Dynex Capital, Inc.

fourth quarter and full year 2024 earnings conference call. The press release associated with today's call was issued and filed with the SEC this morning, January 27, 2025. 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 risks 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 are 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 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 the 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 today are Byron Boston, Chairman and Co-Chief Executive Officer, Smriti Papano, Co-Chief Executive Officer and President, Rob Colligan, Chief Financial Officer and Chief Operating Officer, and TJ Connolly, Chief Investment Officer. I now have the pleasure of turning the call over to Byron.

Thank you Allison and good morning everyone. We continue to advance DynX along the path of growing a resilient, sustainable business for the long term. We are focused on delivering value at the intersection of capital markets and housing finance where we believe there will be sustained opportunity to generate compelling yields. Demographic trends continue to support our thesis for financing residential real estate. The single-family housing market has shown resilience in the face of higher interest rates, and multi-family housing continues to be an area of growth due to the high demand for housing. The team is diligently assessing the best risk-adjusted returns, which currently remain in agency-backed single-family residential MBS. As the chairman and co-CEO, I'm excited about the company we are and the company we are becoming. We are well positioned for the global macroeconomic landscape, which is moving rapidly. Upcoming policy changes are likely to have a significant impact on people, economies, and financial markets. The investment environment continues to offer significant long-term value in the agency RMBS market, and as Smriti will describe, the team is focused on flexibility as we navigate the year ahead.

Thank you, Byron. Today, I'm pleased to announce the appointment of T.J. Connolly as our Chief Investment Officer. T.J. has a brilliant mind and is a wonderful person whose career I've followed since our early days together at Citimac. It has been a delight working with him at Dynex since 2023. He embodies our core values and is already a key member of the Dynex leadership team. I'm really excited for his fresh perspective on our investing strategy, and I wish him great success in this role. Byron and I continue to build the company across the dimensions of people, process, and technology. In 2024, we achieved meaningful progress building a solid foundation for our company. We added three new board members with strong skill sets across technology, risk, asset management, and strategy. We grew our common equity capital to over $1 billion and deployed it wisely as the market gave us opportunities. The year-over-year growth in our common capital base of over 40% drove significant benefits to scale, which Rob will outline in more detail. We expanded our investor outreach, meaningfully increased trading liquidity in our stock, raised our dividend to reflect our confidence in the return environment, all of which has translated to a solid improvement in the price-to-book ratio. We believe Dynex deserves and will attain a premium to book value valuation. The share price does not yet reflect the meaningful benefits of future growth, much improved liquidity in the stock, nor the ethically managed high-quality liquid investment products we deliver. We will continue to drive effort in this direction. Most importantly, we are building a track record to be proud of. Through December 2024, among agency-focused mortgage rates, The Dynex team has generated the leading total shareholder return for one, three, and five years, inclusive of the dividend, a result produced during some of the most challenging market conditions post-Great Financial Crisis. When you include non-agency and credit-focused mortgage rates with market caps above $500 million, Dynex leads on a one- and five-year basis and has the second-best record on a three-year basis. Last year's 7% total economic return and 13.7 total shareholder return was delivered in an environment where the 10-year treasury yield made two 100 basis point round trips and mortgage spreads, though better behaved than 2023, traded in a 40 basis point range. We are producing strong industry leading returns. The experience and expertise of the team has been invaluable in building this record and will continue to be a differentiator for Dynex in the future. I'll now turn it over to Rob and TJ for a more detailed financial picture of 2024, our current thinking, and outlook for 2025.