In the news release "American Capital Agency Corp. Reports
$0.06 Comprehensive Income Per Common
Share And $22.59 Net Book Value Per
Common Share," issued Feb. 1, 2016 by
American Capital Agency Corp. over PR Newswire, we are advised by
the Company that the final table in the release titled "Key
Statistics" inadvertently contained misaligned text and incorrect
data labels as originally issued. The complete, corrected release
follows:
American Capital Agency Corp. Reports $0.06 Comprehensive Income
Per Common Share And $22.59 Net Book Value Per Common Share
BETHESDA, Md., Feb. 1, 2016 /PRNewswire/ -- American Capital
Agency Corp. ("AGNC" or the "Company") (Nasdaq: AGNC) today
reported comprehensive income for the fourth quarter of 2015 of
$0.06 per common share and net book
value of $22.59 per common
share. Economic return for the period, defined as dividends
per common share and the change in net book value ("NAV") per
common share, was 0.8% for the quarter. For the full year
2015, AGNC reported an economic loss of -2.6%.
FOURTH QUARTER 2015 FINANCIAL HIGHLIGHTS
- $0.06 comprehensive income per
common share, comprised of:
- $1.70 net income per common
share
- $(1.64) other comprehensive loss
("OCI") per common share
- Includes net unrealized losses on investments recognized
through OCI
- $0.54 net spread and dollar roll
income per common share, excluding estimated "catch-up" premium
amortization benefit
- Versus $0.51 per common share in
the third quarter
- Includes $0.16 per common share
of dollar roll income associated with the Company's $7.8 billion average net long position in forward
purchases and sales of agency mortgage-backed securities ("MBS") in
the "to-be-announced" ("TBA") market
- Excludes $0.04 per common share
of estimated "catch-up" premium amortization benefit due to change
in projected constant prepayment rate ("CPR") estimates
- $22.59 net book value per common
share as of December 31, 2015
- Decreased $(0.41) per common
share, or -1.8%, from $23.00 per
common share as of September 30, 2015
- $0.60 dividend declared per
common share during the quarter
- 13.8% annualized dividend yield based on December 31, 2015
closing stock price of $17.34 per
common share
- 0.8% economic return on common equity for the quarter, or 3.3%
annualized
- Comprised of $0.60 dividend per
common share and $(0.41) decrease in
net book value per common share
- 9.0 million shares, or $161
million, of common stock repurchased during the quarter
- Represents 2.6% of common stock outstanding as of
September 30, 2015
- $17.88 per share average
repurchase price, inclusive of transaction costs
OTHER FOURTH QUARTER HIGHLIGHTS
- $59.9 billion investment
portfolio as of December 31, 2015, comprised of:
- $52.4 billion agency MBS
- $7.4 billion TBA mortgage
position
- $0.1 billion AAA non-agency
MBS
- 6.8x "at risk" leverage as of December 31, 2015
- Unchanged from September 31,
2015
- 5.8x leverage excluding TBA mortgage position
- 9.5% portfolio CPR for the quarter
- 8.4% average projected portfolio life CPR as of
December 31, 2015
- 1.47% annualized net interest rate spread for the quarter,
including TBA dollar roll income
- Includes 9 bps of "catch up" premium amortization benefit due
to change in projected CPR estimates
2015 FULL YEAR HIGHLIGHTS
- $(0.89) comprehensive loss per
common share, comprised of:
- $0.54 net income per common
share
- $(1.43) OCI per common share
- $2.35 net spread and dollar roll
income per common share
- Versus $3.35 per common share in
2014, excluding $(0.15) per common
share of "catch-up" premium amortization cost
- Nominal "catch-up" premium amortization recognized in
2015
- 6.4x average "at risk" leverage during the year
- $2.48 dividends declared per
common share during the year
- -2.6% economic loss on common equity, comprised of:
- $2.48 dividends per common
share
- $(3.15) decrease in net book
value per common share
- $15.3 million shares, or
$285 million, of common stock
repurchased during the year
- Represents 4.3% of common stock outstanding as of December 31, 2014
- $18.58 per share average
repurchase price, inclusive of transaction costs
MANAGEMENT REMARKS
"In December, the Federal Reserve
raised short term interest rates for the first time in almost 10
years," commented Gary Kain,
President and Chief Investment Officer. "In anticipation of
the Fed move, the yield curve flattened during the quarter, with an
increase in shorter term U.S. Treasury rates of approximately 40
basis points, coupled with an increase in longer term U.S. Treasury
rates of approximately 20 basis points. Agency MBS spreads
continued to widen during the quarter, but the move in spreads was
more subdued than what we experienced earlier in the year.
Despite the dual headwinds of higher interest rates and wider
agency MBS spreads, AGNC's total economic return was a positive
0.8%, as improved carry on our investments and accretion from share
repurchases more than offset the modest decline in our net book
value per common share."
"Importantly, as we look ahead into 2016, it is becoming
increasingly likely that the combination of slower global economic
growth, persistently low commodity prices, adverse currency moves
and the reversal of the flow of funds from sovereign wealth funds
and some central banks will negatively impact the U.S. economic
growth and inflation outlook. Against this backdrop, we
believe the Federal Reserve's ability to continue to raise short
term interest rates has been materially reduced. This
more favorable interest rate outlook, when combined with the
enhanced earnings power of our portfolio stemming from wider MBS
spreads, gives us reason to be optimistic about 2016. If
market conditions evolve along these lines, portfolio returns could
be further supported by either higher leverage or a reduction in
aggregate hedge cost."
"The current price-to-book discounts across the mortgage REIT
space are not consistent with the improving fundamental landscape
for investors in agency MBS," commented Malon Wilkus, Chairman and Chief Executive
Officer. "Consequently, AGNC repurchased $161 million, or 2.6%, of its outstanding common
stock in the fourth quarter. This volume is indicative of the
improved outlook for our business and the very significant discount
to NAV at which we can purchase our shares. If current
business and economic fundamentals persist and the market continues
to trade our shares at such a significant discount to NAV, we would
expect to continue to be very active buying back
shares."
