Angel Oak Mortgage REIT (NYSE: AOMR) posts higher 2025 income and book value
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Angel Oak Mortgage REIT, Inc. reported stronger fourth quarter and full-year 2025 results, driven by higher interest income and active securitization activity. For 2025, net interest income rose to
Distributable Earnings for 2025 were
GAAP book value was
The company purchased
Positive
- None.
Negative
- None.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): February 25, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
(Address of Principal Executive Offices and Zip Code)
Registrant’s telephone number, including area code: (404 ) 953-4900
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | ||||
Item 2.02 Results of Operations and Financial Condition.
On February 25, 2026, Angel Oak Mortgage REIT, Inc. (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2025. A copy of the press release is furnished as Exhibit 99.1 to this current report on Form 8-K and incorporated herein by reference.
Also on February 25, 2026, the Company will hold a teleconference and audio webcast to discuss its financial results for the quarter and year ended December 31, 2025. A copy of the supplementary materials that will be referred to on the teleconference and webcast, and which will be posted to the Company’s website, is furnished as Exhibit 99.2 to this current report on Form 8-K and incorporated herein by reference.
The information contained in this Item 2.02 and the attached Exhibits 99.1 and 99.2 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Item 2.02 and the attached Exhibits 99.1 and 99.2 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, unless it is specifically incorporated by reference therein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. | Description | |||||||
| Exhibit 99.1 | Press Release dated February 25, 2026 | |||||||
| Exhibit 99.2 | Supplementary Materials to be used during the webcast conference call on February 25, 2026 | |||||||
| Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 25, 2026 | ANGEL OAK MORTGAGE REIT, INC. | ||||||||||
By: /s/ Brandon Filson | |||||||||||
| Name: Brandon Filson | |||||||||||
| Title: Chief Financial Officer and Treasurer | |||||||||||
Angel Oak Mortgage REIT, Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial Results
ATLANTA – February 25, 2026 -- Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) (the “Company,” “we,” and “our”), a leading real estate finance company focused on acquiring and investing in non-QM loans and other mortgage-related assets in the U.S. mortgage market, today reported financial results for the year ended December 31, 2025.
Fourth Quarter 2025 Highlights
•Q4 2025 net interest income of $10.9 million demonstrates an increase of 10% versus Q4 2024 net interest income of $9.9 million.
•Q4 2025 GAAP net income of $11.3 million, or $0.45 per diluted share of common stock.
•Q4 2025 Distributable Earnings of $7.3 million, or $0.29 per diluted share of common stock.
•Declared dividend of $0.32 per share of common stock, to be paid on February 27, 2026 to common stockholders of record as of February 20, 2026.
Fiscal Year 2025 Highlights
•FY 2025 net interest income of $41.1 million demonstrates an increase of 11% versus FY 2024 net interest income of $36.9 million.
•FY 2025 GAAP net income of $44.0 million, or $1.80 per diluted share of common stock.
•FY 2025 Distributable Earnings of $14.6 million, or $0.59 per diluted share of common stock.
•GAAP book value of $10.74 per share of common stock as of December 31, 2025, an increase of 5.6% compared to December 31, 2024.
•Economic book value of $12.70 per share of common stock as of December 31, 2025, a decrease of 3.1% compared to December 31, 2024.
Sreeni Prabhu, Chief Executive Officer and President of Angel Oak Mortgage REIT, Inc., said "2025 was a year in which disciplined execution drove performance for AOMR. We delivered our second consecutive year of double digit percentage net interest income expansion, which, combined with sustained operating expense reductions and valuation tailwinds, drove growth in net income and book value, demonstrating the benefits of our methodical growth strategy amid a shifting rate environment. Additionally, we were active capital market participants, executing four securitizations in addition to exercising the call and subsequent re-securitization of two of our legacy securitizations, issuing senior unsecured notes in May of this year, and adding a new loan financing facility. Moving forward, we expect to continue to perform well across evolving credit and rate environments by selectively deploying capital, executing accretive securitizations, and focusing on the strongest risk‑reward opportunities to drive long-term income growth and shareholder value."
Portfolio and Investment Activity
•In 2025, the Company participated in four securitization transactions, contributing a total of $704 million of unpaid principal balance of residential mortgage loans. In the fourth quarter of 2025, the Company issued AOMT 2025-10, an approximately $274.3 million unpaid principal balance securitization backed by a pool of residential mortgage loans, to which we contributed the entire balance as the sole participant. Additionally in the fourth quarter of 2025, the Company contributed loans with an unpaid principal balance of $58.6 million to AOMT 2025-HB2, an approximately $281.4 million unpaid principal balance securitization backed by home equity revolving lines of credit ("HELOCs") on one‑to‑four family residential properties.
•The Company purchased $861.8 million of newly-originated, current market coupon non-QM residential mortgage loans, second lien mortgage loans, and HELOCs, with a weighted average coupon of 7.79%, weighted average combined loan-to-value ratio (“CLTV”) of 65.4% and weighted average credit score of 756.
•As of December 31, 2025, the weighted average interest rate of our residential whole loans portfolio was 7.38%.
Capital Markets Activity
•As of December 31, 2025, the Company was a party to four loan financing lines which permit borrowings in an aggregate amount of up to $1.3 billion, of which approximately $219 million is drawn, leaving capacity of approximately $1.0 billion for new loan purchases.
•In the fourth quarter of 2025, the Company and one of its subsidiaries entered into a $200.0 million repurchase facility with a global investment bank (“Global Investment Bank 4”) through the execution of a Master Repurchase Agreement and Securities Contract. The amount expected to be advanced by Global Investment Bank 4 is generally in line with other similar agreements that the Company has entered into. The interest rate is equal to the sum of (1) a spread of 1.60%, and (2) Term SOFR.
Balance Sheet
•Target assets totaled $2.7 billion as of December 31, 2025, an increase of 22% compared to December 31, 2024.
•The Company held residential mortgage whole loans with fair value of $294.1 million as of December 31, 2025.
•As of December 31, 2025, the Company's recourse debt to equity ratio was approximately 1.4x.
Dividend
On February 5, 2026, the Company declared a dividend of $0.32 per share of common stock, which will be paid on February 27, 2026, to common stockholders of record as of February 20, 2026.
