BETHESDA, Md., Jan. 26, 2026 /PRNewswire/ -- AGNC Investment Corp. ("AGNC" or the "Company") (Nasdaq: AGNC) today announced financial results for the quarter ended December 31, 2025.

FOURTH QUARTER 2025 FINANCIAL HIGHLIGHTS

• $0.89 comprehensive income per common share, comprised of:
  • $0.83 net income per common share
  • $0.06 other comprehensive income ("OCI") per common share on investments marked-to-market through OCI
• $0.35 net spread and dollar roll income per common share¹
  • Excludes $(0.01) per common share of estimated "catch-up" premium amortization cost due to change in projected constant prepayment rate ("CPR") estimates
• $8.88 tangible net book value per common share as of December 31, 2025
  • Increased $0.60 per common share, or 7.2%, from $8.28 per common share as of September 30, 2025
• $0.36 dividends declared per common share for the fourth quarter 
• 11.6% economic return on tangible common equity for the quarter
  • Comprised of $0.36 dividends per common share and $0.60 increase in tangible net book value per common share

OTHER FOURTH QUARTER HIGHLIGHTS

• $94.8 billion investment portfolio as of December 31, 2025, comprised of:
  • $81.1 billion Agency mortgage-backed securities ("Agency MBS")
  • $13.0 billion net forward purchases/(sales) of Agency MBS in the "to-be-announced" market ("TBA securities")
  • $0.7 billion credit risk transfer ("CRT") and non-Agency securities and other mortgage credit investments
• 7.2x tangible net book value "at risk" leverage as of December 31, 2025
  • 7.4x average tangible net book value "at risk" leverage for the quarter
• Unencumbered cash and Agency MBS totaled $7.6 billion as of December 31, 2025 
  • Excludes unencumbered CRT and non-Agency securities
  • Represents 64% of the Company's tangible equity as of December 31, 2025
• 9.6% average projected portfolio life CPR as of December 31, 2025
  • 9.7% actual portfolio CPR for the quarter 
• 1.81% annualized net interest spread for the quarter² 
• Capital markets activity
  • Issued 34.9 million shares of common equity through At-the-Market ("ATM") Offerings for net proceeds of $356 million

2025 FULL YEAR HIGHLIGHTS

• $1.74 comprehensive income per common share, comprised of:
  • $1.47 net income per common share
  • $0.27 OCI per common share
• $1.50 net spread and dollar roll income per common share¹
  • Excludes $(0.01) per common share of estimated "catch-up" premium amortization cost
• $1.44 in dividends declared per common share
• 22.7% economic return on tangible common equity for the year, comprised of:
  • $1.44 dividends per common share
  • $0.47 increase in tangible net book value per common share, or 5.6%, from $8.41 per common share as of December 31, 2024
• 34.8% total stock return³
• Capital markets activity
  • Issued 208.2 million shares of common equity through ATM Offerings for net proceeds of $2.0 billion
  • Issued $345 million of 8.75% Series H Fixed-Rate preferred equity

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MANAGEMENT REMARKS
"The fourth quarter of 2025 capped an exceptional year for AGNC shareholders," said Peter Federico, the Company's President, Chief Executive Officer and Chief Investment Officer. "For the year, AGNC generated an impressive economic return on tangible common equity of 22.7%. Even more noteworthy, AGNC's total stock return in 2025 was 34.8% with dividends reinvested, nearly double the performance of the S&P 500 Index. This performance, on both a relative and absolute basis, demonstrates the value of AGNC's actively managed portfolio of Agency MBS and associated hedges.

"Agency MBS was the best performing domestic fixed income asset class in the fourth quarter and produced a total return for the year of 8.6%, the best full-year return for Agency MBS since 2002. This strong performance was driven by a confluence of several factors. The Federal Reserve shifted monetary policy toward lower short-term rates and greater accommodation, and interest rate volatility declined. In addition, uncertainty and potential risks associated with GSE reform were reduced as Administration officials communicated a framework focused on maintaining mortgage market stability and improving housing affordability. Collectively, these and other factors led to substantial outperformance of Agency MBS relative to other fixed income asset classes, reduced Agency MBS spread volatility, and caused mortgage spreads to benchmark rates to tighten over the course of the year.

