AGNC INVT(AGNCM) - 2025 Q2 - Quarterly Results

Financial Performance - Comprehensive loss per common share for Q2 2025 was $(0.13), consisting of $(0.17) net loss and $0.05 other comprehensive income[4] - Net income (loss) for the quarter ended June 30, 2025, was $(140) million, a decrease from $50 million in the previous quarter, indicating a significant decline[34] - The company reported a net income (loss) available to common stockholders of $(178) million for the quarter, compared to $15 million in the previous quarter[34] - Comprehensive income (loss) for the quarter was $(92) million, down from $143 million in the previous quarter, reflecting a decrease of 164.3%[34] - Economic return on tangible common equity for the quarter was -1.0%, driven by $0.36 dividends and a $(0.44) decrease in tangible net book value[6] - Economic return on tangible common equity was -1.0% in June 2025, compared to 2.4% in March 2025, indicating a significant decline[41] Dividends - Dividends declared per common share for the second quarter totaled $0.36[4] - Dividends declared per common share remained stable at $0.36 for the last four quarters[34] - AGNC Investment Corp. has paid over $14 billion in common stock dividends since its inception, indicating a strong commitment to returning value to shareholders[49] Assets and Liabilities - Total assets increased to $102,021 million as of June 30, 2025, up from $95,889 million in March 2025, representing an increase of 1.18%[32] - Total liabilities increased to $91,674 million as of June 30, 2025, from $85,847 million in March 2025, marking an increase of 4.3%[32] - The investment portfolio as of June 30, 2025, was $82.3 billion, including $73.3 billion in Agency MBS[4] - Unencumbered cash and Agency MBS totaled $6.4 billion, representing 65% of the company's tangible equity[8] Book Value and Equity - Tangible net book value per common share decreased to $7.81, a decline of $(0.44) or -5.3% from $8.25 as of March 31, 2025[4] - The tangible net book value per common share was $7.81 as of June 30, 2025, compared to $8.25 in March 2025, indicating a decrease of 5.3%[32] - Average stockholders' equity grew to $10,118 million in June 2025, up from $9,935 million in March 2025, reflecting a 1.8% increase[41] Income and Expenses - Net interest income for the three months ended June 30, 2025, was $162 million, compared to $159 million in the previous quarter, showing a slight increase of 1.3%[34] - Interest income for the quarter was $830 million, a decrease from $846 million in the previous quarter, reflecting a decline of 1.9%[34] - Average total cost of funds in Q2 2025 was 2.86%, compared to 2.75% in Q1 2025[39] - Expenses as a percentage of average stockholders' equity were annualized at 1.11% for the period ending June 30, 2025, slightly down from 1.13% in March 2025[41] Investment Performance - Average projected portfolio life CPR was 7.8% as of June 30, 2025, with an actual portfolio CPR of 8.7% for the quarter[8] - Net spread and dollar roll income for Q2 2025 was $0.38 per common share, down from $0.44 in the prior quarter[18] - Net spread and dollar roll income available to common stockholders was $388 million in Q2 2025, a decrease from $403 million in Q1 2025[37] - Adjusted net interest and dollar roll income for Q2 2025 was $457 million, compared to $477 million in Q1 2025[39] - Average asset yield on the investment portfolio was 4.89% for Q2 2025, compared to 4.78% for the prior quarter[15] - Average asset yield increased to 4.89% in June 2025, compared to 4.78% in March 2025[41] Risk Management - The company utilizes dynamic risk management strategies to protect its portfolio from interest rate and market risks, which is crucial for maintaining asset value[48] - Forward-looking statements indicate potential risks including changes in monetary policy and market conditions that could impact future performance[52] Non-GAAP Measures - Non-GAAP financial measures such as "net spread and dollar roll income" provide additional transparency into the company's financial performance beyond GAAP results[53] - The company believes that including TBA dollar roll income in non-GAAP measures is significant as it reflects the economic equivalence of holding Agency MBS[56] - A reconciliation of GAAP comprehensive income to non-GAAP "net spread and dollar roll income" is provided, highlighting the differences in financial performance metrics[58]