Invesco Mortgage Capital Inc. (NYSE: IVR) (the "Company") today announced financial results for the quarter ended March 31, 2023.

Net income per common share of $0.39 compared to $0.84 in Q4 2022
Earnings available for distribution per common share(1) of $1.50 compared to $1.46 in Q4 2022
Common stock dividend of $0.40 per common share compared to $0.65 in Q4 2022
Book value per common share(2) of $12.61 compared to $12.79 at Q4 2022
Economic return(3) of 1.7% compared to 5.0% in Q4 2022
Update from John Anzalone, Chief Executive Officer

"The volatile environment for Agency residential mortgage-backed securities ("Agency RMBS") continued during the first quarter of 2023. Strong performance in January was more than offset by sharp underperformance in February and March amidst the slowing disinflationary trend in economic data and turmoil in the regional banking sector. Against this backdrop, our book value per common share ended the quarter at $12.61, representing a modest decline of 1.4% from year end, and when combined with our $0.40 common dividend produced an economic return of 1.7% for the quarter.

"Earnings available for distribution ("EAD") for the first quarter remained strong at $1.50 per common share. EAD is well supported and is expected to continue to benefit from our hedging strategy, as borrowing costs are hedged by low-cost, pay-fixed swaps with a weighted average maturity of over seven years.

"As noted in our March 27th press release, we reduced our first quarter dividend to $0.40 per share. The reduced dividend remains attractive and allows the Company to retain capital and enhance book value by continuing to invest in Agency RMBS. We believe Agency RMBS are at historically attractive valuations and reduced demand from the Federal Reserve and commercial banks will provide compelling opportunities for new investments. In addition, we expect that the conclusion of the Federal Reserve's tightening cycle will result in a reduction in interest rate volatility, providing a tailwind for our target assets.

"Given our improved outlook for Agency RMBS, we increased our debt-to-equity ratio to 5.8x as of March 31, 2023 from 5.3x at year end. As of the end of the quarter, substantially all of our $5.4 billion investment portfolio was invested in Agency RMBS, and we maintained a sizeable balance of unrestricted cash and unencumbered investments totaling $463.9 million."