NET BOOK VALUE
As of December 31, 2015, the
Company's net book value per common share was $22.59, or $(0.41)
lower than its September 30, 2015 net book value per common
share of $23.00, largely due to
further spread widening between agency MBS and benchmark interest
rates, such as interest rate swap rates.
INVESTMENT PORTFOLIO
As of December 31, 2015, the
Company's investment portfolio totaled $59.9
billion, comprised of:
- $58.0 billion of fixed-rate
securities, including:
- $16.9 billion ≤ 15-year
securities,
- $0.3 billion 15-year net long TBA
securities,
- $1.1 billion 20-year fixed-rate
securities,
- $32.6 billion 30-year fixed-rate
securities and
- $7.1 billion 30-year net long TBA
securities;
- $0.5 billion of adjustable-rate
securities;
- $1.3 billion of collateralized
mortgage obligations ("CMOs"), including principal and
interest-only strips; and
- $0.1 billion of AAA non-agency
securities.
As of December 31, 2015, inclusive of TBA securities, ≤
15-year and 30 year fixed rate securities represented 29% and 66%
of the Company's investment portfolio, respectively, unchanged from
September 30, 2015.
As of December 31, 2015, the Company's fixed-rate
securities, inclusive of TBA securities, had a weighted average
coupon of 3.52%, unchanged from September 30, 2015, comprised
of the following weighted average coupons:
- 3.25% for ≤ 15-year fixed rate securities;
- 3.48% for 20-year fixed-rate securities; and
- 3.63% for 30-year fixed-rate securities.
The Company accounts for its TBA mortgage portfolio (also
referred to as "dollar roll funded assets") as derivative
instruments and recognizes dollar roll income in other gain (loss),
net on the Company's financial statements. As of
December 31, 2015, the Company's net TBA position had a total
fair value and a total cost basis of $7.4
billion and a net carrying value of $14 million reported in derivative
assets/(liabilities) on the Company's balance sheet, compared to a
total fair value of $7.4 billion, a
total cost basis of $7.3 billion and
a net carrying value of $120 million
as of September 30, 2015.
CONSTANT PREPAYMENT RATES
The Company's investment
portfolio had a weighted average CPR of 9.5% for the fourth
quarter, compared to 12.4% for the prior quarter. The
weighted average projected CPR for the remaining life of the
Company's agency securities held as of December 31, 2015
decreased to 8.4% from 9.0% as of September 30, 2015 due to
higher interest rates.
The weighted average cost basis of the Company's investment
portfolio was 104.6% of par value as of December 31,
2015. Net premium amortization cost on the Company's
investment portfolio for the fourth quarter was $(78) million, or $(0.23) per common share, including a "catch-up"
premium amortization benefit of $14
million, or $0.04 per common
share, due to changes in the Company's projected CPR
estimates. This compares to net premium amortization cost for
the prior quarter of $(128) million,
or $(0.37) per common share,
including a "catch-up" premium amortization cost of $(33) million, or $(0.10) per common share. The net
unamortized premium balance as of December 31, 2015 was
$2.3 billion.
The Company amortizes or accretes premiums and discounts
associated with purchases of agency securities into interest income
using the effective yield method over the estimated life of such
securities, incorporating both actual repayments to date and
projected repayments over the remaining life of the security.
Faster actual or projected repayments can have a meaningful
negative impact on the Company's asset yields, while slower actual
or projected repayments can have a meaningful positive impact.
ASSET YIELDS, COST OF FUNDS AND NET INTEREST RATE
SPREAD
The Company's average asset yield on its "balance
sheet funded assets" (i.e., the Company's investment portfolio
excluding the net TBA position) was 2.87% for the fourth quarter,
an increase from 2.42% for the prior quarter. Excluding
"catch-up" premium amortization benefit or (cost), the
Company's average asset yield was 2.76% for the fourth quarter, an
increase from 2.69% the prior quarter.
For the fourth quarter, the Company's average cost of funds was
1.60%, a decrease from 1.70% for the prior quarter. The
Company's average cost of funds includes the cost of agency
repurchase agreements ("agency repo"), Federal Home Loan Bank
("FHLB") advances, debt of consolidated variable interest entities
("other debt") and interest rate swaps (including interest rate
swaps used to hedge the Company's dollar roll funded assets)
measured against the Company's daily weighted average agency
repurchase agreements, FHLB advances and other debt balance
outstanding.
Excluding swap costs related to the Company's TBA dollar roll
funded assets, the Company's cost of funds for its balance sheet
funded assets was 1.45% for the fourth quarter, a decrease from
1.49% for the prior quarter, largely due to a decline in swap
costs, partially offset by higher repo funding costs.
The Company's combined annualized net interest rate spread on
its balance sheet and dollar roll funded assets for the quarter was
1.47%, compared to 1.14% for the prior quarter. Excluding
"catch-up" premium amortization benefit or (cost), the Company's
combined annualized net interest rate spread on its balance sheet
and dollar roll funded assets for the quarter was 1.38%, compared
to 1.37% for the prior quarter.
On a per share basis, the Company recognized $0.58 per common share of net spread and dollar
roll income (a non-GAAP financial measure) for the fourth quarter,
compared to $0.41 for the prior
quarter. Excluding "catch-up" premium amortization benefit or
(cost), the Company's net spread and dollar roll income was
$0.54 per common share for the fourth
quarter, an increase from $0.51 per
common share for the prior quarter. Net spread and dollar
roll income for the fourth quarter included $0.16 per common share of dollar roll income, a
decrease from $0.21 per common share
for the prior quarter due to a smaller average TBA dollar roll
position and moderately weaker dollar roll funding levels. A
reconciliation of the Company's net interest income to net spread
and dollar roll income and additional information regarding the
Company's use of non-GAAP measures are included later in this
release.
LEVERAGE
As of December 31, 2015, $41.7 billion of agency repo, $3.8 billion of FHLB advances and $0.6 billion of other debt were used to fund
acquisitions of agency and AAA non-agency securities. The
remainder, or approximately $25
million, of the Company's repurchase agreements, was used to
fund purchases of U.S. Treasury securities ("U.S. Treasury repo")
and is not included in the Company's leverage measurements.
