AGNC

Download the Complete Report Here The MITT transaction materially improves value realization for CHMI shareholders while preserving meaningful participation in the combined platform. CHMI entered into a definitive agreement to be acquired by TPG Mortgage Investment Trust (MITT), with closing targeted for 4Q26. The $3.10 signing value represents a 29% premium to CHMI’s unaffected $2.41 share price and approximately 0.98x June 30 BVPS of $3.16, while roughly 30% of announced consideration is cash and CHMI holders retain approximately 27% ownership of the combined company. Through the fixed 0.3063 exchange ratio, the stock component provides both near-term value realization and continued exposure to MITT’s earnings, book value and potential rerating following closing. Strategically, the merger creates a larger and more diversified residential mortgage REIT with a clearer path to earnings and valuation upside. The combined investment portfolio is expected to total approximately $9.0 billion, while management expects $7-$9 million of annual operating efficiencies, 2027 earnings accretion and lower pro forma economic leverage of roughly 2.9x. TPG’s direct ~$20 million / $0.52-per-share cash contribution, proprietary securitization capabilities and experience originating, acquiring and managing MSRs add further support, with greater scale, lower unit costs and broader capital-allocation flexibility providing multiple avenues for value creation across the combined platform. 2Q26 EAD beat expectations as stronger RMBS carry and dollar-roll income drove the best quarterly core earnings performance since 1Q25. EAD increased to $0.15/share from $0.14 in 1Q26 and $0.11 in 4Q25, while dividend coverage expanded to approximately 1.5x on the $0.10 quarterly payout. The stronger-than-expected print supported an upward revision in the Street’s 2026E EAD estimate to $0.59/share from $0.55, with current estimates of $0.15/share for both 3Q26E and 4Q26E. Lower funding costs and wider RMBS spreads improved the quality of 2Q26 earnings despite higher prepayments and modest book-value pressure. Net interest income rose to $4.7 million, RMBS net interest spread widened to approximately 3.45% from 2.90%, and aggregate leverage declined to 5.02x from 5.49x, while unrestricted cash increased to $52.1 million from $46.7 million. Offsetting these gains, RMBS CPR increased to 9.7%, MSR CPR rose to 6.3%, BVPS declined modestly to $3.16 from $3.23, and Real Genius required a $2.8 million impairment. Valuation is now anchored by the transaction, while MITT’s valuation gap versus peers and merger synergies preserve meaningful upside. At $2.79, CHMI trades at approximately 0.88x book and 4.7x 2026E EAD, while MITT trades at roughly 0.6x book and 5.6x NTM earnings versus peer averages of approximately 0.9x and 6.4x. The fixed exchange ratio therefore gives CHMI holders continued exposure to any normalization in MITT’s valuation, while expected annual operating efficiencies, 2027 earnings accretion, and greater scale provide additional avenues for value creation. CHMI entered into a definitive agreement to be acquired by TPG Mortgage Investment Trust (MITT), combining its Agency RMBS and conventional MSR platform with MITT’s broader residential credit franchise. Under the agreement signed August 9, 2026, each CHMI common share will receive 0.3063 MITT common shares plus $0.93 in cash, with $0.41/share funded by MITT and $0.52/share contributed by MITT’s external manager, AG REIT Management, an affiliate of TPG. Based on MITT’s August 7 closing price of $7.09, the consideration was worth $3.10 per CHMI share, implying an aggregate transaction value of approximately $117.5 million, a 29% premium to CHMI’s unaffected $2.41 closing price and a 32% premium to its 30-day VWAP. Importantly, approximately 30% of announced consideration is cash, including roughly $20 million funded by TPG and $15 million by MITT, providing CHMI holders with a meaningful element of certain value at closing while preserving upside participation through the stock component. The transaction is expected to close in 4Q26, subject to stockholder approvals and customary closing conditions. The transaction crystallizes much of CHMI’s standalone discount to book while retaining meaningful upside through ownership in the combined company. CHMI ended 2Q26 with BVPS of $3.16, versus an unaffected share price of $2.41, or approximately 0.76x book, while the $3.10 announced consideration equates to roughly 0.98x June 30 BVPS. The fixed 0.3063 exchange ratio, established using adjusted June 30 book values of CHMI and MITT, leaves CHMI holders with approximately 27% ownership of the combined company. MITT’s June 30 BVPS was $10.00 versus its $7.09 August 7 close, or approximately 0.71x book; accordingly, the exchange ratio represents approximately $3.06/share of MITT book value compared with $2.17/share of market value at announcement. Including the $0.93 cash component, the transaction presentation shows $3.99/share of illustrative value on a MITT book-value basis, approximately 66% above CHMI’s unaffected price. While $3.99 is not fixed transaction consideration, the structure allows CHMI holders to monetize most of CHMI’s discount to book while rolling the majority of consideration into MITT at a meaningful discount to its own book value, preserving potential upside if the combined company’s valuation normalizes. Strategically, the combination creates a ~$9.0 billion residential mortgage platform while materially broadening CHMI’s access to capital, financing and securitization capabilities. CHMI contributes an Agency-oriented platform centered on Agency RMBS and conventional MSRs, while MITT brings a larger residential credit franchise spanning Non-Agency mortgage assets and home equity. The combined investment portfolio is expected to total approximately $9.0 billion, comprising 72.0% Non-Agency Residential Credit, 14.4% Agency RMBS and MSRs, 12.6% Home Equity and 1.0% other investments. This should create a more diversified earnings mix, with CHMI’s Agency carry and MSR cash flows complementing MITT’s credit-oriented earnings profile. CHMI’s conventional MSR platform represented approximately $211 million of investment value and $15.2 billion of underlying UPB at June 30, adding a differentiated servicing asset to MITT’s broader credit platform. MITT management also expects the MSR portfolio to contribute to earnings immediately and provide an additional revenue stream, while TPG’s substantial experience originating, acquiring and managing MSRs strengthens the strategic fit of the servicing platform within MITT. Importantly, the combined company will gain access to the broader resources of TPG, a global alternative asset manager with approximately $327 billion of AUM, including its proprietary securitization platform and broader credit and asset-based finance capabilities. This should broaden financing options and improve capital-allocation flexibility across Agency and credit assets, while management also indicated that portions of the acquired portfolio may be retained or rotated over time as relative-value opportunities evolve. TPG’s backing adds an important layer of strategic and financial support to the combination. MITT’s external manager, an affiliate of TPG, is contributing approximately $20 million, or $0.52 per CHMI share, toward the cash consideration while also providing access to TPG’s $327 billion asset-management platform, proprietary securitization capabilities and residential mortgage expertise. TPG’s experience originating, acquiring and managing MSRs is particularly relevant to CHMI’s conventional servicing portfolio, while the broader platform should expand financing, capital-allocation and liquidity options for the combined company. The transaction also meaningfully improves operating scale and financial efficiency, providing a clear path to earnings accretion. The merger is expected to add approximately $1.3 billion, or 17%, to MITT’s investment portfolio, increase MITT’s market capitalization by approximately 36%, and expand total equity capital to roughly $742 million. The transaction also expands MITT through permanent equity capital without requiring incremental unsecured corporate debt, preserving balance-sheet flexibility as the combined platform scales. Management expects approximately $7-$9 million of annual operating expense efficiencies, net of incremental estimated management-fee expense, as the combined cost base is spread across a substantially larger equity platform. The transaction is expected to be earnings accretive in 2027, within one year of closing, while pro forma economic leverage is expected to settle at approximately 2.9x, which management views as derisking CHMI’s historical profile while maintaining a conservative balance sheet relative to peers. The combination should therefore translate greater scale into a lower effective expense burden, improved financing flexibility and a broader opportunity set for capital deployment, supporting stronger long-term earnings capacity across the residential mortgage platform. The transaction preserves substantially equivalent treatment for CHMI preferred shareholders while strengthening governance and alignment in the combined company. CHMI’s 8.20% Series A and 8.250% Series B preferred shares are expected to convert 1-for-1 into newly issued MITT preferred securities with substantially equivalent rights. MITT’s existing management team will continue to lead the combined company, while two CHMI-designated independent directors will join the board, increasing it to eight members. Alignment is further supported by an amendment to MITT’s manager incentive-fee framework, which will be based on the combined company’s pro forma book value and EAD. Approximately 11.608 million new MITT common shares are expected to be issued to CHMI holders. Execution and closing remain the principal near-term transaction considerations. Both boards unanimously approved the merger, but completion remains subject to CHMI and MITT stockholder approval, effectiveness of the Form S-4, required regulatory approvals, NYSE listing of the new securities