Maryland 37-1892154 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001- ...

Angel Oak Mortgage (AOMR) came out with quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -37.04%. A quarter ago, it was expected that this real estate finance company would post earnings of $0.25 per share when it actually produced earnings of $0.42, delivering a surprise of 68%.Over the last four q ...

Angel Oak Mortgage REIT, Inc. Reports First Quarter 2025 Financial Results ATLANTA – May 5, 2025 -- 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 March 31, 2025. First Quarter 2025 Highlights • Q1 2025 GAAP net income of $20.5 million, or $0.87 per diluted share ...

Core Insights - Albert Anthony is a Croatian-American media personality active on investor platforms, focusing on markets and stocks, with a growing follower base of over 1,000 since 2023 [1] - He is set to launch a new book titled "Financial Markets: Growing A Dividend Income Portfolio" in 2025, coinciding with an ongoing article series on the same topic [1] - Albert Anthony has a background in management and information systems, having worked in a top-10 financial firm's IT department [1] Company Overview - Albert Anthony & Co. is a sole proprietorship registered in Austin, Texas, focusing on general market commentary based on publicly available data [1] - The company does not provide personalized financial advice or sell financial products, and it is not a registered financial advisor [1] Investment Focus - Albert Anthony has launched the Future Investor Fund, which aims to build a dividend portfolio [1] - The company emphasizes the importance of due diligence for investors, indicating that all investments carry risk [1]

Asset Management and Investment Strategy - As of December 31, 2024, the company's portfolio of target assets was approximately $2.2 billion, predominantly consisting of residential mortgage loans, securitization trusts, and RMBS[67]. - The investment strategy focuses on credit-sensitive investments in newly-originated first lien non-QM loans, primarily sourced from Angel Oak Mortgage Lending[61]. - The company aims to generate attractive risk-adjusted returns through cash distributions and capital appreciation across interest rate and credit cycles[61]. - The investment guidelines allow for flexibility in strategy and target assets, adapting to changing market conditions[65]. - The company is focusing on acquiring and investing in first lien non-QM loans in the U.S. mortgage market, with a significant concentration in California, Florida, Texas, and Georgia, where more than 5% of the unpaid principal balance of loans is secured by properties in these states[109]. - As of December 31, 2024, substantially all loans in the company's portfolio of RMBS and residential loans held in securitization trusts consisted of non-QM loans, indicating a concentrated investment strategy[109]. Financing and Debt - The company utilizes various financing lines and expects to secure long-term securitization funding for substantially all of its non-QM loans[69]. - The company has significant debt with no limitations on the amount it may incur, increasing the risk of loss[80]. - The company’s access to financing may be limited, potentially affecting its operations and financial health[80]. - As of December 31, 2024, the company had approximately $230.1 million of debt outstanding, including $129.5 million under uncommitted loan financing lines with a borrowing capacity of up to $1.1 billion[221]. - The company’s substantial indebtedness could limit its ability to obtain additional financing on acceptable terms, affecting its liquidity and operational flexibility[222]. - Current market conditions may hinder the company's access to debt capital markets, affecting its ability to refinance short-term borrowings[225]. Management and Operational Risks - The company is externally managed by Falcons I, LLC, which provides access to proprietary non-QM loans and underwriting transparency[59]. - The company has no employees; all executive officers are provided through its Manager or affiliates[74]. - The company is highly dependent on its Manager and key personnel from Angel Oak, with no assurance of suitable replacements if the Management Agreement is terminated[79]. - The management fee structure may not align incentives properly, potentially leading to riskier investments that do not optimize returns for stockholders[90]. - The effectiveness of third-party servicers is critical; failures in servicing could lead to higher default rates and negatively impact investment values[185]. Market and Economic Risks - The company is subject to competition from various institutional investors, which may affect its ability to generate satisfactory returns[72]. - The company may face challenges in sourcing non-QM loans due to competition and economic factors, which could limit investment opportunities[100]. - The company anticipates that rising interest rates could adversely affect asset values, increase interest expenses, and lead to a decrease in the volume of target assets available for acquisition[120]. - Changes in fair values of assets and liabilities can significantly impact the company's earnings and book value, with volatility driven by interest rates and market conditions[122][123]. - Natural disasters and climate change pose risks to the value of real estate investments, potentially leading to increased foreclosures and credit losses[111]. Regulatory and Compliance Risks - The company has elected to be taxed as a REIT since December 31, 2019, and intends to maintain compliance with REIT requirements[58]. - The company is subject to U.S. Risk Retention Rules, requiring it to retain a 5% interest in securitizations, which may contribute to asset illiquidity[175]. - The company intends to maintain its exclusion from regulation as an investment company under the Investment Company Act, which imposes significant limitations on its operations and investment strategies[214]. - The company may incur significant costs to comply with new or existing regulatory requirements, which could materially affect its operations[211]. - Legislative actions aimed at preventing foreclosures may reduce the value of mortgage loans and affect the company's returns[186]. Investment Performance and Risks - Non-QM loans may experience higher rates of delinquencies and defaults due to less stringent underwriting guidelines, impacting the company's portfolio performance[102]. - The performance of RMBS investments is influenced by principal payment rates and the timing of those payments, which can be affected by various economic factors[133]. - Investments in distressed or non-performing residential and commercial mortgage loans could increase the company's risk of loss, especially if LTVs exceed 100%[164]. - The company may invest in CRT securities that transfer a portion of the risk associated with credit losses within pools of conventional residential mortgage loans to investors[151]. - The company may face litigation risks related to inaccuracies in disclosure documentation for securitization transactions, which could lead to financial liabilities[239]. Technology and Cybersecurity Risks - The company is highly dependent on information systems, and any failure or cyber-attack could significantly disrupt business operations, potentially leading to material adverse effects[206]. - Cybersecurity breaches pose a significant risk, potentially leading to reputational damage and material costs associated with data breaches[200]. - The financial services industry is experiencing rapid technological changes, and the company's future success will depend on its ability to effectively implement new technology-driven products and services[205]. General Economic Conditions - Future pandemics or public health crises could significantly impact the economy and the company's financial performance[180]. - Changes in the conservatorship of Fannie Mae and Freddie Mac could significantly impact the company's operations and the residential mortgage market[196]. - Fluctuations in benchmark interest rates by the U.S. Federal Reserve could adversely affect the value of the company's investments and overall financial performance[197].

