AGNC Investment Corp. Announces First Quarter 2025 Financial Results
AGNC Investment Corp (Nasdaq: AGNC) reported Q1 2025 financial results with a comprehensive income of $0.12 per share, consisting of $0.02 net income and $0.10 other comprehensive income. The company's tangible net book value decreased by -1.9% to $8.25 per share from $8.41 in Q4 2024.
Key highlights include a $78.9 billion investment portfolio, primarily composed of $70.5 billion in Agency MBS and $7.5 billion in TBA securities. The company achieved a 2.4% economic return on tangible common equity, comprising $0.36 in dividends and a $0.16 decrease in tangible book value. AGNC maintained a 7.5x tangible net book value leverage ratio with $6.0 billion in unencumbered assets.
The company's net spread and dollar roll income was $0.44 per share, up from $0.37 in the previous quarter. The portfolio's average asset yield was 4.78%, with a net interest spread of 2.12%.
AGNC Investment Corp (Nasdaq: AGNC) ha riportato i risultati finanziari del primo trimestre 2025 con un reddito complessivo di 0,12$ per azione, costituito da 0,02$ di utile netto e 0,10$ di altri redditi complessivi. Il valore contabile netto tangibile della società è diminuito del -1,9%, scendendo a 8,25$ per azione rispetto agli 8,41$ del quarto trimestre 2024.
Tra i punti salienti si segnala un portafoglio investimenti di 78,9 miliardi di dollari, composto principalmente da 70,5 miliardi in Agency MBS e 7,5 miliardi in titoli TBA. La società ha realizzato un rendimento economico del 2,4% sul capitale tangibile comune, comprensivo di 0,36$ di dividendi e una riduzione di 0,16$ nel valore contabile tangibile. AGNC ha mantenuto un rapporto di leva finanziaria sul valore contabile netto tangibile di 7,5x con 6,0 miliardi di dollari in attività non vincolate.
Il reddito netto da spread e dollar roll della società è stato di 0,44$ per azione, in aumento rispetto ai 0,37$ del trimestre precedente. Il rendimento medio del portafoglio è stato del 4,78%, con uno spread netto di interesse del 2,12%.
AGNC Investment Corp (Nasdaq: AGNC) reportó los resultados financieros del primer trimestre de 2025 con un ingreso integral de 0,12$ por acción, compuesto por 0,02$ de ingreso neto y 0,10$ de otros ingresos integrales. El valor contable neto tangible de la compañía disminuyó un -1,9%, situándose en 8,25$ por acción desde 8,41$ en el cuarto trimestre de 2024.
Los aspectos destacados incluyen un portafolio de inversiones de 78,9 mil millones de dólares, compuesto principalmente por 70,5 mil millones en Agency MBS y 7,5 mil millones en valores TBA. La compañía logró un rendimiento económico del 2,4% sobre el capital tangible común, que comprende 0,36$ en dividendos y una disminución de 0,16$ en el valor contable tangible. AGNC mantuvo una ratio de apalancamiento del valor contable neto tangible de 7,5x con 6,0 mil millones de dólares en activos sin gravámenes.
Los ingresos netos por spread y dollar roll de la compañía fueron de 0,44$ por acción, aumentando desde 0,37$ en el trimestre anterior. El rendimiento promedio de los activos del portafolio fue del 4,78%, con un spread neto de intereses del 2,12%.
AGNC Investment Corp (나스닥: AGNC)는 2025년 1분기 재무 실적을 발표하며 주당 포괄손익 0.12달러를 기록했습니다. 이는 0.02달러의 순이익과 0.10달러의 기타 포괄손익으로 구성됩니다. 회사의 유형 순자산 장부가치는 2024년 4분기 8.41달러에서 -1.9% 감소한 주당 8.25달러를 기록했습니다.
주요 내용으로는 789억 달러 규모의 투자 포트폴리오가 있으며, 주로 705억 달러의 에이전시 MBS와 75억 달러의 TBA 증권으로 구성되어 있습니다. 회사는 유형 보통주 자본에 대해 2.4%의 경제적 수익률을 달성했으며, 이는 0.36달러의 배당금과 0.16달러의 유형 장부가치 감소를 포함합니다. AGNC는 7.5배의 유형 순자산 장부가 레버리지 비율을 유지하며 60억 달러의 미담보 자산을 보유하고 있습니다.
회사의 순 스프레드 및 달러 롤 수익은 주당 0.44달러로, 이전 분기의 0.37달러에서 증가했습니다. 포트폴리오의 평균 자산 수익률은 4.78%였으며, 순이자 스프레드는 2.12%였습니다.
AGNC Investment Corp (Nasdaq : AGNC) a publié ses résultats financiers du premier trimestre 2025 avec un revenu global de 0,12$ par action, comprenant 0,02$ de revenu net et 0,10$ d'autres revenus globaux. La valeur comptable nette tangible de la société a diminué de -1,9% pour atteindre 8,25$ par action contre 8,41$ au quatrième trimestre 2024.
Les points clés incluent un portefeuille d'investissement de 78,9 milliards de dollars, principalement composé de 70,5 milliards en Agency MBS et 7,5 milliards en titres TBA. La société a réalisé un rendement économique de 2,4% sur les capitaux propres tangibles ordinaires, comprenant 0,36$ de dividendes et une baisse de 0,16$ de la valeur comptable tangible. AGNC a maintenu un ratio d'endettement basé sur la valeur comptable nette tangible de 7,5x avec 6,0 milliards de dollars d'actifs non grevés.
