What changed in this filing

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Item 1. Financial Statements

2025-08-06 compared with 2025-05-06 · 222 added, 170 removed, 500 unchanged (44% of the section changed)

3 unchanged sentences

(in thousands, except for share data)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Residential mortgage loans - at fair value $ 200,665 $ 183,064

1 unchanged sentence

RMBS - at fair value 361,884 300,243

Treasury securities - at fair value 74,959 —

Cash and cash equivalents 40,500 40,762

1 unchanged sentence

Principal and interest receivable 6,836 8,141

TBA derivatives and interest rate futures derivatives - at fair value 1,421 1,515

TBA securities and interest rate futures contracts - at fair value — 1,515

Other assets 38,015 36,918

4 unchanged sentences

Securities sold under agreements to repurchase 68,062 50,555

Interest rate futures derivatives - at fair value 947 —

Due to broker 302,619 201,994

Senior unsecured notes 88,601 47,740

TBA securities and interest rate futures contracts - at fair value 4,355 —

Due to broker 254,228 201,994

Accrued expenses 2,812 2,291

6 unchanged sentences

Common stock, $ 0.01 par value.

As of March 31, 2025:

As of June 30, 2025:

350,000,000 shares authorized, 23,765,202 shares issued and outstanding.

10 unchanged sentences

(in thousands, except for share and per share data)

Three Months Ended

March 31, 2025 March 31, 2024

Three Months Ended Six Months Ended

June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

INTEREST INCOME, NET

13 unchanged sentences

INCOME (LOSS) BEFORE INCOME TAXES $ 767 $ ( 131 ) $ 21,298 $ 13,030

Income tax expense — 287

Income tax expense (benefit) — 142 — 429

NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS $ 767 $ ( 273 ) $ 21,298 $ 12,601

10 unchanged sentences

(in thousands)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Common Stock at Par Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Income Retained Earnings (Deficit) Total Stockholders’ Equity

Stockholders' equity as of December 31, 2024 $ 234 $ 461,057 $ ( 3,475 ) $ ( 218,849 ) $ 238,967

Dividends paid on common stock ($ 0.32 per share)

— — — ( 7,520 ) ( 7,520 )

Stockholder's equity as of March 31, 2025 $ 234 $ 461,294 $ ( 4,170 ) $ ( 205,878 ) $ 251,480

Issuance of common stock, net of expenses 4 1,990 — — 1,994

Dividends paid on common stock — — — ( 7,605 ) ( 7,605 )

Dividends accrued on performance shares — — — ( 52 ) ( 52 )

1 unchanged sentence

Unrealized gain (loss) on RMBS and CMBS — — ( 491 ) — ( 491 )

Net income — — — 20,531 20,531

Net income (loss) — — — 767 767

Stockholders' equity as of June 30, 2025 $ 238 $ 463,580 $ ( 4,661 ) $ ( 212,768 ) $ 246,389

Three Months Ended June 30, 2024

Common Stock at Par Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Deficit) Total Stockholders’ Equity

Stockholders’ equity as of March 31, 2024 $ 249 $ 477,698 $ ( 3,272 ) $ ( 211,351 ) $ 263,324

Three Months Ended March 31, 2024

Dividends paid on common stock — — — ( 8,000 ) ( 8,000 )

Stock compensation — 630 — — 630

Unrealized gain (loss) on RMBS and CMBS — — 125 — 125

Net income (loss) — — — ( 273 ) ( 273 )

Stockholders’ equity as of June 30, 2024 $ 249 $ 478,328 $ ( 3,147 ) $ ( 219,624 ) $ 255,806

The accompanying Notes to the Condensed Consolidated Financial Statements are an integral part of this statement.

Angel Oak Mortgage REIT, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

(in thousands)

Six Months Ended June 30, 2025

Common Stock at Par Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Deficit) Total Stockholders’ Equity

Stockholders’ equity as of December 31, 2024 $ 234 $ 461,057 $ ( 3,475 ) $ ( 218,849 ) $ 238,967

Dividends paid on common stock ($ 0.32 per share)

— — — ( 7,989 ) ( 7,989 )

Issuance of common stock, net of expenses 4 1,990 — — 1,994

Dividends paid on common stock — — — ( 15,125 ) ( 15,125 )

Dividends accrued on performance shares — — — ( 92 ) ( 92 )

Stock compensation — 533 — — 533

Unrealized gain (loss) on RMBS and CMBS — — ( 1,186 ) — ( 1,186 )

— — 1,703 — 1,703

Net income — — — 12,874 12,874

Stockholders’ equity as of March 31, 2024 $ 249 $ 477,698 $ ( 3,272 ) $ ( 211,351 ) $ 263,324

Net income (loss) — — — 21,298 21,298

Stockholders’ equity as of June 30, 2025 $ 238 $ 463,580 $ ( 4,661 ) $ ( 212,768 ) $ 246,389

Six Months Ended June 30, 2024

Common Stock at Par Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Deficit) Total Stockholders’ Equity

Stockholders’ equity as of December 31, 2023 $ 249 $ 477,068 $ ( 4,975 ) $ ( 216,236 ) $ 256,106

Dividends paid on common stock — — — ( 15,989 ) ( 15,989 )

Stock compensation — 1,260 — — 1,260

Unrealized gain (loss) on RMBS and CMBS — — 1,828 — 1,828

Net income (loss) — — — 12,601 12,601

Stockholders’ equity as of June 30, 2024 $ 249 $ 478,328 $ ( 3,147 ) $ ( 219,624 ) $ 255,806

The accompanying Notes to the Condensed Consolidated Financial Statements are an integral part of this statement.

2 unchanged sentences

(in thousands)

Three Months Ended

March 31, 2025 March 31, 2024

Six Months Ended

June 30, 2025 June 30, 2024

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) $ 21,298 $ 12,601

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Adjustments to reconcile net income (loss) to net cash provided or (used in) operating activities:

Net realized (gain) loss on mortgage loans, derivative contracts, RMBS, and CMBS 5,681 8,192

6 unchanged sentences

Stock compensation 533 1,260

Net change in:

Purchases of residential mortgage loans from affiliates ( 82,757 ) ( 98,069 )

Purchases of residential mortgage loans from non-affiliates ( 323,135 ) ( 60,635 )

Sale of residential mortgage loans 1,279 2,030

Sale of residential mortgage loans into affiliate's securitization trust 83,669 66,107

1 unchanged sentence

Principal payments on residential mortgage loans in securitization trusts 115,627 80,252

Margin received from (paid on) interest rate futures contracts and TBAs ( 309 ) 3,855

Net change in:

Margin (paid) received from interest rate futures contracts and TBAs ( 4,389 ) 5,964

Principal and interest receivable on residential mortgage loans 1,305 1,325

10 unchanged sentences

(in thousands)

Six Months Ended

June 30, 2025 June 30, 2024

CASH FLOWS FROM INVESTING ACTIVITIES

2 unchanged sentences

Sale of investments in RMBS, trading 507,563 749,377

Purchase of investment in U.S.