Inclusive of its net TBA position, the Company's "at risk" leverage
ratio was 6.8x as of December 31, 2015, unchanged from
September 30, 2015. The Company's average "at risk"
leverage ratio for the quarter was 6.8x, compared to 6.2x for the
prior quarter.
As of December 31, 2015, the Company's agency repurchase
agreements had a weighted average interest rate of 0.61%, an
increase from 0.52% as of September 30, 2015, and a weighted
average remaining days to maturity of 173 days, a decrease from 201
days as of September 30, 2015.
As of December 31, 2015, the Company's agency repurchase
agreements had remaining maturities of:
- $31.9 billion of three months or
less;
- $3.2 billion from three to six
months;
- $0.6 billion from six to nine
months;
- $1.2 billion from nine to twelve
months;
- $2.1 billion from one to three
years; and
- $2.8 billion from three to five
years.
As of December 31, 2015, the Company's FHLB advances had a
weighted average interest rate of 0.53% and a weighted average
remaining maturity of 141 days. On January 12, 2016, the Federal Housing Finance
Agency ("FHFA") released its final rule on FHLB membership, which
requires the termination of the Company's captive insurance
subsidiary's FHLB membership after a one year period ending in
February 2017. The Company's weighted average remaining days
to maturity as of December 31, 2015
has been adjusted to reflect the final ruling.
The Company also announced that it has formed a wholly-owned
broker-dealer subsidiary. The broker-dealer is fully staffed
and is currently in the regulatory application process and expects
to be operational in mid-2016. The new entity intends to
become a member of the Fixed Income Clearing Corporation ("FICC")
and to provide the Company with additional repo funding and TBA
trade clearing capabilities.
HEDGING ACTIVITIES
As of December 31, 2015, 87%
of the Company's outstanding balance of repurchase agreements, FHLB
advances, other debt and net TBA position was hedged through
interest rate swaps, swaptions and net U.S. Treasury positions, a
decrease from 96% as of September 30, 2015.
The Company's interest rate swap position as of
December 31, 2015 totaled $40.5
billion in notional amount, compared to $45.2 billion as of September 30, 2015.
As of December 31, 2015, the Company's interest rate swap
position included $4.5 billion
of forward starting swaps, with an average forward start date of
0.7 years and an average remaining maturity of 5.5 years, compared
to $7.8 billion as of
September 30, 2015, with an average forward start date of 0.6
years and an average remaining maturity of 6.3 years.
Excluding forward starting swaps, the Company's interest rate
swap portfolio had an average fixed pay rate of 1.75% and an
average receive rate of 0.40% as of December 31, 2015,
compared to 1.72% and 0.30%, respectively, as of September 30,
2015. Including forward starting swaps, the Company's
interest rate swap portfolio had an average fixed pay rate of 1.89%
and an average maturity of 4.6 years as of December 31, 2015,
compared to 1.95% and 4.7 years, respectively, as of
September 30, 2015.
During the fourth quarter, $1.5
billion of payer swaptions from previous quarters
expired. As of December 31, 2015, the Company had payer
swaptions totaling $2.2 billion of
notional value outstanding with a market value of $17 million, cost basis of $74 million, an average remaining option term of
0.3 years and an average underlying interest rate swap term of 7.0
years. This compares to $3.7
billion of notional value outstanding as of
September 30, 2015 with a market value of $21 million, a cost basis of $95 million, an average remaining option term of
0.4 years and an average underlying swap term of 8.2
years.
The Company also utilizes long and short positions in U.S.
Treasury securities and U.S. Treasury futures to mitigate exposure
to changes in interest rates. As of December 31, 2015,
the Company had a net short U.S. Treasury position of $4.0 billion, compared to a $1.5 billion net short position as of
September 30, 2015.
OTHER GAIN (LOSS), NET
For the fourth quarter, the
Company recorded a net gain of $333
million in other gain (loss), net, or $0.97 per common share, compared to a net loss of
$(817) million, or $(2.35) per common share, for the prior
quarter. Other gain (loss), net, for the fourth quarter was
comprised of:
- $2 million of net realized gains
on sales of agency securities;
- $449 million of net gains on
interest rate swaps (excludes $22
million of net unrealized gains recognized in OCI);
- $(102) million of interest rate
swap periodic interest costs;
- $(8) million of net losses on
interest rate swaptions;
- $35 million of net gains on U.S.
Treasury positions;
- $53 million of TBA dollar roll
income;
- $(86) million of net
mark-to-market losses on TBA mortgage positions; and
- $(10) million of net losses on
other derivative instruments and securities.
OTHER COMPREHENSIVE LOSS
During the fourth quarter,
the Company recorded other comprehensive losses of $(561) million, or $(1.64) per common share, primarily consisting of
unrealized losses on the Company's agency securities.
FOURTH QUARTER 2015 DIVIDEND DECLARATIONS
During the
fourth quarter, the Company's Board of Directors declared monthly
dividends of $0.20 per share to
common stockholders of record as of October
30, November 30 and
December 31, 2015, which were paid on
November 9 and December 9, 2015 and January 8, 2016, respectively. This equates
to a fourth quarter annualized dividend yield of 13.8% based on the
Company's December 31, 2015 closing stock price of
$17.34 per common share.
Since its May 2008 initial public
offering through the fourth quarter of 2015, the Company has
declared a total of $6.0 billion in
common stock dividends, or $32.70 per
common share.
On December 18, 2015, the Company's Board of Directors
declared a fourth quarter dividend on its 8.000% Series A
Cumulative Redeemable Preferred Stock ("Series A Preferred Stock")
of $0.50 per share and on its 7.750%
Series B Cumulative Redeemable Preferred Stock ("Series B Preferred
Stock") underlying its outstanding depositary shares of
$0.484375 per depositary share.
Each depositary share represents a 1/1000th interest in a share of
the Series B Preferred Stock. The dividends were paid on
January 15, 2016 to preferred stockholders of record as of
January 1, 2016.
The Company also announced the tax characteristics of its 2015
common stock and Series A and B Preferred Stock dividends. The
Company's 2015 dividends of $2.48 per
common share, $2.00 per Series A
preferred share and $1.93750 per
Series B depository share consisted of ordinary dividends for
federal income tax purposes. Stockholders should receive an
IRS Form 1099-DIV containing this information from their brokers,
transfer agents or other institutions. For additional detail please
visit the Company's website at www.AGNC.com.
