Here are 1-2 brief analogies to describe AGNC Investment:

• It's like a real estate investment trust (REIT) that invests in mortgages, similar to how Simon Property Group invests in malls, but AGNC buys government-guaranteed mortgage bonds instead of physical properties.
• Imagine the part of a large bank, like JPMorgan Chase, that manages its portfolio of mortgage securities, but AGNC does this exclusively for government-backed mortgages, using significant borrowed money.

• Investment in Residential Mortgage Pass-Through Securities: The company acquires securities representing ownership in pools of residential mortgage loans, with principal and interest payments guaranteed by government-sponsored enterprises or agencies.
• Investment in Collateralized Mortgage Obligations (CMOs): AGNC invests in debt obligations backed by pools of mortgages, structured to provide various payment streams, and guaranteed by government-sponsored enterprises or agencies.

Major Customers of AGNC Investment (AGNC)

AGNC Investment Corp. operates as a mortgage real estate investment trust (mREIT). Its core business model involves investing in residential mortgage-backed securities (MBS) and generating income from the net interest margin between its investment portfolio and its funding costs.

Due to this investment-centric business model, AGNC does not have traditional "customers" who purchase products or services from the company in the way a typical manufacturing or service-oriented business would. Its revenue is derived primarily from the interest payments on the mortgage-backed securities it holds.

These principal and interest payments are guaranteed by U.S. government-sponsored enterprises (GSEs) such as Fannie Mae (OTCMKTS: FNMA) and Freddie Mac (OTCMKTS: FMCC), or by U.S. government agencies like Ginnie Mae. While these entities are crucial to AGNC's revenue stream by guaranteeing the payments, they are not customers purchasing a service or product from AGNC. Rather, they are guarantors of the financial assets AGNC holds.

• Federal National Mortgage Association (FNMA)
• Federal Home Loan Mortgage Corporation (FMCC)
• Government National Mortgage Association

Peter J. Federico, President and Chief Executive Officer

Peter J. Federico has served as a Director and Chief Executive Officer of AGNC Investment Corp. since July 2021, and as President since March 2018. He also assumed the role of Chief Investment Officer in March 2025. Prior to his CEO appointment, he held various leadership positions at AGNC, including Chief Operating Officer from 2018 to 2021, Executive Vice President and Chief Financial Officer from 2016 to 2018, and Senior Vice President and Chief Risk Officer from 2011 to 2016. Before joining AGNC Investment Corp., Mr. Federico spent over two decades at Freddie Mac, where he served as Executive Vice President and Treasurer from 2010 to 2011, overseeing a $1.2 trillion interest-rate derivatives portfolio and debt issuance programs. He also held roles as Senior Vice President, Asset & Liability Management at Freddie Mac. Additionally, he was President & Chief Operating Officer for MTGE Investment Corp. and held positions at The Freddie Mac Foundation, Inc.

Bernice E. Bell, Executive Vice President and Chief Financial Officer

Bernice E. Bell has been Executive Vice President of AGNC Investment Corp. since January 2022 and Chief Financial Officer since March 2018. She also serves as Chief Financial Officer & Vice President of American Capital AGNC Management LLC. Her tenure at AGNC includes roles as Senior Vice President from 2016 to 2022, Chief Accounting Officer from 2016 to 2018, Vice President from 2011 to 2016, and Controller from 2008 to 2015. Before AGNC, Ms. Bell served as Vice President and Controller of American Capital, Ltd. from 2003 to 2009. She was also Vice President and Controller for privately-held telecommunications and software development companies from 1998 to 2003 and worked at Price Waterhouse, LLP from 1994 to 1998. She is a Certified Public Accountant.

