Dynex Capital, Inc. Reports First Quarter 2013 Diluted EPS of $0.34 and Book Value Per Common Share of $10.50
Dynex Capital, Inc. (NYSE: DX) reported net income available to common
shareholders of $18.4 million, or $0.34 per diluted common share for the
first quarter of 2013 versus $18.3 million, or $0.34 per diluted common
share, for the fourth quarter of 2012 and $16.5 million, or $0.33 per
diluted common share, for the first quarter of 2012.
Management Remarks
Mr. Thomas Akin, Chairman and Chief Executive Officer, commented, "Our
first quarter results were excellent. Our book value per common share
increased by $0.20 even as interest rates increased during the quarter.
Net interest income increased to $22.5 million for this quarter from
$21.1 million in the prior quarter. Return on average common equity
remained the same as the fourth quarter of 2012 at 13.0%. Our
performance was driven significantly by our focus over the past twelve
months on CMBS investments, which now represent 61% of our invested
capital. The Series B preferred stock we issued in April 2013 helps to
diversify our capital base while lowering our average cost of equity
capital. We now have fully invested the proceeds of this issuance at
accretive returns to our shareholders. We believe that our portfolio is
well positioned in this low-rate and uncertain environment."
Quarterly Highlights
($ in thousands, except per share amounts)
|
|
1Q2013
|
|
4Q2012
|
|
1Q2012
|
Net interest income
|
|
$
|
22,526
|
|
|
$
|
21,145
|
|
|
$
|
19,147
|
|
Gain on sale of investments, net
|
|
$
|
1,391
|
|
|
$
|
2,044
|
|
|
$
|
351
|
|
General and administrative expenses
|
|
$
|
(3,808
|
)
|
|
$
|
(3,501
|
)
|
|
$
|
(3,121
|
)
|
Net income to common shareholders
|
|
$
|
18,381
|
|
|
$
|
18,330
|
|
|
$
|
16,476
|
|
Earnings per common share
|
|
$
|
0.34
|
|
|
$
|
0.34
|
|
|
$
|
0.33
|
|
Dividend per common share
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
|
$
|
0.28
|
|
Return on average common equity (annualized)
|
|
13.0
|
%
|
|
13.0
|
%
|
|
14.7
|
%
|
Interest earnings assets, end of period
|
|
$
|
4,531,342
|
|
|
$
|
4,175,662
|
|
|
$
|
3,276,170
|
|
Average interest earning assets
|
|
$
|
4,098,681
|
|
|
$
|
4,117,527
|
|
|
$
|
2,771,938
|
|
Average interest bearing liabilities
|
|
$
|
(3,641,654
|
)
|
|
$
|
(3,655,229
|
)
|
|
$
|
(2,398,228
|
)
|
RMBS/single-family capital allocation, end of period
|
|
$
|
233,870
|
|
|
$
|
219,766
|
|
|
$
|
228,665
|
|
CMBS/commercial capital allocation, end of period
|
|
$
|
362,693
|
|
|
$
|
361,264
|
|
|
$
|
239,874
|
|
Book value per common share, end of period
|
|
$
|
10.50
|
|
|
$
|
10.30
|
|
|
$
|
9.62
|
|
Net interest spread
|
|
1.89
|
%
|
|
1.93
|
%
|
|
2.41
|
%
|
Portfolio CPR (excluding CMBS IO)
|
|
19.3
|
%
|
|
19.0
|
%
|
|
15.4
|
%
|
Debt to shareholders' equity ratio, end of period
|
|
6.3x
|
|
5.9x
|
|
5.4x
|
|
|
|
|
|
|
|
Conference Call
As previously announced, the Company's quarterly conference call to
discuss the first quarter results is 11:00 a.m. ET on May 2, 2013.
Interested investors may access the call by dialing 1-888-317-6016 or by
accessing the webcast, the link for which is provided under “Investor
Relations/IR Highlights” on our website (www.dynexcapital.com).
A slide presentation will accompany the webcast and will also be
available one hour prior to the call at the same location on our website.
Earnings Summary
Net interest income increased to $22.5 million for the first quarter of
2013 from $21.1 million for the fourth quarter of 2012 due to lower
Agency RMBS premium amortization and higher prepayment penalty income
received on CMBS IO investments.