"As we begin 2026, the macroeconomic themes of lower interest rate and Agency MBS spread volatility remain in place and provide a constructive investment backdrop for our business. Other positive developments, such as recent Agency MBS purchases by Fannie Mae and Freddie Mac and other market initiatives contemplated by the Administration and the Federal Reserve, could be a catalyst for further mortgage spread tightening. These dynamics, coupled with a balanced supply-demand outlook, are supportive of our optimistic perspective on Agency MBS. Moreover, we believe that AGNC, as the largest pure-play Agency MBS mortgage REIT, is very well positioned in this environment to continue to generate favorable risk-adjusted returns with a substantial yield component for our shareholders."

"AGNC's 11.6% economic return on tangible common equity in the fourth quarter was comprised of $0.36 of dividends per common share and a $0.60 increase in tangible net book value per common share," said Bernice Bell, the Company's Executive Vice President and Chief Financial Officer. "AGNC's net spread and dollar roll income per common share was $0.35 for the fourth quarter, unchanged from the prior quarter. During the quarter, AGNC issued over $350 million of common stock under our At-the-Market issuance program at a significant premium to our tangible net book value per share, generating meaningful accretion for our common shareholders. Finally, AGNC concluded the fourth quarter with 'at risk' leverage of 7.2x tangible equity and a significant liquidity position of $7.6 billion of unencumbered cash and Agency MBS, which constituted 64% of our tangible equity at quarter end."

TANGIBLE NET BOOK VALUE PER COMMON SHARE
As of December 31, 2025, the Company's tangible net book value per common share was $8.88 per share, an increase of 7.2% for the quarter compared to $8.28 per share as of September 30, 2025. The Company's tangible net book value per common share excludes $526 million, or $0.47 and $0.49 per share, of goodwill as of December 31 and September 30, 2025, respectively.

INVESTMENT PORTFOLIO
As of December 31, 2025, the Company's investment portfolio totaled $94.8 billion, comprised of:

• $94.1 billion of Agency MBS and TBA securities, including:
  • $90.5 billion of fixed-rate securities, comprised of:
    • $77.0 billion 30-year MBS,
    • $12.8 billion 30-year TBA securities, net, and
    • $0.6 billion 15 and 20-year MBS and TBA securities; and
  • $3.6 billion of collateralized mortgage obligations ("CMOs"), adjustable-rate and other Agency securities; and
• $0.7 billion of CRT and non-Agency securities and other mortgage credit investments.

As of December 31, 2025, 30-year fixed-rate Agency MBS and TBA securities represented 95% of the Company's investment portfolio, unchanged from September 30, 2025.

As of December 31, 2025, the Company's fixed-rate Agency MBS and TBA securities' weighted average coupon was 5.12%, compared to 5.14% as of September 30, 2025, comprised of the following weighted average coupons:

• 5.12% for 30-year fixed-rate securities;
• 4.78% for 15-year fixed-rate securities; and
• 3.76% for 20-year fixed-rate securities.

The Company accounts for TBA securities and other forward settling securities as derivative instruments and recognizes TBA dollar roll income in other gain (loss), net on the Company's financial statements. As of December 31, 2025, such positions had a fair value of $13.0 billion and a GAAP net carrying value of $71 million reported in derivative assets/(liabilities) on the Company's balance sheet, compared to $13.8 billion and $36 million, respectively, as of September 30, 2025.

CONSTANT PREPAYMENT RATES
The Company's weighted average projected CPR for the remaining life of its Agency securities held as of December 31, 2025 increased to 9.6% from 8.6% as of September 30, 2025. The Company's weighted average actual CPR for the fourth quarter was 9.7%, compared to 8.3% for the prior quarter.

The weighted average cost basis of the Company's investment portfolio was 101.2% of par value as of December 31, 2025. The Company's investment portfolio generated net premium amortization cost of $(51) million, or $(0.05) per common share, for the fourth quarter, which includes "catch-up" premium amortization cost of $(7) million, or $(0.01) per common share, due to an increase in the Company's CPR projections for certain securities acquired prior to the fourth quarter. This compares to net premium amortization cost for the prior quarter of $(57) million, or $(0.05) per common share, including a "catch-up" premium amortization cost of $(14) million, or $(0.01) per common share.