Conference Call and Webcast Information
The Company will host a live conference call and webcast today, February 25, 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: 1-844-826-3033
International: 1-412-317-5185
For the conference call playback (which can be accessed through March 11, 2026), dial one of the following numbers:
Domestic: 1-844-512-2921
International: 1-412-317-6671
Pass code: 10205856
Non-GAAP Metrics
Distributable Earnings is a non‑GAAP measure and is defined 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 financial performance among our real estate investment trust (“REIT”)
peers, but has important limitations. We believe Distributable Earnings as described above helps evaluate our financial 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 differ 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 defined 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 financial 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 financial 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 differ 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 financial measure of our financial position. To calculate our economic book value, the portions of our non-recourse financing obligation held at amortized cost are adjusted to fair value. These adjustments are also reflected in our end of period total stockholders’ equity. Management considers economic book value to provide investors with a useful supplemental measure to evaluate our financial position as it reflects 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 identifiable 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 financial condition, or state other forward-looking information. The Company’s ability to predict future events or conditions or their impact or the actual effect 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 differ 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 reflect 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 differ materially from these forward-looking statements is contained from time to time in the Company’s filings 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 finance company focused on acquiring and investing in 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 affiliate of Angel Oak Capital Advisors, LLC, which, collectively with its affiliates, 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 Ended | Twelve Months Ended | ||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||
| INTEREST INCOME, NET | |||||||||||||||||||||||
| Interest income | $ | 39,034 | $ | 31,869 | $ | 143,655 | $ | 110,427 | |||||||||||||||
| Interest expense | 28,142 | 22,007 | 102,555 | 73,502 | |||||||||||||||||||
| NET INTEREST INCOME | $ | 10,892 | $ | 9,862 | $ | 41,100 | $ | 36,925 | |||||||||||||||
| REALIZED AND UNREALIZED GAINS (LOSSES), NET | |||||||||||||||||||||||
| Net realized gain (loss) on mortgage loans, derivative contracts, RMBS, and CMBS | $ | 1,374 | $ | 5,300 | $ | (10,863) | $ | (9,228) | |||||||||||||||
| Net unrealized gain (loss) on trading securities, mortgage loans, portion of debt at fair value option, and derivative contracts | 4,429 | (24,753) | 30,758 | 23,761 | |||||||||||||||||||
| TOTAL REALIZED AND UNREALIZED GAINS (LOSSES), NET | $ | 5,803 | $ | (19,453) | $ | 19,895 | $ | 14,533 | |||||||||||||||
| EXPENSES | |||||||||||||||||||||||
| Operating expenses | $ | 1,351 | $ | 1,505 | $ | 5,004 | $ | 6,786 | |||||||||||||||
| Operating expenses incurred with affiliate | 522 | 402 | 1,901 | 1,845 | |||||||||||||||||||
| Stock compensation | 423 | 177 | 1,354 | 2,041 | |||||||||||||||||||
| Securitization costs | 1,703 | 2,215 | 3,569 | 3,799 | |||||||||||||||||||
| Management fee incurred with affiliate | 1,158 | 1,166 | 4,612 | 4,976 | |||||||||||||||||||
| Total operating expenses | $ | 5,157 | $ | 5,465 | $ | 16,440 | $ | 19,447 | |||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | $ | 11,539 | $ | (15,056) | $ | 44,555 | $ | 32,011 | |||||||||||||||
| Income tax expense (benefit) | 224 | — | 531 | 3,261 | |||||||||||||||||||
| NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS | $ | 11,315 | $ | (15,056) | $ | 44,024 | $ | 28,750 | |||||||||||||||
| Other comprehensive income (loss) | (318) | (3,034) | 2,161 | 1,500 | |||||||||||||||||||
| TOTAL COMPREHENSIVE INCOME (LOSS) | $ | 10,997 | $ | (18,090) | $ | 46,185 | $ | 30,250 | |||||||||||||||
| Basic earnings (loss) per common share | $ | 0.46 | $ | (0.65) | $ | 1.85 | $ | 1.18 | |||||||||||||||
| Diluted earnings (loss) per common share | $ | 0.45 | $ | (0.65) | $ | 1.80 | $ | 1.17 | |||||||||||||||
| Weighted average number of common shares outstanding: | |||||||||||||||||||||||
| Basic | 24,756,801 | 23,390,029 | 23,682,302 | 24,179,039 | |||||||||||||||||||
| Diluted | 25,204,204 | 23,517,745 | 24,314,625 | 24,396,851 | |||||||||||||||||||
Angel Oak Mortgage REIT, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except for share and per share data)
| As of: | |||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| Residential mortgage loans - at fair value | $ | 294,134 | $ | 183,064 | |||||||
| Residential mortgage loans in securitization trusts - at fair value | 2,076,776 | 1,696,995 | |||||||||
| RMBS - at fair value | 280,005 | 300,243 | |||||||||
| Cash and cash equivalents | 41,619 | 40,762 | |||||||||
| Restricted cash | 3,666 | 2,131 | |||||||||
| Principal and interest receivable | 10,354 | 8,141 | |||||||||
| TBA securities and interest rate futures contracts - at fair value | 240 | 1,515 | |||||||||
| Other assets | 42,984 | 36,918 | |||||||||
| Total assets | $ | 2,749,778 | $ | 2,269,769 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| LIABILITIES | |||||||||||
| Notes payable | $ | 218,757 | $ | 129,459 | |||||||
| Non-recourse securitization obligations, collateralized by residential mortgage loans in securitization trusts (see Note 3) | 1,915,321 | 1,593,612 | |||||||||
| Securities sold under agreements to repurchase | 54,041 | 50,555 | |||||||||
| Senior unsecured notes | 89,023 | 47,740 | |||||||||
| TBA securities and interest rate futures contracts - at fair value | 32 | — | |||||||||
| Due to broker | 198,191 | 201,994 | |||||||||
| Accrued expenses | 2,021 | 2,291 | |||||||||
| Accrued expenses payable to affiliate | 783 | 766 | |||||||||
| Interest payable | 3,423 | 934 | |||||||||
| Income taxes payable | — | 2,785 | |||||||||
| Management fee payable to affiliate | 663 | 666 | |||||||||
| Total liabilities | $ | 2,482,255 | $ | 2,030,802 | |||||||
| Commitments and contingencies | |||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||
| Common stock, $0.01 par value. As of December 31, 2025: 350,000,000 shares authorized, 24,914,647 shares issued and outstanding. As of December 31, 2024: 90,000,000 shares authorized, 23,500,175 shares issued and outstanding. | $ | 249 | $ | 234 | |||||||
| Additional paid-in capital | 474,577 | 461,057 | |||||||||
| Accumulated other comprehensive income (loss) | (1,314) | (3,475) | |||||||||
| Retained earnings (deficit) | (205,989) | (218,849) | |||||||||
| Total stockholders' equity | $ | 267,523 | $ | 238,967 | |||||||
| Total liabilities and stockholders' equity | $ | 2,749,778 | $ | 2,269,769 | |||||||
Angel Oak Mortgage REIT, Inc.
