8-K - AGNC Investment Corp. - 2.02 / 9.01

Form 8-K - Current report: SEC Accession No. 0001423689-26-000095

Filing Date: 2026-04-20

Accepted: 2026-04-20 16:03:16

Documents: 15

Period of Report: 2026-04-20

Items: Item 2.02: Results of Operations and Financial Condition Item 9.01: Financial Statements and Exhibits

AGNC Investment Corp. (Filer) CIK : 0001423689 (see all company filings) EIN. : 261701984 | Fiscal Year End: 1231 Type: 8-K | Act: 34 | File No.: 001-34057 | Film No.: 26875019 SIC : 6798 Real Estate Investment Trusts (CF Office: 05 Real Estate & Construction)

1 | 8-K | agnc-20260420.htm iXBRL | 8-K

2 | EX-99.1 | agnc8kexhibit99133126.htm | EX-99.1

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EX-99.1 2 agnc8kexhibit99133126.htm EX-99.1 Document Exhibit 99.1 FOR IMMEDIATE RELEASE April 20, 2026 CONTACT: Investors - (301) 968-9300 Media - (301) 968-9303 AGNC INVESTMENT CORP. ANNOUNCES FIRST QUARTER 2026 FINANCIAL RESULTS Bethesda, MD - April 20, 2026 - AGNC Investment Corp. (“AGNC” or the “Company”) (Nasdaq: AGNC) today announced financial results for the quarter ended March 31, 2026. FIRST QUARTER 2026 FINANCIAL HIGHLIGHTS • $(0.18) comprehensive loss per common share, comprised of: ◦ $(0.17) net loss per common share ◦ $(0.01) other comprehensive loss (“OCI”) per common share on investments marked-to-market through OCI • $0.42 net spread and dollar roll income per common share 1 ◦ Excludes less than $0.01 per common share of estimated “catch-up” premium amortization benefit due to change in projected constant prepayment rate (“CPR”) estimates • $8.38 tangible net book value per common share as of March 31, 2026 ◦ Decreased $(0.50) per common share, or -5.6%, from $8.88 per common share as of December 31, 2025 • $0.36 dividends declared per common share for the first quarter • -1.6% economic return on tangible common equity for the quarter ◦ Comprised of $0.36 dividends per common share and $(0.50) decrease in tangible net book value per common share OTHER FIRST QUARTER HIGHLIGHTS • $94.7 billion investment portfolio as of March 31, 2026, comprised of: ◦ $84.4 billion Agency mortgage-backed securities (“Agency MBS”) ◦ $9.5 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 AGNC Investment Corp. April 20, 2026 Page 2 • 7.4x tangible net book value “at risk” leverage as of March 31, 2026 ◦ 7.4x average tangible net book value “at risk” leverage for the quarter • Unencumbered cash and Agency MBS totaled $7.0 billion as of March 31, 2026 ◦ Excludes unencumbered CRT and non-Agency securities ◦ Represents 60% of the Company’s tangible equity as of March 31, 2026 • 10.3% average projected portfolio life CPR as of March 31, 2026 ◦ 13.2% actual portfolio CPR for the quarter • 2.06% annualized net interest spread for the quarter 2 • Issued 38.0 million shares of common equity through At-the-Market (“ATM”) Offerings for net proceeds of $401 million ___________ 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. MANAGEMENT REMARKS “Agency MBS performance in the first quarter was driven by two divergent macroeconomic themes,” said Peter Federico, the Company’s President, Chief Executive Officer and Chief Investment Officer. “In January and February, the Administration’s focus on reducing interest rate volatility, maintaining mortgage spread stability, and improving housing affordability drove strong performance across the broader fixed income complex and Agency MBS specifically. This favorable investment environment was, however, quickly eclipsed in March by the war in Iran and the potential for more widespread conflict in the Middle East. The associated 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 the first quarter 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 the first quarter, 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. First, mortgage spreads to benchmark rates widened significantly in March and provide investors with compelling value on both an absolute and relative basis at these levels. Second, supply-demand technicals have improved as a result of higher mortgage rates, increased bond fund inflows, and proposed regulatory capital changes. Third, the higher rate environment also increases the likelihood of actions by the administration to stabilize or reduce mortgage spreads as a means to mitigate housing affordability issues. Finally, although interest rate volatility has increased and the path of future Federal Reserve monetary policy actions has become a bit more uncertain, we believe that, with some form of resolution or easing of tensions in the Middle East, these factors could quickly revert to positive catalysts for Agency MBS. As a result, our longer-term outlook for Agency MBS remains constructive, despite near-term challenges associated with heightened geopolitical and macroeconomic risks. Moreover, AGNC is well-positioned to capitalize on these favorable conditions and build upon our lengthy track-record of generating strong risk-adjusted returns over market cycles for our stockholders.” AGNC Investment