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Angel Oak Mortgage REIT, Inc. Reports Second Quarter 2025 Financial Results

Angel Oak Mortgage REIT, Inc. (NYSE: 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 ended June 30, 2025.

Second Quarter 2025 and Year-to-Date Highlights

  • Q2 2025 GAAP net income of $0.8 million, or $0.03 per diluted share of common stock.
  • Q2 2025 net interest income of $9.9 million demonstrates an increase of 5.0% versus Q2 2024 net interest income of $9.5 million and a slight decrease of 1.5% compared to Q1 2025 net interest income of $10.1 million.
  • Net interest income of $20.0 million for the six months ended June 30, 2025, an increase of 11% compared to the six months ended June 30, 2024.
  • GAAP book value of $10.37 per share of common stock and economic book value of $12.97 per share of common stock as of June 30, 2025, decreases of 3.1% and 3.3%, respectively, from March 31, 2025.
  • Q2 2025 Distributable Earnings of $2.6 million, or $0.11 per diluted share of common stock.
  • Declared a dividend of $0.32 per share of common stock, which will be paid on August 29, 2025, to common stockholders of record as of August 22, 2025.

Sreeni Prabhu, Chief Executive Officer and President of Angel Oak Mortgage REIT, Inc., said "The second quarter of 2025 was an active one for AOMR, as we completed two securitizations in addition to issuing $42.5 million of senior unsecured notes in May. These transactions are designed to support our strategic goal of earnings growth through accretive capital markets participation and diligent capital deployment. We quickly deployed the capital from this quarter's senior unsecured notes issuance into high-quality, current market coupon non-QM loans and other target assets." He continued, "As such, we expect to resume our quarterly sequential net interest income growth in the next quarter, as demonstrated with 2024's senior unsecured notes issuance. As always, we will remain committed to growing long-term shareholder value through disciplined risk management, securitization execution, and strategic capital deployment.”

Portfolio and Investment Activity

  • In April 2025, the Company issued AOMT 2025-4, a $284.3 million scheduled unpaid principal balance securitization backed by a pool of residential mortgage loans. We issued AOMT 2025-4 as the sole participant in the securitization. We used the proceeds to repay outstanding debt of approximately $242.4 million, and the $24.7 million of cash released was used for new loan purchases and operational purposes.
  • In May 2025, we participated in AOMT 2025-6, an approximately $349.7 million scheduled unpaid principal balance securitization backed by a pool of residential mortgage loans, to which we contributed loans with a scheduled principal balance of $87.2 million. We used the proceeds of the securitization to repay outstanding debt of approximately $73.1 million, and retained bonds of $8.1 million. The securitization released $9.2 million of cash, which was used for operational purposes. We participated in this securitization alongside other Angel Oak entities.
  • During the quarter ended June 30, 2025, the Company purchased $146.6 million of newly-originated, current market coupon non-QM residential mortgage loans and home equity lines of credit ("HELOC"), with a weighted average coupon of 8.68%, a weighted average combined loan-to-value ratio (or “CLTV”, calculated as the primary or first lien mortgage loan amount plus any additional borrowings secured by the property, such as a HELOC, divided by the estimated value of the property) of 68.4% and a weighted average credit score of 757.
  • As of June 30, 2025, the weighted average coupon of our residential whole loans portfolio was 8.37%, marking a 66 basis point increase compared to June 30, 2024.

Capital Markets Activity

  • In May 2025, we closed an underwritten public offering and sale of, and issued, $42.5 million in aggregate principal amount of our 9.750% Senior Notes due 2030 (the “2030 Notes”). The 2030 Notes bear interest at a rate of 9.750% per annum. After deducting the underwriting discount and other debt issuance costs, we received net proceeds of approximately $40.6 million. We used the majority of the net proceeds from the offering for general corporate purposes, which included the acquisition of non-QM loans and other target assets in a manner consistent with our strategy and investment guidelines.
  • As of June 30, 2025, 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 $118.6 million is drawn, leaving capacity of approximately $931.4 million for new loan purchases.

Balance Sheet

  • Target assets totaled $2.5 billion as of June 30, 2025.
  • The Company held residential mortgage whole loans with fair value of $200.7 million as of June 30, 2025.
  • As of June 30, 2025, the Company's recourse debt to equity ratio was approximately 1.1x.

Dividend

On August 5, 2025, the Company declared a dividend of $0.32 per share of common stock, which will be paid on August 29, 2025, to common stockholders of record as of August 22, 2025.

