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Author's Note: This three-part article is a very detailed look at AGNC's income statement. I perform this detailed analysis for readers who anticipate/want such an analysis performed each quarter. For readers who just want the summarized account projections, I would suggest to just scroll down to the "Conclusions Drawn" section at the bottom of the each part of the article.

Focus of Article:

The focus of this article is to provide a detailed projection of American Capital Agency Corp.'s (NASDAQ:AGNC) income statement for the fourth quarter of 2013. Prior to results being provided to the public in early February (via the company's quarterly press release), I would like to analyze AGNC's income statement for the fourth quarter of 2013 and provide readers a general direction on how I feel this recent quarter has panned out.

Due to the length of the material covered in this article, I feel it is necessary to break AGNC's income statement projection for the fourth quarter of 2013 into three parts. This article will be broken-down by the following categories within the income statement:

A) Net Income (PARTS 1, 2)

B) Other Comprehensive Income (Loss) (OCI/(OCL)) (PART 3)

C) Comprehensive Income (Loss) (A + B Combined) (PART 3)

In a future article, I will project AGNC's book value ('BV') as of 12/31/2013.

Side Note: Predicting a company's accounting figures within the mortgage real estate investment trust (mREIT) sector is usually more difficult when compared to other sectors due to the various hedging and asset portfolio strategies that are implemented by management each quarter. As such, there are several assumptions used when performing such an analysis. AGNC's actual reported values may differ materially from my projected values within this article due to unforeseen circumstances. This could occur because management deviates from a company's prior business strategy and pursues a new strategy that was not previously disclosed. Readers should be aware as such. All projections within this article are my personal estimates and should not solely be used for any investor's buying or selling decisions. All actual reported figures that are above my ranges within this article will be deemed a positive sign in my judgment. All actual reported figures that are below my ranges within this article will be deemed a negative sign in my judgment. Unless otherwise noted, all figures below are for the "three-months ended" (quarterly) timeframe.

A) Net Income:

- Net Income Estimate of $91 Million; Range ($309) - $491 Million

- Net Income of $0.24 Per Share (Excluding OCI/(OCL)); Range ($0.84) - $1.32 Per Share

- Confidence Within Range = Moderate

- See Red Reference "A" in Table 1 Below Next to the December 31, 2013 Column

Let us first look at AGNC's quarterly income statements for the trailing twelve-months going back to the fourth quarter of 2012 (ACTUAL) and my projection for the fourth quarter of 2013 (ESTIMATE). This information is provided in Table 1 below. The income statement (ACTUAL) figures are derived from AGNC's quarterly SEC submissions via the company's 10-Q or 10-K where applicable.

Table 1 - AGNC Quarterly Income Statement and Net Income Per Share Projection

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Table 1 above is the main source of summarized data regarding AGNC's net income. As such, all material accounts within Table 1 will be separately analyzed and discussed in corresponding order to the boxed blue references next to the December 31, 2013 column. PART 1 of this article will include an analysis on the following income statement accounts: 1) interest income; 2) interest expense; and 3) gain (loss) on sale of agency securities, net. PART 2 of this article will include an analysis on the following income statement accounts: 4) gain (loss) on derivative instruments, net and 5) management fees.

1) Interest Income:

- Estimate of $525 Million; Range $450 - $600 Million

- Confidence Within Range = High

- See Boxed Blue Reference "1" in Table 1 Above and Table 2 Below Next to the December 31, 2013 Column

AGNC's interest income is comprised of the following two sub-accounts: a) cash interest income and b) premium amortization, net. I show my projection for these two figures in Table 2 below. Some past (ACTUAL) figures within Table 2 are derived from either AGNC's quarterly investor presentation slides or SEC submissions via the company's 10-Q or 10-K where applicable (or a combination of both). This excludes all recalculated figures and ratios. As such, there will not be an identical sheet AGNC provides that matches the data I have prepared in Table 2 below. I have gathered specific information derived from multiple tables/charts for a more detailed analysis of AGNC's cash interest income and premium amortization, net accounts.