Purchase of investments in U.S.

Treasury securities ( 74,939 ) ( 299,632 )

1 unchanged sentence

Principal payments on RMBS and CMBS securities 448 1,230

Maturity of U.S.

Maturities of U.S.

Treasury securities 75,000 300,000

2 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuances of common stock, net of expenses 1,994 —

Dividends paid to common stockholders ( 15,125 ) ( 15,989 )

1 unchanged sentence

Cash paid for debt issuance costs ( 639 ) ( 125 )

Net proceeds from (repurchases of) securities sold under agreements to repurchase

97,912 ( 163 )

Proceeds from securitization 269,915 274,793

Net proceeds from (payments on) securities sold under agreements to repurchase 17,507 7,395

Net proceeds from (payments on) notes payable ( 10,840 ) ( 189,410 )

Net proceeds from issuance of senior notes 41,161 —

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 188,346 ( 3,347 )

38 unchanged sentences

The Company’s estimates are inherently subjective in nature and actual results could differ from the Company’s estimates and the differences could be material.

Recent Accounting Pronouncements

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

Recent Accounting Pronouncements

The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”).

10 unchanged sentences

The Company’s summary of significant accounting policies as set forth in its Annual Report on Form 10-K remain unchanged.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

Variable Interest Entities

5 unchanged sentences

The retained beneficial interest in VIEs for which the Company is the primary beneficiary is the subordinated tranches of the securitization and further interests in additional interest‑only tranches.

The following table summarizes the key details of the Company’s loan securitization transactions for which the Company is the primary beneficiary currently outstanding as of March 31, 2025 and December 31, 2024:

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

March 31, 2025

December 31, 2024

The following table summarizes the key details of the Company’s loan securitization transactions for which the Company is the primary beneficiary currently outstanding as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024

($ in thousands)

4 unchanged sentences

Fair value adjustment for the portion of Non-recourse securitization obligation, at fair value option ( 18,464 ) ( 36,471 )

Non-recourse securitization obligation, collateralized by residential mortgage loans in securitization trusts at fair value $ 1,556,075 $ 1,593,612

Non-recourse securitization obligation, collateralized by residential mortgage loans in securitization trusts $ 1,767,929 $ 1,593,612

Weighted average coupon rate for residential mortgage loans in securitization trusts

5.80 % 5.56 %

Weighted average fixed rate for Non-recourse securitization obligation issued 4.14 % 3.86 %

For the period ended:

March 31, 2025

December 31, 2024

June 30, 2025 December 31, 2024

(in thousands)

2 unchanged sentences

Face amount of Senior Support Certificates received by the Company, at deal date $ 146,422 $ 132,206

Aggregate cash received, at deal date 273,266 273,266

During the three months ended March 31, 2025, the Company had no securitization transactions.

As of March 31, 2025 and December 31, 2024, as a result of the transactions described above, securitized loans with outstanding principal balance of approximately $ 1.7 billion and $ 1.8 billion are included in “Residential mortgage loans in securitization trusts” on the Company’s condensed consolidated balance sheets, respectively.

As of March 31, 2025 and December 31, 2024, the aggregate carrying value of bonds issued by consolidated VIEs was $ 1.6 billion and $ 1.6 billion, respectively.

Cash received, at deal date $ 297,972 $ 273,266

During the three months ended June 30, 2025, the Company and its affiliates issued and sold bonds with a current face value of $ 261.3 million to third-party investors for proceeds of $ 271.7 million, before offering costs and accrued interest.

The bonds sold during the period ended June 30, 2025 are included in “Non-recourse securitization obligation, collateralized by residential mortgage loans in securitization trusts” on the Company’s condensed consolidated balance sheets.

As of June 30, 2025 and December 31, 2024, as a result of the transactions described above, securitized loans with outstanding principal balance of approximately $ 1.9 billion and $ 1.8 billion are included in “Residential mortgage loans in securitization trusts” on the Company’s condensed consolidated balance sheets, respectively.

As of June 30, 2025 and December 31, 2024, the aggregate carrying value of bonds issued by consolidated VIEs was $ 1.8 billion and $ 1.6 billion, respectively.

These bonds issued are disclosed as “Non-recourse securitization obligation, collateralized by residential mortgage loans in securitization trusts” on the Company’s condensed consolidated balance sheets.

1 unchanged sentence

In the absence of such a breach, the Company has no obligation to provide any other explicit or implicit support to any VIE.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

The Company concluded that the entities created to facilitate the loan securitization transactions are VIEs.

7 unchanged sentences

These VIEs were formed to facilitate securitization issuances that were comprised of secured residential whole loans and/or small balance commercial loans contributed to securitization trusts.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

These securities were issued as a result of the unconsolidated securitizations where the Company retained bonds from the issuances of securitizations issued by a depositor that the Company does not control.

1 unchanged sentence

The Company performs ongoing reassessments of all VIEs in which the Company has participated since its inception as to whether changes in the facts and circumstances regarding the Company’s involvement with a VIE would cause the Company’s consolidation conclusion to change, and the Company’s assessment of these VIEs remains unchanged.

The securities received in the securitization transactions for which the Company is not the primary beneficiary are either classified as “available for sale” upon receipt and are included in “RMBS - at fair value”, or are classified as “Other assets” and held at amortized cost on the condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024, and details on the accounting treatment and fair value methodology of the securities can be found in Note 9 — Fair Value Measurements .

See also Note 4 — Investment Securities , for the fair value of Angel Oak Mortgage Trust (“AOMT”) securities held by the Company, and Note 13 - Other Assets , for investments in majority-owned affiliates (“MOAs”), as of March 31, 2025 and December 31, 2024 that were retained by the Company as a result of these securitization transactions.

