Q2 2026 Angel Oak Mortgage REIT Inc Earnings Call Transcript
Key Points
- Angel Oak Mortgage REIT Inc (AOMR) reported strong year-over-year growth in net interest income, with an 18% increase in interest income and 8% growth in net interest income for Q2 2026 compared to Q2 2025.
- The company executed strategic actions to strengthen its portfolio, including selling delevered legacy retained bonds and reinvesting in higher-yielding newly originated loans, repurchasing $15 million of common stock at accretive levels, and reducing warehouse financing spread by 35 basis points.
- Angel Oak Mortgage REIT Inc (AOMR) successfully completed two securitizations post-quarter (AOMT 2026-3 and AOMT 2026-HB1), demonstrating continued access to securitization markets and a disciplined approach to funding.
- Credit performance remained solid with portfolio-wide 90-day plus delinquencies at approximately 2.8%, reflecting a disciplined underwriting approach and conservative credit profiles, which the company believes will lead to lower losses across the credit cycle.
- The company maintained a strong balance sheet with cash of $48.6 million and reduced recourse debt-to-equity to approximately 1x following the post-quarter securitizations, providing flexibility to navigate market conditions.
- Angel Oak Mortgage REIT Inc (AOMR) declared a $0.32 per share common dividend, maintaining shareholder returns despite market volatility.
- The company expects to continue executing roughly one securitization per quarter, with a potential second non-QM securitization in Q3 2026, indicating a robust pipeline and ongoing capital deployment opportunities.
- Angel Oak Mortgage REIT Inc (AOMR) experienced unrealized mark-to-market losses in its securitized loan portfolio and derivatives, leading to a 1.7% decrease in GAAP book value per share and a 0.3% decrease in economic book value during Q2 2026.
- The company did not execute a securitization during the second quarter, which may have limited its ability to lock in financing costs and reduce leverage during a period of market uncertainty.
- Portfolio-wide 90-day plus delinquencies increased by approximately 9 basis points from Q1 2026 to 2.8%, indicating a slight uptick in credit stress.
- Prepayment speeds increased to 13.6% from 12.5% in Q1 2026, and the company expects them to continue rising as rates decrease, which could impact portfolio returns if mortgage rates fall significantly.
- The macroeconomic outlook remains unclear, with inflation, Federal Reserve policy, and global uncertainty causing market volatility and caution among investors, which could affect future performance.
- Operating expenses increased slightly due to higher loan diligence fees associated with larger target asset balances, potentially impacting profitability.
- The company noted that newly originated non-QM coupon rates have come down compared to the first half of 2025, which could reduce future interest income if not offset by increased volume or other factors.
Good morning, and welcome to the Angel Oak Mortgage REIT's second-quarter 2026 earnings conference call. (Operator Instructions)
This event is being recorded Tuesday, August 4, 2026. I would now like to turn the conference call over to Mr. KC Kelleher. Please go ahead.
Good morning, and thank you for joining us today for Angel Oak Mortgage REIT's Second Quarter 2026 Earnings Conference Call. This morning, we filed our press release detailing these results, which is available in the Investors section of our website at www.angeloakreit.com. As a reminder, remarks made on today's conference call may include forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those discussed today.
We do not undertake any obligation to update our forward-looking statements in light of new information or future events. For a more detailed discussion of the factors that may affect the company's
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
