its attempt to combat inflation by increasing the Federal Funds rate in 2022, these increases resulted in the Company’s cost of funds increasing 132 basis points in the fourth quarter compared to the third quarter of 2022.Book value per common share of $14.73 as of December 31, 2022 "We believe our performance this decade, which started in 2020, illustrates that the Dynex team has the experience and discipline to manage through even the most volatile and challenging cycles, and we expect to continue generating long-term returns for our shareholders," stated Byron Boston, the Company’s Chief Executive Officer. "We continue to believe that a flexible business model and our experienced team have positioned Dynex to deliver a solid cash dividend and total return experience to our shareholders. We enter 2023 with a highly liquid balance sheet and are prepared to be opportunistic investors this year."