This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dynex Capital, Inc. Reports Fourth Quarter 2012 Diluted EPS Of $0.34 And Book Value Per Common Share Of $10.30

Dynex Capital, Inc. (NYSE: DX) reported net income available to common shareholders of $18.3 million, or $0.34 per diluted common share for the fourth quarter of 2012 versus $18.4 million, or $0.34 per diluted common share, for the third quarter of 2012 and $14.4 million, or $0.36 per diluted common share, for the fourth quarter of 2011. The Company reported net income available to common shareholders of $72.0 million, or $1.35 per common share for the year ended December 31, 2012 compared to $39.8 million, or $1.03 per common share for the same period in 2011.

Management Remarks

Mr. Thomas Akin, Chairman and Chief Executive Officer, commented, "We are very pleased with the consistency of our results. We posted a return on average common equity of 13.0% for the fourth quarter and 13.8% for the full year 2012. We increased equity by $245.4 million during the year to $616.7 million at December 31, 2012 and executed our strategy of allocating more capital to CMBS. We grew book value per common share during the year by $1.10 to $10.30 at December 31, 2012. For the fourth quarter, our net interest spread was a solid 1.93%, a modest decline of 0.07% from the third quarter's 2.00%. Our total portfolio repayments for the quarter were $233.6 million, or less than 6% of our average assets. Our strategy of investing in short duration high quality assets has consistently performed and we remain well positioned for the uncertain investment environment that lies ahead."

Quarterly Highlights
($ in thousands, except per share amounts)   4Q2012   3Q2012   4Q2011
Net interest income $ 21,145 $ 19,100 $ 16,972
Gain on sale of investments, net $ 2,044 $ 3,480 $ 773
General and administrative expenses $ (3,501 ) $ (3,090 ) $ (3,249 )
Net income to common shareholders $ 18,330 $ 18,353 $ 14,406
Earnings per common share $ 0.34 $ 0.34 $ 0.36
Dividend per common share $ 0.29 $ 0.29 $ 0.28
Return on average common equity 13.0 % 13.5 % 15.6 %
Average interest earning assets $ 4,117,527 $ 3,729,124 $ 2,487,167
Average interest bearing liabilities $ (3,655,229 ) $ (3,296,830 ) $ (2,182,788 )
RMBS and single-family capital allocation $ 219,766 $ 255,126 $ 146,437
CMBS and commercial capital allocation $ 361,264 $ 346,287 $ 189,851
Book value per common share $ 10.30 $ 10.31 $ 9.20
Net interest spread 1.93 % 2.00 % 2.56 %
Portfolio CPR (excluding CMBS IOs) 19.0 % 18.7 % 17.8 %
Debt to equity ratio 5.9x 6.1x 6.0x
 

Conference Call

As previously announced, the Company's quarterly conference call to discuss the fourth quarter results is tomorrow, February 20, 2013 at 11:00 a.m. ET. Interested investors may access the call and the related slides by dialing 1-888-317-6016 or by webcast over the internet at www.dynexcapital.com through a link provided under “Investor Relations/IR Highlights.”

Earnings Summary

Net interest income was $21.1 million for the fourth quarter of 2012 versus $19.0 million for the third quarter of 2012. Average interest earning investments increased to $4,117.5 million for the fourth quarter of 2012 versus $3,729.1 million for the third quarter of 2012. Our net interest spread for the fourth quarter of 2012 of 1.93% is the difference between the yield on the Company's interest-earning investment portfolio of 3.04% and the cost of funds of 1.11%. For the third quarter of 2012, net interest spread of 2.00% consisted of the yield on the Company's interest-earning investments of 3.12% less the cost of funds of 1.12%. For the fourth quarter of 2011, the net interest spread of 2.56% consisted of the yield on the Company's interest-earning investments of 3.76% less the cost of funds of 1.20%. The net interest spread declined in the fourth quarter due primarily to declining yields on the Company's Agency MBS portfolio from recent purchases of Hybrid ARMs and CMBS IOs and from interest rate resets on ARMs.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs