American Capital Mortgage Investment Corp. Reports $1.40 Net Income Per Share And $25.74 Net Book Value Per Share

American Capital Mortgage Investment Corp. Reports $1.40 Net Income Per Share
                     And $25.74 Net Book Value Per Share

PR Newswire

BETHESDA, Md., Feb. 8, 2013

BETHESDA, Md., Feb. 8, 2013 /PRNewswire/ --American Capital Mortgage
Investment Corp. ("MTGE" or the "Company") (Nasdaq: MTGE) today reported net
income for the quarter ended December 31, 2012 of $50.4 million, or $1.40 per
share, and net book value of $25.74 per share. For the full year, the Company
reported a 41% economic return, comprised of $3.60 per share in dividends and
a $4.87 per share increase in net book value.

FOURTH QUARTER 2012 FINANCIAL HIGHLIGHTS

  o23% annualized economic return

       oComprised of $0.90 per share dividend and $0.53 per share increase in
         net book value

  o$1.40 per share of net income
  o$0.84 per share of net spread income

       oExcludes $0.56 per share of other investment related net gains, net
         of tax
       o$0.78 per share, excluding approximately $0.06 per share of
         "catch-up" premium amortization benefit due to a change in constant
         prepayment rate ("CPR") projections

  o$1.53 per share of estimated taxable income
  o$0.90 per share dividend declared on December 14, 2012
  o$1.17 per share of undistributed estimated taxable income as of
    December31, 2012

       oIncreased $0.63 per share from $0.54 per share as of September 30,
         2012

  o$25.74 per share net book value as of December31, 2012

       oIncreased $0.53 per share from $25.21 per share as of September 30,
         2012
       oIncludes $0.02 per share increase related to share repurchases

ADDITIONAL FOURTH QUARTER 2012 HIGHLIGHTS

  o$7.0 billion investment portfolio fair value as of December31, 2012

       o$6,367 million agency investments
       o$681 million non-agency investments

  o6.7x leverage as of December31, 2012

       o6.4x average leverage for the quarter

  o6.5% agency portfolio actual CPR for the quarter

       o6.3% agency portfolio actual CPR for the month of December 2012
       o9.3% average projected life CPR for agency securities as of
         December31, 2012

  o2.07% annualized quarterly net interest rate spread

       o1.88% net interest rate spread as of December31, 2012

  o0.3 million shares of common stock repurchased during the quarter

       o$22.76 per share average net repurchase price

2012 FULL YEAR FINANCIAL HIGHLIGHTS

  o41% annual economic return

       oComprised of $3.60 per share in dividends and a $4.87 per share
         increase in net book value

  o$8.90 per share of net income
  o$3.24 per share of net spread income

       oExcludes $5.66 per share of other investment related net gains, net
         of tax

  o$5.21 per share of estimated taxable income

       oUndistributed estimated taxable income of $1.17 as of December31,
         2012, up $0.93 per share from $0.24 per share as of December31, 2011

  o$3.60 per share dividends declared
  o$25.74 per share net book value as of December31, 2012

       oIncreased $4.87 per share from $20.87 per share as of December31,
         2011

"Having completed our first full year as a public company, we are pleased to
have delivered a 41% Economic Return to our shareholders," commented Malon
Wilkus, Chairman and Chief Executive Officer, American Capital Mortgage. "We
prepared for the possibility of QE3 and positioned the portfolio
appropriately, allocating more capital to assets less affected by QE3, with
more upside to a potential housing recovery."

"We feel good about American Capital Mortgage's 2012 results as we were able
to generate $8.47 per share of value for our shareholders through the
combination of both dividends and book value growth," said Gary Kain,
President and Chief Investment Officer. "As importantly, we accomplished this
while maintaining a conservative approach to asset selection, hedging, and use
of leverage on the non-agency side of the portfolio. During the fourth quarter
of 2012, we produced $1.43 per share of economic return despite the weakness
in agency MBS during the quarter, and we grew our estimated undistributed
taxable income to $1.17 per share, or $41.9 million at year end. Additionally,
our balanced portfolio should allow us to continue to generate attractive
returns across a range of different market conditions and also take advantage
of favorable financing opportunities on the agency side of the business."

