BETHESDA, Md., April 25, 2011 /PRNewswire/ -- American Capital
Agency Corp. (“AGNC” or the “Company”) (Nasdaq: AGNC) today
reported net income for the first quarter of 2011 of $133.5 million, or $1.48 per share, and book value of $25.96 per share.
FIRST QUARTER 2011 FINANCIAL HIGHLIGHTS
- $1.48 per share of net income
- $1.30 per share, excluding
$0.18 per share of other investment
related income
- $1.68 per share of taxable
income(1)
- $1.40 per share first quarter
dividend
- $0.42 per share of undistributed
taxable income as of March 31, 2011
- Undistributed taxable income increased $16 million to $55 million
- $25.96 book value per share as of
March 31, 2011
- Increased $1.72, or 7%, from
$24.24 per share as of December 31, 2010
- 22% annualized return on average stockholders’ equity (“ROE”)
for the quarter(2)
OTHER FIRST QUARTER HIGHLIGHTS
- $28 billion investment portfolio
value as of March 31, 2011
- 13% constant prepayment rate (“CPR”) for the first quarter of
2011(3)
- 11% CPR for the month of April
2011(4)
- 7.6x leverage as of March 31,
2011(5)
- 7.4x average leverage for the quarter
- 2.58% annualized net interest rate spread for the quarter
- 2.42% net interest spread as of March
31, 2011
- $1.75 billion of net proceeds
raised from equity offered during quarter
- $1.61 billion raised in two
follow-on offerings
- $141 million raised pursuant to a
Controlled Equity Offering(SM) Sales Agreement and via direct share
purchase plan share issuances
- All equity raised was accretive to book value
“Our American Capital Agency team delivered another strong
quarter with our strategy of actively managing the portfolio,” said
John Erickson, AGNC Executive Vice
President and Chief Financial Officer. “This strong performance
occurred in a quarter marked by significant global economic and
political events, which required the periodic reconsideration of
investment strategies. Even in this challenging environment, we
grew our book value by 7% to $25.96
per share and earned $1.48 per share
of net income while taking steps to reduce risk. In addition, we
have added to our AGNC investment staff to broaden our expertise,
improve our depth and address the Company’s significant
growth.”
“We continue to believe the combination of strong asset quality
and diversification, coupled with a thoughtful hedging strategy,
which includes some optional protection, remains critical to our
ability to achieve our dual mandates of generating attractive
returns for our shareholders and protecting book value within
reasonable bands,” said Gary Kain,
President and Chief Investment Officer of AGNC. “During the first
quarter of 2011, the Company raised over $1.7 billion in new equity and continued to
produce solid returns across a wide range of different measures.
Book value, undistributed taxable earnings and what many
analysts call ‘core earnings’ were all higher during the quarter,
despite lower leverage resulting from the typical time lags
associated with deploying new capital.”
INVESTMENT PORTFOLIO
As of March 31, 2011, the
Company’s investment portfolio totaled $28.2
billion of agency securities, at fair value, comprised of
$22.9 billion of fixed-rate agency
securities, $4.9 billion of
adjustable-rate agency securities (“ARMs”) and $0.4 billion of collateralized mortgage
obligations (“CMOs”) backed by fixed and adjustable-rate agency
securities(6). As of March 31,
2011, AGNC’s investment portfolio was comprised of 44%