Gary D. Kain, Executive Chair

Gary D. Kain has served as the Executive Chair of AGNC Investment Corp.'s Board of Directors since July 2021 and has been a Director since March 2016. Previously, he held the titles of Chief Executive Officer from 2016 to 2021 and Chief Investment Officer from 2009 to 2021. He also served as President from 2011 to 2018. Prior to joining AGNC Investment Corp., Mr. Kain held senior mortgage investment leadership positions at Freddie Mac, including Senior Vice President of Investments & Capital Markets from 2008 to 2009, and Senior Vice President of Mortgage Investments & Structuring from 2005 to 2008, where he managed mortgage investment activities for a $700 billion retained portfolio. He was an early investment lead at AGNC when it was formed by American Capital Ltd. in 2008. He also served as Director, CEO, President, and CIO of MTGE Investment Corp.

Christopher J. Kuehl, Executive Vice President and Chief Investment Officer

Christopher J. Kuehl serves as Executive Vice President and Chief Investment Officer of AGNC Investment Corp., a role he assumed in July 2021. He joined AGNC in August 2010 and previously served as Executive Vice President – Agency Portfolio Investments since November 2016, and as Senior Vice President from 2012 to 2016. Mr. Kuehl has extensive experience investing in mortgage-backed securities and has worked alongside Peter Federico and Gary Kain at AGNC for over 12 years.

Kenneth L. Pollack, Executive Vice President, General Counsel, Chief Compliance Officer, and Secretary

Kenneth L. Pollack holds the titles of Executive Vice President, General Counsel, Chief Compliance Officer, and Secretary at AGNC Investment Corp. He joined American Capital in 2004 as Vice President and Associate General Counsel. Before his time at American Capital, Mr. Pollack was a member of the Corporate & Securities and Real Estate practice groups at Arnold & Porter LLP. His practice there focused on public and private mergers and acquisitions, buyouts, private equity, and secured lending transactions across various business sectors. He also provided counsel on corporate governance issues and regulatory compliance matters.

The key risks to AGNC Investment Corp. (AGNC) primarily stem from its business model as a mortgage real estate investment trust (mREIT), which involves investing in mortgage-backed securities (MBS) using significant leverage.

1. Interest Rate Risk: AGNC's profitability is highly sensitive to changes in interest rates. As an mREIT, the company borrows funds short-term (primarily through repurchase agreements) and invests in longer-term residential mortgage pass-through securities and collateralized mortgage obligations. Rising interest rates can lead to increased funding costs and a decrease in the value of its existing fixed-rate MBS portfolio, which can squeeze profit margins and erode book value. Conversely, while falling rates can reduce borrowing costs, they also introduce prepayment risk. Interest rate volatility itself can negatively impact the company's performance.
2. Leverage Risk: AGNC employs substantial leverage to enhance its returns, with its "at-risk" leverage ratio often being significant (e.g., 7.5x tangible net book value as of Q3 2025). While leverage can amplify gains when market conditions are favorable, it also magnifies losses during periods of adverse market movements, particularly those driven by interest rate fluctuations. This amplified exposure can lead to increased volatility in the company's book value and potential reductions in dividend payments.
3. MBS Spread Volatility (including Prepayment and Extension Risk): AGNC's business is exposed to fluctuations in the spreads between the yields on its mortgage-backed securities and its funding costs. This encompasses two related risks:
   • Prepayment Risk: When interest rates decline, homeowners are more likely to refinance their mortgages, leading to earlier-than-anticipated principal payments on AGNC's MBS. This forces the company to reinvest the returned capital at potentially lower prevailing interest rates, thereby reducing its overall portfolio yield.
   • Extension Risk: Conversely, if interest rates rise, homeowners may delay refinancing, causing the average life of AGNC's MBS to extend. This can lock the company into lower-yielding assets for a longer duration, potentially missing opportunities to invest in new, higher-yielding securities.
   These risks directly impact the valuation of AGNC's MBS portfolio and its ability to generate consistent returns.

The addressable market for AGNC Investment Corp.'s main products and services, which consist of residential mortgage pass-through securities and collateralized mortgage obligations guaranteed by United States government-sponsored enterprises or government agencies (known as Agency MBS), is estimated to be approximately USD 13.85 trillion in the U.S..