INVESTMENT PORTFOLIO

As of December31, 2012, the Company's investment portfolio totaled $7.0
billion of agency and non-agency securities, at fair value, comprised of $6.4
billion of fixed-rate agency securities and $681.4 million of non-agency
securities. As of December31, 2012, the Company's investment portfolio was
comprised of 31% 15-year fixed-rate agency securities, 2% 20-year fixed-rate
agency securities, 57% 30-year fixed-rate agency securities and 10% non-agency
securities.

AGENCY CONSTANT PREPAYMENT RATES

The actual CPR for the Company's agency portfolio during the fourth quarter of
2012 was 6.5%, compared to 6.7% during the third quarter of 2012. The CPR
published in January 2013 for the Company's agency portfolio held as of
December31, 2012 was 6.3%, and the weighted average projected CPR for the
remaining life of the Company's agency investments held as of December31,
2012 was 9.3%.

The Company amortizes and accretes premiums and discounts associated with
purchases of agency securities into interest income over the estimated life of
such securities based on actual and projected CPRs using the effective yield
method. The amortization of premiums (net of any accretion of discounts) on
the agency portfolio for the quarter was $9.1 million, or $0.25 per share.
The weighted average cost basis of the agency portfolio was 105.5% and the
unamortized agency net premium was $325.1 million as of December31, 2012. As
such, before considering any impact of hedging, slower actual and projected
prepayments can have a meaningful positive impact, while faster actual or
projected prepayments can have a meaningful negative impact on the Company's
agency asset yields.

NON-AGENCY DISCOUNT ACCRETION

The weighted average cost basis of the non-agency portfolio was 59% of par as
of both December 31, 2012 and September 30, 2012. Discount accretion was $5.8
million and $4.1 million for the three months ended December 31, 2012 and
September 30, 2012, respectively. The total net discount remaining was $429.2
million and $361.1 million as of December 31, 2012 and September 30, 2012,
respectively, with $300.4 million and $256.1 million designated as credit
reserves as of December31, 2012 and September 30, 2012.

ASSET YIELDS, COST OF FUNDS AND NET INTEREST RATE SPREAD

As of December31, 2012, the Company's weighted average net interest rate
spread was 1.88%, which was down 2 bps from 1.90% as of September 30, 2012.
As of December31, 2012, the weighted average yield on the Company's interest
earning assets was 2.91%, up 11 bps from 2.80% as of September 30, 2012,
while weighted average cost of funds was 1.03%, up 13 bps from 0.90% as of
September 30, 2012.

During the quarter ended December31, 2012, the annualized weighted average
yield on the Company's investments was 3.08% and its annualized weighted
average cost of funds was 1.01%, ^ resulting in a weighted average net
interest rate spread of 2.07%. This fourth quarter weighted average net
interest spread increased 27 bps from the 1.80% average net interest spread
during the third quarter, as a 32 bps increase in average assets yields was
partially offset by a 5 bps increase in average cost of funds.

LEVERAGE AND HEDGING ACTIVITIES

As of December31, 2012, the Company had repurchase agreements outstanding of
$6.2 billion, resulting in a leverage ratio of 6.7x. Average leverage during
the quarter of 6.4x is calculated as the daily weighted average repurchase
agreement balance outstanding divided by the average month-ended shareholders'
equity for the period.

The $6.2 billion borrowed under repurchase agreements as of December31, 2012
had original maturities consisting of:

  o$0.2 billion of one month or less;
  o$1.4 billion between one and two months;
  o$1.7 billion between two and three months;
  o$2.3 billion between three and six months; and
  o$0.6 billion greater than six months.

The Company decreased the weighted average original maturity of its repurchase
agreements to 87 days as of December31, 2012, from 101 days as of September
30, 2012. As of December31, 2012, the Company's repurchase agreements had a
weighted average remaining days to maturity of 50 days, a decrease from 60
days as of September 30, 2012.

