Earnings release
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NEWS RELEASE Angel Oak Mortgage REIT, Inc. Reports Second Quarter 2026 Financial Results 2026-08-04 ATLANTA--(BUSINESS WIRE)-- Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) (the “Company,” “we,” and “our”), a leading real estate nance company focused on acquiring and investing in rst and second lien non- QM loans and other mortgage-related assets in the U.S. mortgage market, today reported nancial results for the quarter ended June 30, 2026. Second Quarter and Year to Date 2026 Highlights Q2 2026 GAAP net income of $3.4 million, or $0.14 per diluted share of common stock. Q2 2026 net interest income of $10.7 million, an increase of 8% versus Q2 2025 net interest income of $9.9 million. Net interest income of $22.9 million for the six months ended June 30, 2026, an increase of 14.1% compared to the six months ended June 30, 2025. Q2 2026 GAAP book value of $10.13 per share and economic book value of $12.24 per share, decreases of 1.7% and 0.3%, respectively, compared to the rst quarter of 2026. Q2 2026 Distributable Earnings of $9.0 million, or $0.37 per diluted share of common stock. Declared a dividend of $0.32 per share of common stock, which will be paid on August 28, 2026, to common stockholders of record as of August 21, 2026. Sreeni Prabhu, Chief Executive O cer and President of Angel Oak Mortgage REIT, Inc., said, “Our second quarter results demonstrated resilience amid an uncertain macroeconomic environment, highlighted by year-to-date growth of 21% in interest income and 14% in net interest income. Importantly, these results were supported by decisive actions we took during the quarter to strengthen the return pro le, liquidity, and long-term durability of 1
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our portfolio. We monetized delevered retained bonds from a legacy securitization and redeployed that capital into higher-yielding newly originated loans, repurchased approximately $15 million of common stock from a pre-IPO investor at accretive levels, and secured additional spread reductions on our largest warehouse nancing facility. Together, these opportunistic, prudent, and value-oriented actions demonstrate the discipline of our approach and the di erentiated strengths of the Angel Oak platform. Looking ahead, we remain focused on the factors within our control: maintaining disciplined credit, expanding earnings, and staying active in the securitization market.” Portfolio and Investment Activity During the quarter ended June 30, 2026, we purchased $204 million of newly-originated, current market coupon non-QM residential mortgage loans and home equity lines of credit ("HELOCs"), with a weighted average coupon of 7.34%, weighted average combined loan-to-value ratio (“CLTV”) of 70.5% and non-zero weighted average credit score of 759. As of June 30, 2026, the weighted average coupon of our residential whole loans portfolio was 7.51%, marking a 13 basis point increase compared to December 31, 2025. Subsequent to the quarter ended June 30, 2026, in July 2026, we issued AOMT 2026-3, a $279.6 million scheduled unpaid principal balance securitization backed by a pool of residential mortgage loans. We issued AOMT 2026-3 as the sole contributor in the securitization. We used the proceeds to repay outstanding debt of approximately $247.4 million, and the $22.3 million of cash released was used for new loan purchases and operational purposes. Additionally, subsequent to the quarter ended June 30, 2026, in August 2026, we participated in AOMT 2026- HB1, a $221.4 million scheduled unpaid principal balance securitization backed by HELOCs, contributing loans with a scheduled unpaid principal balance of $71.2 million. Capital Markets Activity As of June 30, 2026, the Company was a party to four loan nancing lines which permit borrowings in an aggregate amount of up to $1.3 billion, of which approximately $365 million was drawn, leaving capacity of approximately $0.9 billion for new loan purchases. Balance Sheet Target assets totaled $2.9 billion as of June 30, 2026 The Company held residential mortgage whole loans awaiting securitization with fair value of $438.8 million as of June 30, 2026. As of June 30, 2026, the Company's recourse debt to equity ratio was 2.3x. The Company's recourse debt to equity ratio decreased to 1.0x following the AOMT 2026-3 and AOMT 2026-HB1 securitizations. 2
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Dividend On August 4, 2026, the Company declared a dividend of $0.32 per share of common stock, which will be paid on August 28, 2026, to common stockholders of record as of August 21, 2026. Conference Call and Webcast Information The Company will host a live conference call and webcast today, August 4, 2026 at 8:30 a.m. Eastern time. To listen to the live webcast, go to the Investors section of the Company’s website at www.angeloakreit.com at least 15 minutes prior to the scheduled start time in order to register and install any necessary audio software. To Participate in the Telephone Conference Call: Dial in at least 15 minutes prior to start time. Domestic: 1-800-717-1738 International: 1-646-307-1865 Conference Call Playback: Domestic: 1-844-512-2921 International: 1-412-317-6671 Pass code: 1143169 The playback can be accessed through August 18, 2026. Non-GAAP Metrics Distributable Earnings is a non ‑ GAAP measure and is de ned as net income (loss) allocable to common stockholders as calculated in accordance with generally accepted accounting principles in the United States of America (“GAAP”), excluding (1) unrealized gains and losses on our aggregate portfolio, (2) impairment losses, (3) extinguishment of debt, (4) non-cash equity compensation expense, (5) the incentive fee earned by Falcons I, LLC, our external manager (our “Manager”), (6) realized gains or losses on swap terminations and (7) certain other nonrecurring gains or losses. We believe that the presentation of Distributable Earnings provides investors with a useful measure to facilitate comparisons of nancial performance among our real estate investment trust (“REIT”) peers, but has important limitations. We believe Distributable Earnings as described above helps evaluate our nancial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings may di er from the 3