Le revenu net des spreads et des dollar rolls de la société s'est élevé à 0,44$ par action, en hausse par rapport à 0,37$ au trimestre précédent. Le rendement moyen des actifs du portefeuille était de 4,78%, avec un écart d'intérêt net de 2,12%.
AGNC Investment Corp (Nasdaq: AGNC) meldete die Finanzergebnisse für das erste Quartal 2025 mit einem umfassenden Einkommen von 0,12$ pro Aktie, bestehend aus 0,02$ Nettogewinn und 0,10$ sonstigem umfassendem Einkommen. Der greifbare Netto-Buchwert des Unternehmens sank um -1,9% auf 8,25$ pro Aktie von 8,41$ im vierten Quartal 2024.
Zu den wichtigsten Punkten gehört ein Investitionsportfolio von 78,9 Milliarden Dollar, das hauptsächlich aus 70,5 Milliarden Dollar in Agency MBS und 7,5 Milliarden Dollar in TBA-Wertpapieren besteht. Das Unternehmen erzielte eine wirtschaftliche Rendite von 2,4% auf das greifbare Stammkapital, bestehend aus 0,36$ Dividenden und einem Rückgang des greifbaren Buchwerts um 0,16$. AGNC hielt ein Hebelverhältnis des greifbaren Netto-Buchwerts von 7,5x mit 6,0 Milliarden Dollar ungebundenen Vermögenswerten aufrecht.
Das Netto-Spread- und Dollar-Roll-Einkommen des Unternehmens betrug 0,44$ pro Aktie, ein Anstieg gegenüber 0,37$ im Vorquartal. Die durchschnittliche Rendite des Portfolios betrug 4,78%, mit einem Nettozins-Spread von 2,12%.
- Net spread and dollar roll income increased to $0.44 per share from $0.37
- Strong liquidity position with $6.0 billion in unencumbered assets
- Total stock return with dividends was 7.8% for the quarter
- Net interest spread improved to 2.12% from 1.91% in previous quarter
- Tangible net book value decreased by 1.9% to $8.25 per share
- Comprehensive income declined to $0.12 per share
- Agency MBS spreads widened, impacting book value
- Net realized losses of $245 million on sales of investment securities
Insights
AGNC delivered solid 2.4% economic return with improved spread income despite modest book value decline in volatile markets.
AGNC Investment Corp's Q1 2025 results demonstrate resilience in a volatile environment. The company achieved a 2.4% economic return for the quarter despite experiencing a 1.9% decline in tangible net book value to $8.25 per share. This modest book value erosion resulted primarily from widening Agency MBS spreads following the April tariff announcement.
The most significant positive is AGNC's net spread and dollar roll income of $0.44 per share, representing a substantial 19% increase from $0.37 in the previous quarter. This improvement provides strong dividend coverage with an 82% payout ratio ($0.36 dividend vs. $0.44 income), enhancing distribution sustainability.
The company's interest rate risk management appears effective, with their net interest spread widening to 2.12% from 1.91% quarter-over-quarter as funding costs declined faster than asset yields. Their hedging strategy remains comprehensive, with swaps, treasuries and other hedges covering 91% of repo and TBA liabilities.
AGNC increased leverage slightly to 7.5x from 7.2x while maintaining substantial defensive positioning with $6.0 billion in unencumbered cash and Agency MBS (63% of tangible equity). This balanced approach provides protection against market disruptions while allowing the company to capitalize on wider spreads.
Management emphasized that while Agency MBS spread widening caused short-term book value pressure, it enhances long-term return prospects. This dynamic helped drive the company's 7.8% total stock return (with dividends reinvested) during the quarter, outperforming broader equity markets despite the challenging conditions.
The successful issuance of 49.7 million shares through ATM offerings for $509 million reflects continued investor demand and management's confidence in deployment opportunities in the current market environment.
FIRST QUARTER 2025 FINANCIAL HIGHLIGHTS
$0.12 $0.02 $0.10
$0.44 - Excludes less than
$(0.01)
- Excludes less than
$8.25 - Decreased
$(0.16) 1.9% , from$8.41
- Decreased
$0.36 2.4% economic return on tangible common equity for the quarter- Comprised of
$0.36 $(0.16)
- Comprised of
OTHER FIRST QUARTER HIGHLIGHTS
$78.9 billion $70.5 billion $7.5 billion $0
- 7.5x tangible net book value "at risk" leverage as of March 31, 2025
- 7.3x average tangible net book value "at risk" leverage for the quarter
- Unencumbered cash and Agency MBS totaled
$6.0 billion - Excludes unencumbered CRT and non-Agency securities
- Represents
63% of the Company's tangible equity as of March 31, 2025
8.3% average projected portfolio life CPR as of March 31, 20257.0% actual portfolio CPR for the quarter
2.12% annualized net interest spread for the quarter2- Issued 49.7 million shares of common equity through At-the-Market ("ATM") Offerings for net proceeds of
$509 million
___________
1. | Represents a non-GAAP measure. Please refer to the Reconciliation of GAAP Comprehensive Income (Loss) to Net Spread and Dollar Roll Income and Use of Non-GAAP Financial Information included in this release for additional information. |
2. | Please refer to Net Interest Spread Components by Funding Source included in this release for additional information regarding the Company's annualized net interest spread. |
MANAGEMENT REMARKS
"In the first quarter, the prospect that potential governmental policy actions could adversely impact economic growth and accelerate inflationary pressures caused investor sentiment to turn decidedly more cautious," said Peter Federico, the Company's President, Chief Executive Officer and Chief Investment Officer. "These concerns, in turn, initially drove a flight to high quality assets –
"Following the April tariff announcement, financial market volatility increased substantially, and Agency MBS spreads to benchmark rates widened. With our conservative leverage profile and ample liquidity at quarter end, AGNC was well-positioned for this instability. Although the widening of Agency MBS spreads drove a modest decline in our tangible book value, our anticipated portfolio returns have increased commensurately with today's wider spread environment. Moreover, at current valuation levels, we believe Agency MBS offer investors a compelling return opportunity on both a levered and unlevered basis."