Average interest earning investments decreased slightly to $4,098.7
million for the first quarter of 2013 versus $4,117.5 million for the
fourth quarter of 2012. Net interest spread for the first quarter of
2013 was 1.89% and is the difference between the yield on the Company's
interest-earning investment portfolio of 3.04% and the cost of funds of
1.15%. For the fourth quarter of 2012, net interest spread of 1.93%
consisted of the yield on the Company's interest-earning investments of
3.04% less the cost of funds of 1.11%. For the first quarter of 2012,
the net interest spread of 2.41% consisted of the yield on the Company's
interest-earning investments of 3.58% less the cost of funds of 1.17%.
The net interest spread declined in the first quarter of 2013 compared
to the fourth quarter of 2012 primarily due to an increase in the cost
of funds during the quarter related to $250 million in forward starting
interest rate swaps that were entered into during 2012 and which became
effective during the first quarter of 2013. The net interest spread
declined for the first quarter of 2013 versus the first quarter of 2012
due primarily to the addition of lower yielding Hybrid ARMs and CMBS IO
during the last twelve months and to a lesser extent from interest rate
resets on ARMs.
During the first quarter of 2013, the Company sold investments in CMBS
IO with a notional balance of $377.0 million and CMBS with a par balance
of $31.0 million for net gains of $0.4 million and $1.0 million,
respectively. General and administrative expenses were $3.8 million in
the first quarter of 2013, or 0.61% of average shareholders' equity,
versus $3.5 million, or 0.56% of average shareholders' equity, in the
fourth quarter of 2012. General and administrative expenses increased
for the first quarter of 2013 as a percentage of average shareholders'
equity primarily due to seasonal factors related to accounting and
auditing fees and compensation and benefits expense.
Portfolio Summary
The Company's investment portfolio was $4,531.3 million at March 31,
2013 versus $4,175.7 million at December 31, 2012. The Company's Agency
MBS investments were $3,848.4 million at March 31, 2013 versus $3,492.7
million at December 31, 2012. The Company's non-Agency MBS investments
were $617.3 million at March 31, 2013 versus $611.3 million at
December 31, 2012. Agency MBS as a percentage of the Company's
investment portfolio was 85% at March 31, 2013 compared to 84% at
December 31, 2012. During the first quarter of 2013 the Company
purchased $636.0 million in MBS investments.
Agency MBS Investments
The Company's Agency RMBS investments consist of ARMs and Hybrid ARMs
and have a weighted average months to coupon reset of 54 months. The
Company's Agency CMBS and CMBS IO investments consist of fixed rate
securities collateralized by multifamily loans and have a weighted
average maturity of 93 months. Premium amortization on Agency RMBS was
$8.1 million, or 0.32% of the average amortized cost of Agency RMBS for
the first quarter of 2013 versus $9.5 million, or 0.36% of the average
amortized cost for Agency RMBS for the fourth quarter of 2012. The
following table presents the Company's Agency MBS portfolio by category
and certain other information as of and for the three months ended
March 31, 2013:
|
|
|
|
|
|
|
|
|
As of March 31, 2013
|
|
|
1Q2013
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(notional for
|
|
Net Premium
|
|
Amortized
|
|
|
|
WAVG
|
|
|
WAVG Yield
|
($ in thousands)
|
|
CMBS IO)
|
|
(Discount)
|
|
Cost
|
|
Fair Value
|
|
Coupon
|
|
|
(2)
|
RMBS
|
|
$
|
2,732,173
|
|
|
$
|
158,205
|
|
|
$
|
2,890,378
|
|
|
$
|
2,895,021
|
|
|
3.56
|
%
|
|
|
2.04
|
%
|
CMBS
|
|
306,677
|
|
|
23,108
|
|
|
329,785
|
|
|
352,024
|
|
|
5.18
|
%
|
|
|
3.60
|
%
|
CMBS IO
|
|
10,873,160
|
|
|
576,161
|
|
|
576,161
|
|
|
601,389
|
|
|
1.02
|
%
|
|
|
4.59
|
%
|
Total (1) |
|
$
|
3,038,850
|
|
|
$
|
757,474
|
|
|
$
|
3,796,324
|
|
|
$
|
3,848,434
|
|
|
|
|
|
2.60
|
%
|
(1) Total principal balance excludes notional amount of CMBS
IO.
(2) Weighted average yield is based on weighted
average amortized cost for the quarter.
