AGNC Investment posts comprehensive loss of $1.28 per share as book value falls

AGNC Investment Corp. (AGNC) posted a third-quarter comprehensive loss of $1.28 per common share, the company said Monday in a press release attached to a regulatory filing. The results cover the quarter ended Sept. 30, 2026.

The company attributed the loss to pressure in fixed income markets, particularly in the final weeks of September, when interest rates rose sharply and rate volatility increased.

Here's how the company did:

• Comprehensive loss per common share: $(1.28), vs. $0.52 in the prior quarter and $0.78 a year earlier
• Net loss per common share: $(1.17), vs. net income of $0.53 in the prior quarter and $0.73 a year earlier
• Net spread and dollar roll income per common share: $0.37, vs. $0.40 in the prior quarter and $0.35 a year earlier
• Interest income: $1,196 million, vs. $1,014 million in the prior quarter and $903 million a year earlier
• Net loss: $(1,357) million, vs. net income of $654 million in the prior quarter and $806 million a year earlier

Net spread and dollar roll income, a non-GAAP measure, excludes $0.05 per common share of estimated “catch-up” premium amortization benefit tied to a change in projected prepayment estimates.

Other gain (loss), net was a loss of $1,731 million, compared with a gain of $379 million in the prior quarter. The loss included $5,015 million of net unrealized losses on investment securities measured at fair value through net income.

Partial offsets came from $2,052 million of net gains on interest rate swaps and $1,228 million of net gains on U.S. Treasury positions. Other comprehensive loss was $140 million, or $0.11 per share, compared with $7 million in the prior quarter.

Tangible net book value per common share was $7.13 at Sept. 30, a decrease of 16.9% from $8.58 at June 30, 2026, and $8.28 a year earlier. The figure excludes $526 million, or $0.42 per share, of goodwill.

Economic return on tangible common equity was -12.7% for the quarter, against 6.7% in the prior quarter and 10.6% a year earlier. The return comprised $0.36 in dividends declared and a $1.45 decrease in tangible net book value per share.

The company declared $0.36 per common share in dividends for the quarter, the same as in the prior quarter and the year-earlier period.

The investment portfolio totaled $94.4 billion at quarter end. It comprised $91.4 billion of Agency mortgage-backed securities, $2.4 billion of net forward purchases of Agency MBS in the to-be-announced market, and $0.6 billion of credit risk transfer and non-Agency securities and other mortgage credit investments.

Tangible net book value “at risk” leverage was 7.9x at quarter end, up from 7.4x on June 30, and averaged 7.6x for the quarter. Unencumbered cash and Agency MBS totaled $6.3 billion, or 57% of tangible equity.

Hedges covered 90% of the company’s funding liabilities at quarter end, up from 73% on June 30. The company held $74.6 billion in notional pay-fixed interest rate swaps at an average fixed pay rate of 2.96%.

Its Investment Securities Repo carried a weighted average interest rate of 3.95%, up from 3.75%. A total of $45.7 billion, or 53%, was funded through its captive broker-dealer subsidiary, Bethesda Securities, LLC.

Net interest spread, including the TBA position and interest rate swaps and excluding catch-up amortization, was 1.86%, down from 2.00%. Average total cost of funds rose to 3.09% from 2.89%.

Prepayment speeds declined. The weighted average projected CPR for the remaining life of Agency securities fell to 6.7% from 8.6%, and actual CPR for the quarter was 8.2%, compared with 13.0% in the prior quarter.

President, Chief Executive Officer and Chief Investment Officer Peter Federico said Agency MBS was the worst performing sector of the Bloomberg U.S. Aggregate Bond Index during the quarter.

Federico said the outlook improves once Treasury volatility subsides. “Together, these factors support a constructive outlook for Agency MBS performance,” he said.

Executive Vice President and Chief Financial Officer Bernice Bell said AGNC was added to the S&P MidCap 400 Index during the third quarter, which she called “an important milestone for the Company.”

Bell said the index change drove elevated trading volumes, and the company used that liquidity to issue 97.6 million shares of common stock through its at-the-market program for net proceeds of $992 million.

Total operating expense was $28 million, down from $30 million in the prior quarter. Compensation and benefits were $16 million, compared with $19 million.

The release did not include new earnings guidance. The company will hold a stockholder call on Oct. 20, 2026, at 8:30 a.m. ET, with a slide presentation available on its website.