Dynex Capital, Inc.

Hello and thank you for standing by. My name is Regina and I will be your conference operator today. At this time, I would like to welcome everyone to the Dynex Capital Fourth Quarter and Full Year 2023 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you'd like to withdraw your question, press star 1 again. I would now like to turn the conference over to Allison Griffin, Vice President of Investor Relations. Please go ahead.

Good morning. Thank you for joining us for Dynex Capital's fourth quarter and full year 2023 earnings call. The press release associated with today's call was issued and filed with the SEC this morning, January 29, 2024. You may view the press release on the homepage of the Dynex website at dynexcapital.com, as well as on the SEC's website at sec.gov. Before we begin, we wish to remind you that this conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words believe, expect, forecast, anticipate, estimate, project, plan, and similar expressions identify forward-looking statements that are inherently subject to risk and uncertainties, some of which cannot be predicted or quantified. The company's actual results and timing of certain events could differ considerably from those projected and or contemplated by those forward-looking statements as a result of unforeseen external factors or risks. For additional information on these factors or risks, please refer to our disclosures filed with the SEC, which may be found on the Dynex website, under Investor Center, as well as on the SEC's website. This conference call is being broadcast live over the internet with a streaming slide presentation, which can be found through a webcast link on the homepage of our website. The slide presentation may also be referenced under quarterly reports on the Investor Center page. Joining me on the call is Byron Boston, Chairman and Chief Executive Officer, Smriti Papano, President and Chief Investment Officer, and Rob Colligan, Executive Vice President, Chief Financial Officer. It is now my pleasure to turn the call over to Byron.

Thank you, Allison. Let me start by saying a few words about our board member, friend, and great teammate, Dave Stevens, who we lost this month. Dave was a true champion of the United States housing finance system and also the American homeowner. For me personally, we worked together for over 20 years, three organizations, always locking arms to achieve a common goal. It never feels good to see a friend exit the road of life. We will miss Dave, a great teammate, friend, and most importantly, an absolutely wonderful human being. While that was tough news to contend with earlier this year, I am proud of the remarkable work that Team Dynex continues to achieve. As an active manager, our team navigated historic volatility with skill. We came into the year with excess capital and deployed the capital in a disciplined manner throughout the year to position us to generate solid long-term economic returns. As a result, Dynix shareholders have enjoyed industry-leading returns in the current decade. One full of surprises and immense volatility. Our total shareholder return was 12% last year. Since the start of 2020 through the fourth quarter of 2023, our total shareholder return has been over 10%. This compares to the aggregate bond index ETF, which experienced losses of over 3%. We believe our ethical stewardship of shareholder capital continues to meet investors' needs and produce differentiated results versus peers and other income alternatives. I study history. And I can tell you that today's market presents a historic and persistent opportunity in agency mortgage-backed securities. Non-economic buyers like the Fed and the GSEs have stepped away from the asset class. Private capital like Dynex now has the ability to earn more returns in this government-guaranteed asset. I'm confident in our team's ability to navigate today's dynamic macroeconomic conditions and produce compelling shareholder returns. I am coaching them to incorporate the evolving landscape in 2024. We have major elections throughout the world, including here in the US. As a chairman and CEO, I am focused on navigating our company through gyrations and government policies. The outcome of elections will change the power structure and political dynamics in Washington. I've been pounding the table that surprises are highly probable. We have seen that very clearly each year since the pandemic. The team factors this into their scenario preparation and thought process. This is why we believe investing in agency RMBS is the most compelling risk reward. The liquidity and quality in agency RMBS are needed to navigate this environment. As Smriti will describe in detail, the sector's fundamental and technical backdrop is improving. While we have the capability to invest across sectors and our balance sheet has been diversified in the past, we have a strong global risk opinion that keeps the bulk of our capital and agency in BS. Dynex has a unique value proposition. We have a seasoned team, a strong track record in extracting long-term returns from the mortgage market, and a liquid and tradable vehicle with a tax advantage structure. We plan to continue to grow our business to offer our value proposition to more shareholders as demographics drive more investors to seek income. More of the global population will need an ethical management team to deliver the returns they need. I'll now turn it over to Rob and Smirti to give you the details.