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This article highlights AGNC’s Interest Income Breakdown by Segment, split across cash/coupon interest income and net premium amortization benefit, reported on a quarterly basis from Q1 2016 onwards.
AGNC Investment Corp, an American Real estate company founded in 2008 and headquartered in Maryland, is a REIT – Real Estate investment trust.
The company’s Interest Income is generated through:
The following table consists of the interest income for quarters – Q3 2022, Q4 2022, Q1 2023,
Segment | 2022 Q3 | 2022 Q4 | 2023 Q1 |
Cash/Coupon interest income | 409,000,000 | 402,000,000 | 471,000,000 |
Net Premium Amortisation benefit | (36,000,000) | (55,000,000) | (120,000,000) |
Total | 373,000,000 | 347,000,000 | 351,000,000 |
All the figures in the table are USD.
In the first quarter of 2023, cash/coupon interest income increased by 17% over the previous quarter, and the company received an amortization benefit of 120 million, which doubled over the previous quarter. The amortization benefit is deducted from the interest income to reduce the company’s taxable income. This benefit eventually reduces the tax payable. However, the total after applying the benefit does not appear to differ significantly between the three quarters.
About AGNC Investment Corps
A real estate investment trust (REIT), American Capital Agency Corp (AGNC), was founded in 2008 by Malon Wilkus. AGNC depends on most of its income from investments in residential mortgage pass-through securities and collateralized mortgage obligations. It appeared on the Forbes Global 2000 in 2016 and dropped off in 2017. They are the leading provider of private capital to the U.S. housing market. On a leveraged basis, AGNC invests primarily in Agency residential mortgage-backed securities (“Agency RMBS”). The company is required to generate 90% of its taxable income to its shareholders on a timely basis thus, generally being exempt from the US federal or state corporate income tax.
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