As of December31, 2012, the Company had repurchase agreements with 29
financial institutions and less than 8% of the Company's equity at risk was
with any one counterparty, with the top five counterparties representing less
than 26% of the Company's equity at risk.

The Company's interest rate swap positions as of December31, 2012 totaled
$2.9 billion in notional amount (including $50 million of forward starting
swaps commencing April 2013) at a weighted average fixed pay rate of 1.33%, a
weighted average receive rate of 0.32% and a weighted average maturity of 5.5
years. The Company enters into interest rate swaps with longer maturities
with the intention of protecting its net book value and longer term earnings
potential.

The Company also utilizes interest rate swaptions to mitigate the Company's
exposure to changes in interest rates. As of December31, 2012, the Company
held payer swaption contracts with a total notional amount of $1.2 billion and
a weighted average expiration of 2.4 years. These swaptions have an
underlying weighted average interest rate swap term of 7.9 years, with a
weighted average pay rate of 3.12%.

In addition to interest rate swaps and swaptions, the Company held net short
positions in U.S. Treasury securities with a face amount of $0.4 billion and a
net short position in "to-be-announced" mortgage securities ("TBA's") with a
face amount of $0.5 billion as of December31, 2012.

As of December31, 2012, 80% of the Company's repurchase agreement balance was
hedged through interest rate swaps, interest rate swaptions, and net short
positions in U.S. Treasury securities and TBA's.

OTHER GAINS (LOSSES), NET

The Company has elected to record all investments at fair value with all
changes in fair value recorded in current GAAP earnings as other gains
(losses). In addition, the Company has not designated any derivatives as
hedges for GAAP accounting purposes and therefore all changes in the fair
value of derivatives are recorded in current GAAP earnings as other gains
(losses).

During the fourth quarter, the Company recorded $14.2 million in other gains,
net, or $0.39 per share. Other gains, net, for the quarter are comprised of:

  o$27.0 million of net realized gain on agency securities;
  o$0.8 million of net realized gain on non-agency securities;
  o$(41.5) million of net unrealized loss on agency securities;
  o$29.8 million of net unrealized gain on non-agency securities;
  o$(6.7) million in realized loss on periodic settlements of interest rate
    swaps;
  o$(0.8) million of net realized loss on other derivatives and securities;
    and
  o$5.6 million of net unrealized gain on other derivatives and securities.

Realized and unrealized gains and losses on other derivatives and securities
include the Company's interest rate swaps and swaptions and short or long
positions in TBA's and treasury securities, which the Company uses to help
manage its risk position.

ESTIMATED TAXABLE INCOME

Taxable income for the quarter is estimated at $1.53 per share. The primary
differences between tax and GAAP net income are (i) unrealized gains and
losses associated with investment and derivative portfolios marked-to-market
in current income for GAAP purposes but excluded from taxable income until
realized or settled, (ii) temporary differences related to amortization of net
premiums paid on investments and (iii) timing differences in the recognition
of certain realized gains and losses.

NET BOOK VALUE

As of December31, 2012, the Company's net book value per share was $25.74, or
$0.53 per share higher than the net book value per share of $25.21 as of
September 30, 2012. During November 2012, the Company repurchased 0.3 million
shares of common stock at an average net repurchase price of $22.76 per
share. These share repurchases at prices below net book value resulted in a
$0.02 per share accretion in net book value.

FOURTH QUARTER 2012 DIVIDEND DECLARATION

On December 14, 2012, the Board of Directors of the Company declared a fourth
quarter dividend of $0.90 per share paid on January 28, 2013, to common
stockholders of record as of December 27, 2012. Since the August 2011 initial
public offering, the Company has declared and paid a total of $116.7 million
in dividends, or $4.60 per share.

After adjusting for the accrued dividend, the Company had approximately $41.9
million, or $1.17 per share, of undistributed estimated taxable income as of
December31, 2012.

The Company also announced the tax characteristics of its 2012 dividends. The
Company's 2012 common stock dividend of $3.60 per share consisted of 100%
ordinary income for federal income tax purposes. Stockholders should receive
an IRS Form 1099-DIV containing this information from their brokers, transfer
agents or other institutions. For additional detail please visit the Company's
website at www.MTGE.com.

