Published on 23 Apr 2024 on Zacks via Yahoo Finance
AGNC Investment (AGNC) Q1 Earnings Beat on Higher Asset Yield
AGNC Investment Corp.’s AGNC first-quarter 2024 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization benefit) of 58 cents beat the Zacks Consensus Estimate of 56 cents. However, the bottom line declined from the 60 cents reported in the previous quarter.Adjusted net interest and dollar roll income of $496 million moved down from $497 million in the previous quarter.The company reported first-quarter comprehensive income per common share of 48 cents compared with $1 in the prior quarter.
Inside the Headlines
Net interest expenses were $30 million compared with $26 million in the prior quarter. The Zacks Consensus Estimate was pegged at $386 million.AGNC Investment's average asset yield on its portfolio was 4.56% in the first quarter, up from 4.47% reported in the prior quarter.The combined weighted average cost of funds, inclusive of interest rate swap, was 1.58% compared with 1.39% in the prior quarter.The average net interest spread (excluding estimated "catch-up" premium amortization benefits) was 2.98%, down from 3.08% in the previous quarter.As of Mar 31, 2024, AGNC’s average tangible net book value "at risk" leverage ratio was 7X compared with 7.4X in the prior quarter.In the first quarter, the company's investment portfolio bore an average actual constant prepayment rate of 5.7%, down from 6.2% in the previous quarter.As of Mar 31, 2024, tangible net book value per common share (BVPS) was $8.84, up from $8.70 as of Dec 31, 2023.The economic return on tangible common equity was 5.7%. In the previous quarter, the metric was 12.1%. This included a dividend per share of 36 cents and an increase of 14 cents in tangible net BVPS.As of Mar 31, 2024, the company’s investment portfolio aggregated $63.3 billion. This included $53.7 billion of Agency mortgage-backed securities, $8.4 million of net forward purchases of Agency MBS in the to-be-announced market and $1.1 billion of credit risk transfer and non-Agency securities and other mortgage credit investments.As of Mar 31, 2024, AGNC Investment’s cash and cash equivalents totaled $505 million, down from $518 billion as of Dec 31, 2023.