In This Article:
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GAAP Net Income: $31.2 million, or $1.29 per diluted common share.
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Distributable Earnings: Loss of $3.4 million, or $0.14 per common share.
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Interest Income: $27.4 million, a 6% increase from the prior quarter and 15% growth year-over-year.
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Interest Expense: $18.4 million, up from $16.4 million in the prior quarter.
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Net Interest Income: $9 million, a 22% improvement year-over-year.
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Loan Purchases: $264.8 million with a weighted average coupon of 7.74%.
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Operating Expenses: $3.8 million, or $3.2 million excluding certain expenses.
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Cash on Hand: $42.1 million as of September 30.
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Recourse Debt to Equity Ratio: 1.8 times at quarter end, reduced to 0.7 times post-securitization.
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GAAP Book Value Increase: 10.3% in the third quarter.
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Economic Book Value Increase: 6.5% in the third quarter.
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Residential Home Loan Portfolio: Fair value of $428.9 million.
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Dividend Declared: $0.32 per share, payable on November 27, 2024.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Angel Oak Mortgage REIT Inc (NYSE:AOMR) capitalized on a favorable rate environment, achieving all near-term goals and deploying capital into high-quality non-QM loans.
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The company observed meaningful balance sheet and net income growth in the third quarter, with GAAP book value increasing by over 10% and economic book value by over 6%.
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AOMR's proprietary affiliate origination, purchase, and securitization platform is delivering consistent and attractive investor returns.
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Interest income for the quarter increased by 6% compared to the prior quarter and 15% compared to the third quarter of 2023, driven by rapid deployment of capital.
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The company successfully completed a securitization in October, reducing funding costs by 110 basis points and releasing $40 million of capital for additional loan purchases.
Negative Points
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Net interest income was slightly down compared to the prior quarter, although it showed a 22% improvement over the third quarter of 2023.
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Approximately half of the GAAP book value increase from the third quarter has been given back due to market volatility.
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The company reported a distributable earnings loss of $3.4 million, driven by the exclusion of unrealized gains and inclusion of realized losses on hedges.
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Loan delinquencies, while low, have hovered around 2% for six consecutive quarters, indicating a potential return to historically normal levels.
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Due to rate volatility after quarter-end, the mark-to-market valuations of the portfolio have decreased since the end of the third quarter.