Reconciliation of Net Income (Loss) to Distributable Earnings
and Distributable Earnings Return on Average Equity
(Unaudited)
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Net income (loss) allocable to common stockholders | $ | 11,315 | $ | (15,055) | $ | 44,024 | $ | 28,750 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Net unrealized (gains) losses on trading securities | 1,645 | 196 | (216) | 1,026 | |||||||||||||||||||
| Net unrealized (gains) losses on derivatives | 427 | 136 | 1,307 | (2,849) | |||||||||||||||||||
| Net unrealized (gains) losses on residential loans in securitization trusts and non-recourse securitization obligation | (8,380) | 23,560 | (28,578) | (5,313) | |||||||||||||||||||
| Net unrealized (gains) losses on residential loans | 1,879 | 839 | (3,271) | (16,598) | |||||||||||||||||||
| Net unrealized (gains) losses on commercial loans | — | 21 | — | (27) | |||||||||||||||||||
| Non-cash equity compensation expense | 423 | 177 | 1,354 | 2,041 | |||||||||||||||||||
| Distributable Earnings | $ | 7,309 | $ | 9,874 | $ | 14,620 | $ | 7,030 | |||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||
| Annualized Distributable Earnings | $ | 29,238 | $ | 39,500 | $ | 14,620 | $ | 7,030 | ||||||||||||||||||
| Average total stockholders’ equity | $ | 265,844 | $ | 252,033 | $ | 253,705 | $ | 255,860 | ||||||||||||||||||
| Distributable Earnings Return on Average Equity | 11.0 | % | 15.7 | % | 5.8 | % | 2.7 | % | ||||||||||||||||||
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)
| December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | ||||||||||||||||
| (in thousands, except for share and per share data) | ||||||||||||||||||||
| GAAP total stockholders’ equity | $ | 267,523 | $ | 264,165 | $ | 246,389 | $ | 251,480 | $ | 238,967 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Fair value adjustment for securitized debt held at amortized cost | 48,789 | 52,770 | 61,846 | 63,593 | 68,784 | |||||||||||||||
| Stockholders’ equity including economic book value adjustments | $ | 316,312 | $ | 316,935 | $ | 308,235 | $ | 315,073 | $ | 307,751 | ||||||||||
| Number of shares of common stock outstanding at period end | 24,914,647 | 24,914,035 | 23,765,202 | 23,500,175 | 23,500,175 | |||||||||||||||
| Book value per share of common stock | $ | 10.74 | $ | 10.60 | $ | 10.37 | $ | 10.70 | $ | 10.17 | ||||||||||
| Economic book value per share of common stock | $ | 12.70 | $ | 12.72 | $ | 12.97 | $ | 13.41 | $ | 13.10 | ||||||||||
Contacts
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
Fourth Quarter and Fiscal Year 2025 Earnings Supplement Angel Oak Mortgage REIT, Inc.
Important Notices 2 References herein to our “Company,” “AOMR,” “we,” “us,” or “our” refer to Angel Oak Mortgage REIT, Inc. and its subsidiaries, including Angel Oak Mortgage Operating Partnership, LP (the “Operating Partnership”), unless the context requires otherwise. Unless otherwise indicated, the term “Angel Oak” refers coll ectively to Angel Oak Capital Advisors, LLC (“Angel Oak Capital”) and its affiliates, including Falcons I, LLC, our external manager (our “Manager”), Angel Oak Companies, LP (“Angel Oak Companies ”), and the proprietary mortgage lending platform of its affiliate , Angel Oak Mortgage Solutions LLC ( “Angel Oak Mortgage Lending”). References to “AOMT” refer to Angel Oak Mortgage Trust, Ang el Oak’s securitization platform, including its subsidiaries and affiliates. References to “MM” mean in millions. References to “UPB” mean unpaid principal balance. References to “Closed End Seconds” mean residential mortgage loans that are subordinate to the primary or first lien mortgage loans on a residential property. References to “HELOCs” are defined as home equity lines o f credit, which are lines of credit secured by a residential property owned by the borrower. References to “CLTV” mean combined loan -to-value ratio, which is calculated as the primary or first lien mortgage loan amount plus any additional borrowings secured by the property (such as a Closed -End Second or HELOC) divided by the estimated value of the property. This presentation has been prepared by the Company solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The information contained in this presentation is provided to you as a summary as of the date of this presentation and is subject to change without not ice. The Company does not undertake any obligation to update this presentation to reflect actual events, circumstances or changes in expectations. This presentation was prepared based upon in formation believed to be reliable. However, the Company does not make any representation or warranty with regard to the accuracy or completeness of the information herein and some of such in formation was obtained from published sources or other third parties without independent verification. This presentation contains certain forward -looking statements that are subject to various risks and uncertainties, including, wi thout limitation, statements relating to the performance of our investments. Forward -looking statements are generally identifiable 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 projecti ons of results of operations, liquidity and/or financial condition or state other forward-looking information. Our ability to predict future events or conditions or their impact or the actual effect of existing or future plans or strategies is inherently uncertain. Although we believe that such forward -looking statements are based on reasonable assumptions, actual results and performance in the future could differ materially from those set forth in or implied by such forward -looking statements. Factors that could have a material adverse effect on future results and performance relative to those set forth in or implied by the related forward-looking statements, as well as on our business, financial condition, liquidity, results of operations and prospects, inc lude, but are not limited to: (see next page): Angel Oak Mortgage REIT, Inc.
Important Notices 3 • the effects of adverse conditions or developments in the financial markets and the economy upon our ability to acquire target assets such as non -qualified residential mortgage (“non- QM”) loans, particularly those sourced from Angel Oak’s proprietary mortgage lending platform, Angel Oak Mortgage Lending; • the level and volatility of prevailing interest rates and credit spreads; • changes in our industry, inflation, interest rates, business strategies, target assets, the debt or equity markets, the gener al economy (or in specific regions) or the residential real estate finance and real estate markets specifically; • general volatility of the markets in which we invest; • changes in the availability of attractive loans and other investment opportunities, including non -QM loans sourced from Angel Oak Mortgage Lending; • the ability of our Manager to locate suitable investments for us, manage our portfolio, and implement our strategy; • our ability to profitably execute securitization transactions; • our ability to obtain and maintain financing arrangements on favorable terms, or at all; • the adequacy of collateral securing our investments and a decline in the fair value of our investments; • the timing of cash flows, if any, from our investments; • the operating performance, liquidity, and financial condition of borrowers; • increased rates of default and/or decreased recovery rates on our investments; • changes in prepayment rates on our investments; • the departure of any of the members of senior management of the Company, our Manager, or Angel Oak; • the availability of qualified personnel; • conflicts with Angel Oak, including our Manager and its personnel, including our officers, and entities managed by Angel Oak; • events, contemplated or otherwise, such as acts of God, including hurricanes, wildfires, earthquakes, and other natural disas ters, including those resulting from global climate change, pandemics, acts of war or terrorism, the initiation or escalation of military conflicts, and others that may cause unanticipa ted and uninsured performance declines, disruptions in markets, and/or losses to us or the owners and operators of the real estate securing our investments; • the occurrence of certain geopolitical events (including global trade disputes related to tariffs) that affect the normal and peaceful course of international relations; • impact of and changes in governmental regulations, tax laws and rates, accounting principles and policies and similar matters ; • the level of governmental involvement in the U.S. mortgage market; • future changes with respect to the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation in the mor tgage market and related events, including the lack of certainty as to the future roles of these entities and the U.S. Government in the mortgage market and changes to legislation and regulations affecting these entities; • effects of hedging instruments on our target assets and our returns, and the degree to which our hedging strategies may or ma y not protect us from interest rate volatility; • our ability to make distributions to our stockholders in the future at the level contemplated by our stockholders or the mark et generally, or at all; • our ability to continue to qualify as a real estate investment trust for U.S. federal income tax purposes; and • our ability to maintain our exclusion from regulation as an investment company under the Investment Company Act of 1940, as a mended. Readers are cautioned not to place undue reliance on any of these forward -looking statements, which reflect our management’s vie ws only as of the date of this presentation. Actual results and performance may differ materially from those set forth in or implied by our forward -looking statements. New risks and uncertaint ies arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by applicable law, we assume no obligation, and do not intend to, update or otherwise revise any of our forward -looking statements, whether as a result of new information, future events or otherwise. Angel Oak Mortgage REIT, Inc.
