Dynex Reports 1Q Loss

Dynex Capital Inc., Glen Allen, Va., has reported a net loss to common stockholders of $6.6 million ($0.60 per share) for the first quarter, compared with net income of $12.5 million ($1.15 per share) for the same period last year.The company took a $7.2 million loan-loss provision in the first quarter, of which $6.1 million was related to its manufactured housing loan portfolio. Dynex said it expects to make a similar provision in the second quarter, but by the third quarter it will have substantially reserved its remaining net credit exposure on manufactured housing loans. The first-quarter loss includes a charge of $1.2 million stemming from preferred dividend arrears. As part of its recently approved recapitalization plan, Dynex's current preferred stock classes will be converted into a new series D preferred stock as well as 1.29 million shares of common stock. The series D preferred stock will pay a dividend of $0.95 per year; the arrears on the old preferred stock will be extinguished.