Dynex Capital (NYSE: DX) reported Q3 EPS of $0.61, $0.14 better than the analyst estimate of $0.47.

Financial Highlights

• Comprehensive income of $1.92 per common share and net income of $1.62 per common share
• Quarterly total economic return to common shareholders of 11.7%
• Net interest spread and adjusted net interest spread of 1.96% and 2.00%, respectively, for the third quarter of 2020 compared to 1.96% and 1.96%, respectively, for the second quarter of 2020
• Core net operating income, a non-GAAP measure, of $0.61 per common share
• Book value per common share of $18.25 as of September 30, 2020 compared to $16.69 as of June 30, 2020
• Dividends declared of $0.39 per common share
• Leverage including TBA long positions of 6.2x shareholders' equity

Management Remarks

"Our up-in credit and up-in-liquidity investment and hedging strategy led to a solid total economic return of 11.7% for the third quarter," commented Byron L. Boston, President and Chief Executive Officer. "Book value per common share increased as we were well positioned to benefit from improved asset valuations from tighter credit spreads. Our third quarter core earnings increased significantly as we added investments during the quarter and we continued to benefit from a low funding rate and favorable TBA dollar roll environment with our investment strategy."

Mr. Boston added, "Year-to-date, our total economic return is 8.4%, and our book value is now above where it was at December 31, 2019. Our outlook for the balance of 2020 looks favorable given the funding environment and central bank support of the economy and risk assets, notwithstanding the uncertainty of the trajectory of fiscal policy and the medium term economic outlook."

For earnings history and earnings-related data on Dynex Capital (DX) click here.