Results
Bethesda, MD - July 20, 2026 - AGNC Investment Corp. (“AGNC” or the “Company”) (Nasdaq: AGNC) today announced financial results for the quarter ended June 30, 2026.
SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS
$0.52 comprehensive income per common share, comprised of:
$0.52 net income per common share
$(0.01) other comprehensive loss (“OCI”) per common share on investments marked-to-market through OCI
$0.40 net spread and dollar roll income per common share 1
$8.58 tangible net book value per common share as of June 30, 2026
Increased $0.20 per common share, or 2.4%, from $8.38 per common share as of March 31, 2026
Capital return
$0.36 dividends declared per common share for the second quarter
Results
6.7% economic return on tangible common equity for the quarter
Capital return
2Comprised of $0.36 dividends per common share and $0.20 increase in tangible net book value per common share
Results
OTHER SECOND QUARTER HIGHLIGHTS
$97.2 billion investment portfolio as of June 30, 2026, comprised of:
$86.8 billion Agency mortgage-backed securities (“Agency MBS”)
$9.7 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
7.4x tangible net book value “at risk” leverage as of June 30, 2026
7.4x average tangible net book value “at risk” leverage for the quarter
Unencumbered cash and Agency MBS totaled $7.5 billion as of June 30, 2026
Represents 62% of the Company’s tangible equity as of June 30, 2026
Outlook
8.6% average projected portfolio life CPR as of June 30, 2026
Results
13.0% actual portfolio CPR for the quarter
2.00% annualized net interest spread for the quarter 2
Corporate events
Issued 16.2 million shares of common equity through At-the-Market (“ATM”) Offerings for net proceeds of $167 million
Management commentary
MANAGEMENT REMARKS
“The investment environment in the second quarter continued to be challenging, as escalating rhetoric and hostilities between the United States and Iran largely dictated financial market performance,” said Peter Federico, the Company’s President, Chief Executive Officer and Chief Investment Officer.
“Elevated energy prices and supply chain disruptions were the dominant macroeconomic concerns, particularly in April and May when maritime traffic through the Strait of Hormuz was severely constrained.
These concerns caused Treasury yields to increase, the yield curve to flatten, and the market’s monetary policy expectations to pivot from rate cuts to rate hikes.
1“Despite the volatile macroeconomic backdrop, AGNC delivered a strong economic return of 6.7% for the second quarter.
Elevated mortgage rates caused a reduction in projected Agency MBS supply, while demand remained strong, creating a positive technical backdrop that supported Agency MBS performance and drove spreads to benchmark rates tighter.
Although mortgage spreads have declined from recent peak levels, they remain elevated by historical standards.
Agency MBS also offer compelling value relative to other fixed income alternatives, particularly corporate bonds, which are at or near historically tight spreads to U.S. Treasuries despite record issuance and rising credit concerns.
Together, these favorable dynamics should be supportive of Agency MBS performance over the near to intermediate term and position AGNC to continue to deliver strong risk-adjusted returns for our stockholders.”
“AGNC’s 6.7% economic return on tangible common equity in the second quarter was comprised of $0.36 of dividends per common share and a $0.20 increase in tangible net book value per common share,” said Bernice Bell, the Company’s Executive Vice President and Chief Financial Officer.
4“Additionally, AGNC generated a 12.3% unannualized total stock return in the second quarter, with dividends reinvested, despite the significant volatility experienced by financial markets.
5AGNC’s net spread and dollar roll income per common share was $0.40 for the second quarter, a modest decrease of $0.02 per common share from the prior quarter.
Finally, AGNC concluded the second quarter with tangible ‘at risk’ leverage of 7.4x and a substantial liquidity position of $7.5 billion of unencumbered cash and Agency MBS, representing 62% of our tangible equity at quarter end.”
Results
TANGIBLE NET BOOK VALUE PER COMMON SHARE
8As of June 30, 2026, the Company’s tangible net book value per common share was $8.58 per share, an increase of 2.4% for the quarter compared to $8.38 per share as of March 31, 2026.
The Company’s tangible net book value per common share excludes $526 million, or $0.45 and $0.46 per share, of goodwill as of June 30 and March 31, 2026, respectively.
As of June 30, 2026, the Company’s investment portfolio totaled $97.2 billion, comprised of:
$96.5 billion of Agency MBS and TBA securities, including:
$92.1 billion of fixed-rate securities, comprised of:
$82.1 billion 30-year MBS,
$9.5 billion 30-year TBA securities, net, and
$0.5 billion 15 and 20-year MBS and TBA securities; and
$4.5 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 June 30, 2026, 30-year fixed-rate Agency MBS and TBA securities represented 94% of the Company’s investment portfolio, unchanged from March 31, 2026.
As of June 30, 2026, the Company’s fixed-rate Agency MBS and TBA securities’ weighted average coupon was 5.04%, compared to 4.95% as of March 31, 2026, comprised of the following weighted average coupons:
5.05% for 30-year fixed-rate securities;
4.82% for 15-year fixed-rate securities; and
3.74% 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 June 30, 2026, such positions had a fair value of $9.7 billion and a GAAP net carrying value of $52 million reported in derivative assets/(liabilities) on the Company’s balance sheet, compared to $9.5 billion and $(194) million, respectively, as of March 31, 2026.
CONSTANT PREPAYMENT RATES
The Company’s weighted average projected CPR for the remaining life of its Agency securities held as of June 30, 2026 decreased to 8.6% from 10.3% as of March 31, 2026.