Q4 & FY 2025 Highlights & Financial Results 4
Financial Results 5 FY 2025 NII of $41.1MM versus FY 2024 NII of $36.9MM, an expansion of $4.2MM, or 11%, this marks the second straight year of double digit % expansion in NII FY 25 Net Interest Income (“NII”) Declared dividend of $0.32 / common share to be paid on February 27, 2026 Dividend GAAP Diluted EPS: $ 1.80 / common share Dist. EPS: $ 0.59 / common share FY 25 GAAP & Distributable Earnings per Share (“EPS”) 1 GAAP BV: $10.74 / common share Economic BV: $12.70 / common share FY 25 GAAP / Economic Book Value (“BV”) 1 1 See Appendix for definition and reconciliation to comparable GAAP metrics. 2 Based on % of unpaid principal balance that is 90+ days delinquent across Whole Loans, RMBS, and Residential Loans In Securitization Trust KEY COMMENTARY • Purchased $861.8MM of loans with a weighted average coupon (“WAC”) of 7.79%, a weighted average combined loan -to-value ratio (“CLTV”) of 65.4%, and a weighted average non-zero credit score of 756 in FY 2025 • GAAP Book Value increased 5.6% and Economic Book Value decreased 3.1% as of the end of 2025 versus the end of 2024 • In the fourth quarter, executed the AOMT 2025-10 securitization as the sole contributor of loans, contributing loans with a total unpaid principal balance of $274.3MM, and participated in the AOMT 2025-HB2 securitization, contributing HELOCs with an unpaid principal balance of $58.6 million • Participated in four securitization transactions in 2025, contributing a total of $704MM of unpaid principal balance • Exercised, along with our affiliates, the combined call rights on the AOMT 2019-2 and AOMT 2019-4 securitizations, and re -securitized the underlying loans in AOMT 2025-R1 (in which we do not hold any economic interest) • The weighted average 90+ day delinquency rate across residential whole loans, loans in securitization trust, and RMBS portfolios was 2.18% 2 as of the end of 2025, down from 2.43%2 as of the end of 2024 and down from 2.20% as of the end of the third quarter 2025 Angel Oak Mortgage REIT, Inc. Interest Income and Net Interest Income expanded by 30 % and 11%, respectively, in FY 2025 vs. FY 2024
Net Interest Income and Average Asset Balances 6Angel Oak Mortgage REIT, Inc. $000s Interest Income / Expense Average Balance Interest Income / Expense Average Balance Interest Income Residential Mortgage Loans 20,120 272,486$ 18,677$ 271,658$ Residential Loans in Securitization Trust 105,452 1,879,665$ 74,757 1,441,354 Commercial Loans 420 5,202$ 345 5,231 RMBS and Majority-Owned Affiliate 14,623 140,395$ 12,851 146,829 CMBS 990 5,275$ 1,520 6,276 US Treasury Securities 61 1,667$ 564 11,411 Other Interest Income 1,989 46,232$ 1,713 38,711 Total Interest Income 143,655$ 110,427$ Interest Expense Notes Payable 12,838$ 203,448$ 13,158$ 191,134$ Non-Recourse Securitization Obligation collateralized by Residential Mortgage Loans 77,948 1,747,061 54,262 1,360,602 Repurchase Facilities 3,631 62,436 3,808 61,060 Senior Unsecured Notes 8,138 73,023 2,274 21,986 Total Interest Expense 102,555$ 73,502$ Net Interest Income 41,100$ 36,925$ 2025 2024
Recourse Debt to Equity Trend 7 1 Recourse debt excludes Non -Recourse Financing Obligations, collateralized by residential loans in securitization trusts Notes Payable vs. Recourse Debt 1 to Equity Trend ($ millions) Angel Oak Mortgage REIT, Inc. KEY COMMENTARY ▪ As of December 31, 2025, our Recourse Debt to Equity Ratio was approximately 1.4x – Our Recourse Debt to Equity Ratio is expected to remain below 2.5x going forward $101 $333 $129 $360 $119 $343 $219 1.2x 1.8x 1.0x 2.3x 1.1x 1.9x 1.4x 0.9x 0.7x 3.0x 1.0x 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x $0 $200 $400 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Notes Payable Total Recourse Debt to Equity Recourse Debt to Equity excl. T-Bill Repurchase Agreements and/or Post Quarter-End Securitization Activity
AOMR 2025 -10 Securitization 8 KEY COMMENTARY • $274.3MM Securitization; Face Value of securities sold $260.6MM • 7.40% weighted average coupon of loans • The A1 through A3 tranches were sold as well as the majority of the M1 tranche; the Company retains the economics of the unsold tranches • Weighted average non-zero credit score: 759; weighted average CLTV: 70.1% 2025 -10 Securitization Details at Issuance Angel Oak Mortgage REIT, Inc. In October 2025, AOMR was the sole participant in the $274.3MM AOMT 2025 -10 securitization and contributed loans with a 7.40% Weighted Average Coupon Class Total Balance Balance Sold Initial Coupon Fair Market Value A1-A $166,109,000 $166,109,000 4.96% $166,105,811 A1-B $27,434,000 $27,434,000 4.96% $27,433,473 A2 $13,854,000 $13,854,000 5.16% $13,853,744 A3 $41,561,000 $41,561,000 5.37% $41,560,360 M1 $12,208,000 $11,660,000 5.72% $12,207,698 B1 $10,014,000 6.93% $9,779,006 B2 $2,880,000 6.93% $2,685,726 B3 $274,969 6.93% $240,296 XS $274,334,969 N/A $11,081,158 A-IO-S $271,652,750 N/A $1,875,137 Total $274,334,969 $260,618,000 $286,822,409
AOMR 2025 -HB2 Securitization 9 KEY COMMENTARY • $281.4MM Securitization; Face Value of securities sold $267.3MM • 10.70% weighted average coupon of loans • The A1 through M3 tranches were sold as well as the majority of the B1 tranche; the Company retains its proportional share of the economics of the unsold tranches • Weighted average non-zero credit score: 740; weighted average CLTV: 63.3% Angel Oak Mortgage REIT, Inc. In December 2025, AOMR participated in the $281.4MM AOMT 2025 -HB2 securitization; the weighted average coupon of Home Equity Lines of Credit (HELOCs) contributed to the deal was 10.7% Class Total Balance Balance Sold Initial Coupon Fair Market Value A1 $212,026,000 $212,026,000 5.69% $212,026,000 M1 $15,195,000 $15,195,000 6.24% $15,195,000 M2 $13,788,000 $13,788,000 6.54% $13,788,000 M3 $13,928,000 $13,928,000 6.84% $13,928,000 B1 $12,663,000 $12,381,000 7.84% $12,663,000 B2 $6,612,000 9.09% $6,612,000 B3 $7,176,254 13.85% $6,241,805 XS $281,388,254 7.64% $19,491,567 A-IO-S $281,388,254 N/A $717,343 Total $281,388,254 $267,318,000 $300,662,715 2025 -HB2 Securitization Details at Issuance
