Bucking national trends, Dynex Capital, Inc., a specialty finance company in the mortgage finance sector, has reported $3.3 million in net income for the quarter ending June 30, up from $1.7 million the same quarter last year.

Boldly going where many others dared not go, Dynex purchased $109 million of residential, mortgage-backed securities for its investment portfolio late in the last quarter.

Said Thomas Akin, CEO of the Glen Allen-based firm: "Market conditions continue to be volatile, and, therefore, we remain cautious in deploying our capital. The news surrounding Fannie Mae and Freddie Mac simply highlights the continued risks in the financial system, notwithstanding the rally in financial stocks over the past week. We anticipate keeping our leverage relatively low into the third quarter pending resolution of some of the uncertainty in the market, but with spreads on agency [residential mortgage-backed securities] still robust we expect to be able to continue to increase our core earnings on our investment portfolio.” More.