AGNC Investment Reports Profit In Q3 - Quick Facts

(RTTNews) - AGNC Investment Corp. (AGNC) reported third-quarter net income to common stockholders of $504 million or $1.52 per share compared to a loss of $640 million or $1.84 per share, prior year. Comprehensive income per common share was $1.25, for the quarter. Excluding estimated "catch-up" premium amortization cost, net spread and dollar roll income per common share was $0.64, for the quarter.

Third-quarter net interest income was $219 million compared to $218 million, a year ago. Total other gain, net, was $307 million compared to a loss of $817 million, previous year.

"AGNC generated an outstanding 22.4% annualized economic return on common equity in the third quarter, marking the fourth quarter in a row of positive economic returns for our stockholders. Importantly, our financial performance in the third quarter reflects, for the first time, the recent internalization of our management, which significantly reduced our ongoing operating expenses. The reduction in our cost structure is a material and durable benefit for our stockholders and was the main driver of the improvement in our net spread and dollar roll income during the quarter," said Gary Kain, CEO.

As of September 30, 2016, the company's net book value per common share was $22.91, an increase of 3.1%, from its June 30, 2016 net book value per common share of $22.22. The company said the increase in its net book value per common share was primarily due to interest rate hedges outperforming agency MBS during the quarter. As of September 30, 2016, the company's tangible net book value per common share was $21.23.

The company also announced that its Board has terminated the existing stock repurchase plan that was due to expire December 31, 2016, and replaced it with a new stock repurchase plan. Under the new stock repurchase plan, the company is authorized to repurchase up to $1 billion of its outstanding shares of common stock through December 31, 2017.