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AGNC(AGNC) - 2024 Q4 - Annual Results
AGNCAGNC(AGNC)2025-01-27 21:06

Financial Performance - Comprehensive loss per common share for Q4 2024 was (0.11),consistingof(0.11), consisting of 0.10 net income and (0.20)othercomprehensiveloss[4]−TheCompanyreportedanetincomeof(0.20) other comprehensive loss[4] - The Company reported a net income of 122 million for the fourth quarter, down from 346millioninthepreviousquarter[34]−Thenetincomeavailabletocommonstockholdersforthefourthquarterwas346 million in the previous quarter[34] - The net income available to common stockholders for the fourth quarter was 86 million, compared to 313millioninthepreviousquarter[34]−ComprehensiveincomeattributabletocommonstockholdersforQ42024was313 million in the previous quarter[34] - Comprehensive income attributable to common stockholders for Q4 2024 was (93) million, compared to 513millioninQ32024[37]−EconomicreturnontangiblecommonequityforQ42024was−0.6513 million in Q3 2024[37] - Economic return on tangible common equity for Q4 2024 was -0.6%, driven by 0.36 dividends per common share and a (0.41)declineintangiblenetbookvalue[4][8]Dividends−TheCompanydeclareddividendsof(0.41) decline in tangible net book value[4][8] Dividends - The Company declared dividends of 0.12 per share for the fourth quarter, totaling 0.36pershareforthequarter,andhasdeclaredatotalof0.36 per share for the quarter, and has declared a total of 14.0 billion in common stock dividends since its IPO in May 2008[27] - The Company declared a total of 1.44individendspercommonsharefortheyear2024[34]−AGNCInvestmentCorp.haspaidover1.44 in dividends per common share for the year 2024[34] - AGNC Investment Corp. has paid over 14 billion in common stock dividends since its inception, demonstrating a strong track record of providing substantial monthly dividend income[49] Investment Portfolio - The investment portfolio totaled 73.3billionasofDecember31,2024,with73.3 billion as of December 31, 2024, with 65.5 billion in Agency MBS and 6.9billioninnetforwardpurchases/salesofAgencyMBS[4][10]−TotalinvestmentsecuritiesatfairvalueasofDecember31,2024,were6.9 billion in net forward purchases/sales of Agency MBS[4][10] - Total investment securities at fair value as of December 31, 2024, were 66.348 billion, a decrease of 3% from 68.937billioninthepreviousquarter[41]−ThecompanyprimarilyinvestsinAgencyresidentialmortgage−backedsecurities(AgencyMBS),whichareguaranteedagainstcreditlossesbyFannieMae,FreddieMac,orGinnieMae[48]FinancialRatiosandMetrics−Tangiblenetbookvaluepercommonsharedecreasedby68.937 billion in the previous quarter[41] - The company primarily invests in Agency residential mortgage-backed securities (Agency MBS), which are guaranteed against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae[48] Financial Ratios and Metrics - Tangible net book value per common share decreased by (0.41) or -4.6% to 8.41asofDecember31,2024,from8.41 as of December 31, 2024, from 8.82 as of September 30, 2024[4][9] - Average projected portfolio life CPR was 7.7% as of December 31, 2024, down from 13.2% as of September 30, 2024[7][13] - Average asset yield on the investment portfolio was 5.02% for Q4 2024, up from 4.54% in the prior quarter[15] - The annualized net interest spread for Q4 2024 was 1.91%, down from 2.21% in the prior quarter[17] - Average total cost of funds before interest rate swap periodic income was 4.85% in Q4 2024, compared to 5.40% in Q3 2024[39] - Average funding cost for repurchase agreements decreased to 4.86% from 5.41% in the previous quarter[41] Income and Expenses - For the fourth quarter, the Company reported net interest income of 115million,comparedtoanetinterestexpenseof115 million, compared to a net interest expense of 64 million in the previous quarter[34] - Economic interest income for Q4 2024 reached 889million,anincreasefrom889 million, an increase from 819 million in Q3 2024[39] - Adjusted net interest and dollar roll income for Q4 2024 was 405million,comparedto405 million, compared to 420 million in Q3 2024[39] - Economic interest expense for Q4 2024 was (484)million,comparedto(484) million, compared to (399) million in Q3 2024[39] Shareholder Information - The weighted average number of common shares outstanding was 882.8 million for the fourth quarter, compared to 807.2 million in the previous quarter[34] - The company issued 53.2 million shares of common equity through ATM offerings for net proceeds of $511 million in Q4 2024[7][8] Risk Management and Strategy - AGNC utilizes leveraged financing through repurchase agreements and employs dynamic risk management strategies to protect its portfolio from interest rate and market risks[48] - The economic return on tangible common equity includes changes in tangible net book value per common share and dividends declared, providing insight into the company's performance[52] - Forward-looking statements indicate potential risks and uncertainties that could affect future performance, including changes in monetary policy and market conditions[52] Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures, such as net spread and dollar roll income, to provide greater transparency into its financial performance[53] - AGNC's non-GAAP measures include adjustments for gains/losses on investment securities and derivative instruments, reflecting a comprehensive view of its income[56] - The company believes that including TBA dollar roll income in its non-GAAP measures is meaningful as it reflects the economic equivalence of holding Agency MBS[56] Communication and Transparency - AGNC's investor relations can be contacted for further information, highlighting the company's commitment to transparency and communication with stakeholders[47]