Dynex Capital Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Dynex Capital Inc. has submitted its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

DYNEX CAPITAL INC (DX-PC) filed a Annual Report (10-K) with the SEC on February 26, 2024. Dynex Capital Inc. filed its 2023 Form 10-K on February 26, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 4991 Lake Brook Drive, Suite 100, Glen Allen, VA 23060. Dynex Capital Inc. was formerly known as Resource Mortgage Capital Inc./VA. The company is classified under Real Estate Investment Trusts (SIC 6798).

Why It Matters

For investors and stakeholders tracking DYNEX CAPITAL INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Dynex Capital's financial health, strategic initiatives, and risk factors for the past fiscal year, crucial for investors assessing its current standing and future prospects. As a Real Estate Investment Trust (REIT), understanding Dynex Capital's performance in this filing is key to evaluating its position within the real estate sector and its ability to generate income from its portfolio.

Risk Assessment

Risk Level: medium — DYNEX CAPITAL INC shows moderate risk based on this filing. The filing is a 10-K, which is a standard annual report providing a broad overview of the company's financial health and operations, but specific performance metrics or significant changes are not detailed in the header information alone.

Analyst Insight

Review the full 10-K filing for detailed financial statements, management discussion and analysis, and risk factors to understand Dynex Capital's performance and outlook.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240226 — Filing Date (FILED AS OF DATE)
• 78 — Public Document Count (PUBLIC DOCUMENT COUNT)
• 6798 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• DYNEX CAPITAL INC (company) — FILER
• RESOURCE MORTGAGE CAPITAL INC/VA (company) — FORMER COMPANY
• GLEN ALLEN (location) — BUSINESS ADDRESS CITY
• VA (location) — BUSINESS ADDRESS STATE
• 8042175800 (phone) — BUSINESS PHONE

FAQ

Industry Context

Dynex Capital Inc. operates as a Real Estate Investment Trust (REIT), focusing on investments in mortgage-backed securities and related assets.

Regulatory Implications

As a publicly traded company, Dynex Capital Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the annual filing of Form 10-K.

What Investors Should Do

1. Analyze the full 10-K document for detailed financial statements and performance metrics.
2. Examine the Management's Discussion and Analysis section for insights into the company's strategy and outlook.
3. Review the risk factors section to understand potential challenges and uncertainties facing Dynex Capital Inc.

Key Dates

• 2024-02-26: 10-K Filing — Annual report submission for fiscal year 2023.

Year-Over-Year Comparison

This is the initial extraction of the 2023 10-K filing; comparison to prior filings requires access to those documents.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share DX New York Stock Exchange 6
• $12.59 — price on the New York Stock Exchange of $12.59. On February 23, 2024, the registrant
• $250 million — ed statistical ratings organizations to $250 million in market value and limits our sharehol
• $50 million — ect to such investments to a maximum of $50 million. We also conduct our own independent ev

Filing Documents

• dx-20231231.htm (10-K) — 1903KB
• exhibit104insidertradingpo.htm (EX-10.4) — 70KB
• exhibit105clawbackpolicy.htm (EX-10.5) — 90KB
• exhibit1018non-employeedir.htm (EX-10.18) — 6KB
• exhibit231bdoconsent.htm (EX-23.1) — 3KB
• exhibit311ceocertification.htm (EX-31.1) — 11KB
• exhibit312cfocertification.htm (EX-31.2) — 10KB
• exhibit321soxcertification.htm (EX-32.1) — 8KB
• dx-20231231_g1.jpg (GRAPHIC) — 137KB
• dx-20231231_g2.jpg (GRAPHIC) — 122KB
• dx-20231231_g3.jpg (GRAPHIC) — 53KB
• dx-20231231_g4.jpg (GRAPHIC) — 53KB
• image_0a.jpg (GRAPHIC) — 58KB
• 0000826675-24-000011.txt (&nbsp;) — 9473KB
• dx-20231231.xsd (EX-101.SCH) — 31KB
• dx-20231231_cal.xml (EX-101.CAL) — 48KB
• dx-20231231_def.xml (EX-101.DEF) — 311KB
• dx-20231231_lab.xml (EX-101.LAB) — 583KB
• dx-20231231_pre.xml (EX-101.PRE) — 424KB
• dx-20231231_htm.xml (XML) — 1394KB

Risk Factors 9

Item 1A. Risk Factors 9 Item 1B. Unresolved Staff Comments 23 Item 1C. Cybersecurity 23

Properties

Item 2. Properties 23

Legal Proceedings

Item 3. Legal Proceedings 23

Mine Safety Disclosures 23

Item 4. Mine Safety Disclosures 23 PART II.

Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 25

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 25

[Reserved] 26

Item 6. [Reserved] 26

Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures About Market Risk 40

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 40

Financial Statements and Supplementary Data 44

Item 8. Financial Statements and Supplementary Data 44

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 44

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 44

Controls and Procedures 44

Item 9A. Controls and Procedures 44

Other Information 45

Item 9B. Other Information 45

Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 45

Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 45 PART III.

Directors, Executive Officers and Corporate Governance 46

Item 10. Directors, Executive Officers and Corporate Governance 46

Executive Compensation 46

Item 11. Executive Compensation 46

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 46

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 46

Certain Relationships and Related Transactions, and Director Independence 46

Item 13. Certain Relationships and Related Transactions, and Director Independence 46

Principal Accountant Fees and Services 46

Item 14. Principal Accountant Fees and Services 46 PART IV.

Exhibits and Financial Statement Schedules 47

Item 15. Exhibits and Financial Statement Schedules 47

Form 10-K Summary 49

Item 16. Form 10-K Summary 49 SIGNATURES 50 i CAUTIONARY STATEMENT – This Annual Report on Form 10-K contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended (or "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (or "Exchange Act"). We caution that any such forward-looking statements made by us are not guarantees of future performance, and actual results may differ materially from those expressed or implied in such forward-looking statements. Some of the factors that could cause actual results to differ materially from estimates expressed or implied in our forward-looking statements are set forth in this Annual Report on Form 10-K for the year ended December 31, 2023. See Item 1A. "Risk Factors" as well as "Forward-Looking Statements" set forth in Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Annual Report on Form 10-K. In this Annual Report on Form 10-K, we refer to Dynex Capital, Inc. and its subsidiaries as the "Company," "we," "us," or "our," unless we specifically state otherwise or the context indicates otherwise. PART I.

BUSINESS

ITEM 1. BUSINESS COMPANY OVERVIEW Dynex Capital, Inc. commenced operations in 1988 and is an internally managed mortgage real estate investment trust ("REIT"), which invests in mortgage-backed securities ("MBS"). We finance our investments principally with repurchase agreements. Our objective is to provide attractive risk-adjusted returns to our shareholders over the long term that are reflective of a leveraged, high quality fixed income portfolio with a focus on capital preservation. We seek to provide returns to our shareholders primarily through the payment of regular dividends and through capital appreciation of our investments. As of December 31, 2023, we were primarily invested in Agency MBS, of which over 96% are residential MBS ("Agency RMBS"). Less than 4% of our investment portfolio as of December 31, 2023 was comprised of Agency commercial MBS ("Agency CMBS") and Agency and non-Agency CMBS interest-only ("CMBS IO") securities. Agency MBS have an implicit guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity ("GSE") such as Fannie Mae and Freddie Mac. Non-Agency MBS are issued by non-governmental enterprises and do not have a guaranty of principal or interest payments. INVESTMENT STRATEGY Our investment strategy and the allocation of our capital to a particular sector or investment is driven by a "top-down" framework that focuses on the risk management, scenario analysis, and expected risk-adjusted returns of any investment. Key points of this framework include the following: understanding macroeconomic factors, global monetary and fiscal policies, and possible evolving outcomes; understanding the regulatory environment, competition for assets, and terms and availability of financing; investment analysis including understanding absolute returns, relative and risk-adjusted returns, and supply/demand metrics in various mortgage asset classes; financing and hedging analysis including sensitivity

View Full Filing

View this 10-K filing on SEC EDGAR