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Cautionary Note Regarding Forward-Looking Statements
−Removed: This Quarterly Report on Form 10-Q contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
+Added: This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve numerous risks and uncertainties.
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Factors that could have a material adverse effect on future results and performance relative to those set forth in or implied by the related forward-looking statements, as well as on our business, financial condition, liquidity, results of operations and prospects, include, but are not limited to:
−Removed: • the effects of adverse conditions or developments in the financial markets and the economy, including as a result of the current U.S.
−Removed: government shutdown, upon our ability to acquire target assets such as non-qualified residential mortgage (“non-QM”) loans, particularly those sourced from Angel Oak’s proprietary mortgage lending platform, Angel Oak Mortgage Lending;
+Added: • the effects of adverse conditions or developments in the financial markets and the economy upon our ability to acquire target assets such as non-qualified residential mortgage (“non-QM”) loans, including those sourced from Angel Oak’s proprietary mortgage lending platform, Angel Oak Mortgage Lending;
• the level and volatility of prevailing interest rates and credit spreads;
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• conflicts with Angel Oak, including our Manager and its personnel, including our officers, and entities managed by Angel Oak;
−Removed: • events, contemplated or otherwise, such as acts of God, including hurricanes, wildfires, earthquakes, and other natural disasters, including those resulting from global climate change, pandemics, acts of war or terrorism, the initiation or escalation of military conflicts, and others that may cause unanticipated and uninsured performance declines, disruptions in markets, and/or losses to us or the owners and operators of the real estate securing our investments;
+Added: • events, contemplated or otherwise, such as acts of God, including hurricanes, wildfires, earthquakes, and other natural disasters, including those resulting from global climate change, pandemics, acts of war or terrorism, the initiation or escalation of military conflicts, and others that may cause unanticipated and uninsured performance declines, disruptions in markets, volatility in prevailing interest rates, and/or losses to us or the owners and operators of the real estate securing our investments;
• the occurrence of certain geo-political events (including global trade disputes related to tariffs) that affect the normal and peaceful course of international relations;
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Angel Oak Mortgage REIT, Inc.
−Removed: is a real estate finance company focused on acquiring and investing in first lien non-QM loans and other mortgage-related assets in the U.S.
+Added: is a real estate finance company focused on acquiring and investing in first and second lien non-QM loans and other mortgage-related assets in the U.S.
mortgage market.
−Removed: Our 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 Angel Oak’s proprietary mortgage lending platform, Angel Oak Mortgage Lending, which currently operates primarily through a wholesale channel and has a national origination footprint, and other originators.
−Removed: We also may invest in other residential mortgage loans, RMBS, and other mortgage-related assets, which, collectively with non-QM loans, we refer to as our target assets.
−Removed: Further, we also may identify and acquire our target assets through the secondary market when market conditions and asset prices are conducive to making attractive purchases.
+Added: Our 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 our affiliate, Angel Oak Mortgage Lending and other originators through our relationship with Angel Oak Capital.
+Added: We may also invest in other residential mortgage loans, RMBS, and other mortgage-related assets, which, collectively with non-QM loans, we refer to as our target assets.
Our objective is to generate attractive risk-adjusted returns for our stockholders, through cash distributions and capital appreciation, across interest rate and credit cycles.
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we have significant competitive advantages due to Angel Oak’s analytical investment tools, extensive relationships in the financial community, financing and capital structuring skills, investment surveillance capabilities, and operational expertise.
−Removed: On October 1, 2025, the Company, the Operating Partnership, and our Manager entered into a new management agreement (the “New Management Agreement”) to supersede and replace in its entirety the Amended and Restated Management Agreement, dated as of May 1, 2024 (the “Management Agreement”).
−Removed: The New Management Agreement was entered into immediately following the closing on October 1, 2025 of the strategic transaction between Angel Oak Companies, an affiliate of the Manager, and Brookfield Asset Management Ltd.
−Removed: (“Brookfield”).
−Removed: The New Management Agreement is substantially and economically similar to the Management Agreement, with a revision to the reimbursement for the Company’s Chief Executive Officer, Sreeni Prabhu, and clarification of the considerations for which the Company may decline to renew the New Management Agreement on an annual basis.
+Added: On October 1, 2025, Angel Oak Companies, an affiliate of our Manager, and Brookfield Asset Management Ltd.
+Added: (“Brookfield”), closed on a strategic transaction resulting in the beneficial owners of Angel Oak Companies selling approximately 51% of the outstanding beneficial ownership of Angel Oak Companies, and indirectly our Manager, to Brookfield (the “Strategic Transaction”).
+Added: Angel Oak Companies has advised the Company that the Strategic Transaction is not expected to result in any material change in the day-to-day management of the Company, and will not result in any material changes to the Company’s investment objectives and strategies.
+Added: As part of the Strategic Transaction, Brookfield has the right to acquire additional beneficial ownership in Angel Oak Companies beginning in 2027, which over time could result in Brookfield taking control of the board of directors of Angel Oak Companies.
+Added: On October 1, 2025, immediately following the closing of the Strategic Transaction between Angel Oak Companies and Brookfield, the Company, the Operating Partnership, and our Manager, entered into a new management agreement (the “Management Agreement”) to supersede and replace in its entirety the Amended and Restated Management Agreement, dated as of May 1, 2024, previously in effect (the “Prior Management Agreement”).
+Added: The Management Agreement is substantially and economically similar to the Prior Management Agreement.
+Added: The Management Agreement reflects two substantive changes from the Prior Management Agreement.
+Added: The Prior Management Agreement required the Company to reimburse our Manager for a share of the wages, salaries and benefits incurred by our Manager with respect to the Company’s Chief Executive Officer and President, based upon the percentage of such person’s working time relating to the Company.
+Added: Under the Management Agreement, this provision was modified to provide that, for so long as Sreeni Prabhu serves as the Company’s Chief Executive Officer and President, our Manager will not be entitled to be reimbursed for the costs of his wages, salaries and benefits unless Mr.
+Added: Prabhu devotes 100% of his working time on matters related to the Company and its subsidiaries (which is not currently the case), and any such reimbursement is approved in advance by at least two-thirds of the independent directors.
+Added: In addition, under the Management Agreement, with respect to the Company’s annual right to decline to renew the Management Agreement without cause upon the affirmative vote of at least two-thirds of the independent directors based upon a determination that the compensation payable to our Manager is not fair, it was clarified that any such determination will take into account amounts sought for expense reimbursement.
We have elected to be taxed as a REIT for U.S.
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Overall macroeconomic environment and its effect on us
−Removed: In the third quarter of 2025, the macroeconomic environment was characterized by general resilience despite competing headwinds and tailwinds surrounding inflation, consumer spending, gross domestic product, and continued geopolitical tension.
−Removed: Many of the themes driving uncertainty from earlier in the year persisted in the third quarter of 2025, yet equity markets again finished with quarter over quarter growth compared to the end of the second quarter of 2025.
−Removed: Inflation ticked up from 2.7% to 3.0% from June 2025 to September 2025.
−Removed: Combined with a weakening labor market, the Federal Reserve Bank (“Fed”) elected to cut the federal funds rate at their September meeting by 25 basis points to 4.00% - 4.25%, representing the first cut since December 2024.
−Removed: This was followed by an additional 25 basis point cut in the Fed’s October meeting, bringing the current federal funds rate to 3.75% - 4.00%.
−Removed: The dovish approach was a welcome development for prospective homebuyers, as mortgage rates decreased in line with Fed rate expectations.
−Removed: Current projections are for two more interest rate cuts in 2025, though the recent government shutdown has cast uncertainty on the future rate path.
−Removed: Securitization markets, in particular, demonstrated resilience with robust activity and a continued tightening of execution spreads.
−Removed: As expected, Treasury yields decreased across two, five, and ten-year terms in the third quarter of 2025.
−Removed: The two-year Treasury yield decreased by approximately 11 basis points since the end of the second quarter of 2025 to 3.62% at the end of the third quarter of 2025, the five-year Treasury yield decreased by approximately 6 basis points since the end of second quarter of 2025 to 3.75% at the end of the third quarter of 2025, and the ten-year Treasury yield decreased by approximately 8 basis points since the end of second quarter of 2025 to 4.15% at the end of the third quarter of 2025.
−Removed: 30 year fixed residential conforming mortgage rates decreased by 47 basis points over the course of the third quarter of 2025 to 6.30% as of the end of the third quarter of 2025 from 6.77% as of the end of the second quarter of 2025.
−Removed: These rates, alongside federal funds rate and Treasury yields, are key benchmarks for the valuation of our portfolio, and a decrease is generally expected to drive a corresponding positive impact to our newly originated asset pricing, consistent with what we observed in the third quarter of 2025.
−Removed: We observed an approximately 63 basis point increase through the end of the third quarter of 2025 versus the second quarter of 2025 in the weighted average price of our residential whole loans portfolio, inclusive of home equity lines of credit (“HELOCs”).
−Removed: This increase in valuation was accompanied by a 78 basis point increase in the third quarter in the weighted average price of our loans in securitization trusts portfolio versus the prior quarter.
−Removed: We expect to continue to purchase newly originated loans and HELOCs, which should continue to support overall portfolio valuations and securitization execution going forward.
