What changed in this filing

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Item 1. Financial Statements

2026-05-05 compared with 2025-11-06 · 202 added, 287 removed, 470 unchanged (51% of the section changed)

3 unchanged sentences

(in thousands, except for share data)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Residential mortgage loans - at fair value $ 245,534 $ 294,134

22 unchanged sentences

Common stock, $ 0.01 par value.

As of September 30, 2025:

As of March 31, 2026:

350,000,000 shares authorized, 24,914,647 shares issued and outstanding.

10 unchanged sentences

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

Three Months Ended Nine Months Ended

September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

Three Months Ended

March 31, 2026 March 31, 2025

INTEREST INCOME, NET

4 unchanged sentences

Net realized gain (loss) on mortgage loans, derivative contracts, RMBS, and CMBS $ ( 2,721 ) $ ( 3,182 )

Net unrealized gain (loss) on trading securities, mortgage loans, portion of debt at fair value option, and derivative contracts 11,280 35,172 26,329 48,514

Net unrealized gain (loss) on mortgage loans, portion of debt at fair value option, derivative contracts, and trading securities ( 11,592 ) 16,625

TOTAL REALIZED AND UNREALIZED GAINS (LOSSES), NET $ ( 14,313 ) $ 13,443

19 unchanged sentences

(in thousands)

Three Months Ended September 30, 2025

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

Stockholder's equity as of June 30, 2025

$ 238 $ 463,580 $ ( 4,661 ) $ ( 212,768 ) $ 246,389

Issuance of common stock, net of issuance costs 11 10,176 — — 10,187

Dividends paid on common stock — — — ( 7,839 ) ( 7,839 )

Dividends accrued on unvested performance shares — — — ( 45 ) ( 45 )

Stock compensation — 398 — — 398

Unrealized gain (loss) on RMBS and CMBS — — 3,665 — 3,665

Net income (loss) — — — 11,410 11,410

Stockholders' equity as of September 30, 2025

$ 249 $ 474,154 $ ( 996 ) $ ( 209,242 ) $ 264,165

Three Months Ended September 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 June 30, 2024

$ 249 $ 478,328 $ ( 3,147 ) $ ( 219,624 ) $ 255,806

Issuance of common stock, net of issuance costs 2 2,250 — — 2,252

Repurchase of shares of common stock ( 17 ) ( 19,933 ) — — ( 19,950 )

Dividends paid on common stock — — — ( 7,524 ) ( 7,524 )

Stock compensation — 604 — — 604

Unrealized gain (loss) on RMBS and CMBS — — 2,706 — 2,706

Net income (loss) — — — 31,204 31,204

Stockholders’ equity as of September 30, 2024

$ 234 $ 461,249 $ ( 441 ) $ ( 195,944 ) $ 265,098

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)

Nine Months Ended September 30, 2025

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

Three Months Ended March 31, 2026

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

Stockholders' equity as of December 31, 2025 $ 249 $ 474,577 $ ( 1,314 ) $ ( 205,989 ) $ 267,523

$ 234 $ 461,057 $ ( 3,475 ) $ ( 218,849 ) $ 238,967

Issuance of common stock, net of issuance costs 15 12,167 — — 12,182

Dividends paid on common stock (1)

— — — ( 7,973 ) ( 7,973 )

Dividends accrued on unvested performance shares — — — ( 90 ) ( 90 )

2 unchanged sentences

Net income (loss) — — — ( 7,379 ) ( 7,379 )

Stockholders’ equity as of September 30, 2025

$ 249 $ 474,154 $ ( 996 ) $ ( 209,242 ) $ 264,165

Nine Months Ended September 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, 2026 $ 249 $ 475,000 $ 3,084 $ ( 221,431 ) $ 256,902

Three Months Ended March 31, 2025

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

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

$ 249 $ 477,068 $ ( 4,975 ) $ ( 216,236 ) $ 256,106

Issuance of common stock, net of issuance costs 2 2,250 — — 2,252

Repurchase of shares of common stock ( 17 ) ( 19,933 ) — — ( 19,950 )

Dividends paid on common stock (2)

— — — ( 7,520 ) ( 7,520 )

Dividends accrued on unvested performance shares — — — ( 40 ) ( 40 )

Stock compensation — 237 — — 237

1 unchanged sentence

Net income (loss) — — — 20,531 20,531

Stockholders’ equity as of September 30, 2024

$ 234 $ 461,249 $ ( 441 ) $ ( 195,944 ) $ 265,098

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

(1) Dividends paid on common stock during the three months ended March 31, 2026 at $ 0.32 per share of common stock on February 27, 2026.

(2) Dividends paid on common stock during the three months ended March 31, 2025 at $ 0.32 per share of common stock on February 28, 2025.

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

2 unchanged sentences

(in thousands)

Nine Months Ended

September 30, 2025 September 30, 2024

Three Months Ended

March 31, 2026 March 31, 2025

CASH FLOWS FROM OPERATING ACTIVITIES

6 unchanged sentences

Accretion of non-recourse securitized obligation discount 994 1,114

Amortization of RMBS premium/discount 92 —

Accretion of discount on U.S.