and customary closing conditions. The companies are targeting a 4Q26 close, with an outside date of March 9, 2027, subject to a possible 60-day regulatory extension. From a CHMI shareholder perspective, the main variable through closing is MITT’s stock price: the fixed 0.3063 exchange ratio means the market value of the stock component—approximately 70% of announced consideration at signing—will move with MITT shares, while the $0.93/share cash component remains fixed. Accordingly, through closing, CHMI’s realized transaction value will be driven primarily by MITT’s share price, the fixed 0.3063 exchange ratio, the $0.93 cash component and successful completion of the merger, while standalone EAD and book value remain relevant principally as markers of underlying value through closing. Dividend treatment through closing provides additional continuity for CHMI shareholders. The merger agreement permits CHMI to declare a prorated dividend immediately prior to closing based on its then-most-recent quarterly dividend for the period since the last dividend record date, together with any additional distribution required to preserve REIT qualification. This should help preserve the economic value of CHMI’s dividend accrual through the closing date, subject to the terms of the merger agreement. Core earnings continued to improve in 2Q26, with EAD reaching the strongest quarterly level since 1Q25 and dividend coverage expanding further. EAD attributable to common shareholders increased to $5.5 million, or $0.15/share, in 2Q26, from $0.14/share in 1Q26 and $0.11/share in 4Q25, marking CHMI’s strongest quarterly EAD performance since 1Q25 and exceeding the $0.13/share Street estimate. The sequential improvement was supported by stronger RMBS carry, lower borrowing costs and higher TBA dollar-roll income of $1.4 million versus $0.4 million in 1Q26, partially offset by higher G&A. As a result, coverage of the $0.10 common dividend improved to approximately 1.5x, from 1.4x in 1Q26 and 1.1x in 4Q25. The stronger earnings run-rate also supported an upward revision in the Street’s 2026E EAD estimate (source: TIKR) to $0.59/share from $0.55 previously. GAAP results improved as well, with net income applicable to common shareholders of $1.3 million, or $0.04/share, compared with a $(0.05)/share loss in 1Q26. The improvement in EAD reflects stronger recurring carry as lower financing costs continued to lift net interest income and RMBS spreads. Net interest income increased to $4.7 million from $4.5 million, while interest expense declined to $10.0 million from $11.4 million, helping RMBS net interest spread widen to approximately 3.5% from 2.90% in 1Q26. Importantly, the improvement came despite a smaller financed asset base, with average repo borrowings declining roughly 10% q/q, indicating better earnings efficiency rather than growth driven by higher leverage. Total other loss narrowed to $4.2 million from $7.7 million, as a $12.1 million realized derivative gain partially offset continued unrealized derivative and portfolio losses, including the $2.8 million Real Genius impairment. Operating expenses increased to $4.0 million from $3.3 million, partly reflecting transaction-related costs. Overall, the quarter showed stronger underlying spread economics and recurring earnings, while continued realized and unrealized mark volatility reinforces EAD as the cleaner measure of core portfolio performance. Book value pressure moderated materially from 1Q26, while total economic return turned positive as stronger carry and the dividend helped absorb a still-volatile rate backdrop. BVPS ended 2Q26 at $3.16 versus $3.23 at March 31, a 2.2% sequential decline, compared with a much sharper 6.1% decline in 1Q26. Including the $0.10/share quarterly dividend, CHMI generated a 0.9% total economic gain, a meaningful improvement from the negative economic return in the prior quarter. The backdrop remained challenging as Treasury yields moved higher and lower-coupon Agency RMBS weakened, yet the comparatively modest $0.07/share decline in book value suggests that stronger carry, portfolio construction and hedging provided substantially better downside absorption than in 1Q26. BVPS remains below the $3.44 year-end 2025 level, but the quarter showed a notably better balance between distributable earnings and book-value preservation. The RMBS portfolio remained the primary earnings engine, with improved spread economics more than offsetting a smaller securities balance and somewhat faster prepayments. RMBS carrying value declined to $1.08 billion, from $1.21 billion at the year-end while the portfolio remained entirely Agency-backed and represented 79% of invested assets excluding cash. Despite the smaller asset base, net interest income increased 6.3% q/q to $4.7 million, as lower financing costs and stronger asset yields drove net interest spread to 3.45% from 2.90% in 1Q26, a 55-bp sequential improvement. Prepayments accelerated, with RMBS CPR increasing to 9.7% from 8.0%, creating some incremental reinvestment and premium-amortization risk, but CHMI also increased its RMBS hedge ratio to 65% from 63%. Overall, the combination of wider spreads, lower funding costs and greater hedge protection supported stronger core earnings despite reduced balance-sheet exposure and higher prepayment activity. MSRs continued to provide complementary servicing cash flow, although portfolio runoff and faster prepayments weighed on sequential results. Net servicing income declined 7.0% q/q to $7.4 million from $7.9 million, as servicing fee income fell to $9.7 million from $10.2 million while servicing costs remained broadly stable at $2.3 million. MSR UPB declined to approximately $15.2 billion from $15.6 billion, with carrying value easing to $211.1 million, while MSRs represented roughly 21% of investments excluding cash and Servicing Related Assets represented approximately 39% of equity. Prepayment activity increased, with net CPR rising to 6.3% from 4.5% in 1Q26, though the portfolio’s low 3.49% weighted-average mortgage coupon continues to provide meaningful refinance protection. Credit quality also remained solid, with a 755 original FICO, 76.5% original LTV and 1.1% 60+ day delinquencies. Recapture was minimal at 0.2%, limiting the offset to natural runoff, but the low-coupon collateral profile continues to support the durability of servicing cash flows. Hedge positioning continued to absorb rate and basis volatility, while lower net mark-to-market pressure supported the sequential improvement in earnings. CHMI generated $8.4 million of realized derivative gains excluding swap periodic income, led by gains on TBAs, Treasury futures and Eris SOFR futures, while $3.7 million of periodic swap interest income provided additional support to EAD. These benefits were partially offset by a $9.3 million unrealized derivative loss, reflecting continued quarter-to-quarter mark volatility. Despite this, total other loss narrowed to $4.2 million from $7.7 million in 1Q26, contributing to the improvement in GAAP results. Hedge positioning also continued to evolve, with interest-rate swap notional at $767 million, net TBA notional declining to $267 million, and Eris SOFR futures increasing to $82 million at quarter-end. Overall, the hedge book continued to enhance carry and protect against rate and basis risk even as unrealized derivative valuations remained volatile. The $2.8 million Real Genius credit loss and impairment reduces the near-term optionality of CHMI’s digital-origination initiative. The charge relates to CHMI’s investment in Real Genius LLC and associated promissory note, representing a notable reversal from the optionality attributed to the platform in prior quarters. CHMI recorded a $2.3 million credit-loss allowance against the $3.2 million promissory note, leaving a net carrying value of approximately $0.9 million. Importantly, the impairment is excluded from EAD, helping explain why distributable earnings improved to $0.15/share even as the investment weakened economically and contributed to GAAP pressure. We therefore assign substantially less standalone value to Real Genius, with future value more dependent on recovery of the remaining exposure than on scaling the origination platform. Its strategic importance also becomes less significant under the proposed MITT combination, where CHMI’s $15.2 billion MSR portfolio would sit within a broader ~$9 billion residential mortgage platform with access to TPG’s larger origination, investment and securitization capabilities. Liquidity and leverage improved as CHMI reduced financed RMBS exposure, leaving the balance sheet more conservatively positioned entering the proposed MITT merger. Aggregate leverage declined to 5.02x from 5.49x in 1Q26, while quarter-end repo borrowings fell to $1.01 billion from $1.12 billion and the weighted-average repo rate improved to 3.76%. Unrestricted cash increased approximately 12% q/q to $52.1 million from $46.7 million, with total unrestricted and restricted cash of $77.5 million, while notes payable declined to $140.6 million. The reduction in leverage and financed assets, together with lower funding costs and higher liquidity, provides greater protection against margin pressure and additional balance-sheet flexibility ahead of the targeted 4Q26 transaction close. Capital allocation remains conservative, with CHMI prioritizing liquidity and portfolio economics rather than accessing the ATM or repurchasing shares. No common shares were issued through the ATM during 1H26, leaving approximately $34.6 million of capacity under the $150 million common-stock ATM program; this contrasts with 2025, when CHMI issued 4.9 million shares at an average $3.00/share and raised approximately $14.7 million of gross proceeds. CHMI also made no common or preferred-stock repurchases during the quarter, leaving approximately $4.7 million available under the common repurchase authorization, while the existing preferred-stock repurchase program authorizes up to $50 million of repurchases. With BVPS at $3.16, unrestricted cash of $52.1 million, 5.0x leverage and the common dividend covered 1.5x by EAD, the lack of ATM issuance or discretionary share repurchases is consistent with preserving balance-sheet flexibility rather than materially changing capital structure immediately before the subsequent transaction announcement. The stronger 1H26 earnings run-rate supports a higher second-half baseline, with improved RMBS carry providing a firmer foundation for standalone earnings through the expected merger close. CHMI generated $0.29/share of EAD in 1H26 versus $0.27/share in 1H25, while Street estimates sourced from TIKR now show $0.15/share in both 3Q26 and 4Q26, implying $0.30/share for 2H26 and lifting the full-year estimate from $0.55 to $0.59/share. Quarterly EAD has improved from $0.11 in 4Q25 to $0.14 in 1Q26 and $0.15 in 2Q26, and the revised second-half estimates effectively assume that the 2Q run-rate is sustained. Support for the upward revision comes from lower funding costs and stronger RMBS spread economics, with 2Q NII of $4.7 million and RMBS net interest spread of approximately 3.5%, while higher MSR CPR of 6.3%, RMBS CPR of 9.7%, and operating expenses of approximately $4.0 million versus $3.3 million in 1Q26 remain key offsets. At the revised $0.59/share estimate, CHMI’s $0.40 annualized common dividend remains comfortably covered at roughly 1.5x. Given the expected 4Q26 merger close, we view the revised estimate primarily as a measure of the standalone earnings capacity CHMI brings into the transaction. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. The transaction creates value for CHMI shareholders through a combination of near-book value realization, meaningful cash consideration and retained participation in a larger platform with further rerating potential. The $3.10 signing value equates to approximately 0.98x CHMI’s June 30 BVPS of $3.16, versus roughly 0.76x book at the unaffected $2.41 share price, while approximately 30% of announced consideration is cash and CHMI holders retain about 27% ownership of the combined company. Importantly, the stock component rolls CHMI shareholders into MITT, which trades at approximately 0.6x book and 5.6x NTM earnings versus peer averages of roughly 0.9x and 6.4x. Successful realization of $7-$9 million of annual operating efficiencies, expected 2027 earnings accretion and greater scale and liquidity therefore provide multiple avenues for further value creation beyond the initial transaction premium. The signing valuation validates the standalone value identified in our prior CHMI framework, while the improved earnings outlook strengthens the underlying transaction economics. The $3.10 announced value falls within the approximately $3.0-$3.9/share range highlighted in our last EPS note and represents a substantial recovery from CHMI’s unaffected $2.41 price. The deal was also struck against improving fundamentals: 2Q26 EAD increased to $0.15/share, the strongest quarterly level since 1Q25, while 2026E EAD/share has been revised higher to $0.59 from $0.55. At the current $2.79 share price, CHMI trades at approximately 0.88x June 30 book, 4.7x 2026E EAD and a 14.3% annualized dividend yield, with a market capitalization of approximately $103 million. We therefore view the transaction as recognizing substantially more of CHMI’s underlying book value and earnings capacity than was reflected in the pre-deal public-market valuation. MITT’s valuation provides the principal source of retained longer-term upside for CHMI shareholders following closing. At approximately 0.6x book and 5.6x NTM earnings, MITT trades well below peer averages of roughly 0.9x and 6.4x, respectively, while its 15.2% dividend yield is broadly in line with the peer average of 15.3%. This suggests MITT’s discount is concentrated primarily in its book-value and earnings multiples rather than its income proposition. Because CHMI holders receive a fixed 0.3063 MITT shares per CHMI share, they retain direct exposure to any normalization in MITT’s valuation as the combined platform realizes expected cost efficiencies, earnings accretion and greater operating scale. The transaction therefore both recognizes CHMI at close to book value and preserves additional upside through participation in a potential rerating of MITT. Near-term transaction value remains sensitive to MITT’s share price, but we view this separately from the longer-term value-creation opportunity. At MITT’s current $6.32 share price, the fixed 0.3063 exchange ratio plus $0.93 cash implies consideration of approximately $2.87/share, compared with the $3.10 signing-date value based on MITT’s $7.09 August 7 close. Against CHMI at $2.79, the current merger spread is approximately 2.7%. While the mark-to-market consideration will continue to fluctuate through closing, CHMI holders retain approximately 27% of the combined company, making successful transaction completion, preservation of book value and realization of the expected annual efficiencies and 2027 earnings accretion the more important longer-term valuation drivers. Read Exec Edge’s Initiation on Cherry Hill Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] -0- The post Cherry Hill Mortgage’s 29% Premium Deal: $9B Merger Opens Door to Bigger Upside – Quarterly Update Report appeared first on ExecEdge.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. AGNC Investment (AGNC) is drawing fresh attention after reporting second quarter 2026 earnings that showed net income of US$654 million, compared with a net loss of US$140 million in the same period last year. See our latest analysis for AGNC Investment. The recent earnings rebound and ongoing monthly dividend headlines have arrived during a mixed period for AGNC Investment’s stock, with the share price down 2.4% year to date but a 1 year total shareholder return of 28.9%. This indicates stronger momentum for income focused holders. If AGNC Investment’s income story has your attention, this can be a good moment to see what other high yielding ideas look like using a screener of 9 dividend fortresses AGNC Investment’s income profile and recent swing back to profit suggest a solid underlying franchise, yet the stock is only modestly lower year to date. How does that combination of business strength and current price compare on valuation today? On a simple earnings yardstick, AGNC Investment currently trades on a P/E of 5.9x, which screens as inexpensive compared with both peers and the wider US Mortgage REITs industry. The P/E ratio compares the company’s share price with its earnings per share. For income focused investors looking at AGNC Investment, this metric helps frame how much the market is paying today for each dollar of current earnings. AGNC is flagged as trading at good value against several benchmarks. Its 5.9x P/E sits below the US Mortgage REITs industry average of 9.6x and also below a peer group average of 11.8x. In addition, the stock is described as trading at a 42.8% discount to an estimated fair P/E of 11.3x, which shows the extent of the gap between current pricing and that benchmark. Explore the SWS fair ratio for AGNC Investment Result: Price-to-earnings of 5.9x (UNDERVALUED) However, AGNC Investment’s revenue and net income have both declined on an annual basis, and any further weakness in housing credit conditions could challenge the current valuation story. Find out about the key risks to this AGNC Investment narrative. While the 5.9x P/E suggests AGNC Investment is inexpensive, the SWS DCF model provides a different reference point. It places fair value at $18.63 per share versus the current $10.66 price, indicating the stock trades well below that estimate. Which signal do you weigh more heavily? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out AGNC Investment for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 55 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With mixed signals around AGNC Investment’s value, this is a good time to review the data yourself and decide how the risk and reward balance looks to you. To see the key issues investors are weighing on both sides, start with these 3 key rewards and 3 important warning signs. If AGNC Investment has sharpened your focus on income and value, do not stop here. Broader, high quality ideas can help round out your watchlist. Target potential mispricing opportunities by scanning for companies flagged as strong value candidates through the 55 high quality undervalued stocks. Strengthen your resilience by reviewing stocks highlighted for robust finances and healthy fundamentals using the solid balance sheet and fundamentals stocks screener (45 results). Broaden your opportunity set by checking a curated screener containing 19 high quality undiscovered gems that many investors may not be watching yet. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AGNC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