FINANCIAL STATEMENTS, OPERATING PERFORMANCE AND PORTFOLIO STATISTICS

The following tables include certain measures of operating performance, such
as net spread income and estimated taxable income, which are non-GAAP
financial measures. Please refer to "Use of Non-GAAP Financial Information"
later in this release for further discussion of non-GAAP measures.



AMERICAN CAPITAL MORTGAGE INVESTMENT CORP.
CONSOLIDATED BALANCE SHEETS
(in thousands)
                            December     September    June         March        December

                            31, 2012     30, 2012     30, 2012     31, 2012     31, 2011
                            (unaudited)  (unaudited)  (unaudited)  (unaudited)  (audited)
Assets:
 Agency securities, at
fair value (including

 pledged securities of    $          $          $          $         $    
$6,276,993,                 6,367,042    6,337,238   5,778,210    3,844,747    
 $6,183,812, $5,121,987,                                                      1,740,091
$3,652,873 and
 $1,535,388
respectively)
 Non-agency securities,
at fair value
 (including pledged
securities of $545,665,     681,403      552,787      337,645      128,941      25,561
 $352,840, $250,936,
$79,202 and $8,626
 respectively)
 Linked transactions, at  —            —            —            16,241       13,671
fair value
 Cash and cash            157,314      156,269      153,969      79,161       57,428
equivalents
 Restricted cash          28,493       15,756       20,437       21,187       3,159
 Interest receivable      18,265       17,792       16,635       11,103       5,566
 Derivative assets, at    23,043       15,030       4,848        6,178        1,845
fair value
 Receivable for           —            106,606      434,824      73,251       271,849
securities sold
 Receivable under
reverse repurchase          418,888      344,075      281,475      122,994      50,563

 agreements
 Other assets             1,692        746          557          486          589
                            $          $          $          $         $    
Total assets                7,696,140    7,546,299   7,028,600    4,304,289    
                                                                                2,170,322
Liabilities:
                            $          $          $          $         $    
 Repurchase agreements    6,245,791    6,117,783   5,399,160    3,567,398    
                                                                                1,706,281
 Payable for securities   —            50,663       446,975      111,404      189,042
purchased
 Derivative liabilities,  63,726       76,437       64,655       12,266       5,669
at fair value
 Dividend payable         32,368       32,636       32,636       9,011        8,005
 Obligation to return
securities borrowed

 underreverse            421,077      347,367      280,956      121,889      50,154
repurchase agreements,

 at fair value
 Accounts payable and
other accrued              7,616        7,073        3,394        2,874        2,370

 liabilities
Total liabilities           6,770,578    6,631,959    6,227,776    3,824,842    1,961,521
Stockholders' equity:
 Preferred stock, $0.01
par value; 50,000

 sharesauthorized, 0     —            —            —            —            —
shares issued and


outstanding,respectively
 Common stock, $0.01 par
value; 300,000

 sharesauthorized,
35,964, 36,262, 36,262
                            360          363          363          220          100
 22,012 and
10,006issued and
outstanding,

 respectively
 Additional paid-in       772,008      778,804      778,896      457,255      199,038
capital
 Retained earnings        153,194      135,173      21,565       21,972       9,663
Total stockholders' equity  925,562      914,340      800,824      479,447      208,801
Total liabilities and                                                           $    
stockholders'               $          $          $          $          
                            7,696,140    7,546,299   7,028,600    4,304,289   2,170,322
equity
Net book value per common   $       $       $       $       $    
share                       25.74        25.21      22.08         21.78        
                                                                                 20.87





AMERICAN CAPITAL MORTGAGE INVESTMENT CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
                                                                  For the
                                                                  Period

                     For the Three Months                         from August
                                                                  9,
                     Ended December 31,          For the Year
                                                                  2011
                                                   Ended
                                                                  (date
                                                   December 31,   operations

                                                   2012           commenced)