The overall Mortgage-Backed Securities (MBS) market in the United States is estimated at USD 15.55 trillion in 2025. Within this, the non-agency Residential Mortgage-Backed Securities (RMBS) market, which does not carry a government guarantee, has over USD 1.7 trillion in outstanding securities. By subtracting the non-agency portion from the total MBS market, the addressable market for Agency MBS is determined for the U.S. region.

AGNC Investment Corp. (AGNC) is anticipated to drive future revenue growth over the next 2-3 years through a combination of favorable macroeconomic conditions and strategic operational initiatives. The company's focus as a real estate investment trust (REIT) specializing in Agency Mortgage-Backed Securities (MBS) means its performance is closely tied to interest rate environments and effective portfolio management.

1. Favorable Interest Rate Environment and Yield Curve Normalization: A significant driver of revenue growth for AGNC is the expectation of a more favorable interest rate environment, characterized by potential federal fund rate cuts and a normalizing or positively sloped yield curve. This shift is expected to reduce AGNC's borrowing costs, which are primarily structured as repurchase agreements, thereby improving its net interest margin (NIM) and overall profitability. Analysts and company executives have indicated that the Federal Reserve's pivot to a more accommodative monetary policy, including anticipated rate cuts in 2025 and 2026, will create beneficial conditions for high-quality fixed-income instruments like Agency MBS.
2. Stable and Attractive Agency MBS Spreads: The core of AGNC's profitability lies in the spread between the yields on its Agency MBS assets and its funding costs. The company's future revenue growth is highly dependent on these spreads remaining stable and attractive. Management commentary frequently highlights that a consistent and favorable trading range for Agency MBS spreads to benchmark rates is crucial for generating strong economic returns. While some volatility may occur, the outlook points towards spreads remaining in a range that offers appealing levered returns for Agency REITs.
3. Growth of Investment Portfolio through Opportunistic Capital Raises: AGNC has a demonstrated strategy of opportunistic capital raises, primarily through at-the-market (ATM) equity offerings. These capital infusions provide the company with the necessary funds to expand its investment portfolio by purchasing new Agency MBS. A larger asset base directly translates to increased potential for interest income, which is a primary component of AGNC's revenue. For instance, in Q3 2024, AGNC added about $5 billion in Agency MBS, growing its portfolio to $72.1 billion, and continued significant capital raising in Q4 2024 and Q1 2025.
4. Active Portfolio Management and Strategic Asset Allocation: AGNC's proactive and dynamic approach to managing its investment portfolio, including strategic asset allocation, is expected to enhance revenue. This involves optimizing existing holdings, rotating towards higher-coupon securities, and carefully managing prepayment risk to stabilize cash flows and enhance net interest income. The company's strategy includes increasing exposure to higher-coupon securities to provide greater stability in cash flows, especially during periods of fluctuating interest rates.

Share Repurchases

• AGNC Investment Corp.'s board of directors authorized a new share repurchase program of up to $1 billion in October 2024, set to continue through December 31, 2026.
• As of September 30, 2025, the full $1 billion authorization for share repurchases remained available.
• Management's strategy is to repurchase shares only when they trade below the tangible net book value.

Share Issuance

• For the full year 2025, AGNC issued 208.2 million shares of common equity through at-the-market (ATM) offerings, resulting in net proceeds of $2.0 billion.
• In 2025, the company also issued $345 million of 8.75% Series H Fixed-Rate preferred equity.
• During the third quarter of 2025, AGNC issued 31.0 million shares of common equity through ATM offerings, generating net proceeds of $309 million.

Outbound Investments

• AGNC's core business involves investing in residential mortgage pass-through securities and collateralized mortgage obligations, primarily Agency mortgage-backed securities (MBS).
• As of December 31, 2025, the company's investment portfolio totaled $94.8 billion, predominantly consisting of Agency MBS and TBA (to-be-announced) securities.