AGNC Investment Corp. (AGNC - Free Report) reported second-quarter 2021 net spread and dollar roll income (excluding estimated catch-up premium amortization costs) of 76 cents per share, beating the Zacks Consensus Estimate of 64 cents. Also, the reported figure improved from the second-quarter 2020 number of 58 cents.
Adjusted net interest and dollar roll income (excluding catch-up premium amortization) was $446 million, surpassing the Zacks Consensus Estimate of $337.9 million. The reported figure also improved from the year-ago figure of $372 million.
Net interest income of $232 million declined 21.4% from the prior-year quarter’s $295 million.
The company reported a second-quarter comprehensive loss per common share of 97 cents against the prior quarter’s income of $1.33.
As of Jun 30, 2021, its tangible net book value per share (“BVPS”) was $16.39, down 7.5% from $17.72 as of Mar 31, 2021. Nonetheless, it compares favorably with BVPS of $14.92 as of Jun 30, 2020.
The economic loss on tangible common equity for the company in the reported quarter was 5.5%. This included a dividend per share of 36 cents and a decrease of $1.33 in tangible net BVPS.
Inside the Headlines
As of Jun 30, 2021, the company’s investment portfolio aggregated $87.5 billion. This included $58.1 billion of Agency mortgage backed securities, $27.4 billion of to-be-announced (TBA) securities, and $2 billion of credit risk transfer and non-Agency securities.
Inclusive of its net TBA position and net payable/ (receivable) for unsettled securities, AGNC Investment’s tangible net book value "at risk" leverage ratio was 7.9X as of Jun 30, 2021, compared with 7.7X in the prior quarter.
For the June-end quarter, the company's investment portfolio bore a weighted average actual constant prepayment rate of 25.7%, up from 24.6% witnessed in first-quarter 2021.
Excluding the net TBA position, AGNC Investment's average asset yield on its portfolio, excluding the net TBA position, was 1.73 % in the second quarter, significantly down from 3.78% recorded in the previous quarter.
For the June-end quarter, the combined average cost of funds, inclusive of interest rate swap costs, was 0.06%, up from 0.02% witnessed in the previous quarter.
Average net interest spread (excluding catch-up premium amortization) was 2.09%, up from 2% reported in the prior quarter.
As of Jun 30, 2021, AGNC Investment’s cash and cash equivalents totaled $947 million, down from $1.02 billion as of Dec 31, 2020.
Dividend Update
In the second quarter, AGNC Investment announced a dividend of 12 cents per share each for April, May and June. Notably, the company announced $10.8 billion in common stock dividends or $43.60 per common share since its initial public offering in May 2008 through second-quarter 2021.
AGNC Investment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We now look forward to the earnings releases of other mortgage REITs like Annaly Capital Management, Inc. (NLY - Free Report) , Arbor Realty Trust, Inc. (ABR - Free Report) and Chimera Investment Corporation (CIM - Free Report) , which are scheduled to release their results on Jul 28, Jul 30 and Aug 4, respectively.
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No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
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AGNC Investment Corp. (AGNC - Free Report) reported second-quarter 2021 net spread and dollar roll income (excluding estimated catch-up premium amortization costs) of 76 cents per share, beating the Zacks Consensus Estimate of 64 cents. Also, the reported figure improved from the second-quarter 2020 number of 58 cents.
Adjusted net interest and dollar roll income (excluding catch-up premium amortization) was $446 million, surpassing the Zacks Consensus Estimate of $337.9 million. The reported figure also improved from the year-ago figure of $372 million.
Net interest income of $232 million declined 21.4% from the prior-year quarter’s $295 million.
The company reported a second-quarter comprehensive loss per common share of 97 cents against the prior quarter’s income of $1.33.
As of Jun 30, 2021, its tangible net book value per share (“BVPS”) was $16.39, down 7.5% from $17.72 as of Mar 31, 2021. Nonetheless, it compares favorably with BVPS of $14.92 as of Jun 30, 2020.
The economic loss on tangible common equity for the company in the reported quarter was 5.5%. This included a dividend per share of 36 cents and a decrease of $1.33 in tangible net BVPS.
Inside the Headlines
As of Jun 30, 2021, the company’s investment portfolio aggregated $87.5 billion. This included $58.1 billion of Agency mortgage backed securities, $27.4 billion of to-be-announced (TBA) securities, and $2 billion of credit risk transfer and non-Agency securities.
Inclusive of its net TBA position and net payable/ (receivable) for unsettled securities, AGNC Investment’s tangible net book value "at risk" leverage ratio was 7.9X as of Jun 30, 2021, compared with 7.7X in the prior quarter.
For the June-end quarter, the company's investment portfolio bore a weighted average actual constant prepayment rate of 25.7%, up from 24.6% witnessed in first-quarter 2021.
Excluding the net TBA position, AGNC Investment's average asset yield on its portfolio, excluding the net TBA position, was 1.73 % in the second quarter, significantly down from 3.78% recorded in the previous quarter.
For the June-end quarter, the combined average cost of funds, inclusive of interest rate swap costs, was 0.06%, up from 0.02% witnessed in the previous quarter.
Average net interest spread (excluding catch-up premium amortization) was 2.09%, up from 2% reported in the prior quarter.
As of Jun 30, 2021, AGNC Investment’s cash and cash equivalents totaled $947 million, down from $1.02 billion as of Dec 31, 2020.
Dividend Update
In the second quarter, AGNC Investment announced a dividend of 12 cents per share each for April, May and June. Notably, the company announced $10.8 billion in common stock dividends or $43.60 per common share since its initial public offering in May 2008 through second-quarter 2021.
AGNC Investment currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We now look forward to the earnings releases of other mortgage REITs like Annaly Capital Management, Inc. (NLY - Free Report) , Arbor Realty Trust, Inc. (ABR - Free Report) and Chimera Investment Corporation (CIM - Free Report) , which are scheduled to release their results on Jul 28, Jul 30 and Aug 4, respectively.
Highest Returns for Any Asset Class
It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
Hurry, Download Special Report – It’s FREE >>
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