Angel Oak Mortgage REIT Q4 Earnings Call Highlights

Prabhu attributed year-over-year maturation successful GAAP publication worth per stock to improving valuations successful bequest securitizations arsenic rates declined, on with higher nett involvement income supported by deploying superior into higher-yielding investments. He besides said recognition show remained beardown some successful aggregate and comparative to the broader market, and noted that the company’s earlier determination to “step up successful recognition quality” helped presumption the portfolio to beryllium resilient crossed a scope of macroeconomic outcomes.

Chief Financial Officer Brandon Filson said fourth-quarter show was successful enactment with expectations and concluded a 2nd consecutive twelvemonth of expanding nett involvement income alongside operating disbursal reductions.

• Fourth 4th GAAP nett income: $11.3 million, oregon $0.45 per diluted communal share, compared with a GAAP nett nonaccomplishment of $15.1 million, oregon $0.65 per share, successful the 4th fourth of 2024.

• Full-year GAAP nett income: $44.0 million, oregon $1.80 per afloat diluted communal share, up 53% from $28.8 million, oregon $1.17 per share, successful 2024.

• Fourth 4th distributable earnings: $7.3 million.

• Full-year distributable earnings: $14.6 million.

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Filson explained that distributable net differed from GAAP results chiefly owed to the removal of unrealized gains and losses. In the 4th quarter, the quality was driven by removing $8.4 cardinal of nett unrealized gains from the securitized indebtedness portfolio, partially offset by $4.0 cardinal of unrealized losses from the residential loans and hedge portfolios. For the afloat year, the superior operator was removing $28.6 cardinal of unrealized nett gains connected the securitized indebtedness portfolio.