In This Article:
AGNC Investment Corp.’s AGNC first-quarter 2025 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization benefit) of 44 cents topped the Zacks Consensus Estimate of 41 cents. The bottom line declined from 58 cents in the year-ago quarter.
Adjusted net interest and dollar roll income of $477 million moved down 3.8% from the year-ago quarter.
The company reported a first-quarter comprehensive income per common share of 12 cents compared with 48 cents in the year-ago quarter.
Inside AGNC's Headlines
Net interest income (NII) was $159 million against net interest expenses of $30 million in the prior-year quarter. The metric missed the Zacks Consensus Estimate by 27.4%.
AGNC Investment's average asset yield on its portfolio was 4.78% in the first quarter of 2025, up from 4.53% in the first quarter of 2024.
The combined weighted average cost of funds, inclusive of interest rate swap, was 2.75% compared with 1.58% in the first quarter of 2024.
The average net interest spread (excluding estimated "catch-up" premium amortization benefits) was 2.12%, down from 2.98% in the year-ago quarter.
As of March 31, 2025, AGNC’s average tangible net book value "at risk" leverage ratio was 7.3X, up from 7X from the prior-year quarter.
In the first quarter, the company's investment portfolio bore an average actual constant prepayment rate of 7%, up from 5.7% in the year-ago quarter.
As of March 31, 2025, tangible net book value per common share (BVPS) was $8.25, down 6.7% on a year-over-year basis.
The economic return on tangible common equity was 2.4% compared with 5.7% in the year-ago quarter. This included a dividend per share of 36 cents and a modest decline of 16 cents in tangible net BVPS.
As of March 31, 2025, the company’s investment portfolio aggregated $78.9 billion. This included $70.5 billion of Agency mortgage-backed securities, $7.5 billion net forward purchases/(sales) of Agency MBS in the "to-be-announced" market ("TBA securities"), and $0.9 billion of CRT and non-Agency securities and other mortgage credit investments.
AGNC Investment’s Balance Sheet Position
As of March 31, 2025, AGNC’s cash and cash equivalents totaled $455 million, down 9.9% from the prior quarter.
AGNC's Dividend Update
In the first quarter, AGNC Investment announced a dividend of 12 cents per share each for January, February and March, totaling 36 cents per share for the quarter. Management declared $14.3 billion in common stock dividends or $48.64 per share since its initial public offering in May 2008 through the first quarter of 2025.