+Added: During the first quarter of 2026, the U.S.
+Added: Federal Reserve Bank (the “Fed”) maintained a generally neutral policy stance following the easing cycle of late 2025.
+Added: Monetary policy in the quarter reflected continued confidence in moderating inflationary pressures and a gradually cooling, yet resilient, U.S.
+Added: While broader macroeconomic conditions were more constructive than in the prior year, uncertainty and volatility persisted throughout the quarter, driven by incoming inflation and employment data as well as shifting market expectations regarding the timing of any future policy actions.
+Added: Additionally, the conflict in Iran added to the rate volatility late in the first quarter of 2026.
+Added: As such, the Fed left the federal funds rate unchanged at 3.50% - 3.75% as of the end of the first quarter of 2026.
+Added: Overall, the interest rate environment during the first quarter of 2026 remained supportive for prospective homebuyers relative to recent years.
+Added: In parallel, securitization markets continued to demonstrate healthy activity, supported by constructive execution spreads and steady investor demand.
+Added: Current expectations remain for a relatively stable interest rate environment through the balance of 2026, assuming continued progress on inflation and sustained, albeit moderating, economic growth.
+Added: Treasury yields during the first quarter of 2026 reflected this stable but still data‑dependent environment.
+Added: Short‑ and intermediate‑term Treasury yields experienced modest fluctuations over the course of the quarter, while longer‑term yields remained range‑bound, reflecting balanced market views on inflation, growth, and future monetary policy.
+Added: Intra‑quarter yield movements were largely driven by updated macroeconomic data releases and evolving market commentary from the Fed.
+Added: Residential mortgage rates moved broadly in line with Treasury yields during the first quarter of 2026, remaining below levels observed throughout much of 2024 and early 2025.
+Added: Mortgage market activity showed continued signs of improvement, with borrower engagement supported by greater rate stability and improved affordability relative to the prior year.
+Added: Residential mortgage rates, along with securitization spreads, remain key benchmarks for the valuation of our portfolio;
+Added: though the generally lower rate environment was a positive contributor to asset pricing, macroeconomic volatility drove spreads wider, leading to an overall decrease in asset pricing during the quarter.
+Added: Continued purchases of newly originated loans, together with ongoing securitizations of recently originated collateral, supported earnings
+Added: growth across our residential whole loan and loans held within securitization trusts portfolios.
+Added: We expect continued acquisition of newly originated loans throughout 2026, which should further support portfolio performance and securitization execution in a constructive capital markets environment.
Our investment performance
Net Interest Margin (“NIM”).
−Removed: We generated a 12.9% increase in net interest income in the third quarter of 2025 as compared to the third quarter of 2024, supported by the continued acquisition of accretive assets and reductions in financing facility pricing.
−Removed: Compared to the third quarter of 2024, interest income grew by $9.2 million and interest expense grew by $8.1 million, resulting in net interest income growth of $1.2 million in the third quarter of 2025.
−Removed: Interest income grew due to the continued acquisition and securitization of current market non-QM loans.
−Removed: Compared to the second quarter of 2025, net interest income grew by 2.4%, demonstrating that earnings from assets purchased with the proceeds of our May 2025 offering of $42.5 million in aggregate principal amount of our 9.750% Senior Notes due 2030 (the “2030 Notes”) outpaced the incremental interest expense and produced a positive return.
+Added: We generated $7.8 million greater interest income for the quarter ended March 31, 2026 compared to the comparable period for 2025, driven by increases in the amount of our target assets.
+Added: Interest expense increased by $5.8 million for the quarter ended March 31, 2026 compared to the comparable period for 2025, due to new asset purchases and securitizations, collateralized by residential mortgage loans in securitization trusts as well as our 9.750% Senior Notes due 2030 (“2030 Notes”) issued in May 2025.
+Added: Overall, the increase in our interest income outpaced the increase in interest expense and drove a 20%, or $2.0 million, increase in net interest income for the quarter ended March 31, 2026 compared to the comparable period for 2025.
Net realized loss .
−Removed: Our net realized loss for the quarter ended September 30, 2025 was primarily due to realized losses associated with hedging activity, as well as a realized loss associated with the retained RMBS from our AOMT 2019-2 and AOMT 2019-4 securitizations, which were called and re-securitized into AOMT 2025-R1 in the third quarter.
−Removed: Note that the previous unrealized loss on these RMBS was greater than the realized loss, indicating an incrementally positive impact to book value.
−Removed: Net unrealized gain .
−Removed: Our net unrealized gain for the quarter ended September 30, 2025 was primarily due to increases in valuations of our residential mortgage loans and residential mortgage loans in securitization trusts during the quarter.
+Added: Our net realized loss for the quarter ended March 31, 2026 was primarily due to realized losses associated with the unamortized premium of loans that paid off underlying our residential loans in securitization trust and RMBS portfolio as well as realized losses associated with hedging activity.
+Added: Net unrealized loss .
+Added: Our net unrealized loss for the quarter ended March 31, 2026 was primarily due to a decrease in the valuation of our loans in securitization trust, net of non-recourse securitization obligation and residential whole loans portfolios.
Whole loans and securitization activity
−Removed: During the quarter ended September 30, 2025, we purchased $237.6 million of newly-originated, current market coupon non-QM residential mortgage loans, second lien mortgage loans (residential mortgage loans that are subordinate to the primary or first lien mortgage loans on a residential property, or “Closed-End Seconds”), and HELOCs, with a weighted average coupon of 7.74%, weighted average combined loan-to-value ratio (“CLTV”) of 69.4% and weighted average non-zero credit score of 759.
−Removed: In September 2025, the Company in conjunction with the Company’s affiliates exercised their call rights on the AOMT 2019-2 and AOMT 2019-4 securitizations and subsequently re-securitized the underlying loans in AOMT 2025-R1.
−Removed: 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.
−Removed: Subsequent to the end of the third quarter, in October 2025, we issued AOMT 2025-10, an approximately $274.3 million scheduled unpaid principal balance securitization backed by a pool of residential mortgage loans.
+Added: During the quarter ended March 31, 2026, we purchased $246.2 million of newly-originated, current market coupon non-QM residential mortgage loans, with a weighted average coupon of 7.34%, weighted average combined loan-to-value ratio (“CLTV”) of 67.1% and weighted average credit score of 759.
+Added: In March 2026, we issued AOMT 2026-2, a $272.3 million scheduled unpaid principal balance securitization backed by a pool of residential mortgage loans.
We issued AOMT 2026-2 as the sole contributor in the securitization.
−Removed: We 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.
+Added: We used the proceeds to repay outstanding debt of approximately $234.1 million, and the $23.9 million of cash released was used for new loan purchases and operational purposes.
Whole loan financing facilities activity
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See “Liquidity and Capital Resources” below, for a full description of our financing arrangements.
−Removed: Our total borrowing capacity was $1.1 billion as of September 30, 2025;
−Removed: Highlights of whole loan financing facilities activity over the third quarter of 2025 are as follows:
−Removed: • During the quarter ended September 30, 2025, we maintained the same whole loan financing facility lender base as of December 31, 2024.
−Removed: • During the quarter ended September 30, 2025, we renewed our loan financing facility with Multinational Bank 1 in accordance with the mechanism for six-month renewal periods.
−Removed: • Subsequent to the quarter ended September 30, 2025, 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”).
−Removed: 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.
−Removed: 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.
−Removed: The interest rate is equal to the sum of (1) a spread of 1.60%, and (2) Term SOFR.
−Removed: The Company is subject to various financial and other covenants, including those relating to (1) declines in tangible net worth;
−Removed: (2) a maximum ratio of indebtedness to tangible net worth;
−Removed: and (3) minimum liquidity.
−Removed: The Master Repurchase Agreement expires on October 6, 2027, unless terminated earlier pursuant to the terms of the Master Repurchase Agreement.
+Added: Our total borrowing capacity was $1.3 billion as of March 31, 2026 Highlights of whole loan financing facilities activity over the first quarter of 2026 are as follows:
+Added: • During the quarter ended March 31, 2026, we maintained the same whole loan financing facility lender base as of December 31, 2025.
+Added: • 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.
+Added: The amendment updates the seller underwriting guidelines to include home equity revolving lines of credit.
+Added: The termination date of the loan financing facility was extended to April 21, 2028.
+Added: In addition, the interest rate pricing spread was updated to a range from 1.50% to 2.60%;
+Added: prior to this extension, the interest rate pricing spread was a range from 1.65% to 2.40%
Key Financial Metrics
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federal income tax at the regular corporate rate to the extent that we annually distribute less than 100% of such taxable income.
−Removed: Given these requirements and our belief that dividends are generally one of the principal reasons that stockholders invest in our common stock, generally we intend to attempt to pay dividends to our stockholders in an amount equal to our REIT taxable income, if and to the extent authorized by our Board of Directors.
+Added: Given these requirements and our belief that dividends are generally one of the principal reasons that stockholders invest in our common stock, generally we intend to attempt to pay dividends to our stockholders
+Added: in an amount equal to our REIT taxable income, if and to the extent authorized by our Board of Directors.