STOCK REPURCHASE PROGRAM
During the fourth quarter,
the Company repurchased approximately 9.0 million shares of its
common stock, or 2.6% of the Company's outstanding shares as of
September 30, 2015. The shares were repurchased at an average
price of $17.88 per share, including
expenses, totaling $161 million.
Since commencing a stock repurchase program in the fourth quarter
of 2012, the Company has repurchased 61.7 million shares, or
15.5%, of its common stock for total consideration of
approximately $1.3 billion, including
expenses. As of December 31, 2015, the Company had
$0.7 billion available under its
current Board of Directors' authorization for repurchases of its
common stock through December 31,
2016.
FINANCIAL STATEMENTS, OPERATING PERFORMANCE AND PORTFOLIO
STATISTICS
The following measures of operating performance
include net spread and dollar roll income and estimated taxable
income, which are non-GAAP financial measures. Please refer to "Use
of Non-GAAP Financial Information" later in this release for
further discussion of non-GAAP measures.
AMERICAN CAPITAL
AGENCY CORP.
|
CONSOLIDATED BALANCE
SHEETS
|
(in millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
June 30,
|
|
March 31,
|
|
December
31,
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
Agency securities, at
fair value (including pledged securities of $48,380, $47,319,
$48,128, $56,836 and $51,629, respectively)
|
$ 51,331
|
|
$ 53,729
|
|
$ 50,976
|
|
$ 60,131
|
|
$ 55,482
|
Agency securities
transferred to consolidated variable interest entities, at fair
value (pledged securities)
|
1,029
|
|
1,088
|
|
1,142
|
|
1,221
|
|
1,266
|
Non-agency
securities, at fair value
|
113
|
|
-
|
|
-
|
|
-
|
|
-
|
U.S. Treasury
securities, at fair value (including pledged securities of $25,
$767, $4,756, $4,328 and $2,375, respectively)
|
25
|
|
787
|
|
5,124
|
|
4,328
|
|
2,427
|
REIT equity
securities, at fair value
|
33
|
|
34
|
|
60
|
|
68
|
|
68
|
Cash and
cash equivalents
|
1,110
|
|
1,505
|
|
1,510
|
|
1,708
|
|
1,720
|
Restricted cash
|
1,281
|
|
1,413
|
|
778
|
|
1,108
|
|
713
|
Derivative assets, at fair value
|
81
|
|
143
|
|
164
|
|
229
|
|
408
|
Receivable for
securities sold (including pledged securities of $0, $147, $221,
$721 and $79, respectively)
|
-
|
|
147
|
|
221
|
|
908
|
|
239
|
Receivable under reverse repurchase agreements
|
1,713
|
|
1,463
|
|
2,741
|
|
3,175
|
|
5,218
|
Other
assets
|
305
|
|
300
|
|
169
|
|
229
|
|
225
|
Total
assets
|
$ 57,021
|
|
$ 60,609
|
|
$ 62,885
|
|
$ 73,105
|
|
$ 67,766
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Repurchase agreements
|
$ 41,754
|
|
$ 41,014
|
|
$ 50,158
|
|
$ 58,112
|
|
$ 50,296
|
Federal Home Loan
Bank advances
|
3,753
|
|
3,502
|
|
20
|
|
-
|
|
-
|
Debt of consolidated
variable interest entities, at fair value
|
595
|
|
626
|
|
674
|
|
725
|
|
761
|
Payable
for securities purchased
|
182
|
|
4,178
|
|
90
|
|
50
|
|
843
|
Derivative liabilities, at fair value
|
935
|
|
1,536
|
|
844
|
|
1,352
|
|
890
|
Dividends payable
|
74
|
|
76
|
|
77
|
|
85
|
|
85
|
Obligation to
return securities borrowed under reverse
|
|
|
|
|
|
|
|
|
|
repurchase
agreements, at fair value
|
1,696
|
|
1,309
|
|
2,230
|
|
3,363
|
|
5,363
|
Accounts
payable and other accrued liabilities
|
61
|
|
52
|
|
74
|
|
62
|
|
100
|
Total
liabilities
|
49,050
|
|
52,293
|
|
54,167
|
|
63,749
|
|
58,338
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
Preferred stock -
aggregate liquidation preference of $348
|
336
|
|
336
|
|
336
|
|
336
|
|
336
|
Common stock - $0.01
par value; 600.0 shares authorized;
|
|
|
|
|
|
|
|
|
|
337.5, 346.5, 348.8,
352.8 and 352.8 shares issued and outstanding
|
3
|
|
3
|
|
3
|
|
4
|
|
4
|
Additional paid-in
capital
|
10,048
|
|
10,209
|
|
10,254
|
|
10,332
|
|
10,332
|
Retained
deficit
|
(2,350)
|
|
(2,727)
|
|
(1,879)
|
|
(2,166)
|
|
(1,674)
|
Accumulated other
comprehensive income (loss)
|
(66)
|
|
495
|
|
4
|
|
850
|
|
430
|
Total stockholders'
equity
|
7,971
|
|
8,316
|
|
8,718
|
|
9,356
|
|
9,428
|
Total liabilities and
stockholders' equity
|
$ 57,021
|
|
$ 60,609
|
|
$ 62,885
|
|
$ 73,105
|
|
$ 67,766
|
|
|
|
|
|
|
|
|
|
|
Net book value per
common share
|
$ 22.59
|
|
$ 23.00
|
|
$ 24.00
|
|
$ 25.53
|
|
$ 25.74
|
|
|
|
|
|
|
|
|
|
|
AMERICAN CAPITAL
AGENCY CORP.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
