AGNC(AGNC)2025-02-21 21:02Financial Performance - AGNC generated a positive economic return of 13.2% in 2024, with monthly dividends totaling 0.29 per common share [157]. - Total comprehensive income for AGNC was 0.30 per share in 2023 [161]. - Net spread and dollar roll income per diluted common share decreased to 2.61 in 2023, primarily due to a narrowing of the net interest rate spread, which averaged 242 basis points in 2024, down from 306 basis points in 2023 [161]. - Economic interest income for 2024 was 2,560 million in 2023 [205]. - Net income available to common stockholders reached 32 million in 2023 [196]. - Comprehensive income available to common stockholders for fiscal year 2024 was 187 million in 2023, compared to a loss of 1,474 million, down from 1,676 million in 2022 [227]. - Total loss on investment securities for fiscal year 2024 was 266 million in 2023 and a loss of 2,028 million, a notable increase from 4,630 million in 2022 [232]. Investment Portfolio - As of December 31, 2024, the investment portfolio totaled 60.2 billion in 2023, representing a 21.5% increase [174]. - The fair value of Agency RMBS increased to 53.8 billion in 2023, a growth of 21.8% [174]. - The total investment securities, including TBA securities, reached 60.2 billion in 2023, marking a 26.7% increase [174]. - The total net TBA securities fair value was 5.4 billion in 2023, indicating a 27.8% increase [174]. - The fair value of non-Agency RMBS decreased to 43 million in 2023, a decline of 65.1% [180]. - The total carrying value of CRT securities was 723 million in 2023, a decrease of 12.4% [180]. - The total fixed-rate Agency RMBS and TBA securities accounted for 99% of the total investment securities in 2024, consistent with 98% in 2023 [180]. Leverage and Borrowings - AGNC's average "at risk" leverage for 2024 was 7.2x tangible stockholders' equity, compared to 7.4x in 2023 [165]. - As of December 31, 2024, total mortgage borrowings amounted to 54,247 million in 2023 [236]. - The leverage ratio as of December 31, 2024, was 7.2x, compared to 7.0x in 2023, indicating a slight increase in leverage [235]. - The average daily net TBA position was $59,690 million, with a leverage ratio of 7.2:1 [212]. - The average mortgage borrowings increased by 11% in fiscal year 2024 compared to the previous year [220]. Interest Rates and Economic Conditions - The 30-year primary mortgage rate was near 7% at year-end 2024, with expectations for Agency RMBS supply in 2025 to align with investor demand [159]. - The average interest rate on mortgage borrowings, excluding interest rate swap periodic income, increased by 18 basis points in fiscal year 2024 [220]. - Changes in long-term interest rates significantly impact prepayment rates, with rates generally increasing when interest rates fall [188]. - The average interest rate swap pay-fixed rate for fiscal year 2024 was 1.16%, up from 0.55% in 2023 [225]. Regulatory and Compliance - The company is subject to regulatory requirements as a REIT, including maintaining at least 55% of its assets in qualifying real estate interests [29]. - The company has not maintained relationships with unconsolidated entities or financial partnerships for off-balance sheet arrangements as of December 31, 2024 [251]. Employee and Workplace Culture - The company maintained a workforce of 53 full-time employees as of December 31, 2024, with a low voluntary turnover rate averaging less than 1 employee per year over the past three years [36]. - The company was recertified as a Great Place to Work™ in 2023 based on employee feedback, reflecting high levels of employee satisfaction [38]. - As of December 31, 2024, 40% of the company's employees were women and 32% were ethnically diverse [41]. - The company offers a 401(k) Savings Plan with matching contributions of 100% up to 6% of each employee's eligible compensation [43]. - The company maintains a pay-for-performance compensation philosophy, with higher-level employees receiving a greater proportion of variable incentive-based compensation [42]. - The company provides comprehensive medical coverage, including dental and vision, as well as paid time off and parental leave [43]. - The company conducts mandatory compliance training on various topics, including insider trading and anti-harassment policies [40]. - The company promotes open communication and has a Code of Ethics and Conduct that applies to all employees [39]. - The company offers professional development programs, including reimbursement for approved courses and mentoring opportunities [40].