AGNC(AGNC) - 2025 Q1 - Quarterly Report

Financial Performance - AGNC reported total comprehensive income of $0.12 per common share for Q1 2025, with an economic return on tangible common equity of 2.4%[130]. - Net income available to common stockholders decreased to$ 15 million for the three months ended March 31, 2025, compared to $412 million in the same period of 2024, indicating a decline of 96.4%[164]. - Comprehensive income available to common stockholders was$ 108 million in Q1 2025, down from $335 million in Q1 2024[188]. - Economic return on tangible common equity for Q1 2025 was 2.4%, a decrease from 5.7% in Q1 2024[164]. - Interest income for the three months ended March 31, 2025, was$ 846 million, up from $642 million in the same period of 2024, reflecting a year-over-year increase of 32%[164]. - Economic interest income for Q1 2025 was$ 952 million, a 33% increase from $716 million in Q1 2024, with a yield of 4.87% compared to 4.56%[171]. - Operating expenses for the three months ended March 31, 2025, were$ 28 million, up from $24 million in the same period of 2024, representing a 16.7% increase[164]. - Total gain on investment securities was$ 1,031 million in Q1 2025, compared to a loss of $639 million in Q1 2024[190]. - Total gain (loss) on derivative instruments and other securities was a loss of$ 1,019 million in Q1 2025, compared to a gain of $1,059 million in Q1 2024[193]. Investment Portfolio - The investment portfolio increased by approximately$ 5 billion to $78.9 billion at quarter-end, with a weighted average coupon of just over 5.0%[137]. - As of March 31, 2025, the investment portfolio totaled$ 78.9 billion, up from $73.3 billion as of December 31, 2024, representing a growth of approximately 7.6%[146]. - The fair value of Agency RMBS increased to$ 70.5 billion as of March 31, 2025, compared to $65.5 billion at the end of 2024, reflecting a growth of about 7.6%[146]. - The total investment securities reached$ 80.58 billion with a fair value of $78.80 billion, yielding 5.06% as of March 31, 2025[146]. - The average investment portfolio increased by 24% to$ 61.7 billion in Q1 2025, primarily due to an increase in the capital base[175]. - The total fixed rate Agency RMBS and TBA securities amounted to $79.73 billion with a fair value of$ 77.93 billion as of March 31, 2025, maintaining a yield of 5.02%[151]. - The average coupon for 30-year RMBS was 5.05% as of March 31, 2025, slightly up from 5.04% at the end of 2024[151]. - The total fair value of non-Agency RMBS was $15 million as of March 31, 2025, with a yield of 5.28%[151]. - The total CMBS was valued at$ 235 million with a fair value of $212 million, yielding 6.82% as of March 31, 2025[151]. Liabilities and Equity - Total liabilities increased to$ 85,847 million as of March 31, 2025, compared to $78,253 million as of December 31, 2024, reflecting a rise of 9.8%[163]. - Total stockholders' equity as of March 31, 2025, was$ 10,042 million, up from $9,762 million as of December 31, 2024, representing a growth of 2.9%[163]. - The company's net book value per common share decreased to$ 8.80 as of March 31, 2025, down from $9.00 as of December 31, 2024[163]. - The weighted average number of common shares outstanding increased to 918.3 million in Q1 2025 from 702.2 million in Q1 2024[164]. Interest Rates and Economic Factors - The 30-year fixed-rate mortgage rate as of March 31, 2025, was 6.60%, slightly down from 6.74% a year earlier[171]. - The average interest rate on mortgage borrowings decreased by 100 basis points in Q1 2025, attributed to lower short-term interest rates[184]. - The 10-year Treasury yield fluctuated by more than 100 basis points in early April, reflecting heightened market volatility[131]. - The 30-year Agency current coupon yield decreased to 5.51%, down 32 basis points from the previous quarter[144]. - The 30-year Agency RMBS current coupon spread to the blended 5- and 10-year Treasury rate widened to 160 basis points, the top of its five-quarter trading range[134]. Risk Management and Liquidity - The company manages counterparty risk by diversifying funding across multiple counterparties and regions[209]. - The company's liquidity management strategy includes maintaining excess liquidity through unencumbered liquid assets to satisfy collateral requirements[208]. - The maximum amount at risk with any repurchase agreement counterparties was less than 2% of tangible stockholders' equity as of March 31, 2025, with the top five repo counterparties representing 5% of tangible stockholders' equity[210]. - The company aims to maintain excess liquidity by holding unencumbered liquid assets to satisfy collateral requirements and support additional borrowings[208]. - The company does not maintain relationships with unconsolidated entities or financial partnerships for off-balance sheet arrangements as of March 31, 2025[213]. Stock Repurchase and Capital Raising - The company has authorized a stock repurchase plan with an aggregate repurchase price of$ 1.0 billion remaining for repurchase through December 31, 2026[212]. - The company has established a new At-the-Market Offering Program in April 2025 to raise additional equity capital[212]. - The equity capital markets are a source of capital for business growth, dependent on market conditions and investor demand[212].