AGNC Investment Corp. Q3 2024 Financial Results

AGNC Investment Corp., a leading investor in Agency residential mortgage-backed securities, has released its financial results for the third quarter of 2024. The company reported significant growth in key financial metrics, reflecting a robust performance in a favorable economic environment.

Financial Highlights

AGNC reported comprehensive income of $0.63 per common share for Q3 2024, which includes $0.39 net income per common share and $0.24 other comprehensive income (OCI) per common share. The company's tangible net book value per common share increased by 5.0% to $8.82 as of September 30, 2024, up from $8.40 as of June 30, 2024. Additionally, AGNC declared dividends of $0.36 per common share for the quarter.

Business and Operational Highlights

AGNC's investment portfolio totaled $73.1 billion as of September 30, 2024, primarily comprising $68.0 billion in Agency MBS and $4.1 billion in net forward purchases/sales of Agency MBS in the TBA market. The company maintained a leverage ratio of 7.2x tangible net book value "at risk" as of the end of the quarter, with unencumbered cash and Agency MBS totaling $6.2 billion.

Strategic Initiatives and Corporate Developments

During the third quarter, AGNC issued 78.1 million shares of common equity through At-the-Market (ATM) offerings, generating net proceeds of $781 million. This capital was used to fund investments in Agency MBS at attractive levels, contributing to the company's strong financial performance.

Management's Perspective

Peter Federico, President and CEO of AGNC, highlighted the company's strong economic return of 9.3% for the quarter, driven by significant book value growth and stable monthly dividends. Federico noted that the favorable conditions for Agency MBS, including wide and stable spreads to benchmark rates and less volatile interest rates, have positively impacted AGNC's performance.

Bernice Bell, Executive Vice President and CFO, emphasized the benefits of the ATM program, which provided substantial accretion for stockholders and new capital for investments. Bell also noted the company's modest decline in leverage and strong liquidity position at the end of the quarter.

Future Outlook

AGNC's management expressed optimism about the future, citing the Federal Reserve's monetary policy pivot and the expected return to a neutral federal funds rate over the next 12 to 24 months. This is anticipated to result in a steepening yield curve and increased demand for high-quality fixed-income instruments like Agency MBS.

SEC Filing: AGNC Investment Corp. [ AGNC ] - 8-K - Oct. 21, 2024