The securities received in the securitization transactions for which the Company is not the primary beneficiary are either classified as “available for sale” upon receipt and are included in “RMBS - at fair value”, or are classified as “Other assets” and held at amortized cost on the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024, and details on the accounting treatment and fair value methodology of the securities can be found in Note 9 — Fair Value Measurements .

See also Note 4 — Investment Securities , for the fair value of Angel Oak Mortgage Trust (“AOMT”) securities held by the Company, and Note 13 - Other Assets , for investments in majority-owned affiliates (“MOAs”), as of June 30, 2025 and December 31, 2024 that were retained by the Company as a result of these securitization transactions.

Residential Mortgage Loans

Residential mortgage loans are measured at fair value.

The following table sets forth the cost, unpaid principal balance, net premium on mortgage loans purchased, fair value, weighted average interest rate, and weighted average remaining contractual maturity of the Company’s residential mortgage loan portfolio as of March 31, 2025 and December 31, 2024:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

($ in thousands)

6 unchanged sentences

Weighted average remaining contractual maturity (years) 29 30

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

At times, various forms of margin maintenance may be required by certain financing facility counterparties.

See Note 5 — Financing .

The following table sets forth data regarding the number of residential mortgage loans secured by residential real property ninety (90) or more days past due and also those in formal foreclosure proceedings, and the recorded investment and unpaid principal balance of such loans as of March 31, 2025 and December 31, 2024:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

($ in thousands)

5 unchanged sentences

Unpaid principal balance of loans in foreclosure $ 888 $ —

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

Investment Securities

As of March 31, 2025, investment securities were comprised of:

(i) non‑agency RMBS (“AOMT RMBS”) and (ii) Freddie Mac and Fannie Mae whole pool agency RMBS (“Whole Pool Agency RMBS”, and together with AOMT RMBS, “RMBS”), and (iii) U.S.

Treasury securities.

Treasury securities held by the Company as of March 31, 2025 subsequently matured in April 2025.

The following table sets forth a summary of RMBS at cost as of March 31, 2025 and December 31, 2024:

March 31, 2025 December 31, 2024

As of June 30, 2025, investment securities were comprised of:

(i) non‑agency RMBS (“AOMT RMBS”) and (ii) Freddie Mac and Fannie Mae whole pool agency RMBS (“Whole Pool Agency RMBS”, and together with AOMT RMBS, “RMBS”).

The following table sets forth a summary of RMBS at cost as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024

(in thousands)

1 unchanged sentence

Whole Pool Agency RMBS $ 254,228 $ 201,994

The following table sets forth certain information about the Company’s investments in RMBS at fair value as of March 31, 2025:

Real Estate Securities at Fair Value Repurchase Debt Allocated Capital

March 31, 2025:

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

The following tables sets forth certain information about the Company’s investments in RMBS at fair value as of June 30, 2025:

June 30, 2025 Real Estate Securities at Fair Value Securities Sold Under Agreements to Repurchase Allocated Capital

(in thousands)

9 unchanged sentences

Freddie Mac 239,595 — 239,595

Whole Pool Total Agency RMBS $ 301,062 $ — $ 301,062

$ 398,272 $ ( 73,903 ) $ 324,369

(1) AOMT RMBS held as of March 31, 2025 included both retained tranches of AOMT securitizations in which the Company participated and additional AOMT securities purchased in secondary market transactions.

Total Whole Pool Agency RMBS $ 257,552 $ — $ 257,552

Total RMBS $ 361,884 $ ( 68,062 ) $ 293,822

(1) AOMT RMBS held as of June 30, 2025 included both retained tranches of AOMT securitizations in which the Company participated and additional AOMT securities purchased in secondary market transactions.

(2) A portion of repurchase debt includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs).

These bonds, with a fair value of $ 178.3 million, are not reflected in the consolidated balance sheets, as the Company reflects the assets of the VIE (residential mortgage loans in securitization trusts - at fair value) on its condensed consolidated balance sheets.

(3) The whole pool RMBS presented as of March 31, 2025 were purchased from a broker to whom the Company owes approximately $ 302.6 million, payable upon the settlement date of the trade.

(3) The whole pool RMBS presented as of June 30, 2025 were purchased from a broker to whom the Company owes approximately $ 254 million, payable upon the settlement date of the trade.

See Note 6 - Due to Broker .

2 unchanged sentences

The following table sets forth certain information about the Company’s investments in RMBS at fair value as of December 31, 2024:

December 31, 2024 Real Estate Securities at Fair Value Repurchase Debt Allocated Capital

December 31, 2024 Real Estate Securities at Fair Value Securities Sold Under Agreements to Repurchase Allocated Capital

(in thousands)

9 unchanged sentences

Freddie Mac 39,574 — 39,574

Whole Pool Total Agency RMBS $ 201,452 $ — $ 201,452

Total Whole Pool Agency RMBS

$ 201,452 $ — $ 201,452

Total RMBS $ 300,243 $ ( 50,555 ) $ 249,688

4 unchanged sentences

See Note 6 - Due to Broker .

The following table sets forth certain information about the Company’s investments in U.S.

Treasury securities as of March 31, 2025 and December 31, 2024:

Date Face Value Unamortized Discount, net Amortized Cost Unrealized Gain/(Loss) Fair Value Net Effective Yield

($ in thousands)

March 31, 2025 $ 75,000 $ 23 $ 74,977 $ ( 18 ) $ 74,959 3.68 %

December 31, 2024 $ — $ — $ — $ — $ — — %

The Company has the ability to finance residential and commercial whole loans, utilizing lines of credit (notes payable) from various counterparties, as further described below.

2 unchanged sentences

Occasionally, a lender may require certain margin collateral to be posted on a warehouse line of credit.

There was no margin collateral required as of March 31, 2025 or December 31, 2024.

There was no margin collateral required as of June 30, 2025 or December 31, 2024.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

The following table sets forth the details of all the lines of credit available to the Company for whole loan purchases as of March 31, 2025 and December 31, 2024, and the drawn amounts as of March 31, 2025 and December 31, 2024:

Spread Drawn Amount

Note Payable Base Interest Rate March 31, 2025 December 31, 2024

The following table sets forth the details of all the lines of credit available to the Company for whole loan purchases as of June 30, 2025 and December 31, 2024:

Interest Rate Pricing Spread Drawn Amount

Note Payable Base Interest Rate June 30, 2025 December 31, 2024

(in thousands)

4 unchanged sentences

1 month Term SOFR 1.75 % - 3.35 %

38,654 15,111

Global Investment Bank 3 (3)

2 unchanged sentences

Total $ 118,619 $ 129,459

(1) On March 25, 2025, this financing facility was extended through September 25, 2025 in accordance with the terms of the agreement, which contemplates six-month renewals.