4 unchanged sentences

Sale of residential mortgage loans 527 —

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

Principal payments on residential mortgage loans 10,039 5,403

1 unchanged sentence

Net change in:

Margin (paid) received from interest rate futures contracts and TBAs ( 7,559 ) 4,618

TBA securities and interest rate futures contracts ( 487 ) ( 309 )

Principal and interest receivable on residential mortgage loans ( 915 ) ( 1,682 )

3 unchanged sentences

Accrued expenses payable to affiliate ( 539 ) ( 518 )

Income tax payable ( 2,622 ) 1,544

Interest payable ( 1,533 ) 931

4 unchanged sentences

(in thousands)

Nine Months Ended

September 30, 2025 September 30, 2024

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of investments in RMBS, available for sale ( 8,352 ) ( 5,733 )

Purchases of investments in whole pool agency RMBS, trading $ ( 198,191 ) $ ( 203,181 )

Sale of investments in RMBS, available for sale 27,726 —

Sale of investments in whole pool agency RMBS, trading 198,589 201,994

Purchase of investments in U.S.

Purchase of investment in U.S.

Treasury securities — ( 74,939 )

Investments in majority-owned affiliates — ( 2,253 )

Principal payments on RMBS and CMBS securities — 253

Maturities of U.S.

Treasury securities 75,000 450,000

Principal payments on commercial mortgage loans 5 6

1 unchanged sentence

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuances of common stock, net of expenses 12,182 2,252

Dividends paid to common stockholders $ ( 7,973 ) $ ( 7,520 )

Principal payments on non-recourse securitization obligation ( 85,448 ) ( 43,211 )

Cash paid for debt issuance costs ( 666 ) ( 1,013 )

Proceeds from securitizations 269,915 274,793

Net proceeds from (payments on) securities sold under agreements to repurchase 3,486 ( 90,780 )

Proceeds from securitization 258,661 —

Net proceeds from (repurchases of) securities sold under agreements to repurchase 2,959 97,912

Net proceeds from (payments on) notes payable ( 26,527 ) 231,011

Net proceeds from issuance of senior notes 41,161 48,425

Repurchase of common stock — ( 19,950 )

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES $ 141,672 $ 278,192

CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 10,538 235

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period

42,893 44,496

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period

$ 53,431 $ 44,731

CHANGE IN CASH AND RESTRICTED CASH $ ( 1,640 ) $ 577

CASH AND RESTRICTED CASH, beginning of period 45,285 42,893

CASH AND RESTRICTED CASH, end of period $ 43,645 $ 43,470

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

5 unchanged sentences

Angel Oak Mortgage REIT, Inc.

(together with its subsidiaries the “Company,” “we,” “our” or “us”) is a real estate finance company focused on acquiring and investing in first lien non-qualified residential mortgage (“non-QM”) loans and other mortgage‑related assets in the U.S.

(together with its subsidiaries the “Company,” “we,” “our” or “us”) is a real estate finance company focused on acquiring and investing in first and second lien non-qualified residential mortgage (“non-QM”) loans and other mortgage‑related assets in the U.S.

mortgage market.

The Company’s strategy is to make credit-sensitive investments primarily in newly originated non-QM loans that are primarily made to higher quality borrowers and sourced from the proprietary mortgage lending platform of its affiliate, Angel Oak Mortgage Solutions LLC (together with other non-operational affiliated originators “Angel Oak Mortgage Lending”) and other originators.

The Company’s strategy is to make credit-sensitive investments primarily in newly-originated non-QM loans and other mortgage assets that are primarily made to higher-quality borrowers and sourced from the proprietary mortgage lending platform of its affiliate, Angel Oak Mortgage Solutions LLC (together with other non-operational affiliated originators “Angel Oak Mortgage Lending”) and other originators through our relationship with Angel Oak Capital Advisors, LLC (“Angel Oak Capital”).

The Company may also invest in other residential mortgage loans, residential mortgage‑backed securities (“RMBS”), and other mortgage‑related assets.

7 unchanged sentences

The Company’s Manager and REIT status

The Company is externally managed and advised by Falcons I, LLC (the “Manager”), a registered investment adviser with the Securities and Exchange Commission and an affiliate of Angel Oak Capital Advisors, LLC (“Angel Oak Capital”).

The Company is externally managed and advised by Falcons I, LLC (the “Manager”), a registered investment adviser with the Securities and Exchange Commission and an affiliate of Angel Oak Capital.

The Company has elected to be taxed as a real estate investment trust (a “REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2019.

10 unchanged sentences

These include estimates of fair value of certain assets and liabilities, amounts and timing of credit losses, prepayment rates, and other estimates that affect the reported amounts of certain assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of certain revenues and expenses during the reported periods.

It is likely that changes in these estimates (e.g., fair value changes due to inputs and underlying assumptions as described in Note 8 — Fair Value Measurements , credit performance, prepayments, interest rates, or other reasons) will occur in the near term.

It is likely that changes in these estimates (e.g., valuation changes due to supply and demand, credit performance, prepayments, interest rates, or other reasons) will occur in the near term.

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

Expense disaggregation

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”).

There were no recent ASUs that are expected to have a significant impact on the Company's condensed consolidated financial statements when adopted or had a significant impact on the Company's condensed consolidated financial statements upon adoption.

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220- 40)", and in January 2025, the FASB issued ASU 2025-01, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date".

This standard requires public companies to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods.

The new standard, as clarified by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted.

The Company is currently evaluating the potential impact upon adoption, but does not expect the adoption of the new standard to have a material effect on its consolidated financial statements.

Segment Reporting

8 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 September 30, 2025 and December 31, 2024:

September 30, 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 March 31, 2026 and December 31, 2025:

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

March 31, 2026

December 31, 2025

($ in thousands)

5 unchanged sentences

Non-recourse securitization obligation, collateralized by residential mortgage loans in securitization trusts $ 2,079,653 $ 1,915,321

Weighted average coupon rate for residential mortgage loans in securitization trusts 5.70 % 5.56 %

Weighted average fixed rate for Non-recourse securitization obligation issued 4.13 % 3.86 %

Weighted average rate for Non-recourse securitization obligation issued 4.42 % 4.25 %

For the period ended:

September 30, 2025 December 31, 2024

March 31, 2026

December 31, 2025

($ in thousands)

3 unchanged sentences

Cash received, at deal date $ 344,002 $ 320,116

During the three months ended September 30, 2025, the Company did not issue and retain bonds on our consolidated balance sheets for any securitization transaction for which the Company was the primary beneficiary.