429 183 439 201 426 294 1,453 1,697 1,672 1,903 1,862 2,077 302 321 419 383 256 305 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Residential Whole Loans Residential Loans in Securitization Trust RMBS & Investment in MOA Target Asset Composition 10 1 Reflects Target Asset Balances as of quarter end, which includes Residential Loans, Residential Loans in Securitization Trust , RMBS, and Investment in majority -owned affiliate (“MOA”) Target Asset Composition 1 ($ millions) Angel Oak Mortgage REIT, Inc. • A $215MM increase in Residential Whole Loans in Securitization Trust and a $49MM increase in RMBS & Investment in MOA drove the majority of the increase in total Target Assets in Q4 2025 vs Q3 2025, offset by a decrease in Residential Whole Loans • Residential Whole Loans decreased and Residential Loans in Securitization Trust increased in the fourth quarter versus the third quarter due to securitization activity, offset by new loan purchases • The quarter over quarter increase in RMBS & Investment in MOA is driven by approximately $43MM more Whole Pool RMBS securities held short term at quarter end in Q4 2025 versus Q3 2025, as well as the 2025 -HB2 securitization Key Commentary 2,184 2,201 2,531 2,487 2,544 2, 676
GAAP Book Value per Share 11Angel Oak Mortgage REIT, Inc. $10.17 ($0.96) $1.39 $10.60 ($0.32) $0.46 $10.74 12/31/2024 BV 9/30/2025 BV BV Change 1 through Q3 2025 Dividends Paid through Q3 2025 1 Excluding quarterly dividend impact ▪ GAAP Book Value per share increased by $0.57, or 5.6%, as of the end of Q4 2025 versus the end of Q4 2024; GAAP Book Value per share increased by $0.14, or 1.3%, as of the end of Q4 2025 versus the end of Q3 2025 ▪ GAAP Book Value per Share increased by 18.2% in Q4 2025 versus Q4 2024 excluding our dividend; GAAP Book Value per Share increased by 4.3% in Q4 2025 versus Q3 2025 excluding our dividend GAAP Book Value Change Drivers & Highlights Note: All Book Value statistics represented on a per share basis Q4 2025 Dividend Q4 2025 BV Change 1 Q4 2025 BV
Economic Book Value 12Angel Oak Mortgage REIT, Inc. $13.10 ($0.96) $0.58 $12.72 ($0.32) $0.30 $12.70 1 Excluding quarterly dividend impact 2 See Appendix for definition and reconciliation to comparable GAAP metrics ▪ Economic Book Value per Share 2 decreased by $0.40, or 3.1%, as of the end of Q4 2025 versus the end of Q4 2024; Economic Book Value per Share 2 decreased by $0.02, or 0.2%, as of the end of Q4 2025 versus the end of Q3 2025 ▪ Economic Book Value per Share increased by 6.7% in Q4 2025 versus Q4 2024 excluding our dividend; Economic Book Value per Share increased by 2.3% in Q4 2025 versus Q3 2025 excluding our dividend Economic Book Value Growth Drivers & Highlights Note: All Book Value statistics represented on a per share basis Economic Book Value reflects the impact of fair value changes for sold bonds associated with securitized obligations collateralized by loans in securitization trusts 12/31/2024 EBV 9/30/2025 EBV EBV Change 1 through Q3 2025 Dividends Paid thru Q3 2025 Q4 2025 Dividend Q4 2025 EBV Change 1 Q4 2025 EBV
Distributable Earnings 13 Note: Please see Appendix for the Company’s definition of Distributable Earnings. Angel Oak Mortgage REIT, Inc. • Q4 2025 Distributable Earnings exclude a total of $4.4MM of unrealized gains, primarily driven by valuation increases to residential loans in securitization trusts and non -recourse securitization obligation, offset by unrealized losses on residential whole loans and trading securities • For FY 2025, Distributable Earnings exclude $30.8MM of unrealized gains, primarily driven by valuation increases to residenti al loans in securitization trusts and non -recourse securitization obligation, as well as unrealized gains on residential whole loan s and trading securities • Realized l osses associated with interest rate hedges against certain assets are included in Distributable Earnings, but the unrealized gains associated with increases in the valuation of those assets are excluded Key Commentary December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net income (loss) allocable to common stockholders 11,315$ (15,055)$ 44,024$ 28,750$ Adjustments: Net unrealized (gains) losses on trading securities 1,645 196 (216) 1,026 Net unrealized (gains) losses on derivatives 427 136 1,307 (2,849) Net unrealized (gains) losses on residential loans in securitization trusts and non-recourse securitization obligation (8,380) 23,560 (28,578) (5,313) Net unrealized (gains) losses on residential loans 1,879 839 (3,271) (16,598) Net unrealized (gains) losses on commercial loans - 21 - (27) Non-cash equity compensation expense 423 177 1,354 2,041 Distributable Earnings 7,309$ 9,874$ 14,620$ 7,030$ Three Months Ended Twelve Months Ended (in thousands)
Key Portfolio Statistics 14
Key Portfolio Statistics: Residential Loans 15 Residential Loans by Borrower Type RESIDENTIAL LOAN PORTFOLIO: Residential Loans represent individual loans awaiting securitization Total Fair Value : $294.1MM Weighted Average Coupon: 7.38% Weighted Average CLTV at Origination: 70.5% Weighted Average FICO Score at Loan Origination: 760 % of Loans 90+ Days Delinquent (based on Unpaid Principal Balance): 0.4% Residential Loan Geographic Diversification Residential Loan Portfolio Non-Zero Credit Score Distribution Residential Loan Portfolio Coupon Rate Distribution Angel Oak Mortgage REIT, Inc. As of December 31, 2025 No state in “Other” represents more than a 4% concentration of the residential mortgage loans that we owned directly as of December 31, 2025; percentages may not total to 100 % due to rounding 0 50 100 150 200 250 # o f Lo an s Credit Score 0 50 100 150 200 250 # o f Lo an s Coupon Rate (%)