"AGNC's
TANGIBLE NET BOOK VALUE PER COMMON SHARE
As of March 31, 2025, the Company's tangible net book value per common share was
INVESTMENT PORTFOLIO
As of March 31, 2025, the Company's investment portfolio totaled
$77.9 billion $75.9 billion $67.9 billion $7.5 billion $0.1 billion $0.5 billion
$2.0 billion
$0
As of March 31, 2025, 30-year and 15-year fixed-rate Agency MBS and TBA securities represented
As of March 31, 2025, the Company's fixed-rate Agency MBS and TBA securities' weighted average coupon was
5.05% for 30-year fixed-rate securities;2.65% for 15-year fixed-rate securities; and3.12% for 20-year fixed-rate securities.
The Company accounts for TBA securities and other forward settling securities as derivative instruments and recognizes TBA dollar roll income in other gain (loss), net on the Company's financial statements. As of March 31, 2025, such positions had a fair value of
CONSTANT PREPAYMENT RATES
The Company's weighted average projected CPR for the remaining life of its Agency securities held as of March 31, 2025 increased to
The weighted average cost basis of the Company's investment portfolio was
ASSET YIELDS, COST OF FUNDS AND NET INTEREST RATE SPREAD
The Company's average asset yield on its investment portfolio, excluding the TBA position, was
For the first quarter, the weighted average interest rate on the Company's repurchase agreements was
The Company's annualized net interest spread, including the TBA position and interest rate swaps and excluding "catch-up" premium amortization, for the first quarter was
NET SPREAD AND DOLLAR ROLL INCOME
The Company recognized net spread and dollar roll income (a non-GAAP financial measure) for the first quarter of
The Company's cost of funds, net interest rate spread and net spread and dollar income excludes the impact of the Company's
A reconciliation of the Company's total comprehensive income (loss) to net spread and dollar roll income and additional information regarding the Company's use of non-GAAP measures are included later in this release.
LEVERAGE
As of March 31, 2025,
As of March 31, 2025, the Company's repurchase agreements used to fund its investment portfolio ("Investment Securities Repo") had a weighted average interest rate of
HEDGING ACTIVITIES
As of March 31, 2025, interest rate swaps,
As of March 31, 2025, the Company's pay fixed interest rate swap position totaled
As of March 31, 2025, the Company had a net short
OTHER GAIN (LOSS), NET
For the first quarter, the Company recorded a net loss of
$(245) million $1,183 million $293 million $(862) million $(19) million $10 million $(500) million U.S. Treasury positions;$23 million $54 million $(11) million $(7) million
OTHER COMPREHENSIVE INCOME
During the first quarter, the Company recorded other comprehensive income of
COMMON STOCK DIVIDENDS
During the first quarter, the Company declared dividends of
FINANCIAL STATEMENTS, OPERATING PERFORMANCE AND PORTFOLIO STATISTICS
The following measures of operating performance include net spread and dollar roll income; economic interest income; economic interest expense; and the related per common share measures and financial metrics derived from such information, which are non-GAAP financial measures. Please refer to "Use of Non-GAAP Financial Information" later in this release for further discussion of non-GAAP measures.