AGNC Investment Corp. AGNC used its second-quarter earnings call to make a forward-looking case for Agency mortgage-backed securities, even as management described the macro backdrop as unusually volatile. The core message was that supply and demand trends in mortgages are improving despite geopolitical and rate uncertainty. AGNC reported earnings per share (EPS) of $0.40, beating the Zacks Consensus Estimate of $0.38. However, revenues of $305 million fell short of the consensus mark of $364.40 million. AGNC Investment Corp. price-consensus-eps-surprise-chart | AGNC Investment Corp. Quote Peter Federico, president, CEO and chief investment officer, said that the quarter was shaped by rising tensions between the United States and Iran, higher energy prices and supply chain disruptions, all of which pushed Treasury yields higher and flattened the curve. Federico nevertheless argued that the setup for Agency MBS improved. Federico said that elevated mortgage rates are reducing projected Agency MBS supply while demand remains firm. On the call, he added that bond fund inflows topped $400 billion in the first half, with banks, foreign investors and REITs also expected to remain net buyers of Agency MBS. Federico also contrasted mortgage valuations with corporate credit and said that Agency MBS still look attractive against corporate bonds that are trading at historically tight spreads despite heavy issuance and rising credit concerns. Bernice Bell, executive vice president and CFO, said that AGNC generated a 6.7% economic return on tangible common equity in the quarter, made up of $0.36 in dividends per share and a $0.20 rise in tangible net book value per share. Tangible net book value ended June at $8.58, up 2.4% from $8.38 as of March-end. Comprehensive income came in at $0.52 per common share, while net spread and dollar roll income was $0.40 per share, down from $0.42 in the prior quarter. Bell tied that decline to a 6-basis-point narrowing in net interest spread as lower asset yields from portfolio repositioning partly offset somewhat lower funding costs. The press release also showed an annualized net interest spread of 2.00% for the quarter, down from 2.06% in the first quarter, with average total cost of funds improving modestly to 2.89% from 2.92%. Management said that the portfolio was repositioned to benefit from a more benign prepayment backdrop. Projected CPR fell to 8.6% from 10.3%, while actual CPR was 13.0% compared with 13.2% in the prior quarter. Federico said that AGNC sold some lower-coupon MBS and bought higher-coupon paper during the quarter. As a result, the weighted average coupon on the portfolio rose to 5.04%, and higher-coupon mortgages delivered the strongest outperformance against hedges. By quarter-end, the investment portfolio stood at $97.2 billion, with 94% in 30-year fixed-rate Agency MBS and TBA securities. Management also kept the duration gap unchanged at 0.7 years. Bell said that AGNC Investment issued $167 million of common equity through its at-the-market program during the quarter, and Federico described that activity as disciplined and opportunistic rather than automatic. On the Q&A, a BTIG analyst asked about returns on incremental investments and how valuation affects issuance. Federico said that mortgage spreads near 130 to 150 basis points can support levered returns in the 15% to 17% range, aligning with the economics of the dividend. A Piper Sandler analyst also pressed on lighter issuance. Federico said that management did not want ATM activity to interfere with trading in the stock and chose a lighter touch because market conditions and stock trading dynamics were not as well aligned as in prior periods. The Q&A showed that investors are still focused on market structure as much as on quarterly earnings. Multiple analysts asked about GSE purchase activity, leverage and pending regulatory changes. Federico said that GSE purchases were only slightly positive in the first two months of the quarter even as mortgage spreads tightened, which showed the agencies were being complementary rather than crowding out private capital. He added that the GSEs still have about $120 billion of purchase capacity. He also said that the proposed Basel capital rules should be positive for mortgages by allowing banks to hold more mortgage credit at lower capital requirements. On the Fed, Federico said that investors will be watching whether balance-sheet policy eventually preserves some mortgage holdings and supports repo market liquidity. The clearest takeaway from management was not that volatility has faded, but that AGNC believes mortgage market technicals are getting better underneath the noise. Federico repeatedly returned to lower supply, durable demand and relative value versus corporates. Bell’s update added a near-term reality check, saying tangible net book value was down about 1% as of late last week, or a little less than 2% net of July’s dividend accrual. Even so, leverage remained at 7.4x, and liquidity totaled $7.5 billion, leaving AGNC positioned to stay active. AGNC carries a Zacks Rank #3 (Hold), along with a Value Score of B, a Growth Score of C, a Momentum Score of A and a VGM Score of B. Zacks says the Rank is the first step in stock selection, while Style Scores work as a complement, with better letter grades indicating stronger expected performance over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Style Score hierarchy still matters, and stronger scores are more favorable than weaker ones. AGNC’s Momentum Score of A and VGM Score of B are constructive signals within that framework, though the Zacks Rank can change as earnings estimate revisions adjust after the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AGNC Investment (NASDAQ: AGNC) has become a remarkably consistent dividend stock. The real estate investment trust (REIT) recently hit a milestone of 75 consecutive months of paying the same dividend rate ($0.12 per share). That's impressive, considering all the volatility in the mortgage and interest rate markets over the past few years. Here's a look at the mortgage REIT's recent second-quarter financial results and what they reveal about the future of its more than 13%-yielding monthly dividend. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » AGNC Investment reported $0.52 per share of comprehensive net income during the second quarter and $0.40 per share in net spread and dollar roll income. Both metrics were above the REIT's dividend payout this quarter ($0.36 per share, or $0.12 per month). Meanwhile, its book value increased by $0.20 per share, or 2.4%, to $8.38 per share. When adding dividend income to the increase in book value, AGNC Investment generated an economic return of 6.7% during the period. That's impressive, considering the market environment. CEO Peter Federico highlighted in the earnings press release that "the investment environment in the second quarter continued to be challenging, as escalating rhetoric and hostilities between the United States and Iran largely dictated financial market performance." Elevated energy prices and supply chain constraints "caused Treasury yields to increase, the yield curve to flatten, and the market's monetary policy expectations to pivot from rate cuts to rate hikes." While that drove up mortgage rates, reducing the projected Agency MBS supply during the quarter, demand for these low-risk mortgage investments remained strong. That created "a positive technical backdrop that supported Agency MBS performance and drove spreads to benchmark rates tighter." While the second quarter was a positive environment for Agency MBS investments, market conditions can change rapidly. Mortgage spreads have already declined from their recent peaks. However, they're still at historically elevated levels. As a result, Agency MBS offer compelling value relative to other fixed-income investments, especially corporate bonds. That drives Federico's view that "favorable dynamics should be supportive of Agency MBS performance over the near to intermediate term and position AGNC to continue to deliver strong risk-adjusted returns for our stockholders." The CEO dove deeper into the current economic backdrop for MBS investments during its second-quarter conference call. He noted that, at the current spread, AGNC Investment can earn a return on equity in the 15% to 17% range by leveraging its capital at a multiple of 7.0 to 7.5. He highlighted that it "aligns really well with the economics of our dividend." The REIT can raise capital at a roughly 13% yield based on its current stock price of $11 per share, which is at a significant premium to its current book value. It can then lever that capital and earn a mid-to-high double-digit return in the current environment. That drives its continued confidence in the monthly dividend rate. AGNC Investment has now maintained its current dividend rate for 75 straight months. While the economic environment remains challenging, it's generating strong returns to sustain its dividend. While an abrupt change to the return economics poses a future risk to the dividend, it appears safe for now. Before you buy stock in AGNC Investment Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AGNC Investment Corp. wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $370,332!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,272,280!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 22, 2026. Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. AGNC Investment Just Notched Its 75th Straight Monthly Dividend and Currently Yields 13%+. Here's What Q2 Earnings Revealed. was originally published by The Motley Fool

AGNC Investment Corp. AGNC reported second-quarter 2026 net spread and dollar roll income per common share of 40 cents, topping the Zacks Consensus Estimate by 5.3%. The metric increased 5.3% from the year-ago quarter’s 38 cents. Results benefited from higher net interest income (NII), an increase in tangible net book value per share (BVPS) and growth in the investment portfolio. However, a lower net interest spread, a rise in the weighted average cost of funds and elevated prepayment rates were concerning. Given the concern, AGNC shares plunged nearly 2.7% in yesterday’s trading session. Adjusted net interest and dollar roll income available to common stockholders of $533 million rose 16.6% from the year-ago quarter. NII came in at $305 million, rising from $162 million a year earlier, but missing the consensus estimate by 16.3%. AGNC Investment's average asset yield on its portfolio was 4.89% in the second quarter of 2026, up from 4.87% in the second quarter of 2025. The combined weighted average cost of funds, inclusive of interest rate swaps, was 2.89%, up from 2.86% in the second quarter of 2025. The average net interest spread (excluding estimated “catch-up” premium amortization costs) was 2%, down from 2.01% in the year-ago quarter. As of June 30, 2026, AGNC’s average tangible net book value “at risk” leverage ratio was 7.4X compared with 7.5X in the prior-year quarter. In the second quarter, the company's investment portfolio bore an average actual constant prepayment rate of 13%, up from 8.7% in the year-ago quarter. As of June 30, 2026, tangible net BVPS was $8.58, up 9.9% on a year-over-year basis. The economic return on tangible common equity was 6.7% against the economic loss on tangible common equity of 1% in the year-ago quarter. As of June 30, 2026, the company’s investment portfolio aggregated $97.2 billion. This included $86.8 billion in Agency