Conference Call and Webcast Information

The Company will host a live conference call and webcast today, August 5, 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

For the conference call playback (which can be accessed through August 19, 2025), dial one of the following numbers:

Domestic: 1-844-512-2921

International: 1-412-317-6671

Pass code: 10200567

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

This press release contains certain forward-looking statements that are subject to various risks and uncertainties, including, without limitation, statements relating to the performance of the Company’s investments. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “believe,” “could,” “project,” “predict,” “continue,” or by the negative of these words and phrases or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe existing or future plans and strategies, contain projections of results of operations, liquidity and/or financial condition, or state other forward-looking information. The Company’s ability to predict future events or conditions or their impact or the actual effect of existing or future plans or strategies is inherently uncertain. Although the Company believes that such forward-looking statements are based on reasonable assumptions, actual results and performance in the future could differ materially from those set forth in or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward‐looking statements, which reflect the Company’s views only as of the date of this press release. Additional information concerning factors that could cause actual results and performance to differ materially from these forward-looking statements is contained from time to time in the Company’s filings with the Securities and Exchange Commission. Except as required by applicable law, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward‐looking statements. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.

About Angel Oak Mortgage REIT, Inc.

Angel Oak Mortgage REIT, Inc. is a 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. The Company’s objective is to generate attractive risk-adjusted returns for its stockholders through cash distributions and capital appreciation across interest rate and credit cycles. The Company is externally managed and advised by an affiliate of Angel Oak Capital Advisors, LLC, which, collectively with its affiliates, is a leading alternative credit manager with market leadership in mortgage credit that includes asset management, lending, and capital markets. Additional information about the Company is available at www.angeloakreit.com

Angel Oak Mortgage REIT, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited)

(in thousands, except for share and per share data)

 

 

Three Months Ended

 

Six Months Ended

 

June 30, 2025

 

June 30, 2024

 

June 30, 2025

 

June 30, 2024

INTEREST INCOME, NET

 

 

 

 

 

 

 

Interest income

$

35,094

 

 

$

25,902

 

 

$

67,961

 

 

$

51,114

 

Interest expense

 

25,154

 

 

 

16,439

 

 

 

47,934

 

 

 

33,072

 

NET INTEREST INCOME

$

9,940

 

 

$

9,463

 

 

$

20,027

 

 

$

18,042

 

 

 

 

 

 

 

 

 

REALIZED AND UNREALIZED GAINS (LOSSES), NET

 

 

 

 

 

 

 

Net realized gain (loss) on mortgage loans, derivative contracts, RMBS, and CMBS

$

(2,499

)

 

$

(6,770

)

 

$

(5,681

)

 

$

(8,192

)

Net unrealized gain (loss) on trading securities, mortgage loans, portion of debt at fair value option, and derivative contracts

 

(1,576

)

 

 

2,658

 

 

 

15,049

 

 

 

13,342

 

TOTAL REALIZED AND UNREALIZED GAINS (LOSSES), NET

$

(4,075

)

 

$

(4,112

)

 

$

9,368

 

 

$

5,150

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

Operating expenses

$

1,334

 

 

$

1,692

 

 

$

2,536

 

 

$

3,742

 

Operating expenses incurred with affiliate

 

453

 

 

 

456

 

 

 

869

 

 

 

971

 

Stock compensation

 

296

 

 

 

630

 

 

 

533

 

 

 

1,260

 

Securitization costs

 

1,866

 

 

 

1,410

 

 

 

1,866

 

 

 

1,583

 

Management fee incurred with affiliate

 

1,149

 

 

 

1,294

 

 

 

2,293

 

 

 

2,606

 

Total operating expenses

$

5,098

 

 

$

5,482

 

 

$

8,097

 

 

$

10,162

 

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE INCOME TAXES

$

767

 

 

$

(131

)

 

$

21,298

 

 

$

13,030

 

Income tax expense (benefit)

 

 

 

 

142

 

 

 

 

 

 

429

 

NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS

$

767

 

 

$

(273

)

 

$

21,298

 

 

$

12,601

 

Other comprehensive income (loss)

 

(491

)

 

 

125

 

 

 

(1,186

)

 

 

1,828

 

TOTAL COMPREHENSIVE INCOME (LOSS)

$

276

 

 

$

(148

)

 

$

20,112

 

 

$

14,429

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per common share

$

0.03

 

 

$

(0.01

)

 

$

0.90

 

 

$

0.51

 

Diluted earnings (loss) per common share

$

0.03

 

 

$

(0.01

)

 

$

0.89

 

 

$

0.50

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

Basic

 

23,524,735

 

 

 

24,810,021

 

 

 

23,460,798

 

 

 

24,792,918

 

Diluted

 

23,787,823

 

 

 

24,810,021

 

 

 

23,719,650

 

 

 

24,973,501

 

Angel Oak Mortgage REIT, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except for share and per share data)

 

 

As of:

 

June 30, 2025

 

December 31, 2024

ASSETS

 

 

 

Residential mortgage loans - at fair value

$

200,665

 

 

$

183,064

 

Residential mortgage loans in securitization trusts - at fair value

 

1,902,721

 

 

 

1,696,995

 

RMBS - at fair value

 

361,884

 

 

 

300,243

 

Cash and cash equivalents

 

40,500

 

 

 

40,762

 

Restricted cash

 

3,867

 

 

 

2,131

 

Principal and interest receivable

 

6,836

 

 

 

8,141

 