AGNC INVESTMENT CORP. | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(in millions, except per share data) | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Assets: | |||||||||
Agency securities, at fair value (including pledged securities of | $ 70,363 | $ 65,367 | $ 67,938 | $ 59,586 | $ 53,615 | ||||
Agency securities transferred to consolidated variable interest entities, at fair value (pledged securities) | 95 | 97 | 106 | 106 | 114 | ||||
Credit risk transfer securities, at fair value (including pledged securities of | 640 | 633 | 620 | 683 | 753 | ||||
Non-Agency securities, at fair value, and other mortgage credit investments (including pledged securities of and | 290 | 315 | 334 | 317 | 353 | ||||
3,280 | 1,575 | 2,570 | 2,441 | 1,836 | |||||
Cash and cash equivalents | 455 | 505 | 507 | 530 | 505 | ||||
Restricted cash | 1,263 | 1,266 | 1,279 | 1,376 | 1,368 | ||||
Derivative assets, at fair value | 98 | 205 | 157 | 131 | 84 | ||||
Receivable for investment securities sold (including pledged securities of | 909 | — | 1,706 | — | 5 | ||||
Receivable under reverse repurchase agreements | 17,604 | 17,137 | 13,494 | 13,662 | 12,424 | ||||
Goodwill | 526 | 526 | 526 | 526 | 526 | ||||
Other assets | 366 | 389 | 353 | 327 | 293 | ||||
Total assets | $ 95,889 | $ 88,015 | $ 89,590 | $ 79,685 | $ 71,876 | ||||
Liabilities: | |||||||||
Repurchase agreements | $ 66,138 | $ 60,798 | $ 65,979 | $ 56,947 | $ 49,971 | ||||
Debt of consolidated variable interest entities, at fair value | 62 | 64 | 69 | 71 | 76 | ||||
Payable for investment securities purchased | 1,843 | 74 | 324 | 208 | 636 | ||||
Derivative liabilities, at fair value | 70 | 94 | 53 | 64 | 65 | ||||
Dividends payable | 148 | 143 | 134 | 125 | 118 | ||||
Obligation to return securities borrowed under reverse repurchase agreements, at fair value | 17,180 | 16,676 | 13,009 | 13,248 | 12,115 | ||||
Accounts payable and other liabilities | 406 | 404 | 366 | 370 | 317 | ||||
Total liabilities | 85,847 | 78,253 | 79,934 | 71,033 | 63,298 | ||||
Stockholders' equity: | |||||||||
Preferred Stock - aggregate liquidation preference of | 1,634 | 1,634 | 1,634 | 1,634 | 1,634 | ||||
Common stock - shares issued and outstanding, respectively | 9 | 9 | 8 | 8 | 7 | ||||
Additional paid-in capital | 17,769 | 17,264 | 16,746 | 15,960 | 15,521 | ||||
Retained deficit | (8,872) | (8,554) | (8,320) | (8,338) | (7,990) | ||||
Accumulated other comprehensive loss | (498) | (591) | (412) | (612) | (594) | ||||
Total stockholders' equity | 10,042 | 9,762 | 9,656 | 8,652 | 8,578 | ||||
Total liabilities and stockholders' equity | $ 95,889 | $ 88,015 | $ 89,590 | $ 79,685 | $ 71,876 | ||||
Tangible net book value per common share 1 | $ 8.25 | $ 8.41 | $ 8.82 | $ 8.40 | $ 8.84 | ||||
AGNC INVESTMENT CORP. | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(in millions, except per share data) | |||||||||
(unaudited) | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
Interest income: | |||||||||
Interest income | $ 846 | $ 856 | $ 756 | $ 695 | $ 642 | ||||
Interest expense | 687 | 741 | 820 | 698 | 672 | ||||
Net interest income (expense) | 159 | 115 | (64) | (3) | (30) | ||||
Other gain (loss), net: | |||||||||
Realized (loss) gain on sale of investment securities, net | (245) | (88) | 106 | (115) | (91) | ||||
Unrealized gain (loss) on investment securities measured at fair value through net income, net | 1,183 | (1,895) | 1,742 | (261) | (471) | ||||
(Loss) gain on derivative instruments and other investments, net | (1,019) | 2,022 | (1,408) | 355 | 1,059 | ||||
Total other (loss) gain, net | (81) | 39 | 440 | (21) | 497 | ||||
Expenses: | |||||||||
Compensation and benefits | 19 | 22 | 21 | 15 | 16 | ||||
Other operating expense | 9 | 10 | 9 | 9 | 8 | ||||
Total operating expense | 28 | 32 | 30 | 24 | 24 | ||||
Net income (loss) | 50 | 122 | 346 | (48) | 443 | ||||
Dividend on preferred stock | 35 | 36 | 33 | 32 | 31 | ||||
Net income (loss) available (attributable) to common stockholders | $ 15 | $ 86 | $ 313 | $ (80) | $ 412 | ||||
Net income (loss) | $ 50 | $ 122 | $ 346 | $ (48) | $ 443 | ||||
Unrealized gain (loss) on investment securities measured at fair value through other comprehensive income (loss), net | 93 | (179) | 200 | (18) | (77) | ||||
Comprehensive income (loss) | 143 | (57) | 546 | (66) | 366 | ||||
Dividend on preferred stock | 35 | 36 | 33 | 32 | 31 | ||||
Comprehensive income (loss) available (attributable) to common stockholders | $ 108 | $ (93) | $ 513 | $ (98) | $ 335 | ||||
Weighted average number of common shares outstanding - basic | 918.3 | 882.8 | 807.2 | 740.0 | 702.2 | ||||
Weighted average number of common shares outstanding - diluted | 921.9 | 886.5 | 810.1 | 740.0 | 704.2 | ||||
Net income (loss) per common share - basic | $ 0.02 | $ 0.10 | $ 0.39 | $ (0.11) | $ 0.59 | ||||
Net income (loss) per common share - diluted | $ 0.02 | $ 0.10 | $ 0.39 | $ (0.11) | $ 0.59 | ||||
