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AGNC Investment Corp. Announces First Quarter 2025 Financial Results
AGNCAGNC(AGNC) Prnewswire·2025-04-21 20:01

Core Viewpoint - AGNC Investment Corp. reported a favorable economic return of 2.4% for Q1 2025, despite broader market declines, with a total stock return of 7.8% when dividends are reinvested [5][10]. Financial Highlights - The company declared dividends of 0.36percommonshareforthefirstquarter[10][26].−Thetangiblenetbookvaluepercommonsharedecreasedby1.90.36 per common share for the first quarter [10][26]. - The tangible net book value per common share decreased by 1.9% to 8.25 from 8.41attheendofQ42024[7][10].−Theinvestmentportfoliototaled8.41 at the end of Q4 2024 [7][10]. - The investment portfolio totaled 78.9 billion, primarily consisting of 70.5billioninAgencyMBS[8][10].EconomicPerformance−Theeconomicreturnontangiblecommonequitywascomposedof70.5 billion in Agency MBS [8][10]. Economic Performance - The economic return on tangible common equity was composed of 0.36 in dividends and a (0.16)declineintangiblenetbookvaluepercommonshare[6][10].−Thenetspreadanddollarrollincomeincreasedto(0.16) decline in tangible net book value per common share [6][10]. - The net spread and dollar roll income increased to 0.44 per common share from 0.37inthepreviousquarter[10][17].InvestmentPortfolio−AsofMarch31,2025,theweightedaveragecouponforfixed−rateAgencyMBSandTBAsecuritieswas5.030.37 in the previous quarter [10][17]. Investment Portfolio - As of March 31, 2025, the weighted average coupon for fixed-rate Agency MBS and TBA securities was 5.03%, slightly up from 5.02% in the previous quarter [9][10]. - The company's investment portfolio included 96% in 30-year fixed-rate Agency MBS [8][10]. Leverage and Liquidity - The tangible 'at risk' leverage ratio was 7.5x as of March 31, 2025, with a liquidity position of 6.0 billion in unencumbered cash and Agency MBS [6][20][10]. - The average cost of funds for the first quarter was 2.75%, down from 2.89% in the prior quarter [15][31]. Market Conditions - Investor sentiment turned cautious due to potential governmental policy actions impacting economic growth and inflation, leading to a flight to high-quality assets [5][6]. - Following the April tariff announcement, financial market volatility increased, resulting in wider Agency MBS spreads [6][10].