Financial Data and Key Metrics Changes - The company's book value per share increased by 5% from $19.25 in the prior quarter to $20.21 as of December 31, 2025 [23] - Earnings Available for Distribution (EAD) rose by $0.01 to $0.74, exceeding the dividend for the quarter [24] - Economic return for Q4 was 8.6%, bringing the full-year economic return to 20.2% [23][24] - Economic leverage decreased to 5.6 turns, down from the previous quarter [8][25] Business Line Data and Key Metrics Changes - The agency portfolio ended 2025 at $93 billion, an increase of nearly $6 billion quarter-over-quarter and $22 billion year-over-year, representing 62% of the firm's capital [9] - The residential credit portfolio reached $8 billion, up $1.1 billion quarter-over-quarter, representing approximately 19% of the firm's capital [13] - The mortgage servicing rights (MSR) portfolio ended at $3.8 billion, a $280 million increase quarter-over-quarter and a 15% increase year-over-year [17] Market Data and Key Metrics Changes - Fixed income markets showed strong performance, with the U.S. aggregate bond index registering the highest total return since 2020 [7] - The yield curve steepened during the quarter as short-term yields fell while long-term yields rose modestly [7] - The agency market experienced significant spread tightening following GSE's MBS purchase announcements [20] Company Strategy and Development Direction - The company aims to increase capital allocation to residential credit and MSR, targeting a long-term equity allocation of 50% Agency MBS, 30% RESI, and 20% MSR [78][79] - The diversified housing finance model is expected to continue performing well for shareholders, with a focus on maintaining market leadership across various strategies [21][22] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains solid, with the labor market showing signs of softness but limited layoffs [5][6] - Management expressed confidence in the durability of the swaps market as a hedge and the overall stability of the agency market [31][32] - The company anticipates continued growth in the non-agency market and is well-positioned to benefit from increased liquidity in the non-QM market [20][21] Other Important Information - The company raised $560 million of common equity in Q4, bringing total equity raised in 2025 to $2.9 billion [9] - The efficiency ratio improved to 1.31% for Q4, with a full-year ratio of 1.42% [27] Q&A Session Summary Question: Update on mark-to-market book values - Management reported a 4% increase in book value, inclusive of dividend accrual [30] Question: Portfolio returns and comfort level with dividend in 2026 - Management expressed confidence in achieving mid-teens returns and stated the dividend is safe [31][32] Question: Insights on MSR portfolio and current coupon MSR - Management discussed the infrastructure set up for active participation in the MSR market and the potential for increased origination [36][40] Question: Impact of G-fee cuts on prepayment environment - Management indicated that a G-fee cut on purchase loans could be beneficial, but broad cuts might negatively impact the MBS market [46] Question: Risks that could change the low-risk environment - Management identified global fiscal risks and asset market euphoria as potential concerns [60][61] Question: Attractiveness of buying lower-coupon MBS - Management noted that valuations on low-coupon MBS are tight, and better ways to manage risk exist [68] Question: Likelihood of GSE portfolio caps being increased - Management stated uncertainty regarding the increase of caps but noted the GSEs have significant capacity [84]

Group 1 - The WisdomTree U.S. High Yield Corporate Bond, Zero Duration Index provides exposure to U.S. high-yield corporate bonds while targeting zero interest-rate duration through a systematic short overlay in U.S. Treasuries and/or Treasury futures adjusted monthly [1] - The bond universe includes USD-denominated issues from publicly listed, U.S.-domiciled issuers rated below BBB–/Baa3, with a minimum maturity of 1 year and a minimum par outstanding of 500 million USD; distressed names rated C or below are excluded [1] - The selection process emphasizes fundamental screens focusing on positive free cash flow and removes the sector-relative bottom 5% by liquidity [1] Group 2 - The weighting of the bond basket tilts towards higher income using recovery-adjusted OAS scaled by estimated probability of default, with an issuer cap of 2% to limit concentration [1] - The bond basket is reconstituted and rebalanced semi-annually in May and November, while the hedge is refreshed on a monthly basis [1]

Financial Performance - Net income was $29.5 million, or $0.29 per share[11] - Adjusted Distributable Earnings were $54.2 million, or $0.53 per share[11] - The economic return for the quarter was 2.2% (non-annualized)[11] - Book value per common share was $13.40 after total dividends declared of $0.39 for the quarter[11] Portfolio Composition and Performance - The adjusted long credit portfolio increased by 11% to $3.56 billion[11, 19] - The long Agency portfolio decreased by 18% to $220.7 million[11, 27] - The Longbridge portfolio increased by 37% to $750.0 million[11, 30] Leverage and Capital Structure - The recourse debt-to-equity ratio was 1.8:1[11] - The total debt-to-equity ratio was 8.6:1, including all non-recourse borrowings[11] Loan Origination - Loans Acquired During Q3 2025 totaled $1806.5 million, including Non-QM Loans ($994.4mm), Residential Transition Loans ($186.9mm), Commercial Mortgage Loans ($126.6mm) and Reverse Mortgage Loans ($498.6mm)[37]