Comprehensive income (loss) per common share - basic | $ 0.12 | $ (0.11) | $ 0.64 | $ (0.13) | $ 0.48 | ||||
Comprehensive income (loss) per common share - diluted | $ 0.12 | $ (0.11) | $ 0.63 | $ (0.13) | $ 0.48 | ||||
Dividends declared per common share | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.36 | ||||
AGNC INVESTMENT CORP. | |||||||||
RECONCILIATION OF GAAP COMPREHENSIVE INCOME (LOSS) TO NET SPREAD AND DOLLAR ROLL INCOME (NON-GAAP MEASURE) 2 | |||||||||
(in millions, except per share data) | |||||||||
(unaudited) | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
Comprehensive income (loss) available (attributable) to common stockholders | $ 108 | $ (93) | $ 513 | $ (98) | $ 335 | ||||
Adjustments to exclude realized and unrealized (gains) losses reported through net income: | |||||||||
Realized (gain) loss on sale of investment securities, net | 245 | 88 | (106) | 115 | 91 | ||||
Unrealized (gain) loss on investment securities measured at fair value through net income, net | (1,183) | 1,895 | (1,742) | 261 | 471 | ||||
(Gain) loss on derivative instruments and other securities, net | 1,019 | (2,022) | 1,408 | (355) | (1,059) | ||||
Adjustment to exclude unrealized (gain) loss reported through other comprehensive income: | |||||||||
Unrealized (gain) loss on available-for-sale securities measure at fair value through other comprehensive income, net | (93) | 179 | (200) | 18 | 77 | ||||
Other adjustments: | |||||||||
Estimated "catch up" premium amortization cost (benefit) due to change in CPR forecast 3 | 2 | (51) | 24 | (14) | (10) | ||||
TBA dollar roll income 4,5 | 23 | 12 | 4 | 5 | — | ||||
Interest rate swap periodic income, net 4,6 | 293 | 329 | 456 | 494 | 536 | ||||
Other interest income (expense), net 4,7 | (11) | (8) | (12) | (32) | (35) | ||||
Net spread and dollar roll income available to common stockholders | $ 403 | $ 329 | $ 345 | $ 394 | $ 406 | ||||
Weighted average number of common shares outstanding - basic | 918.3 | 882.8 | 807.2 | 740.0 | 702.2 | ||||
Weighted average number of common shares outstanding - diluted | 921.9 | 886.5 | 810.1 | 741.9 | 704.2 | ||||
Net spread and dollar roll income per common share - basic | $ 0.44 | $ 0.37 | $ 0.43 | $ 0.53 | $ 0.58 | ||||
Net spread and dollar roll income per common share - diluted | $ 0.44 | $ 0.37 | $ 0.43 | $ 0.53 | $ 0.58 | ||||
AGNC INVESTMENT CORP. | |||||||||
NET INTEREST SPREAD COMPONENTS BY FUNDING SOURCE 2 | |||||||||
(in millions, except per share data) | |||||||||
(unaudited) | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
Adjusted net interest and dollar roll income: | |||||||||
Economic interest income: | |||||||||
Investment securities - GAAP interest income 8 | $ 846 | $ 856 | $ 756 | $ 695 | $ 642 | ||||
Estimated "catch-up" premium amortization cost (benefit) due to change in CPR forecast 3 | 2 | (51) | 24 | (14) | (10) | ||||
TBA dollar roll income - implied interest income 4,9 | 104 | 84 | 39 | 93 | 84 | ||||
Economic interest income | 952 | 889 | 819 | 774 | 716 | ||||
Economic interest expense: | |||||||||
Repurchase agreements and other debt - GAAP interest expense | (687) | (741) | (820) | (698) | (672) | ||||
TBA dollar roll income - implied interest expense 4,10 | (81) | (72) | (35) | (88) | (84) | ||||
Interest rate swap periodic income, net 4,6 | 293 | 329 | 456 | 494 | 536 | ||||
Economic interest expense | (475) | (484) | (399) | (292) | (220) | ||||
Adjusted net interest and dollar roll income | $ 477 | $ 405 | $ 420 | $ 482 | $ 496 | ||||
Net interest spread: | |||||||||
Average asset yield: | |||||||||
Investment securities - average asset yield | 4.78 % | 5.02 % | 4.54 % | 4.70 % | 4.53 % | ||||
Estimated "catch-up" premium amortization cost (benefit) due to change in CPR forecast | 0.02 % | (0.30) % | 0.14 % | (0.10) % | (0.07) % | ||||
Investment securities average asset yield, excluding "catch-up" premium amortization | 4.80 % | 4.72 % | 4.68 % | 4.60 % | 4.46 % | ||||
TBA securities - average implied asset yield 9 | 5.58 % | 5.66 % | 5.82 % | 5.47 % | 5.40 % | ||||
Average asset yield 11 | 4.87 % | 4.80 % | 4.73 % | 4.69 % | 4.56 % | ||||
Average total cost of funds: | |||||||||
Repurchase agreements and other debt - average funding cost | 4.45 % | 4.86 % | 5.41 % | 5.44 % | 5.45 % | ||||
TBA securities - average implied funding cost 10 | 4.34 % | 4.74 % | 5.10 % | 5.11 % | 5.34 % | ||||
Average cost of funds, before interest rate swap periodic income, | 4.44 % | 4.85 % | 5.40 % | 5.39 % | 5.44 % | ||||
Interest rate swap periodic income, net 12 | (1.69) % | (1.96) % | (2.88) % | (3.39) % | (3.86) % | ||||
Average total cost of funds 13 | 2.75 % | 2.89 % | 2.52 % | 2.00 % | 1.58 % | ||||
Average net interest spread | 2.12 % | 1.91 % | 2.21 % | 2.69 % | 2.98 % | ||||
AGNC INVESTMENT CORP. | |||||||||
KEY STATISTICS* | |||||||||
(in millions, except per share data) | |||||||||
(unaudited) | |||||||||
Three Months Ended | |||||||||
