Angel Oak Mortgage REIT (AOMR) has reported its full-year financial results for 2022, revealing a total GAAP net loss of $187.8 million ($7.65 per share) for the year. However, distributable earnings were $19.4 million or $0.78 per share. Despite the year’s extreme interest rate volatility and wider credit spreads, AOMR CEO Sreeni Prabhu said that the company had gained positive momentum in Q4 2022, which has carried over into 2023.

AOMR has made significant progress against its strategic plan, including the sale of certain non-QM residential mortgage loans with a purchase price of $252.7 million in November, which resulted in $221.2 million of warehouse debt being repaid. In addition, AOMR sold $7 million worth of commercial loans to focus on its non-QM strategy. The company also accomplished two securitizations of residential non-QM loans, with a combined unpaid principal balance of $722.3 million.

Angel Oak Mortgage REIT’s portfolio of residential mortgage loans and other assets grew to $2.9 billion as of December 31, 2022, marking a 28% increase from the previous year. Throughout 2023, AOMR intends to resume acquiring newly originated, higher-coupon loans and carrying out securitizations.

Meanwhile, long-time executive Dory Black has resigned as general counsel and secretary, and David Gordon has replaced her. The company has stated that Black’s resignation was not due to any disagreement with management or the board of directors.

By reducing its whole loan warehouse debt by 51% and the mark-to-market portion of its total warehouse debt by 62% since Q3, AOMR has strengthened its capital structure, allowing it to weather volatility.

Overall, despite reporting a net loss for the year, AOMR’s strategic plan to reposition its portfolio, improve liquidity, and reduce risk has resulted in positive momentum and progress toward achieving its goals.