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AGNC Investment sees book value edge down in Q4'16

AGNC Investment Corp. reported fourth-quarter 2016 net income available to common stockholders of $1.01 billion, or $3.06 per share, compared with $581 million, or $1.70 per share, in the year-ago period.

The company logged a comprehensive loss available to common stockholders of $395 million, or $1.19 per share, versus comprehensive income available to common stockholders of $20 million, or 6 cents per share, in the prior-year period.

Net spread and dollar roll income, excluding catch-up premium amortization, was 64 cents per share, compared with 54 cents per share in the same quarter of the previous year.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was 59 cents.

President, CEO and Chief Investment Officer Gary Kain said in a statement that the U.S. election led to a "major repricing in every financial market," and the rapid jump in interest rates and wider MBS spreads resulted in the company's economic return of negative 5.2% in the quarter.

Net interest income was $295 million for the most recently completed quarter, versus $288 million in the year-ago period. Net book value per common share was $21.17 as of Dec. 31, 2016, down from $22.91 as of Sept. 30, 2016, and $22.59 as of Dec. 31, 2015.

AGNC Investment's agency securities had a fair value of $45.39 billion as of year-end 2016, compared with $51.33 billion at the end of 2015.

Total assets were $56.88 billion as of Dec. 31, 2016, versus $57.02 billion a year ago. Average net interest rate spread, including to-be-announced dollar roll income or loss, was 2.02% for the fourth quarter of 2016, compared with 1.47% in the same quarter of the previous year.

For full year 2016, net income available to common stockholders was $595 million, or $1.79 per share, versus $187 million, or 54 cents per share, in 2015. Comprehensive income available to common stockholders was $264 million, or 80 cents per share, compared with a comprehensive loss attributable to common stockholders of $309 million, or 89 cents per share, a year ago.

The S&P Capital IQ consensus normalized EPS estimate for full year 2016 was $2.27.