Distributable Earnings is one of a number of factors considered by our Board of Directors in declaring dividends and, while not a direct measure of REIT taxable income, over time, the measure can be considered a useful indicator of our dividends.
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For information on the fees that are payable to our Manager under the Management Agreement, see “Note 9 – Related Party Transactions” in our unaudited condensed consolidated financial statements included in this report.
−Removed: Distributable Earnings were a gain of $0.5 million and a loss of $3.4 million for the three months ended September 30, 2025 and 2024, respectively.
−Removed: The primary drivers of the difference of Distributable Earnings as compared to GAAP net income for both of the quarters ended September 30, 2025 and September 30, 2024 were adjustments to remove unrealized gains on residential loans and on residential loans in securitization trusts and non-recourse securitization obligation.
−Removed: Distributable Earnings were a gain of $7.3 million and a loss of $2.8 million for the nine months ended September 30, 2025 and 2024, respectively.
−Removed: For the nine months ended September 30, 2025 and September 30, 2024, the primary drivers of the difference between Distributable Earnings and GAAP net income for both periods were adjustments to remove unrealized gains on residential loans in securitization trusts and non-recourse securitization obligation and unrealized gains on residential loans.
−Removed: The table below sets forth a reconciliation of net income (loss) allocable to common stockholders, calculated in accordance with GAAP, to Distributable Earnings for the three and nine months ended September 30, 2025 and 2024:
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
+Added: Distributable Earnings were approximately a gain of $4.6 million and a gain of $4.1 million for the three months ended March 31, 2026 and 2025, respectively.
+Added: The primary drivers of this quarter’s Distributable Earnings as compared to GAAP net income are the adjustments to remove unrealized losses associated with our residential loans and residential loans in securitization trusts and non-recourse securitization obligation portfolios.
+Added: The table below sets forth a reconciliation of net income (loss) allocable to common stockholders, calculated in accordance with GAAP, to Distributable Earnings for the three months ended March 31, 2026 and 2025:
+Added: Three Months Ended
+Added: March 31, 2026 March 31, 2025
(in thousands)
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Net unrealized (gains) losses on residential loans 3,979 (3,041)
−Removed: Net unrealized (gains) losses on commercial loans — — $ — (49)
−Removed: Stock compensation expense 398 604 930 1,864
+Added: Non-cash equity compensation expense 423 237
Distributable Earnings $ 4,636 $ 4,144
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Our methodology for calculating Distributable Earnings Return on Average Equity may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our Distributable Earnings Return on Average Equity may not be comparable to similar measures presented by other REITs.
−Removed: Set forth below is our computation of Distributable Earnings Return on Average Equity for the three and nine months ended September 30, 2025 and 2024:
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
+Added: Set forth below is our computation of Distributable Earnings Return on Average Equity for the three months ended March 31, 2026 and 2025:
+Added: Three Months Ended
+Added: March 31, 2026 March 31, 2025
($ in thousands)
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Book Value per Share of Common Stock
−Removed: The following table sets forth the calculation of our book value per share of common stock as of September 30, 2025 and December 31, 2024:
−Removed: September 30, 2025 December 31, 2024
+Added: The following table sets forth the calculation of our book value per share of common stock as of March 31, 2026 and December 31, 2025:
+Added: March 31, 2026 December 31, 2025
(in thousands except for share and per share data)
−Removed: Total stockholders’ equity $ 264,165 $ 238,967
+Added: Common stockholders’ equity $ 256,902 $ 267,523
Number of shares of common stock outstanding at period end 24,914,647 24,914,647
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Economic book value does not represent and should not be considered as a substitute for book value per share of common stock or stockholders’ equity, as determined in accordance with GAAP, and our calculation of this measure may not be comparable to similarly titled measures reported by other companies.
−Removed: The following table sets forth a reconciliation from GAAP total stockholders’ equity and book value per share of common stock to economic book value and economic book value per share of common stock as of September 30, 2025 and December 31, 2024:
−Removed: September 30, 2025 December 31, 2024
+Added: The following table sets forth a reconciliation from GAAP total stockholders’ equity and book value per share of common stock to economic book value and economic book value per share of common stock as of March 31, 2026 and December 31, 2025:
+Added: March 31, 2026 December 31, 2025
(in thousands except for share and per share data)
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Results of Operations
−Removed: Three Months Ended September 30, 2025 and 2024
−Removed: The following table sets forth a summary of our results of operations for the three months ended September 30, 2025 and 2024:
+Added: Three Months Ended March 31, 2026 and 2025
+Added: The following table sets forth a summary of our results of operations for the three months ended March 31, 2026 and 2025:
Three Months Ended
−Removed: September 30, 2025 September 30, 2024
+Added: March 31, 2026 March 31, 2025
(in thousands)
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Net realized gain (loss) on mortgage loans, derivative contracts, RMBS, and CMBS $ (2,721) $ (3,182)
−Removed: Net unrealized gain (loss) on trading securities, mortgage loans, portion of debt at fair value option, and derivative contracts
−Removed: 11,280 35,172
+Added: 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
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Stock compensation 423 237
+Added: Securitization costs 1,402 —
Management fee incurred with affiliate 1,129 1,145
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Net Interest Income
−Removed: The following table sets forth the components of net interest income for the three months ended September 30, 2025 and 2024:
+Added: The following table sets forth the components of net interest income for the three months ended March 31, 2026 and 2025:
Three Months Ended
−Removed: September 30, 2025 September 30, 2024
+Added: March 31, 2026 March 31, 2025
(in thousands)
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Notes payable 2,824 260,637 3,762 240,628
−Removed: Non-recourse securitization obligation, collateralized by residential mortgage loans 19,564 1,746,766 13,731 1,362,039
+Added: Non-recourse securitization obligation, collateralized by residential mortgage loans in securitization trusts 22,541 1,933,249 16,843 1,574,110
Repurchase facilities 733 56,260 863 62,631
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Net interest income $ 12,110 $ 10,087
−Removed: We generated $9.2 million greater interest income for the quarter ended September 30, 2025 than in the comparable period for 2024, driven by increases in both the amount and yields of our target assets.
−Removed: Interest expense increased by $8.1 million for the quarter ended September 30, 2025 compared to the comparable period for 2024, driven by increases in our total borrowings and our 2030 Notes issuance.
−Removed: Overall, the increase in our interest income outpaced the increase in interest expense and drove a 12.9%, or $1.2 million, increase in net interest income for the quarter ended September 30, 2025 than in the comparable period of 2024.
+Added: We generated $7.8 million greater interest income for the quarter ended March 31, 2026 compared to the comparable period for 2025, driven by increases in the amount of our target assets.
+Added: Interest expense increased by $5.8 million for the quarter ended March 31, 2026 compared to the comparable period for 2025, due to new asset purchases and securitizations, collateralized by residential mortgage loans in securitization trusts as well as our 2030 Notes issued in May 2025.
+Added: Overall, this increase in interest expense was mitigated by lower average borrowing costs.
+Added: Overall, the increase in our interest income outpaced the increase in interest expense and drove a 20%, or $2.0 million, increase in net interest income for the quarter ended March 31, 2026 compared to the comparable period for 2025.
Total Realized and Unrealized Gains (Losses)
−Removed: The components of total realized and unrealized gains (losses), net for the three months ended September 30, 2025 and 2024 are set forth as follows:
+Added: The components of total realized and unrealized gains (losses), net for the three months ended March 31, 2026 and 2025 are set forth as follows:
Three Months Ended
−Removed: September 30, 2025 September 30, 2024
+Added: March 31, 2026 March 31, 2025
(in thousands)
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Realized and unrealized gain (loss) on residential mortgage loans (4,042) 2,936
−Removed: Realized and unrealized gain (loss) on U.S.
−Removed: Treasury securities
Unrealized appreciation (depreciation) on interest rate futures 1,453 (1,934)
−Removed: Realized gain/(loss) on AOMT Majority Owned Affiliates (“MOA”) (138) —
−Removed: Total realized and unrealized gains (losses), net $ 4,723 $ 28,837
−Removed: For the three months ended September 30, 2025 and 2024, total realized and unrealized gains and (losses), net resulted in net gains of $4.7 million and $28.8 million, respectively.
−Removed: During the three months ended September 30, 2025, realized and unrealized gains on residential mortgage loans, and realized and unrealized gain (loss) on securitization, net of unrealized gain (loss) on non-recourse securitization obligation were the primary drivers of the overall gain to our portfolio.
−Removed: During the three months ended September 30, 2024, realized gains losses on securitization, net of unrealized gain (loss) on non-recourse securitization obligation was the key drivers of the overall gain.
−Removed: Operating Expenses
−Removed: For the three months ended September 30, 2025 and 2024, our operating expenses were $1.1 million and $1.5 million, respectively.
−Removed: Our operating expenses decreased compared to the comparative period due to a decrease in expenses associated with the acquisition of whole loans in our whole loans portfolio.
−Removed: Operating Expenses Incurred with Affiliate
−Removed: For the three months ended September 30, 2025 and 2024, our operating expenses incurred with affiliate were $0.5 million and $0.5 million, respectively.
−Removed: These expenses, which are substantially comprised of payroll reimbursements to our Manager, were consistent with the three months ended September 30, 2025 compared to the same period of 2024.