For the nine months ended September 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.

During the three months ended March 31, 2026, the Company and its affiliates issued and sold bonds with a face value of $ 258.7 million to third-party investors for proceeds of $ 259.8 million, before offering costs and accrued interest.

The sold bonds 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 September 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 September 30, 2025 and December 31, 2024, the aggregate carrying value of bonds issued by consolidated VIEs was $ 1.7 billion and $ 1.6 billion, respectively.

As of March 31, 2026 and December 31, 2025, as a result of the transactions described above, securitized loans with outstanding principal balance of approximately $ 2.3 billion and $ 2.1 billion are included in “Residential mortgage loans in securitization trusts” on the Company’s condensed consolidated balance sheets, respectively.

As of March 31, 2026 and December 31, 2025, the aggregate carrying value of bonds issued by consolidated VIEs was $ 2.1 billion and $ 1.9 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.

5 unchanged sentences

VIEs for Which the Company is Not the Primary Beneficiary

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

The Company sponsored or participated along with other affiliates and entities managed by Angel Oak Capital in the formation of various entities that were considered to be VIEs.

3 unchanged sentences

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 September 30, 2025 and December 31, 2024, and details on the accounting treatment and fair value methodology of the securities can be found in Note 8 — 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 12 - Other Assets , for investments that are majority-owned by affiliates (“MOAs”), as of September 30, 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 March 31, 2026 and December 31, 2025, and details on the accounting treatment and fair value methodology of the securities can be found in Note 8 — 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 12 - Other Assets , for investments in majority-owned affiliates (“MOAs”), as of March 31, 2026 and December 31, 2025 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 September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

($ in thousands)

6 unchanged sentences

Weighted average remaining contractual maturity (years) 28.9 29.5

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 September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024

The following table sets forth data regarding the number of consumer mortgage loans secured by residential real property which are 90 or more days past due and those in formal foreclosure proceedings, and the recorded investment and unpaid principal balance of such loans as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025

($ in thousands)

5 unchanged sentences

Unpaid principal balance of loans in foreclosure $ 2,619 $ 1,113

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

Investment Securities

As of September 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”).

In September 2025, the Company in conjunction with the Company’s affiliates exercised its call rights on the AOMT 2019-2 and AOMT 2019-4 securitizations and subsequently re-securitized the underlying loans in AOMT 2025-R1.

This transaction resulted in $ 19.4 million of cash which was used for new loan purchases and other accretive uses, and $ 7.3 million of non-performing loans that are classified as held for sale and recorded in other assets.

See Note 8 — Fair Value Measurements and Note 12 — Other Assets .

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

September 30, 2025 December 31, 2024

As of March 31, 2026 and December 31, 2025, Investment Securities were comprised of non‑agency RMBS and Freddie Mac and Fannie Mae “whole pool agency RMBS” (together, “RMBS”) and commercial mortgage backed securities (“CMBS”) assets.

The following table sets forth a summary of RMBS at cost as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025

(in thousands)

1 unchanged sentence

Whole Pool Agency RMBS $ 129,359 $ 198,191

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 September 30, 2025:

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

The following table sets forth certain information about the Company’s investments in RMBS at fair value as of March 31, 2026:

March 31, 2026 Real Estate Securities at Fair Value Securities Sold Under Agreements to Repurchase Allocated Capital

(in thousands)

4 unchanged sentences

Retained RMBS in VIEs (2) — 36,078 ( 36,078 )

— ( 39,293 ) ( 39,293 )

Total AOMT RMBS $ 85,715 $ 57,000 $ 28,715

4 unchanged sentences

Total RMBS $ 212,596 $ 57,000 $ 155,596

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

AOMT RMBS are available for sale securities.

(1) AOMT RMBS held as of March 31, 2026 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 September 30, 2025 were purchased from a broker to whom the Company owes approximately $ 154 million, payable upon the settlement date of the trade.

Whole Pool Agency RMBS are trading securities.

These bonds, with a fair value of $ 220.9 million, are included in residential mortgage loans in securitization trusts - at fair value, within the condensed consolidated balance sheets.

(3) The whole pool RMBS presented as of March 31, 2026 were purchased from a broker to whom the Company owes approximately $ 129 million, payable upon the settlement date of the trade.

See Note 6 - Due to Broker .

9 unchanged sentences

Retained RMBS in VIEs (2) — ( 34,694 ) ( 34,694 )

— ( 25,286 ) ( 25,286 )

Total AOMT RMBS $ 82,140 $ ( 54,041 ) $ 28,099

3 unchanged sentences

Total Whole Pool Agency RMBS $ 197,865 $ — $ 197,865

$ 201,452 $ — $ 201,452

Total RMBS $ 280,005 $ ( 54,041 ) $ 225,964

1 unchanged sentence

(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 $ 163.9 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 consolidated balance sheets.

These bonds, with a fair value of $ 198.9 million, are included in residential mortgage loans in securitization trusts - at fair value, within the condensed consolidated balance sheets.

(3) The whole pool RMBS presented as of December 31, 2025 were purchased from a broker to whom the Company owes approximately $ 198.2 million, payable upon the settlement date of the trade.

See Note 6 - Due to Broker .

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.