Table 2 - AGNC Quarterly Interest Income Projection

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Two assumptions should be noted within Table 2 above when projecting AGNC's cash interest income figure for the fourth quarter of 2013. First, I am projecting AGNC's "average agency securities, at cost" balance to decrease by ($7.4) billion when compared to the third quarter of 2013 ($79.0 billion versus $86.4 billion). In regards to the fourth quarter of 2013, many analysts have anticipated most companies within the mREIT sector will continue to deleverage asset portfolios to minimize valuation losses due to the continued mortgage-backed security ('MBS') price declines throughout the quarter. AGNC had already begun to implement this same strategy as of 9/30/2013. This strategy could be seen shown in AGNC's off-balance sheet "to-be-announced" ('TBA') MBS and forward settling agency securities account. While AGNC had a material net long TBA MBS and forward settling agency securities balance at the end of the first and second quarters of 2013, AGNC switched to a net (short) balance of ($7.3) billion as of 9/30/2013. AGNC enters into TBA contracts with a (short) position where it agrees to sell, for future delivery, MBS with certain predetermined prices, face amounts, issuers, coupons, and stated maturities. Since TBA contracts with a (short) position are ultimately a reduction of the balance sheet, this decreases AGNC's "at risk" leverage and amount of assets owned. Since MBS prices continued to generally decline throughout the latter half of the quarter (with the exception of a few higher coupon rates), I am assuming AGNC had a lower average MBS balance for the fourth quarter of 2013.

The following is a quote from AGNC's Chief Investment Officer ('CIO') Gary Kain during the earnings call for the third quarter of 2013:

"…we described the scenario where the employment picture and the economy as a whole quickly regained momentum allowing the Fed to taper relatively soon, let's say by January…Now if we felt this was the likely scenario, we would want to lower our leverage, sell more of low coupon 30-year MBS and increase our hedge ratios despite the significant headwinds these action would create with respect to our earnings..."

Due to the fact 30-year fixed-rate mortgage interest rates and 10-year U.S. Treasury yields have increased approximately 40 basis points ('bps') when comparing rates at 12/31/2013 versus 9/30/2013, I feel AGNC's management team set the quoted strategy above in motion during the fourth quarter of 2013.

Second, I am projecting a cash interest income yield increase of 1 basis point for the fourth quarter of 2013 when compared to the third quarter of 2013 (3.51% vs. 3.50%). This is due to two factors. The first factor was partially addressed above with the net (short) TBA MBS position. Out of AGNC's net (short) TBA MBS and forward settling agency securities balance of ($7.3) billion, ($2.0) billion of this balance was for 15-year maturities with a weighted average coupon of 3.52% while ($5.2) billion was for 30-year maturities with a weighted average coupon of only 2.79%. In other words, AGNC was aggressively continuing to sell the company's lowest coupon 30-year MBS to mitigate BV erosion in a rising interest rate environment. This leads us to the second factor. As AGNC continues to sell-off the company's lowest coupon MBS, management most likely used the proceeds to either repurchase outstanding shares of common stock or "re-roll" the portfolio into higher yielding coupons. This would include the continued "rebalancing" of AGNC's proportion of 15 and 30-year fixed-rate agency MBS holdings. When comparing AGNC's MBS portfolio as of 9/30/2013 versus 6/30/2013, the company's proportion of 15-year fixed-rate agency MBS increased by 10% (51% from 41%; excluding TBA MBS positions). As such, AGNC's proportion of 30-year fixed-rate agency MBS decreased by 11% (47% from 58%; excluding TBA MBS positions). Typically, the coupon offered on a 15-year fixed-rate agency MBS is lower when compared to a 30-year fixed-rate agency MBS (with all other variables being the same). As stated in past AGNC articles, management performed this portfolio rebalancing to help mitigate further MBS valuation losses in a rising interest rate environment (preservation of BV). This will be discussed further in PART 3 of this article.

Therefore, I am projecting a lower quarterly average agency securities balance of ($7.4) billion but a quarterly cash interest income yield increase of 1 basis point. Still using Table 2 above as a reference, I am projecting a cash interest income decrease of ($76) million for the fourth quarter of 2013 when compared to the third quarter of 2013 ($650 million versus $726 million).

The second component of AGNC's interest income account is the company's premium amortization, net figure. Again using Table 2 as a reference, AGNC's premium amortization, net expense for the first quarter of 2013 was $134 million. However, AGNC's premium amortization, net expense for the second quarter of 2013 decreased to only $98 million. The main reason for this material drop was the "spike" in overall market interest rates during the second quarter of 2013. During a rising interest rate environment (which occurred during the second quarter of 2013), a drop in prepayments will occur because a greater proportion of homeowners have mortgages that generally have lower interest rates when compared to the current market. The attractiveness of a mortgage refinance dissipates. As a result, prepayment risk lowers and extension risk increases. As such, the average useful life of AGNC's MBS portfolio "extends" further out into the future. When this type of environment is present, the quarterly premium amortization, net account decreases because there is generally more time to expense premium costs over the estimated life of the MBS. Furthermore, since MBS prices have materially decreased over the past several quarters, most new MBS purchases have an initial cost basis at a lower price premium than the weighted average cost basis of the portfolio (in some lower coupons a price discount is present).

