Angel Oak Mortgage REIT Reports $7.4 Million Net Loss in Q1 2026

Angel Oak Mortgage REIT, Inc. reported a net loss of $7.4 million for the first quarter of 2026, a significant decline compared to a net income of $20.5 million in the same period of 2025. The company's total revenue for the quarter was $40.7 million, up from $32.9 million year-over-year, primarily driven by an increase in interest income, which rose to $40.7 million from $32.9 million. However, the increase in interest expense, which grew to $28.6 million from $22.8 million, contributed to the overall loss. The company’s net interest income increased by 20% to $12.1 million, reflecting a strategic focus on acquiring higher-yielding assets.

In terms of operational metrics, Angel Oak's total assets increased to $2.81 billion as of March 31, 2026, compared to $2.75 billion at the end of 2025. The company’s residential mortgage loans at fair value decreased to $245.5 million from $294.1 million, while residential mortgage loans in securitization trusts rose to $2.25 billion from $2.08 billion. The company also reported a total stockholders' equity of $256.9 million, down from $267.5 million at the end of the previous fiscal year. The decline in equity was attributed to the net loss and dividends paid during the quarter.

Strategically, Angel Oak continued to expand its portfolio, purchasing $246.2 million in newly originated non-qualified mortgage loans during the quarter. The company also completed a securitization transaction in March 2026, issuing approximately $272.3 million in bonds backed by residential mortgage loans. This transaction was aimed at refinancing existing debt and providing liquidity for further investments. The company’s financing arrangements included four warehouse loan facilities, allowing for a total borrowing capacity of $1.3 billion, which supports its ongoing acquisition strategy.

The company’s operational performance indicators showed a slight increase in the number of loans in foreclosure, rising to four from one in the previous quarter. However, the percentage of loans 90 or more days past due remained stable at zero. The weighted average credit score of the loans in the portfolio was 759, indicating a focus on higher-quality borrowers. The company’s management expressed optimism about the outlook for the remainder of 2026, anticipating continued acquisition of newly originated loans and stable market conditions, which they believe will support portfolio performance and securitization execution.

Looking ahead, Angel Oak Mortgage REIT, Inc. aims to navigate the evolving economic landscape while maintaining its focus on generating attractive risk-adjusted returns for its stockholders. The company plans to leverage its relationships and expertise in the mortgage market to capitalize on investment opportunities, despite the challenges posed by market volatility and interest rate fluctuations.