Unlock stock picks and a broker-level newsfeed that powers Wall Street.

Angel Oak Mortgage REIT Inc (AOMR) Q4 2024 Earnings Call Highlights: Navigating Growth Amidst ...

In This Article:

  • Net Interest Income Growth: 9% increase in Q4 2024 compared to Q3 2024.

  • GAAP Net Loss: $15 million or $0.65 per common share for Q4 2024.

  • GAAP Net Income: $28.8 million or $1.17 per diluted common share for the full year 2024.

  • Distributable Earnings: $9.9 million or $0.42 per diluted common share for Q4 2024.

  • Interest Income: $31.9 million for Q4 2024, a 30% increase compared to Q4 2023.

  • Net Interest Income: $9.9 million for Q4 2024, a 20% increase compared to Q4 2023.

  • Loan Purchases: $684 million in 2024 with a weighted average coupon of 7.64%.

  • Securitizations: $855 million in 2024 across five securitizations.

  • Operating Expenses: $5.5 million for Q4 2024; $3.1 million excluding noncash stock compensation and securitization costs.

  • GAAP Book Value Per Share: Decreased 9.8% to $10.17 as of December 31, 2024.

  • Economic Book Value Per Share: $13.10 as of December 31, 2024, down 6.6% from September 30, 2024.

  • Cash: $40.8 million as of December 31, 2024.

  • Recourse Debt-to-Equity Ratio: 1 times at the end of 2024.

  • Dividend: $0.32 per share common dividend paid on February 28, 2025.

Release Date: March 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Angel Oak Mortgage REIT Inc (NYSE:AOMR) reported a 9% growth in net interest income compared to the third quarter, indicating strong financial performance.

  • The company completed five securitizations in 2024, exceeding their target of one per quarter, enhancing capital flexibility and portfolio yield.

  • Interest income for the full year increased by 15% compared to 2023, showcasing effective loan purchasing and securitization strategies.

  • Operating expenses decreased by approximately 14% for the full year, demonstrating improved cost management.

  • The company maintained a strong credit quality with a weighted average FICO score of 749 and a weighted average loan-to-value ratio of 70.2% for loan purchases in 2024.

Negative Points

  • Angel Oak Mortgage REIT Inc (NYSE:AOMR) experienced a GAAP net loss of $15 million for the fourth quarter, primarily due to unrealized losses in their securitized loan portfolio.

  • The company's GAAP book value per share decreased by 9.8% to $10.17 as of December 31, 2024, reflecting challenges in portfolio valuation.

  • Interest rate volatility negatively impacted portfolio valuation, leading to a decline in book value during the fourth quarter.

  • The percentage of loans 90 days plus delinquent increased to 2.4% by the end of the year, up from 1.85% in the previous quarter.

  • Economic book value per share decreased by 6.6% from the previous quarter, indicating challenges in maintaining asset valuations.