Key Balance Sheet Statistics: | March 31, | December 31, | September 30, | June 30, | March 31, | ||||
Investment securities: 8 | |||||||||
Fixed-rate Agency MBS, at fair value - as of period end | $ 68,468 | $ 64,049 | $ 66,668 | $ 58,729 | $ 52,767 | ||||
Other Agency MBS, at fair value - as of period end | $ 1,990 | $ 1,415 | $ 1,376 | $ 963 | $ 962 | ||||
Credit risk transfer securities, at fair value - as of period end | $ 640 | $ 633 | $ 620 | $ 683 | $ 753 | ||||
Non-Agency MBS, at fair value - as of period end 14 | $ 227 | $ 251 | $ 273 | $ 257 | $ 294 | ||||
Total investment securities, at fair value - as of period end | $ 71,325 | $ 66,348 | $ 68,937 | $ 60,632 | $ 54,776 | ||||
Total investment securities, at cost - as of period end | $ 73,148 | $ 69,446 | $ 69,961 | $ 63,599 | $ 57,464 | ||||
Total investment securities, at par - as of period end | $ 72,130 | $ 68,431 | $ 69,032 | $ 62,549 | $ 56,287 | ||||
Average investment securities, at cost | $ 70,725 | $ 68,188 | $ 66,674 | $ 59,198 | $ 56,664 | ||||
Average investment securities, at par | $ 69,704 | $ 67,181 | $ 65,748 | $ 58,066 | $ 55,455 | ||||
TBA securities: 15 | |||||||||
Net TBA portfolio - as of period end, at fair value | $ 7,473 | $ 6,861 | $ 4,068 | $ 5,348 | $ 8,448 | ||||
Net TBA portfolio - as of period end, at cost | $ 7,429 | $ 6,887 | $ 4,067 | $ 5,318 | $ 8,405 | ||||
Net TBA portfolio - as of period end, carrying value | $ 44 | $ (26) | $ 1 | $ 30 | $ 43 | ||||
Average net TBA portfolio, at cost | $ 7,428 | $ 5,936 | $ 2,650 | $ 6,805 | $ 6,190 | ||||
Average repurchase agreements and other debt 16 | $ 61,707 | $ 59,690 | $ 59,322 | $ 50,784 | $ 48,730 | ||||
Average stockholders' equity 17 | $ 9,935 | $ 9,637 | $ 9,151 | $ 8,481 | $ 8,328 | ||||
Tangible net book value per common share 1 | $ 8.25 | $ 8.41 | $ 8.82 | $ 8.40 | $ 8.84 | ||||
Tangible net book value "at risk" leverage - average 18 | 7.3 :1 | 7.2 :1 | 7.2 :1 | 7.2 :1 | 7.0 :1 | ||||
Tangible net book value "at risk" leverage - as of period end 19 | 7.5 :1 | 7.2 :1 | 7.2 :1 | 7.4 :1 | 7.1 :1 | ||||
Key Performance Statistics: | |||||||||
Investment securities: 8 | |||||||||
Average coupon | 5.08 % | 5.03 % | 5.02 % | 4.98 % | 4.90 % | ||||
Average asset yield | 4.78 % | 5.02 % | 4.54 % | 4.70 % | 4.53 % | ||||
Average asset yield, excluding "catch-up" premium amortization | 4.80 % | 4.72 % | 4.68 % | 4.60 % | 4.46 % | ||||
Average coupon - as of period end | 5.12 % | 5.03 % | 5.01 % | 5.01 % | 4.93 % | ||||
Average asset yield - as of period end | 4.87 % | 4.77 % | 4.68 % | 4.70 % | 4.52 % | ||||
Average actual CPR for securities held during the period | 7.0 % | 9.6 % | 7.3 % | 7.1 % | 5.7 % | ||||
Average forecasted CPR - as of period end | 8.3 % | 7.7 % | 13.2 % | 9.2 % | 10.4 % | ||||
Total premium amortization benefit (cost) | $ (39) | $ 11 | $ (69) | $ (28) | $ (37) | ||||
TBA securities: | |||||||||
Average coupon - as of period end 20 | 4.98 % | 5.29 % | 4.78 % | 5.27 % | 5.22 % | ||||
Average implied asset yield 9 | 5.58 % | 5.66 % | 5.82 % | 5.47 % | 5.40 % | ||||
Combined investment and TBA securities - average asset yield, excluding "catch-up" premium amortization 11 | 4.87 % | 4.80 % | 4.73 % | 4.69 % | 4.56 % | ||||
Cost of funds: 13 | |||||||||
Repurchase agreements - average funding cost | 4.45 % | 4.86 % | 5.41 % | 5.44 % | 5.45 % | ||||
TBA securities - average implied funding cost 10 | 4.34 % | 4.74 % | 5.10 % | 5.11 % | 5.34 % | ||||
Interest rate swaps - average periodic income 12 | (1.69) % | (1.96) % | (2.88) % | (3.39) % | (3.86) % | ||||
Average total cost of funds, inclusive of TBAs and interest rate swap periodic income, net 11 | 2.75 % | 2.89 % | 2.52 % | 2.00 % | 1.58 % | ||||
Repurchase agreements - average funding cost as of period end | 4.47 % | 4.76 % | 5.23 % | 5.50 % | 5.46 % | ||||
Interest rate swaps - average net pay/(receive) rate as of period end 21 | (2.49) % | (3.00) % | (3.51) % | (3.90) % | (4.37) % | ||||
Net interest spread: | |||||||||
Combined investment and TBA securities average net interest spread, excluding "catch-up" premium amortization | 2.12 % | 1.91 % | 2.21 % | 2.69 % | 2.98 % | ||||
Expenses % of average stockholders' equity - annualized | 1.13 % | 1.33 % | 1.31 % | 1.13 % | 1.15 % | ||||
Economic return (loss) on tangible common equity - unannualized 22 | 2.4 % | (0.6) % | 9.3 % | (0.9) % | 5.7 % | ||||
Key Interest Rate Hedge Statistics | |||||||||
Interest rate swaps: | |||||||||
Average interest rate swaps, notional amount (excluding forward starting swaps), net | $ 44,179 | $ 39,483 | $ 44,781 | $ 45,263 | $ 43,903 | ||||
Average pay-fixed rate | 1.73 % | 1.45 % | 1.38 % | 1.18 % | 0.84 % | ||||
Average receive-floating rate | 4.38 % | 4.71 % | 5.36 % | 5.50 % | 5.67 % | ||||
Average short | $ 18,677 | $ 15,731 | $ 13,259 | $ 13,105 | $ 11,714 | ||||
Average short | 3.98 % | 3.78 % | 3.70 % | 3.77 % | 3.63 % | ||||
Average long | $ 2,828 | $ 2,113 | $ 2,616 | $ 2,073 | $ 1,689 | ||||
