AGNC Investment reports Q1 net income per share 42c, consensus 37c

Reports Q1 comprehensive loss per share (18c). Reports tangible net book value per common share of $8.38 as of March 31, down (50c) per common share, or -5.6%, from $8.88 per common share as of December 31, 2025. “Agency MBS performance in Q1 was driven by two divergent macroeconomic themes,” said CEO Peter Federico. “…The increase in volatility and negative shift in investor sentiment caused Agency MBS spreads to benchmark rates to widen, and, as a result, AGNC‘s economic return on tangible common equity in Q1 was negative 1.6%. Despite the quarter-over-quarter spread widening, Agency MBS generated a positive excess return to both US Treasuries and investment grade corporate bonds in Q1, again demonstrating the diversification benefit of this high credit quality, fixed income asset class. We continue to believe that many of the factors we cited at the beginning of the year remain positive catalysts for Agency MBS performance…As a result, our longer-term outlook for Agency MBS remains constructive, despite near-term challenges associated with heightened geopolitical and macroeconomic risks.” “AGNC’s negative 1.6% economic return on tangible common equity in Q1 was comprised of 36c of dividends per common share and a 50c decrease in tangible net book value per common share,” said CFO Bernice Bell. “AGNC’s net spread and dollar roll income per common share was 42c for the first quarter, an increase of 7c per common share from the prior quarter that was driven by a 25 basis point increase in our net interest spread…Finally, AGNC concluded the first quarter with tangible ‘at risk’ leverage of 7.4x and a significant liquidity position of $7.0B of unencumbered cash and Agency MBS, which constituted 60% of our tangible equity at quarter end.”