ASSET YIELDS, COST OF FUNDS AND NET INTEREST RATE SPREAD
The Company's average asset yield on its investment portfolio, excluding the TBA position, was 4.87% for the fourth quarter, compared to 4.83% for the prior quarter. Excluding "catch-up" premium amortization, the Company's average asset yield was 4.90% for the fourth quarter, compared to 4.91% for the prior quarter. Including the TBA position and excluding "catch-up" premium amortization, the Company's average asset yield for the fourth quarter was 4.91%, compared to 4.95% for the prior quarter.

For the fourth quarter, the weighted average interest rate on the Company's repurchase agreements was 4.13%, compared to 4.43% for the prior quarter. For the fourth quarter, the Company's TBA position had an implied financing cost of 4.03%, compared to 4.31% for the prior quarter. Inclusive of interest rate swaps, the Company's combined weighted average cost of funds for the fourth quarter was 3.10%, compared to 3.17% for the prior quarter.

The Company's annualized net interest spread, including the TBA position and interest rate swaps and excluding "catch-up" premium amortization, for the fourth quarter was 1.81%, compared to 1.78% for the prior quarter.

NET SPREAD AND DOLLAR ROLL INCOME
The Company recognized net spread and dollar roll income (a non-GAAP financial measure) for the fourth quarter of $0.35 per common share, unchanged from the prior quarter. Net spread and dollar roll income excludes $(0.01) per common share of estimated "catch-up" premium amortization cost for the fourth quarter and prior quarter.

The Company's cost of funds, net interest rate spread and net spread and dollar income excludes the impact of the Company's U.S. Treasury hedges, option-based hedges, and other supplemental interest rate hedges. For additional information regarding the Company's U.S. Treasury hedges, please refer to the schedule of Key Statistics included in this release.

A reconciliation of the Company's total comprehensive income (loss) to net spread and dollar roll income and additional information regarding the Company's use of non-GAAP measures are included later in this release.

LEVERAGE
As of December 31, 2025, $72.9 billion of repurchase agreements, $12.9 billion of net TBA dollar roll positions (at cost) and $0.1 billion of other debt were used to fund the Company's investment portfolio. The remainder, or approximately $12.3 billion, of the Company's repurchase agreements was used to fund short-term purchases of U.S. Treasury securities ("U.S. Treasury Repo") and is not included in the Company's leverage measurements. Inclusive of its net TBA position and net payable/(receivable) for unsettled investment securities, the Company's tangible net book value "at risk" leverage ratio was 7.2x as of December 31, 2025, compared to 7.6x as of September 30, 2025. The Company's average "at risk" leverage ratio for the fourth quarter was 7.4x tangible net book value, compared to 7.5x for the prior quarter.

As of December 31, 2025, the Company's repurchase agreements used to fund its investment portfolio ("Investment Securities Repo") had a weighted average interest rate of 3.98%, compared to 4.38% as of September 30, 2025, and a weighted average remaining maturity of 12 days, compared to 13 days as of September 30, 2025. As of December 31, 2025, $38.2 billion, or 52%, of the Company's Investment Securities Repo was funded through the Company's captive broker-dealer subsidiary, Bethesda Securities, LLC.

HEDGING ACTIVITIES
As of December 31, 2025, interest rate swaps, U.S. Treasury positions, option-based hedges (swaptions), and other interest rate hedges equaled 69% of the Company's outstanding balance of Investment Securities Repo, net TBA position, and other debt (collectively, "funding liabilities"), compared to 68% as of September 30, 2025. Excluding option-based hedges, the Company's hedge portfolio covered 77% of its funding liabilities as of December 31, 2025, unchanged from September 30, 2025.

As of December 31, 2025, the Company's pay fixed interest rate swap position totaled $64.6 billion in notional amount, with an average fixed pay rate of 2.57%, an average floating receive rate of 3.86% and an average maturity of 4.7 years, compared to $48.1 billion, 2.47%, 4.23% and 5.6 years, respectively, as of September 30, 2025.