60% 63% 66% 69% 72% 75% Q 2 2 0 2 2 Q 3 2 0 2 2 Q 4 2 0 2 2 Q 1 2 0 2 3 Q 2 2 0 2 3 Q 3 2 0 2 3 Q 4 2 0 2 3 Q 1 2 0 2 4 Q 2 2 0 2 4 Q 3 2 0 2 4 Q 4 2 0 2 4 Q 1 2 0 2 5 Q 2 2 0 2 5 Q 3 2 0 2 5 Q 4 2 0 2 5 FD ICF BS HELOC Key Portfolio Statistics: Residential Loans by Product Type Detail 16 Residential Loans by Product Angel Oak Mortgage REIT, Inc. Weighted Average Non -Zero Credit Score by Product Weighted Average CLTV by Product As of December 31, 2025 FD: Full Documentation, Just Missed Prime BS: Bank Statement Borrower ICF: Investor Loans Weighted Average Coupon by Product Investor Loans, 32% Just Missed Prime, 13% Loans Made to Bank Statement Borrowers, 44% HELOCs and Closed End Seconds, 11% 700 720 740 760 780 Q 2 2 0 2 2 Q 3 2 0 2 2 Q 4 2 0 2 2 Q 1 2 0 2 3 Q 2 2 0 2 3 Q 3 2 0 2 3 Q 4 2 0 2 3 Q 1 2 0 2 4 Q 2 2 0 2 4 Q 3 2 0 2 4 Q 4 2 0 2 4 Q 1 2 0 2 5 Q 2 2 0 2 5 Q 3 2 0 2 5 Q 4 2 0 2 5 FD ICF BS HELOC 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% Q 2 2 0 2 2 Q 3 2 0 2 2 Q 4 2 0 2 2 Q 1 2 0 2 3 Q 2 2 0 2 3 Q 3 2 0 2 3 Q 4 2 0 2 3 Q 1 2 0 2 4 Q 2 2 0 2 4 Q 3 2 0 2 4 Q 4 2 0 2 4 Q 1 2 0 2 5 Q 2 2 0 2 5 Q 3 2 0 2 5 Q 4 2 0 2 5 FD ICF BS HELOC
Key Portfolio Statistics: Loans in Securitization Trust 17 As of December 31, 2025 No state in “Other” represents more than a 3% concentration in the underlying collateral; percentages may not total to 100% due to rounding 1 Conditional Prepayment Rate (“CPR”) is a method of expressing the prepayment rate for a mortgage pool that assumes that a con stant fraction of the remaining principal is prepaid each month or year Loans in Securitization Trust Geographic Diversification Angel Oak Mortgage REIT, Inc. CA, 31% FL, 20% TX, 7% NY, 5% GA, 3% Other, 35% $000s 2021 2022 2023 2024 2025 UPB of loans 366,221$ 499,335$ 230,963$ 477,234$ 516,830$ 2,090,583$ Number of loans 967 1,210 519 1,127 1,124 4,947 Weighted Average Loan Coupon 4.75% 4.62% 4.48% 7.46% 7.45% 5.97% Average Loan Amount 379$ 413$ 445$ 423$ 460$ 424$ Weighted Average LTV at loan origination and deal date 64.3% 65.4% 66.0% 67.7% 69.6% 66.9% Weighted Average Credit Score at loan origination and deal date 747 744 736 744 757 747 Current 3 month CPR 1 12.8% 9.1% 7.7% 13.9% 17.0% 12.6% 90+ Delinquency (as a % of UPB) 2.5% 1.5% 3.2% 1.6% 0.7% 1.7% Total / Weighted Average Vintage
CA, 33% FL, 19% TX, 7% NY, 4% GA, 3% Other, 35% Key Portfolio Statistics: RMBS & Residential Loans in Sec. Trust 18 RMBS & RESIDENTIAL LOANS IN SECURITIZATION TRUST PORTFOLIO: Includes (1) legacy retained tranches of securitizations that AOMR was not a sole contributor to, (2) RMBS purchased in the secondary market (if any), and (3) Residential Loans in Securitization Trust. Total Fair Value: $2.159B Weighted Average Coupon1: 6.2% Weighted Average LTV1: 67.3% 90 Day Delinquency (as a % of UPB) 1: 2.28% As of December 31, 2025 No state in “Other” represents more than a 4% concentration of the underlying collateral 1 Based on UPB of entire RMBS and Residential Loans In Securitization Trust as of December 31, 2025 ; does not include Whole Pool RMBS. 2 As % of Original UPB. LTV Trend 1 Angel Oak Mortgage REIT, Inc. 90+ Day Delinquency Trend 1,2 Portfolio Geographic Diversification 1 67% 68% 69% 70% 71% 72% Mar 22 Jun 22 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 Sep 24 Dec 24 Mar 25 Jun 25 Sep 25 Dec 25 0% 2% 4% 6% 8% Jun 22 Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Mar 24 Jun 24 Sep 24 Dec 24 Mar 25 Jun 25 Sep 25
Appendix 19
Target approximately one securitization per quarter to lock in funding term and rates and provide capital for additional loan purchases Seek to consistently grow asset base of loans and securities to drive increasing returns Intend to d eclare quarterly dividends that balance shareholder income and long-term book value appreciation Effectively identify, assess, and act upon key opportunities and risks in appropriate markets AOMR is a business, not a trade – management will make key decisions in the best long -term interest of our shareholders The AOMR Model 20 Source and purchase high -quality, non-QM loans leveraging the infrastructure, scale, and expertise of the Angel Oak ecosystem Loan Acquisition Securitization Financing Growing Book Value Quarterly Dividend Holistic Portfolio Management Long-Term Focus AOMR seeks to generate strong risk -adjusted returns and long -term capital appreciation to deliver attractive total economic return to our shareholders Angel Oak Mortgage REIT, Inc.
AOMR Investment Strategy 21 ACQUIRE PREDOMINANTLY NON-QM LOANS SECURITIZE LOANS RETAIN PORTIONS OF SECURITIZATION REINVEST • Typically retain the bottom 5 -10% of market value of the securitization • Retention of subordinated and interest-only tranches can drive higher returns without additional financial leverage • Securitization enables us to: ‒ Secure a fixed cost of financing ‒ Replace largely mark -to-market financial leverage with term structural leverage • AOMR’s relationship with Angel Oak Companies enables AOMR to purchase high-quality loans tailored to its desired profile • Non-QM loans offer an attractive risk - adjusted return in a growing market segment • Utilize structural term leverage from securitizations, portfolio returns, and loan financing facilities to purchase high quality non-QM loans • Utilize the breadth and depth of Angel Oak to act upon key market opportunities and risks Our acquisition, securitization, and reinvestment processes enable us to consistently deliver on our business model Angel Oak Mortgage REIT, Inc.
