AGNCL · AGNC Investment Corp.

AGNC Investment Corp. announced first quarter 2026 results marked by a comprehensive loss of $(0.18) per common share, consisting of a $(0.17) net loss per share and $(0.01) OCI per share from mark-to-market adjustments on investments. This contributed to a -1.6% economic return on tangible common equity, reflecting a $0.36 dividend per share offset by a $(0.50) decline in tangible net book value to $8.38 per share from $8.88 at December 31, 2025. Tangible net book value excludes $526 million of goodwill, or $0.46 per share. Net spread and dollar roll income rose to $0.42 per share from $0.35 in the prior quarter, supported by a 25 basis point expansion in annualized net interest spread to 2.06%, driven by higher average asset yields of 4.98% (including TBA, excluding catch-up amortization) and lower repo rates of 3.79%. The investment portfolio stood at $94.7 billion as of March 31, 2026, comprising $84.4 billion Agency MBS, $9.5 billion net TBA forward positions, and $0.7 billion CRT/non-Agency securities, financed at 7.4x tangible net book value at-risk leverage, stable from the prior quarter. Liquidity remained strong with $7.0 billion in unencumbered cash and Agency MBS, equating to 60% of tangible equity. The company issued 38 million common shares through ATM offerings, raising $401 million in net proceeds as part of its capital management strategy. Management attributed the quarter's negative return to March spread widening amid Middle East conflict and volatility, despite earlier positive fixed income performance, while highlighting Agency MBS positive excess returns versus Treasuries and corporates. They view widened spreads, improved supply-demand technicals, and potential policy actions as constructive for Agency MBS, positioning AGNC to generate risk-adjusted returns over cycles with its 7.4x leverage and robust liquidity.