As of December 31, 2025, the Company had a net short U.S. Treasury position of $1.5 billion and receiver swaptions of $7.0 billion outstanding, compared to a $16.7 billion net short U.S. Treasury position, net receiver swaptions of $7.0 billion, and $1.2 billion of two-year swap equivalent long SOFR futures as of September 30, 2025.

OTHER GAIN (LOSS), NET
For the fourth quarter, the Company recorded a net gain of $789 million in other gain (loss), net, or $0.72 per common share, compared to a net gain of $688 million, or $0.65 per common share, for the prior quarter. Other gain (loss), net for the fourth quarter was comprised of:

• $(26) million of net realized losses on sales of investment securities;
• $475 million of net unrealized gains on investment securities measured at fair value through net income;
• $217 million of interest rate swap periodic income;
• $97 million of net gains on interest rate swaps;
• $(32) million of net losses on interest rate swaptions;
• $(1) million of net losses on SOFR futures;
• $(30) million of net losses on U.S. Treasury positions;
• $27 million of TBA dollar roll income;
• $53 million of net mark-to-market gains on TBA securities; and
• $9 million of other interest income (expense), net.

OTHER COMPREHENSIVE INCOME
During the fourth quarter, the Company recorded other comprehensive income of $66 million, or $0.06 per common share, consisting of net unrealized gains on its Agency securities recognized through OCI, compared to $61 million, or $0.06 per common share, in the prior quarter.

COMMON STOCK DIVIDENDS
During the fourth quarter, the Company declared dividends of $0.12 per share to common stockholders of record as of October 31, November 28, and December 31, 2025, totaling $0.36 per share for the quarter. Since its May 2008 initial public offering through the fourth quarter of 2025, the Company has declared a total of $15.5 billion in common stock dividends, or $50.08 per common share.

The Company also announced it has published the tax characteristics of its distributions for common stock dividends and for each series of its preferred stock dividends for calendar year 2025 on its website at www.AGNC.com. Stockholders should receive an IRS Form 1099-DIV containing this information from their brokers, transfer agents or other institutions.

FINANCIAL STATEMENTS, OPERATING PERFORMANCE AND PORTFOLIO STATISTICS
The following measures of operating performance include net spread and dollar roll income; economic interest income; economic interest expense; and the related per common share measures and financial metrics derived from such information, which are non-GAAP financial measures. Please refer to "Use of Non-GAAP Financial Information" later in this release for further discussion of non-GAAP measures.

STOCKHOLDER CALL
AGNC invites stockholders, prospective stockholders and analysts to attend the AGNC stockholder call on January 27, 2026 at 8:30 am ET. Interested persons who do not plan on asking a question and have internet access are encouraged to utilize the webcast at www.AGNC.com. Those who plan on participating in the Q&A or do not have internet available may access the call by dialing (877) 300-5922 (U.S. domestic) or (412) 902-6621 (international). Please advise the operator you are dialing in for the AGNC Investment Corp. stockholder call.

A slide presentation will accompany the call and will be available in the Investors section of the Company's website at www.AGNC.com. Select the Q4 2025 Stockholder Presentation link to download the presentation in advance of the stockholder call.

An archived audio of the stockholder call combined with the slide presentation will be available on the AGNC website after the call on January 27, 2026. In addition, there will be a phone recording available one hour after the call on January 27, 2026 through February 10, 2025. Those who are interested in hearing the recording of the presentation, can access it by dialing (855) 669-9658 (U.S. domestic) or (412) 317-0088 (international), passcode 5218420.

For further information, please contact Investor Relations at (301) 968-9300 or IR@AGNC.com. 

ABOUT AGNC INVESTMENT CORP.
Founded in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading investor in Agency residential mortgage-backed securities (Agency MBS), which benefit from a guarantee against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae. We invest on a leveraged basis, financing our Agency MBS assets primarily through repurchase agreements, and utilize dynamic risk management strategies intended to protect the value of our portfolio from interest rate and other market risks.