In addition, the interest rate pricing spread was reduced to a range from 1.65 % to 2.10 %;

prior to this extension, the interest rate pricing spread was a range from 1.75 % to 2.10 %.

(1) On June 24, 2025, this financing facility was extended through December 25, 2025 in accordance with the terms of the agreement, which contemplates six-month renewals.

The interest rate pricing spread remained unchanged from the prior extension at a range from 1.65 % to 2.10 %.

(2) On March 28, 2024, the Company and two of its subsidiaries terminated the existing facility with Global Investment Bank 2 and the Company and two different subsidiaries entered into a new facility with Global Investment Bank 2 wherein the Company is guarantor, one of the subsidiaries is seller and Global Investment Bank 2 is buyer.

This updated facility is extended through March 27, 2026.

On October 25, 2024, the facility was amended to, among other changes, reduced the pricing spread to a range from 1.75 % and 3.35 %;

On October 25, 2024, the facility was amended to, among other changes, reduced the interest rate pricing spread to a range from 1.75 % and 3.35 %;

prior to this amendment, the interest rate pricing spread was a range from 2.10 % and 3.45 %.

(3) On November 1, 2024, the facility’s termination date was extended to November 1, 2025.

In addition, the base interest rate spread was reduced to a range from 1.90 % to 4.75 % and the index spread adjustment of 20 basis points was eliminated;

prior to this extension, the base interest rate pricing spread was a range from 2.00 % to 4.50 %.

The following table sets forth the total unused borrowing capacity of each financing line as of March 31, 2025:

In addition, the interest rate pricing spread was reduced to a range from 1.90 % to 4.75 % and the index spread adjustment of 20 basis points was eliminated;

prior to this extension, the interest rate pricing spread was a range from 2.00 % to 4.50 %.

The following table sets forth the total unused borrowing capacity of each financing line as of June 30, 2025:

Note Payable Borrowing Capacity Balance Outstanding Available Financing

6 unchanged sentences

Senior Unsecured Notes

In May, the Company closed an underwritten public offering and sale of, and issued, $ 42.5 million in aggregate principal amount of its 9.750 % Senior Notes due 2030 (the “2030 Notes”).

The 2030 Notes bear interest at a rate of 9.750 % per annum, payable quarterly in arrears on March 1, June 1, September 1, and December 1 of each year, beginning on September 1, 2025.

The 2030 Notes will mature on June 1, 2030, unless earlier redeemed or repurchased by the Company, and are held at amortized cost.

After deducting the underwriting discount and other debt issuance costs, the Company received net proceeds of approximately $ 40.6 million.

The Company may redeem the 2030 Notes in whole or in part at any time on or after June 1, 2027, at a redemption price equal to 100 % of the principal amount of the 2030 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

Upon the occurrence of certain events relating to a change of control of the Company, the Company must make an offer to repurchase all outstanding 2030 Notes at a price in cash equal to 101 % of the principal amount of the 2030 Notes, plus accrued and unpaid interest to, but excluding, the repurchase date.

The 2030 Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Operating Partnership, including the due and punctual payment of principal of, premium, if any, and interest on the 2030 Notes, whether at stated maturity, upon acceleration, call for redemption or otherwise.

At June 30, 2025, the outstanding principal amount of the 2030 Notes was $ 42.5 million and the accrued interest payable on the 2030 Notes was $ 0.5 million.

At June 30, 2025 the unamortized deferred debt issuance cost was $ 0.6 million, and the net interest expense recognized in the quarter ended June 30, 2025 was $ 0.6 million.

The unamortized debt issuance costs will be amortized until maturity, which will be no later than June 1, 2030.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

On July 25, 2024, the Company closed an underwritten public offering and sale of, and issued, $ 50.0 million in aggregate principal amount of its 9.500 % Senior Notes due 2029 (the “2029 Notes”).

5 unchanged sentences

The 2029 Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Operating Partnership, including the due and punctual payment of principal of, premium, if any, and interest on the 2029 Notes, whether at stated maturity, upon acceleration, call for redemption or otherwise.

At March 31, 2025, the outstanding principal amount of these Notes was $ 50.0 million and the accrued interest payable on the Notes was $ 0.8 million.

At March 31, 2025, the unamortized deferred debt issuance cost was $ 1.3 million, and the net interest expense

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

recognized in the quarter ended March 31, 2025 was $ 1.3 million.

The unamortized deferred debt issuance costs will be amortized until maturity, which will be no later than July 30, 2029.

At December 31, 2024, the outstanding principal amount of these Notes was $ 50.0 million and the accrued interest payable on the Notes was $ 0.8 million.

At December 31, 2024, the unamortized deferred debt issuance cost was $ 1.4 million, and the net interest expense recognized in 2024 was $ 2.2 million.

The unamortized deferred debt issuance costs will be amortized until maturity, which will be no later than July 30, 2029.

At June 30, 2025, the outstanding principal amount of the 2029 Notes was $ 50.0 million and the accrued interest payable on the 2029 Notes was $ 0.8 million.

At June 30, 2025, the unamortized deferred debt issuance cost was $ 0.8 million, and the net interest expense recognized in the quarter ended June 30, 2025 was $ 1.3 million.

The unamortized debt issuance costs will be amortized until maturity, which will be no later than July 30, 2029.

At December 31, 2024, the outstanding principal amount of the 2029 Notes was $ 50.0 million and the accrued interest payable on the 2029 Notes was $ 0.8 million.

At December 31, 2024, the unamortized debt issuance cost was $ 1.4 million.

The unamortized debt issuance costs will be amortized until maturity, which will be no later than July 30, 2029.

Due to Broker

The “Due to broker” account on the condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024, respectively, in the amounts of $ 302.6 million and $ 202.0 million relates to the purchase of Whole Pool Agency RMBS at quarter-end in the first and fourth quarters of 2025 and 2024, respectively.