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

Outstanding borrowings bear interest at floating rates depending on the lending counterparty, the collateral pledged, and the rate in effect for each interest period, as the same may change from time to time at the end of each interest period.

Some agreements include upfront fees, fees on unused balances, covenants and concentration limits on types of collateral pledged which vary based on the counterparty.

Some loans include upfront fees, exit or withdrawal fees, covenants and concentration limits on types of collateral pledged, many of which vary based on the counterparty.

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 September 30, 2025 or December 31, 2024.

There was no margin collateral required as of March 31, 2026 or December 31, 2025.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

The following table sets forth the details of the Company’s financing as of September 30, 2025 and December 31, 2024 ($ in thousands):

September 30, 2025 December 31, 2024

Current Face Carrying Value Stated Maturity Base/Fixed Interest Rate

Interest Rate Pricing Spread Carrying Value

The following table sets forth the details of the Company’s financing arrangements as of March 31, 2026 and December 31, 2025 ($ in thousands):

March 31, 2026 December 31, 2025

Current Face Carrying Value Stated Maturity Based/Fixed Interest Rate Interest Rate Pricing Spread Carrying Value

Notes payable

Multinational Bank 1 (1)

$ 252,100 $ 252,100 March 2026 Average Daily SOFR 1.65 % - 2.10 %

$ 79,013 $ 79,013 June 2026 Average Daily SOFR 1.65 % - 2.10 %

Global Investment Bank 2 (2)

143 143 March 2026 1 Month Term SOFR 1.75 % - 3.35 %

23,155 23,155 April 2028 1 Month Term SOFR 1.50 % - 2.60 %

Global Investment Bank 3 (3)

64,407 64,407 September 2026 Compound SOFR 1.75 % - 4.75 %

Global Investment Bank 4 (4)

25,655 25,655 October 2027 Term SOFR 1.60 % 33,403

Total Notes Payable Financing $ 192,230 $ 192,230 $ 218,757

Non-recourse securitization obligation, at fair value $ 2,089,596 $ 2,079,653 N/A 4.42 % $ 1,915,321

Securities sold under agreements to repurchase $ 54,041 $ 54,041 October 2025 5.92 % $ 50,555

Securities sold under agreements to repurchase $ 57,000 $ 57,000 April 2026 5.14 % $ 54,041

Senior Unsecured Notes

3 unchanged sentences

Total Financing $ 2,431,326 $ 2,418,134 $ 2,277,142

(1) On September 25, 2025, this financing facility was extended through March 25, 2026 in accordance with the terms of the agreement, which contemplates six-month renewals.

(1) On December 26, 2025, this financing facility was extended through June 25, 2026 in accordance with the terms of the agreement, which contemplates rolling three-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 10, 2025, the facility was amended to, reduce the interest rate pricing spread to a range of 1.65 % to 2.40 %;

prior to this amendment, the interest rate pricing spread was a range of 1.75 % to 3.35 %.

(2) On April 22, 2026, the Company and one of its subsidiaries, amended the Pricing Side Letter for its loan financing facility with Global Investment Bank 2.

The amendment updates the seller underwriting guidelines to include home equity revolving lines of credit.

The termination date of the loan financing facility was extended to April 21, 2028.

In addition, the interest rate pricing spread was updated to a range from 1.50 % to 2.60 %;

prior to this extension, the interest rate pricing spread was a range from 1.65 % to 2.40 %

(3) On September 26, 2025, the facility’s termination date was extended to September 26, 2026.

1 unchanged sentence

prior to this extension, the interest rate pricing spread was a range from 1.90 % to 4.75 %.

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

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

(4) On October 6, 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 “Global Investment Bank 4 Master Repurchase Agreement”).

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.

Additionally, the rates, terms, events of default, and remedies for such events of default contained within the Global Investment Bank 4 Master Repurchase Agreement are 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.

The Global Investment Bank 4 Master Repurchase Agreement expires on October 6, 2027, unless terminated earlier pursuant to the terms of the Global Investment Bank 4 Master Repurchase Agreement.

Notes Payable

The following table sets forth the total unused borrowing capacity of each financing line as of March 31, 2026:

Note Payable Borrowing Capacity Balance Outstanding Available Financing

3 unchanged sentences

Global Investment Bank 3 200,000 64,407 135,593

Global Investment Bank 4 200,000 25,655 174,345

Total $ 1,250,000 $ 192,230 $ 1,057,770

Although available financing is uncommitted for each of these lines of credit, the Company’s unused borrowing capacity is available if it has eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

Senior Unsecured Notes

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The 2030 Notes were issued in May 2025 in a public offering for net proceeds of approximately $ 40.6 million and the 2029 Notes were issued in July 2024 in a public offering for net proceeds of approximately $ 47.5 million.

The below table provides a summary of the Senior Unsecured Notes as of September 30, 2025 ($ in thousands).

Senior Unsecured Notes (1) Principal Amount

Carrying Value Maturity Date (2)

The below table provides a summary of the Senior Unsecured Notes as of March 31, 2026 ($ in thousands).

Carrying Value

Senior Unsecured Notes (1)

Principal Amount March 31, 2026 December 31, 2025 Maturity Date (2)

Redemption Date (3)

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July 2029 Senior Unsecured Notes 50,000 48,363 48,239 July 2029 July 2026 9.50 %

$ 92,500 $ 89,251 $ 89,023

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

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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 Senior Unsecured Notes at a price in cash equal to 101 % of the principal amount of the Senior Unsecured Notes, plus accrued and unpaid interest to, but excluding, the repurchase date.

(4) The 2030 Notes bear interest at a rate equal to 9.75 % per year, payable in cash quarterly in arrears on March 1, June 1, September 1, and December 1 of each year, beginning on September 1, 2025.

