Company: AOMN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001766478-25-000080
Chunk: 42

Company: Angel Oak Mortgage REIT, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 42
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istributable Earnings were a gain of $2.6 million and a loss of $2.3 million for the three months ended June 30, 2025 and 2024, respectively. The primary drivers of the difference of Distributable Earnings as compared to GAAP net income in the quarters ended June 30, 2025 and June 30, 2024 are adjustments to remove unrealized losses on residential loans and adjustments to remove unrealized gains on residential loans in securitization trusts and non-recourse securitization obligation, respectively. For the six months ended June 30, 2025 and June 30, 2024, the primary drivers of the difference between Distributable Earnings and GAAP net income were adjustments to remove unrealized gains on residential loans in securitization trusts and non-recourse securitization obligation and adjustments to remove unrealized gains on residential loans, respectively.

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The table below sets forth a reconciliation of net income (loss) allocable to common stockholders, calculated in accordance with GAAP, to Distributable Earnings for the three and six months ended June 30, 2025 and 2024:

Three Months EndedSix Months EndedJune 30, 2025June 30, 2024June 30, 2025June 30, 2024(in thousands)Net income (loss) allocable to common stockholders$767 $(273)$21,298 $12,601 Adjustments:Net unrealized (gains) losses on trading securities(4,898)1,813 (3,866)1,814 Net unrealized (gains) losses on derivatives4,829 (2,592)5,871 (3,037)Net unrealized (gains) losses on residential loans in securitization trusts and non-recourse securitization obligation(546)2,579 (16,204)(2,568)Net unrealized (gains) losses on residential loans2,191 (4,431)(850)(9,502)Net unrealized (gains) losses on commercial loans— (27)— (49)Stock compensation expense296 630 533 1,260 Distributable Earnings$2,639 $(2,301)$6,782 $519 

Distributable Earnings Return on Average Equity

Distributable Earnings Return on Average Equity is a