                     2012           2011                          through

                                                                  December 31,
                                                                  2011
                     (unaudited)    (unaudited)    (unaudited)    (audited)
Interest income:
                                    $          $        $     
Agency securities    $   39,144  11,793        122,082          
                                                                  15,832
Non-agency           10,511         468            23,029         533
securities
Other                113            25             309            49
Interest expense    (8,288)        (1,354)        (22,067)       (1,737)
Net interest income  41,480         10,932         123,353        14,677
Other gains
(losses), net:
Realized gain on
agency securities,   26,977         1,045          73,610         3,437
net
Realized gain on
non-agency           828            —              1,780          —
securities, net
Realized loss on
periodic
settlements of       (6,747)        (1,166)        (18,458)       (1,743)

interest rate
swaps, net
Realized loss on
other derivatives    (791)          (514)          (46,748)       (3,856)
and securities, net
Unrealized gain
(loss) on agency     (41,538)       11,847         123,456        13,817
securities, net
Unrealized gain
(loss) on            29,804         232            64,310         (433)
non-agency
securities, net
Unrealized gain
(loss) and net
interest income on   —              (155)          3,384          (1,050)

linked
transactions, net
Unrealized gain
(loss) on other
derivatives and      5,631          (3,224)        (58,669)       (2,405)

securities, net
Total other gains,   14,164         8,065          142,665        7,767
net
Expenses:
Management fees      3,005          757            9,638          1,188
General and
administrative       1,509          1,005          5,018          1,555
expenses
Total expenses       4,514          1,762          14,656         2,743
Income before        51,130         17,235         251,362        19,701
excise tax
Excise tax          741            32             1,182          32
                                    $          $        $     
Net income           $   50,389  17,203        250,180          
                                                                  19,669
Net income per      $          $        $        $     
common share -       1.40          1.72             8.90         
basic and diluted                                                 1.97
Weighted average
number of common
shares               36,105         10,006         28,100         10,006

outstanding - basic
and diluted
Dividends declared   $          $        $        $     
per common share     0.90          0.80             3.60         
                                                                  1.00





AMERICAN CAPITAL MORTGAGE INVESTMENT CORP.
RECONCILIATIONS OF GAAP NET INTEREST INCOME TO NET SPREAD INCOME
(in thousands, except per share data)
(unaudited)
                                                                     For the
                     For the Three Months Ended                      Year

                                                                     Ended

                     December     September    June       March      December
                                                                     31,
                     31, 2012     30, 2012     30, 2012   31, 2012
                                                                     2012
Interest income:
Agency securities    $       $       $        $        $    
                     39,144        37,311     30,321    15,306    122,082
Non-agency
securities and       10,624       7,044        4,374      1,296      23,338
other
Interest expense     (8,288)      (7,329)      (4,786)    (1,664)    (22,067)
Net interest income  41,480       37,026       29,909     14,938     123,353
Net interest income
on non-agency
securities           —            —            —          708        708

underlying Linked
Transactions
Realized loss on
periodic
settlements of       (6,747)      (6,855)      (3,815)    (1,041)    (18,458)
interest

rate swaps, net
Adjusted net         34,733       30,171       26,094     14,605     105,603
interest income
Operating expenses   (4,514)      (4,360)      (3,665)    (2,117)    (14,656)
Net spread income    $       $       $        $        $    
                     30,219        25,811     22,429    12,488     90,947
Weighted average
number of common
shares               36,105       36,262       28,129     11,724     28,100

outstanding - basic
and diluted
Net spread income                                                    $    
per common share –   $       $       $      $        
                       0.84        0.71   0.80      1.07      3.24
basic and diluted





AMERICAN CAPITAL MORTGAGE INVESTMENT CORP.
RECONCILIATIONS OF GAAP NET INCOME TO ESTIMATED TAXABLE INCOME
(in thousands, except per share data)
(unaudited)
                                                                   For the
                    For the Three Months Ended                     Year