mortgage-backed securities, $9.7 billion in net forward purchases/(sales) of Agency MBS in the “to-be-announced” market (TBA securities) and $0.7 billion of CRT and non-Agency securities and other mortgage credit investments. As of June 30, 2026, AGNC’s cash and cash equivalents totaled $457 million, down from $493 million in the prior quarter. AGNC Investment declared dividends of 36 cents per share for the second quarter. Management declared $16.3 billion, or $50.80 per share in common stock dividends, since its initial public offering in May 2008 through the second quarter of 2026. Overall, AGNC delivered a solid second-quarter performance, with earnings surpassing expectations and net interest income increasing significantly year over year. An improvement in tangible net book value, expansion of the investment portfolio and a positive economic return were encouraging. However, the slight contraction in net interest spread, higher funding costs and elevated prepayment rates remain concerns. The company’s decent liquidity position, portfolio scale and consistent dividend payout continue to support its financial position. AGNC Investment Corp. price-consensus-eps-surprise-chart | AGNC Investment Corp. Quote 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. Ellington Financial EFC is expected to report second-quarter 2026 results on Aug. 06. Over the past week, the Zacks Consensus Estimate for ARR’s quarterly earnings has been unchanged at 46 cents per share. Starwood Property Trust, Inc. STWD is expected to post second-quarter 2026 results on Aug. 06. Over the past seven days, the Zacks Consensus Estimate for STWD’s quarterly earnings has been unchanged at 41 cents per share. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report STARWOOD PROPERTY TRUST, INC. (STWD) : Free Stock Analysis Report Ellington Financial Inc. (EFC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in AGNC Investment Corp.? Here are five stocks we like better. AGNC posted a solid second quarter, reporting a 6.7% economic return and $0.52 per share of comprehensive income, helped by a $0.20 increase in tangible book value per share and its monthly dividend. The company also marked its 75th straight monthly dividend of $0.12 per share. Agency MBS performance improved AGNC’s book value, with mortgage-backed securities outperforming Treasuries for a fifth consecutive quarter. Management said lower expected supply, slowing prepayments and strong investor demand are supporting the asset class. AGNC kept leverage steady and remained selective on capital deployment, ending the quarter with 7.4x leverage, $7.5 billion in unencumbered cash and agency MBS, and a 0.7-year duration gap. Management said returns on new investments still look attractive, but the company will stay disciplined and opportunistic with share issuance. 3 Dividend Stocks Under $50 That Pay You to Wait Out Inflation AGNC Investment (NASDAQ:AGNC) reported a positive second quarter despite what executives described as a difficult backdrop for fixed income markets, with geopolitical tensions and shifting monetary policy expectations weighing on investor sentiment. Peter Federico, AGNC’s President, Chief Executive Officer and Chief Investment Officer, said escalating rhetoric and hostilities between the United States and Iran “largely dictated financial market performance” during the quarter. He cited constrained ship traffic through the Strait of Hormuz, elevated energy prices and supply chain disruptions as key macroeconomic concerns that contributed to higher Treasury yields, a flatter yield curve and a market shift from expecting rate cuts to pricing in possible rate hikes by year-end. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks 3 Ultra-High Dividend Yield Stocks for the New Year Against that backdrop, Federico said AGNC generated a 6.7% economic return for the quarter, supported by its monthly dividend and an increase in tangible book value per common share. He also highlighted that the company’s monthly common stock dividend paid at the beginning of the month marked its 75th consecutive monthly payment of $0.12 per share. Federico said the improvement in tangible book value was driven by solid performance in agency mortgage-backed securities, which delivered a positive excess return relative to U.S. Treasuries for the fifth consecutive quarter. He called that track record “unusual and particularly noteworthy” given the similar credit quality of agency MBS and Treasuries. → Cybersecurity Stocks Are Holding Up as the AI Trade Starts to Crack 6 Mortgage REITS: How Badly Could Rising Rates Hurt Them? According to Federico, the catalyst for agency MBS performance was an improving technical backdrop. He said elevated mortgage rates have reduced expected net new supply of agency MBS to about $150 billion for the year, materially below estimates from the beginning of the year. Higher mortgage rates have also slowed prepayment speeds, which is expected to reduce runoff from the Federal Reserve’s mortgage portfolio. Demand, meanwhile, has remained strong. Federico said bond fund inflows totaled more than $400 billion through the first six months of the year and were running at about twice last year’s pace. He added that banks, foreign investors and REITs are also expected to remain net purchasers of agency MBS over the remainder of the year. → Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Federico contrasted the valuation of agency MBS with corporate bonds, noting that corporate bonds were the best-performing fixed income sector in the second quarter. He said investment-grade and high-yield corporate spreads ended the quarter near historically tight levels, even as 2026 corporate issuance is expected to exceed $1.1 trillion, which he said would make it the largest corporate debt issuance year ever. Agency MBS spreads, by comparison, “have moved little this year and continue to be wide by historical standards,” he said. Bernice Bell, AGNC’s Executive Vice President and Chief Financial Officer, said the company reported comprehensive income of $0.52 per common share for the second quarter. The 6.7% economic return on tangible common equity consisted of $0.36 of dividends declared per common share and a $0.20 increase in tangible net book value per share, which she attributed to mortgage outperformance relative to interest rate hedges. Bell said AGNC’s total stock return for the quarter was 12.3% with dividends reinvested, bringing the company’s one-year total stock return to 36.1%. As of late the prior week, tangible net book value per common share was down about 1%, or a little less than 2% net of the July monthly dividend accrual. Both ending and average leverage were unchanged at 7.4 times tangible equity, Bell said. AGNC ended the quarter with $7.5 billion of unencumbered cash and agency MBS, equal to 62% of tangible equity. Net spread and dollar roll income totaled $0.40 per common share, down $0.02 from the first quarter. Bell said the decline primarily reflected a six-basis-point reduction in the company’s net interest spread, driven by lower asset yields from portfolio repositioning and partly offset by modestly lower funding costs. AGNC also issued $167 million of common equity through its at-the-market offering program during the quarter. Bell said the issuance was completed at a significant premium to tangible net book value per share, while maintaining what she described as a disciplined and opportunistic approach to capital issuance. Federico said agency MBS outperformed both Treasury and swap-based hedges in the quarter, though performance varied meaningfully by coupon. Higher-coupon and production-coupon MBS saw the greatest outperformance as higher interest rates reduced both supply and prepayment concerns. At quarter-end, AGNC’s asset portfolio had a market value of $97 billion. The company purchased $2.2 billion of primarily intermediate-coupon specified pools during the quarter. Federico said AGNC also sold some lower-coupon MBS and bought higher-coupon MBS early in the quarter to lock in gains from the first quarter’s strong lower-coupon performance and capture the yield benefit associated with higher coupons in a more benign prepayment environment. As a result, the weighted average coupon on the portfolio increased to 5.04%, while the percentage of assets with favorable prepayment characteristics rose slightly to 79%. The notional balance of AGNC’s hedge portfolio was $66 billion at quarter-end, up slightly from the prior quarter due to the addition of intermediate- and longer-term Treasury-based hedges. The company ended the quarter with a duration gap of 0.7 years, unchanged from the prior quarter. During the question-and-answer session, Federico said marginal investments were generating return-on-equity potential in the 15% to 17% range when leveraged at AGNC’s typical levels of 7 to 7.5 times. He said those returns align well with the economics of the company’s dividend. On capital raising, Federico said AGNC took “a lighter touch” in the second quarter because management believed the stock was trading somewhat heavily and did not want at-the-market issuance to disrupt trading. He said AGNC would remain opportunistic and disciplined, using capital activity when it is beneficial to existing shareholders. Federico acknowledged that the outlook remains affected by elevated geopolitical risk and uncertainty around monetary policy, including a more hawkish message from the new Federal Reserve chairman. However, he said the underlying fundamentals for the mortgage market have continued to improve, particularly due to lower supply expectations and strong demand. Asked about housing demand, Federico said that, given mortgage rates around 6.5% or higher, AGNC does not expect an uptick in demand in the second half of the year. He said the company would instead expect demand to decline seasonally over the remainder of the year. In closing, Federico said AGNC was “really happy with the quarter” and looked forward to speaking with investors again after the third quarter. AGNC Investment Corp. is a self-managed real estate investment trust (REIT) that primarily acquires and manages a portfolio of residential mortgage-backed securities guaranteed by U.S. government-sponsored enterprises such as Ginnie Mae, Fannie Mae and Freddie Mac. The company employs a leveraged total return strategy, borrowing against its securities to enhance income potential while using interest rate hedges to manage risk. AGNC's investment objective is to generate attractive monthly dividends and long-term capital appreciation for its shareholders. Founded in 2008 and headquartered in Bethesda, Maryland, AGNC focuses exclusively on U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "AGNC Investment Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Generated a 6.7% economic return despite a challenging environment marked by escalating U.S.