(4) The 2030 Notes bear interest at a rate equal to 9.750 % per year, payable in cash quarterly in arrears on March 1, June 1, September 1, and December 1 of each year.

The 2029 Notes bear interest at a rate equal to 9.500 % per year, payable in cash quarterly in arrears on January 30, April 30, July 30 and October 30 of each year.

The below table details the total interest expense incurred on the Senior Unsecured Notes during the three and nine months ended September 30, 2025 and September 30, 2024 ($ in thousands).

Three Months Ended Nine Months Ended

September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024

The below table details the total interest expense incurred on the Senior Unsecured Notes during the three months ended March 31, 2026 and March 31, 2025 ($ in thousands).

Three Months Ended

March 31, 2026 March 31, 2025

Coupon interest expense $ 2,230 $ 1,187

1 unchanged sentence

Total interest expense $ 2,451 $ 1,312

At September 30, 2025 and September 30, 2024, the accrued interest payable on the Senior Unsecured Notes was $ 1.2 million and $ 0.9 million, respectively.

At September 30, 2025 and September 30, 2024, the unamortized deferred debt issuance cost was $ 1.3 million and $ 0.9 million, respectively.

At March 31, 2026 and December 31, 2025, the accrued interest payable on the Senior Unsecured Notes was $ 1.2 million and $ 2.2 million, respectively.

At March 31, 2026 and December 31, 2025, the unamortized deferred debt issuance cost was $ 1.2 million and $ 1.2 million, respectively.

The unamortized debt issuance costs will be amortized until maturity.

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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 September 30, 2025 and December 31, 2024, respectively.

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

September 30, 2025

Restricted cash of margin collateral for securities sold under agreements to repurchase was $ 1.2 million and $ 1.2 million as of March 31, 2026 and December 31, 2025, respectively.

The following table summarizes certain characteristics of the Company’s repurchase agreements as of March 31, 2026 and December 31, 2025:

March 31, 2026

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

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AOMT RMBS (1)

$ 57,000 5.14 % 16

December 31, 2025

1 unchanged sentence

AOMT RMBS (1)

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

$ 54,041 5.44 % 16

(1) A portion of repurchase debt outstanding as of March 31, 2026 and December 31, 2025 includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs).

See Note 4 - Investment Securities .

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Due to Broker

The “Due to broker” account on the condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024, respectively, in the amounts of $ 153.8 million and $ 202.0 million relates to the purchase of Whole Pool Agency RMBS at quarter-end in the third and fourth quarters of 2025 and 2024, respectively.

The “Due to broker” account on the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025, respectively, in the amounts of $ 129.4 million and $ 198.2 million relates to the purchase of Whole Pool Agency RMBS at quarter-end in the first and fourth quarters of 2026 and 2025, 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 October 2025 and January 2025, respectively, at which time these assets were simultaneously sold.

These trades settled in April 2026 and January 2026, 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.

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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 September 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 as of September 30, 2025 and December 31, 2024 included $ 0.6 million and $ 0.9 million, respectively.

Derivative instruments as of March 31, 2026 and December 31, 2025 included interest rate futures contracts.

Restricted cash relating to interest rate futures margin collateral in interest rate futures accounts as of March 31, 2026 and December 31, 2025 included $ 0.5 million and $ 2.5 million, respectively.

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

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Amounts or obligations owed by or to the Company are subject to the right of set-off with the TBA counterparty.

As part of executing these trades, the Company may enter into agreements with its TBA counterparties that govern the transactions for the TBA purchases or sales made, including margin maintenance, payment and transfer, events of default, settlements, and various other provisions.

As part of executing these trades, the Company may enter into agreements with its TBA counterparties that govern the transactions for the

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

TBA purchases or sales made, including margin maintenance, payment and transfer, events of default, settlements, and various other provisions.

Changes in the value of derivatives designed to protect against mortgage-backed securities fair value fluctuations, or economic hedging gains and losses, are reflected in the tables below.

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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 September 30, 2025 and December 31, 2024:

The following table sets forth the derivative instruments presented on the condensed consolidated balance sheets and notional amounts as of March 31, 2026 and December 31, 2025:

Notional Amounts

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($ in thousands)

September 30, 2025 Interest rate futures 3,119 $ 1,944 $ — $ — $ 311,900

September 30, 2025 TBAs N/A $ — $ 1,309 $ — $ 152,300

March 31, 2026 Interest rate futures 2,666 $ 1,421 $ — $ — $ 266,600

March 31, 2026 TBAs N/A $ 2,490 $ — $ — $ 132,100

December 31, 2025 Interest rate futures 3,143 $ — $ 32 $ — $ 314,300

December 31, 2025 TBAs N/A $ 240 $ — $ — $ 198,600

The gains and losses arising from these derivative instruments in the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2025 and September 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 September 30, 2025 Interest rate futures $ ( 3,100 ) $ 3,091

Three Months Ended September 30, 2025 TBAs $ ( 70 ) $ 1,899

Three Months Ended September 30, 2024 Interest rate futures $ ( 4,461 ) $ 1,184

Three Months Ended September 30, 2024 TBAs $ 3,115 $ ( 1,235 )

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, 2026 and March 31, 2025 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)

Nine Months Ended September 30, 2025 Interest rate futures $ ( 5,636 ) $ 957

Nine Months Ended September 30, 2025 TBAs $ ( 1,924 ) $ ( 1,837 )

Nine Months Ended September 30, 2024 Interest rate futures $ ( 622 ) $ 2,232

Nine Months Ended September 30, 2024 TBAs $ 5,238 $ 753

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

Three Months Ended March 31, 2026 Interest rate futures $ ( 50 ) $ 1,453

Three Months Ended March 31, 2026 TBAs $ ( 437 ) $ 2,250

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

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

Fair Value Measurements

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

As of September 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.

