Dynex Capital, Inc. · NYSE:DX
Dynex Capital — Q3 2026 Earnings Presentation
33 slides from Dynex Capital's earnings presentation, Oct 19, 2026
Slide 1: Third Quarter 2026 Earnings Presentation
Third Quarter 2026 Earnings Presentation Monday, October 19, 2026 1
Slide 2: Cautionary Statement / Forward-Looking Statements
Cautionary Statement / Forward-Looking Statements NOTE: This presentation contains certain statements that are not historical facts and that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “forecast,”
Slide 3: A Differentiated Mortgage Investment Strategy Delivering Consistent, Monthly Dividends
A Differentiated Mortgage Investment Strategy DYNEX BY THE NUMBERS Delivering Consistent, Monthly Dividends 527% 18.3% $28.3B Total Shareholder Return Annualized Common Stock Total Investment Portfolio(1) Since Inception Dividend Yield What We Do Dynex generates dividend income and long-term total r
Slide 4: Quarterly Performance Highlights
Quarterly Performance Highlights Q3’26 Earnings Summary Q3’26 Investment Portfolio Q3'26 Q2'26 Book Value $10.91 $12.90 Agency per common share CMBS Agency 5% RMBS Total Economic Return(1) (11.5%) 6.4% TBAs 9% Dividend $0.51 $0.51 per common share Comprehensive (Loss) Income $(1.49) $0.80 per common
Slide 5: Demonstrated Track Record of Outperformance
Track Record of Outperformance Over 50% total shareholder return this decade Demonstrated Track Record of Outperformance 60% 51% Cumulative Total Shareholder Return (%) 44% 40% 26% 25% 19% 20% 6% 7% 3% 0% -6% -9% -10% -20% -21% -20% -25% -28% -28% -40% 1 Year 3 Year 5 Year This Decade Dynex Agency m
Slide 6: 5x Growth with Strategic Capital Management
5x Growth with Strategic Capital Management Disciplined capital deployment and favorable investment opportunities have fueled portfolio expansion and market capitalization growth Portfolio Growth Market Capitalization Growth(1) ($s in billions) ($s in billions) $28.3 $2.9 ~5x G R OW T H ~5x G R OW T
Slide 7: The Dynex Value Creation Cycle
The Dynex Value Creation Cycle A favorable investment backdrop, efficient capital raising, and Dynex's differentiated platform combine to drive long-term shareholder value Attractive Investment Opportunity Strong Valuation Trend Spread environment supports attractive returns on our Growth has been a
Slide 8: Capital Structure Management
Capital Structure Management We further strengthened our balance sheet with the closing of a $120 million preferred equity offering during the third quarter of 2026 Dynex Capital Structure Evolution Series D Preferred Equity Offering Our capital base has grown 5x since the last time we completed a I
Slide 9: Market Takeaways and Agency MBS Positioning
Market Takeaways and Agency MBS Positioning 9
Slide 10: Agency MBS Offers Attractive Forward Return Profile
Agency MBS Offers Attractive Forward Return Profile Today’s mortgage market combines wide spreads, more stable cash flows, deep funding markets and favorable supply-demand dynamics, reinforcing the opportunity at current valuations Mortgage Convexity Profile is Attractive for Agency MBS Investors(1)
Slide 11: Mortgage Spreads Remain Historically Wide
Mortgage Spreads Remain Historically Wide Following recent widening, mortgage spreads are attractive relative to historical periods with comparable spread levels, given today’s more supportive mortgage backdrop ‘26: $200B GSE Buy Program History Implication for Dynex Launched Periods of sustained st
Slide 12: Key Macroeconomic Themes
Key Macroeconomic Themes Today’s market environment reinforces the value of liquidity, active portfolio construction and the flexibility to capture opportunities as they emerge AI Debt Issuance Has Been Surging(1) Global Power Dynamics Technology ▪ Geopolitical conflict and heightened focus on natio
Slide 13: Investment Portfolio Summary and Activity
Investment Portfolio Summary and Activity 13
Slide 14: Q3'26 Agency RMBS Strategy & Overview
Q3’26 Agency RMBS Strategy & Overview Agency RMBS portfolio construction balanced attractive carry, improved convexity and liquidity through the quarter’s repricing Agency Coupon Composition Q3’26 Activity 5% 5% 2% 2% ▪ Added $3.1bn of Agency RMBS specified pools 4% 2.00% 6% 9% 5% at attractive spre
Slide 15: Q3'26 Hedging Strategy and Overview
Q3’26 Hedging Strategy and Overview We adjusted our hedge position during the quarter to reduce exposure to the direction of rates while deliberately retaining mortgage spread exposure Hedge Portfolio Q3’26 Activity Figures $bn $24.3 ▪ We more fully hedged interest-rate risk as rates rose while deli
Slide 16: Q3'26 Financing Strategy and Overview
Q3’26 Financing Strategy and Overview Term management, liquid collateral and broad counterparty diversification support reliable and cost-effective access to financing Q3’26 Activity WA Rate WA Maturity 96 3.79% 3.91% Days ▪ Repo markets functioned efficiently throughout the 87 Days quarter, support
Slide 17: Supplemental Financials