The “Due to broker” account on the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024, respectively, in the amounts of $ 254.2 million and $ 202.0 million relates to the purchase of Whole Pool Agency RMBS at quarter-end in the second and fourth quarters of 2025 and 2024, respectively.

Purchases are accounted for on a trade date basis, and, at times, there may be a timing difference between accounting periods for the trade date and the settlement date of a trade.

The trade dates of these purchases were prior to the applicable quarter-end dates.

These trades settled during April 2025 and January 2025, respectively, at which time these assets were simultaneously sold.

These trades settled during July 2025 and January 2025, respectively, at which time these assets were simultaneously sold.

The purchase transactions of these Whole Pool Agency RMBS are excluded from the condensed consolidated statements of cash flows until settled as they are noncash transactions.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

Securities Sold Under Agreements to Repurchase

1 unchanged sentence

Margin (if required) for securities sold under agreements to repurchase represents margin collateral amounts held to ensure that the Company has sufficient coverage for securities sold under agreements to repurchase in case of adverse price changes.

Restricted cash of margin collateral for securities sold under agreements to repurchase was $ 1.2 million and $ 1.2 million as of March 31, 2025 and December 31, 2024, respectively.

The following table summarizes certain characteristics of the Company’s repurchase agreements as of March 31, 2025 and December 31, 2024:

March 31, 2025

Restricted cash of margin collateral for securities sold under agreements to repurchase was $ 1.2 million and $ 1.2 million as of June 30, 2025 and December 31, 2024, respectively.

The following table summarizes certain characteristics of the Company’s repurchase agreements as of June 30, 2025 and December 31, 2024:

June 30, 2025

Repurchase Agreements Amount Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity (Days)

($ in thousands)

Treasury securities $ 74,564 4.60 % 3

AOMT RMBS (1) 68,062 5.85 % 11

73,903 5.70 % 17

Total $ 148,467 5.15 % 10

December 31, 2024

Repurchase Agreements Amount Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity (Days)

Treasury securities $ — — % 0

AOMT RMBS (1) 50,555 5.76 % 19

50,555 5.76 % 19

Total $ 50,555 5.76 % 19

(1) A portion of repurchase debt outstanding as of both March 31, 2025 and December 31, 2024 includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs).

(1) A portion of repurchase debt outstanding as of both June 30, 2025 and December 31, 2024 includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs).

See Note 4 - Investment Securities.

4 unchanged sentences

The derivatives in which the Company invests, and the market risk that the economic hedge is intended to mitigate are further discussed below.

Derivative instruments as of March 31, 2025 and December 31, 2024 included interest rate futures contracts.

Restricted cash relating to interest rate futures margin collateral in interest rate

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

futures accounts under the Company’s sole control as of March 31, 2025 and December 31, 2024 included $ 3.6 million and $ 0.9 million, respectively.

Derivative instruments as of June 30, 2025 and December 31, 2024 included interest rate futures contracts.

Restricted cash relating to interest rate futures margin collateral in interest rate futures accounts under the Company’s sole control as of June 30, 2025 and December 31, 2024 included $ 2.7 million and $ 0.9 million, respectively.

The Company uses interest rate futures as economic hedges to hedge a portion of its interest rate risk exposure.

7 unchanged sentences

The Company considers the notional amounts, categorized by primary underlying risk, to be representative of the volume of its derivative activities.

The following table sets forth the derivative instruments presented on the condensed consolidated balance sheets and notional amounts as of March 31, 2025 and December 31, 2024:

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

The following table sets forth the derivative instruments presented on the condensed consolidated balance sheets and notional amounts as of June 30, 2025 and December 31, 2024:

Notional Amounts

1 unchanged sentence

(in thousands)

March 31, 2025 Interest rate futures 3,605 $ — $ 947 $ — $ 360,500

March 31, 2025 TBAs N/A $ 1,421 $ — $ — $ 307,200

June 30, 2025 Interest rate futures 1,953 $ — $ 1,147 $ — $ 195,300

June 30, 2025 TBAs N/A $ — $ 3,208 $ — $ 251,700

December 31, 2024 Interest rate futures 2,800 $ 987 $ — $ — $ 280,000

December 31, 2024 TBAs N/A $ 528 $ — $ — $ 213,400

The gains and losses arising from these derivative instruments in the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2025 and March 31, 2024 are set forth as follows:

The gains and losses arising from these derivative instruments in the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2025 and June 30, 2024 are set forth as follows:

Derivatives Not Designated as Hedging Instruments Net Realized Gains (Losses) on Derivative Instruments Net Change in Unrealized Appreciation (Depreciation) on Derivative Instruments

(in thousands)

Three Months Ended March 31, 2025 Interest rate futures $ ( 1,473 ) $ ( 1,935 )

Three Months Ended March 31, 2025 TBAs $ 1,163 $ 893

Three Months Ended March 31, 2024 Interest rate futures $ 3,549 $ 204

Three Months Ended March 31, 2024 TBAs $ 306 $ 241

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

Three Months Ended June 30, 2025 Interest rate futures $ ( 1,064 ) $ ( 199 )

Three Months Ended June 30, 2025 TBAs $ ( 3,016 ) $ ( 4,629 )

Three Months Ended June 30, 2024 Interest rate futures $ 290 $ 844

Three Months Ended June 30, 2024 TBAs $ 1,818 $ 1,748

Derivatives Not Designated as Hedging Instruments Net Realized Gains (Losses) on Derivative Instruments Net Change in Unrealized Appreciation (Depreciation) on Derivative Instruments

(in thousands)

Six Months Ended June 30, 2025 Interest rate futures $ ( 2,536 ) $ ( 2,134 )

Six Months Ended June 30, 2025 TBAs $ ( 1,853 ) $ ( 3,737 )

Six Months Ended June 30, 2024 Interest rate futures $ 3,839 $ 1,048

Six Months Ended June 30, 2024 TBAs $ 2,124 $ 1,988

Fair Value Measurements

7 unchanged sentences

Our assessment of the significance of a particular input requires judgment and considers factors specific to the asset or liability being measured.

As of March 31, 2025, our valuation policy and processes had not changed from those described in our consolidated financial statements for the year ended December 31, 2024 included in the Annual Report on Form 10-K.

As of June 30, 2025, our valuation policy and processes had not changed from those described in our consolidated financial statements for the year ended December 31, 2024 included in the Annual Report on Form 10-K.