As of March 31, 2026, our valuation policy and processes had not changed from those described in our consolidated financial statements for the year ended December 31, 2025 included in the Annual Report on Form 10-K.

Included in Note 9 — Fair Value Measurements to the Consolidated Financial Statements for the year ended December 31, 2025 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.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

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.

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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 ”.

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 September 30, 2025:

The following table sets forth information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2026:

Level 1 Level 2 Level 3 Total

7 unchanged sentences

Whole Pool Agency RMBS — 126,881 — 126,881

Treasury Securities — — — —

Other Assets, at fair value (2)

6 unchanged sentences

$ — $ 1,747,929 $ — $ 1,747,929

Unrealized depreciation on futures contracts ( 1,944 ) — — ( 1,944 )

Unrealized depreciation on TBAs 1,309 — — 1,309

Total liabilities, at fair value $ — $ 1,747,929 $ — $ 1,747,929

(2) Includes Commercial Loans, AOMT commercial mortgage backed securities (“CMBS”) assets, and loans held for sale.

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

(1) AOMT RMBS held as of March 31, 2026 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.

All AOMT CMBS held as of March 31, 2026 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.

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These firms generally use both market comparable information and discounted cash flow modeling techniques to determine the fair value of our Level 3 assets.

Use of these techniques requires determination of relevant input and assumptions, some of which represent significant unobservable inputs such as anticipated credit losses, prepayment rates, default rates, or other valuation assumptions.

Use of these techniques requires determination of relevant inputs and assumptions, some of which represent significant unobservable inputs such as anticipated credit losses, prepayment rates, default rates, or other valuation assumptions.

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

Assets and Liabilities Held at Amortized Cost — Fair Value Disclosure

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 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.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

As of September 30, 2025, the total amortized cost basis and fair value of our non-recourse securitization obligations was $ 1.73 billion and $ 1.67 billion, respectively, a difference of approximately $ 57.1 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 $ 52.8 million.

The following table sets forth information regarding the Company’s significant Level 3 inputs as of March 31, 2026:

Asset Fair Value Unobservable Input Range Average

($ in thousands)

Residential mortgage loans, at fair value $ 2,320 Prepayment rate (annual CPR) — % - — %

Default rate — % - — %

Loss severity ( 13.51 )% - 7.41 %

Expected remaining life 1.3 years - 2.9 years

Residential mortgage loans in securitization trust, at fair value $ 36,086 Prepayment rate (annual CPR) 3.18 % - 18.50 %

Default rate 0.21 % - 41.48 %

Loss severity ( 25.00 )% - 47.24 %

Expected remaining life 0.7 years - 10.75 years

Assets and Liabilities Held at Amortized Cost — Fair Value Disclosure

Portion of Non-Recourse Securitization Obligation, 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 9 — Fair Value Measurements (Level 2 in the fair value hierarchy) 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, 2026, the total amortized cost basis and fair value of our non-recourse securitization obligations was $ 2.12 billion and $ 2.03 billion, respectively, a difference of approximately $ 88.0 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 $ 49.0 million less than the amortized cost.

The difference between the amortized cost basis value and the fair value is derived from the difference between the period-end market pricing of the underlying bonds, as referred to above, and the amortized cost of the obligation.

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 (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).

As of December 31, 2025, the total amortized cost basis and fair value of our non-recourse securitization obligations was $ 1.95 billion and $ 1.87 billion, respectively, a difference of approximately $ 79.0 million (which includes AOMT 2022-1, AOMT 2022-4, AOMT 2023-4, AOMT 2024-4, AOMT 2024-10, and AOMT 2025-10, 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).

The fair value solely attributable to AOMT 2021-4 and 2021-7 is approximately $ 48.8 million less than the amortized cost.

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Investments in Majority-Owned Affiliates

To determine the fair value of the Company’s investments in majority-owned affiliates, which are held at amortized cost and included in “other assets”, the Company uses the prices of the underlying bonds in the investments to determine fair value.

The Company utilizes PriceServe, Bank of America’s independent fixed income pricing service, as the primary valuation source for these bonds.

PriceServe obtains its price quotes from actual sales or quotes for sale of the same or similar securities and/or provides model‑based valuations that consider inputs derived from recent market activity including default rates, conditional prepayment rates, loss severity, expected yield to maturity, baseline discount margin/yield, recovery assumptions, tranche type, collateral coupon, age and loan size, and other inputs specific to each security.

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 September 30, 2025 was approximately $ 21.2 million and $ 17.2 million, respectively.

The amortized cost and fair value of this investment as of March 31, 2026 was approximately $ 25.7 million and $ 20.6 million, respectively.

The amortized cost and fair value of these investments as of December 31, 2025 was approximately $ 25.5 million and $ 20.5 million, respectively.

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

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 December 31, 2024:

Level 1 Level 2 Level 3 Total

5 unchanged sentences

AOMT RMBS (1) — 82,140 — 82,140

— 98,791 — 98,791

Whole Pool Agency RMBS — 197,865 — 197,865

Unrealized appreciation on futures contracts 987 — — 987

Unrealized appreciation on TBAs 528 — — 528

Unrealized depreciation on TBAs 240 — — 240

Other Assets, at fair value (2) — 9,893 1,897 11,790

— 10,807 — 10,807

Total assets, at fair value $ 240 $ 2,629,648 $ 33,057 $ 2,662,945

1 unchanged sentence

Non-recourse securitization obligation, collateralized by residential mortgage loans (3) $ — $ 1,572,934 $ — $ 1,572,934

$ — $ 1,524,828 $ — $ 1,524,828

Unrealized depreciation on futures contracts 32 — — 32

Total liabilities, at fair value $ 32 $ 1,572,934 $ — $ 1,572,966

(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.

