Angel Oak Mortgage Reports Q3 2026 GAAP Net Loss Amid Valuation Declines
Angel Oak Mortgage (AOMR) reported a GAAP net loss of $16.7 million, or $0.72 per diluted share, for the third quarter of 2026. The loss was primarily driven by $20.9 million in realized and unrealized losses on mortgage loans and derivatives resulting from upward shifts in the yield curve and wider market spreads. Despite the GAAP loss, distributable earnings rose to $6.4 million ($0.28 per diluted share) compared to $500,000 in the prior year. The company's book values saw significant declines, with GAAP book value dropping 11.5% to $8.97 per share and economic book value falling 6.5% to $11.45 per share. Management noted that higher interest rates have pressured asset valuations in the non-QM and fixed income markets. However, the company maintains a strong liquidity position with $49.1 million in cash and $1 billion in undrawn loan financing capacity.
Topics: Book Value Distributable Earnings GAAP Net Loss Loan Purchases Net Interest Income Securitization