Invesco Mortgage Capital Inc. February 2026 Dividend Announcement and January 31, 2026 Financial Update

Invesco Mortgage Capital Inc. (NYSE: IVR) (the "Company") today announced that the Company declared a cash dividend of $0.12 per share of common stock for the month of February 2026. The dividend will be paid on March 13, 2026 to stockholders of record at the close of business on February 24, 2026, with an ex-dividend date of February 24, 2026. Financial Highlights as of January 31, 2026 Total investment portfolio including TBAs of $7.1 billion Unrestricted cash and unencumbered investments of $510.7 million Total repurchase agreement borrowings of $5.4 billion Estimated book value per common share(1) of $8.91 Debt-to-equity ratio of 6.1x and economic debt-to-equity ratio(2) of 7.1x (1) Estimated book value per common share as of January 31, 2026 is calculated as total stockholders' equity less the liquidation preference of the Company's Series C Preferred Stock ($170.5 million), divided by total common shares outstanding of 80.7 million. (2) Economic debt-to-equity ratio is a non-GAAP financial measure and is calculated as the ratio of total repurchase agreements and TBAs at implied cost basis ($963.7 million as of January 31, 2026) to total stockholders' equity. Refer to the section titled 'Economic Debt-to-Equity Ratio' below for additional information. The Company is providing certain preliminary, unaudited month-end financial data as of January 31, 2026 including updates on the Company's book value, portfolio activity, leverage and liquidity. The information in this press release has been prepared by, and is the responsibility of, the Company's management. The Company's independent auditors have not audited, reviewed, examined, compiled nor applied agreed-upon procedures with respect to this information and, accordingly, they do not express an opinion or provide any form of assurance on the figures presented. The preliminary metrics and estimates included in this press release are based on information that the Company believes to be reliable as of today's date and reflect management's judgment at this stage of the month-end closing process. This month-end update should not be viewed as a substitute for financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and is not necessarily indicative of results to be achieved in any future period. Additional items may be identified as part of the ongoing month-end and quarter-end closing processes, and such items could result in material revisions to the data presented in this press release. Accordingly, readers should not place undue reliance on the preliminary figures contained in this press release. The Company undertakes no obligation to update or revise the information contained herein, whether as a result of new information, subsequent events, or otherwise. Portfolio Composition The following table summarizes certain characteristics of the Company's investment portfolio as of January 31, 2026. As of January 31, 2026 $ in thousands Fair Value Percentage Period-end Weighted Average Yield Agency RMBS: 30 year fixed-rate pass-through coupon: 4.5 % 781,889 11.0 % 4.89 % 5.0 % 1,477,148 20.8 % 5.20 % 5.5 % 1,640,590 23.2 % 5.50 % 6.0 % 1,256,630 17.7 % 5.93 % Total 30 year fixed-rate pass-through 5,156,257 72.7 % 5.43 % Agency CMO 68,548 1.0 % 8.88 % Agency CMBS 900,253 12.7 % 4.62 % Total MBS portfolio 6,125,058 86.4 % 5.34 % TBAs, at implied market value(1) 963,739 13.6 % Total investment portfolio including TBAs 7,088,797 100.0 % (1) The presentation of TBAs in the table above represents management's view of the investment portfolio and does not reflect how the Company records TBAs on its balance sheet under U.S. GAAP. Under U.S. GAAP, the Company records TBAs that it does not intend to physically settle on the contractual settlement date as derivative financial instruments. The Company values TBAs on its balance sheet at net carrying value, which represents the difference between implied fair market value and implied cost basis of the TBAs. The following table summarizes certain characteristics of the Company's borrowings as of January 31, 2026. $ in thousands As of January 31, 2026 Amount Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity (days) Repurchase agreements - Agency MBS 5,404,619 3.83 % 23 The following table summarizes certain characteristics of the Company's interest rate swaps whereby the Company pays fixed interest rates and receives floating interest rates based upon the secured overnight financing rate as of January 31, 2026. $ in thousands As of January 31, 2026 Maturities Notional Amount Weighted Average Fixed Pay Rate Weighted Average Floating Receive Rate Weighted Average Years to Maturity Less than 3 years 1,575,000 0.70 % 3.68 % 1.6 3 to 5 years 1,150,000 1.05 % 3.68 % 4.2 5 to 7 years 335,000 3.63 % 3.68 % 7.0 7 to 10 years 755,000 3.92 % 3.68 % 8.8 Greater than 10 years 410,000 1.83 % 3.68 % 17.8 Total 4,225,000 1.71 % 3.68 % 5.6 The following table summarizes certain characteristics of the Company's U.S. Treasury futures contracts as of January 31, 2026. As of January 31, 2026 $ in thousands Notional Amount - Short 10 year U.S. Treasury futures 420,000 Ultra 10 year U.S. Treasury futures 205,000 30 year U.S. Treasury futures 375,000 Total 1,000,000 Economic Debt-to-Equity Ratio The Company presents an economic debt-to-equity ratio, a non-GAAP financial measure of leverage that considers the impact of the off-balance sheet financing of its investments in TBAs that are accounted for as derivative instruments under U.S. GAAP. The Company includes these types of TBAs at implied cost basis in its measure of leverage because a forward contract to acquire Agency RMBS in the TBA market carries similar risks to Agency RMBS purchased in the cash market and funded with on-balance sheet liabilities. Similarly, a contract for the forward sale of Agency RMBS has substantially the same effect as selling the underlying Agency RMBS and reducing the Company's on-balance sheet funding commitments. The Company believes that presenting its economic debt-to-equity ratio, when considered together with its U.S. GAAP financial measure of debt-to-equity ratio, provides information that is useful to investors in understanding how management evaluates at-risk leverage and gives investors a comparable statistic to those of other mortgage real estate investment trusts who also invest in TBAs and present a similar non-GAAP measure of leverage.... Read more

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