Invesco Mortgage Capital (US:IVR)2026-01-29 21:18Financial Performance - Net income per common share was $0.68, a decrease from $0.74 in Q3 2025, while earnings available for distribution per common share was $0.56, down from $0.58[9][12] - Net income attributable to common stockholders for the year ended December 31, 2025, was $88,173,000, a substantial increase from $34,763,000 in 2024[30] - Net income attributable to common stockholders for Q4 2025 was $48,243,000, compared to a loss of $5,472,000 in Q4 2024, representing a significant recovery[45] - Comprehensive income for the year ended December 31, 2025, was $101,106,000, compared to $59,357,000 in 2024, indicating a significant improvement[32] Investment Portfolio - The company's investment portfolio totaled $6.3 billion, consisting of $5.4 billion in Agency RMBS and $0.9 billion in Agency CMBS[4] - The company’s mortgage-backed securities at fair value increased to $6,276,609,000 as of December 31, 2025, from $5,445,508,000 in 2024[35] Dividends - The company declared a common stock dividend of $0.36 per share, an increase from $0.34 in Q3 2025, and announced a shift to monthly dividend payments[21] - Earnings available for distribution increased to $39,868,000 in Q4 2025 from $32,253,000 in Q4 2024, reflecting a year-over-year growth of 23.5%[48] Interest Income and Expenses - Total interest income for Q4 2025 was $77.9 million, an increase of $5.0 million from Q3 2025, while total interest expense rose to $56.6 million[12] - Interest income for Q4 2025 was $77,901,000, an increase from $72,916,000 in Q3 2025 and $76,110,000 in Q4 2024[30] - Total interest expense for Q4 2025 was $56,643,000, with an effective interest expense of $30,247,000, resulting in an effective cost of funds of 2.24%[52] - Average cost of funds decreased to 4.20% in Q4 2025 from 5.13% in Q4 2024, reflecting improved funding efficiency[61] Assets and Liabilities - Total assets as of December 31, 2025, were $6,475,894,000, compared to $5,688,034,000 as of December 31, 2024, reflecting a growth of approximately 13.9%[35] - Total liabilities as of December 31, 2025, were $5,678,350,000, up from $4,957,305,000 in 2024, reflecting an increase of approximately 14.5%[35] Ratios - The debt-to-equity ratio increased to 7.0x from 6.7x as of September 30, 2025, reflecting an improved investment environment[4][12] - The debt-to-equity ratio as of December 31, 2025, was 7.0, up from 6.7 as of September 30, 2025[58] Earnings and Margins - The average net interest rate margin improved to 1.11% in Q4 2025, up from 0.90% in Q3 2025[12] - Basic income per common share for Q4 2025 was $0.68, up from a loss of $0.09 per share in Q4 2024[45] - Effective net interest income for Q4 2025 was $47,654,000, with an effective interest rate margin of 3.07%[54] - Average earning assets rose to $5,868,897,000 in Q4 2025, compared to $5,440,662,000 in Q4 2024, indicating a growth of 7.9%[61] Shareholder Actions - The company issued 849,987 shares of common stock for net cash proceeds of $7.2 million during Q4 2025[22] - The company repurchased and retired 76,356 shares of Series C Preferred Stock with a carrying value of $1.8 million during Q4 2025[23] Derivative Instruments - The company reported a realized loss on derivative instruments of $18,863,000 in Q4 2025, compared to a gain of $157,864,000 in Q4 2024[46] - The company did not report any TBA dollar roll income in Q4 2025, compared to $249,000 in Q4 2024[48]