                                                                   Ended

                    December     September    June       March     December
                                                                   31,
                    31, 2012     30, 2012     30, 2012   31, 2012
                                                                   2012
Net income          $       $       $        $       $   
                      50,389   146,242      32,229    21,320   250,180
Estimated book to
tax differences:
Unrealized (gains)
and losses, net
Agency securities   41,538       (95,477)     (65,511)   (4,006)   (123,456)
Non-agency          (29,804)     (33,118)     1,023      (2,411)   (64,310)
securities
Non-agency
securities
underlying Linked   —            —            —          (2,676)   (2,676)

Transactions
Derivatives and     (5,631)      3,118        54,397     6,785     58,669
other securities
Premium             297          4,104        3,206      (265)     7,342
amortization, net
Realized (gains)    (2,404)      22,846       (441)      (486)     19,515
losses
Excise tax and      750          373          19         24        1,166
other
Total book to tax   4,746        (98,154)     (7,307)    (3,035)   (103,750)
difference
Estimated taxable   $       $       $        $       $   
income                55,135    48,088     24,922    18,285   146,430
Weighted average
number of common
shares              36,105       36,262       28,129     11,724    28,100

outstanding -
basic and diluted
Net estimated
taxable income per  $       $       $      $      $     
common share –                  1.33   0.89       1.56    5.21
                    1.53
basic and diluted





AMERICAN CAPITAL MORTGAGE INVESTMENT CORP.
KEY PORTFOLIO STATISTICS*
(in thousands, except per share data)
(unaudited)
                     For the Three Months Ended
                     December 31,  September 30,  June 30,       March 31,
                                                  2012
                     2012          2012                          2012
Ending agency        $           $            $            $   
securities, at fair  6,367,042     6,337,238     5,778,210     3,844,747
value
Ending agency        $           $            $            $   
securities, at cost  6,229,770     6,158,427     5,694,876     3,826,924
Ending agency        $           $            $            $   
securities, at par   5,904,666     5,856,319     5,435,087     3,674,668
Average agency       $           $            $            $   
securities, at cost  5,841,326     6,011,801     4,475,694     1,967,996
Average agency       $           $            $            $   
securities, at par   5,542,727     5,726,255     4,286,028     1,872,616
Ending non-agency    $          $          $          $     
securities, at fair  681,403      552,787        337,645        180,786
value ^(1)
Ending non-agency    $          $          $          $     
securities, at cost  616,707      517,896        335,872        177,992
^(1)
Ending non-agency    $           $          $          $     
securities, at par   1,045,891     879,042        559,468        286,229
^(1)
Average non-agency   $          $          $          $     
securities, at cost  605,956      399,704        235,875        107,491
^(1)
Average non-agency   $           $          $          $     
securities, at par   1,026,030     664,628        386,021        182,900
^(1)
Average total        $           $            $            $   
assets, at fair      7,334,654     7,527,346     5,196,997     2,269,192
value
Average repurchase   $           $            $            $   
agreements ^(1)      5,894,642     5,834,747     4,211,603     1,894,945
Average              $          $          $          $     
stockholders'        915,085      851,093        652,091        279,490
equity
Average coupon ^(2)  3.23%         3.32%          3.42%          3.64%
Average asset yield  3.08%         2.76%          2.94%          3.36%
^(2)
Average cost of      1.01%         0.96%          0.82%          0.61%
funds ^(3)
Average net
interest rate        2.07%         1.80%          2.12%          2.75%
spread
Average actual CPR
for agency           6.5%          6.7%           4.7%           5.7%
securities held
during the period
Average projected
life CPR for agency
securities as of     9.3%          12.7%          9.5%           7.3%

period end
Leverage (average
during the period)   6.4x          6.9x           6.5x           6.8x
^(4)
Leverage (as of      6.7x          6.6x           6.8x           7.6x
period end) ^(5)
Expenses % of
average total        0.2%          0.2%           0.3%           0.4%
assets
Expenses % of
average              2.0%          2.0%           2.3%           3.0%
stockholders'
equity
Net book value per   $        $        $        $      
common share as of   25.74        25.21          22.08           21.78
period end
Dividends declared   $        $        $        $      
per common share      0.90        0.90          0.90           0.90
Net return on
average              21.8%         68.2%          19.8%          30.6%
stockholders'
equity