(1) Non‑Agency RMBS held as of December 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.

(2) Includes Commercial Loans, AOMT CMBS assets, and loans held for sale.

All AOMT CMBS held as of December 31, 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.

See below for the disclosure of the full debt at fair value.

All unrealized gains and losses arising from valuation changes in residential and commercial mortgage loans, TBAs, and futures contracts are recognized in net income for the periods presented.

Transfers from Level 2 to Level 3 were comprised of residential loans more than 90 days overdue (including those in foreclosure) and commercial mortgage loans in special servicing or otherwise considered “non‑performing” by the Company’s third‑party valuation providers.

Transfers between Levels are deemed to take place on the first day of the reporting period in which the transfer has taken place.

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

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

These firms generally use both market comparable information and discounted cash flow modeling techniques to determine the fair value of our Level 3 assets.

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

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

Asset Fair Value Unobservable Input Range Average

Residential mortgage loans, at fair value $ 993 Prepayment rate (annual CPR) — % - — %

Default rate — % - — %

Loss severity ( 9.30 )% - ( 9.30 )%

Expected remaining life 2.6 years - 2.6 years

Residential mortgage loans in securitization trust, at fair value $ 30,167 Prepayment rate (annual CPR) 2.92 % - 21.31 %

Default rate 0.38 % - 26.12 %

Loss severity ( 23.91 )% - 28.63 %

Expected remaining life 0.6 - 10.75 years

Angel Oak Mortgage REIT, Inc.

6 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 September 30, 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 March 31, 2026 and December 31, 2025, respectively:

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

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):

September 30, 2025 $ 119,776 285 61

($ in thousands)

March 31, 2026 $ 46,456 83 52

December 31, 2025 $ 164,888 364 120

(1) Excludes loans held in consolidated securitizations.

Securitization Transactions and Majority-Owned Affiliate

From time to time, the Company participates in securitization transactions with other affiliates of Angel Oak Capital.

See Note 2 — Variable Interest Entities , “ VIEs for Which the Company is Not the Primary Beneficiary” and Note 12 — Other Assets .

Management Fee

The Company and the Operating Partnership have entered into an Amended and Restated Management Agreement with the Manager, dated as of May 1, 2024 (the “Management Agreement”).

On October 1, 2025, the Company, the Operating Partnership, and the Manager, entered into a new management agreement (the “New Management Agreement”) to supersede and replace in its entirety the Management Agreement.

The Company and the Operating Partnership have entered into a Management Agreement with the Manager, dated as of October 1, 2025 (the “Management Agreement”).

Per the Management Agreement, on a quarterly basis in arrears, the Company shall pay its Manager an aggregate, fixed management fee equal to 1.5 % per annum of the Company’s Equity (as defined in the Management Agreement).

The New Management Agreement did not modify any provisions relating to the management fee or its calculation provided for in the Management Agreement.

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.

To date, no incentive fee has been earned.

The New Management Agreement did not modify any provisions relating to the incentive fee or its calculation provided for in the Management Agreement.

To date, the incentive fee has not been earned.

Operating Expense Reimbursements

The Company is also required to pay the Manager reimbursements for certain general and administrative expenses pursuant to the Management Agreement.

The New Management Agreement continues to require the Company to pay the Manager reimbursements for certain general and administrative expenses.

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

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

As of March 31, 2026, the Company was not aware of any legal claims that could materially impact its financial condition.

As of March 31, 2026, 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 September 30, 2025 the Company had total purchase commitments of $ 186.8 million related to both Angel Oak Mortgage Lending and third parties.

As of March 31, 2026, the Company had total purchase commitments of $ 123.7 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.

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Accumulated Other Comprehensive Income/(Loss)

The following table sets forth the net unrealized gain/(loss) on available-for-sale (“AFS”) securities for the three and nine months ended September 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 nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, 2025 Three Months Ended September 30, 2024

(in thousands)

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

Net unrealized gain/(loss) on AFS securities 3,665 2,706

AOCI balance, end of period $ ( 996 ) $ ( 441 )

Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024

The following table sets forth the net unrealized gain/(loss) on available-for-sale (“AFS”) securities for the three months ended March 31, 2026 and 2025, 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, 2026 and 2025:

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

Three Months Ended March 31, 2026 Three Months Ended March 31, 2025

(in thousands)

2 unchanged sentences

AOCI balance, end of period $ 3,084 $ ( 4,170 )

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 September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024

The following table sets forth the detail of other assets included in the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025

($ in thousands)

5 unchanged sentences

Loans held for sale 1,897 1,897

Protective advances and other assets 622 879

Other 857 894

Total other assets $ 43,412 $ 42,984

Investments in Majority-Owned Affiliates

Investments in Majority-Owned Affiliates (“MOA”)

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 September 30, 2025 and December 31, 2024, the cost and unpaid principal balance of the assets was $ 5.5 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 10 years, as of September 30, 2025.

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

As of March 31, 2026 and December 31, 2025, the cost and unpaid principal balance of the assets was $ 5.5 million and $ 5.5 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 10 years, as of March 31, 2026.

There were no commercial mortgage loans more than ninety (90) days past due or in foreclosure as of March 31, 2026 or December 31, 2025.

Commercial Mortgage Backed Securities

CMBS are held at fair value.

