Angel Oak Mortgage REIT Reports $767,000 Net Income for Q2 2025, Up from Loss Last Year

Angel Oak Mortgage REIT, Inc. reported significant financial performance in its latest quarterly filing, with net income allocable to common stockholders reaching $767,000 for the three months ended June 30, 2025, compared to a net loss of $273,000 in the same period last year. For the first half of 2025, the company recorded a net income of $21.3 million, a notable increase from $12.6 million in the prior year. Interest income also saw a substantial rise, totaling $35.1 million for the second quarter, up from $25.9 million a year earlier, while interest expense increased to $25.2 million from $16.4 million, resulting in a net interest income of $9.9 million, slightly higher than the $9.5 million reported in the previous year.

The company’s total assets grew to $2.55 billion as of June 30, 2025, up from $2.27 billion at the end of 2024. This increase was primarily driven by a rise in residential mortgage loans, which reached $200.7 million, and loans in securitization trusts, which rose to $1.90 billion. The total liabilities also increased to $2.31 billion, compared to $2.03 billion at the end of the previous fiscal year, largely due to higher non-recourse securitization obligations and notes payable.

In terms of strategic developments, Angel Oak Mortgage REIT engaged in several securitization transactions during the quarter, including the issuance of AOMT 2025-4 and AOMT 2025-6, which collectively raised approximately $634 million. The proceeds from these transactions were utilized to repay existing debt and fund new loan purchases. The company also issued $42.5 million in senior notes due 2030, which are expected to enhance its capital structure and support future acquisitions of non-qualified mortgage loans.

Operationally, the company reported a total of 23,765,202 shares of common stock outstanding as of June 30, 2025, reflecting an increase from the previous period. The weighted average interest rate on residential mortgage loans in securitization trusts was 5.80%, with a weighted average credit score of 744 for the underlying loans. The company also noted a slight uptick in the percentage of loans 90 days or more delinquent, which stood at 1.4% as of June 30, 2025.

Looking ahead, Angel Oak Mortgage REIT expressed optimism about its growth trajectory, citing the continued acquisition of non-QM loans and the stability of the securitization markets. The company anticipates that the deployment of new capital from its recent notes offerings will further drive net interest income expansion in future quarters. However, it remains cautious about potential market volatility and economic conditions that could impact its operations and financial performance.