BETHESDA, Md., Feb. 8, 2011 /PRNewswire/ -- American Capital
Agency Corp. ("AGNC" or the "Company") (Nasdaq: AGNC) today
reported net income for the fourth quarter of 2010 of $138.1 million, or $2.50 per share, and book value of $24.24 per share.
FOURTH QUARTER 2010 FINANCIAL HIGHLIGHTS
- $2.50 per share of net income
- $1.26 per share, excluding
$1.24 per share of other investment
related income and excise tax
- $1.64 per share of taxable
income(1)
- $1.40 per share fourth quarter
dividend paid on January 27,
2011
- $0.60 per share of undistributed
taxable income as of December 31,
2010
- Undistributed taxable income was $39
million as of December 31,
2010, essentially unchanged from September 30, 2010
- $24.24 book value per share as of
December 31, 2010
- Increased from $23.43 per share
as of September 30, 2010
- Increased from $23.78 per share,
pro forma, as of September 30,
2010 when adjusted for the follow-on equity offering that
closed on October 1, 2010
- 42% annualized return on average stockholders' equity ("ROE")
for the quarter(2)
OTHER FOURTH QUARTER HIGHLIGHTS
- $13.5 billion portfolio value as
of December 31, 2010
- 18%(3) constant prepayment rate ("CPR") for the fourth quarter
of 2010
- 16% CPR in December 2010 (based
on data released in January
2011)
- 7.8x(4) leverage as of December 31,
2010
- 8.4x average leverage for the quarter
- 2.58% annualized net interest rate spread for the quarter
- $354 million of net proceeds
raised from follow-on equity offerings during the quarter(5)
- $227 million raised from a
follow-on equity offering that settled on December 14
- $127 million raised pursuant to a
Controlled Equity Offering(SM) Sales Agreement
- In January 2011 raised an
additional $719 million from a
subsequent follow-on equity offering
- All equity raised was accretive to book value
2010 FULL YEAR FINANCIAL HIGHLIGHTS
- $7.89 per share of net income
- $4.50 per share, excluding
$3.39 per share of other investment
related income, amortization expense associated with the
termination of interest rate swaps during 2009 and excise tax
- 34% ROE
- $5.60 per share dividends
declared
- $6.76 per share of taxable
income(6)
- Undistributed taxable income increased from $22 million as of December
31, 2009 to $39 million as of
December 31, 2010
- $1.76 per share or 7.8% increase
in book value
- Increased from $22.48 as of
December 31, 2009 to $24.24 per share as of December 31, 2010
- 33% economic return
- Represents the combination of dividends paid plus book value
appreciation over the year
- 29% total return to shareholders
- Represents the combination of dividends paid or accrued plus
share price appreciation over the year
“We are proud of the performance of AGNC in 2010, successfully
navigating multiple challenges in our markets,” said Malon Wilkus, Chief Executive Officer of AGNC,
“We delivered a 33% economic return to our shareholders in 2010,
counting dividends paid plus book value appreciation and a 34%
return on equity. We accomplished this due to the outstanding
insights of Gary Kain our Chief
Investment Officer and the AGNC team whose focus on relative value
within the agency market proved highly successful. During the
year, we also expanded the team, deepening and enhancing our
overall capabilities. We are excited about the opportunity to
perform for our shareholders in 2011 and beyond.”
"2010 was an extremely volatile year," said Gary Kain, Chief Investment Officer of AGNC,
"where every quarter had significant and unique challenges in the
mortgage market. Despite this difficult backdrop, we were
able to produce strong returns for our shareholders each quarter,
broaden our shareholder base, and meaningfully grow our
company. We paid $5.60 per
share in dividends for the year and grew our book value per share
by $1.76 from $22.48 as of December 31,
2009 to $24.24 as of
December 31, 2010. We view the
combination of these two metrics as an essential part of
shareholder value creation over the long term. We are
proud of these accomplishments and believe that our emphasis on
asset selection coupled with our active approach to portfolio
management was instrumental to this success."
"As we look ahead," continued Mr. Kain, "we believe that the
economic and competitive landscape is very favorable for our
industry. The changes we are witnessing at the GSE's, coupled with
a prepayment environment that is likely to be more benign, should
provide for an attractive backdrop for mortgage investors.
When you combine this with a very steep yield curve, and a Federal
Reserve that is likely to keep short term funding rates low for an
extended period of time, we continue to remain optimistic."
INVESTMENT PORTFOLIO
As of December 31, 2010, the
Company's investment portfolio totaled $13.5
billion of agency securities, at fair value, comprised of
$9.1 billion of fixed-rate agency
securities, $3.9 billion of
adjustable-rate agency securities ("ARMs") and $0.5 billion of collateralized mortgage
obligations ("CMOs") backed by fixed and adjustable-rate agency
securities(7). As of December 31,
2010, AGNC's investment portfolio was comprised of 40%