September
30,
|
|
June 30,
|
|
March 31,
|
|
December
31,
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Interest
income
|
$
374
|
|
$
295
|
|
$ 414
|
|
$
383
|
|
$ 1,466
|
Interest
expense 1
|
86
|
|
77
|
|
81
|
|
86
|
|
330
|
Net interest income
|
288
|
|
218
|
|
333
|
|
297
|
|
1,136
|
|
|
|
|
|
|
|
|
|
|
Other gain (loss),
net:
|
|
|
|
|
|
|
|
|
|
Gain
(loss) on sale of agency securities, net
|
2
|
|
(39)
|
|
(22)
|
|
36
|
|
(23)
|
Gain
(loss) on derivative instruments and other securities, net
1
|
331
|
|
(778)
|
|
237
|
|
(549)
|
|
(759)
|
Total other gain (loss), net
|
333
|
|
(817)
|
|
215
|
|
(513)
|
|
(782)
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Management fee
|
28
|
|
29
|
|
29
|
|
30
|
|
116
|
General
and administrative expenses
|
5
|
|
5
|
|
7
|
|
6
|
|
23
|
Total expenses
|
33
|
|
34
|
|
36
|
|
36
|
|
139
|
Net income
(loss)
|
588
|
|
(633)
|
|
512
|
|
(252)
|
|
215
|
Dividend on preferred
stock
|
7
|
|
7
|
|
7
|
|
7
|
|
28
|
Net income (loss)
available (attributable) to common stockholders
|
$
581
|
|
$
(640)
|
|
$ 505
|
|
$ (259)
|
|
$
187
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
588
|
|
$
(633)
|
|
$ 512
|
|
$ (252)
|
|
$
215
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on available-for-sale securities,
net
|
(583)
|
|
467
|
|
(872)
|
|
391
|
|
(597)
|
Unrealized gain on derivative instruments, net
1
|
22
|
|
24
|
|
26
|
|
29
|
|
101
|
Other comprehensive
income (loss)
|
(561)
|
|
491
|
|
(846)
|
|
420
|
|
(496)
|
Comprehensive
income (loss)
|
27
|
|
(142)
|
|
(334)
|
|
168
|
|
(281)
|
Dividend on preferred
stock
|
7
|
|
7
|
|
7
|
|
7
|
|
28
|
Comprehensive
income (loss) available (attributable) income to common
stockholders
|
$
20
|
|
$
(149)
|
|
$ (341)
|
|
$
161
|
|
$
(309)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding -
|
|
|
|
|
|
|
|
|
|
basic and
diluted
|
341.6
|
|
347.8
|
|
352.1
|
|
352.8
|
|
348.6
|
Net income (loss)
per common share - basic and diluted
|
$
1.70
|
|
$
(1.84)
|
|
$ 1.43
|
|
$ (0.73)
|
|
$
0.54
|
Comprehensive
income (loss) per common share - basic and diluted
|
$
0.06
|
|
$
(0.43)
|
|
$ (0.97)
|
|
$ 0.46
|
|
$
(0.89)
|
Dividends declared
per common share
|
$
0.60
|
|
$
0.60
|
|
$ 0.62
|
|
$ 0.66
|
|
$
2.48
|
|
|
|
|
|
|
|
|
|
|
AMERICAN CAPITAL
AGENCY CORP.
|
RECONCILIATION OF
GAAP NET INTEREST INCOME TO NET SPREAD AND DOLLAR ROLL INCOME
2
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
September
30,
|
|
June 30,
|
|
March 31,
|
|
December
31,
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
Interest
income
|
$
374
|
|
$
295
|
|
$ 414
|
|
$ 383
|
|
$ 1,466
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
Repurchase agreements
and other debt
|
64
|
|
53
|
|
55
|
|
57
|
|
229
|
Interest rate swap
periodic costs 1
|
22
|
|
24
|
|
26
|
|
29
|
|
101
|
Total interest
expense
|
86
|
|
77
|
|
81
|
|
86
|
|
330
|
Net interest
income
|
288
|
|
218
|
|
333
|
|
297
|
|
1,136
|
Other interest rate
swap periodic costs 3
|
(102)
|
|
(107)
|
|
(99)
|
|
(84)
|
|
(393)
|
Dividend on REIT
equity securities
|
1
|
|
1
|
|
2
|
|
2
|
|
6
|
TBA dollar roll income
16
|
53
|
|
73
|
|
54
|
|
57
|
|
237
|
Adjusted net interest
and dollar roll income
|
240
|
|
185
|
|
290
|
|
272
|
|
986
|
Operating
expenses
|
33
|
|
34
|
|
36
|
|
36
|
|
139
|
Net spread and dollar
roll income
|
207
|
|
151
|
|
254
|
|
236
|
|
847
|
Dividend on preferred
stock
|
7
|
|
7
|
|
7
|
|
7
|
|
28
|
Net spread and dollar
roll income available to common stockholders
|
200
|
|
144
|
|
247
|
|
229
|
|
819
|
Estimated "catch-up"
premium amortization cost (benefit) due to change in CPR
forecast
|
(14)
|
|
33
|
|
(37)
|
|
19
|
|
1
|
Net spread and dollar
roll income, excluding "catch-up" premium amortization, available
to common stockholders
|
$
186
|
|
$
177
|
|
$ 210
|
|
$ 248
|
|
$
820
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding - basic and diluted
|
341.6
|
|
347.8
|
|
352.1
|
|
352.8
|
|
348.6
|
Net spread and dollar
roll income per common share - basic and diluted
|
$ 0.58
|
|
$ 0.41
|
|
$ 0.70
|
|
$ 0.65
|
|
$ 2.35
|
Net spread and dollar
roll income, excluding "catch-up" premium amortization, per
common share - basic and diluted
|
$ 0.54
|
|
$ 0.51
|
|
$ 0.60
|
|
$ 0.70
|
|
$ 2.35
|
|
|
|
|
|
|
|
|
|
|
AMERICAN CAPITAL
AGENCY CORP.
