Angel Oak Mortgage sees weakening non-QM demand in Q2 financial results

Over the quarter, Angel Oak saw its target asset portfolio grow from $2.7 billion to $3.2 billion, up 19% from the previous quarter. Interest income was $29.7 million, up 10% quarter-over-quarter, and net interest margin was $16.4 million, representing a slight quarter-over-quarter drop due to the increased financing cost on its loan portfolio during Q2.

The REIT also purchased $257 million of non-QM residential loans in the second quarter and sold $7 million in commercial loans to boost liquidity for further residential loan purchases.

Despite the challenging economic environment in Q2, AOMR was able to weather the headwinds because of its strategy, company president and CEO Robert Williams said.

“We remain fully aligned with the Angel Oak ecosystem, which continues to demonstrate its strategic advantages, and our strategy remains consistent,” he added. “We deploy capital into our targeted, high-quality, non-QM mortgage loans, programmatically securitize these loans to lock in a fixed cost of funding in term structural leverage and reinvest capital into our targeted assets.”