Angel Oak Mortgage REIT, Inc. Illustrative Securitization Structure 22 Senior Bonds (AAA, AA, A rating) Interest Only Mezzanine Bonds (BBB, BB, B rating) ~85 - 90% of the deal Junior Equity (unrated) ~0 - 10% of the deal ~5 - 10% of the deal KEY CHARACTERISTICS • Senior and mezzanine bonds receive a fixed coupon • Junior bonds receive the net Weighted Average Coupon of collateral • Interest -only tranches receive remaining excess spread between the collateral pool and the coupon on the senior, mezzanine, and junior bonds ‒ This excess spread is sensitive to prepayments • Bonds can typically be called after two to three years • Angel Oak intends to retain bonds where it finds the best relative value, which may include Subordinated Bonds, Junior Equity (credit sensitive), and IO Bonds (prepayment sensitive) • Retaining these bonds creates a natural hedge in the portfolio as the B2 and B3 bonds tend to perform well in a faster prepayment environment, whereas the XS and AIOS interest only bonds tend to experience reduced cash flows
Income Statement (Unaudited) 23Angel Oak Mortgage REIT, Inc. (in thousands) December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 INTEREST INCOME, NET Interest income $ 39,034 $ 31,869 $ 143,655 $ 110,427 Interest expense 28,142 22,007 102,555 73,502 NET INTEREST INCOME 10,892 9,862 41,100 36,925 REALIZED AND UNREALIZED GAINS(LOSSES), NET Net realized gain (loss) on mortgage loans, derivative contracts, RMBS, and CMBS 1,374 5,300 (10,863) (9,228) Net unrealized gain (loss) on trading securities, mortgage loans, portion of debt at fair value option, and derivative contracts 4,429 (24,753) 30,758 23,761 TOTAL REALIZED AND UNREALIZED GAINS (LOSSES), NET 5,803 (19,453) 19,895 14,533 EXPENSES Operating expenses 1,351 1,505 5,004 6,786 Operating expenses incurred with affiliate 522 402 1,901 1,845 Stock compensation 423 177 1,354 2,041 Securitization costs 1,703 2,215 3,569 3,799 Management fee incurred with affiliate 1,158 1,166 4,612 4,976 TOTAL OPERATING EXPENSES 5,157 5,465 16,440 19,447 INCOME (LOSS) BEFORE INCOME TAXES 11,539 (15,056) 44,555 32,011 Income tax expense (benefit) 224 - 531 3,261 NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS $ 11,315 $ (15,056) $ 44,024 $ 28,750 Other comprehensive income (loss) (318) (3,034) 2,161 1,500 TOTAL COMPREHENSIVE INCOME (LOSS) $ 10,997 $ (18,090) $ 46,185 $ 30,250 For the Three Months Ended: For the Twelve Months Ended: (in thousands, except for share and per share data)
Consolidated Balance Sheet (Unaudited) 24Angel Oak Mortgage REIT, Inc. December 31, 2025 December 31, 2024 ASSETS Residential mortgage loans - at fair value $ 294,134 $ 183,064 Residential mortgage loans in securitization trusts - at fair value 2,076,776 1,696,995 RMBS - at fair value 280,005 300,243 Cash and cash equivalents 41,619 40,762 Restricted cash 3,666 2,131 Principal and interest receivable 10,354 8,141 TBA securities and interest rate futures contracts - at fair value 240 1,515 Other assets 42,984 36,918 Total assets $ 2,749,778 $ 2,269,769 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Notes payable $ 218,757 $ 129,459 Non-recourse securitization obligations, collateralized by residential loans in securitization trusts 1,915,321 1,593,612 Securities sold under agreements to repurchase 54,041 50,555 Senior unsecured notes 89,023 47,740 TBA securities and interest rate futures contracts - at fair value 32 - Due to broker 198,191 201,994 Accrued expenses 2,021 2,291 Accrued expenses payable to affiliate 783 766 Interest payable 3,423 934 Income taxes payable - 2,785 Management fee payable to affiliate 663 666 Total liabilities $ 2,482,255 $ 2,030,802 STOCKHOLDERS' EQUITY Common stock, $0.01 par value. As of December 31, 2025: 350,000,000 shares authorized, 24,914,647 shares issued and outstanding. As of December 31, 2024: 350,000,000 shares authorized, 23,500,175 shares issued and outstanding 249 234 Additional paid-in capital 474,577 461,057 Accumulated other comprehensive (loss) (1,314) (3,475) Retained earnings (deficit) (205,989) (218,849) Total stockholders' equity $ 267,523 $ 238,967 Total liabilities and stockholders' equity $ 2,749,778 $ 2,269,769 As of: (in thousands, except for share data)
Appendix: GAAP Reconciliation of Distributable Earnings (Unaudited) 25 Distributable Earnings is a non -GAAP measure and is defined as net income (loss) allocable to common stockholders as calculated in accordance with 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 our Manager, (6) realized gains or losses on swap terminations and (7) certain other nonrecurring gains or losses. We believe that the presentation of Distri butable Earnings provides investors with a useful measure to facilitate comparisons of financial performance among our REIT peers but has important limitations. We believe Distributable Earnings as described above helps evaluate our financial performance without the impact of certain transactions but is of limited usefulness as an analytical tool. Therefore, Distrib utable 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 differ 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 s imi lar measures presented by other REITs. Angel Oak Mortgage REIT, Inc. December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Net income (loss) allocable to common stockholders 11,315$ (15,055)$ 44,024$ 28,750$ Adjustments: Net unrealized (gains) losses on trading securities 1,645 196 (216) 1,026 Net unrealized (gains) losses on derivatives 427 136 1,307 (2,849) Net unrealized (gains) losses on residential loans in securitization trusts and non-recourse securitization obligation (8,380) 23,560 (28,578) (5,313) Net unrealized (gains) losses on residential loans 1,879 839 (3,271) (16,598) Net unrealized (gains) losses on commercial loans - 21 - (27) Non-cash equity compensation expense 423 177 1,354 2,041 Distributable Earnings 7,309$ 9,874$ 14,620$ 7,030$ Three Months Ended Twelve Months Ended (in thousands)
Appendix: GAAP Reconciliation of Economic Book Value (Unaudited) 26 “Economic book value” is a non -GAAP financial measure of our financial position. To calculate our economic book value, the porti ons of our non-recourse financing obligation held at amortized cost are adjusted to fair value. These adjustments are also reflected in the table above in our end of period total stockhold ers’ equity. Management considers economic book value to provide investors with a useful supplemental measure to evaluate our financial position as it reflects the impact of fair value chang es 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 substitut e 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. Angel Oak Mortgage REIT, Inc. December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 GAAP total stockholders’ equity 267,523 264,165 246,389 251,480 238,967 Adjustments: Fair value adjustment for securitized debt held at amortized cost 48,789 52,770 61,846 63,593 68,784 Stockholders’ equity including economic book value adjustments $ 316,312 $ 316,935 $ 308,235 $ 315,073 $ 307,751 Number of shares of common stock outstanding at period end 24,914,647 24,914,035 23,765,202 23,500,175 23,500,175 GAAP Book value per share of common stock $ 10.74 $ 10.60 $ 10.37 $ 10.70 $ 10.17 Economic book value per share of common stock $ 12.70 $ 12.72 $ 12.97 $ 13.41 $ 13.10 in thousands, except for share and per share data