|
RECONCILIATION OF
GAAP NET INCOME TO ESTIMATED TAXABLE INCOME 2
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December
31,
|
|
September
30,
|
|
June 30,
|
|
March 31,
|
|
December
31,
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
Net income
(loss)
|
$
588
|
|
$
(633)
|
|
$
512
|
|
$ (252)
|
|
$
215
|
Book to tax
differences:
|
|
|
|
|
|
|
|
|
|
Premium amortization,
net
|
(18)
|
|
15
|
|
(55)
|
|
26
|
|
(32)
|
Realized gain/loss,
net
|
154
|
|
12
|
|
(39)
|
|
(113)
|
|
14
|
Net capital
loss/(utilization of net capital loss carryforward)
5
|
(83)
|
|
-
|
|
121
|
|
(115)
|
|
(77)
|
Unrealized gain/loss,
net
|
(543)
|
|
672
|
|
(417)
|
|
627
|
|
339
|
Total book to tax
differences
|
(490)
|
|
699
|
|
(390)
|
|
425
|
|
244
|
Estimated REIT
taxable income
|
98
|
|
66
|
|
122
|
|
173
|
|
459
|
Dividend on preferred
stock
|
7
|
|
7
|
|
7
|
|
7
|
|
28
|
Estimated REIT
taxable income, net of preferred stock dividend
|
$
91
|
|
$
59
|
|
$
115
|
|
$
166
|
|
$
431
|
Weighted average
number of common shares outstanding - basic and diluted
|
341.6
|
|
347.8
|
|
352.1
|
|
352.8
|
|
348.6
|
Estimated REIT
taxable income per common share - basic and diluted
|
$
0.27
|
|
$
0.17
|
|
$ 0.33
|
|
$ 0.47
|
|
$
1.24
|
|
|
|
|
|
|
|
|
|
|
Beginning cumulative
non-deductible capital loss
|
$
767
|
|
$
767
|
|
$
646
|
|
$
761
|
|
$
761
|
Net capital
loss/(utilization of net capital loss carryforward)
|
(83)
|
|
-
|
|
121
|
|
(115)
|
|
(77)
|
Ending cumulative
non-deductible capital loss
|
$
684
|
|
$
767
|
|
$
767
|
|
$
646
|
|
$
684
|
Ending cumulative
non-deductible capital loss per common share
|
$
2.03
|
|
$
2.21
|
|
$ 2.20
|
|
$ 1.83
|
|
$
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN CAPITAL
AGENCY CORP.
|
KEY
STATISTICS*
|
(in millions, except
per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
Key Balance Sheet
Statistics:
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
Fixed-rate agency
securities, at fair value - as of period end
19
|
$
50,522
|
|
$
52,862
|
|
$
50,070
|
|
$
59,140
|
|
$
54,473
|
Adjustable-rate
agency securities, at fair value - as of period end
|
$
495
|
|
$
551
|
|
$
599
|
|
$
642
|
|
$
678
|
AAA non-agency
securities, at fair value - as of period end
|
$
113
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
CMO agency
securities, at fair value - as of period end
|
$
990
|
|
$
1,041
|
|
$
1,078
|
|
$
1,173
|
|
$
1,195
|
Interest-only strips
agency securities, at fair value - as of period end
|
$
178
|
|
$
179
|
|
$
189
|
|
$
198
|
|
$
203
|
Principal-only strips
agency securities, at fair value - as of period end
|
$
175
|
|
$
184
|
|
$
182
|
|
$
199
|
|
$
199
|
Total securities, at
fair value - as of period end 19
|
$
52,473
|
|
$
54,817
|
|
$
52,118
|
|
$
61,352
|
|
$
56,748
|
Total securities, at
cost - as of period end 19
|
$
52,464
|
|
$
54,216
|
|
$
51,994
|
|
$
60,349
|
|
$
56,148
|
Total securities, at
par - as of period end 6, 19
|
$
50,163
|
|
$
51,902
|
|
$
49,688
|
|
$
57,710
|
|
$
53,666
|
Average securities,
at cost 19
|
$
52,131
|
|
$
48,711
|
|
$
56,106
|
|
$
59,479
|
|
$
51,592
|
Average securities,
at par 6, 19
|
$
49,890
|
|
$
46,610
|
|
$
53,660
|
|
$
56,874
|
|
$
49,347
|
Net TBA portfolio -
as of period end, at fair value
|
$
7,444
|
|
$
7,385
|
|
$
7,058
|
|
$
4,894
|
|
$
14,768
|
Net TBA portfolio -
as of period end, at cost
|
$
7,430
|
|
$
7,265
|
|
$
7,104
|
|
$
4,815
|
|
$
14,576
|
Net TBA portfolio -
as of period end, carrying value
|
$
14
|
|
$
120
|
|
$
(46)
|
|
$
79
|
|
$
192
|
Average net TBA
portfolio, at cost
|
$
7,796
|
|
$
9,434
|
|
$
5,973
|
|
$
6,957
|
|
$
18,492
|
Average repurchase
agreements and other debt 4
|
$
47,018
|
|
$
43,308
|
|
$
50,410
|
|
$
53,963
|
|
$
45,554
|
Average stockholders'
equity 7
|
$
8,143
|
|
$
8,603
|
|
$
9,108
|
|
$
9,401
|
|
$
9,408
|
Net book value per
common share as of period end 8
|
$
22.59
|
|
$
23.00
|
|
$
24.00
|
|
$
25.53
|
|
$
25.74
|
Leverage - average
during the period 9, 19
|
5.8:1
|
|
5.1:1
|
|
5.6:1
|
|
5.8:1
|
|
4.9:1
|
Leverage - average
during the period, including net TBA position
10
|
6.8:1
|
|
6.2:1
|
|
6.2:1
|
|
6.5:1
|
|
6.9:1
|
Leverage - as of
period end 11, 19
|
5.8:1
|
|
5.9:1
|
|
5.3:1
|
|
5.8:1
|
|
5.3:1
|
Leverage - as of
period end, including net TBA position 12
|
6.8:1
|
|
6.8:1
|
|
6.1:1
|
|
6.4:1
|
|
6.9:1
|
|
|
|
|
|
|
|
|
|
|
Key Performance
Statistics:
|
|
|
|
|
|
|
|
|
|
Average coupon
13, 19
|
3.62%
|
|
3.62%
|
|
3.60%
|
|
3.63%
|
|
3.66%
|
Average asset yield
14, 19
|
2.87%
|
|
2.42%
|
|
2.95%
|
|
2.57%
|
|
2.57%
|
Average cost of funds
15, 19
|
(1.60%)
|
|
(1.70%)
|
|
(1.43%)
|
|
(1.28%)
|
|
(1.39%)
|
Average net interest
rate spread 19
|
1.27%
|
|
0.72%
|
|
1.52%
|
|
1.29%
|
|
1.18%
|
Average net interest
rate spread, including TBA dollar roll income/loss
16
|
1.47%
|
|
1.14%
|
|
1.74%
|
|
1.53%
|
|
1.85%
|
Average coupon - as
of period end 19
|
3.63%
|
|
3.61%
|
|
3.62%
|
|
3.58%
|
|
3.65%
|
Average asset
yield - as of period end 19
|
2.78%
|
|
2.76%
|
|
2.75%
|
|
2.64%
|
|
2.74%
|
Average cost of funds
- as of period end 17, 19
|
(1.65%)
|
|
(1.64%)
|
|
(1.56%)
|
|
(1.34%)
|
|
(1.40%)
|
Average net interest
rate spread - as of period end 19
|
1.13%
|
|
1.12%
|
|
1.19%
|
|
1.30%
|
|
1.34%
|
Average actual CPR
for securities held during the period 19
|
10%
|
|
12%
|
|
12%
|
|
8%
|
|
9%
|
Average forecasted
CPR - as of period end 19
