AGNC(AGNC) - 2025 Q1 - Quarterly Results

Financial Performance - Comprehensive income per common share for Q1 2025 was $0.12, consisting of$ 0.02 net income and $0.10 other comprehensive income[5] - Net income available to common stockholders decreased to$ 15 million in Q1 2025 from $86 million in Q4 2024, a decline of 82.6%[36] - Comprehensive income available to common stockholders was$ 108 million in Q1 2025, compared to a loss of $93 million in Q4 2024[36] - Economic return on tangible common equity for the quarter was 2.4%, driven by$ 0.36 dividends and a $0.16 decline in tangible net book value[5] - Economic return on tangible common equity was 2.4% for the three months ended March 31, 2025, compared to a loss of (0.6)% in the previous quarter[43] Dividends - Dividends declared per common share for the first quarter totaled$ 0.36[5] - Total dividends declared since the IPO in May 2008 reached $14.3 billion, or$ 49.00 per common share[30] - Dividends declared per common share remained stable at $0.36 for both Q1 2025 and Q4 2024[36] - AGNC Investment Corp. has paid over$ 14 billion in common stock dividends since its inception, indicating a strong commitment to returning value to shareholders[51] Assets and Liabilities - Total assets increased to $95,889 million as of March 31, 2025, up from$ 88,015 million at December 31, 2024, representing a growth of 3.2%[34] - Total liabilities rose to $85,847 million as of March 31, 2025, compared to$ 78,253 million at December 31, 2024, an increase of 9.8%[34] - The investment portfolio totaled $78.9 billion, with$ 70.5 billion in Agency MBS and $7.5 billion in net forward purchases/sales of Agency MBS[5] Income and Interest - Net interest income for Q1 2025 was$ 159 million, compared to $115 million in Q4 2024, reflecting a 38.3% increase[36] - Interest income for Q1 2025 was$ 846 million, slightly down from $856 million in Q4 2024[36] - The annualized net interest spread for Q1 was 2.12%, up from 1.91% in the previous quarter[19] - Average total cost of funds improved to 2.75% in Q1 2025, down from 2.89% in Q4 2024[41] - Average funding cost for repurchase agreements was 4.45% for the three months ended March 31, 2025, down from 4.86% in the prior quarter[43] Shareholder Equity - Tangible net book value per common share decreased by$ 0.16, or -1.9%, to $8.25 as of March 31, 2025[5] - Average stockholders' equity increased to$ 9.935 billion as of March 31, 2025, compared to $9.637 billion at December 31, 2024, reflecting a growth of 3.1%[43] - The tangible net book value per common share decreased to$ 8.25 in Q1 2025 from $8.41 in Q4 2024[34] Investment Performance - Net spread and dollar roll income increased to$ 0.44 per common share from $0.37 in the prior quarter[20] - Net spread and dollar roll income available to common stockholders increased to$ 403 million in Q1 2025 from $329 million in Q4 2024, representing a 22.5% growth[39] - Adjusted net interest and dollar roll income for Q1 2025 was$ 477 million, compared to $405 million in Q4 2024, reflecting a 17.8% increase[41] - Unrealized gain on investment securities measured at fair value through net income was$ 1,183 million in Q1 2025, compared to a loss of $1,895 million in Q4 2024[36] Market and Economic Conditions - Forward-looking statements indicate potential risks including changes in monetary policy and market conditions that could impact future performance[54] - The company utilizes dynamic risk management strategies to protect its portfolio from interest rate and market risks, enhancing its investment stability[50] - The company primarily invests in Agency residential mortgage-backed securities (Agency MBS), which are guaranteed against credit losses by government-sponsored entities[50] Other Information - Archived audio of the stockholder call will be available for a limited time, allowing stakeholders to review the discussions and insights shared[48] - 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[55] - The average tangible net book value "at risk" leverage during the period was calculated by dividing the sum of daily weighted average Investment Securities Repo and other debt by the average stockholders' equity adjusted to exclude goodwill[52] - AGNC's business serves as a significant source of private capital for the U.S. residential housing market, reflecting its role in the broader economy[51] - The company plans to continue leveraging its expertise in managing mortgage assets across various market cycles to optimize returns[51]