AGNC Investment Corp. Announces Fourth Quarter 2025 Financial Results
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
___________
1
Represents a non-GAAP measure. Please refer to the Reconciliation of GAAP Comprehensive Income (Loss) to Net Spread and Dollar Roll Income and Use of Non-GAAP Financial Information included in this release for additional information.
2
Please refer to Net Interest Spread Components by Funding Source included in this release for additional information regarding the Company's annualized net interest spread.
3
Includes dividend reinvestments. Source Bloomberg
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 SHAREAs 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 PORTFOLIOAs 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 RATESThe 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 SPREADThe 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 INCOMEThe 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.
LEVERAGEAs 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), NETFor 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 INCOMEDuring 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 DIVIDENDSDuring 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 STATISTICSThe 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.
AGNC INVESTMENT CORP.
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
December 31,2025
September 30,2025
June 30,2025
March 31,2025
December 31,2024
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Assets:
Agency securities, at fair value (including pledged securities of $74,149, $68,821, $67,375, $63,275 and $59,952, respectively)
$ 81,003
$ 76,198
$ 73,232
$ 70,363
$ 65,367
Agency securities transferred to consolidated variable interest entities, at fair value (pledged securities)
85
88
91
95
97
Credit risk transfer securities, at fair value (including pledged securities of $558, $554, $558, $595 and $590, respectively)
606
609
613
640
633
Non-Agency securities, at fair value, and other mortgage credit investments (including pledged securities of $13, $15, $30, $173 and $206, respectively)
95
97
109
290
315
U.S. Treasury securities, at fair value (including pledged securities of $13,076, $5,431, $3,554, $3,268 and $1,565, respectively)
13,477
5,927
3,565
3,280
1,575
Cash and cash equivalents
450
450
656
455
505
Restricted cash
1,292
1,461
1,216
1,263
1,266
Derivative assets, at fair value
169
145
155
98
205
Receivable for investment securities sold (including pledged securities of $149, $1,340, $0, $908 and $0, respectively)
152
1,502
—
909
—
Receivable under reverse repurchase agreements
16,615
21,399
21,362
17,604
17,137
Goodwill
526
526
526
526
526
Other assets (including pledged securities of $0, $74, $0, $0 and $0, respectively)
607
567
496
366
389
Total assets
$ 115,077
$ 108,969
$ 102,021
$ 95,889
$ 88,015
Liabilities:
Repurchase agreements
$ 85,286
$ 74,152
$ 69,153
$ 66,138
$ 60,798
Debt of consolidated variable interest entities, at fair value
56
58
60
62
64
Payable for investment securities purchased
193
1,225
392
1,843
74
Derivative liabilities, at fair value
6
87
106
70
94
Dividends payable
182
170
164
148
143
Obligation to return securities borrowed under reverse repurchase agreements, at fair value
16,452
20,802
21,305
17,180
16,676
Accounts payable and other liabilities
509
1,031
494
406
404
Total liabilities
102,684
97,525
91,674
85,847
78,253
Stockholders' equity:
Preferred Stock - aggregate liquidation preference of $2,033, $2,033, $1,688, $1,688 and $1,688, respectively
1,968
1,968
1,634
1,634
1,634
Common stock - $0.01 par value; 1,107.6, 1,072.7, 1,041.7, 949.0 and 897.4 shares issued and outstanding, respectively
11
11
10
9
9
Additional paid-in capital
19,261
18,892
18,575
17,769
17,264
Retained deficit
(8,524)
(9,038)
(9,422)
(8,872)
(8,554)
Accumulated other comprehensive loss
(323)
(389)
(450)
(498)
(591)
Total stockholders' equity
12,393
11,444
10,347
10,042
9,762
Total liabilities and stockholders' equity
$ 115,077
$ 108,969
$ 102,021
$ 95,889
$ 88,015
Tangible net book value per common share 1
$ 8.88
$ 8.28
$ 7.81
$ 8.25
$ 8.41
AGNC INVESTMENT CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three Months Ended
Year Ended
December 31,2025
September 30,2025
June 30,2025
March 31,2025
December 31,2025