|
8%
|
|
9%
|
|
8%
|
|
10%
|
|
9%
|
Total premium
amortization, net
|
$
(78)
|
|
$
(128)
|
|
$
(69)
|
|
$
(133)
|
|
$
(121)
|
Expenses % of average
total assets - annualized
|
0.23%
|
|
0.25%
|
|
0.21%
|
|
0.20%
|
|
0.22%
|
Expenses % of average
stockholders' equity - annualized
|
1.61%
|
|
1.57%
|
|
1.59%
|
|
1.55%
|
|
1.48%
|
Net comprehensive
income (loss) return on average common equity -
annualized
|
1.0%
|
|
(7.1%)
|
|
(15.6%)
|
|
7.2%
|
|
13.3%
|
Dividends declared
per common share
|
$
0.60
|
|
$
0.60
|
|
$
0.62
|
|
$
0.66
|
|
$
0.66
|
Economic return
(loss) on common equity - annualized 18
|
3.3%
|
|
(6.6%)
|
|
(14.3%)
|
|
7.1%
|
|
13.4%
|
|
|
|
|
|
|
|
|
|
|
*Except as noted
below, average numbers for each period are weighted based on days
on the Company's books and records. All percentages are
annualized.
|
** Numbers may not
total due to rounding.
|
- The Company voluntarily discontinued hedge
accounting under GAAP for interest rate swaps as of September 30,
2011. The accumulated other comprehensive loss on the
Company's de-designated interest rate swaps as of September 30,
2011 is being amortized on a straight-line basis over the remaining
swap terms into interest expense. All other periodic interest
costs,termination fees and mark-to-market adjustments associated
with interest rate swaps are reported in other income (loss), net
pursuant to GAAP.
- Table includes non-GAAP financial
measures. Refer to "Use of Non-GAAP Financial Information"
for additional discussion of non-GAAP financial measures.
- Other interest rate swap periodic costs
represent periodic interest costs on the Company's interest rate
swap portfolio in excess of amounts reclassified from accumulated
OCI into interest expense (see footnote 1 for additional
information). Other interest rate swap periodic costs do not
include termination fees or mark-to-market adjustments associated
with interest rate swaps.
- Average repurchase agreements and other debt
includes agency repo, FHLB advances and debt of consolidated
VIE's. Amount excludes U.S. Treasury repurchase
agreements.
- Capital losses in excess of capital gains are
not deductible from the Company's ordinary taxable income, but may
be carried forward for up to five years and applied against future
net capital gains.
- Agency securities at par value exclude the
underlying unamortized principal balance ("UPB") of the Company's
interest-only securities. Excludes TBAs.
- Average stockholders' equity calculated as
the average month-ended stockholders' equity during the
quarter.
- Net book value per common share calculated as
total stockholders' equity, less the preferred stock liquidation
preference, divided by the number of common shares outstanding as
of period end.
- Leverage during the period was calculated by
dividing the daily weighted average agency repurchase agreements,
FHLB advances and debt of consolidated VIEs outstanding for the
period by the sum of average stockholders' equity less the average
investment in REIT equity securities for the period. Leverage
excludes U.S. Treasury repurchase agreements.
- Leverage during the period, including net TBA
position, includes the components of "leverage - average during the
period," plus the Company's daily weighted average net TBA dollar
roll position (at cost) during the period.
- Leverage at period end was calculated by
dividing the sum of the amount outstanding under agency repurchase
agreements, FHLB advances, debt of consolidated VIE and net
receivable / payable for unsettled agency securities by the sum of
total stockholders' equity less the fair value of investments in
REIT equity securities at period end. Leverage excludes U.S.
Treasury repurchase agreements.
- Leverage at period end, including net TBA
position, includes the components of "leverage - as of period end,"
plus the Company's net TBA dollar roll position (at cost) as of
period end.
- Average coupon for the period was calculated
by dividing the total coupon (or cash) interest income on agency
securities by average agency securities held at par.
- Average asset yield for the period was
calculated by dividing the total interest income on agency
securities (coupon interest less amortization of net premiums and
discounts) by the average amortized cost of agency securities
held.
- Cost of funds includes agency repurchase
agreements, other debt and current pay interest rate swaps, but
excludes swap termination fees, forward starting swaps and costs
associated with other supplemental hedges such as swaptions and
short U.S. Treasury or TBA positions. Average cost of funds
for the period was calculated by dividing the total cost of funds
by the average agency repurchase agreements and other debt
outstanding for the period. Cost of funds excludes U.S.
Treasury repurchase agreements.
- Estimated TBA dollar roll income/(loss) is
net of TBAs used for hedging purposes. Dollar roll income/(loss)
excludes the impact of other supplemental hedges, and is recognized
in gain (loss) on derivative instruments and other securities,
net.
- Cost of funds as of period end includes
agency repurchase agreements and other debt outstanding, plus the
impact of interest rate swaps in effect as of each period end.
Amount excludes forward starting swaps and costs associated with
other supplemental hedges such as swaptions and short U.S. Treasury
or TBA
positions.