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methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings may not be comparable to similar measures presented by other REITs. Distributable Earnings Return on Average Equity is a non-GAAP measure and is de ned as annual or annualized Distributable Earnings divided by average total stockholders’ equity. We believe that the presentation of Distributable Earnings Return on Average Equity provides investors with a useful measure to facilitate comparisons of nancial performance among our REIT peers, but has important limitations. Additionally, we believe Distributable Earnings Return on Average Equity provides investors with additional detail on the Distributable Earnings generated by our invested equity capital. We believe Distributable Earnings Return on Average Equity as described above helps evaluate our nancial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distributable Earnings Return on Average Equity should not be viewed in isolation and is not a substitute for net income computed in accordance with GAAP. Our methodology for calculating Distributable Earnings Return on Average Equity may di er from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings Return on Average Equity may not be comparable to similar measures presented by other REITs. Economic book value is a non-GAAP nancial measure of our nancial position. To calculate our economic book value, the portions of our non-recourse nancing obligation held at amortized cost are adjusted to fair value. These adjustments are also re ected in our end of period total stockholders’ equity. Management considers economic book value to provide investors with a useful supplemental measure to evaluate our nancial position as it re ects the impact of fair value changes for our legally held retained bonds, irrespective of the accounting model applied for GAAP reporting purposes. Economic book value does not represent and should not be considered as a substitute for book value per share of common stock or stockholders’ equity, as determined in accordance with GAAP, and our calculation of this measure may not be comparable to similarly titled measures reported by other companies. Forward-Looking Statements This press release contains certain forward-looking statements that are subject to various risks and uncertainties, including, without limitation, statements relating to the performance of the Company’s investments. Forward- looking statements are generally identi able by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “believe,” “could,” “project,” “predict,” “continue,” or by the negative of these words and phrases or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe existing or future plans and strategies, contain projections of results of operations, liquidity and/or nancial condition, or state other forward- looking information. The Company’s ability to predict future events or conditions or their impact or the actual e ect 4
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of existing or future plans or strategies is inherently uncertain. Although the Company believes that such forward- looking statements are based on reasonable assumptions, actual results and performance in the future could di er materially from those set forth in or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward ‐ looking statements, which re ect the Company’s views only as of the date of this press release. Additional information concerning factors that could cause actual results and performance to di er materially from these forward-looking statements is contained from time to time in the Company’s lings with the Securities and Exchange Commission. Except as required by applicable law, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward ‐ looking statements. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise. About Angel Oak Mortgage REIT, Inc. Angel Oak Mortgage REIT, Inc. is a real estate nance company focused on acquiring and investing in rst and second lien non-QM loans and other mortgage-related assets in the U.S. mortgage market. The Company’s objective is to generate attractive risk-adjusted returns for its stockholders through cash distributions and capital appreciation across interest rate and credit cycles. The Company is externally managed and advised by an a liate of Angel Oak Capital Advisors, LLC, which, collectively with its a liates, is a leading alternative credit manager with market leadership in mortgage credit that includes asset management, lending, and capital markets. Additional information about the Company is available at www.angeloakreit.com Angel Oak Mortgage REIT, Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (in thousands, except for share and per share data) Three Months EndedSix Months Ended June 30, 2026June 30, 2025June 30, 2026June 30, 