AGNC(US:AGNC)2025-10-20 20:06Financial Performance - Comprehensive income per common share for Q3 2025 was $0.78, consisting of $0.72 net income and $0.06 other comprehensive income [5]. - Net income for the three months ended September 30, 2025, was $806 million, compared to a net loss of $140 million in the previous quarter [34]. - Comprehensive income available to common stockholders for Q3 2025 was $825 million, a significant recovery from a loss of $130 million in Q2 2025 [37]. - The net income available to common stockholders was $764 million, compared to a net loss of $178 million in the previous quarter [34]. - Other gain (loss), net for the third quarter was a gain of $688 million, or $0.65 per common share, compared to a net loss of $(274) million in the prior quarter [26]. Asset and Equity Metrics - Tangible net book value per common share increased to $8.28, a 6.0% rise from $7.81 as of June 30, 2025 [5][10]. - The total assets of the company as of September 30, 2025, were $108,969 million, an increase from $102,021 million at the end of the previous quarter [32]. - Average stockholders' equity increased to $10.732 billion in Q3 2025, up from $10.118 billion in Q2 2025, reflecting a growth of 6.1% [41]. - Total liabilities increased to $97,525 million from $91,674 million in the previous quarter [32]. Investment Portfolio - The investment portfolio totaled $90.8 billion, with $76.3 billion in Agency MBS and $13.8 billion in net forward purchases/sales of Agency MBS [5][11]. - Total investment securities at fair value increased to $76.923 billion as of September 30, 2025, up from $73.979 billion in June 2025, representing a growth of 2.6% [41]. - Average net TBA portfolio at fair value surged to $13.841 billion as of September 30, 2025, compared to $8.263 billion in June 2025, an increase of 67.5% [41]. Income and Expense Analysis - Interest income increased to $903 million for the quarter, up from $830 million in the prior quarter, while interest expense rose to $755 million from $668 million [34]. - The annualized net interest spread for the quarter was 1.78%, a decrease from 2.01% in the prior quarter [17]. - Average total cost of funds increased to 3.17% in Q3 2025 from 2.86% in Q2 2025, indicating a rise of 10.9% [39]. - Average net interest spread decreased to 1.78% in Q3 2025 from 2.01% in Q2 2025, a decline of 11.4% [39]. Dividends and Returns - The company declared dividends of $0.36 per common share, consistent with the previous quarter [34]. - Economic return on tangible common equity for the quarter was 10.6%, driven by $0.36 dividends and a $0.47 increase in tangible net book value [7][8]. - Economic return on tangible common equity was 10.6% in Q3 2025, a significant recovery from a loss of 1.0% in Q2 2025 [41]. - AGNC Investment Corp. has paid over $15 billion in common stock dividends since its inception, demonstrating a strong track record of providing substantial monthly dividend income [49]. Risk Management and Forward-Looking Statements - The company utilizes dynamic risk management strategies to protect its portfolio from interest rate and market risks [48]. - Forward-looking statements indicate potential risks including changes in monetary policy and market conditions that could affect future performance [52]. Non-GAAP Financial Measures - Non-GAAP financial measures such as "net spread and dollar roll income" provide additional transparency into the company's financial performance [53]. - The company believes that including TBA dollar roll income in its non-GAAP measures is meaningful as it reflects the economic equivalence to holding Agency MBS [56]. - A reconciliation of GAAP comprehensive income to non-GAAP "net spread and dollar roll income" is provided in the release [58].