Average long | 4.37 % | 4.13 % | 4.05 % | 4.41 % | 4.19 % | ||||
Average short | $ 3,195 | $ 2,873 | $ 791 | $ 1,528 | $ 4,313 | ||||
Average short | 4.50 % | 4.40 % | 4.35 % | 4.41 % | 4.42 % | ||||
Average long | $ 1,843 | $ — | $ 750 | $ 118 | $ — | ||||
Average long | 4.21 % | — % | 4.03 % | 4.22 % | — % | ||||
Average reverse repurchase agreement rate | 4.34 % | 4.65 % | 5.47 % | 5.35 % | 5.29 % | ||||
*Except as noted below, average numbers for each period are weighted based on days on the Company's books and records. All percentages are annualized, unless otherwise noted.
Numbers in financial tables may not total due to rounding.
- Tangible net book value per common share excludes preferred stock liquidation preference and goodwill.
- Table includes non-GAAP financial measures and/or amounts derived from non-GAAP measures. Refer to "Use of Non- GAAP Financial Information" for additional discussion of non-GAAP financial measures.
- "Catch-up" premium amortization cost/benefit is reported in interest income on the accompanying consolidated statements of operations.
- Amount reported in gain (loss) on derivatives instruments and other securities, net in the accompanying consolidated statements of operations.
- Dollar roll income represents the price differential, or "price drop," between the TBA price for current month settlement versus the TBA price for forward month settlement. Amount includes dollar roll income (loss) on long and short TBA securities. Amount excludes TBA mark-to-market adjustments.
- Represents periodic interest rate swap settlements. Amount excludes interest rate swap termination fees, mark-to-market adjustments and price alignment interest income (expense) on margin deposits.
- Other interest income (expense), net includes interest income on cash and cash equivalents, price alignment interest income (expense) on margin deposits, and other miscellaneous interest income (expense).
- Investment securities include Agency MBS, CRT and non-Agency securities. Amounts exclude TBA and forward settling securities accounted for as derivative instruments in the accompanying consolidated balance sheets and statements of operations.
- The average implied asset yield for TBA dollar roll transactions is extrapolated by adding the average TBA implied funding cost (Note 10) to the net dollar roll yield. The net dollar roll yield is calculated by dividing dollar roll income (Note 5) by the average net TBA balance (cost basis) outstanding for the period.
- The implied funding cost/benefit of TBA dollar roll transactions is determined using the "price drop" (Note 5) and market- based assumptions regarding the "cheapest-to-deliver" collateral that can be delivered to satisfy the TBA contract, such as the anticipated collateral's weighted average coupon, weighted average maturity and projected 1-month CPR. The average implied funding cost/benefit for all TBA transactions is weighted based on the Company's daily average TBA balance outstanding for the period.
- Amount calculated on a weighted average basis based on average balances outstanding during the period and their respective asset yield/funding cost.
- Represents interest rate swap periodic cost/income measured as a percent of total mortgage funding (Investment Securities Repo, other debt and net TBA securities (at cost)).
- Cost of funds excludes
U.S. Treasury and other supplemental hedges used to hedge a portion of the Company's interest rate risk (such as swaptions and SOFR futures) andU.S. Treasury Repo. - Non-Agency MBS, at fair value, excludes
$63 million $64 million $61 million $60 million $59 million - Includes TBA dollar roll position and, if applicable, forward settling securities accounted for as derivative instruments in the accompanying consolidated balance sheets and statements of operations. Amount is net of short TBA securities.
- Average repurchase agreements and other debt excludes
U.S. Treasury Repo. - Average stockholders' equity calculated as the average month-ended stockholders' equity during the quarter.
- Average tangible net book value "at risk" leverage during the period was calculated by dividing the sum of the daily weighted average Investment Securities Repo, other debt, and TBA and forward settling securities (at cost) outstanding for the period by the sum of average stockholders' equity adjusted to exclude goodwill. Leverage excludes
U.S. Treasury Repo. - Tangible net book value "at risk" leverage as of period end was calculated by dividing the sum of the amount outstanding under Investment Securities Repo, other debt, net TBA position and forward settling securities (at cost), and net receivable / payable for unsettled investment securities outstanding by the sum of total stockholders' equity adjusted to exclude goodwill. Leverage excludes
U.S. Treasury Repo. - Average TBA coupon is for the long TBA position only.
- Includes forward starting swaps not yet in effect as of reported period-end.