Corp. April 20, 2026 Page 3 “AGNC’s negative 1.6% economic return on tangible common equity in the first quarter was comprised of $0.36 of dividends per common share and a $0.50 decrease 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 $0.42 for the first quarter, an increase of $0.07 per common share from the prior quarter that was driven by a 25 basis point increase in our net interest spread. During the quarter, AGNC issued over $400 million of common stock under our at-the-market issuance program, continuing our active capital management strategy to generate meaningful accretion for our common shareholders. Finally, AGNC concluded the first quarter with tangible ‘at risk’ leverage of 7.4x and a significant liquidity position of $7.0 billion of unencumbered cash and Agency MBS, which constituted 60% of our tangible equity at quarter end.” TANGIBLE NET BOOK VALUE PER COMMON SHARE As of March 31, 2026, the Company’s tangible net book value per common share was $8.38 per share, a decrease of -5.6% for the quarter compared to $8.88 per share as of December 31, 2025. The Company’s tangible net book value per common share excludes $526 million, or $0.46 and $0.47 per share, of goodwill as of March 31, 2026 and December 31, 2025, respectively. INVESTMENT PORTFOLIO As of March 31, 2026, the Company’s investment portfolio totaled $94.7 billion, comprised of: • $94.0 billion of Agency MBS and TBA securities, including: ◦ $90.0 billion of fixed-rate securities, comprised of: • $80.0 billion 30-year MBS, • $8.9 billion 30-year TBA securities, net, and • $1.1 billion 15 and 20-year MBS and TBA securities; and ◦ $4.0 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 March 31, 2026, 30-year fixed-rate Agency MBS and TBA securities represented 94% of the Company’s investment portfolio, compared to 95% as of December 31, 2025. As of March 31, 2026, the Company’s fixed-rate Agency MBS and TBA securities’ weighted average coupon was 4.95%, compared to 5.12% as of December 31, 2025, comprised of the following weighted average coupons: • 4.96% for 30-year fixed-rate securities; • 4.18% for 15-year fixed-rate securities; and • 3.75% 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 March 31, 2026, such positions had a fair value of $9.5 billion and a GAAP net carrying value of $(194) million reported in derivative assets/(liabilities) on the Company’s balance sheet, compared to $13.0 billion and $71 million, respectively, as of December 31, 2025. AGNC Investment Corp. April 20, 2026 Page 4 CONSTANT PREPAYMENT RATES The Company’s weighted average projected CPR for the remaining life of its Agency securities held as of March 31, 2026 increased to 10.3% from 9.6% as of December 31, 2025. The Company’s weighted average actual CPR for the first quarter was 13.2%, compared to 9.7% for the prior quarter. The weighted average cost basis of the Company’s investment portfolio was 101.4% of par value as of March 31, 2026. The Company’s investment portfolio generated net premium amortization cost of $(52) million, or $(0.05) per common share, for the first quarter, which includes a “catch-up” premium amortization benefit 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 first quarter. This compares to net premium amortization cost for the prior quarter of $(51) million, or $(0.05) per common share, including a “catch-up” premium amortization cost of $(7) million, or $(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 4.95% for the first quarter, compared to 4.87% for the prior quarter. Excluding “catch-up” premium amortization, the Company’s average asset yield was 4.93% for the first quarter, compared to 4.90% for the prior quarter. Including the TBA position and excluding “catch-up” premium amortization, the Company’s average asset yield for the first quarter was 4.98%, compared to 4.91% for the prior quarter. For the first quarter, the weighted average interest rate on the Company’s repurchase agreements was 3.79%, compared to 4.13% for the prior quarter. For the first quarter, the Company’s TBA position had an implied financing cost of 3.45%, compared to 4.03% for the prior quarter. Inclusive of interest rate swaps, the Company’s combined weighted average cost of funds for the first quarter was 2.92%, compared to 3.10% 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 first quarter was 2.06%, compared to 1.81% 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 first quarter of $0.42 per common share, compared to $0.35 per common share for the prior quarter. Net spread and dollar roll income excludes less than $0.01 and $(0.01) per common share of estimated “catch-up” premium amortization benefit / (cost) for the first quarter and prior quarter, respectively. 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. AGNC Investment Corp. April 20, 2026 Page 5 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. LEVERAGE As of March 31, 2026, $75.8 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 $11.8 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. Inclus