Angel Oak Mortgage REIT, Inc., reported a net interest income of $9 million for the third quarter of 2024, a 22% increase from the $7.4 million collected in the third quarter of 2023, but a 5.2% decline from the second quarter.
Net interest income of $27.1 million through the first nine months of 2024 totaled a 31% increase from the $20.7 million of net interest income earned in the first nine months of 2023.
“Our positive third quarter results reflect the strength of our portfolio’s position in what has become a more positive macroeconomic landscape in the second half of the year,” Chief Executive Officer and President of Angel Oak Mortgage REIT, Inc., Sreeni Prabhu, commented in the earnings announcement.
The company issued $50 million of 9.50% senior unsecured notes due in 2029 on July 25, 2024, mostly earmarked for general corporate purposes, including the acquisition of Non-QM loans, and the repurchasing of approximately 1.7 million shares of common stock.
“As of today’s date, the earnings from these investments have exceeded the incremental interest expense associated with the notes issuance and are now driving meaningful net interest income expansion," Prabhu continued.
Angel Oak purchased $264.8 million of newly-originated, current market coupon Non-QM residential loans during the third quarter, with a weighted average coupon (WAC) of 7.74%, weighted average loan-to-value (LTV) of 70.0%, and weighted average credit score of 754. The company held residential whole loans with a fair value of $428.9 million as of September 30.
Also as of September 30, the WAC of Angel Oak’s residential whole loans portfolio increased to 7.73%, mostly flat compared to the second quarter and 189 basis points higher year over year.
Third-quarter GAAP net income of $31.2 million, or $1.29 per diluted share of common stock, represented a quarterly distributable earnings loss of $3.4 million, or $0.14 per diluted share of common stock. GAAP book value of $11.28 per share of common stock as of September 30 was 10.3% higher than the $10.23 per share of common stock as of June 30.
Angel Oak held target assets on its balance sheet totaling $2.2 billion at the third quarter’s end.