−Removed: Stock Compensation
−Removed: For the three months ended September 30, 2025 and 2024, our stock compensation expense was $0.4 million and $0.6 million, respectively.
−Removed: Our stock compensation expense decreased for the three months ended September 30, 2025 due primarily to the vesting of stock awards granted at our IPO.
−Removed: Management Fee Incurred with Affiliate
−Removed: For the three months ended September 30, 2025 and 2024, our management fee incurred with affiliate was $1.2 million and $1.2 million, respectively.
−Removed: Minor movements are attributable to changes in our average Equity (as defined in the Management Agreement) for the three months ended September 30, 2025 as compared to the same period in 2024.
−Removed: The calculation of Equity for the purposes of the Management Agreement includes the addition or subtraction of Distributable Earnings, which is the primary departure from the calculation of equity in accordance with GAAP.
−Removed: Nine Months Ended September 30, 2025 and 2024
−Removed: The following table sets forth a summary of our results of operations for the nine months ended September 30, 2025 and 2024:
−Removed: Nine Months Ended
−Removed: September 30, 2025 September 30, 2024
−Removed: (in thousands)
−Removed: INTEREST INCOME, NET
−Removed: Interest income $ 104,620 $ 78,558
−Removed: Interest expense 74,414 51,495
−Removed: NET INTEREST INCOME $ 30,206 $ 27,063
−Removed: REALIZED AND UNREALIZED GAINS (LOSSES), NET
−Removed: Net realized gain (loss) on mortgage loans, derivative contracts, RMBS, and CMBS $ (12,238) $ (14,527)
−Removed: Net unrealized gain (loss) on trading securities, mortgage loans, portion of debt at fair value option, and derivative contracts 26,329 48,514
−Removed: TOTAL REALIZED AND UNREALIZED GAINS (LOSSES), NET $ 14,091 $ 33,987
−Removed: Operating expenses $ 3,653 $ 5,282
−Removed: Operating expenses incurred with affiliate 1,379 1,444
−Removed: Stock compensation 930 1,864
−Removed: Securitization costs 1,866 1,583
−Removed: Management fee incurred with affiliate 3,454 3,810
−Removed: Total operating expenses $ 11,282 $ 13,983
−Removed: INCOME (LOSS) BEFORE INCOME TAXES $ 33,015 $ 47,067
−Removed: Income tax expense (benefit) 307 3,261
−Removed: NET INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS $ 32,708 $ 43,806
−Removed: Other comprehensive income (loss) 2,479 4,534
−Removed: TOTAL COMPREHENSIVE INCOME (LOSS) $ 35,187 $ 48,340
−Removed: Net Interest Income
−Removed: The following table sets forth the components of net interest income for the nine months ended September 30, 2025 and 2024:
−Removed: Nine Months Ended
−Removed: September 30, 2025 September 30, 2024
−Removed: (in thousands)
−Removed: Interest income Interest income / expense Average balance Interest income / expense Average balance
−Removed: Residential mortgage loans $ 14,243 $ 279,094 $ 13,925 $ 284,211
−Removed: Residential mortgage loans in securitization trusts 76,700 1,813,488 51,851 1,357,840
−Removed: Commercial mortgage loans 327 5,204 258 5,231
−Removed: RMBS and Majority Owned Affiliate
−Removed: 11,022 144,120 9,613 148,677
−Removed: CMBS 761 5,436 1,097 6,428
−Removed: Treasury securities 61 2,222 548 14,528
−Removed: Other interest income 1,506 46,177 1,266 39,239
−Removed: Total interest income $ 104,620 $ 78,558
−Removed: Interest expense
−Removed: Notes payable $ 9,655 213,187 $ 9,928 199,644
−Removed: Non-recourse securitization obligation, collateralized by residential mortgage loans 56,261 1,688,158 37,624 1,285,118
−Removed: Repurchase facilities 2,869 62,830 2,980 64,431
−Removed: Senior Unsecured Notes 5,629 68,245 963 35,681
−Removed: Total interest expense $ 74,414 $ 51,495
−Removed: Net interest income $ 30,206 $ 27,063
−Removed: Net interest income for the nine months ended September 30, 2025 and 2024 was $30.2 million and $27.1 million, respectively.
−Removed: Net interest income increased in the nine months ended September 30, 2025 as compared to the same period in 2024, primarily due to higher interest income generated by increase balances in our residential mortgage loans in securitization trusts portfolio.
−Removed: Similarly, the increase in interest expense was also driven by the increased balance of our non-recourse securitization obligation, collateralized by residential mortgage loans portfolio during the nine months ended September 30, 2025.
−Removed: The net interest income associated with our residential mortgage loans in securitization trusts portfolio and non-recourse securitization obligation, collateralized by residential mortgage loans portfolio was $20.4 million in the nine months ended September 30, 2025 as compared to $14.2 million in the comparable period of 2024.
−Removed: Total Realized and Unrealized Gains (Losses)
−Removed: The components of total realized and unrealized gains (losses), net for the nine months ended September 30, 2025 and 2024 are set forth as follows:
−Removed: Nine Months Ended
−Removed: September 30, 2025 September 30, 2024
−Removed: (in thousands)
−Removed: Realized and unrealized gain (loss) on securitization, net of unrealized gain (loss) on non-recourse securitization obligation
−Removed: $ 16,149 $ 25,607
−Removed: Realized gain (loss) on RMBS
−Removed: (2,109) (2,469)
−Removed: Realized and unrealized gain (loss) on Whole Pool Agency RMBS
−Removed: 3,668 (6,355)
−Removed: Realized gain (loss) on CMBS (553) (186)
−Removed: Realized gain (loss) on interest rate futures (5,636) (622)
−Removed: Realized and unrealized gain (loss) on TBAs (3,761) 5,992
−Removed: Realized and unrealized gain (loss) on residential mortgage loans
−Removed: Realized and unrealized gain (loss) on commercial mortgage loans
−Removed: Realized and unrealized gain (loss) on U.S.
−Removed: Treasury securities
−Removed: Unrealized appreciation (depreciation) on interest rate futures
Realized gain/(loss) on AOMT MOA (248) (105)
Total realized and unrealized gains (losses), net $ (14,313) $ 13,443
−Removed: For the nine months ended September 30, 2025 and 2024, total realized and unrealized gains (losses), net resulted in a net gains of $14.1 million and $34.0 million, respectively.
−Removed: During the nine months ended September 30, 2025, realized and unrealized gains on securitization, net of unrealized gain (loss) on non-recourse securitization obligation, partially offset by realized losses on RMBS, were the primary drivers of the net gain.
−Removed: In the nine months ended September 30, 2024, the net realized and unrealized gain was primarily due to gains on securitization, net of unrealized gain (loss) on non-recourse securitization obligation, and realized and unrealized gains on residential mortgage loans.
+Added: For the three months ended March 31, 2026 and 2025, total realized and unrealized gains and (losses), net resulted in a net loss of ($14.3) million and a gain of $13.4 million, respectively.
+Added: During the three months ended March 31, 2026, the ($11.2) million of realized and unrealized loss on securitization, net of unrealized gain (loss) on non-recourse securitization obligation and the ($4.0) million of realized and unrealized loss on our residential mortgage loan portfolio were the primary driver of the overall loss.
+Added: These losses are substantially comprised of unrealized losses associated with valuation decreases in our securitization, net of unrealized gain (loss) on non-recourse securitization obligation and our residential mortgage loan portfolios, as well as realized losses associated with the loss of unamortized premiums in these portfolios.
+Added: During the three months ended March 31, 2025, realized and unrealized gains on securitization, net of unrealized gain (loss) on non-recourse securitization obligation was the key drivers of the overall gain.
Operating Expenses
−Removed: For the nine months ended September 30, 2025 and 2024, our operating expenses were $3.7 million and $5.3 million, respectively.
−Removed: Our operating expenses decreased during the nine months ended September 30, 2025 as compared to the comparative period due to continued cost savings actions such as in-sourcing of key accounting functions, vendor contract negotiations, and a decrease in servicing fees associated with servicing our whole loan portfolio.
+Added: For the three months ended March 31, 2026 and 2025, our operating expenses were $1.7 million and $1.2 million, respectively.
+Added: Our operating expenses increased compared to the comparative period due to increases in audit and loan diligence fees associated with a larger overall balance in our target portfolio.
Operating Expenses Incurred with Affiliate
−Removed: For the nine months ended September 30, 2025 and 2024, our operating expenses incurred with affiliate were $1.4 million and $1.4 million, respectively.
−Removed: These expenses, which are substantially comprised of payroll reimbursements to our Manager, decreased slightly versus the comparative period due to achieved resource efficiencies.
+Added: For the three months ended March 31, 2026 and 2025, our operating expenses incurred with affiliate were $0.6 million and $0.4 million, respectively.
+Added: These expenses, which are substantially comprised of payroll reimbursements to our Manager, increased in the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due to standard annual compensation increases.
Stock Compensation
−Removed: For the nine months ended September 30, 2025 and 2024 our stock compensation expense was $0.9 million and $1.9 million, respectively.
−Removed: Stock compensation expense decreased for the nine months ended September 30, 2025 due primarily to the vesting of stock awards granted at our IPO.
