Angel Oak(AOMR) - 2022 Q4 - Annual Report

Financial Performance - Angel Oak Mortgage REIT, Inc. reported a total revenue of $XX million for the fiscal year, reflecting a YY$ZZ million in non-QM loans during the year, contributing to a total loan portfolio of $AA billion, which represents a BB$DD per share for the upcoming quarter, maintaining a consistent payout strategy[4]. Market Expansion and Strategy - Angel Oak plans to expand its market presence by entering into new geographic regions, targeting an increase in market share by EE% over the next year[5]. - The management highlighted a focus on securitization transactions, with expectations to execute deals worth $GG million in the next fiscal period[7]. - The company is exploring potential merger and acquisition opportunities to enhance its asset base and diversify its investment portfolio[10]. Risk Management and Financial Strategy - The company reported a decrease in default rates to HH$2.9 billion, primarily consisting of a portfolio of non-QM loans and other target assets[38]. - The financing strategy includes using loan financing lines for acquiring mortgage loans and securing long-term securitization funding[39]. - The company employs a flexible leverage strategy, which may vary based on market conditions and portfolio characteristics[41]. - The company employs short-term repurchase facilities to borrow against U.S. Treasury Securities and other securities in accordance with its investment guidelines[40]. Regulatory Compliance - The company intends to maintain its qualification as a REIT under the Internal Revenue Code and avoid regulation as an investment company under the Investment Company Act[28]. - The investment guidelines prohibit investments that would jeopardize REIT qualification or trigger investment company regulation[32]. - The company's strategy is adaptable to changing market environments while maintaining REIT qualification and exclusion from investment company regulation[36]. Competition and Market Environment - The company competes with various institutional investors, including other REITs and specialty finance companies, which may affect investment opportunities[42]. - Changes in the financial regulatory regime could allow banks and other financial institutions to compete for previously unavailable investment opportunities[43]. Company Structure and Operations - The company has no employees; all executive officers and personnel are employees of its external manager[44]. - The company commenced operations in September 2018 and completed its IPO on June 21, 2021, trading on the NYSE under the symbol "AOMR"[27]. - The company has elected to be taxed as a REIT for U.S. federal income tax purposes since the taxable year ended December 31, 2019[28]. - The company has participated in nine rated securitization transactions since its operations began in September 2018[38]. - The investment guidelines may be amended by the Board of Directors without prior notice to stockholders[35].