AGNC Investment Corp. Reports Strong Q3 2024 Financials, Net Income Turnaround

AGNC Investment Corp. reported significant financial improvements in its third quarter of 2024, reflecting a favorable market environment and strategic adjustments. As of September 30, 2024, total assets surged to $89.590 billion, up from $71.596 billion at the end of 2023. This increase was driven by a rise in agency securities, which reached $67.938 billion, compared to $53.673 billion previously. U.S. Treasury securities also saw growth, climbing to $2.570 billion from $1.540 billion.

Total liabilities increased to $79.934 billion from $63.339 billion, primarily due to a rise in repurchase agreements, which totaled $65.979 billion, up from $50.426 billion. Despite the increase in liabilities, total stockholders' equity improved to $9.656 billion, up from $8.257 billion, indicating a strengthening balance sheet.

The company reported interest income of $756 million for the three months ended September 30, 2024, a notable increase from $593 million in the same period of 2023. For the nine months, interest income reached $2.093 billion, compared to $1.401 billion in the prior year. AGNC also experienced a turnaround in its investment performance, with a gain on the sale of investment securities of $106 million, contrasting sharply with a loss of $534 million in the same quarter of 2023. Unrealized gains on investment securities amounted to $1.742 billion, compared to a loss of $1.356 billion in the prior year.

Net income for the third quarter was $346 million, a significant recovery from a loss of $392 million in the same quarter of 2023. Net income available to common stockholders was $313 million, compared to a loss of $423 million in the prior year. The comprehensive income for the quarter was $546 million, up from a loss of $605 million.

AGNC's economic return on tangible common equity per share was reported at 9.3% for Q3 2024, with dividends per common share at $0.36. The company also noted an increase in tangible net book value per common share by 5% during the quarter.

Strategically, AGNC amended its At-the-Market Offering Program in October 2024, allowing for a maximum aggregate offering price of $1.5 billion through December 31, 2025. The company also terminated its existing stock repurchase program, replacing it with a new plan allowing for the repurchase of up to $1 billion of common stock through December 31, 2026.

Overall, AGNC's performance in Q3 2024 reflects a robust recovery and strategic positioning in a favorable investment environment, marked by wider Agency mortgage spreads and declining interest rate volatility.