The following table summarizes average yield and financing costs for the
Company's Agency MBS investments for the periods presented:
|
|
|
|
|
|
|
($ in thousands)
|
|
1Q2013
|
|
4Q2012
|
|
1Q2012
|
Weighted average annualized yield for the period
|
|
2.60
|
%
|
|
2.62
|
%
|
|
2.98
|
%
|
Weighted average annualized cost of funds including interest rate
swaps for the period
|
|
(0.93
|
)%
|
|
(0.92
|
)%
|
|
(0.91
|
)%
|
Net interest spread for the period
|
|
1.67
|
%
|
|
1.70
|
%
|
|
2.07
|
%
|
Average balance of investments for the period
|
|
$
|
3,456,841
|
|
|
$
|
3,492,814
|
|
|
$
|
2,179,787
|
|
Average balance of financing for the period
|
|
$
|
(3,128,324
|
)
|
|
$
|
(3,167,800
|
)
|
|
$
|
(1,911,423
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents the weighted average of constant prepayment
rates ("CPRs") for the Company's Agency MBS for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
1Q2013
|
|
4Q2012
|
|
3Q2012
|
|
2Q2012
|
RMBS
|
|
24.8
|
%
|
|
24.3
|
%
|
|
23.4
|
%
|
|
20.8
|
%
|
CMBS
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
Total weighted average (1) |
|
22.0
|
%
|
|
21.5
|
%
|
|
20.9
|
%
|
|
18.3
|
%
|
(1) CPRs for CMBS IO are not calculated and reported. If
CPRs for CMBS IO were included, the total weighted averages above would
be lower.
The following table presents the weighted average coupon by weighted
average months-to-reset ("MTR") for the variable-rate portion of our
Agency RMBS based on par value as of March 31, 2013 and December 31,
2012:
|
|
|
|
|
|
|
|
|
March 31, 2013
|
|
December 31, 2012
|
|
|
|
|
WAVG
|
|
|
|
WAVG
|
($ in thousands)
|
|
Par Value
|
|
Coupon
|
|
Par Value
|
|
Coupon
|
0-12 MTR
|
|
$
|
488,356
|
|
|
3.53
|
%
|
|
$
|
523,711
|
|
|
3.94
|
%
|
13-24 MTR
|
|
224,005
|
|
|
3.98
|
%
|
|
105,372
|
|
|
4.41
|
%
|
25-36 MTR
|
|
286,418
|
|
|
3.70
|
%
|
|
194,814
|
|
|
3.82
|
%
|
37-60 MTR
|
|
512,505
|
|
|
3.96
|
%
|
|
471,159
|
|
|
4.02
|
%
|
61-84 MTR
|
|
549,347
|
|
|
3.24
|
%
|
|
620,099
|
|
|
3.28
|
%
|
Over 84 MTR
|
|
651,893
|
|
|
3.36
|
%
|
|
490,759
|
|
|
3.40
|
%
|
|
|
$
|
2,712,524
|
|
|
3.57
|
%
|
|
$
|
2,405,914
|
|
|
3.69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Agency MBS Investments
The following table presents the Company's non-Agency MBS portfolio by
category and certain other information as of and for the three months
ended March 31, 2013:
|
|
|
|
|
|
|
|
|
As of March 31, 2013
|
|
|
1Q2013
|
|
|
Principal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(notional for
|
|
Net Premium
|
|
Amortized
|
|
|
|
WAVG
|
|
|
WAVG Yield
|
($ in thousands)
|
|
CMBS IO)
|
|
(Discount)
|
|
Cost
|
|
Fair Value
|
|
Coupon
|
|
|
(2)
|
RMBS
|
|
$
|
10,053
|
|
|
$
|
(758
|
)
|
|
$
|
9,295
|
|
|
$
|
9,580
|
|
|
4.20
|
%
|
|
|
5.61%
|
CMBS
|
|
472,650
|
|
|
(16,685
|
)
|
|
455,965
|
|
|
496,275
|
|
|
5.40
|
%
|
|
|
5.55%
|
CMBS IO
|
|
2,385,979
|
|
|
104,930
|
|
|
104,930
|
|
|
111,406
|
|
|
0.93
|
%
|
|
|
4.68%
|
Total (1) |
|
$
|
482,703
|
|
|
$
|
87,487
|
|
|
$
|
570,190
|
|
|
$
|
617,261
|
|
|
|
|
|
5.39%
|
(1) Total principal balance excludes notional amount of CMBS
IO.
(2) Weighted average yield is based on weighted
average amortized cost for the quarter.
