BETHESDA, Md., Aug. 2, 2012 /PRNewswire/ -- American Capital
Agency Corp. ("AGNC" or the "Company") (Nasdaq: AGNC) today
reported comprehensive income and net loss for the second quarter
of 2012 of $480 million and
$(261) million, respectively, or
$1.58 and $(0.88) per common share, respectively, and net
book value of $29.41 per common
share. Economic return, defined as dividends on common
shares, plus the change in net book value per common share, for the
period was $1.60 per common share, or
22% on an annualized basis.
SECOND QUARTER 2012 FINANCIAL HIGHLIGHTS
- $1.58 comprehensive income per
common share, comprised of:
- $(0.88) net loss per common
share
- $2.46 other comprehensive income
per common share
- $0.94 net spread income per
common share
- Comprised of interest income, net of cost of funds (including
interest rate swaps) and operating expenses
- $1.05 per common share, excluding
approximately $(0.11) per common
share of "catch-up" premium amortization cost due to change in
projected constant prepayment rate ("CPR") estimates
- $1.62 estimated taxable income
per common share
- $1.25 dividend declared per
common share
- $1.61 estimated undistributed
taxable income per common share as of June 30, 2012
- Increased $0.33 per common share
from March 31, 2012
- Represents an increase of $108
million from March 31, 2012 to $492 million as of June 30, 2012
- $29.41 net book value per common
share as of June 30, 2012
- Increased $0.35 per common share
from $29.06 per common share as of
March 31, 2012
- 22% annualized economic return on common equity
- Comprised of $1.25 dividend per
common share and $0.35 increase in
net book value per common share
OTHER SECOND QUARTER HIGHLIGHTS
- $78 billion investment portfolio
as of June 30, 2012
- 7.6x leverage as of June 30, 2012, including net
receivable for unsettled securities
- 7.5x average leverage for the quarter
- 10% actual portfolio CPR for the quarter
- 8% actual portfolio CPR for the month of July 2012
- 12% average projected portfolio life CPR as of June 30,
2012
- 1.65% annualized net interest rate spread for the quarter
- 1.83% annualized net interest rate spread for the quarter,
excluding "catch-up" premium amortization cost due to change in
projected CPR estimates
- 1.62% net interest rate spread as of June 30, 2012
- $322 million of net equity
proceeds raised during the second quarter
- $155 million of net proceeds
raised from an at-the-market common stock offering
- $167 million of net proceeds
raised from a preferred stock offering
- $1.2 billion of net equity
proceeds raised from a follow-on common stock offering
during July 2012
"We are pleased with the performance of our portfolio this
quarter," commented Gary Kain,
President and Chief Investment Officer. "With the second
quarter now complete, AGNC has grown book value in 13 of the past
14 quarters, thus producing industry leading performance
while hedging a significant component of the interest rate risk
inherent in a mortgage portfolio. Looking ahead, despite
record low interest rates, we believe our portfolio is likely to
continue to exhibit relatively benign prepayments and continue to
produce attractive returns over a wide range of scenarios.
Lastly, strong book value performance and the substantial amount of
undistributed taxable income give us significant flexibility with
respect to our dividend despite a lower spread environment."
"We are very proud of the performance of our management team,"
said Malon Wilkus, Chair and Chief
Executive Officer. "Their diligent focus on asset selection
enabled AGNC to pay an attractive dividend of $1.25 per common share this quarter while growing
book value from $29.06 to $29.41,
resulting in total value creation of $1.60 per common share. Gary and his team
have consistently created shareholder value throughout a very
volatile interest rate environment."
INVESTMENT PORTFOLIO
As of June 30, 2012, the Company's investment
portfolio totaled $77.9 billion of
agency securities, at fair value, comprised of $75.7 billion of fixed-rate securities,
$1.1 billion of adjustable-rate
securities and $1.1 billion of
collateralized mortgage obligations ("CMOs") backed by fixed and
adjustable-rate securities, including principal and interest-only
strips. As of June 30, 2012, the Company's fixed-rate
investment portfolio was comprised of $26.9
billion