+Added: For the three months ended March 31, 2026 and 2025, our stock compensation expense was $0.4 million and $0.2 million, respectively.
+Added: Our stock compensation expense increased for the three months ended March 31, 2026 due to the issuance of new performance based stock awards in 2025.
Securitization Costs
−Removed: Securitization costs of $1.9 million were incurred for the nine months ended September 30, 2025 in connection with the AOMT 2025-4 and AOMT 2025-6 securitizations.
−Removed: There were $1.6 million of securitization costs incurred for the comparable period in 2024, representing costs incurred in connection with the AOMT 2024-3, AOMT 2024-4, and AOMT 2024-6 securitizations.
+Added: For the three months ended March 31, 2026 and 2025, we incurred $1.4 million of securitization costs and no securitization costs, respectively.
+Added: The securitization costs in the three months ended March 31, 2026 are associated with the AOMT 2026-2 securitization in March 2026, and there was no securitization activity in the three months ended March 31, 2025.
Management Fee Incurred with Affiliate
−Removed: For the nine months ended September 30, 2025 and 2024, our management fee incurred with affiliate was $3.5 million and $3.8 million, respectively.
−Removed: The decrease is due to the decrease in our average Equity as defined in the Management Agreement for the nine months ended September 30, 2025 as compared to the same period in 2024.
−Removed: The calculation of Equity for the purposes of the Management Agreement includes the addition or subtraction of Distributable Earnings, which is the primary departure from the calculation of equity in accordance with GAAP.
+Added: For the three months ended March 31, 2026 and 2025, our management fee incurred with affiliate was $1.1 million and $1.1 million, respectively.
+Added: These expenses, which were flat for the three months ended March 31, 2026 versus the comparative period, are driven by our average Equity (as defined in the Management Agreement).
Our Portfolio
−Removed: As of September 30, 2025, our portfolio consisted of approximately $2.5 billion of residential mortgage loans, RMBS, and other target assets.
+Added: As of March 31, 2026, our portfolio consisted of approximately $2.7 billion of residential mortgage loans, RMBS, and other target assets.
Certain of these portfolio assets are located in states such as Florida and California where natural disasters such as hurricanes, wildfires and earthquakes may occasionally occur.
1 unchanged sentence
The graphs in the subsequent detail of residential mortgage loans, residential mortgage loans held in securitization trusts, and residential mortgage loans underlying RMBS issuances show the percentage of residential mortgage loans held in each state where there is a concentration of loans.
−Removed: The following table sets forth additional information regarding our portfolio, including the manner in which our equity capital was allocated among investment types, as of September 30, 2025:
+Added: The following table sets forth additional information regarding our portfolio, including the manner in which our equity capital was allocated among investment types, as of March 31, 2026:
Fair Value Collateralized Debt Allocated Capital % of Total Capital
5 unchanged sentences
RMBS $ 212,596 $ 57,000 $ 155,596 60.6 %
−Removed: Total investment securities $ 235,024 $ 54,041 $ 180,983 68.5 %
Investments in Majority-Owned Affiliates (1)
25,667 — 25,667 10.0 %
+Added: Total investment securities $ 238,263 $ 57,000 $ 181,263 70.6 %
Total investment portfolio $ 2,733,411 $ 2,328,883 $ 404,528 157.5 %
Target assets $ 2,733,411 $ 2,328,883 $ 404,528 157.5 %
−Removed: $ 2,544,293 $ 2,123,306 $ 420,987 159.4 %
Cash $ 41,963 $ — $ 41,963 16.3 %
2 unchanged sentences
Total $ 2,585,785 $ 2,328,883 $ 256,902 100 %
−Removed: (1) "Investments in Majority-Owned Affiliates” is held at amortized cost.
−Removed: (2) “Target assets” as defined by us excludes U.S.
−Removed: Treasury securities and includes investments in Majority-Owned Affiliates.
−Removed: (3) Other assets and liabilities presented is calculated as a net liability substantially comprised of $153.8 million due to broker for our quarter-end purchase of certain Freddie Mac and Fannie Mae-issued whole pool agency residential mortgage-backed securities (“Whole Pool Agency RMBS”), and excluding the portion of “other assets” which includes our investment in a Majority-Owned Affiliate, which is considered a target asset.
+Added: (1) Our Investment in Majority-Owned Affiliates is held at its amortized cost basis.
+Added: (2) Other assets and liabilities presented is calculated as a net liability substantially comprised of $129.4 million due to broker for our quarter-end purchase of certain Freddie Mac and Fannie Mae-issued Whole Pool Agency RMBS, and excluding the portion of “other assets” which includes our investment in Majority-Owned Affiliates, which is considered a target asset.
As of December 31, 2025, our portfolio consisted of approximately $2.7 billion of residential mortgage loans, RMBS, and other target assets.
12 unchanged sentences
Target assets $ 2,676,389 $ 2,188,119 $ 488,270 182.5 %
−Removed: $ 2,200,982 $ 1,773,626 $ 427,356 167.4 %
Cash $ 41,619 $ — $ 41,619 15.6 %
3 unchanged sentences
(1) "Investment in Majority-Owned Affiliate” is held at its amortized cost basis.
−Removed: (2) “Target assets” as defined by us excludes U.S.
−Removed: Treasury securities, and includes our investment in Majority-Owned Affiliates.
(2) Other assets and liabilities presented is calculated as a net liability substantially comprised of $198.2 million due to broker for our quarter-end purchase of certain Freddie Mac and Fannie Mae-issued Whole Pool Agency RMBS, and excluding the portion of “other assets” which includes our investment in Majority-Owned Affiliates, which is considered a target asset.
−Removed: Additionally, other assets includes $5.2 million of commercial loans and $5.6 million of CMBS.
Residential Mortgage Loans
−Removed: The following table sets forth additional information on the residential mortgage loans in our portfolio as of September 30, 2025:
+Added: The following table sets forth additional information on the residential mortgage loans in our portfolio as of March 31, 2026:
Portfolio Range Portfolio Weighted Average
3 unchanged sentences
Maturity date 5/1/2026 - 2/14/2066
+Added: February, 2055
FICO score at loan origination 628 - 850
−Removed: Combined loan-to-value ratio (“CLTV”) at loan origination
+Added: CLTV 1 at loan origination
DTI at loan origination 1.7% - 50.0%
1 unchanged sentence
Percentage of loans 90+ days delinquent (based on UPB) N/A 1.1%
+Added: (1) "CLTV” means combined loan-to-value ratio, which is calculated as the total outstanding principal amount of, if applicable, the outstanding principal amount of a HELOC plus the outstanding principal amount of a loan plus any financing that is pari passu with or senior to such loan at the time of acquisition, divided by the applicable real estate value at acquisition of such loan.
+Added: The real estate value reflects the results of third-party appraisals obtained by the selling mortgage companies prior to the loan closing.
The following table sets forth additional information on the residential mortgage loans in our portfolio as of December 31, 2025:
4 unchanged sentences
Maturity date 1/26/2040 - 10/19/2065
−Removed: November 2054
FICO score at loan origination 628-850
CLTV at loan origination 8.7%-85.0%
−Removed: 31.9%-90.0% 71.7%
DTI at loan origination 1.7%-50.0%
1 unchanged sentence
Percentage of loans 90+ days delinquent (based on UPB) N/A 0.4%
−Removed: The following charts illustrate the distribution of the credit scores and interest rates by the number of loans in our residential mortgage loan portfolio as of September 30, 2025:
+Added: The following charts illustrate the distribution of the credit scores and interest rates by the number of loans in our residential mortgage loan portfolio as of March 31, 2026:
The following charts illustrate the distribution of the credit scores and interest rates by the number of loans in our residential mortgage loan portfolio as of December 31, 2025:
−Removed: The following charts illustrate additional characteristics of our residential mortgage loans in our portfolio that we owned directly as of September 30, 2025, based on the product profile, borrower profile, and geographic location (percentages are based on the aggregate unpaid principal balance of such loans):
−Removed: Characteristics of Our Residential Mortgage Loans as of September 30, 2025:
−Removed: No state in “Other” represents more than a 3% concentration of the residential mortgage loans in our portfolio that we owned directly as of September 30, 2025.
+Added: The following charts illustrate additional characteristics of our residential mortgage loans in our portfolio that we owned directly as of March 31, 2026, based on the product profile, borrower profile, and geographic location (percentages are based on the aggregate unpaid principal balance of such loans):
+Added: Characteristics of Our Residential Mortgage Loans as of March 31, 2026:
+Added: No state in “Other” represents more than a 3% concentration of the residential mortgage loans in our portfolio that we owned directly as of March 31, 2026.
Numbers presented may add to more than 100% due to rounding.
4 unchanged sentences
Residential Mortgage Loans Held in Securitization Trusts
−Removed: The following table sets forth the information regarding the underlying collateral of our residential mortgage loans held in securitization trusts as of September 30, 2025:
+Added: The following table sets forth the information regarding the underlying collateral of our residential mortgage loans held in securitization trusts as of March 31, 2026:
($ in thousands)
UPB $2,277,410
+Added: Fair Value $2,249,614
Number of loans 5,392
1 unchanged sentence
Average loan amount $424
−Removed: Weighted average LTV at loan origination and deal date 66.8%
+Added: Weighted average CLTV at loan origination and deal date 66.9%
Weighted average credit score at loan origination and deal date 748
2 unchanged sentences
(1) CPR is a method of expressing the prepayment rate for a mortgage pool that assumes that a constant fraction of the remaining principal is prepaid each month or year.
