Angel Oak Mortgage REIT, Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results

ATLANTA--(BUSINESS WIRE)--March 04, 2025-- 

Angel Oak Mortgage REIT, Inc. $(AOMR)$ (the "Company," "we," and "our"), a leading real estate finance company focused on acquiring and investing in first lien non-QM loans and other mortgage-related assets in the U.S. mortgage market, today reported financial results for the quarter and year ended December 31, 2024.

Fourth Quarter 2024 Highlights

   -- 
 Q4 2024 net interest income of $9.9 million demonstrates an increase of 
      20% versus Q4 2023 net interest income of $8.2 million. 
 
 
   -- 
 Q4 2024 GAAP net loss of $(15.1) million, or $(0.65) per diluted share 
      of common stock. 
 
 
   -- 
 Q4 2024 Distributable Earnings of $9.9 million, or $0.42 per diluted 
      share of common stock. 
 
 
   -- 
 Declared dividend of $0.32 per share of common stock, paid on February 
      28, 2025. 
 

Fiscal Year 2024 Highlights

   -- 
 FY 2024 net interest income of $36.9 million demonstrates an increase 
      of 28% versus FY 2023 net interest income of $28.9 million. 
 
 
   -- 
 FY 2024 GAAP net income of $28.8 million, or $1.17 per diluted share of 
      common stock. 
 
 
   -- 
 FY 2024 Distributable Earnings of $7.0 million, or $0.28 per diluted 
      share of common stock. 
 
 
   -- 
 GAAP book value of $10.17 per share of common stock as of December 31, 
      2024. 
 
 
   -- 
 Economic book value of $13.10 per share of common stock as of December 
      31, 2024. 
 

Sreeni Prabhu, Chief Executive Officer and President of Angel Oak Mortgage REIT, Inc., said, "AOMR's growth in 2024 proves the strength and reliability of our distinctive operating model as well as that of the broader Angel Oak ecosystem. Net interest income increased consistently throughout the year, driven by efficient capital deployment into high-quality mortgage loans and methodical securitization activity, the latter of which exceeded our guidance of one securitization per quarter. Our net interest income growth was complemented by the maintenance of 2023's operating expense reductions, which decreased by 10% versus the prior year when excluding securitization expenses. Additionally, our senior unsecured notes issuance in July 2024 achieved earnings accretion within one quarter of issuance." He continued, "Looking to 2025, we expect continued growth in net interest margin and maintenance of reduced operating expense, supported by opportunistic capital markets participation. As always, we will remain committed to creating long-term shareholder value through disciplined risk management, securitization execution, and strategic capital deployment."

Fiscal Year Portfolio and Investment Activity

   -- 
 In 2024, the Company participated in five securitization transactions, 
      contributing a total of $855 million in scheduled unpaid principal 
      balance of loans. In the fourth quarter of 2024, the Company executed the 
      AOMT 2024-10 securitization to which it was the sole contributor of loans 
      with a scheduled unpaid principal balance of approximately $316.8 million 
      and a 7.79% weighted average coupon. Additionally in the fourth quarter 
      of 2024, the Company contributed loans with a scheduled unpaid principal 
      balance of $167.2 million to AOMT 2024-13. AOMR participated in AOMT 
      2024-13 alongside other Angel Oak entities. In total, $288.9 million in 
      scheduled unpaid principal balance of loans with a weighted average 
      coupon of 7.37% were contributed to AOMT 2024-13 as of deal date. 
 
 
   -- 
 The Company purchased $683.7 million of newly-originated, market coupon 
      non-QM residential mortgage loans in 2024 with a weighted average coupon 
      of 7.64%, weighted average loan-to-value ratio of 70.2% and weighted 
      average credit score of 749. 
 
 
   -- 
 As of December 31, 2024, the weighted average coupon of our residential 
      whole loans portfolio was 7.39%, marking a 61 basis point increase 
      compared to December 31, 2023. 
 

Capital Markets Activity

   -- 
 As of December 31, 2024, the Company was a party to three loan 
      financing lines which permit borrowings in an aggregate amount of up to 
      $1.1 billion, of which approximately $129 million is drawn, leaving 
      capacity of approximately $921 million for new loan purchases. 
 

Balance Sheet

   -- 
 Target assets totaled $2.2 billion as of December 31, 2024. 
 
 
   -- 
 The Company held residential mortgage whole loans with fair value of 
      $183.1 million as of December 31, 2024. 
 
 
   -- 
 As of December 31, 2024, the Company's recourse debt to equity ratio 
      was approximately 1.0x. 
 
          -- 
 Our recourse debt to equity ratio is expected to remain below 
             2.5x going forward. 
 
 
 

Dividend

On February 6, 2025, the Company declared a dividend of $0.32 per share of common stock, paid on February 28, 2025.

Conference Call and Webcast Information

The Company will host a live conference call and webcast today, March 4, 2025 at 8:30 a.m. Eastern time. To listen to the live webcast, go to the Investors section of the Company's website at www.angeloakreit.com at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software.

To Participate in the Telephone Conference Call:

Dial in at least 15 minutes prior to start time.

Domestic: 1-844-826-3033

International: 1-412-317-5185

Conference Call Playback:

Domestic: 1-844-512-2921

International: 1-412-317-6671

Pass code: 10195829

The playback can be accessed through March 18, 2025.

Non-GAAP Metrics

Distributable Earnings is a non--GAAP measure and is defined as net income (loss) allocable to common stockholders as calculated in accordance with generally accepted accounting principles in the United States of America ("GAAP"), excluding (1) unrealized gains and losses on our aggregate portfolio, (2) impairment losses, (3) extinguishment of debt, (4) non-cash equity compensation expense, (5) the incentive fee earned by Falcons I, LLC, our external manager (our "Manager"), (6) realized gains or losses on swap terminations and (7) certain other nonrecurring gains or losses. We believe that the presentation of Distributable Earnings provides investors with a useful measure to facilitate comparisons of financial performance among our real estate investment trust ("REIT") peers, but has important limitations. We believe Distributable Earnings as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings may not be comparable to similar measures presented by other REITs.

Distributable Earnings Return on Average Equity is a non-GAAP measure and is defined as annual or annualized Distributable Earnings divided by average total stockholders' equity. We believe that the presentation of Distributable Earnings Return on Average Equity provides investors with a useful measure to facilitate comparisons of financial performance among our REIT peers, but has important limitations. Additionally, we believe Distributable Earnings Return on Average Equity provides investors with additional detail on the Distributable Earnings generated by our invested equity capital. We believe Distributable Earnings Return on Average Equity as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings Return on Average Equity should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings Return on Average Equity may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings Return on Average Equity may not be comparable to similar measures presented by other REITs.

Economic book value is a non-GAAP financial measure of our financial position. To calculate our economic book value, the portions of our non-recourse financing obligation held at amortized cost are adjusted to fair value. These adjustments are also reflected in our end of period total stockholders' equity. Management considers economic book value to provide investors with a useful supplemental measure to evaluate our financial position as it reflects the impact of fair value changes for our legally held retained bonds, irrespective of the accounting model applied for GAAP reporting purposes. Economic book value does not represent and should not be considered as a substitute for book value per share of common stock or stockholders' equity, as determined in accordance with GAAP, and our calculation of this measure may not be comparable to similarly titled measures reported by other companies.

Forward-Looking Statements

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March 04, 2025 07:00 ET (12:00 GMT)