AGNC's premium amortization, net expense for the third quarter of 2013 increased to a materially higher $168 million. This occurred for two reasons. First, overall market interest rates slightly reversed course during the third quarter of 2013. Second, AGNC had a quarterly average agency security balance of $86.4 billion versus an average of $74.8 billion for the second quarter of 2013.

I am projecting a premium amortization, net expense of $125 million for the fourth quarter of 2013. During the fourth quarter of 2013, mortgage interest rates first slightly decreased but then reversed course and increased over the last two months of the quarter. Therefore, the likelihood of most mortgages being refinanced first slightly increased but then rapidly decreased. As such, a lower overall constant prepayment rate ('CPR') on AGNC's MBS portfolio occurred during most of the quarter. Due to the quarterly average agency securities balance decrease of ($7.4) billion and the lower projected CPR rate, I feel a modest decrease in AGNC's premium amortization, net expense occurred.

Still using Table 2 above as a reference, I am projecting an overall premium amortization, net expense decrease of ($43) million for the fourth quarter of 2013 when compared to the third quarter of 2013 ($125 million versus $168 million). When my projections for the cash interest income and premium amortization, net expense sub-accounts are combined, I am projecting AGNC's interest income to decrease by ($33) million for the fourth quarter of 2013 when compared to the third quarter of 2013 ($525 million versus $558 million).

2) Interest Expense:

- Estimate of $125 Million; Range $100 - $150 Million

- Confidence Within Range = High

- See Boxed Blue Reference "2" in Table 1 Above and Table 3 Below Next to the December 31, 2013 Column

Now let us take a look at AGNC's interest expense account. I show my projection for this figure in Table 3 below. Some past (ACTUAL) figures within Table 3 are derived from either AGNC's quarterly investor presentation slides or SEC submissions via the company's 10-Q or 10-K where applicable (or a combination of both). This excludes all recalculated figures and ratios. As such, there will not be an identical sheet AGNC provides that matches the data I have prepared in Table 3 below. I have gathered specific information derived from multiple tables/charts for a more detailed analysis of AGNC's interest expense account.

Table 3 - AGNC Quarterly Interest Expense Projection

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Recalculating AGNC's quarterly interest expense is pretty straightforward. One takes the quarterly average of AGNC's outstanding repurchase agreements and multiplies this amount by the quarterly average of AGNC's cost of funds rate. Once this figure is calculated, one needs to back out a portion of the quarterly interest expense in relation to AGNC's interest rate swaps. This reclassified amount is represented within AGNC's "gain (loss) on derivative instruments, net" account. As mentioned earlier, this account will be projected in PART 2 of the article. The ending calculation is AGNC's quarterly interest expense figure (see boxed blue reference "2" in Table 3 above).

Two assumptions should be noted within Table 3 above when projecting AGNC's quarterly interest expense figure for the fourth quarter of 2013. First, let us calculate an appropriate quarterly "average repurchase agreements" figure. Based on an earlier calculated projection within AGNC's interest income account (see Table 2 above), I am projecting the company will have a quarterly average agency securities balance of $76.0 billion for the fourth quarter of 2013. Having this balance established, I can now project the quarterly average of AGNC's outstanding repurchase agreements. If one takes the quarterly "average agency securities, at cost" amount and divides this figure by the quarterly average of AGNC's outstanding repurchase agreements figure, the calculated "ratio of average agency securities vs. average repurchase agreements" is known. This ratio has been between 1.08 - 1.13 during the past four quarters. For the fourth quarter of 2013, I am using a ratio of 1.10 to project the quarterly average of AGNC's outstanding repurchase agreements figure. Therefore, by using a quarterly average agency securities balance of $76.0 billion and the ratio of average agency securities versus average repurchase agreements of 1.10, the quarterly average of AGNC's outstanding repurchase agreements is calculated to be $71.8 billion. This is a projected decrease of ($7.0) billion when compared to the quarterly average of AGNC's outstanding repurchase agreements figure for the third quarter of 2013.