AGNC has a track record of providing favorable long-term returns for our stockholders through substantial monthly dividend income, with over $15 billion of common stock dividends paid since inception. Our business is a significant source of private capital for the U.S. residential housing market, and our team has extensive experience managing mortgage assets across market cycles.

We use our website (www.AGNC.com) and AGNC's LinkedIn and X accounts to distribute information about the Company. Investors should monitor these channels in addition to our press releases, filings with the U.S. Securities and Exchange Commission ("SEC"), public conference calls and webcasts, as information posted through them may be deemed material. Our website, alerts and social media channels are not incorporated by reference into, and are not a part of, this document or any report filed with the SEC. To learn more about The Premier Agency Residential Mortgage REIT, please visit www.AGNC.com, follow us on LinkedIn and X, and sign up for Investor Alerts.

FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements or from our historic performance due to a variety of important factors, including, without limitation, changes in monetary policy and other factors that affect interest rates, MBS spreads to benchmark interest rates, the forward yield curve, or prepayment rates; the availability and terms of financing; changes in the market value of the Company's assets; general economic or geopolitical conditions; liquidity and other conditions in the market for Agency securities and other financial markets; and legislative and regulatory changes that could adversely affect the business of the Company. Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements are included in the Company's periodic reports filed with the Securities and Exchange Commission ("SEC"). Copies are available on the SEC's website, www.sec.gov. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.

USE OF NON-GAAP FINANCIAL INFORMATION
In addition to the results presented in accordance with GAAP, the Company's results of operations discussed in this release include certain non-GAAP financial information, including "net spread and dollar roll income"; "economic interest income" and "economic interest expense"; and the related per common share measures and certain financial metrics derived from such non-GAAP information, such as "cost of funds" and "net interest spread."

Net spread and dollar roll income available to common stockholders is measured as comprehensive income (loss) available (attributable) to common stockholders (GAAP measure) adjusted to: (i) exclude gains/losses on investment securities recognized through net income or other comprehensive income and gains/losses on derivative instruments and other securities (GAAP measures), (ii) exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and (iii) include interest rate swap periodic income/cost, TBA dollar roll income and other miscellaneous interest income/expense. As defined, net spread and dollar roll income available to common stockholders represents net interest income/expense (GAAP measure) adjusted to exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and to include TBA dollar roll income, interest rate swap periodic income/cost and other miscellaneous interest income/expense, less total operating expense (GAAP measure) and dividends on preferred stock (GAAP measure).

By providing users of the Company's financial information with such measures in addition to the related GAAP measures, the Company believes users have greater transparency into the information used by the Company's management in its financial and operational decision-making. The Company also believes that it is important for users of its financial information to consider information related to the Company's current financial performance without the effects of certain transactions that are not necessarily indicative of its current investment portfolio performance and operations.

Specifically, the Company believes the inclusion of TBA dollar roll income in its non-GAAP measures is meaningful as TBAs are economically equivalent to holding and financing generic Agency MBS using short-term repurchase agreements but are recognized under GAAP in gain/loss on derivative instruments in the Company's statement of operations. Similarly, the Company believes that the inclusion of periodic interest rate swap settlements in such measures, which are recognized under GAAP in gain/loss on derivative instruments, is meaningful as interest rate swaps are the primary instrument the Company uses to economically hedge against fluctuations in the Company's borrowing costs and inclusion of periodic interest rate swap settlements is more indicative of the Company's total cost of funds than interest expense alone. Finally, the Company believes the exclusion of "catch-up" adjustments to premium amortization cost is meaningful as it excludes the cumulative effect from prior reporting periods due to current changes in future prepayment expectations and, therefore, exclusion of such "catch-up" cost or benefit is more indicative of the current earnings potential of the Company's investment portfolio.

However, because such measures are incomplete measures of the Company's financial performance and involve differences from results computed in accordance with GAAP, they should be considered as supplementary to, and not as a substitute for, results computed in accordance with GAAP. In addition, because not all companies use identical calculations, the Company's presentation of such non-GAAP measures may not be comparable to other similarly-titled measures of other companies.

A reconciliation of GAAP comprehensive income (loss) to non-GAAP "net spread and dollar roll income" is included in this release.

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SOURCE AGNC Investment Corp.