The Company’s weighted average actual CPR for the second quarter was 13.0%, compared to 13.2% for the prior quarter.
The weighted average cost basis of the Company’s investment portfolio was 100.7% of par value as of June 30, 2026.
The Company’s investment portfolio generated net premium amortization cost of $(47) million, or $(0.04) per common share, for the second quarter, which includes a “catch-up” premium amortization cost of $(5) million, or less than $(0.01) per common share, due to changes in the Company’s CPR projections for certain securities acquired prior to the second quarter.
This compares to net premium amortization cost for the prior quarter of $(52) million, or
AGNC Investment Corp.
$(0.05) per common share, including a “catch-up” premium amortization benefit of $5 million, or less than $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 second quarter, compared to 4.95% for the prior quarter.
Excluding “catch-up” premium amortization, the Company’s average asset yield was 4.89% for the second quarter, compared to 4.93% for the prior quarter.
Including the TBA position and excluding “catch-up” premium amortization, the Company’s average asset yield for the second quarter was 4.89%, compared to 4.98% for the prior quarter.
For the second quarter, the weighted average interest rate on the Company’s repurchase agreements was 3.74%, compared to 3.79% for the prior quarter.
For the second quarter, the Company’s TBA position had an implied financing cost of 3.46%, compared to 3.45% for the prior quarter.
Inclusive of interest rate swaps, the Company’s combined weighted average cost of funds for the second quarter was 2.89%, compared to 2.92% 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 second quarter was 2.00%, compared to 2.06% 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 second quarter of $0.40 per common share, compared to $0.42 per common share for the prior quarter.
Net spread and dollar roll income excludes less than $(0.01) and less than $0.01 per common share of estimated “catch-up” premium amortization (cost) / benefit for the second quarter and prior quarter, respectively.
AGNC Investment Corp.
LEVERAGE
As of June 30, 2026, $79.5 billion of repurchase agreements and $9.7 billion of net TBA dollar roll positions (at cost) were used to fund the Company’s investment portfolio.
The remainder, or approximately $10.3 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 7.4x as of June 30, 2026, unchanged from the prior quarter.
The Company’s average “at risk” leverage ratio for the second quarter was 7.4x tangible net book value, also unchanged from the prior quarter.
As of June 30, 2026, the Company’s repurchase agreements used to fund its investment portfolio (“Investment Securities Repo”) had a weighted average interest rate of 3.75%, compared to 3.77% as of March 31, 2026, and a weighted average remaining maturity of 13 days, compared to 20 days as of March 31, 2026.
As of June 30, 2026, $42.4 billion, or 53%, of the Company’s Investment Securities Repo was funded through the Company’s captive broker-dealer subsidiary, Bethesda Securities, LLC.
Management commentary
HEDGING ACTIVITIES
Results
As of June 30, 2026, interest rate swaps, U.S. Treasury positions, option-based hedges (swaptions), and other interest rate hedges equaled 73% of the Company’s outstanding balance of Investment Securities Repo, net TBA position, and other debt (collectively, “funding liabilities”), compared to 75% as of March 31, 2026.
Excluding option-based hedges, the Company’s hedge portfolio covered 82% of its funding liabilities as of June 30, 2026, compared to 83% as of March 31, 2026.
As of June 30, 2026, the Company’s pay fixed interest rate swap position totaled $73.8 billion in notional amount, with an average fixed pay rate of 2.76%, an average floating receive rate of 3.68% and an average maturity of 4.0 years, compared to $76.5 billion, 2.67%, 3.68% and 4.1 years, respectively, as of March 31, 2026.
As of June 30, 2026, the Company had a net short U.S. Treasury position of $2.1 billion, receiver swaptions of $7.8 billion outstanding and a two-year swap equivalent long SOFR futures position of $2.6 billion outstanding, compared to a $5.4 billion net long U.S. Treasury position and net receiver swaptions of $7.0 billion as of March 31, 2026.
OTHER GAIN (LOSS), NET
6For the second quarter, the Company recorded a net gain of $379 million in other gain (loss), net, or $0.33 per common share, compared to a net loss of $(433) million, or $(0.39) per common share, for the prior quarter.
Other gain (loss), net for the second quarter was comprised of:
3$(16) million of net realized losses on sales of investment securities;
$(90) million of net unrealized losses on investment securities measured at fair value through net income;
$179 million of interest rate swap periodic income;
$461 million of net gains on interest rate swaps;
$(15) million of net losses on interest rate swaptions;
AGNC Investment Corp.
7$(4) million of net losses on SOFR futures;
$(102) million of net losses on U.S. Treasury positions;
$44 million of TBA dollar roll income;
$(80) million of net mark-to-market losses on TBA securities; and
$3 million of other interest income (expense), net; and
$(1) million of other miscellaneous losses.
OTHER COMPREHENSIVE LOSS
During the second quarter, the Company recorded other comprehensive income (loss) of $(7) million, or $(0.01) per common share, consisting of net unrealized losses on its Agency securities recognized through OCI, compared to $(8) million, or $(0.01) per common share, in the prior quarter.
Capital return
COMMON STOCK DIVIDENDS
During the second quarter, the Company declared dividends of $0.12 per share to common stockholders of record as of April 30, May 29, and June 30, 2026, totaling $0.36 per share for the quarter.
Since its May 2008 initial public offering through the second quarter of 2026, the Company has declared a total of $16.3 billion in common stock dividends, or $50.80 per common share.
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