Earnings release
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NEWS RELEASE Angel Oak Mortgage REIT, Inc. Reports Third Quarter 2026 Financial Results 2026-11-03 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 September 30, 2026. Third Quarter and Year to Date 2026 Highlights Q3 2026 GAAP net loss of $(16.7) million, or $(0.72) per diluted share of common stock. Q3 2026 net interest income of $10.2 million, an increase of 55bps versus Q3 2025 net interest income. Net interest income of $33.1 million for the nine months ended September 30, 2026, an increase of 9.5% compared to the nine months ended September 30, 2025. Q3 2026 GAAP book value of $8.97 per share and economic book value of $11.45 per share, decreases of 11.5% and 6.5%, respectively, compared to the second quarter of 2026. Q3 2026 Distributable Earnings of $6.4 million, or $0.28 per diluted share of common stock. Declared a dividend of $0.32 per share of common stock, which will be paid on November 30, 2026, to common stockholders of record as of November 23, 2026. Sreeni Prabhu, Chief Executive O cer and President of Angel Oak Mortgage REIT, Inc., said, “During the third quarter, we completed two securitizations early in the period, ahead of the bulk of the increase in rates. These transactions underscore the bene ts of our consistent, deliberate approach to securitizations, which remains an important component of our nancing and risk management strategy. While the higher-rate environment has created near-term pressure on portfolio valuations and what we believe to be a short term squeeze on the 1
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potential returns on new investments, we remain con dent in the underlying credit performance of our portfolio. We continue to deploy capital selectively and maintain the disciplined underwriting standards that have guided our strategy, with a focus on preserving long-term credit performance rather than pursuing incremental returns in a more challenging market.” Portfolio and Investment Activity During the quarter ended September 30, 2026, we purchased $233 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 7.29%, weighted average combined loan-to-value ratio (“CLTV”) of 69.8% and non-zero weighted average credit score of 758. As of September 30, 2026, the weighted average coupon of our residential whole loans portfolio was 7.21%, marking a 17 basis point decrease compared to December 31, 2025. Capital Markets Activity As of September 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 $255 million was drawn, leaving capacity of approximately $1 billion for new loan purchases. Balance Sheet Target assets totaled $2.8 billion as of September 30, 2026. The Company held residential mortgage whole loans awaiting securitization with fair value of $303.7 million as of September 30, 2026. As of September 30, 2026, the Company's recourse debt to equity ratio was 2X. The Company's recourse debt to equity ratio decreased to approximately 1.2X following the AOMT 2026-6 securitization in October 2026. Dividend On November 3, 2026, the Company declared a dividend of $0.32 per share of common stock, to be paid on November 30, 2026 to common stockholders of record as of November 23, 2026. Conference Call and Webcast Information The Company will host a live conference call and webcast today, November 3, 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. 2
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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: 1177953 The playback can be accessed through November 17, 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 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 3
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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 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. 4
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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 EndedNine Months Ended September30, 2026September30, 2025September30, 2026September30, 2025INTEREST INCOME, NET Interest income $ 42,459$ 36,659$ 124,551$ 104,620 Interest expense 32,22326,47991,46474,414 NET INTEREST INCOME$ 10,236$ 10,180$ 33,087$ 30,206 REALIZED AND UNREALIZED GAINS (LOSSES), NET Net realized gain (loss) on mortgage loans, derivative contracts, RMBS, andCMBS $ 1,757$ (6,557) $ 513$ (12,238)Net unrealized gain (loss) on mortgage loans, portion of debt at fair valueoption, derivative contracts, and trading securities(22,619) 11,280(39,428) 26,329 TOTAL REALIZED AND UNREALIZED GAINS (LOSSES), NET$ (20,862) $ 4,723$ (38,915) $ 14,091 EXPENSES Operating expenses $ 2,105$ 1,117$ 5,331$ 3,653Operating expenses incurred with a liate559 510 1,678 1,379Stock compensation 459 398 1,305 930Securitization costs 1,833 — 3,235 1,866 Management fee incurred with a liate1,091 1,161 3,322 3,454 Total operating expenses $ 6,047$ 3,186$ 14,871$ 11,282 INCOME (LOSS) BEFORE INCOME TAXES$ (16,673) $ 11,717$ (20,699) $ 33,015 Income tax expense (bene t) — 307 — 307 NET INCOME (LOSS) ALLOCABLE TO COMMONSTOCKHOLDERS $ (16,673) $ 11,410$ (20,699) $ 32,708 Other comprehensive income (loss)(1,857) 3,665 (765) 2,479 TOTAL COMPREHENSIVE INCOME (LOSS)$ (18,530) $ 15,075$ (21,464) $ 35,187 Basic earnings (loss) per common share$ (0.72) $ 0.49$ (0.87) $ 1.40Diluted earnings (loss) per common share$ (0.72) $ 0.46$ (0.87) $ 1.36 Weighted average number of common shares outstanding: Basic 23,167,43623,043,58723,957,07723,320,200Diluted 23,167,43624,560,88123,957,07724,014,840 Angel Oak Mortgage REIT, Inc.Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)(Unaudited) (in thousands, except for share and per share data) Af 5
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As of: September30, 2026December31, 2025ASSETS Residential mortgage loans - at fair value $ 303,713$ 294,134Residential mortgage loans in securitization trusts - at fair value2,273,5832,076,776RMBS - at fair value 209,178280,005Cash and cash equivalents 49,130 41,619Restricted cash — 3,666Principal and interest receivable 12,543 10,354TBA securities and interest rate futures contracts - at fair value5,138 240 Other assets 44,905 42,984 Total assets $ 2,898,190$ 2,749,778 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIESNotes payable $ 255,027$ 218,757Non-recourse securitization obligation, collateralized by residential mortgage loans in securitization trusts (seeNote 2) 2,118,4341,915,321Securities sold under agreements to repurchase65,068 54,041Senior unsecured notes 89,708 89,023TBA securities and interest rate futures contracts - at fair value— 32Due to broker 154,696198,191Accrued expenses 2,787 2,021Accrued expenses payable to a liate 634 783Interest payable 2,043 3,423 Management fee payable to a liate 40 663 Total liabilities $ 2,688,437$ 2,482,255 STOCKHOLDERS' EQUITYCommon stock, $0.01 par value. As of September 30, 2026: 350,000,000 shares authorized, 23,395,874 sharesissued and outstanding. As of December 31, 2025: 350,000,000 shares authorized, 24,914,647 shares issued andoutstanding. $ 232$ 249Additional paid-in capital 461,477474,577Accumulated other comprehensive income (loss)(2,077) (1,314) Retained earnings (de cit) (249,879) (205,989) Total stockholders' equity $ 209,753$ 267,523 Total liabilities and stockholders' equity $ 2,898,190$ 2,749,778 Angel Oak Mortgage REIT, Inc.Reconciliation of Net Income (Loss) to Distributable Earningsand Distributable Earnings Return on Average Equity(Unaudited)Three Months EndedNine Months Ended September30, 2026September30, 2025September30, 2026September30, 2025 (in thousands) Net income (loss) allocable to common stockholders$ (16,673) $ 11,410$ (20,699) $ 32,708Adjustments:Net unrealized (gains) losses on trading securities(1,012) 2,005 502 (1,861)Net unrealized (gains) losses on derivatives(3,649) (4,990) (4,929) 881Net unrealized (gains) losses on residential loans in securitization trustsand non-recourse securitization obligation22,411 (3,995) 33,531(20,199)Net unrealized (gains) losses on residential loans4,869 (4,299) 10,472(5,149)Net unrealized (gains) losses on commercial loans— — (149) — Stock compensation expense 459 398 1,305 930 Distributable Earnings$ 6,405$ 529$ 20,033$ 7,310 Three Months EndedNine Months Ended September 30,2026September 30,2025September 30,2026September 30,2025 ($ in thousands)Annualized Distributable Earnings$ 25,620$ 2,116$ 26,711$ 9,747A l khld’ i $ 222309$ 255276$ 233840$ 250250 6
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Average total stockholders’ equity$ 222,309$ 255,276$ 233,840$ 250,250Distributable Earnings Return on Average Equity11.5% 0.8% 11.4% 3.9% Angel Oak Mortgage REIT, Inc.Reconciliation of Stockholders’ Equity to Stockholders’ Equity Including Economic Book Value Adjustmentsand Economic Book Value per Share of Common Stock(Unaudited)September30, 2026June 30, 2026March 31,2026December31, 2025September30, 2025 (in thousands, except for share and per share data)GAAP total stockholders’ equity$ 209,753$ 234,865$ 256,902$ 267,523$ 264,165 Adjustments: Fair value adjustment for securitized debt held at amortizedcost 58,111 48,83348,95848,78952,770 Stockholders’ equity including economic book valueadjustments $ 267,864283,698$ 305,860$ 316,312$ 316,935 Number of shares of common stock outstanding at periodend 23,395,87423,178,97924,914,64724,914,64724,914,035Book value per share of common stock$ 8.97$ 10.13$ 10.31$ 10.74$ 10.60Economic book value per share of common stock$ 11.45$ 12.24$ 12.28$ 12.70$ 12.72 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: Randy Chrisman, Chief Marketing O cer & Corporate Investor Relations O cer 404-953-4969 randy.chrisman@angeloakcapital.com Source: Angel Oak Mortgage REIT, Inc. 7