- Economic return (loss) on common equity
represents the sum of the change in net asset value per common
share and dividends declared on common stock during the period over
the beginning net asset value per common share.
- Excludes net TBA mortgage position.
|
STOCKHOLDER CALL
AGNC invites stockholders,
prospective stockholders and analysts to attend the AGNC
stockholder call on February 2, 2016 at 11:00 am ET. Interested persons who do not
plan on asking a question and have access to the internet are
encouraged to utilize the free live webcast at www.AGNC.com.
Those who plan on participating in the Q&A or do not have the
internet available may access the call by dialing (877) 300-5922
(U.S. domestic) or (412) 902-6621 (international). Please advise
the operator you are dialing in for the American Capital Agency
stockholder call.
A slide presentation will accompany the call and will be
available at www.AGNC.com. Select the Q4 2015 Earnings
Presentation link to download and print the presentation in advance
of the stockholder call.
An archived audio of the stockholder call combined with the
slide presentation will be available on the AGNC website after the
call on February 2, 2016. In addition, there will be a
phone recording available one hour after the live call on
February 2, 2016 through February 16,
2016. If you are interested in hearing the recording of the
presentation, please dial (877) 344-7529 (U.S. domestic) or (412)
317-0088 (international). The conference number is
10078446.
For further information, please contact Investor Relations at
(301) 968-9300 or IR@AGNC.com.
ABOUT AMERICAN CAPITAL AGENCY CORP.
American Capital
Agency Corp. is a real estate investment trust ("REIT") that
invests primarily in agency pass-through securities for which the
principal and interest payments are guaranteed by a U.S. Government
agency or a U.S. Government-sponsored enterprise. The Company
is externally managed and advised by American Capital AGNC
Management, LLC, an affiliate of American Capital, Ltd. For
further information, please refer to www.AGNC.com.
ABOUT AMERICAN CAPITAL, LTD.
American Capital, Ltd.
(Nasdaq: ACAS) is a publicly traded private equity firm and global
asset manager. American Capital, both directly and through
its asset management business, originates, underwrites and manages
investments in middle market private equity, leveraged finance,
real estate and structured products. American Capital manages
$23 billion of assets, including
assets on its balance sheet and fee earning assets under management
by affiliated managers, with $80
billion of total assets under management (including levered
assets). Through a wholly owned affiliate, American Capital
manages publicly traded American Capital Agency Corp. (Nasdaq:
AGNC), American Capital Mortgage Investment Corp. (Nasdaq: MTGE)
and American Capital Senior Floating, Ltd. (Nasdaq: ACSF) with
approximately $10 billion of total
net book value. From its eight offices in the U.S.,
Europe and Asia, American Capital and its wholly owned
affiliate, European Capital, will consider investment opportunities
from $10 million to $600
million. For further information, please refer to
www.AmericanCapital.com.
FORWARD LOOKING STATEMENTS
This press release
contains forward-looking statements. Forward-looking
statements are based on estimates, projections, beliefs and
assumptions of management of the Company at the time of such
statements and are not guarantees of future performance.
Forward-looking statements involve risks and uncertainties in
predicting future results and conditions. Actual results
could differ materially from those projected in these
forward-looking statements due to a variety of important factors,
including, without limitation, changes in interest rates, changes
in the yield curve, changes in prepayment rates, the availability
and terms of financing, changes in the market value of the
Company's assets, general economic conditions, market conditions,
conditions in the market for agency securities, and legislative and
regulatory changes that could adversely affect the business of the
Company. Certain factors that could cause actual results to
differ materially from those contained in the forward-looking
statements, are included in the Company's periodic reports filed
with the Securities and Exchange Commission ("SEC"). Copies
are available on the SEC's website, www.sec.gov. The Company
disclaims any obligation to update or revise any forward-looking
statements based on the occurrence of future events, the receipt or
new information, or otherwise.
USE OF NON-GAAP FINANCIAL INFORMATION
In addition to
the results presented in accordance with GAAP, the Company's
results of operations discussed in this release include certain
non-GAAP financial information, including "adjusted net interest
expense" (defined as interest expense plus the periodic interest
rate costs of the Company's interest rate swaps reported in gain
(loss) on derivatives and other securities, net in its consolidated
statements of comprehensive income), "net spread and dollar roll
income" (defined as interest income, TBA dollar roll income and
dividends from REIT equity securities, net of adjusted net interest
expense and operating expenses) and "estimated taxable income" and
certain financial metrics derived from non-GAAP information, such
as "cost of funds" and "net interest rate spread."
By providing users of the Company's financial information with
such measures in addition to the related GAAP measures, the Company
believes it gives users greater transparency into the information
used by the Company's management in its financial and operational
decision-making and that it is meaningful information to consider
related to: (i) in the case of adjusted net interest expense, the
economic costs of financing the Company's investment portfolio
inclusive of interest rate swaps used to economically hedge against
fluctuations in its borrowing costs, (ii) in the case of net spread
and dollar roll income, the Company's current financial performance
without the effects of certain transactions that are not
necessarily indicative of its current investment portfolio and
operations, and (iii) in the case of estimated taxable income,
information that is directly related to the amount of dividends the
Company is required to distribute in order to maintain its REIT
qualification status. However, because such measures are
incomplete measures of the Company's financial performance and
involve differences from results computed in accordance with GAAP,
they should be considered as supplementary to, and not as a
substitute for, results computed in accordance with GAAP. In
addition, because not all companies use identical calculations, the
Company's presentation of such non-GAAP measures may not be
comparable to other similarly-titled measures of other
companies. Furthermore, estimated taxable income can include
certain information that is subject to potential adjustments up to
the time of filing the Company's income tax returns, which occurs
after the end of its fiscal year.
A reconciliation of GAAP net interest income to non-GAAP net
spread and dollar roll income and a reconciliation of GAAP net
income to non-GAAP estimated taxable income is included in this
release.
CONTACT:
Investors - (301) 968-9300
Media - (301) 968-9400
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/american-capital-agency-corp-reports-006-comprehensive-income-per-common-share-and-2259-net-book-value-per-common-share-300213077.html
SOURCE American Capital Agency Corp.