Condensed Income Statement History (Unaudited) 27Angel Oak Mortgage REIT, Inc. (in thousands) FY23 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 3Q25 4Q25 FY25 Interest Income 95,953 25,212 25,902 27,444 31,869 110,427 32,867 35,094 36,659 39,034 143,655 Interest Expense 67,052 16,633 16,439 18,424 22,007 73,502 22,780 25,154 26,479 28,142 102,555 NET INTEREST INCOME 28,901 8,579 9,463 9,020 9,862 36,925 10,087 9,940 10,180 10,892 41,100 Net realized gain (loss) on mortgage loans, deritivate contracts, RMBS, and CMBS (37,526) (1,422) (6,770) (6,335) 5,300 (9,228) (3,182) (2,499) (6,557) 1,374 (10,863) Net unrealized gain (loss) on trading securities, mortgage loans, portion of debt at fair value option, and derivative contracts 63,489 10,684 2,658 35,172 (24,753) 23,761 16,625 (1,576) 11,280 4,429 30,758 TOTAL REALIZED AND UNREALIZED GAINS (LOSSES), NET 25,963 9,262 (4,112) 28,837 (19,453) 14,533 13,443 (4,075) 4,723 5,803 19,895 Operating expenses 9,889 2,563 2,148 2,013 1,906 8,631 1,617 1,787 1,627 1,874 6,905 Stock compensation 1,689 630 630 604 177 2,041 237 296 398 423 1,354 Securitization costs 2,484 174 1,410 - 2,215 3,799 - 1,866 - 1,703 3,569 Management fee incurred with affiliate 5,842 1,313 1,294 1,204 1,166 4,976 1,145 1,149 1,161 1,157 4,612 EXPENSES 19,904 4,680 5,482 3,821 5,465 19,447 2,999 5,098 3,186 5,157 16,440 INCOME (LOSS) BEFORE TAXES 34,960 13,161 (131) 34,036 (15,056) 32,011 20,531 767 11,717 11,539 44,555 Income tax expense (benefit) 1,246 287 142 2,832 - 3,261 - - 307 224 531 NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS 33,714 12,874 (273) 31,204 (15,056) 28,750 20,531 767 11,410 11,315 44,024 Other comprehensive income (loss) 16,152 1,703 125 2,706 (3,034) 1,500 (695) (491) 3,665 (318) 2,161 TOTAL COMPREHENSIVE INCOME (LOSS) 49,866 14,577 (148) 33,910 (18,090) 30,250 19,836 276 15,075 10,997 46,185
Balance Sheet History (Unaudited) 28Angel Oak Mortgage REIT, Inc. (in thousands) 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 Assets: Residential Mortgage Loans - at fair value 368,446 158,940 428,909 183,064 439,460 200,665 425,775 294,134 Residential mortgage loans in securitization trusts - at fair value 1,201,210 1,447,901 1,452,907 1,696,995 1,672,189 1,902,721 1,862,330 2,076,776 RMBS - at fair value 445,136 266,752 283,105 300,243 398,272 361,884 235,024 280,005 U.S. Treasury Securities - at fair value 149,805 149,957 49,971 - 74,959 - - - Cash and cash equivalents 39,421 43,956 42,052 40,762 38,696 40,500 51,598 41,619 Restricted cash 2,799 2,146 2,679 2,131 4,774 3,867 1,833 3,666 Principal and interest receivable 10,591 6,174 6,630 8,141 9,823 6,836 14,781 10,354 TBA securities and interest rate futures contracts - at fair value - 1,702 1,651 1,515 1,421 - 1,944 240 Other assets 34,547 36,246 35,962 36,918 36,941 38,015 44,825 42,984 Total Assets 2,251,955 2,113,774 2,303,866 2,269,769 2,676,535 2,554,488 2,638,109 2,749,778 Liabilities: Notes payable 284,002 101,200 333,042 129,459 360,470 118,619 342,608 218,757 Non-recourse securitization obligation, collateralized by residential loans in securitization trusts 1,146,641 1,372,272 1,353,758 1,593,612 1,556,075 1,767,929 1,726,657 1,915,321 Securities sold under agreements to repurchase 193,493 201,051 102,876 50,555 148,467 68,062 54,041 54,041 Senior unsecured notes 47,616 47,740 47,865 88,601 88,795 89,023 TBA securities and interest rate futures contracts - at fair value 889 - - - 947 4,355 1,309 32 Due to broker 359,892 181,847 194,697 201,994 302,619 254,228 153,819 198,191 Accrued expenses 1,119 653 2,000 2,291 2,539 2,812 1,952 2,021 Accrued expenses payable to affiliate 257 397 657 766 248 393 588 783 Interest payable 800 460 1,312 934 1,865 2,258 2,173 3,423 Income taxes payable 1,528 78 2,785 2,785 2,785 163 163 - Management fee payable to affiliate 10 10 25 666 1,175 679 1,840 663 Total Liabilities 1,988,631 1,857,968 2,038,768 2,030,802 2,425,055 2,308,099 2,373,945 2,482,255 Equity: Common stock 249 249 234 234 234 238 249 249 Additional paid in capital 477,698 478,328 461,249 461,057 461,294 463,580 474,154 474,577 Accumulated other comprehensive income (loss) (3,272) (3,147) (441) (3,475) (4,170) (4,661) (996) (1,314) Retained (deficit) earnings (211,351) (219,624) (195,944) (218,849) (205,878) (212,768) (209,242) (205,989) Total Stockholders Equity 263,324 255,806 265,098 238,967 251,480 246,389 264,165 267,523 Total Liabilities and Equity 2,251,955 2,113,774 2,303,866 2,269,769 2,676,535 2,554,488 2,638,110 2,749,778
FAQ
How did Angel Oak Mortgage REIT, Inc. (AOMR) perform financially in 2025?
Angel Oak Mortgage REIT, Inc. reported 2025 GAAP net income of $44.0 million, or $1.80 per diluted share. Net interest income rose to $41.1 million from $36.9 million in 2024, reflecting 11% growth driven by higher interest income on a larger residential mortgage and securitization portfolio.
What were Angel Oak Mortgage REIT, Inc.’s fourth quarter 2025 results?
In Q4 2025, Angel Oak Mortgage REIT, Inc. generated GAAP net income of $11.3 million, or $0.45 per diluted share. Net interest income was $10.9 million, while Distributable Earnings totaled $7.3 million, or $0.29 per diluted share, reflecting solid quarterly profitability.
What dividend did Angel Oak Mortgage REIT, Inc. declare for common shareholders?
The company declared a quarterly dividend of $0.32 per share of common stock. This dividend is scheduled to be paid on February 27, 2026 to stockholders of record as of February 20, 2026, providing continued cash distributions to investors.
How did Angel Oak Mortgage REIT, Inc.’s book value change in 2025?
GAAP book value per share increased to $10.74 as of December 31, 2025, a 5.6% rise from a year earlier. Economic book value per share was $12.70, representing a 3.1% decrease, reflecting fair value adjustments on securitized debt and retained bonds.
What securitization activity did Angel Oak Mortgage REIT, Inc. complete in 2025?
In 2025, the company participated in four securitizations totaling $704 million of unpaid principal balance. This included being sole contributor to the $274.3 million AOMT 2025-10 deal and contributing $58.6 million of HELOCs to the $281.4 million AOMT 2025-HB2 transaction.
How large was Angel Oak Mortgage REIT, Inc.’s loan purchase activity and financing capacity in 2025?
During 2025, the company purchased $861.8 million of newly originated non-QM, second lien, and HELOC loans. As of December 31, 2025, it had four loan financing lines permitting up to $1.3 billion of borrowings, with about $219 million drawn and roughly $1.0 billion of remaining capacity.
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