AGNC Investment (AGNC) investor relations material

Executive summary

• Achieved a 10.6% economic return on tangible common equity in Q3 2025, driven by robust Agency MBS performance, book value appreciation, and improved investor sentiment following the Fed's policy shift and easing fiscal concerns.

• Comprehensive income was $0.78 per common share, with tangible net book value per share rising to $8.28, and a declared dividend of $0.36 per share.

• The investment portfolio expanded to $90.8B, primarily in 30-year fixed-rate Agency MBS and TBA securities.

• Agency MBS outperformed U.S. Treasuries for five consecutive months, supported by tighter spreads, balanced supply-demand, and favorable regulatory outlook.

• Dividend yield remained high at 14.7%.

Financial highlights

• Net income available to common stockholders was $764M for Q3 2025, with comprehensive income of $825M.

• Net spread and dollar roll income per share was $0.35, mainly due to lower swap income and timing mismatches in capital deployment.

• Net interest income was $148M, with interest income of $903M and interest expense of $755M.

• Tangible net book value per share increased by $0.47 sequentially.

• Unencumbered assets totaled $7.2B, representing 66% of tangible equity.

Outlook and guidance

• Management expects lower funding costs, further rate cuts, and full capital deployment to benefit net spread and dollar roll income.

• Robust bond fund inflows and potential increased bank demand for Agency MBS are anticipated as regulatory reforms are implemented.

• Dividend sustainability and return on equity remain well aligned, with expected ROEs for current coupon mortgages in the 16–18% range.

• Management remains optimistic about Agency MBS market conditions, citing constructive policy, demand, and funding environment.

• GSE reform discussions are trending positively, supporting mortgage market stability.