Company: AOMN
Filing Date: 2025-03-24
Form Type: 10-K
Source: 0001766478-25-000019
Chunk: 125

Company: Angel Oak Mortgage REIT, Inc.
Filing Date: 2025-03-24
Form: 10-K
Item: Item 7
Chunk 125
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 path throughout the course of the year was not a steady increase, as rates fell alongside the September rate cut to an average of 6.08% as of the end of September 2024 before increasing by 77 basis points by the end of the year. These rates are key benchmarks for the valuation of our portfolio, and drove corresponding impacts to our asset pricing. Continued purchases and securitizations of recently originated loans contributed to an increase in the valuations of our residential whole loans and loans in securitization trusts portfolios over the course of 2024, along with an overall tightening in securitization spreads. We expect to continue to purchase newly originated loans, which should continue to support overall portfolio valuations and securitization execution going forward.

54

Our investment performance

Net Interest Margin (“NIM”). We generated $8.0 million greater net interest income for the year ended December 31, 2024 as compared to the prior year, driven primarily by higher weighted average coupons on our investment portfolio, new loan purchases, and decreases in funding costs in notes payable associated with our residential whole loans portfolio. Our interest income for the year ended December 31, 2024 was $110.4 million compared to $96.0 million in the prior year, and our interest expense for the year ended December 31, 2024 was $73.5 million compared to $67.1 million in the prior year. Our net interest income for the year ended December 31, 2024 increased by 28% versus the prior year.

Net realized loss. Our net realized loss of $9.2 million for the year ended December 31, 2024 was primarily driven by our participation in co-mingled securitizations with other Angel Oak entities (AOMT 2024-3 and AOMT 2024-6). Because these securitizations did not result in the consolidation of VIE entities, we recognized a loss on the sale of these loans; however, the realized losses were less than the previous period’s unrealized losses for these loans, which drove overall positive GAAP net income for these securitizations. 

Net unrealized gain. Our net unrealized gain for the year ended December 31, 2024 was largely driven by a more stable macroeconomic backdrop in 2024 as compared to 2023 which drove increased valuations of our target assets. Unrealized gains in our residential loan portfolio and loans held in securit