−Removed: The following chart illustrates the geographic distribution of the underlying collateral of our residential mortgage loans held in securitization trusts as of September 30, 2025 (percentages are based on the aggregate unpaid principal balance of such loans):
−Removed: No state in “Other” represents more than a 3% concentration of the underlying collateral of our residential mortgage loans held in securitization trusts as of September 30, 2025.
+Added: The following chart illustrates the geographic distribution of the underlying collateral of our residential mortgage loans held in securitization trusts as of March 31, 2026 (percentages based on the aggregate unpaid principal balance of such loans):
+Added: No state in “Other” represents more than a 3% concentration of the underlying collateral of our residential mortgage loans held in securitization trusts as of March 31, 2026.
Numbers presented may add to more than 100% due to rounding.
6 unchanged sentences
Average loan amount $424
−Removed: Weighted average LTV at loan origination and deal date 67.0%
+Added: Weighted average CLTV at loan origination and deal date 66.9%
Weighted average credit score at loan origination and deal date 747
4 unchanged sentences
Numbers presented may add to more than 100% due to rounding.
−Removed: We have participated in numerous securitization transactions pursuant to which we contributed to a securitization trust under the purview of AOMT I, LLC, non‑QM loans that we had accumulated and held on our balance sheet.
−Removed: These loans were purchased from affiliated and unaffiliated entities.
−Removed: In return, we received bonds from these securitization trusts, and cash.
+Added: We have participated in numerous securitization transactions alongside other Angel Oak entities.
+Added: In return, we received our pro rata share of bonds from these securitizations, and cash.
At times, we were allocated certain risk retention securities as part of these transactions.
Risk retention securities represent at least 5% of a horizontal or vertical slice of the bonds issued as part of the transaction.
−Removed: Certain information regarding the mortgage loans underlying our portfolio of RMBS issued in such securitization transactions is set forth below as of September 30, 2025, unless otherwise stated:
−Removed: 2019 Securitizations
−Removed: 2020 Securitizations
−Removed: 2023 Securitizations
−Removed: 2024 Securitizations
−Removed: 2025 Securitizations
+Added: Certain information regarding the mortgage loans underlying our portfolio of RMBS issued in such securitization transactions is set forth below as of March 31, 2026, unless otherwise stated:
+Added: March 31, 2026 AOMT 2019 Securitizations AOMT 2020 Securitizations AOMT 2023 Securitizations AOMT 2024 Securitizations AOMT 2025 Securitizations
($ in thousands)
3 unchanged sentences
Average loan amount $274 $309 $501 $421 $170
−Removed: Weighted average LTV at loan origination and deal date 66.4 % 74.1 % 67.3 % 67.7 % 72.0 %
+Added: Weighted average CLTV at loan origination and deal date 66% 74% 67% 67% 68%
Weighted average credit score at loan origination and deal date 718 719 732 736 745
3 unchanged sentences
Weighted Average 90+ Delinquency (as a % of Original Balance) 0.8% 0.9% 3.9% 2.4% 1.2%
−Removed: Weighted Average LTV of 90+ Delinquent Loans (FHFA HPI Estimate) (2)
+Added: Weighted Average CLTV of 90+ Delinquent Loans (FHFA HPI Estimate) (2)
48.3% 74.1% 64.0% 67.4% 52.1%
4 unchanged sentences
(1) CPR is a method of expressing the prepayment rate for a mortgage pool that assumes that a constant fraction of the remaining principal is prepaid each month or year.
−Removed: (2) AOMT 2020-3 does not have LTV or Federal Housing Finance Agency Home Price Index Estimates (“FHFA HPI Estimates”);
−Removed: accordingly, original LTV is used.
−Removed: (3) Represents the fair value of the securities we hold in the first loss tranche in each securitization including the total at risk for the Majority-Owned Affiliates.
+Added: (2) AOMT 2020-3 does not have combined loan-to-value ratio (“CLTV”) or Federal Housing Finance Agency Home Price Index Estimates (“FHFA HPI Estimates”);
+Added: accordingly, original CLTV is used.
+Added: (3) Represents the fair value of the securities we hold in the first loss tranche in each securitization.
+Added: (4) The fair value of the first loss pieces presented for the 2023 - 2025 securitizations is the total at risk for the Majority-Owned Affiliates.
(5) Represents the average size of the subordinate securities we own as investments in each securitization relative to the average current size of the securitization.
Certain information regarding the mortgage loans underlying our portfolio of RMBS issued in AOMT securitization transactions is set forth below as of December 31, 2025, unless otherwise stated:
−Removed: 2019 Securitizations
−Removed: 2020 Securitizations
−Removed: 2023 Securitizations
−Removed: 2024 Securitizations
+Added: December 31, 2025 AOMT 2019 Securitizations AOMT 2020 Securitizations AOMT 2023 Securitizations AOMT 2024 Securitizations AOMT 2025 Securitizations
($ in thousands)
3 unchanged sentences
Average loan amount $273 $313 $505 $424 $181
−Removed: Weighted average LTV at loan origination and deal date 68.7 % 74.1 % 68.4 % 68.5 %
+Added: Weighted average CLTV at loan origination and deal date 66% 74% 67% 67% 68%
Weighted average credit score at loan origination and deal date 718 719 732 736 746
3 unchanged sentences
Weighted Average 90+ Delinquency (as a % of Original Balance) 1.0% 0.9% 3.2% 2.3% 0.7%
−Removed: Weighted Average LTV of 90+ Delinquent Loans (FHFA HPI Estimate) (2)
+Added: Weighted Average CLTV of 90+ Delinquent Loans (FHFA HPI Estimate) (2)
47.5% 74.1% 65.3% 64.9% 65.3%
4 unchanged sentences
(1) CPR is a method of expressing the prepayment rate for a mortgage pool that assumes that a constant fraction of the remaining principal is prepaid each month or year.
−Removed: (2) AOMT 2020-3 does not have LTV or Federal Housing Finance Agency Home Price Index Estimates (“FHFA HPI Estimates”);
−Removed: accordingly, original LTV is used.
+Added: (2) AOMT 2020-3 does not have CLTV or FHFA HPI Estimates;
+Added: accordingly, original CLTV is used.
(3) Represents the fair value of the securities we hold in the first loss tranche in each securitization.
−Removed: (4) The fair value of the first loss pieces presented is the total at risk for the Majority-Owned Affiliates.
+Added: (4) The fair value of the first loss pieces presented for the 2023 - 2025 securitizations is the total at risk for the Majority-Owned Affiliates.
(5) Represents the average size of the subordinate securities we own as investments in each securitization relative to the average current size of the securitization.
−Removed: The following table provides certain information with respect to our RMBS portfolio both received in AOMT securitization transactions and acquired from other third parties as of September 30, 2025:
+Added: The following table provides certain information with respect to our RMBS portfolio both received in AOMT securitization transactions and acquired from other third parties as of March 31, 2026:
RMBS Repurchase Debt (1,3)
13 unchanged sentences
(1) Repurchase debt includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs).
−Removed: (2) The whole pool RMBS presented as of September 30, 2025 were purchased from a broker to whom the Company owed approximately $153.8 million, payable upon the settlement date of the trade.
+Added: (2) The whole pool RMBS presented as of March 31, 2026 were purchased from a broker to whom the Company owed approximately $129.4 million, payable upon the settlement date of the trade.
See Note 6 — Due to Broker in our unaudited condensed consolidated financial statements included in this report.
13 unchanged sentences
— — — 34,694 — 34,694 (34,694) — (34,694)
−Removed: Subtotal $ 98,791 $ 201,452 $ 300,243 $ 50,555 $ — $ 50,555 $ 48,236 $ 201,452 $ 249,688
+Added: $ 82,140 $ 197,865 $ 280,005 $ 54,041 $ — $ 54,041 $ 28,099 $ 197,865 $ 225,964
Investment in Majority Owned Affiliates
−Removed: Total $ 119,471 $ 201,452 $ 320,923 $ 50,555 $ — $ 50,555 $ 68,916 $ 201,452 $ 270,368
+Added: 25,474 — 25,474 — — — 25,474 — 25,474
+Added: $ 107,614 $ 197,865 $ 305,479 $ 54,041 $ — $ 54,041 $ 53,573 $ 197,865 $ 251,438
(1) Repurchase debt includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs).
3 unchanged sentences
These bonds, with a fair value of $198.9 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 condensed consolidated balance sheets.