The following table summarizes average yield and financing costs for the
Company's non-Agency MBS investments for the periods presented:
|
|
|
|
|
|
|
($ in thousands)
|
|
1Q2013
|
|
4Q2012
|
|
1Q2012
|
Weighted average annualized yield for the period
|
|
5.39
|
%
|
|
5.47
|
%
|
|
6.49
|
%
|
Weighted average annualized cost of funds including interest rate
swaps for the period
|
|
(2.58
|
)%
|
|
(2.52
|
)%
|
|
(2.52
|
)%
|
Net interest spread for the period
|
|
2.81
|
%
|
|
2.95
|
%
|
|
3.97
|
%
|
Average balance of investments for the period
|
|
$
|
572,312
|
|
|
$
|
548,153
|
|
|
$
|
421,981
|
|
Average balance of financing for the period
|
|
$
|
(473,177
|
)
|
|
$
|
(443,288
|
)
|
|
$
|
(366,590
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information related to the credit ratings for the Company's non-Agency
MBS as of March 31, 2013 is as follows:
|
|
|
|
|
|
|
Fair Value
|
|
Weighted average % of total
|
($ in thousands)
|
|
RMBS
|
|
CMBS
|
|
CMBS IO
|
|
AAA
|
|
$
|
2,712
|
|
|
$
|
153,348
|
|
|
$
|
111,406
|
|
|
43.3
|
%
|
AA
|
|
343
|
|
|
60,429
|
|
|
—
|
|
|
9.9
|
%
|
A
|
|
167
|
|
|
239,413
|
|
|
—
|
|
|
38.8
|
%
|
Below A or not rated
|
|
6,358
|
|
|
43,085
|
|
|
—
|
|
|
8.0
|
%
|
|
|
$
|
9,580
|
|
|
$
|
496,275
|
|
|
$
|
111,406
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securitized Mortgage Loans
Securitized mortgage loans had an amortized cost basis, net of reserves,
of $64.8 million and a principal balance of $65.6 million with $26.9
million principal in commercial mortgage loans and $38.7 million
principal in single-family mortgage loans at March 31, 2013. Seriously
delinquent loans (loans 60+ days past due) totaled $4.2 million as of
March 31, 2013 versus $3.4 million at December 31, 2012 and $15.2
million as of March 31, 2012. The allowance for loan losses for the
Company's securitized mortgage loan portfolio has decreased to $0.3
million at March 31, 2013 from $0.4 million at December 31, 2012 due to
charge-offs of $0.4 million offset by additional provisions of $0.3
million.
Hedging Activities
As of March 31, 2013, the Company had a notional total of $1.4 billion
in pay-fixed interest rate swaps with a weighted average rate of 1.54%
and a weighted average remaining maturity of 39 months. Of this amount,
$25.0 million with a pay-fixed rate of 1.70% are forward-starting swaps.
Additionally, $27.0 million of the Company's $1.4 billion of interest
rate swaps are considered trading instruments and have a weighted
average rate of 2.88% and weighted average remaining maturity of 47
months and are intended to offset market value changes of Agency CMBS
with a par value at March 31, 2013 of $25.8 million which are also
designated as trading instruments.
Equity Summary
Shareholders' equity was $633.3 million at March 31, 2013, versus $616.7
million at December 31, 2012. Book value per common share was $10.50 at
March 31, 2013 compared to $10.30 at December 31, 2012. Net income of
$19.6 million for the quarter ended March 31, 2013 exceeded the $17.1
million in preferred and common stock dividends declared as the Company
utilized a portion of its tax net operating loss carryforwards to offset
its distribution requirement.