-Iran hostilities and constrained ship traffic in the Strait of Hormuz. Performance was driven by Agency MBS outperforming U.S. Treasuries for the fifth consecutive quarter, a trend management attributed to improving technical factors. Net new supply of Agency MBS is projected to drop to $150 billion, significantly lower than initial 2026 estimates due to primary mortgage rates remaining above 6.5%. Strong demand for high-quality fixed income persists, evidenced by bond fund inflows totaling over $400 billion in the first half of the year, double the prior year's pace. Management highlighted the compelling value of Agency MBS relative to corporate bonds, noting that corporate spreads are at historic lows despite record issuance and rising credit concerns. Portfolio repositioning involved selling lower coupon MBS to lock in gains and purchasing higher coupon MBS to capture yield benefits in a benign prepayment environment. Maintained a disciplined approach to risk management, marking the 75th consecutive monthly dividend payment of $0.12 per share. Expects favorable supply and demand dynamics to become more apparent in the second half of the year, potentially driving further mortgage spread tightening. Anticipates that the market's pivot toward rate hike expectations may be overdone, as the Fed's new task forces on inflation and the balance sheet will likely delay policy shifts until year-end. Maintains a positive duration gap of 0.7 years, reflecting a strategic preference for current interest rate levels and the expected correlation between spreads and rates. Assumes that once geopolitical and monetary policy uncertainty subsides, the underlying fundamental strength of the mortgage market will lead to improved performance. Capital allocation strategy remains opportunistic; management indicated they will only issue equity when it is complementary to stock performance and beneficial to existing shareholders. Tangible net book value per common share increased by $0.20 during the quarter due to mortgage outperformance relative to interest rate hedges. Issued $167 million of common equity through the ATM program at a significant premium to tangible net book value, though at a lighter pace than previous quarters to avoid market disruption. Geopolitical risks and energy price volatility remain primary headwinds that could sustain market volatility and impact monetary policy trajectories. The transition to a new Fed Chairman and the establishment of five task forces introduces a layer of uncertainty regarding future inflation measurement and balance sheet management. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. New investments are yielding ROEs in the 15% to 17% range when leveraged at 7x to 7.5x, aligning with the current dividend economics. Management confirmed a 'lighter touch' on capital issuance in Q2 was intentional to avoid interfering with stock trading performance while the stock felt 'heavy'. GSEs took a lighter touch in Q2 as spreads tightened, demonstrating they are acting as a stabilizing force rather than a constant buyer. The GSEs still have approximately $120 billion in purchase capacity, providing 'dry powder' to support the market if spreads widen again. Management suggests the Fed could shift from permanent liquidity injection to expanded repo facilities, which would be positive for funding market stability. There is a possibility the Fed may decide to maintain a permanent, albeit smaller, portfolio of MBS to keep operational processes functioning for future market stabilization.

AGNC Investment (AGNC) came out with quarterly earnings of $0.4 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.26%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.36 per share when it actually produced earnings of $0.42, delivering a surprise of +16.67%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. AGNC Investment, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $305 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 16.31%. This compares to year-ago revenues of $162 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. AGNC Investment shares have added about 4.7% since the beginning of the year versus the S&P 500's gain of 8.9%. While AGNC Investment has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for AGNC Investment was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $385.84 million in revenues for the coming quarter and $1.57 on $1.47 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Armour Residential REIT (ARR), has yet to report results for the quarter ended June 2026. This real estate investment trust is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of -10.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Armour Residential REIT's revenues are expected to be $59.2 million, up 78.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report ARMOUR Residential REIT, Inc. (ARR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BETHESDA, Md., July 20, 2026 /PRNewswire/ -- AGNC Investment Corp. ("AGNC" or the "Company") (Nasdaq: AGNC) today announced financial results for the quarter ended June 30, 2026. SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS $0.52 comprehensive income per common share, comprised of: $0.40 net spread and dollar roll income per common share1 $8.58 tangible net book value per common share as of June 30, 2026 $0.36 dividends declared per common share for the second quarter 6.7% economic return on tangible common equity for the quarter OTHER SECOND QUARTER HIGHLIGHTS $97.2 billion investment portfolio as of June 30, 2026, comprised of: 7.4x tangible net book value "at risk" leverage as of June 30, 2026 Unencumbered cash and Agency MBS totaled $7.5 billion as of June 30, 2026 8.6% average projected portfolio life CPR as of June 30, 2026 2.00% annualized net interest spread for the quarter2 Issued 16.2 million shares of common equity through At-the-Market ("ATM") Offerings for net proceeds of $167 million ___________ 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. 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"The investment environment in the second quarter continued to be challenging, as escalating rhetoric and hostilities between the United States and Iran largely dictated financial market performance," said Peter Federico, the Company's President, Chief Executive Officer and Chief Investment Officer. "Elevated energy prices and supply chain disruptions were the dominant macroeconomic concerns, particularly in April and May when maritime traffic through the Strait of Hormuz was severely constrained. These concerns caused Treasury yields to increase, the yield curve to flatten, and the market's monetary policy expectations to pivot from rate cuts to rate hikes. "Despite the volatile macroeconomic backdrop, AGNC delivered a strong economic return of 6.7% for the second quarter. Elevated mortgage rates caused a reduction in projected Agency MBS supply, while demand remained strong, creating a positive technical backdrop that supported Agency MBS performance and drove spreads to benchmark rates tighter. Although mortgage spreads have declined from recent peak levels, they remain elevated by historical standards. Agency MBS also offer compelling value relative to other fixed income alternatives, particularly corporate bonds, which are at or near historically tight spreads to U.S. Treasuries despite record issuance and rising credit concerns. Together, these favorable dynamics should be supportive of Agency MBS performance over the near to intermediate term and position AGNC to continue to deliver strong risk-adjusted returns for our stockholders." "AGNC's 6.7% economic return on tangible common equity in the second quarter was comprised of $0.36 of dividends per common share and a $0.20 increase in tangible net book value per common share," said Bernice Bell, the Company's Executive Vice President and Chief Financial Officer. "Additionally, AGNC generated a 12.3% unannualized total stock return in the second quarter, with dividends reinvested, despite the significant volatility experienced by financial markets. AGNC's net spread and dollar roll income per common share was $0.40 for the second quarter, a modest decrease of $0.02 per common share from the prior quarter. Finally, AGNC concluded the second quarter with tangible 'at risk' leverage of 7.4x and a substantial liquidity position of $7.5 billion of unencumbered cash and Agency MBS, representing 62% of our tangible equity at quarter end." TANGIBLE NET BOOK VALUE PER COMMON SHAREAs of June 30, 2026, the Company's tangible net book value per common share was $8.58 per share, an increase of 2.4% for the quarter compared to $8.38 per share as of March 31, 2026. The Company's tangible net book value per common share excludes $526 million, or $0.45 and $0.46 per share, of goodwill as of June 30 and March 31, 2026, respectively. INVESTMENT PORTFOLIOAs of June 30, 2026, the Company's investment portfolio totaled $97.2 billion, comprised of: $96.5 billion of Agency MBS and TBA securities, including: $0.7 billion of CRT and non-Agency securities and other mortgage credit investments. As of June 30, 2026, 30-year fixed-rate Agency MBS and TBA securities represented 94% of the Company's investment portfolio, unchanged from March 31, 2026. As of June 30, 2026, the Company's fixed-rate Agency MBS and TBA securities' weighted average coupon was 5.04%, compared to 4.95% as of March 31, 2026, comprised of the following weighted average coupons: 5.05% for 30-year fixed-rate securities; 4.82% for 15-year fixed-rate securities; and 3.74% 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 June 30, 2026, such positions had a fair value of $9.7 billion and a GAAP net carrying value of $52 million reported in derivative assets/(liabilities) on the Company's balance sheet, compared to $9.5 billion and $(194) million, respectively, as of March 31, 2026. CONSTANT PREPAYMENT RATESThe Company's weighted average projected CPR for the remaining life of its Agency securities held as of June 30, 2026 decreased to 8.6% from 10.3% as of March 31, 2026. The Company's weighted average actual CPR for the second quarter was 13.0%, compared to 13.2% for the prior quarter. The weighted average cost basis of the Company's investment portfolio was 100.7% of par value as of June 30, 2026. The Company's investment portfolio generated net premium amortization cost of $(47) million, or $(0.04) per common share, for the second quarter, which includes a "catch-up" premium amortization cost 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 second quarter. This compares to net premium amortization cost for the prior quarter of $(52) million, or $(0.05) per common share, including a "catch-up" premium amortization benefit of $5 million, or less than $0.01 per common share. ASSET YIELDS, COST OF FUNDS AND NET INTEREST RATE SPREADThe Company's average asset yield on its investment portfolio, excluding the TBA position, was 4.87% for the second quarter, compared to 4.95% for the prior quarter. Excluding "catch-up" premium amortization, the Company's average asset yield was 4.89% for the second quarter, compared to 4.93% for the prior quarter. Including the TBA position and excluding "catch-up" premium amortization, the Company's average asset yield for the second quarter was 4.89%, compared to 4.98% for the prior quarter. For the second quarter, the weighted average interest rate on the Company's repurchase agreements was 3.74%, compared to 3.79% for the prior quarter. For the second quarter, the Company's TBA position had an implied financing cost of 3.46%, compared to 3.45% for the prior quarter. Inclusive of interest rate swaps, the Company's combined weighted average cost of funds for the second quarter was 2.89%, compared to 2.92% 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 second quarter was 2.00%, compared to 2.06% for the prior quarter. NET SPREAD AND DOLLAR ROLL INCOMEThe Company recognized net spread and dollar roll income (a non-GAAP financial measure) for the second quarter of $0.40 per common share, compared to $0.42 per common share for the prior quarter. Net spread and dollar roll income excludes less than $(0.01) and less than $0.01 per common share of estimated "catch-up" premium amortization (cost) / benefit for the second 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. 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. LEVERAGEAs of June 30, 2026, $79.5 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 $10.3 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. Inclusive of its net TBA position and net payable/(receivable) for unsettled investment securities, the Company's tangible net book value "at risk" leverage ratio was 7.4x as of June 30, 2026, unchanged from the prior quarter. The Company's average "at risk" leverage ratio for the second quarter was 7.4x tangible net book value, also unchanged from the prior quarter. As of June 30, 2026, the Company's repurchase agreements used to fund its investment portfolio ("Investment Securities Repo") had a weighted average interest rate of 3.75%, compared to 3.77% as of March 31, 2026, and a weighted average remaining maturity of 13 days, compared to 20 days as of March 31, 2026. As of June 30, 2026, $42.4 billion, or 53%, of the Company's Investment Securities Repo was funded through the Company's captive broker-dealer subsidiary, Bethesda Securities, LLC. HEDGING ACTIVITIESAs of June 30, 2026, interest rate swaps, U.S. Treasury positions, option-based hedges (swaptions), and other interest rate hedges equaled 73% of the Company's outstanding balance of Investment Securities Repo, net TBA position, and other debt (collectively, "funding liabilities"), compared to 75% as of March 31, 2026. Excluding option-based hedges, the Company's hedge portfolio covered 82% of its funding liabilities as of June 30, 2026, compared to 83% as of March 31, 2026. As of June 30, 2026, the Company's pay fixed interest rate swap position totaled $73.8 billion in notional amount, with an average fixed pay rate of 2.76%, an average floating receive rate of 3.68% and an average maturity of 4.0 years, compared to $76.5 billion, 2.67%, 3.68% and 4.1 years, respectively, as of March 31, 2026. As of June 30, 2026, the Company had a net short U.S. Treasury position of $2.1 billion, receiver swaptions of $7.8 billion outstanding and a two-year swap equivalent long SOFR futures position of $2.6 billion outstanding, compared to a $5.4 billion net long U.S. Treasury position and net receiver swaptions of $7.0 billion as of March 31, 2026. OTHER GAIN (LOSS), NETFor the second quarter, the Company recorded a net gain of $379 million in other gain (loss), net, or $0.33 per common share, compared to a net loss of $(433) million, or $(0.39) per common share, for the prior quarter. Other gain (loss), net for the second quarter was comprised of: $(16) million of net realized losses on sales of investment securities; $(90) million of net unrealized losses on investment securities measured at fair value through net income; $179 million of interest rate swap periodic income; $461 million of net gains on interest rate swaps; $(15) million of net losses on interest rate swaptions; $(4) million of net losses on SOFR futures; $(102) million of net losses on U.S. Treasury positions; $44 million of TBA dollar roll income; $(80) million of net mark-to-market losses on TBA securities; and $3 million of other interest income (expense), net; and $(1) million of other miscellaneous losses. OTHER COMPREHENSIVE LOSSDuring the second quarter, the Company recorded other comprehensive income (loss) of $(7) million, or $(0.01) per common share, consisting of net unrealized losses on its Agency securities recognized through OCI, compared to $(8) million, or $(0.01) per common share, in the prior quarter. COMMON STOCK DIVIDENDSDuring the second quarter, the Company declared dividends of $0.12 per share to common stockholders of record as of April 30, May 29, and June 30, 2026, totaling $0.36 per share for the quarter. Since its May 2008 initial public offering through the second quarter of 2026, the Company has declared a total of $16.3 billion in common stock dividends, or $50.80 per common share. FINANCIAL STATEMENTS, OPERATING PERFORMANCE AND PORTFOLIO STATISTICSThe following measures of operating performance include net spread and dollar roll income; economic interest income; economic interest expense; and the related per common share measures and financial metrics derived from such information, which are non-GAAP financial measures. Please refer to "Use of Non-GAAP Financial Information" later in this release for further discussion of non-GAAP measures. *Except as noted below, average numbers for each period are weighted based on days on the Company's books and records. All percentages are annualized, unless otherwise noted.Numbers in financial tables may not total due to rounding. Tangible net book value per common share excludes preferred stock liquidation preference and goodwill. Table includes non-GAAP financial measures and/or amounts derived from non-GAAP measures. Refer to "Use of Non-GAAP Financial Information" for additional discussion of non-GAAP financial measures. "Catch-up" premium amortization cost/benefit is reported in interest income on the accompanying consolidated statements of operations. Amount reported in gain (loss) on derivatives instruments and other securities, net in the accompanying consolidated statements of operations. Dollar roll income represents the price differential, or "price drop," between the TBA price for current month settlement versus the TBA price for forward month settlement. Amount includes dollar roll income (loss) on long and short TBA securities. Amount excludes TBA mark-to-market adjustments. Represents periodic interest rate swap settlements. Amount excludes interest rate swap termination fees, mark-to-market adjustments and price alignment interest income (expense) on margin deposits. Other interest income (expense), net includes interest income on cash and cash equivalents, price alignment interest income (expense) on margin deposits, and other miscellaneous interest income (expense). Investment securities include Agency MBS, CRT and non-Agency securities. Amounts exclude TBA and forward settling securities accounted for as derivative instruments in the accompanying consolidated balance sheets and statements of operations. The average implied asset yield and associated gross income for TBA dollar roll transactions is extrapolated by adding the average TBA implied funding cost (Note 10) to the net dollar roll yield. The net dollar roll yield is calculated by dividing dollar roll income (Note 5) by the average net TBA balance (cost basis) outstanding for the period. The implied funding cost/benefit of TBA dollar roll transactions is determined using the "price drop" (Note 5) and market-based assumptions regarding the "cheapest-to-deliver" collateral that can be delivered to satisfy the TBA contract, such as the anticipated collateral's weighted average coupon, weighted average maturity and projected 1-month CPR. The average implied funding cost/benefit for TBA transactions represents the Company's long TBA position only, weighted based on the Company's daily average long TBA position outstanding for the period. Amount calculated on a weighted average basis based on average balances outstanding during the period and their respective asset yield/funding cost. Represents interest rate swap periodic cost/income measured as a percent of total mortgage