Angel Oak(AOMR) - 2025 Q4 - Annual Results

Financial Performance - Q4 2025 net interest income increased by 10% to $10.9 million compared to Q4 2024's $9.9 million[4] - FY 2025 net interest income rose by 11% to $41.1 million from $36.9 million in FY 2024[4] - Q4 2025 GAAP net income was $11.3 million, or $0.45 per diluted share, while FY 2025 GAAP net income reached $44.0 million, or $1.80 per diluted share[4] - Net income allocable to common stockholders for Q4 2025 was $11,315, compared to a loss of $15,055 in Q4 2024, marking a significant turnaround[20] - Distributable earnings for the twelve months ended December 31, 2025, were $14,620, up from $7,030 in the previous year, reflecting a 108% increase[20] - The company reported annualized distributable earnings of $29,238 for Q4 2025, compared to $39,500 for Q4 2024[20] Asset and Liability Management - Total assets increased to $2,749,778, up from $2,269,769, representing a growth of approximately 21.1% year-over-year[18] - Total liabilities rose to $2,482,255, up from $2,030,802, an increase of approximately 22.2% year-over-year[18] - The Company's recourse debt to equity ratio was approximately 1.4x as of December 31, 2025[9] Equity and Book Value - GAAP book value per share increased by 5.6% to $10.74 as of December 31, 2025, compared to the previous year[4] - Economic book value per share decreased by 3.1% to $12.70 as of December 31, 2025[4] - Average total stockholders' equity for 2025 was $253,705, compared to $255,860 in 2024, indicating a slight decrease of 0.4%[20] - Book value per share of common stock increased to $10.74 as of December 31, 2025, from $10.17 a year earlier, representing a growth of 5.6%[23] - Economic book value per share of common stock was $12.70 as of December 31, 2025, slightly down from $13.10 in 2024[23] Mortgage and Securitization Activities - The Company participated in four securitization transactions in 2025, contributing a total of $704 million in unpaid principal balance of residential mortgage loans[3] - The Company held residential mortgage whole loans with a fair value of $294.1 million as of December 31, 2025[9] - The company purchased $861.8 million of newly-originated non-QM residential mortgage loans with a weighted average coupon of 7.79%[9] - As of December 31, 2025, the weighted average interest rate of the residential whole loans portfolio was 7.38%[9] Unrealized Gains and Shares Outstanding - The company experienced net unrealized gains on residential loans of $1,879 for Q4 2025, compared to losses of $16,598 in the previous year[20] - The number of shares of common stock outstanding increased to 24,914,647 as of December 31, 2025, from 23,500,175 a year earlier[23]