Second, let us now obtain a suitable quarterly "average cost of funds rate". I am projecting a decrease in the average cost of funds rate by 1 basis point to (1.38%) for the fourth quarter of 2013. For purposes of this specific account, this 1 basis point decrease can be deceiving. The quarterly decrease in the average cost of funds rate by 1 basis point is mainly attributed to the increase of the average fixed pay rate on all newly acquired interest rate swaps with similar maturities offset by the lower average fixed pay rate on interest rate swaps with lesser maturities. This is currently occurring because overall market interest rates are rising while management continues to lower AGNC's proportion of 30-year MBS while increasing the company's proportion of 15-year MBS (net effect equals a lower positive duration). As mentioned earlier, all interest expense in relation to AGNC's interest rate swaps are reclassified out of this account and into the gain (loss) on derivative instruments, net account. As such, a portion of the quarterly average cost of funds rate is not in relation to AGNC's outstanding repurchase agreements. AGNC's interest expense, in relation to the company's outstanding repurchase agreements, is based on a small fixed rate percentage and a variable rate percentage based on the London Interbank Offered Rate (LIBOR).

AGNC's weighted average interest rate on the company's outstanding repurchase agreements was (0.44%) as of 9/30/2013 versus (0.45%) as of 6/30/2013. Even though most market interest rates increased during the latter half of the fourth quarter of 2013, LIBOR continued to slightly decrease throughout the quarter across the 1, 3, 6, and 12-month platforms. Therefore, the variable interest rate percentage on AGNC's repurchase agreements should also slightly decrease during the current quarter. I am making the assumption the weighted average maturity on AGNC's outstanding repurchase agreements as of 9/30/2013 will remain relatively unchanged throughout the fourth quarter of 2013.

Now that we have determined AGNC's average repurchase agreements figure and average cost of funds rate for the quarter, let us calculate the company's interest expense for the fourth quarter of 2013. Still using Table 3 as a reference, after a reclassification of $122 million for the net periodic interest costs on interest rate swaps, I am projecting AGNC's interest expense to decrease by ($20) million for the fourth quarter of 2013 when compared to the third quarter of 2013 ($125 million versus $145 million).

3) Gain (Loss) on Sale of Agency Securities, Net:

- Estimate of ($800) Million; Range ($400) Million - ($1.2) Billion

- Confidence Within Range = Moderate

- See Boxed Blue Reference "3" in Table 1 Above and Table 4 Below Next to the December 31, 2013 Column

AGNC's gain (loss) on sale of agency securities, net account can be somewhat difficult to accurately project. Through detailed research and data compilation, one can project (to a reasonable degree) how management "should" act within any given quarter regarding purchases and sales. However, I stress beforehand this will not be an "exact science" each quarter. There will be some variances that occur in a quarter if more/less sales and/or purchases actually occur versus originally projected. Additionally, unanticipated quarterly changes in the percentage of coupons/maturities held within the MBS portfolio would cause a slight deviation in asset valuations. During AGNC's last earnings call presentation, management shed some clarity on the company's intended strategy regarding MBS sales when overall market interest rates either moved higher or lower. However, several assumptions still need to be made.

Side Note: When I research and prepare my analysis regarding AGNC's income statement, I take into consideration the wide array of possibilities that can occur within the gain (loss) on sale of agency securities, net account. As such, this particular account is directly tied to AGNC's "unrealized gain (loss) on available-for-sale securities, net" account discussed in PART 3 of this article. Therefore, if AGNC's gain (loss) on sale of agency securities, net actual amount is above or below my projected figure/range, the variance is automatically offset in the company's unrealized gain (loss) on available-for-sale securities, net account. Since both accounts would offset each other, let us say my projected gain (loss) on sale of agency securities, net amount is lower than the actual results. If this were the case, then my projected unrealized gain (loss) on available-for-sale securities, net amount will automatically be higher by the exact same amount. If this situation occurs, my COMBINED projected figures would be accurately represented regardless. This happened regarding my projected gain (loss) on sale of agency securities, net and unrealized gain (loss) on available-for-sale securities, net accounts for the third quarter of 2013. When combining both these accounts together, I projected a valuation gain of $330 million for the third quarter of 2013. My projected range for these two combined accounts was ($220) - $880 million. AGNC reported a combined realized and unrealized valuation gain of $100 million for the third quarter of 2013. As such, actual results for both accounts, when combined, were towards the lower end of my range but still within my stated range. If one solely looked at each account separately, there would be a material deviation between my projected and actual results. However, in my opinion, both these accounts should really be looked at as one combined account. The unrealized gain (loss) on available-for-sale securities, net account has an immediate impact on BV while the gain (loss) on sale of agency securities, net account is merely a reclassification out of the unrealized account. As such, I feel both accounts should be monitored with the same level of importance.