Included in Note 10 — Fair Value Measurements to the Consolidated Financial Statements for the year ended December 31, 2024 included in the Annual Report on Form 10-K is a detailed description of our other financial instruments measured at fair value and their significant inputs, as well as the general classification of such instruments pursuant to the Level 1, Level 2, and Level 3 valuation hierarchy.

The fair value of cash, restricted cash, principal and interest receivable, other assets (excluding investments in MOAs), notes payable, securities sold under agreements to repurchase, amounts due to broker and accrued expenses (including those payable to an affiliate and management fees payable to an affiliate), and interest payable approximate their carrying values due to the nature of these assets and liabilities.

The Company’s “investments in majority-owned affiliates” included in other assets (see Note 13 — Other Assets ) and a portion of “non-recourse securitization obligations, collateralized by residential mortgage loans” are held at amortized cost.

The fair value of these assets and liabilities is disclosed further below in the section titled “ Assets and Liabilities Held at Amortized Cost - Fair Value Disclosure ”.

The fair value of cash, restricted cash, principal and interest receivable, other assets (excluding investments in majority-owned affiliates (“MOAs”)), notes payable, securities sold under agreements to repurchase, amounts due to broker and accrued expenses (including

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

The following table sets forth information about the Company’s financial assets and liabilities measured at fair value as of March 31, 2025:

those payable to an affiliate and management fees payable to an affiliate), and interest payable approximate their carrying values due to the nature of these assets and liabilities.

The Company’s “investments in majority-owned affiliates” included in other assets (see Note 13 — Other Assets ) and a portion of “non-recourse securitization obligation, collateralized by residential mortgage loans” are held at amortized cost.

The fair value of these assets and liabilities is disclosed further below in the section titled “ Assets and Liabilities Held at Amortized Cost - Fair Value Disclosure ”

The following table sets forth information about the Company’s financial assets and liabilities measured at fair value as of June 30, 2025:

Level 1 Level 2 Level 3 Total

7 unchanged sentences

Whole Pool Agency RMBS — 257,552 — 257,552

Treasury Securities 74,959 — — 74,959

Unrealized appreciation on TBAs 1,421 — — 1,421

U.S Treasury Securities — — — —

Other Assets, at fair value (2)

— 10,498 — 10,498

Unrealized appreciation on futures contracts — — — —

Unrealized appreciation on TBAs — — — —

Total assets, at fair value $ — $ 2,444,176 $ 31,592 $ 2,475,768

3 unchanged sentences

Unrealized depreciation on futures contracts 1,147 — — 1,147

Unrealized depreciation on TBAs 3,208 — — 3,208

Total liabilities, at fair value $ 4,355 $ 1,401,980 $ — $ 1,406,335

(1) AOMT RMBS held as of March 31, 2025 included both retained tranches of AOMT securitizations in which the Company participated, additional AOMT securities purchased in secondary market transactions, and other RMBS purchased in secondary market transactions.

(1) AOMT RMBS held as of June 30, 2025 included both retained tranches of AOMT securitizations in which the Company participated, additional AOMT securities purchased in secondary market transactions, and other RMBS purchased in secondary market transactions.

(2) Includes Commercial Loans and AOMT commercial mortgage backed securities (“CMBS)” assets.

All AOMT CMBS held as of March 31, 2025 was comprised of a small-balance commercial loan securitization issuance in which the Company participated.

All AOMT CMBS held as of June 30, 2025 was comprised of a small-balance commercial loan securitization issuance in which the Company participated.

(3) Only the portion subject to fair value measurement, as adjusted for fair value, is presented above.

9 unchanged sentences

Notes to the Condensed Consolidated Financial Statements

The following table sets forth information regarding the Company’s significant Level 3 inputs as of March 31, 2025:

The following table sets forth information regarding the Company’s significant Level 3 inputs as of June 30, 2025:

Asset Fair Value Unobservable Input Range Average

10 unchanged sentences

Portion of Non-Recourse Securitization Obligations, Collateralized by Residential Mortgage Loans — Held at Amortized Cost

To determine the fair value of the Company’s non-recourse securitization obligations, collateralized by residential mortgage loans, net, held at amortized cost, the Company uses the same method of valuation as described in the Annual Report on Form 10-K, Note 10 — Fair Value Measurements for both the portion of the obligation measured at fair value and the portion of the obligation held at amortized cost, for which fair value is disclosed below.

As of March 31, 2025, the total amortized cost basis and fair value of our non-recourse securitization obligations was $ 1.59 billion and $ 1.49 billion, respectively, a difference of approximately $ 95.3 million (we have elected to hold our non-recourse securitization obligations at fair value, with the exception of AOMT 2021-7 and AOMT 2021-4, which are carried at amortized cost, as the fair value option was not elected at the time of the creation of these obligations).

To determine the fair value of the Company’s non-recourse securitization obligation, collateralized by residential mortgage loans, net, held at amortized cost, the Company uses the same method of valuation as described in the Annual Report on Form 10-K, Note 10 — Fair Value Measurements for both the portion of the obligation measured at fair value and the portion of the obligation held at amortized cost, for which fair value is disclosed below.

As of June 30, 2025, the total amortized cost basis and fair value of our non-recourse securitization obligations was $ 1.79 billion and $ 1.71 billion, respectively, a difference of approximately $ 80.3 million (we have elected to hold our non-recourse securitization obligations at fair value, with the exception of AOMT 2021-7 and AOMT 2021-4, which are carried at amortized cost, as the fair value option was not elected at the time of the creation of these obligations).

The difference between the amortized cost and fair value solely attributable to AOMT 2021-4 and 2021-7 is approximately $ 61.8 million.

1 unchanged sentence

The fair value of the non-recourse securitization debt is not indicative of the amounts at which we could settle this debt.

As of December 31, 2024, the total amortized cost basis and fair value of our non-recourse securitization obligations was $ 1.65 billion and $ 1.52 billion, respectively, a difference of approximately $ 124.3 million (which includes AOMT 2022-1, AOMT 2022-4, AOMT 2023-4, AOMT 2024-4, and AOMT 2024-10, which are marked to fair value;

and AOMT 2021-7 and AOMT 2021-4, which are carried at amortized cost, as the fair value option was not elected at the time of the creation of these obligations).