wry DYNEX 7 XN CAPITAL INC. Supplemental Financials
Slide 18: Supplemental Financials Table of Contents
Supplemental Financials Table of Contents SUPPLEMENTAL FINANCIALS PAGE Selected Components of Portfolio Returns (excluding mark-to-market) 19 Selected Components of Portfolio Returns (excluding mark-to-market) 19 Capital Structure Summary 20 Capital Structure Summary 20 RMBS Portfolio Details 21 RMB
Slide 19: Selected Components of Portfolio Returns (excluding mark-to-market)
Selected Components of Portfolio Returns (excluding mark-to-market) Amortization of Interest Income(1) Deferred Tax Hedge Gains(2) Interest Expense Economic Net Interest Income(3) Source: Company data as of and for the periods indicated. (1) Interest income includes amounts earned from cash equivale
Slide 20: Capital Structure Summary
Capital Structure Summary Common Stock Series C Preferred Stock Series D Preferred Stock NYSE Ticker DX DX PRC DX PRD Shares Outstanding 258.4 million 4.5 million 4.8 million Book Value $10.91 — — per common share Third Quarter 2026 Dividends Declared $0.51 $0.61 $—(2) per common share Annualized Di
Slide 21: RMBS Portfolio Details
RMBS Portfolio Details Data as of September 30, 2026 Unamortized Premium 3-month Par/Notional Amortized Fair Value % of Total WAVG Pay WAVG Yield 3-month ($ in thousands) Value Cost (%) (2) Fair Value (%) Portfolio up to TBA (2) Balance (2) Market Yield (3) (2) CPR (2) (4) Agency RMBS Pools: 2.0% co
Slide 22: CMBS and CMBS IO Portfolio Details
CMBS and CMBS IO Portfolio Details Data as of September 30, 2026 Portfolio Characteristics Financing Details 3-month Amortized % of Total WAVG Life WAVG WAVG Repo Equity ($ in thousands) Cost Fair Value Portfolio Remaining (1) Yield Market Yield (2) Outstanding Invested Agency CMBS $ 1,506,774 $ 1,4
Slide 23: Interest Rate and Spread Sensitivity
Interest Rate and Spread Sensitivity Interest Rate Sensitivity to Instantaneous Shocks Percentage Change in Percentage Change in Common Shareholders’ Equity Curve Shift Common Shareholders’ Equity Parallel Curve Shift As of As of As of (bps) September 30, 2026 June 30, 2026 2-Year 10-Year Treasury T
Slide 24: Hedge Summary
Hedge Summary Data as of September 30, 2026 September 30, 2026 June 30, 2026 WAVG WAVG Derivative Type - Short Positions Notional Amount Fixed Pay Rate Notional Amount Fixed Pay Rate 1-3 year pay-fixed interest rate swaps $ 1,925,000 3.63% $ — —% 3-5 year pay-fixed interest rate swaps 4,080,000 3.63
Slide 25: Funding Summary
Funding Summary Data as of September 30, 2026 Fair Value of MBS Balance Weighted Pledged as Collateral Collateral Type ($s in thousands) Average Rate ($s in thousands) Agency RMBS $22,756,369 3.91 % $23,782,830 Agency CMBS 1,370,224 3.92 % 1,390,727 Agency CMBS IO 63,683 4.24 % 65,784 Total $24,190,
Slide 26: Comprehensive Income
Comprehensive Income For the Quarter Ended For the Nine Months Ended September 30, 2026 June 30, 2026 September 30, 2026 Income Per Common Income Per Common Income Per Common ($ in thousands, except per share amounts) (Expense) Share* (Expense) Share* (Expense) Share* Interest income $ 332,497 $ 1.3
Slide 27: Book Value Rollforward
Book Value Rollforward For the quarter ended September 30, 2026 ($ in thousands) Common Equity Common equity, beginning of period (1) $ 3,063,567 Net interest income $ 101,562 Net periodic interest from interest rate swaps 82 Operating expenses (12,594) Preferred stock dividends (2,769) Changes in f
Slide 28: Reconciliations of Non-GAAP Measures to GAAP Measures
Reconciliations of Non-GAAP Measures to GAAP Measures(1) ($ in thousands except per share amounts) Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Comprehensive (loss) income to common shareholders $ (374,834) $ 177,278 $ (83,168) $ 189,606 $ 162,527 Adjustments: Change in fair value of investments (2) 1,502,120 26,4
Slide 29: About Dynex
wr DYNEX 7 XN CAPITAL INC. About Dynex
Slide 30: Dynex Capital's strategy statement
wv DYNEX 7 XN CAPITAL INIC. Dynex Capital's strategy delivers attractive, consistent, monthly returns over the long term through disciplined risk management, strategic asset selection and active management of a portfolio of real estate mortgage assets.
Slide 31: Dynex's Strategy Delivers Strong Returns
Dynex’s Strategy Delivers Strong Returns We employ a global, top-down macroeconomic approach that informs our disciplined risk management – driving and protecting investor value across market cycles. This process involves: Macroeconomic Insight – A global view and Preparation for Decision Making – D
Slide 32: Our Core Values Guide Us
Our Core Values Guide Us These values keep us grounded and allow us to sustain our high-performance culture while consistently generating attractive, long-term returns We Deliver Value We Build Trust We are unwavering in our commitment to deliver lasting We earn trust by acting with integrity, foste
Slide 33: Dynex Capital contact details
140 Eastshore Drive, Suite 100 Glen Allen, Virginia 23059 804-217-5800 dynexcapital.com 33