Dynex Capital Inc

The Company's net interest income and net interest spread continued to improve as a result of higher yielding investments added to the portfolio while financing costs as a percentage of average borrowings have remained steady.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

Treasury futures (508) Interest rate swaps (30,320) Interest rate swaptions (1,279) Total net change in fair value 132,476 Comprehensive income to common shareholders 162,527 Capital transactions Net proceeds from stock issuance (2) 256,347 Common dividends declared (71,319) Balance as of September 30, 2025 (1) $ 1,846,048 (1) Amounts represent total shareholders' equity less the aggregate liquidation preference of the Company's preferred stock of $111,500.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

(2) Average balance for liabilities is calculated as a simple average of the daily borrowings outstanding during the period.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

(4) Financing cost is calculated by dividing annualized interest expense by the total average balance of borrowings outstanding during the period with an assumption of 360 days in a year.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

Management also includes net periodic interest from its interest rate swaps, which is included in gain (loss) on derivatives instruments, net , in each of these non-GAAP measures because interest rate swaps are used by the Company to economically hedge the impact of changing interest rates on its borrowing costs from repurchase agreements, and including net periodic interest from interest rate swaps is a helpful indicator of the Company s total financing cost in addition to GAAP interest expense.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

Furthermore, though EAD is one of several factors our management considers in determining the appropriate level of distributions 8 to common shareholders, it should not be utilized in isolation, and it is not an accurate indication of the Company s REIT taxable income or its distribution and dividend requirements in accordance with the Internal Revenue Code.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

We continue to invest in highly liquid, transparent, and readily valued securities while maintaining a focus on effective risk management and a disciplined investment process, said Smriti Laxman Popenoe, Co-Chief Executive Officer and President.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

Popenoe's quote, may include, without limitation, statements regarding the Company's financial performance in future periods, future interest rates, future market credit spreads, management's views on expected characteristics of future investment and macroeconomic environments, central bank strategies, prepayment rates and investment risks, future investment strategies, future leverage levels and financing strategies, the use of specific financing and hedging instruments and the future impacts of these strategies, future actions by the Federal Reserve, and the expected performance of the Company's investments.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

The Company is internally managed and primarily earns income from investing in residential and commercial mortgage-backed securities ( RMBS and CMBS , respectively), which are backed by residential and commercial mortgage loans, and which are primarily Agency securities guaranteed by U.

SEC original ↗Dynex Capital Inc — 10-Q Quarterly report10-QJul 27, 2026

The Company purchases to-be-announced ( TBA ) securities as a means of investing in non-specified 9 DYNEX CAPITAL, INC.

SEC original ↗Dynex Capital Inc — 10-Q Quarterly report10-QJul 27, 2026

Actual maturities of MBS are affected by the contractual lives of the underlying mortgage collateral, scheduled payments, and unscheduled prepayments of principal, and the payment priority structure of the security; therefore, actual maturities are generally shorter than the securities' stated contractual maturities.

SEC original ↗Dynex Capital Inc — 10-Q Quarterly report10-QJul 27, 2026

The table below provides the projected amortization of the Company's net deferred tax hedge gains that may be recognized as taxable income over the periods indicated, given conditions known as of September 30, 2025 however, uncertainty inherent in the forward interest rate curve makes future realized gains and losses difficult to estimate, and as such, these projections are subject to change for any given period.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

The words believe, expect, forecast, anticipate, estimate, project, plan, may, could, will, continue and similar expressions identify forward-looking statements that are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

These factors may include, but are not limited to, the Company's ability to find suitable investment opportunities changes in domestic economic conditions geopolitical events, such as terrorism, war, or other military conflict, including the war between Russia and Ukraine and the conflict in the Middle East and the related impacts on macroeconomic conditions as a result of such conflicts tariffs that the U.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

imposes on trading partners or tariffs imposed on the U.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

federal government shutdown on economic conditions systems failures or cybersecurity incidents and exposure to current and future claims and litigation.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025

As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, the Company.

SEC original ↗Dynex Capital Inc — Earnings release (8-K exhibit)EX-99Oct 20, 2025