Dynex Capital, Inc. (NYSE: DX) announced its third‑quarter 2025 financial results on October 20, 2025. The company reported net interest income of $30.6 million, up from $23.1 million in the second quarter, and a net income of $150.4 million, translating to $1.09 per common share. Book value per common share rose to $12.67, reflecting a $0.72 increase driven by asset appreciation and a decline in leverage.
The company’s operating performance was bolstered by higher‑yielding agency mortgage‑backed securities and steady financing costs. Net periodic interest from interest‑rate swaps increased to $14.3 million, while the net interest spread widened to 0.46% from 0.33% in Q2. Dynex also raised $256.3 million through its at‑the‑market program, adding to its liquidity and supporting portfolio expansion.
Portfolio highlights included a $14.8 billion fair‑value total of agency RMBS, with a $77.4 million unrealized loss on the Q3 balance sheet versus a $203.5 million loss in Q2. The company’s repurchase agreement borrowings grew to $11.8 billion, maintaining a weighted average rate of 4.44%. These figures underscore Dynex’s focus on higher‑yield assets while managing financing costs.
Management indicated that the company expects further improvement in financing rates in the fourth quarter, citing the Federal Reserve’s 25‑basis‑point rate cut in September 2025. Dynex will continue to deploy capital through its ATM program and maintain a robust liquidity position to capitalize on market opportunities.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.