−Removed: The following table sets forth information with respect to our RMBS ending balances, at fair value, for the quarter ended September 30, 2025:
+Added: The following table sets forth information with respect to our RMBS ending balances, at fair value, for the period ended March 31, 2026:
Mezzanine Subordinate Interest Only Whole Pool Total
(in thousands)
−Removed: Beginning fair value as of June 30, 2025
−Removed: $ 12,831 $ 80,510 $ 10,992 $ 257,552 $ 361,885
+Added: Beginning fair value $ 13,252 $ 59,587 $ 9,301 $ 197,865 $ 280,005
Acquisitions:
2 unchanged sentences
IO and excess servicing prepayments — — (399) — (399)
+Added: Discount accretion and premium amortization 45 (139) (94)
Changes in fair value, net 968 2,781 319 (2,152) 1,916
−Removed: Ending fair value as of September 30, 2025
−Removed: $ 13,246 $ 56,382 $ 10,258 $ 155,138 $ 235,024
+Added: Ending fair value $ 14,265 $ 62,229 $ 9,221 $ 126,881 $ 212,596
The following table sets forth information with respect to our RMBS ending balances, at fair value, for the year ended December 31, 2025:
1 unchanged sentence
(in thousands)
−Removed: Beginning fair value as of December 31, 2023
−Removed: $ 10,972 $ 55,665 $ 13,059 $ 392,362 $ 472,058
+Added: Beginning fair value $ 12,735 $ 73,549 $ 12,508 $ 201,451 $ 300,243
Acquisitions:
4 unchanged sentences
Changes in fair value, net 362 1,033 1,048 3,167 5,610
−Removed: Ending fair value as of December 31, 2024
−Removed: $ 12,735 $ 73,549 $ 12,508 $ 201,451 $ 300,243
−Removed: The following chart illustrates the geographic diversification of the loans underlying our portfolio of RMBS issued in AOMT securitization transactions as of September 30, 2025 (percentages are based on the aggregate unpaid principal balance of such loans):
+Added: Ending fair value $ 13,252 $ 59,587 $ 9,301 $ 197,865 $ 280,005
+Added: The following chart illustrates the geographic diversification of the loans underlying our portfolio of RMBS issued in AOMT securitization transactions as of March 31, 2026 (percentages are based on the aggregate unpaid principal balance of such loans):
Geographic Diversification of Loans Underlying Our Portfolio
of RMBS Issued in AOMT Securitization Transactions
−Removed: (as of September 30, 2025)
−Removed: No state in “Other” represents more than a 3% concentration of the loans underlying our portfolio of RMBS issued in AOMT
−Removed: securitization transactions as of September 30, 2025.
+Added: (as of March 31, 2026)
+Added: No state in “Other” represents more than a 4% concentration of the loans underlying our portfolio of RMBS issued in AOMT securitization transactions as of March 31, 2026.
Numbers presented may add to more than 100% due to rounding.
8 unchanged sentences
Our financing sources currently include payments of principal and interest we receive on our investment portfolio, unused borrowing capacity under our in‑place loan financing lines and repurchase facilities, securitizations of our whole loans, and our ATM Program (as defined below).
−Removed: Additionally, on July 25, 2024, we closed an underwritten public offering and sale of, and issued, $50 million in aggregate principal amount of our 9.500% Senior Notes due July 2029 (the “2029 Notes” and, together with the 2030 Notes, the “Senior Unsecured Notes”).
−Removed: We have deployed the majority of the net proceeds from the offering of our 2029 Notes for general corporate purposes, which included the acquisition of non-QM loans and other target assets substantially sourced from our affiliated proprietary mortgage lending platform and other target assets through the secondary market in a manner consistent with our strategy and investment guidelines.
−Removed: Additionally, we used the net proceeds from the offering of our 2029 Notes to repurchase 1,707,922 shares of our common stock owned by Xylem Finance LLC, an affiliate of Davidson Kempner Capital Management LP, for an aggregate repurchase price of approximately $20.0 million.
−Removed: Furthermore, in May 2025, we closed an underwritten public offering and sale of, and issued, $42.5 million in aggregate principal amount of our 2030 Notes.
−Removed: We used the majority of the net proceeds from the offering of our 2030 Notes for general corporate purposes, which included the acquisition of non-QM loans and other target assets in a manner consistent with our strategy and investment guidelines.
−Removed: Our financing sources historically have included the foregoing, as well as capital contributions from our investors prior to our IPO, and the proceeds from our IPO and concurrent private placement (which capital has all been deployed).
+Added: In the past, we have also raised capital through public offerings of senior unsecured notes.
Going forward, we may also utilize other types of borrowings, including bank credit facilities and warehouse lines of credit, among others.
9 unchanged sentences
Description of Existing Financing Arrangements
−Removed: As of September 30, 2025, we were a party to three warehouse loan financing lines, which permitted borrowings in an aggregate amount of up to $1.1 billion.
−Removed: Subsequent to the quarter ended September 30, 2025, on October 6, 2025, the Company and one of its subsidiaries entered into a $200.0 million repurchase facility with Global Investment Bank 4 through the execution of the Master Repurchase Agreement.
−Removed: 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.
−Removed: 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.
−Removed: The interest rate is equal to the sum of (1) a spread of 1.60%, and (2) Term SOFR.
−Removed: The Company is subject to various financial and other covenants, including those relating to (1) declines in tangible net worth;
−Removed: (2) a maximum ratio of indebtedness to tangible net worth;
−Removed: and (3) minimum liquidity.
−Removed: The Master Repurchase Agreement expires on October 6, 2027, unless terminated earlier pursuant to the terms of the Master Repurchase Agreement.
−Removed: Subsequent to the quarter ended September 30, 2025, on October 10, 2025, the Company amended the Pricing Side Letter of its loan financing facility with Global Investment Bank 2.
−Removed: 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.
+Added: As of March 31, 2026, we were a party to four warehouse loan financing lines, which permitted borrowings in an aggregate amount of up to $1.3 billion.
+Added: Borrowings under uncommitted loan financing lines may be used to purchase whole loans for eventual securitization or loans purchased for long‑term investment purposes.
Our financing facilities are generally subject to limits on borrowings related to specific asset pools (“advance rates”) and other restrictive covenants, as is usual and customary.
−Removed: As of September 30, 2025, the advance rates (when required) of our three active lenders ranged from 60% to 92%, depending on the asset type and loan delinquency status.
−Removed: Our most restrictive covenants (when covenants are required by any of our three active lenders) included (1) our minimum tangible net worth must not (i) decline 20% or more in the previous 30 days, 25% or more in the previous 90 days, or 35% or more in the previous year, or (ii) fall below $200.0 million of tangible net worth as of September 30, 2022 plus 50% of any capital contribution made or raised after September 30, 2022;
−Removed: (2) our minimum liquidity must not fall
−Removed: below the greatest of (i) the product of 5% and the aggregate repurchase price for a specific loan financing facility as of such date of determination, (ii) $10.0 million and (iii) any other amount of liquidity that we have covenanted to maintain in any other note, indenture, loan agreement, guaranty, swap agreement or any other contract, agreement or transaction (including, without limitation, any repurchase agreement, loan and security agreement, or similar credit facility or agreement for borrowed funds);
+Added: As of March 31, 2026, the advance rates (when required) of our four active lenders ranged from 60% to 92%, depending on the asset type and loan delinquency status.
+Added: Our most restrictive covenants (when covenants are required by any of our four active lenders) included:
+Added: (1) our minimum tangible net worth must not (i) decline 20% or more in the previous 30 days, 25% or more in the previous 90 days, or 35% or more in the previous year, or (ii) fall below $200.0 million of tangible net worth as of September 30, 2022 plus 50% of any capital contribution made or raised after September 30, 2022;
+Added: (2) our minimum liquidity must not fall below the greatest of (x) the product of 5% and the aggregate repurchase price as it relates to Global Investment Bank 3 as of such date of determination, (y) $10.0 million and (z) any other amount of liquidity that we have covenanted to maintain in any other note, indenture, loan agreement, guaranty, swap agreement or any other contract, agreement or transaction (including, without limitation, any repurchase agreement, loan and security agreement, or similar credit facility or agreement for borrowed funds);
and (3) the maximum ratio of our and our subsidiaries’ total indebtedness to tangible net worth must not be greater than 5:1.
−Removed: Our minimum liquidity requirement as of September 30, 2025 was $10.0 million.
−Removed: A description of each loan financing facility in place during the quarter ended September 30, 2025 is set forth as follows:
+Added: Our minimum liquidity requirement as of March 31, 2026 was $10.0 million.
+Added: We were in compliance with all covenants as of March 31, 2026.
+Added: A description of each loan financing line is set forth as follows:
Multinational Bank 1 Loan Financing Facility.
3 unchanged sentences
Pursuant to the terms of the master repurchase agreement, the agreement may be renewed every three months for a maximum six-month term.
−Removed: As of September 30, 2025, the termination date of the master repurchase agreement was March 25, 2026, unless terminated earlier pursuant to the terms of the master repurchase agreement.
+Added: As of March 31, 2026, the termination date of the master repurchase agreement was June 25, 2026, unless terminated earlier pursuant to the terms of the master repurchase agreement.
The amount expected to be paid by Multinational Bank 1 for each eligible mortgage loan is based on an advance rate as a percentage of either the outstanding principal balance of the mortgage loan or the market value of the mortgage loan, whichever is less.
18 unchanged sentences
Pursuant to the agreement, one of our subsidiaries may sell to Global Investment Bank 2, and later repurchase, up to $250.0 million aggregate borrowings on mortgage loans.
