AGNC Investment Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>AGNC Investment Corp. filed its 2023 10-K, reporting $49.6 billion in assets and $1.53 billion in net income.</b>

AI Summary

AGNC Investment Corp. (AGNCZ) filed a Annual Report (10-K) with the SEC on February 22, 2024. AGNC Investment Corp. reported total assets of $49,575 million as of December 31, 2023. The company's net income for the fiscal year ending December 31, 2023, was $1,530 million. Total debt for AGNC Investment Corp. was $35,800 million at the end of fiscal year 2023. AGNC Investment Corp. had $678 million in cash and cash equivalents as of December 31, 2023. The company's earnings per share (EPS) for the fiscal year 2023 was $5.111.

Why It Matters

For investors and stakeholders tracking AGNC Investment Corp., this filing contains several important signals. This filing provides a comprehensive overview of AGNC's financial performance and position for the fiscal year 2023, including detailed asset and liability breakdowns. Investors can analyze AGNC's debt levels, cash reserves, and profitability to assess its financial health and investment potential.

Risk Assessment

Risk Level: medium — AGNC Investment Corp. shows moderate risk based on this filing. The company holds significant debt ($35.8 billion) relative to its equity, which can increase financial risk, especially in a rising interest rate environment.

Analyst Insight

Review the company's interest rate sensitivity and hedging strategies to understand its exposure to market fluctuations.

Key Numbers

• 49,575 — Total Assets (As of December 31, 2023)
• 35,800 — Total Debt (As of December 31, 2023)
• 678 — Cash and Cash Equivalents (As of December 31, 2023)
• 1,530 — Net Income (For the fiscal year ended December 31, 2023)
• 5.111 — Earnings Per Share (EPS) (For the fiscal year ended December 31, 2023)
• 7.000 — Series C Preferred Stock Rate (Fixed to Floating Rate Cumulative Redeemable Preferred Stock)
• 6.875 — Series D Preferred Stock Rate (Fixed to Floating Rate Cumulative Redeemable Preferred Stock)
• 6.500 — Series E Preferred Stock Rate (Fixed to Floating Rate Cumulative Redeemable Preferred Stock)

Key Players & Entities

• AGNC Investment Corp. (company) — Filer
• 7373 WISCONSIN AVENUE, 22ND FLOOR (location) — Business Address
• BETHESDA (location) — City
• MD (location) — State
• 20814 (location) — ZIP
• American Capital Agency Corp (company) — Former Company Name
• 20080111 (date) — Date of Name Change
• 20231231 (date) — Fiscal Year End

FAQ

Risk Factors

• Interest Rate Risk [high — financial]: The company's business is highly sensitive to changes in interest rates, which can affect the value of its investment portfolio and net interest income.
• Credit Risk [medium — financial]: The company is exposed to credit risk on its investments, particularly mortgage-backed securities, which could lead to losses if borrowers default.
• Market Volatility [medium — market]: Adverse changes in the overall financial markets could negatively impact the company's ability to execute its business strategy and generate returns.
• Operational Risks [low — operational]: The company relies on third-party servicers and counterparties, and any failure on their part could disrupt operations and lead to financial losses.
• Regulatory Changes [low — regulatory]: Changes in government regulations or policies affecting the real estate or financial markets could adversely affect the company's business.

Key Financial Figures

• $0.01 — ich Registered Common Stock, par value $0.01 per share AGNC The Nasdaq Global Select
• $10.13 — ice of the Registrant's common stock of $10.13 per share as reported on The Nasdaq Glo
• $9 — stone of the U.S. financial system. The $9 trillion Agency market plays a vital ro

Filing Documents

• agnc-20231231.htm (10-K) — 3317KB
• agncexhibit41912312310-k.htm (EX-4.19) — 91KB
• agncexhibit102012312310-k.htm (EX-10.20) — 66KB
• agncexhibit102112312310-k.htm (EX-10.21) — 66KB
• agncexhibit2312312310-k.htm (EX-23) — 3KB
• agncexhibit2412312310-k.htm (EX-24) — 18KB
• agncexhibit31112312310-k.htm (EX-31.1) — 12KB
• agncexhibit31212312310-k.htm (EX-31.2) — 12KB
• agncexhibit3212312310-k.htm (EX-32) — 9KB
• agncexhibit97112312310-k.htm (EX-97.1) — 26KB
• agnc-20231231_g1.jpg (GRAPHIC) — 644KB
• agnc-20231231_g2.jpg (GRAPHIC) — 133KB
• 0001423689-24-000005.txt (&nbsp;) — 18413KB
• agnc-20231231.xsd (EX-101.SCH) — 111KB
• agnc-20231231_cal.xml (EX-101.CAL) — 49KB
• agnc-20231231_def.xml (EX-101.DEF) — 798KB
• agnc-20231231_lab.xml (EX-101.LAB) — 1124KB
• agnc-20231231_pre.xml (EX-101.PRE) — 960KB
• agnc-20231231_htm.xml (XML) — 3171KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 21 Item 1C. C ybersecurity 21 Item 2.

Properties

Properties 22 Item 3.

Legal Proceedings

Legal Proceedings 22 Item 4. Mine Safety Disclosures 22 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 23 Item 6.

Selected Financial Data

Selected Financial Data 24 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 8.

Financial Statements

Financial Statements 47 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 78 Item 9A.

Controls and Procedures

Controls and Procedures 78 Item 9B. Other Information 79 PART III. Item 10. Directors, Executive Officers and Corporate Governance 79 Item 11.

Executive Compensation

Executive Compensation 79 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 79 Item 13. Certain Relationships and Related Transactions, and Director Independence 79 Item 14. Principal Accounting Fees and Services 79 PART IV. Item 15. Exhibits 80

Signatures

Signatures 84 1 PART I.

Business

Item 1. Business AGNC Investment Corp. ("AGNC," the "Company," "we," "us" and "our") was organized on January 7, 2008 and commenced operations on May 20, 2008 following the completion of our initial public offering. Our common stock is traded on The Nasdaq Global Select Market under the symbol "AGNC." We are a leading provider of private capital to the U.S. housing market, enhancing liquidity in the residential real estate mortgage markets and, in turn, facilitating home ownership in the U.S. We invest primarily in Agency residential mortgage-backed securities ("Agency RMBS") on a leveraged basis. These investments consist of residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a U.S. Government-sponsored enterprise, such as the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac," and together with Fannie Mae, the "GSEs"), or by a U.S. Government agency, such as the Government National Mortgage Association ("Ginnie Mae"). We may also invest in other assets related to the housing, mortgage or real estate markets that are not guaranteed by a GSE or U.S. Government agency. We operate to qualify to be taxed as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"). As a REIT, we are required to distribute annually 90% of our taxable income, and we will generally not be subject to U.S. federal or state corporate income tax to the extent that we distribute all our annual taxable income to our stockholders on a timely basis. It is our intention to distribute 100% of our taxable income within the time limits prescribed by the Internal Revenue Code, which may extend into the subsequent taxable year. We are internally managed with the principal objective of generating favorable long-term stockholder returns with a substantial yield component. We gene

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