Let us now take a look at the company's gain (loss) on sale of agency securities, net account in detail. I show my projection for this figure in Table 4 below. Some past (ACTUAL) figures within Table 4 are derived from either AGNC's quarterly investor presentation slides or SEC submissions via the company's 10-Q or 10-K where applicable (or a combination of both). This excludes all recalculated figures and ratios. As such, there will not be an identical sheet AGNC provides that matches the data I have prepared in Table 4 below. I have gathered specific information derived from multiple tables/charts for a more detailed analysis of AGNC's gain (loss) on sale of agency securities, net account.

Table 4 - AGNC Quarterly Gain (Loss) on Sale of Agency Securities, Net Projection

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Using Table 4 above as a reference, I project AGNC's "average total assets, fair value > cost basis" will have a balance of $11.0 billion for the fourth quarter of 2013. For the third quarter of 2013, AGNC had a balance of $22.7 billion. When compared to the third quarter of 2013, the ($11.7) billion negative change for the fourth quarter of 2013 is mainly due to the switch from a net long TBA MBS position of $14.4 billion as of 6/30/2013 to a net (short) TBA MBS position of ($7.3) billion as of 9/30/2013 (as will be further discussed in PART 2 of this article). This balance is based on AGNC's "average" cost versus fair market value of the company's MBS, TBA MBS, and forward settling agency securities during the fourth quarter of 2013. Table 4 shows these average balances to obtain an accurate average total assets, fair value > cost basis ratio which is relevant for determining an accurate projection for this account.

I am making the assumption AGNC will continue the company's MBS sales strategy that was originally implemented in prior quarters. This strategy was discussed within AGNC's interest income account above. To quickly reiterate, I feel AGNC will continue to sell a modest portion of the company's 30-year fixed-rate agency MBS holdings (most likely the lowest-coupons) while continuing to reposition into a higher proportion of 15-year fixed-rate agency holdings with a higher coupon. AGNC will continue with this strategy to mitigate future unrealized losses in a rising interest rate environment. Through my past research and analysis, I determined AGNC had recently increased the company's proportion of lower-coupon MBS due to the recent extremely low interest rate environment that occurred mainly in the latter half of 2012. Therefore, if AGNC continues to sell a portion of these lower-coupon 30-year fixed-rate agency MBS in the fourth quarter of 2013, the company will continue to sustain realized valuation losses. This occurs because cumulative running unrealized losses are reclassified upon the sale of a specified MBS. In a rising interest rate environment, the MBS sales price on the lower-coupon 30-year fixed-rate agency MBS will typically be less than the initial cost basis. Generally speaking, the same outcome would occur on most lower-coupon 15-year fixed-rate agency MBS as well (just less of a realized loss in most cases).

It should also be noted that additional losses will be incurred on these MBS sales due to the unamortized premium balances that have yet to be expensed. I state this assumption because if AGNC only recently purchased these lower-coupon MBS within the past several quarters, these agency securities would most likely still have an unamortized premium balance remaining on the books that must be written-off/expensed upon the sale. This assumes the MBS sales price is below the unamortized cost basis. When these assumptions are put together, this will cause a continued material loss within the gain (loss) on sale of agency securities, net account for the fourth quarter of 2013.

However, this loss will be slightly offset to an extent. There is one footnote within AGNC's quarterly SEC submissions which is important to mention here. AGNC states the figures within the "proceeds from sale of MBS sold" account includes all cash received during the period plus any receivable for agency securities sold during the period. In other words, all quarterly cash interest income received on quarterly MBS sales are reclassified out of the cash interest income account (previously discussed above) and accounted for within this account. Because of this reclassification, the gain (loss) on sale of agency securities, net account will always start off with a slightly positive balance before taking into consideration the true gain (loss) on AGNC's quarterly MBS sales.

