AGNC Investment Corp. Announces Fourth Quarter 2025 Financial Results

Core Insights - AGNC Investment Corp. reported strong financial results for Q4 2025, with a comprehensive income of $0.89 per common share, driven by a net income of $0.83 per common share and a tangible net book value increase of 7.2% from the previous quarter [5][6][9]. Financial Highlights - The company declared dividends of $0.36 per common share for Q4 2025, contributing to an economic return on tangible common equity of 11.6% for the quarter [5][6]. - The total investment portfolio reached $94.8 billion as of December 31, 2025, primarily composed of $81.1 billion in Agency mortgage-backed securities (MBS) [5][10]. - The tangible net book value per common share increased to $8.88, up $0.60 from $8.28 as of September 30, 2025 [5][9]. Annual Performance - For the full year 2025, AGNC achieved a 22.7% economic return on tangible common equity, with a total stock return of 34.8%, significantly outperforming the S&P 500 Index [6][7]. - The average projected constant prepayment rate (CPR) for the portfolio was 9.6% as of December 31, 2025, reflecting an increase from 8.6% in the previous quarter [13]. Market Conditions - The fourth quarter saw Agency MBS as the best-performing domestic fixed income asset class, with an annual total return of 8.6%, the highest since 2002, attributed to favorable monetary policy and reduced volatility [7][8]. - The macroeconomic environment remains supportive for Agency MBS, with expectations of continued lower interest rates and potential further tightening of mortgage spreads [8]. Capital Markets Activity - AGNC issued 34.9 million shares of common equity through At-the-Market offerings, generating net proceeds of $356 million [5][6]. - The company also issued $345 million of 8.75% Series H Fixed-Rate preferred equity during the year [5]. Leverage and Liquidity - As of December 31, 2025, AGNC maintained a leverage ratio of 7.2x tangible net book value "at risk," with unencumbered cash and Agency MBS totaling $7.6 billion, representing 64% of tangible equity [5][22].