The following table summarizes the allocation of the Company's
shareholders' equity as of March 31, 2013 and the net interest income
contribution for the quarters indicated to each component of the
Company's balance sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Associated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing(1)/
|
|
|
|
|
|
1Q2013 Net
|
|
4Q2012 Net
|
|
|
Asset
|
|
Liability
|
|
Allocated
|
|
% of
|
|
Interest
|
|
Interest
|
|
|
Carrying
|
|
Carrying
|
|
Shareholders'
|
|
Shareholders'
|
|
Income
|
|
Income
|
($ in thousands)
|
|
Basis
|
|
Basis
|
|
Equity
|
|
Equity
|
|
Contribution
|
|
Contribution
|
Agency MBS
|
|
$
|
3,848,434
|
|
|
$
|
3,397,273
|
|
|
$
|
451,161
|
|
|
71.2
|
%
|
|
$
|
16,863
|
|
|
$
|
15,570
|
|
Non-Agency MBS
|
|
617,261
|
|
|
499,642
|
|
|
117,619
|
|
|
18.6
|
%
|
|
4,861
|
|
|
4,656
|
|
Securitized mortgage loans (2) |
|
64,825
|
|
|
37,864
|
|
|
26,961
|
|
|
4.3
|
%
|
|
522
|
|
|
877
|
|
Other investments (2) |
|
822
|
|
|
—
|
|
|
822
|
|
|
0.1
|
%
|
|
19
|
|
|
20
|
|
Derivative instruments(3) |
|
—
|
|
|
37,687
|
|
|
(37,687
|
)
|
|
(6.0
|
)%
|
|
—
|
|
|
—
|
|
Cash and cash equivalents
|
|
44,129
|
|
|
—
|
|
|
44,129
|
|
|
7.0
|
%
|
|
—
|
|
|
—
|
|
Other assets/other liabilities
|
|
52,642
|
|
|
22,349
|
|
|
30,293
|
|
|
4.8
|
%
|
|
—
|
|
|
—
|
|
|
|
$
|
4,628,113
|
|
|
$
|
3,994,815
|
|
|
$
|
633,298
|
|
|
100.0
|
%
|
|
$
|
22,265
|
|
|
$
|
21,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Associated financing for investments includes repurchase
agreements and securitization financing issued to third parties (which
is presented on the Company's balance sheet as “non-recourse
collateralized financing”). Associated financing for hedging
instruments represents the fair value of the interest rate swap
agreements in a liability position.
(2) Net interest income
contribution amount is after provision for loan losses.
(3) Net
interest expense from derivative instruments designated as hedges of
repurchase agreement financing is included within net interest income
contribution amounts for each respective investment category.
Company Description
Dynex Capital, Inc. is an internally managed real estate investment
trust, or REIT, which invests in mortgage assets on a leveraged basis.
The Company is actively investing in Agency and non-Agency RMBS and
CMBS. The Company also has investments in securitized single-family
residential and commercial mortgage loans originated by the Company from
1992 to 1998. Additional information about Dynex Capital, Inc. is
available at www.dynexcapital.com.
Note: This release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. The
words “believe,” “expect,” “forecast,” “anticipate,” “estimate,”
“project,” “plan,” and similar expressions identify forward-looking
statements that are inherently subject to risks and uncertainties, some
of which cannot be predicted or quantified. Forward-looking statements
in this release include, without limitation, statements regarding future
interest rates, our views on expected characteristics of future
investment environments and risks posed by our investment portfolio, our
future investment strategies, our future leverage levels and financing
strategies, and the expected performance of our investment portfolio and
certain of our investments. The Company's actual results and timing of
certain events could differ materially from those projected in or
contemplated by the forward-looking statements as a result of unforeseen
external factors. These factors may include, but are not limited to,
changes in general economic and market conditions, including volatility
in the credit markets which impacts asset prices and the cost and
availability of financing, defaults by borrowers, availability of
suitable reinvestment opportunities, variability in investment portfolio
cash flows, fluctuations in interest rates, fluctuations in property
capitalization rates and values of commercial real estate, defaults by
third-party servicers, prepayments of investment portfolio assets, other
general competitive factors, uncertainty around government policy, the
impact of regulatory changes, including the Emergency Economic
Stabilization Act of 2008 and the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010, the full impacts of which are unknown
at this time, and another ownership change under Section 382 that
further impacts the use of our tax net operating loss carryforward. For
additional information on risk factors that could affect the Company's
forward-looking statements, see the Company's Annual Report on Form 10-K
for the year ended December 31, 2012, and other reports filed with and
furnished to the Securities and Exchange Commission.