As of December 31, 2024, the total amortized cost basis and fair value of our non-recourse securitization obligations was $ 1.65 billion and $ 1.52 billion, respectively, a difference of approximately $ 124.3 million (we have elected to hold our non-recourse securitization obligations at fair value, with the exception of AOMT 2021-7 and AOMT 2021-4, which are carried at amortized cost, as the fair value option was not elected at the time of the creation of these obligations).

The fair value solely attributable to AOMT 2021-4 and 2021-7 is approximately $ 68.8 million less than the amortized cost.

6 unchanged sentences

We believe that these quotes are most reflective of the price that would be achieved if the bonds were sold to an independent third party on the date of the condensed consolidated financial statements.

The amortized cost and fair value of this investment as of March 31, 2025 was approximately $ 20.8 million and $ 16.8 million, respectively.

The amortized cost and fair value of this investment as of June 30, 2025 was approximately $ 21.0 million and $ 16.9 million, respectively.

The amortized cost and fair value of these investments as of December 31, 2024 was approximately $ 20.6 million and $ 16.6 million, respectively.

11 unchanged sentences

Whole Pool Agency RMBS — 201,452 — 201,452

Unrealized depreciation on futures contracts 987 — — 987

Unrealized depreciation on TBAs 528 — — 528

Unrealized appreciation on futures contracts 987 — — 987

Unrealized appreciation on TBAs 528 — — 528

Other Assets, at fair value (2)

5 unchanged sentences

Total liabilities, at fair value $ — $ 1,524,828 $ — $ 1,524,828

(1) Non‑Agency RMBS held as of December 31, 2024 included both retained tranches of AOMT securitizations in which the Company participated, additional AOMT securities purchased in secondary market transactions, and other RMBS purchased in secondary market transactions.

(1) AOMT RMBS held as of December 31, 2024 included both retained tranches of AOMT securitizations in which the Company participated, additional AOMT securities purchased in secondary market transactions, and other RMBS purchased in secondary market transactions.

(2) Includes Commercial Loans and AOMT CMBS assets.

6 unchanged sentences

Transfers between Level 2 and Level 3 were immaterial for the year ended December 31, 2024.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

We use third‑party valuation firms who utilize proprietary methodologies to value our residential and commercial loans.

2 unchanged sentences

Accordingly, a significant increase or decrease in any of these inputs in isolation may result in a significantly lower or higher fair value measurement.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

The following table sets forth information regarding the Company’s significant Level 3 inputs as of December 31, 2024:

Asset Fair Value Unobservable Input Range Average

(in thousands)

Residential mortgage loans in securitization trust, at fair value $ 32,074 Prepayment rate (annual CPR) 3.64 % - 19.83 %

8 unchanged sentences

The residential mortgage loans are on residences located in various states with a concentration in California and Florida.

The following table sets forth certain financial information pertaining to whole loan activity purchased from affiliates during the period and year ended as of March 31, 2025 and December 31, 2024, respectively:

The following table sets forth certain financial information pertaining to whole loan activity purchased from affiliates during the period and year ended as of June 30, 2025 and December 31, 2024, respectively:

As of and for the Year-to-Date/Year Ended:

Amount of Loans Purchased from Affiliates during the Year-to-Date/Year Number of Loans Purchased from Affiliates during the Year-to-Date/Year Number of Loans Purchased from Affiliates, Owned and Held as of Year-to-Date/Year End (1) :

($ in thousands)

March 31, 2025 $ 76,697 177 248

Amount of Loans Purchased from Affiliates during the Year-to-Date/Year Ended (in thousands) Number of Loans Purchased from Affiliates during the Year-to-Date/Year Ended Number of Loans Purchased from Affiliates, Owned and Held as of Year-to-Date/Year Ended (1) :

June 30, 2025 $ 82,757 194 31

December 31, 2024 $ 255,368 558 83

7 unchanged sentences

Incentive Fee

Under the Management Agreement, the Manager is also entitled to an incentive fee, which is calculated and payable in cash with respect to each calendar quarter (or part thereof that the Management Agreement is in effect) in arrears in an amount, not less than zero, equal to the excess of (1) the product of (a) 15 % and (b) the excess of (i) the Company’s Distributable Earnings (as defined in the Management Agreement) for the previous 12-month period, over (ii) the product of (A) the Company’s Equity in the previous 12-month period, and (B) 8 % per annum, over (2) the sum of any incentive fee earned by the Manager with respect to the first three calendar quarters of such previous 12-month period.

Under the Management Agreement, the Manager is also entitled to an incentive fee, which is calculated and payable in cash with respect to each calendar quarter (or part thereof that the Management Agreement is in effect) in arrears in an amount, not less than zero , equal to the excess of (1) the product of (a) 15 % and (b) the excess of (i) the Company’s Distributable Earnings (as defined in the Management Agreement) for the previous 12 -month period, over (ii) the product of (A) the Company’s Equity in the previous 12-month period, and (B)

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

8 % per annum, over (2) the sum of any incentive fee earned by the Manager with respect to the first three calendar quarters of such previous 12-month period.

To date, the incentive fee has not been earned.

2 unchanged sentences

Accrued expenses payable to affiliate and operating expenses incurred with affiliate are substantially comprised of payroll reimbursements.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

Commitments and Contingencies

The Company, from time to time, may be party to litigation relating to claims arising in the normal course of business.

As of March 31, 2025, the Company was not aware of any legal claims that could materially impact its financial condition.

As of March 31, 2025, the Company had no unfunded commitments.

As of June 30, 2025, the Company was not aware of any legal claims that could materially impact its financial condition.

As of June 30, 2025, the Company had no unfunded commitments.

The Company has entered into forward purchase commitments with counterparties whereby the Company commits to purchasing residential mortgage loans at a particular price, provided the residential mortgage loans close with the counterparties.

As of March 31, 2025, the Company had total purchase commitments of $ 108.6 million related to both Angel Oak Mortgage Lending and third parties.

As of June 30, 2025 the Company had total purchase commitments of $ 181.0 million related to both Angel Oak Mortgage Lending and third parties.

These commitments represent off-balance sheet risk where the Company may be required to extend credit.

