AGNC Investment Corp (AGNC) Announces Q3 2023 Financial Results
AGNC reported a comprehensive loss of $(1.02) per common share for Q3 2023.
The company's tangible net book value per common share decreased by 14.0% from $9.39 to $8.08.
AGNC declared dividends of $0.36 per common share for the third quarter.
The company's investment portfolio stood at $59.3 billion as of September 30, 2023.
AGNC Investment Corp (NASDAQ:AGNC) released its Q3 2023 financial results on October 30, 2023. The company reported a comprehensive loss of $(1.02) per common share, which includes a net loss of $(0.68) per common share and other comprehensive loss of $(0.34) per common share on investments marked-to-market through OCI. The tangible net book value per common share decreased by 14.0% from $9.39 to $8.08.
Financial Highlights
AGNC reported net spread and dollar roll income of $0.65 per common share, excluding the estimated "catch-up" premium amortization benefit. The company declared dividends of $0.36 per common share for the third quarter, resulting in an economic return on tangible common equity of -10.1% for the quarter.
As of September 30, 2023, AGNC's investment portfolio stood at $59.3 billion, which includes $55.9 billion in Agency MBS, $2.4 billion net TBA mortgage position, and $1.1 billion in credit risk transfer ("CRT") and non-Agency securities and other mortgage credit investments.
Management Remarks
A complex set of domestic and global factors, including heightened geopolitical risks, Treasury supply concerns, and an approaching inflection point in the Federal Reserve's monetary policy, drove the significant volatility and underperformance in the Treasury and other fixed income markets," said Peter Federico, the Company's President and Chief Executive Officer.
In the third quarter, AGNC generated $0.65 per common share of net spread and dollar roll income, excluding 'catch-up' premium amortization," said Bernice Bell, the Company's Executive Vice President and Chief Financial Officer. "AGNC's economic return for the quarter was -10.1%, comprised of $0.36 of dividends per common share and a $(1.31) decline in tangible net book value per common share as a result of the significant mortgage spread widening during the quarter."
Financial Statements Summary
The company's total assets stood at $69.991 billion as of September 30, 2023, while total liabilities were $62.541 billion. The total stockholders' equity was $7.450 billion. The comprehensive loss available to common stockholders for Q3 2023 was $(636) million.
Despite the challenging market conditions, AGNC's management remains optimistic about the investment environment and the company's ability to navigate through the volatility. The company continues to focus on maintaining its financial health and delivering value to its shareholders.
Explore the complete 8-K earnings release (here) from AGNC Investment Corp for further details.
This article first appeared on GuruFocus.
