Dynex Capital Reports Third Quarter 1997 Earnings.GLEN ALLEN Glen Allen is the name of several places in the United States of America:
See: New York Stock Exchange : DX) today reported net income of $19.5 million, or $0.36 per common share for the third quarter of 1997, compared to $16.6 million, or $0.35 per common share for the third quarter of 1996. 1996 per share information has been adjusted for the Company's 2-for-1 stock split, effective May 5, 1997. The Company declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. previously a dividend of $0.345 per common share for the third quarter. In commenting on the Company's performance, Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs H. Potts, President, stated "The third quarter of 1997 produced solid overall results for the Company. Earnings per share (excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gains) were higher this past quarter than for any quarter over the past three years. Furthermore, our efforts over the past year in building the infrastructure to increase our direct production levels is producing results. Fundings from the Company's direct production operations increased in all business areas, and totaled $224 million for the quarter, versus $130 million for the second quarter of 1997 and $77 million for the third quarter of 1996. We expect production for the fourth quarter to exceed $275 million. Already, fundings for the fourth quarter through October October: see month. 14th approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. $70 million." During the third quarter, the Company's overall fundings totaled $518 million, consisting of $96 million in multifamily/commercial loans, $97 million in manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected loans, $294 million in bulk purchases of single-family sin·gle-fam·i·ly adj. Relating to or being a dwelling designed for one family only: a single-family home; single-family occupancy. adjustable-rate (ARM) loans, and $31 million through its specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. finance division which concentrates on loan products designed for home builders and single family homeowners. Mr. Potts noted, "Multifamily/commercial lending volumes increased significantly during the third quarter, and were $48 million for multifamily loans Multifamily loans Loans usually represented by conventional mortgages on multi-family rental apartments. and $48 million for commercial loans. We expect continued growth in production volume during the fourth quarter, and our pipeline of commitments remains strong for the next twelve to eighteen months." Within the Company's manufactured housing lending operations, volume increased from $69 million in the second quarter to $97 million in the third quarter. Mr. Potts commented, "We are continuing to build our infrastructure in the manufactured housing lending area. We are currently established in all of our targeted markets and the Company is continuing to expand its products and loan programs. The Company successfully introduced its loan program for "land/home" financing during the quarter, and delinquencies remain at low levels." Net interest margin was $20.8 million for the third quarter, versus $21.4 million for the second quarter. Mr. Potts noted, "the slight decrease in the net interest margin for the quarter is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to an increased rate of prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. on higher margin ARM loans in the portfolio. These faster prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. rates, in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with no issuances of securities during the quarter, also contributed to the decline in the market value of the Company's portfolio during the quarter. The Company is planning two securitizations for the fourth quarter, the first consisting of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $320 million of multifamily and commercial loans, and the second consisting of approximately $1 billion of manufactured housing and single-family loans which should contribute to future growth in the net interest margin, as well as improve the market value on the Company's investment portfolio to record levels." In addition to the standard Consolidatd Balance Sheets and Statements of Operations, the Company has attached supplemental Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. presenting Collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although for Collateralized Bonds net of the related non-recourse Collateralized Bonds in the Investments section of the Balance Sheets. Mortgage Securities include those classes of Collateralized Bonds issued but not sold by the Company, and Repurchase Agreements Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. include borrowings to finance the retention of those Collateralized Bond classes. The Company believes that this balance sheet presentation is a better portrayal of the Company's net investment in Collateralized Bonds and its recourse The right of an individual who is holding a Commercial Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment. financing obligations (Repurchase Agreements, Notes Payable and Payable for Investments Purchased). Dynex Capital, Inc. is a mortgage and consumer finance company which uses its production operations to create investments for its portfolio. The Company's primary production operations include the origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real of mortgage loans secured by multifamily and commercial real estate properties and the origination of loans secured by manufactured homes. The Company has elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to be treated as a real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) for federal income tax purposes. The Company's strategy is to create investments from its production operations at a lower effective cost than if assets were purchased in the market, and as a result, steadily increase its net interest margin income and earnings per share over time. Note: This document contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " (within the meaning of the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995) that inherently involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward looking statements as a result of unforeseen external factors. As discussed in the Company's filings with the SEC, these factors may include, but are not limited to, changes in general economic conditions, fluctuations in interest rates, increases in costs and other general competitive factors. -0-
DYNEX CAPITAL, INC.
Consolidated Balance Sheets
(Thousands except share data)
September 30, December 31,
1997 1996
ASSETS
Investments:
Portfolio assets:
Collateral for collateralized bonds $ 3,070,291 $ 2,702,294
Mortgage securities 798,221 890,212
Other 159,543 98,943
Loans held for securitization 819,850 265,537
4,847,905 3,956,986
Cash 8,327 11,396
Accrued interest receivable 9,378 8,078
Other assets 14,363 10,997
$ 4,879,973 $ 3,987,457
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Collateralized bonds $ 2,860,313 $ 2,519,708
Repurchase agreements 690,899 756,448
Notes payable 475,152 177,124
Payable for investments purchased 266,991 -
Accrued interest payable 4,018 2,717
Other liabilities 43,297 27,843
4,340,670 3,483,840
SHAREHOLDERS' EQUITY:
Preferred stock, par value $.01 per share,
50,000,000 shares authorized:
9.75% Cumulative Convertible Series A
1,457,800 and 1,552,500 issued
and outstanding, respectively 33,297 35,460
9.55% Cumulative Convertible Series B
2,003,320 and 2,196,824 issued
and outstanding, respectively 46,895 51,425
9.73% Cumulative Convertible Series C
1,840,000 and 1,840,000 issued
and outstanding, respectively 52,740 52,740
Common stock, par value $.01 per share,
50,000,000 shares authorized,
43,919,073 and 41,307,186 issued
and outstanding, respectively 439 414
Additional paid-in capital 326,056 291,430
Net unrealized gain on investments
available-for-sale 70,214 64,402
Retained earnings 9,662 7,746
539,303 503,617
$ 4,879,973 $ 3,987,457
Supplemental Presentation
DYNEX CAPITAL, INC.
