AGNC Investment Corp. Reports Q1 2025 Financial Results with $50M Net Income

AGNC Investment Corp. reported its financial results for the first quarter of 2025, revealing a net income of $50 million, or $0.02 per common share, a significant decrease from the $443 million, or $0.59 per share, reported in the same period last year. The company's interest income rose to $846 million, up from $642 million in the prior year, while interest expenses also increased to $687 million from $672 million. The net interest income for the quarter was $159 million, compared to a net interest expense of $30 million in the previous year, reflecting a shift in the company's financial dynamics.

The company's total assets grew to $95.9 billion as of March 31, 2025, compared to $88.0 billion at the end of 2024. This increase was primarily driven by a rise in agency securities, which reached $70.4 billion, up from $65.4 billion. AGNC's liabilities also increased, totaling $85.8 billion, up from $78.3 billion, largely due to higher repurchase agreements, which rose to $66.1 billion from $60.8 billion. Stockholders' equity increased to $10.0 billion from $9.8 billion, with a tangible net book value per common share of $8.25, down from $8.41.

Strategically, AGNC raised $509 million in common equity through its At-the-Market Offering Program during the quarter, enhancing its liquidity position. The company maintained a leverage ratio of 7.5 times tangible equity, consistent with its target range. The investment portfolio increased by approximately $5 billion, with a focus on assets with favorable prepayment characteristics. The weighted average coupon of the portfolio remained stable at just over 5.0%.

Operationally, AGNC's average investment securities increased by 24% year-over-year, reflecting a robust capital base. The company reported a net spread and dollar roll income of $0.44 per common share, slightly down from $0.58 in the previous year. The average projected life constant prepayment rate (CPR) for the portfolio increased to 8.3% from 7.7%, indicating a shift in prepayment expectations. The company continues to navigate a challenging economic environment, with expectations of ongoing macroeconomic uncertainty impacting its outlook.

Looking ahead, AGNC remains optimistic about the Agency RMBS market, citing compelling return opportunities despite potential volatility. The company anticipates that regulatory relief and favorable capital requirements will support increased demand for Agency RMBS. However, it acknowledges the risks associated with interest rate fluctuations and market conditions, which could impact its financial performance and asset valuations.