Financial Performance - Net income was $42.9 million, or $0.45 per share[11] - Economic return was 3.3% for the quarter (non-annualized)[11] - Adjusted Distributable Earnings were $45.0 million, or $0.47 per share[11] - The company declared total dividends of $0.39 for the quarter, resulting in a book value per common share of $13.49[11] Portfolio Composition and Strategy - The adjusted long credit portfolio increased by 1% to $3.32 billion as of June 30, 2025, compared to $3.30 billion as of March 31, 2025[11, 18] - The long Agency portfolio increased by 5% to $268.5 million, driven by net purchases[11, 26] - The Longbridge portfolio decreased by 1% to $545.6 million, as a securitization slightly exceeded new originations[11, 29] - 87% of deployed capital was allocated to credit, 2% to agency, and 11% to Longbridge[12] Leverage and Capital Structure - Recourse debt-to-equity ratio was 1.7:1[11] - Total debt-to-equity ratio was 8.7:1, including non-recourse borrowings[11] - Total stockholders' equity was $1.67 billion, including $1.33 billion of common equity and $332 million of preferred equity[11]

Financial Performance - The company reported a net loss of $0.29 per share for Q2 2025, compared to a net income of $0.18 per share in Q1 2025 [11] - Book value decreased from $7.94 in Q1 2025 to $7.21 in Q2 2025 [11] - Average MBS balances increased from $5,996 million in Q1 2025 to $6,866 million in Q2 2025 [15] - Economic leverage ratio remained constant at 7.8 in both Q1 and Q2 2025 [15] - Liquidity increased from 52.2% in Q1 2025 to 54.0% in Q2 2025 [15] Portfolio & Hedging - The company increased its allocation to 30yr 5.5%, 6.0%, and 6.5% coupons by $555 million, $145 million, and $86 million, respectively, while decreasing allocation to 30yr 4.0% and 5.0% by $334 million and $137 million, respectively [47] - Total notional balance of hedge positions was $(4,881.8) million [59] - Interest rate swaps had a notional balance of $(3,843.3) million with a weighted average pay fix rate of 3.30% [59] - The company's hedge positions covered 58% of its repo funding liability [59]

Core Viewpoint - AGNC Investment Corp. is actively managing its portfolio to navigate market volatility and interest rate fluctuations, maintaining a strong liquidity position while facing challenges in the financial landscape [1][4]. Group 1: Growth Drivers - Strong Portfolio Management: AGNC employs an active portfolio-management strategy, with interest rate hedges covering 91% of its investment securities as of March 31, 2025, and has shifted towards higher-coupon securities for stability [2]. - Agency MBS Investments Driving Returns: The company holds $77.9 billion in Agency mortgage-backed securities (MBS), benefiting from government guarantees, which positions it well for spread-widening opportunities [3]. - Stable Financial Position: AGNC has $6 billion in unencumbered cash and Agency MBS, with a modest increase in leverage to 7.5X, allowing for flexibility in future investments [4]. Group 2: Performance Metrics - Impressive ROE: AGNC's return on equity (ROE) stands at 20.36%, significantly higher than the industry average of 7.82%, showcasing effective management of shareholders' funds [5]. - Price Performance: Over the past month, AGNC shares have increased by 3.1%, while the industry has grown by 4.3% [8]. Group 3: Challenges - Volatile Mortgage Market: The performance of AGNC is affected by mortgage market volatility and economic conditions, leading to a 25% dividend cut in 2020, which has been maintained since [6]. - Fluctuating Interest Rates: The company is adjusting its portfolio in response to interest rate changes and market volatility, reducing Agency RMBS and focusing on risk management, although strong returns are anticipated to be challenging in the short term [7].

Financial Performance - Net income available to common shareholders was $465 million, or $0.51 per diluted share[4] - Adjusted net income available to common shareholders was $487 million, or $0.54 per diluted share[4] - Total revenue was $1.784 billion, and adjusted total revenue was $1.809 billion[4] - Pre-tax pre-provision income was $745 million, and adjusted pre-tax pre-provision income was $774 million[4] - The efficiency ratio was 57.9%, and the adjusted efficiency ratio was 56.8%[4] - Return on average tangible common equity was 17.72%, and the adjusted return was 18.58%[4] Balance Sheet and Lending - Average loans and leases were approximately $96.1 billion in 1Q25[23] - Ending loans and leases decreased by 1% QoQ[26] - Average deposits increased by 1% QoQ to $131 billion, and ending deposits increased by 3%[28, 30] Net Interest Income and Margin - Net interest income (NII) was $1.194 billion, or $1.206 billion on a taxable-equivalent basis[32] - Net interest margin (NIM) was 3.52%[32] - The company expects NII to grow between 1% and 4% in 2025, with NIM increasing to 3.60% by 4Q25[40] Non-Interest Income and Expense - Non-interest income was $590 million, and adjusted non-interest income was $615 million[42] - Adjusted non-interest expense was $1.035 billion[47] - The company expects adjusted non-interest income to grow between 1% and 3% in FY25, and adjusted non-interest expense to be flat to up approximately 2%[45, 49] Asset Quality - Net charge-offs (NCOs) were $123 million, representing 0.52% of average loans[51] - Non-performing loans (NPLs) were $843 million, or 0.88% of total loans[56] - The allowance for credit losses (ACL) was $1.730 billion, representing 1.81% of total loans[54]