AGNC Investment Corp. Announces Fourth Quarter 2024 Financial Results

Core Viewpoint - AGNC Investment Corp. reported its financial results for the fourth quarter of 2024, highlighting a positive economic return of 13.2% for the year, driven by favorable conditions in the Agency MBS market and a stable dividend payout [6][7]. Fourth Quarter 2024 Financial Highlights - The company issued 53.2 million shares of common equity through At-the-Market offerings, generating net proceeds of $511 million [4]. - The tangible net book value per common share decreased by 4.6% to $8.41 from $8.82 in the previous quarter [8]. - The economic return on tangible common equity for the fourth quarter was -0.6%, consisting of $0.36 in dividends per common share and a decline of $(0.41) in tangible net book value per common share [7][9]. Full Year 2024 Highlights - AGNC achieved a total economic return of 13.2% for the year, with dividends declared totaling $1.44 per common share [9]. - The company issued 202.1 million shares of common equity through ATM offerings, raising net proceeds of $2.0 billion [9]. Investment Portfolio - As of December 31, 2024, the investment portfolio totaled $73.3 billion, primarily composed of $65.5 billion in Agency MBS [9]. - The weighted average coupon for fixed-rate Agency MBS and TBA securities was 5.02%, up from 4.90% in the previous quarter [11]. - The average projected constant prepayment rate (CPR) for the portfolio decreased to 7.7% from 13.2% in the prior quarter [12]. Leverage and Liquidity - The company's leverage ratio remained stable at 7.2x as of December 31, 2024, with a significant liquidity position of $6.1 billion in unencumbered cash and Agency MBS [7][20]. - The weighted average interest rate on repurchase agreements decreased to 4.76% from 5.23% in the previous quarter [21]. Management Remarks - The CEO expressed a positive outlook for Agency MBS, citing a favorable investment environment due to the Federal Reserve's shift in monetary policy and declining inflationary pressures [6]. - The company anticipates continued attractive return opportunities in the Agency MBS market, supported by stable spreads to benchmark rates [6].