2025INTEREST INCOME, NET Interest income $ 41,398$ 35,094$ 82,092$ 67,961 Interest expense 30,656 25,154 59,240 47,934 NET INTEREST INCOME$ 10,742$ 9,940$ 22,852$ 20,027 REALIZED AND UNREALIZED GAINS (LOSSES), NET Net realized gain (loss) on mortgage loans, derivative contracts, RMBS,and CMBS $ 1,477$ (2,499) $ (1,244) $ (5,681)Net unrealized gain (loss) on trading securities, mortgage loans, portionof debt at fair value option, and derivative contracts(5,217) (1,576) (16,808) 15,049 TOTAL REALIZED AND UNREALIZED GAINS (LOSSES),NET $ (3,740) $ (4,075) $ (18,052) $ 9,368 EXPENSES Operating expenses $ 1,569$ 1,334$ 3,225$ 2,536Operating expenses incurred with a liate555 453 1,120 869Stock compensation 423 296 847 533Securitization costs — 1,866 1,402 1,866 Management fee incurred with a liate1,102 1,149 2,231 2,293 Total operating expenses $ 3,649$ 5,098$ 8,825$ 8,097 NET INCOME (LOSS) ALLOCABLE TO COMMONSTOCKHOLDERS $ 3,353$ 767$ (4,025) $ 21,298(3304) (491) 1094 (1186) 5
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Other comprehensive income (loss)(3,304) (491) 1,094 (1,186) TOTAL COMPREHENSIVE INCOME (LOSS)$ 49$ 276$ (2,931) $ 20,112 Basic earnings (loss) per common share$ 0.14$ 0.03$ (0.17) $ 0.90Diluted earnings (loss) per common share$ 0.14$ 0.03$ (0.17) $ 0.89 Weighted average number of common sharesoutstanding: Basic 23,955,24323,524,73524,354,07923,460,798Diluted 24,408,08523,787,82324,354,07923,719,650 Angel Oak Mortgage REIT, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except for share and per share data) As of: June 30, 2026December 31, 2025ASSETS Residential mortgage loans - at fair value$ 438,790$ 294,134Residential mortgage loans in securitization trusts - at fair value2,132,720 2,076,776RMBS - at fair value 308,086 280,005Cash and cash equivalents 48,629 41,619Restricted cash 3,426 3,666Principal and interest receivable 16,464 10,354TBA securities and interest rate futures contracts - at fair value1,941 240 Other assets 41,456 42,984 Total assets $ 2,991,512$ 2,749,778 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIESNotes payable $ 364,599$ 218,757Non-recourse securitization obligation, collateralized by residential mortgageloans in securitization trusts (see Note 2)1,968,763 1,915,321Securities sold under agreements to repurchase70,540 54,041Senior unsecured notes 89,480 89,023TBA securities and interest rate futures contracts - at fair value452 32Due to broker 255,867 198,191Accrued expenses 3,665 2,021Accrued expenses payable to a liate 439 783Interest payable 1,986 3,423 Management fee payable to a liate 856 663 Total liabilities $ 2,756,647$ 2,482,255 Commitments and contingenciesSTOCKHOLDERS' EQUITYCommon stock, $0.01 par value. As of June 30, 2026: 350,000,000 sharesauthorized, 23,178,979 shares issued and outstanding. As of December 31, 2025:350,000,000 shares authorized, 24,914,647 shares issued and outstanding.230 249Additional paid-in capital 460,442 474,577Accumulated other comprehensive income (loss)(220) (1,314) Retained earnings (de cit) (225,587) (205,989) Total stockholders' equity $ 234,865$ 267,523 Total liabilities and stockholders' equity$ 2,991,512$ 2,749,778 Angel Oak Mortgage REIT, Inc. Reconciliation of Net Income (Loss) to Distributable Earnings and Distributable Earnings Return on Average Equity (Unaudited)Three Months EndedSix Months Ended June 30, 2026June 30, 2025June 30, 2026June 30, 2025 (in thousands) Net income (loss) allocable to common stockholders$ 3,353$ 767$ (4,025) $ 21,298Adjustments:Net unrealized (gains) losses on trading securities(638) (4,898) 1,514 (3,866)N lid( i )l di i 2422 4829 (1281) 5871 6
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Net unrealized (gains) losses on derivatives2,422 4,829 (1,281) 5,871Net unrealized (gains) losses on residential loans in securitization trustsand non-recourse securitization obligation1,958 (546) 11,120(16,204)Net unrealized (gains) losses on residential loans1,624 2,191 5,604 (850)Net unrealized (gains) losses on commercial loans(149) — (149) — Stock compensation expense 423 296 847 533 Distributable Earnings$ 8,993$ 2,639$ 13,630$ 6,782 Three Months EndedSix Months Ended June 30, 2026June 30, 2025June 30, 2026June 30, 2025 ($ in thousands)Annualized Distributable Earnings35,972 10,556 27,260 13,564Average total stockholders’ equity245,883248,934253,096245,612Distributable Earnings Return on Average Equity14.6 % 4.2 % 10.8 % 5.5 % Angel Oak Mortgage REIT, Inc. Reconciliation of Stockholders’ Equity to Stockholders’ Equity Including Economic Book Value Adjustments and Economic Book Value per Share of Common Stock (Unaudited)June 30,2026March 31,2026December31, 2025September30, 2025June 30,2025 (in thousands, except for share and per share data)GAAP total stockholders’ equity$ 234,865$ 256,902$ 267,523$ 264,165$ 246,389 Adjustments: Fair value adjustment for securitized debt held at amortized cost48,83348,95848,78952,77061,846 Stockholders’ equity including economic book value adjustments283,698$ 305,860$ 316,312$ 316,935$ 308,235 Number of shares of common stock outstanding at period end23,178,97924,914,64724,914,64724,914,03523,765,202Book value per share of common stock10.13$ 10.31$ 10.74$ 10.60$ 10.37Economic book value per share of common stock12.24$ 12.28$ 12.70$ 12.72$ 12.97 Investors: investorrelations@angeloakreit.com 855-502-3920 IR Agency Contact: Nick Teves or Joseph Caminiti, Alpha IR Group 312-445-2870 AOMR@alpha-ir.com Company Contact: KC Kelleher, Head of Corporate Finance & Investor Relations 404-528-2684 kc.kelleher@angeloakcapital.com Source: Angel Oak Mortgage REIT, Inc. 7