Q3 2024 Angel Oak Mortgage REIT Inc Earnings Call Transcript
Key Points
- Angel Oak Mortgage REIT Inc (AOMR) capitalized on a favorable rate environment, achieving all near-term goals and deploying capital into high-quality non-QM loans.
- The company observed meaningful balance sheet and net income growth in the third quarter, with GAAP book value increasing by over 10% and economic book value by over 6%.
- AOMR's proprietary affiliate origination, purchase, and securitization platform is delivering consistent and attractive investor returns.
- Interest income for the quarter increased by 6% compared to the prior quarter and 15% compared to the third quarter of 2023, driven by rapid deployment of capital.
- The company successfully completed a securitization in October, reducing funding costs by 110 basis points and releasing $40 million of capital for additional loan purchases.
- Net interest income was slightly down compared to the prior quarter, although it showed a 22% improvement over the third quarter of 2023.
- Approximately half of the GAAP book value increase from the third quarter has been given back due to market volatility.
- The company reported a distributable earnings loss of $3.4 million, driven by the exclusion of unrealized gains and inclusion of realized losses on hedges.
- Loan delinquencies, while low, have hovered around 2% for six consecutive quarters, indicating a potential return to historically normal levels.
- Due to rate volatility after quarter-end, the mark-to-market valuations of the portfolio have decreased since the end of the third quarter.
Good day and welcome to the Angel Oak Mortgage REIT third quarter, 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Mr. KC Kelleher. Please go ahead.
Good morning. Thank you for joining us today for Angel Oak Mortgage REITs third quarter, 2024 earnings conference call. This morning, we filed our press release detailing these results which is available in the investors section on 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
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