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.
Inside AGNC’s Headlines
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.
AGNC Investment’s Balance Sheet Position
As of June 30, 2026, AGNC’s cash and cash equivalents totaled $457 million, down from $493 million in the prior quarter.
AGNC’s Dividend Update
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.