*  Average numbers for the each period are weighted based on days on the
    Company's books and records. All percentages are annualized.
    If the Company purchases investment securities and finances the purchase
    with a repurchase agreement with the same counterparty that is entered
    into simultaneously or in contemplation of the purchase, the purchase
    commitment and repurchase agreement are recorded net for GAAP purposes on
(1) the financial statements as a derivative ("Linked Transaction"). As of
    December 31, 2012, September 30, 2012 and June 30, 2012, the Company had
    no Linked Transactions. Fair value of non-agency securities includes $52
    million of non-agency securities and $36 million of repurchase agreement
    financing recorded as Linked Transactions as of March 31, 2012.
(2) Weighted average coupon and asset yields include securities classified as
    Linked Transactions on the consolidated balance sheet.
    Weighted average cost of funds includes interest expense on repurchase
(3) agreements underlying Linked Transactions and periodic settlements of
    interest rate swaps.
    Leverage during the period was calculated by dividing the Company's daily
(4) weighted average repurchase agreements (including those related to Linked
    Transactions), for the period by the Company's average month-ended
    stockholders' equity for the period.
    Leverage at period end was calculated by dividing the sum of the amount
    outstanding under the Company's repurchase agreements, the amount
(5) outstanding under repurchase agreements recorded as Linked Transactions
    and the net receivable/payable for unsettled securities at period end by
    the Company's stockholders' equity at period end.

STOCKHOLDER CALL

MTGE invites shareholders, prospective shareholders and analysts to attend the
MTGE shareholder call on February 11, 2013 at 8:30 am ET. The call can be
accessed through a live webcast, free of charge, at www.MTGE.comor by dialing
(888) 317-6016 (U.S. domestic) or (412) 317-6016 (international). Please
advise the operator you are dialing in for the American Capital Mortgage
shareholder call. If you do not plan on asking a question on the call and
have access to the internet, please take advantage of the webcast.

A slide presentation will accompany the call and will be available at
www.MTGE.com.Select the Q4 2012 Earnings Presentation link to download and
print the presentation in advance of the shareholder call.

An archived audio of the shareholder call combined with the slide presentation
will be made available on the MTGE website after the call on February 11,
2013. In addition, there will be a phone recording available from 12:00 pm ET
February 11, 2013 until 9:00 am ET February 25, 2013. If you are interested in
hearing the recording of the presentation, please dial (877) 344-7529 (U.S.
domestic) or (412) 317-0088 (international). The conference number is
10024361.

For further information or questions, please contact our Investor Relations
Department at (301) 968-9220 or IR@MTGE.com.

ABOUT AMERICAN CAPITAL MORTGAGE INVESTMENT CORP.

American Capital Mortgage Investment Corp. is a real estate investment trust
("REIT") that invests in and manages a leveraged portfolio of agency mortgage
investments, non-agency mortgage investments and other mortgage-related
investments. The Company is externally managed and advised by American Capital
MTGE Management, LLC, an affiliate of American Capital, Ltd. ("American
Capital"). For further information please refer to www.MTGE.com. 