Consolidated Balance Sheets
(Thousands except share data)
September 30, December 31,
1997 1996
ASSETS
Investments:
Portfolio assets:
Collateral for collateralized bonds $ 3,070,291 $ 2,702,294
Less: Collateralized bonds issued (2,888,011) (2,537,758)
Net collateral for 182,280 164,536
collateralized bonds
Mortgage securities 1,251,675 1,271,199
Other 159,543 98,943
Loans held for securitization 819,850 265,537
2,413,348 1,800,215
Cash 8,327 11,396
Accrued interest receivable 13,167 11,829
Other assets 14,363 10,997
$ 2,449,205 $ 1,834,437
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Repurchase agreements $ 1,120,444 $ 1,123,136
Notes payable 475,152 177,124
Payable for investments purchased 266,991 -
Accrued interest payable 4,018 2,717
Other liabilities 43,297 27,843
1,909,902 1,330,820
SHAREHOLDERS' EQUITY:
Preferred stock, par value $.01 per share,
50,000,000 shares authorized:
9.75% Cumulative Convertible Series A
1,457,800 and 1,552,500 issued
and outstanding, respectively 33,297 35,460
9.55% Cumulative Convertible Series B
2,003,320 and 2,196,824 issued
and outstanding, respectively 46,895 51,425
9.73% Cumulative Convertible Series C
1,840,000 and 1,840,000 issued
and outstanding, respectively 52,740 52,740
Common stock, par value $.01 per share,
50,000,000 shares authorized,
43,919,073 and 41,307,186 issued 439 414
and outstanding, respectively
Additional paid-in capital 326,056 291,430
Net unrealized gain on investments
available-for-sale 70,214 64,402
Retained earnings 9,662 7,746
539,303 503,617
$ 2,449,205 $ 1,834,437
DYNEX CAPITAL, INC.
Consolidated Statements of Operations
(Thousands except share data)
Quarter ended September 30,
1997 1996
Interest income:
Collateral for collateralized bonds $ 56,817 $ 40,237
Mortgage securities 18,560 33,319
Other portfolio assets 3,572 1,408
Loans held for securitization 8,479 3,412
87,428 78,376
Interest and related expense:
Collateralized bonds 48,594 31,191
Repurchase agreements 10,181 25,190
Notes payable 5,986 1,743
Other 521 387
Provision for losses 1,378 900
66,660 59,411
Net interest margin 20,768 18,965
Gain on sale of single-family operations - (1,385)
Gain on sale of assets,
net of associated costs 3,590 3,297
Other income 1,587 126
General and administrative expenses (6,433) (4,445)
Net income $ 19,512 $ 16,558
Net income 19,512 16,558
Dividends on preferred stock (3,728) (2,195)
Net income available to common
shareholders $ 15,784 $ 14,363
Per common share (a):
Primary $ 0.36 $ 0.35
Fully diluted $ 0.36 $ 0.34
Weighted average number of common
shares outstanding (a)
Primary 43,384,088 41,021,554
Fully diluted 54,266,289 48,520,202
(a) Adjusted for two-for-one common stock split effective May 5, 1997.
DYNEX CAPITAL, INC.
Consolidated Statements of Operations
(Thousands except share data)
Nine months ended September
1997 1996
Interest income:
Collateral for collateralized bonds $ 150,712 $ 95,880
Mortgage securities 59,609 104,600
Other portfolio assets 8,984 4,044
Loans held for securitization 26,148 24,637
245,453 229,161
Interest and related expense:
Collateralized bonds 126,212 75,270
Repurchase agreements 37,872 88,150
Notes payable 13,377 6,588
Other 1,490 2,083
Provision for losses 3,793 1,700
182,744 173,791
Net interest margin 62,709 55,370
Gain on sale of single-family operations - 17,514
Gain on sale of assets,
net of associated costs 8,278 (2,899)
Other income 2,640 855
General and administrative expenses (17,421) (15,700)
Net income $ 56,206 $ 55,140
Net income 56,206 55,140
Dividends on preferred stock (11,131) (6,581)
Net income available to common
shareholders $ 45,075 $ 48,559
Per common share (a):
Primary $ 1.06 $ 1.19
Fully diluted $ 1.05 $ 1.14
Weighted average number of common
shares outstanding (a)
Primary 42,500,106 40,771,184
Fully diluted 53,565,037 48,269,832
(a) Adjusted for two-for-one common stock split effective May 5, 1997.
-0-
CONTACT: Cass English 1. English - (Obsolete) The source code for a program, which may be in any language, as opposed to the linkable or executable binary produced from it by a compiler. The idea behind the term is that to a real hacker, a program written in his favourite programming language is , 804/217-5800 |
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