Still using Table 4 above as a reference, since I am anticipating a material amount of quarterly MBS sales, I have kept AGNC's "agency MBS sold, at cost" amount at a relatively high level of ($23.5) billion. The more important aspect to take from Table 4 is not the amount of agency securities sold, but whether a gain (loss) will occur from the quarterly MBS sales. As projected earlier, most of AGNC's lower-coupon quarterly MBS sales for the fourth quarter of 2013 will result in a modest to material realized loss that will be slightly offset by the quarterly cash interest income received prior to the sale.

Finally, to calculate a proper figure regarding this account, I use a "proceeds from agency MBS sold vs. agency MBS sold, at cost" ratio to project the amount of gain (loss) that will occur in the fourth quarter of 2013. I have fractionally lowered this ratio from 0.971 in the third quarter of 2013 to 0.966 for the fourth quarter of 2013. As such, I am projecting AGNC's "proceeds from agency MBS sold" figure is $22.7 billion for the fourth quarter of 2013. Therefore, I am projecting AGNC's gain (loss) on sale of agency securities, net account to decrease by ($67) million for the fourth quarter of 2013 when compared to the third quarter of 2013 (($800) million versus ($733) million).

Side Note: Just to reiterate, all regular MBS UNREALIZED gain (loss) figures are excluded from AGNC's net income and are represented in AGNC's OCI/(OCL) section which will be discussed in PART 3 of this analysis. All TBA MBS and forward settling agency security gain (loss) figures are accounted for under the gain (loss) on derivative instruments and other securities, net account which will be discussed in PART 2 of this analysis.

I also see general similarities between AGNC and its sister company American Capital Mortgage Investment Company (NASDAQ:MTGE) regarding agency MBS portfolio strategies. However, MTGE's non-agency MBS portfolio should continue to benefit from rising real estate prices/indexes.

Conclusions Drawn (PART 1):

To sum up all the information above, I am projecting AGNC will report the following income statement figures for the fourth quarter of 2013 (refer to Table 1 at the beginning of the article):

1) Quarterly Interest Income of $525 Million

2) Quarterly Interest Expense of $125 Million

3) Quarterly Gain (Loss) on Sale of Agency Securities, Net of ($800) Million

I am projecting AGNC will report a reduced interest income figure when compared to the prior quarter. I am projecting a ($33) million reduction in this account mainly due to the following factors regarding AGNC's MBS portfolio during the fourth quarter of 2013: 1) slight overall deleveraging; 2) continued conversion to a higher percentage of 15-year fixed-rate agency MBS holdings versus 30-year fixed-rate agency MBS holdings; 3) overall increase in MBS coupon rates when comparing similar maturities; and 4) lower premium amortization, net expense.

I am projecting AGNC will also report a reduced interest expense figure when compared to the prior quarter. I am projecting a ($20) million reduction in this account due to the projected modest decrease of ($7.0) billion in AGNC's quarterly average outstanding repurchase agreements for the fourth quarter of 2013.

I am projecting AGNC will also report a slightly worse gain (loss) on sale of agency securities, net figure when compared to the prior quarter. I am projecting AGNC's gain (loss) on sale of agency securities, net account to decrease by ($67) million due to AGNC continuing to sell the company's lower-coupon 30-year fixed-rate agency MBS holdings which will result in modest to material realized losses. This net realized loss on MBS sales will be slightly offset by the quarterly cash interest income received on MBS sales during the fourth quarter of 2013.

Final Note: PART 1 of this article is only a PARTIAL analysis of AGNC's income statement for the fourth quarter of 2013. As such, a "full" conclusion regarding AGNC's income statement will not be provided yet. PART 2 of this article will just pick up where PART 1's analysis ends. PART 2 of this article will discuss AGNC's projected gain (loss) on derivative instruments and other securities, net account (including four "sub-accounts") and the company's "management fees" account. PART 2 will also discuss AGNC's projected net income and earnings per share ('EPS') amounts. PART 3 of this article will discuss AGNC's projected OCI/(OCL) and comprehensive income (loss) accounts. PART 3 will also summarize AGNC's entire statement of comprehensive income and the major points throughout PARTS 1, 2, and 3 of the article. This will be followed by a detailed projection of AGNC's BV as of 12/31/2013 which will be available to readers prior to the company's earnings press release for the fourth quarter of 2013 (early February).

Disclosure: I am long AGNC, MTGE. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source: American Capital Agency's Upcoming Q4 2013 Income Statement Projection (Part 1)