Angel Oak Mortgage REIT Reports Q2 2026 Financial Results with Increased Net Income

Angel Oak Mortgage REIT, Inc. reported its financial results for the second quarter of 2026, revealing a net income of $3.4 million, or $0.14 per share, compared to a net income of $767,000, or $0.03 per share, in the same period last year. The company generated interest income of $41.4 million, an increase of 18% from $35.1 million in the prior year, while interest expenses rose to $30.7 million from $25.2 million, resulting in a net interest income of $10.7 million, up from $9.9 million. For the first half of 2026, the company reported a net loss of $4 million, or $(0.17) per share, compared to a net income of $21.3 million, or $0.90 per share, in the same period of 2025.

The company’s total assets increased to $2.99 billion as of June 30, 2026, up from $2.75 billion at the end of 2025. This growth was primarily driven by an increase in residential mortgage loans, which rose to $438.8 million from $294.1 million, and residential mortgage loans in securitization trusts, which increased to $2.13 billion from $2.08 billion. However, total stockholders' equity decreased to $234.9 million from $267.5 million, largely due to a stock repurchase of $15 million and dividends paid during the period.

Operationally, Angel Oak continued to expand its portfolio, purchasing $204 million in newly originated non-QM residential mortgage loans and home equity lines of credit during the quarter. The weighted average coupon for these loans was 7.34%, with a combined loan-to-value ratio of 70.5% and an average credit score of 759. The company also engaged in significant securitization activities, issuing AOMT 2026-2, a $272.3 million securitization backed by residential mortgage loans, and AOMT 2026-3, a $279.6 million securitization, both aimed at repaying outstanding debt and funding new loan purchases.

Looking ahead, Angel Oak remains focused on its strategy of acquiring credit-sensitive investments in non-QM loans and other mortgage-related assets. The company anticipates continued engagement in the securitization market, supported by favorable investor demand, while navigating the challenges posed by interest rate volatility and market conditions. The management expressed confidence in maintaining adequate liquidity and capital resources to support its operational and investment strategies, with a total borrowing capacity of $1.3 billion as of June 30, 2026.