1 unchanged sentence

Accumulated Other Comprehensive Income/(Loss)

The following table sets forth the net unrealized gain/(loss) on available-for-sale (“AFS”) securities for the three months ended March 31, 2025 and 2024, which is the sole component of the changes in the Company’s Accumulated Other Comprehensive Income/(Loss) (“AOCI”) for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31, 2025 Three Months Ended March 31, 2024

The following table sets forth the net unrealized gain/(loss) on available-for-sale (“AFS”) securities for the three and six months ended June 30, 2025 and 2024, which is the sole component of the changes in the Company’s Accumulated Other Comprehensive Income/(Loss) (“AOCI”) for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, 2025 Three Months Ended June 30, 2024

(in thousands)

2 unchanged sentences

AOCI balance, end of period $ ( 4,661 ) $ ( 3,147 )

Six Months Ended June 30, 2025 Six Months Ended June 30, 2024

(in thousands)

AOCI balance, beginning of period $ ( 3,475 ) $ ( 4,975 )

Net unrealized gain/(loss) on AFS securities ( 1,186 ) 1,828

AOCI balance, end of period $ ( 4,661 ) $ ( 3,147 )

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

The following table sets forth the detail of other assets included in the condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024:

March 31, 2025 December 31, 2024

The following table sets forth the detail of other assets included in the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024

(in thousands)

Investments in Majority-Owned Affiliates $ 20,992 $ 20,680

Commercial Mortgage Loans 5,207 5,214

CMBS 5,757 5,593

Commercial Mortgage Loans, at fair value 5,201 5,214

CMBS, at fair value 5,297 5,593

Deferred tax asset 3,457 3,457

2 unchanged sentences

Total other assets $ 38,015 $ 36,918

Investments in Majority-Owned Affiliates (“MOA”)

Investments in Majority-Owned Affiliates

The Company has participated in securitization transactions which involved MOAs in which the Company received investments in each case proportional to its share of the unpaid principal balance of the residential whole loans contributed to the securitizations.

4 unchanged sentences

Commercial mortgage loans are measured at fair value.

As of March 31, 2025 and December 31, 2024, the cost and unpaid principal balance of the assets was $ 5.6 million and $ 5.6 million, with a fair value of $ 5.2 million and $ 5.2 million, respectively.

The weighted average interest rate was 6.23 % with a weighted average maturity of 11 years, as of March 31, 2025.

There were no commercial mortgage loans more than ninety (90) days past due or in foreclosure as of March 31, 2025 or December 31, 2024.

As of June 30, 2025 and December 31, 2024, the cost and unpaid principal balance of the assets was $ 5.6 million and $ 5.6 million, with a fair value of $ 5.2 million and $ 5.2 million, respectively.

The weighted average interest rate was 6.23 % with a weighted average maturity of 11 years, as of June 30, 2025.

There were no commercial mortgage loans more than ninety (90) days past due or in foreclosure as of June 30, 2025 or December 31, 2024.

Commercial Mortgage Backed Securities

CMBS are held at fair value.

As of March 31, 2025 and December 31, 2024, the cost of these assets were $ 6.0 million and $ 6.1 million, with a fair value of $ 5.8 million and $ 5.6 million, respectively.

There was no repurchase debt held against these assets at March 31, 2025 or December 31, 2024.

As of June 30, 2025 and December 31, 2024, the cost of these assets were $ 5.8 million and $ 6.1 million, with a fair value of $ 5.3 million and $ 5.6 million, respectively.

There was no repurchase debt held against these assets at June 30, 2025 or December 31, 2024.

During the three and six-months ended June 30, 2025, the Company issued and sold 215,622 shares of its common stock through an at-the-market equity offering program (the “ATM Program”) for proceeds of $ 2.2 million, net of commissions and fees.

These shares of common stock were issued in SEC registered transactions off the Company’s shelf registration statement.

Per the terms of our ATM Program, we may offer and sell shares of our common stock having an aggregate gross proceeds of up to $ 75.0 million from time to time.

Earnings per Share (“EPS”)

In the calculations of basic and diluted earnings per common share for the three and six months ended June 30, 2025 and 2024, the Company included participating securities, which are certain equity awards that have non-forfeitable dividend participation rights.

Dividends and undistributed earnings allocated to participating securities under the basic and diluted earnings per share calculations require specific shares to be included that may differ in certain circumstances.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

Equity and Earnings per Share (“EPS”)

In the calculations of basic and diluted earnings per common share for the three months ended March 31, 2025 and 2024, the Company included participating securities, which are certain equity awards that have non-forfeitable dividend participation rights.

The following table sets forth the calculation of basic and diluted earnings per share for the three months ended March 31, 2025 and 2024:

March 31, 2025 March 31, 2024

The following table sets forth the calculation of basic and diluted earnings per share for the three months ended June 30, 2025 and 2024:

June 30, 2025 June 30, 2024

(in thousands, except share and per share data)

13 unchanged sentences

Diluted earnings (loss) per common share $ 0.03 $ ( 0.01 )

The following table sets forth the calculation of basic and diluted earnings per share for the six months ended June 30, 2025 and 2024:

June 30, 2025 June 30, 2024

(in thousands, except share and per share data)

Basic Earnings (Loss) per Common Share:

Net income (loss) to common stockholders $ 21,298 $ 12,601

Dividends allocated to participating securities ( 72 ) ( 54 )

Net income (loss) to common stockholders - basic $ 21,226 $ 12,547

Basic weighted average common shares outstanding 23,460,798 24,792,918

Basic earnings (loss) per common share $ 0.90 $ 0.51

Diluted Earnings (Loss) per Common Share:

Net income (loss) to common stockholders - basic $ 21,298 $ 12,601

Dividends allocated to participating securities ( 72 ) ( 54 )

Net income (loss) to common stockholders - diluted $ 21,226 $ 12,547

Basic weighted average common shares outstanding 23,460,798 24,792,918

Net effect of dilutive equity awards 258,852 180,583

Diluted weighted average common shares outstanding 23,719,650 24,973,501

Diluted earnings (loss) per common share $ 0.89 $ 0.50

Subsequent Events

On April 11, 2025 the Company securitized residential mortgage loans with an unpaid principal balance of $ 284.3 million in the issuance of AOMT 2025-4.

On May 5, 2025, the Company declared a dividend of $ 0.32 per share of common stock, to be paid on May 30, 2025 to common stockholders of record as of May 22, 2025.

On August 5, 2025, the Company declared a dividend of $ 0.32 per share of common stock, to be paid on August 29, 2025 to common stockholders of record as of August 22, 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements