AGNC Q3 2020 Earnings Report
Key Takeaways
AGNC Investment Corp. announced financial results for the quarter ended September 30, 2020, with a comprehensive income of $1.28 per common share and a tangible net book value of $15.88 per common share, representing an increase of 6.4% for the quarter.
Comprehensive income per common share was $1.28, including $1.15 net income and $0.13 other comprehensive income.
Net spread and dollar roll income per common share was $0.81, excluding estimated 'catch-up' premium amortization cost.
Tangible net book value per common share increased to $15.88, a 6.4% increase from the previous quarter.
The company repurchased 11.0 million shares of common stock for $154 million during the quarter.
AGNC
AGNC
Forward Guidance
The Fed's announced policy shift to average inflation targeting will likely cause the current low rate environment to persist for a prolonged period, which should be beneficial to the investment environment.
Positive Outlook
- Stable interest rates
- Federal Reserve's ongoing purchases
- Fed's announced policy shift to average inflation targeting
- Strong earnings environment
- Attractive hedging and funding opportunities
Challenges Ahead
- Changes in interest rates
- Changes in the yield curve
- Changes in prepayment rates
- Availability and terms of financing
- Changes in the market value of the Company's assets