Angel Oak Mortgage REIT (AOMR) Q4 2024 earnings summary

Executive summary

• Net interest income grew 28% year-over-year to $36.9 million in FY 2024, driven by accretive loan purchases and securitizations, with operating expenses (excluding securitization) down 10% year-over-year.

• Q4 2024 saw net interest margin expansion and solid operational performance, despite a Q4 GAAP net loss of $15 million ($0.65 per share) and a decline in book value due to interest rate volatility and unrealized portfolio losses.

• Full-year 2024 GAAP net income was $28.8 million ($1.17 per diluted share); distributable earnings were $7 million ($0.28 per share).

• Book value per share ended at $10.17 (GAAP) and $13.10 (economic), with Q4 GAAP book value down 0.9% and economic book value down 3.3% year-over-year.

• Credit performance remained strong, with a 2.43% weighted average delinquency rate across residential whole loans, loans in securitization trust, and RMBS portfolios as of Q4 2024.

Financial highlights

• FY 2024 net interest income was $36.9 million (up 28% YoY); Q4 net interest income was $9.9 million (up 20% YoY, 9% QoQ).

• FY 2024 GAAP diluted EPS was $1.17; distributable EPS was $0.28.

• GAAP book value per share at year-end was $10.17; economic book value was $13.10.

• Dividend of $0.32 per share was declared and paid in February 2025.

• Purchased $683.7 million of loans in 2024 with a weighted average coupon of 7.64%, LTV of 70.2%, and FICO of 749.

Outlook and guidance

• Interest income and net interest income are expected to continue growing in 2025, supported by a strong loan pipeline and ongoing securitizations.

• Recourse debt to equity ratio is expected to remain below 2.5x, with a current ratio of approximately 1.0x as of December 31, 2024.

• Dividend coverage is expected to improve further as earnings and NII increase.

• The company remains flexible in capital deployment and will raise funds opportunistically.

• Focus remains on disciplined risk management, securitization execution, and strategic capital deployment.