funding (Investment Securities Repo, other debt and net TBA securities (at cost)). Cost of funds excludes U.S. Treasury, option-based, and other supplemental hedges used to hedge a portion of the Company's interest rate risk and U.S. Treasury Repo. Non-Agency MBS, at fair value, excludes $70 million, $69 million, $70 million, $69 million and $66 million of other mortgage credit investments held as of June 30 and March 31, 2026 and December 31, September 30 and June 30, 2025, respectively. Includes TBA dollar roll position and, if applicable, forward settling securities accounted for as derivative instruments in the accompanying consolidated balance sheets and statements of operations. Amount is net of short TBA securities. Average repurchase agreements and other debt excludes U.S. Treasury Repo. Average stockholders' equity calculated as the average month-ended stockholders' equity during the quarter. Average tangible net book value "at risk" leverage during the period was calculated by dividing the sum of the daily weighted average Investment Securities Repo, other debt, and TBA and forward settling securities (at cost) outstanding for the period by the sum of average stockholders' equity adjusted to exclude goodwill. Leverage excludes U.S. Treasury Repo. Tangible net book value "at risk" leverage as of period end was calculated by dividing the sum of the amount outstanding under Investment Securities Repo, other debt, net TBA position and forward settling securities (at cost), and net receivable / payable for unsettled investment securities outstanding by the sum of total stockholders' equity adjusted to exclude goodwill. Leverage excludes U.S. Treasury Repo. Average TBA coupon is for the long TBA position only. Includes forward starting swaps not yet in effect as of reported period-end. Economic return (loss) on tangible common equity represents the sum of the change in tangible net book value per common share and dividends declared on common stock during the period over the beginning tangible net book value per common share. The implied yields for Treasury futures are calculated based on the "cheapest-to-deliver" security that can be delivered to satisfy the futures contract identified at the time the futures contract was initiated using data sourced from a third-party model. STOCKHOLDER CALLAGNC invites stockholders, prospective stockholders and analysts to attend the AGNC stockholder call on July 21, 2026 at 8:30 am ET. Interested persons who do not plan on asking a question and have internet access are encouraged to utilize the webcast at www.AGNC.com. Those who plan on participating in the Q&A or do not have internet available may access the call by dialing (877) 300-5922 (U.S. domestic) or (412) 902-6621 (international). Please advise the operator you are dialing in for the AGNC Investment Corp. stockholder call.A slide presentation will accompany the call and will be available in the Investors section of the Company's website at www.AGNC.com. Select the Q2 2026 Stockholder Presentation link to download the presentation in advance of the stockholder call.An archived audio of the stockholder call combined with the slide presentation will be available on the AGNC website after the call on July 21, 2026. In addition, there will be a phone recording available one hour after the call on July 21, 2026 through August 4, 2026. Those who are interested in hearing the recording of the presentation, can access it by dialing (855) 669-9658 (U.S. domestic) or (412) 317-0088 (international), passcode 8844707.For further information, please contact Investor Relations at (301) 968-9300 or [email protected]. ABOUT AGNC INVESTMENT CORP.Founded in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading investor in Agency residential mortgage-backed securities (Agency MBS), which benefit from a guarantee against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae. We invest on a leveraged basis, financing our Agency MBS assets primarily through repurchase agreements, and utilize dynamic risk management strategies intended to protect the value of our portfolio from interest rate and other market risks.AGNC has a track record of providing favorable long-term returns for our stockholders through substantial monthly dividend income, with over $16 billion of common stock dividends paid since inception. Our business is a significant source of private capital for the U.S. residential housing market, and our team has extensive experience managing mortgage assets across market cycles.We use our website (www.AGNC.com) and AGNC's LinkedIn and X accounts to distribute information about the Company. Investors should monitor these channels in addition to our press releases, filings with the U.S. Securities and Exchange Commission ("SEC"), public conference calls and webcasts, as information posted through them may be deemed material. Our website, alerts and social media channels are not incorporated by reference into, and are not a part of, this document or any report filed with the SEC. To learn more about The Premier Agency Residential Mortgage REIT, please visit www.AGNC.com, follow us on LinkedIn and X, and sign up for Investor Alerts. FORWARD LOOKING STATEMENTSThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements or from our historic performance due to a variety of important factors, including, without limitation, changes in monetary policy and other factors that affect interest rates, MBS spreads to benchmark interest rates, the forward yield curve, or prepayment rates; the availability and terms of financing; changes in the market value of the Company's assets; general economic or geopolitical conditions; liquidity and other conditions in Agency MBS and other financial markets; and legislative and regulatory changes that could adversely affect the business of the Company. Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements are included in the Company's periodic reports filed with the Securities and Exchange Commission ("SEC"). Copies are available on the SEC's website, www.sec.gov. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise. USE OF NON-GAAP FINANCIAL INFORMATIONIn addition to the results presented in accordance with GAAP, the Company's results of operations discussed in this release include certain non-GAAP financial information, including "net spread and dollar roll income"; "economic interest income" and "economic interest expense"; and the related per common share measures and certain financial metrics derived from such non-GAAP information, such as "cost of funds" and "net interest spread."Net spread and dollar roll income available to common stockholders is measured as comprehensive income (loss) available (attributable) to common stockholders (GAAP measure) adjusted to: (i) exclude gains/losses on investment securities recognized through net income or other comprehensive income and gains/losses on derivative instruments and other securities (GAAP measures), (ii) exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and (iii) include interest rate swap periodic income/ cost, TBA dollar roll income and other miscellaneous interest income/expense. As defined, net spread and dollar roll income available to common stockholders represents net interest income/ expense (GAAP measure) adjusted to exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and to include TBA dollar roll income, interest rate swap periodic income/cost and other miscellaneous interest income/expense, less total operating expense (GAAP measure) and dividends on preferred stock (GAAP measure).By providing users of the Company's financial information with such measures in addition to the related GAAP measures, the Company believes users have greater transparency into the information used by the Company's management in its financial and operational decision-making. The Company also believes that it is important for users of its financial information to consider information related to the Company's current financial performance without the effects of certain transactions that are not necessarily indicative of its current investment portfolio performance and operations.Specifically, the Company believes the inclusion of TBA dollar roll income in its non-GAAP measures is meaningful as TBAs are economically equivalent to holding and financing generic Agency MBS using short-term repurchase agreements but are recognized under GAAP in gain/ loss on derivative instruments in the Company's statement of operations. Similarly, the Company believes that the inclusion of periodic interest rate swap settlements in such measures, which are recognized under GAAP in gain/loss on derivative instruments, is meaningful as interest rate swaps are the primary instrument the Company uses to economically hedge against fluctuations in the Company's borrowing costs and inclusion of periodic interest rate swap settlements is more indicative of the Company's total cost of funds than interest expense alone. Finally, the Company believes the exclusion of "catch-up" adjustments to premium amortization cost is meaningful as it excludes the cumulative effect from prior reporting periods due to current changes in future prepayment expectations and, therefore, exclusion of such "catch-up" cost or benefit is more indicative of the current earnings potential of the Company's investment portfolio.However, because such measures are incomplete measures of the Company's financial performance and involve differences from results computed in accordance with GAAP, they should be considered as supplementary to, and not as a substitute for, results computed in accordance with GAAP. In addition, because not all companies use identical calculations, the Company's presentation of such non-GAAP measures may not be comparable to other similarly-titled measures of other companies.A reconciliation of GAAP comprehensive income (loss) to non-GAAP "net spread and dollar roll income" is included in this release. CONTACT:Investors - (301) 968-9300Media - (301) 968-9303 View original content:https://www.prnewswire.com/news-releases/agnc-investment-corp-announces-second-quarter-2026-financial-results-302829928.html