|
|
|
|
|
DYNEX CAPITAL, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(amounts in thousands except share and per share data)
|
|
|
|
|
|
|
|
March 31, 2013
|
|
December 31, 2012
|
ASSETS
|
|
(unaudited)
|
|
|
Mortgage-backed securities, at fair value (including pledged of
$4,127,459)
|
|
$
|
4,465,695
|
|
|
$
|
4,103,981
|
|
Securitized mortgage loans, net
|
|
64,825
|
|
|
70,823
|
|
Other investments, net
|
|
822
|
|
|
858
|
|
|
|
4,531,342
|
|
|
4,175,662
|
|
Cash and cash equivalents
|
|
44,129
|
|
|
55,809
|
|
Principal receivable on investments
|
|
18,615
|
|
|
17,008
|
|
Accrued interest receivable
|
|
24,920
|
|
|
23,073
|
|
Other assets, net
|
|
9,107
|
|
|
8,677
|
|
Total assets
|
|
$
|
4,628,113
|
|
|
$
|
4,280,229
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Repurchase agreements
|
|
$
|
3,708,255
|
|
|
$
|
3,564,128
|
|
Payable for securities pending settlement
|
|
198,051
|
|
|
—
|
|
Non-recourse collateralized financing
|
|
28,473
|
|
|
30,504
|
|
Derivative liabilities
|
|
37,687
|
|
|
42,537
|
|
Accrued interest payable
|
|
2,873
|
|
|
2,895
|
|
Accrued dividends payable
|
|
16,934
|
|
|
16,770
|
|
Other liabilities
|
|
2,542
|
|
|
6,685
|
|
Total liabilities
|
|
3,994,815
|
|
|
3,663,519
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
Preferred stock, par value $.01 per share, 8.5% Series A Cumulative
Redeemable; 8,000,000 shares authorized; 2,300,000 shares issued and
outstanding, respectively
|
|
55,407
|
|
|
55,407
|
|
Common stock, par value $.01 per share, 100,000,000 shares
authorized; 54,835,420 and 54,268,915 shares issued and
outstanding, respectively
|
|
548
|
|
|
543
|
|
Additional paid-in capital
|
|
764,272
|
|
|
759,214
|
|
Accumulated other comprehensive income (loss)
|
|
61,557
|
|
|
52,511
|
|
Accumulated deficit
|
|
(248,486
|
)
|
|
(250,965
|
)
|
Total shareholders' equity
|
|
633,298
|
|
|
616,710
|
|
Total liabilities and shareholders’ equity
|
|
$
|
4,628,113
|
|
|
$
|
4,280,229
|
|
|
|
|
|
|
Book value per common share
|
|
$
|
10.50
|
|
|
$
|
10.30
|
|
|
|
|
DYNEX CAPITAL, INC.
|
CONSOLIDATED STATEMENTS OF INCOME
|
(amounts in thousands except per share data)
|
|
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
2013
|
|
2012
|
Interest income:
|
|
(unaudited)
|
|
(unaudited)
|
Mortgage-backed securities, at fair value
|
|
$
|
32,039
|
|
|
$
|
24,463
|
|
Securitized mortgage loans
|
|
924
|
|
|
1,504
|
|
Other investments
|
|
19
|
|
|
305
|
|
|
|
32,982
|
|
|
26,272
|
|
Interest expense:
|
|
|
|
|
Repurchase agreements
|
|
10,218
|
|
|
6,644
|
|
Non-recourse collateralized financing
|
|
238
|
|
|
481
|
|
|
|
10,456
|
|
|
7,125
|
|
|
|
|
|
|
Net interest income
|
|
22,526
|
|
|
19,147
|
|
Provision for loan losses
|
|
(261
|
)
|
|
(60
|
)
|
Net interest income after provision for loan losses
|
|
22,265
|
|
|
19,087
|
|
|
|
|
|
|
Gain on sale of investments, net
|
|
1,391
|
|
|
351
|
|
Fair value adjustments, net
|
|
(157
|
)
|
|
(210
|
)
|
Other income, net
|
|
(88
|
)
|
|
369
|
|
General and administrative expenses:
|
|
|
|
|
Compensation and benefits
|
|
(2,358
|
)
|
|
(1,798
|
)
|
Other general and administrative
|
|
(1,450
|
)
|
|
(1,323
|
)
|
Net income
|
|
19,603
|
|
|
16,476
|
|
Preferred stock dividends
|
|
(1,222
|
)
|
|
—
|
|
Net income to common shareholders
|
|
$
|
18,381
|
|
|
$
|
16,476
|
|
|
|
|
|
|
Weighted average common shares:
|
|
|
|
|
Basic
|
|
54,300
|
|
|
49,480
|
|
Diluted
|
|
54,301
|
|
|
49,481
|
|
Net income per common share:
|
|
|
|
|
Basic
|
|
$
|
0.34
|
|
|
$
|
0.33
|
|
Diluted
|
|
$
|
0.34
|
|
|
$
|
0.33
|
|
Dividends declared per common share
|
|
$
|
0.29
|
|
|
$
|
0.28
|
|