Angel Oak Mortgage REIT, Inc. Reports Third Quarter 2026 Financial Results

ATLANTA--(BUSINESS WIRE)-- Angel Oak Mortgage REIT, Inc. (NYSE: AOMR) (the “Company,” “we,” and “our”), a leading real estate finance company focused on acquiring and investing in first and second lien non-QM loans and other mortgage-related assets in the U.S. mortgage market, today reported financial 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 Officer 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 benefits of our consistent, deliberate approach to securitizations, which remains an important component of our financing 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 potential returns on new investments, we remain confident 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 financing 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. 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 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 first 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 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 Nine Months Ended September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 INTEREST INCOME, NET Interest income $ 42,459 $ 36,659 $ 124,551 $ 104,620 Interest expense 32,223 26,479 91,464 74,414 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, and CMBS $ 1,757 $ (6,557 ) $ 513 $ (12,238 ) Net unrealized gain (loss) on mortgage loans, portion of debt at fair value option, 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 $ 3,653 Operating expenses incurred with affiliate 559 510 1,678 1,379 Stock compensation 459 398 1,305 930 Securitization costs 1,833 — 3,235 1,866 Management fee incurred with affiliate 1,091 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 (benefit) — 307 — 307 NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS $ (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 ) $ 1.40 Diluted earnings (loss) per common share $ (0.72 ) $ 0.46 $ (0.87 ) $ 1.36 Weighted average number of common shares outstanding: Basic 23,167,436 23,043,587 23,957,077 23,320,200 Diluted 23,167,436 24,560,881 23,957,077 24,014,840 Angel Oak Mortgage REIT, Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (in thousands, except for share and per share data) As of: September 30, 2026 December 31, 2025 ASSETS Residential mortgage loans - at fair value $ 303,713 $ 294,134 Residential mortgage loans in securitization trusts - at fair value 2,273,583 2,076,776 RMBS - at fair value 209,178 280,005 Cash and cash equivalents 49,130 41,619 Restricted cash — 3,666 Principal and interest receivable 12,543 10,354 TBA securities and interest rate futures contracts - at fair value 5,138 240 Other assets 44,905 42,984 Total assets $ 2,898,190 $ 2,749,778 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Notes payable $ 255,027 $ 218,757 Non-recourse securitization obligation, collateralized by residential mortgage loans in securitization trusts (see Note 2) 2,118,434 1,915,321 Securities sold under agreements to repurchase 65,068 54,041 Senior unsecured notes 89,708 89,023 TBA securities and interest rate futures contracts - at fair value — 32 Due to broker 154,696 198,191 Accrued expenses 2,787 2,021 Accrued expenses payable to affiliate 634 783 Interest payable 2,043 3,423 Management fee payable to affiliate 40 663 Total liabilities $ 2,688,437 $ 2,482,255 STOCKHOLDERS' EQUITY Common stock, $0.01 par value. As of September 30, 2026: 350,000,000 shares authorized, 23,395,874 shares issued and outstanding. As of December 31, 2025: 350,000,000 shares authorized, 24,914,647 shares issued and outstanding. $ 232 $ 249 Additional paid-in capital 461,477 474,577 Accumulated other comprehensive income (loss) (2,077 ) (1,314 ) Retained earnings (deficit) (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 Earnings and Distributable Earnings Return on Average Equity (Unaudited) Three Months Ended Nine Months Ended September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 (in thousands) Net income (loss) allocable to common stockholders $ (16,673 ) $ 11,410 $ (20,699 ) $ 32,708 Adjustments: 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 ) 881 Net unrealized (gains) losses on residential loans in securitization trusts and non-recourse securitization obligation 22,411 (3,995 ) 33,531 (20,199 ) Net unrealized (gains) losses on residential loans 4,869 (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 Ended Nine Months Ended September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 ($ in thousands) Annualized Distributable Earnings $ 25,620 $ 2,116 $ 26,711 $ 9,747 Average total stockholders’ equity $ 222,309 $ 255,276 $ 233,840 $ 250,250 Distributable Earnings Return on Average Equity 11.5 % 0.8 % 11.4 % 3.9 % 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) September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 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 amortized cost 58,111 48,833 48,958 48,789 52,770 Stockholders’ equity including economic book value adjustments $ 267,864 283,698 $ 305,860 $ 316,312 $ 316,935 Number of shares of common stock outstanding at period end 23,395,874 23,178,979 24,914,647 24,914,647 24,914,035 Book value per share of common stock $ 8.97 $ 10.13 $ 10.31 $ 10.74 $ 10.60 Economic 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 Officer & Corporate Investor Relations Officer 404-953-4969 randy.chrisman@angeloakcapital.com Source: Angel Oak Mortgage REIT, Inc.