- Economic return (loss) on tangible common equity represents the sum of the change in tangible net book value per common share and dividends declared on common stock during the period over the beginning tangible net book value per common share.
- The implied yields for Treasury futures are calculated based on the "cheapest-to-deliver" security that can be delivered to satisfy the futures contract identified at the time the futures contract was initiated using data sourced from a third-party model.
STOCKHOLDER CALL
AGNC invites stockholders, prospective stockholders and analysts to attend the AGNC stockholder call on April 22, 2025 at 8:30 am ET. Interested persons who do not plan on asking a question and have internet access are encouraged to utilize the webcast at www.AGNC.com. Those who plan on participating in the Q&A or do not have internet available may access the call by dialing (877) 300-5922 (
A slide presentation will accompany the call and will be available in the Investors section of the Company's website at www.AGNC.com. Select the Q1 2025 Stockholder Presentation link to download the presentation in advance of the stockholder call.
An archived audio of the stockholder call combined with the slide presentation will be available on the AGNC website after the call on April 22, 2025. In addition, there will be a phone recording available one hour after the call on April 22, 2025 through April 29, 2025. Those who are interested in hearing the recording of the presentation, can access it by dialing (877) 344-7529 (
For further information, please contact Investor Relations at (301) 968-9300 or IR@AGNC.com.
ABOUT AGNC INVESTMENT CORP.
Founded in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading investor in Agency residential mortgage-backed securities (Agency MBS), which benefit from a guarantee against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae. We invest on a leveraged basis, financing our Agency MBS assets primarily through repurchase agreements, and utilize dynamic risk management strategies intended to protect the value of our portfolio from interest rate and other market risks.
AGNC has a track record of providing favorable long-term returns for our stockholders through substantial monthly dividend income, with over
We use our website (www.AGNC.com) and AGNC's LinkedIn and X accounts to distribute information about the Company. Investors should monitor these channels in addition to our press releases, filings with the
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements or from our historic performance due to a variety of important factors, including, without limitation, changes in monetary policy and other factors that affect interest rates, MBS spreads to benchmark interest rates, the forward yield curve, or prepayment rates; the availability and terms of financing; changes in the market value of the Company's assets; general economic or geopolitical conditions; liquidity and other conditions in the market for Agency securities and other financial markets; and legislative and regulatory changes that could adversely affect the business of the Company. Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements are included in the Company's periodic reports filed with the Securities and Exchange Commission ("SEC"). Copies are available on the SEC's website, www.sec.gov. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.
USE OF NON-GAAP FINANCIAL INFORMATION
In addition to the results presented in accordance with GAAP, the Company's results of operations discussed in this release include certain non-GAAP financial information, including "net spread and dollar roll income"; "economic interest income" and "economic interest expense"; and the related per common share measures and certain financial metrics derived from such non- GAAP information, such as "cost of funds" and "net interest spread."
Net spread and dollar roll income available to common stockholders is measured as comprehensive income (loss) available (attributable) to common stockholders (GAAP measure) adjusted to: (i) exclude gains/losses on investment securities recognized through net income or other comprehensive income and gains/losses on derivative instruments and other securities (GAAP measures), (ii) exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and (iii) include interest rate swap periodic income/ cost, TBA dollar roll income and other miscellaneous interest income/expense. As defined, net spread and dollar roll income available to common stockholders represents net interest income/ expense (GAAP measure) adjusted to exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and to include TBA dollar roll income, interest rate swap periodic income/cost and other miscellaneous interest income/expense, less total operating expense (GAAP measure) and dividends on preferred stock (GAAP measure).
By providing users of the Company's financial information with such measures in addition to the related GAAP measures, the Company believes users have greater transparency into the information used by the Company's management in its financial and operational decision-making. The Company also believes that it is important for users of its financial information to consider information related to the Company's current financial performance without the effects of certain transactions that are not necessarily indicative of its current investment portfolio performance and operations.
Specifically, the Company believes the inclusion of TBA dollar roll income in its non-GAAP measures is meaningful as TBAs are economically equivalent to holding and financing generic Agency MBS using short-term repurchase agreements but are recognized under GAAP in gain/ loss on derivative instruments in the Company's statement of operations. Similarly, the Company believes that the inclusion of periodic interest rate swap settlements in such measures, which are recognized under GAAP in gain/loss on derivative instruments, is meaningful as interest rate swaps are the primary instrument the Company uses to economically hedge against fluctuations in the Company's borrowing costs and inclusion of periodic interest rate swap settlements is more indicative of the Company's total cost of funds than interest expense alone. Finally, the Company believes the exclusion of "catch-up" adjustments to premium amortization cost is meaningful as it excludes the cumulative effect from prior reporting periods due to current changes in future prepayment expectations and, therefore, exclusion of such "catch-up" cost or benefit is more indicative of the current earnings potential of the Company's investment portfolio.
However, because such measures are incomplete measures of the Company's financial performance and involve differences from results computed in accordance with GAAP, they should be considered as supplementary to, and not as a substitute for, results computed in accordance with GAAP. In addition, because not all companies use identical calculations, the Company's presentation of such non-GAAP measures may not be comparable to other similarly- titled measures of other companies.
A reconciliation of GAAP comprehensive income (loss) to non-GAAP "net spread and dollar roll income" is included in this release.
CONTACT:
Investors - (301) 968-9300
Media - (301) 968-9303
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SOURCE AGNC Investment Corp.
FAQ
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