Solid Cash Flows: Fed Tightening

First Quarter 2019 Highlights • Comprehensive income of $0.46 per common share and GAAP net loss of $(0.81) per common share • Core net operating income(¹) of $0.18 per common share • Book value per common share increased $0.22 per share, or 3.7%, to $6.24 at March 31, 2019 compared to $6.02 at December 31, 2018 • Net interest spread and adjusted net interest spread of 0.84% and 1.19%, respectively, for the first quarter of 2019, a decline compared to 0.93% and 1.24%, respectively, for the fourth quarter of 2018 primarily due to lower TBA dollar roll income and the tighter spread between 3-month LIBOR and repo rates ● • Leverage (2) including TBA dollar roll positions increased to 8.5x shareholders' equity at March 31, 2019 compared to 8.0x at December 31, 2018 (1) Reconciliations for non-GAAP measures are presented on slide 29. (2) Equals sum of (i) total liabilities and (ii) amortized cost basis of TBA dollar roll positions (if settled) divided by total shareholders' equity. DYNEX CAPITAL INC. 3

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