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $15 million or $0.65 per common share for Q4 2024, while for the full year, GAAP net income was $28.8 million or $1.17 per diluted common share [17][19] - Distributable earnings for Q4 were $9.9 million or $0.42 per diluted common share, with full-year distributable earnings at $7 million [18][20] - Interest income for Q4 was $31.9 million, marking a 30% improvement compared to Q4 2023, and net interest income was $9.9 million, a 20% improvement [19][20] - GAAP book value per share decreased by 9.8% to $10.17 as of December 31, 2024, down from $11.28 as of September 30, 2024 [25] Business Line Data and Key Metrics Changes - The company completed five securitizations in 2024, exceeding the target of one per quarter, with a total of $855 million in scheduled unpaid principal balance [22][23] - The weighted average coupon of the residential whole loan portfolio increased by 61 basis points to 7.39% by year-end 2024 [21] Market Data and Key Metrics Changes - The total portfolio weighted average percentage of loans 90 days plus delinquent increased to 2.4% from 1.85% at the end of Q3 2024 [27] - The company noted that the securitization market remains active and receptive with tight spreads, indicating a favorable environment for capital recycling [12][23] Company Strategy and Development Direction - The company focuses on long-term earnings accretion, disciplined decision-making, and risk management to create shareholder value [7][8] - The capital deployment strategy is adaptive and flexible, aligning with evolving market dynamics to maximize returns [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term backdrop of the business, despite experiencing a decline in book value due to interest rate volatility [8][11] - The company expects interest income to continue growing through effective portfolio management and securitization execution [21] Other Important Information - The company declared a $0.32 per share common dividend, paid on February 28, 2025 [32] - The company has a small exposure to the California mortgage market, with minimal impact from recent wildfires [30][31] Q&A Session Summary Question: How insulated are the '21 to '23 vintages regarding prepayments? - Management indicated that significant declines in rates would be needed to trigger prepayments, estimating a drop of 150 to 200 basis points [37] Question: Can you discuss the outlook for net interest income (NII) in the next quarter? - Management confirmed a strong pipeline and expected continued growth in NII throughout 2025 [50][51] Question: What are the expectations for delinquencies moving forward? - Management anticipates a return to normalized levels of 2% to 3% for 90-day delinquencies, indicating a healthy credit environment [64] Question: What is the company's stance on repurchasing stock? - Management expressed a preference for building equity over stock buybacks, citing higher returns on incremental capital compared to the current dividend yield [59][60]

Group 1: Earnings Performance - Angel Oak Mortgage (AOMR) reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, compared to a loss of $0.26 per share a year ago, representing an earnings surprise of 68% [1] - The company posted revenues of $31.87 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.22%, and showing an increase from year-ago revenues of $24.55 million [2] Group 2: Stock Performance and Outlook - Angel Oak shares have increased by approximately 3% since the beginning of the year, while the S&P 500 has declined by 0.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $30.95 million, and for the current fiscal year, it is $1.32 on revenues of $140.49 million [7] Group 3: Industry Context - The Financial - Mortgage & Related Services industry, to which Angel Oak belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the same industry, Finance of America Companies Inc. (FOA), is expected to report quarterly earnings of $0.45 per share, reflecting a year-over-year change of +150%, with revenues anticipated to be $79 million, down 71.4% from the previous year [9][10]

Financial Performance - Q4 2024 net interest income was $9.9 million, a 20% increase from Q4 2023's $8.2 million[4] - FY 2024 net interest income reached $36.9 million, reflecting a 28% increase compared to FY 2023's $28.9 million[4] - Q4 2024 GAAP net loss was $(15.1) million, or $(0.65) per diluted share[4] - FY 2024 GAAP net income was $28.8 million, or $1.17 per diluted share[4] - Net income allocable to common stockholders for the three months ended December 31, 2024, was a loss of $15,055,000 compared to a profit of $28,599,000 for the same period in 2023[24] - Distributable Earnings for the three months ended December 31, 2024, were $9,874,000, a significant recovery from a loss of $6,527,000 in the same period of 2023[24] - Annualized Distributable Earnings for the twelve months ended December 31, 2024, were $39,500,000, compared to a loss of $26,107,000 for the previous year[24] - Distributable Earnings Return on Average Equity improved to 15.7% for the three months ended December 31, 2024, compared to a negative 10.7% for the same period in 2023[24] Asset and Liability Management - Total assets decreased to $2,269,769,000 as of December 31, 2024, from $2,308,011,000 as of December 31, 2023, representing a decline of approximately 1.66%[22] - Total liabilities decreased to $2,030,802,000 as of December 31, 2024, from $2,051,905,000 as of December 31, 2023, a reduction of approximately 1.03%[22] - Common stock outstanding decreased from 24,965,274 shares as of December 31, 2023, to 23,500,175 shares as of December 31, 2024[26] - Book value per share of common stock decreased to $10.17 as of December 31, 2024, from $10.26 as of December 31, 2023[26] - Economic book value per share of common stock increased to $13.10 as of December 31, 2024, from $13.54 as of December 31, 2023[26] - Average total stockholders' equity for the twelve months ended December 31, 2024, was $255,860,000, compared to $240,524,000 for the previous year, reflecting an increase of approximately 6.4%[24] Securitization and Loan Activity - The Company participated in five securitization transactions in 2024, contributing a total of $855 million in scheduled unpaid principal balance of loans[5] - The Company purchased $683.7 million of newly-originated, market coupon non-QM residential mortgage loans in 2024[5] Debt Management - As of December 31, 2024, the Company's recourse debt to equity ratio was approximately 1.0x, expected to remain below 2.5x going forward[12] Dividend Declaration - The Company declared a dividend of $0.32 per share of common stock, paid on February 28, 2025[4] Loan Portfolio Metrics - As of December 31, 2024, the weighted average coupon of the residential whole loans portfolio was 7.39%, a 61 basis point increase from December 31, 2023[6]

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Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) Q3 2024 Earnings Conference Call November 6, 2024 8:30 AM ET Company Participants Sreeni Prabhu - Chief Executive Officer, President Brandon Filson - Chief Financial Officer, Treasurer Namit Sinha - Chief Investment Officer, Angel Oak Capital Advisors LLC KC Kelleher - Head of Corporate Finance, Investor Relations Conference Call Participants Don Fandetti - Wells Fargo Matthew Erdner - Jones Trading Eric Hagen - BTIG Matthew Howlett - B. Riley Chris Kotowski - Oppe ...