ABOUT AMERICAN CAPITAL

American Capital is a publicly traded private equity firm and global asset
manager. American Capital, both directly and through its asset management
business, originates, underwrites and manages investments in middle market
private equity, leveraged finance, real estate and structured products.
American Capital manages $18.6 billion of assets, including assets on its
balance sheet and fee earning assets under management by affiliated managers,
with $118 billion of total assets under management (including levered
assets). Through an affiliate, American Capital manages publicly traded
American Capital Agency Corp. (NASDAQ: AGNC) with approximately $10 billion
market capitalization and American Capital Mortgage Investment Corp. (NASDAQ:
MTGE) with approximately $850 million market capitalization. From its eight
offices in the U.S. and Europe, American Capital and its affiliate, European
Capital, will consider investment opportunities from $10 million to $750
million. For further information, please refer to www.AmericanCapital.com.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements. Forward-looking
statements are based on estimates, projections, beliefs and assumptions of
management of the Company at the time of such statements and are not
guarantees of future performance. Forward-looking statements involve risks
and uncertainties in predicting future results and conditions. Actual results
could differ materially from those projected in these forward-looking
statements due to a variety of factors, including, without limitation, changes
in interest rates, changes in the yield curve, changes in prepayment rates,
the availability and terms of financing, changes in the market value of our
assets, general economic conditions, market conditions, conditions in the
market for agency and non-agency securities and mortgage related investments,
and legislative and regulatory changes that could adversely affect the
business of the Company. Certain factors that could cause actual results to
differ materially from those contained in the forward-looking statements, are
included in the Company's periodic reports filed with the Securities and
Exchange Commission ("SEC"). Copies are available on the SEC's website,
www.sec.gov. The Company disclaims any obligation to update or revise any
forward-looking statements based on the occurrence of future events, the
receipt or new information, or otherwise.

USE OF NON-GAAP FINANCIAL INFORMATION

In addition to the results presented in accordance with GAAP, this release
includes certain non-GAAP financial information, including net spread income,
estimated taxable income and certain financial metrics derived from non-GAAP
information, such as estimated undistributed taxable income, which the
Company's management uses in its internal analysis of results, and believes
may be informative to investors.

GAAP interest income does not include interest earned on non-agency securities
underlying our Linked Transactions, and GAAP interest expense does not include
either interest related to repurchase agreements underlying our Linked
Transactions, or periodic settlements associated with undesignated interest
rate swaps. Interest income and expense related to Linked Transactions is
reported within unrealized loss and net interest income on linked
transactions, net and periodic interest settlements associated with
undesignated interest rate swaps are reported in realized gain (loss) on
periodic settlements of interest rate swaps on our consolidated statement of
operations. As we believe that these items are beneficial to the understanding
of our investment performance, we provide a non-GAAP measure called adjusted
net interest income, which is comprised of net interest income plus the net
interest income related to Linked Transactions, less net periodic settlements
of interest rates swaps. Additionally, we present net spread income as a
measure of our operating performance. Net spread income is comprised of
adjusted net interest income, less total operating expenses. Net spread
income excludes all unrealized gains or losses due to changes in fair value,
realized gains or losses on sales of securities, realized losses associated
with derivative instruments and income taxes.

Estimated taxable income is pre-tax income calculated in accordance with the
requirements of the Internal Revenue Code rather than GAAP. Estimated taxable
income differs from GAAP income because of both temporary and permanent
differences in income and expense recognition. Examples include (i) temporary
differences for unrealized gains and losses on derivative instruments and
investment securities recognized in current income for GAAP but excluded from
estimated taxable income until realized or settled, (ii) temporary differences
related to the amortization of premiums and discounts paid on investments, and
(iii) timing differences in the recognition of certain realized gains and
losses. Furthermore, taxable income can include certain estimated information
and is subject to potential adjustments up to the time of filing of the
appropriate tax returns, which occurs after the end of the calendar year of
the Company.

The Company believes that these non-GAAP financial measures provide
information useful to investors because net spread income is a financial
metric used by management and investors and estimated taxable income is
directly related to the amount of dividends the Company is required to
distribute in order to maintain its REIT tax qualification status.

The Company also believes that providing investors with our net spread income,
estimated taxable income and certain financial metrics derived from such
non-GAAP financial information, in addition to the related GAAP measures,
gives investors greater transparency to the information used by management in
its financial and operational decision-making. However, because net spread
income and estimated taxable income are incomplete measures of the Company's
financial performance and involve differences from net income computed in
accordance with GAAP, they should be considered as supplementary to, and not
as a substitute for, the Company's net income computed in accordance with GAAP
as a measure of the Company's financial performance. In addition, because not
all companies use identical calculations, our presentation of net spread
income and estimated taxable income may not be comparable to other
similarly-titled measures of other companies.

CONTACT:
Investors - (301) 968-9220
Media - (301) 968-9400

SOURCE American Capital Mortgage Investment Corp.

Website: http://www.mtge.com