As of September 30, 2025 and December 31, 2024, the cost of these assets were $ 5.5 million and $ 6.1 million, with a fair value of $ 4.9 million and $ 5.6 million, respectively.

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

Loans Held for Sale

As of September 30, 2025, loans held for sale were $ 7.3 million and were the result of the Company in conjunction with the Company’s affiliates exercised call rights on the AOMT 2019-2 and AOMT 2019-4 securitizations and subsequent re-securitization of the underlying loans in AOMT 2025-R1 during September 2025.

Loans held for sale consist of non-performing loans that are classified as held for sale and recorded in other assets.

See Note 4 - Investment Securities and Note 8 — Fair Value Measurements .

During the three and nine-months ended September 30, 2025, the Company issued and sold 1,061,578 and 1,277,200 shares, respectively, of its common stock through its at-the-market equity offering program (the “ATM Program”) resulting in proceeds of $ 10.1 million and $ 12.3 million, respectively, 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, of which $ 60.2 million is available.

Earnings per Share (“EPS”)

In the calculations of basic and diluted earnings per common share for the three and nine months ended September 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.

As of March 31, 2026 and December 31, 2025, the cost of these assets were $ 5.4 million and $ 5.4 million, with a fair value of $ 5.0 million and $ 4.7 million, respectively.

There was no repurchase debt held against these assets at March 31, 2026 or December 31, 2025.

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

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

September 30, 2025 September 30, 2024

(in thousands, except share and per share data)

Basic Earnings (Loss) per Common Share:

Net income (loss) to common stockholders $ 11,410 $ 31,204

Dividends allocated to participating securities ( 50 ) ( 38 )

Net income (loss) to common stockholders - basic $ 11,360 $ 31,166

Basic weighted average common shares outstanding 23,043,587 23,757,039

Basic earnings (loss) per common share $ 0.49 $ 1.31

Diluted Earnings (Loss) per Common Share:

Net income (loss) to common stockholders - basic $ 11,410 $ 31,204

Dividends allocated to participating securities ( 50 ) ( 38 )

Net income (loss) to common stockholders - diluted $ 11,360 $ 31,166

Basic weighted average common shares outstanding 23,043,587 23,757,039

Net effect of dilutive equity awards 1,517,294 322,208

Diluted weighted average common shares outstanding 24,560,881 24,079,247

Diluted earnings (loss) per common share $ 0.46 $ 1.29

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

September 30, 2025 September 30, 2024

Equity and Earnings per Share (“EPS”)

In the calculations of basic and diluted earnings per common share for the three months ended March 31, 2026 and 2025, 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, 2026 and 2025:

March 31, 2026 March 31, 2025

(in thousands, except share and per share data)

13 unchanged sentences

Diluted earnings (loss) per common share $ ( 0.30 ) $ 0.87

Angel Oak Mortgage REIT, Inc.

Notes to the Condensed Consolidated Financial Statements

The Company’s potential dilutive securities, which include restricted stock awards and performance-based restricted stock unit awards have been excluded from the computation of diluted net loss per share for the three months ended March 31, 2026, as they are anti-dilutive and the effect would be to reduce the net loss per share.

Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same.

The Company excluded 447,404 potential common share equivalents presented based on amounts outstanding, from the computation of diluted net loss per share attributable to common stockholders for the three months ended March 31, 2026 because including them would have had an anti-dilutive effect.

Subsequent Events

On October 1, 2025, the Company, the Operating Partnership, and the “Manager, entered into the New Management Agreement to supersede and replace in its entirety the Management Agreement.

The New Management Agreement was entered into immediately following the closing on October 1, 2025 of the strategic transaction between Angel Oak Companies, LP, an affiliate of the Manager (“Angel Oak Companies”), and Brookfield Asset Management Ltd.

(“Brookfield”).

The New Management Agreement is substantially and economically similar to the Management Agreement.

On October 6, 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 “Master Repurchase Agreement”).

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.

Additionally, the rates, terms, events of default, and remedies for such events of default contained within the Master Repurchase Agreement are 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.

The Company is subject to various financial and other covenants, including those relating to (1) declines in tangible net worth;

(2) a maximum ratio of indebtedness to tangible net worth;

and (3) minimum liquidity.

The Master Repurchase Agreement expires on October 6, 2027, unless terminated earlier pursuant to the terms of the Master Repurchase Agreement.

On October 10, 2025, the Company amended the Pricing Side Letter of its loan financing facility with Global Investment Bank 2.

The interest rate pricing spread was updated from a range of 1.75 % to 3.35 % to a range of 1.65 % to 2.40 %, based on collateral type, loan status, dwell time and other factors.

On October 14, 2025, the Company issued AOMT 2025-10, an approximately $ 274.3 million scheduled unpaid principal balance securitization backed by a pool of residential mortgage loans.

The Company issued AOMT 2025-10 as the sole contributor in the securitization.

The Company used the proceeds to repay outstanding debt of approximately $ 237.4 million, and the $ 22.1 million of cash released is planned to be used for new loan purchases and operational purposes.

On November 6, 2025, the Company declared a dividend of $ 0.32 per share of common stock, to be paid on November 26, 2025 to common stockholders of record as of November 18, 2025.

On May 5, 2026, the Company declared a dividend of $ 0.32 per share of common stock, to be paid on May 29, 2026 to common stockholders of record as of May 22, 2026.

On April 22, 2026, the Company and one of its subsidiaries, amended the Pricing Side Letter for its loan financing facility with Global Investment Bank 2.

The amendment updates the seller underwriting guidelines to include home equity revolving lines of credit.

The amendment also extended the termination date of the loan financing facility to April 21, 2028.

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