
Angel Oak Posts 3Q 2021 Earnings

Non-QM investor purchased $534M in loans in the quarter, increasing portfolio to more than $1B.
Angel Oak Mortgage Inc., a company that buys home loans made to non-traditional buyers, on Wednesday posted its third-quarter financial results, reporting net income of $6.34 million, or 25 cents per diluted common share. The results fell short of analysts’ estimates of 35 cents per share.
A 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, Angel Oak was very active in the quarter ended Sept. 30, according to its President & CEO Robert Williams.
Williams said Angel took advantage “of strong volumes from our origination partners to deploy capital” during the quarter, including purchasing “$534 million of loans through our proprietary origination channels, bringing our total loan portfolio to over $1 billion.”
In addition, he continued, Angel Oak completed its first non-QM securitization since its initial public offering in June, “executing it at very strong pricing and with high quality underlying collateral.”
Williams said the company also expanded its credit lines by $450 million, to a total of $1.25 billion, “providing us with enhanced capacity to continue funding loan investments and future securitizations.”
In the third quarter, the company added two financing lines totaling $450 million in borrowing capacity, one of which is a committed borrowing facility. As of Sept. 30, Angel Oak was party to six financing lines that permit borrowings in an aggregate amount of up to $1.25 billion, the company said.
“As we look ahead to the balance of 2021 and beyond, we remain focused on continuing to grow our asset base and providing our shareholders with the benefits of unparalleled access to high quality loan investments within the non-QM loan market,” Williams said.
Some key highlights from the earnings report:
- Purchased $543 million of residential mortgage loans in the third quarter 2021.
- As of Nov. 8, 2021, purchased an additional $338 million residential mortgage loans, with an additional strong pipeline of loans to close out the year.
- Completed $316.6 million residential non-QM securitization at a 1.12% weighted average cost of funding.
- Portfolio totaled $1.7 billion of residential mortgage loans and other target assets as of Sept. 30, 2021.