TBA securities and interest rate futures contracts - at fair value

 

 

 

 

1,515

 

Other assets

 

38,015

 

 

 

36,918

 

Total assets

$

2,554,488

 

 

$

2,269,769

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

LIABILITIES

 

 

 

Notes payable

$

118,619

 

 

$

129,459

 

Non-recourse securitization obligation, collateralized by residential mortgage loans in securitization trusts (see Note 2)

 

1,767,929

 

 

 

1,593,612

 

Securities sold under agreements to repurchase

 

68,062

 

 

 

50,555

 

Senior unsecured notes

 

88,601

 

 

 

47,740

 

TBA securities and interest rate futures contracts - at fair value

 

4,355

 

 

 

 

Due to broker

 

254,228

 

 

 

201,994

 

Accrued expenses

 

2,812

 

 

 

2,291

 

Accrued expenses payable to affiliate

 

393

 

 

 

766

 

Interest payable

 

2,258

 

 

 

934

 

Income taxes payable

 

163

 

 

 

2,785

 

Management fee payable to affiliate

 

679

 

 

 

666

 

Total liabilities

$

2,308,099

 

 

$

2,030,802

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

Common stock, $0.01 par value. As of June 30, 2025: 350,000,000 shares authorized, 23,765,202 shares issued and outstanding. As of December 31, 2024: 350,000,000 shares authorized, 23,500,175 shares issued and outstanding.

$

238

 

 

$

234

 

Additional paid-in capital

 

463,580

 

 

 

461,057

 

Accumulated other comprehensive income (loss)

 

(4,661

)

 

 

(3,475

)

Retained earnings (deficit)

 

(212,768

)

 

 

(218,849

)

Total stockholders' equity

$

246,389

 

 

$

238,967

 

Total liabilities and stockholders' equity

$

2,554,488

 

 

$

2,269,769

 

Angel Oak Mortgage REIT, Inc.

Reconciliation of Net Income (Loss) to Distributable Earnings and Distributable Earnings Return on Average Equity

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

June 30, 2025

 

June 30, 2024

 

June 30, 2025

 

June 30, 2024

 

(in thousands)

Net income (loss) allocable to common stockholders

$

767

 

 

$

(273

)

 

$

21,298

 

 

$

12,601

 

Adjustments:

 

 

 

 

 

 

 

Net unrealized (gains) losses on trading securities

 

(4,898

)

 

 

1,813

 

 

 

(3,866

)

 

 

1,814

 

Net unrealized (gains) losses on derivatives

 

4,829

 

 

 

(2,592

)

 

 

5,871

 

 

 

(3,037

)

Net unrealized (gains) losses on residential loans in securitization trusts and non-recourse securitization obligation

 

(546

)

 

 

2,579

 

 

 

(16,204

)

 

 

(2,568

)

Net unrealized (gains) losses on residential loans

 

2,191

 

 

 

(4,431

)

 

 

(850

)

 

 

(9,502

)

Net unrealized (gains) losses on commercial loans

 

 

 

 

(27

)

 

 

 

 

 

(49

)

Stock compensation expense

 

296

 

 

 

630

 

 

 

533

 

 

 

1,260

 

Distributable Earnings

$

2,639

 

 

$

(2,301

)

 

$

6,782

 

 

$

519

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2025

 

June 30, 2024

 

June 30, 2025

 

June 30, 2024

 

 

($ in thousands)

Annualized Distributable Earnings

 

$

10,556

 

 

$

(9,204

)

 

$

13,562

 

 

$

1,038

 

Average total stockholders’ equity

 

$

248,934

 

 

$

259,565

 

 

$

245,612

 

 

$

258,412

 

Distributable Earnings Return on Average Equity

 

 

4.2

%

 

 

(3.5

)%

 

 

5.5

%

 

 

0.4

%

Angel Oak Mortgage REIT, Inc.

Reconciliation of Stockholders’ Equity to Stockholders’ Equity Including Economic Book Value Adjustments and Economic Book Value per Share of Common Stock

(Unaudited)

 

 

June 30, 2025

March 31, 2025

December 31,

2024

September 30,

2024

June 30, 2024

 

(in thousands, except for share and per share data)

GAAP total stockholders’ equity

$

246,389

$

251,480

$

238,967

$

265,098

$

255,806

Adjustments:

 

 

 

 

 

Fair value adjustment for securitized debt held at amortized cost

 

61,846

 

63,593

 

68,784

 

64,522

 

73,053

Stockholders’ equity including economic book value adjustments

$

308,235

$

315,073

$

307,751

$

329,620

$

328,859

 

 

 

 

 

 

Number of shares of common stock outstanding at period end

 

23,765,202

 

23,500,175

 

23,500,175

 

23,511,272

 

24,998,549

Book value per share of common stock

$

10.37

$

10.70

$

10.17

$

11.28

$

10.23

Economic book value per share of common stock

$

12.97

$

13.41

$

13.10

$

14.02

$

13.16

 

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