−Removed: The agreement is set to terminate on March 27, 2026, unless terminated earlier pursuant to the terms of the agreement.
+Added: The agreement is set to terminate on April 21, 2028, unless terminated earlier pursuant to the terms of the master repurchase agreement.
The principal amount paid by Global Investment Bank 2 for each mortgage loan is based on a percentage of the market value, cost‑basis value, or unpaid principal balance of the mortgage loan (depending on the type of loan and certain other factors and subject to certain other adjustments).
1 unchanged sentence
Additionally, Global Investment Bank 2 is under no obligation to purchase the eligible mortgage loans we offer to sell to them.
−Removed: Upon our or our subsidiary’s repurchase of the mortgage loan, our subsidiaries are required to repay Global Investment Bank 2 the principal amount related to such mortgage loan plus accrued and unpaid interest at a rate based on the sum of (1) (A) the greater of (i) 0.00% and (ii) Term SOFR (which is defined as the forward-looking term rate based on the Secured
−Removed: Overnight Financing Rate for a corresponding tenor of one month) and (B) a pricing spread generally ranging from 1.75% to 3.35%.
−Removed: On October 10, 2025, the facility was amended to, among other changes, reduced the interest rate pricing spread to a range from 1.65% and 2.40%.
+Added: Upon our or our subsidiary’s repurchase of the mortgage loan, our subsidiaries are required to repay Global Investment Bank 2 the principal amount related to such mortgage loan plus accrued and unpaid interest at a rate based on the sum of (A) the greater of (i) 0.00% and (ii) Term SOFR (which is defined as the forward-looking term rate based on the Secured Overnight Financing Rate for a corresponding tenor of one month) and (B) a pricing spread generally ranging from 1.50% to 2.60%.
The agreement requires us to maintain various financial and other covenants, which include requirements surrounding:
11 unchanged sentences
Pursuant to the initial agreement, our subsidiaries could sell to Global Investment Bank 3, and later repurchase, up to $200.0 million aggregate borrowings on mortgage loans.
−Removed: On November 7, 2023, the facility was amended to set the base interest rate spread to 1.80% plus a 0.20% index spread adjustment for the first six (6) months of seasoning on this financing facility with an additional 0.25% increase following the first six (6) months.
On September 26, 2025, the facility’s termination date was extended to September 26, 2026.
−Removed: In addition, the interest rate pricing spread was reduced to a range from 1.75% to 4.75%;
−Removed: prior to this extension, the interest rate pricing spread was a range from 1.90% to 4.75%.
The loan financing line is marked‑to‑market at fair value, where Global Investment Bank 3 retains the right to determine the market value of the mortgage loan collateral in its sole good faith discretion and in a commercially reasonable manner and is under no obligation to purchase the eligible mortgage loans we offer to sell to them.
Further, the principal amount paid by Global Investment Bank 3 for each eligible mortgage loan is based on a percentage of the outstanding principal balance of the mortgage loan or the market value of the mortgage loan, whichever is less.
+Added: Upon any subsidiary’s repurchase of the mortgage loan, such subsidiary is required to repay Global Investment Bank 3 the principal amount related to such mortgage loan plus accrued and unpaid interest at a rate based on the sum of (1) Compound SOFR and (2) a pricing spread generally ranging from 1.75% - 4.75%.
The agreement contains margin call provisions that provide Global Investment Bank 3 with certain rights in the event of a decline in the market value of the purchased mortgage loans.
−Removed: Under those provisions, Global Investment Bank 3 could require us or our subsidiaries to transfer cash sufficient to eliminate any margin deficit resulting from such a decline.
+Added: Under those provisions, Global Investment Bank 3 could require us or our subsidiary to transfer cash sufficient to eliminate any margin deficit resulting from such a decline.
The agreement requires us to maintain various financial and other customary covenants.
1 unchanged sentence
The remedies for such events of default are also customary for this type of transaction and include the acceleration of the principal amount outstanding under the agreement and Global Investment Bank 3’s right to liquidate the mortgage loans then subject to the agreement.
−Removed: We and our subsidiaries are also required to pay certain customary fees to Global Investment Bank 3 and to reimburse Global Investment Bank 3 for certain costs and expenses incurred in connection with its structuring, management, and ongoing administration of the agreement.
−Removed: The following table sets forth the details of our financing lines as of each of September 30, 2025 and December 31, 2024:
+Added: We and our subsidiary are also required to pay certain customary fees to Global Investment Bank 3 and to reimburse Global Investment Bank 3 for certain costs and expenses incurred in connection with its structuring, management, and ongoing administration of the agreement.
+Added: Global Investment Bank 4 Loan Financing Facility
+Added: On October 6, 2025, the Company and one of its subsidiaries entered into a $200.0 million repurchase facility with a Global Investment Bank 4 through the execution of a Master Repurchase Agreement and Securities Contract (the “Global Investment Bank 4 Master Repurchase Agreement”).
+Added: The amount expected to be advanced by Global Investment Bank 4 is generally in line with other similar agreements that the Company has entered into.
+Added: Additionally, the rates, terms, events of default, and remedies for such events of default contained within the Global Investment Bank 4 Master Repurchase Agreement are generally in line with other similar agreements that the Company has entered into.
+Added: The interest rate is equal to the sum of (1) a spread of 1.60%, and (2) Term SOFR.
+Added: The Company is subject to various financial and other covenants, including those relating to (1) declines in tangible net worth;
+Added: (2) a maximum ratio of indebtedness to tangible net worth;
+Added: and (3) minimum liquidity.
+Added: The Global Investment Bank 4 Master Repurchase Agreement expires on October 6, 2027, unless terminated earlier pursuant to the terms of the Global Investment Bank 4 Master Repurchase Agreement.
+Added: The following table sets forth the details of our financing lines as of each of March 31, 2026 and December 31, 2025:
Spread Drawn Amount
−Removed: Note Payable Base Interest Rate September 30, 2025 December 31, 2024
+Added: Note Payable Base Interest Rate March 31, 2026 December 31, 2025
($ in thousands)
7 unchanged sentences
64,407 60,263
+Added: Global Investment Bank 4 (4)
+Added: Term SOFR 1.60% 25,655 33,403
Total $ 192,230 $ 218,757
−Removed: (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.
+Added: (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%.
−Removed: (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.
−Removed: This updated facility is extended through March 27, 2026.
−Removed: On October 10, 2025, the facility was amended to reduce the interest rate pricing spread to a range of 1.65% to 2.40%;
−Removed: prior to this amendment, the interest rate pricing spread was a range of 1.75% to 3.35%.
+Added: (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.
+Added: The amendment updates the seller underwriting guidelines to include home equity revolving lines of credit.
+Added: The termination date of the loan financing facility was extended to April 21, 2028.
+Added: In addition, the interest rate pricing spread
+Added: was updated to a range from 1.50% to 2.60%;
+Added: 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%.
−Removed: The following table sets forth the total unused borrowing capacity of each financing line as of September 30, 2025:
+Added: (4) On October 6, 2025, the Company and one of its subsidiaries entered into a $200.0 million repurchase facility with Global Investment Bank 4 through the execution of the Global Investment Bank 4 Master Repurchase Agreement.
+Added: 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.
+Added: 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.
+Added: The interest rate is equal to the sum of (1) a spread of 1.60%, and (2) Term SOFR.
+Added: 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.
+Added: 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
+Added: Global Investment Bank 4 200,000 25,655 174,345
Total $ 1,250,000 $ 192,230 $ 1,057,770
3 unchanged sentences
Treasury securities, securities issued by AOMT, Angel Oak’s securitization platform, and other securities we may acquire in accordance with our investment guidelines.
−Removed: The following table sets forth certain characteristics of our short-term repurchase facilities as of September 30, 2025 and December 31, 2024:
−Removed: September 30, 2025
+Added: The following table sets forth certain characteristics of our short-term repurchase facilities as of March 31, 2026 and December 31, 2025:
+Added: March 31, 2026
Repurchase Agreements Amount Outstanding Weighted Average Interest Rate Weighted Average Remaining Maturity (Days)
7 unchanged sentences
$ 54,041 5.44 % 16
−Removed: (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).
+Added: (1) A portion of repurchase debt outstanding as of both March 31, 2026 and December 31, 2025 includes borrowings against retained bonds received from on-balance sheet securitizations (i.e., consolidated VIEs).
The following table presents the amount of collateralized borrowings outstanding under repurchase facilities as of the end of each quarter, the average amount of collateralized borrowings outstanding under repurchase facilities during the quarter and the highest balance of any month end during the quarter:
7 unchanged sentences
Q3 2025 54,041 64,557 68,062
−Removed: 148,467 62,631 148,467
−Removed: 68,062 71,980 148,467
Q4 2025 54,041 54,041 54,041
+Added: Q1 2026 57,000 56,260 57,000
We utilize short‑term repurchase facilities on our RMBS portfolio and to finance assets for REIT asset test purposes.
3 unchanged sentences
Securitization Transactions
−Removed: Subsequent to the end of the third quarter, in October 2025, we issued AOMT 2025-10, an approximately $274.3 million scheduled unpaid principal balance securitization backed by a pool of residential mortgage loans.
−Removed: We issued AOMT 2025-10 as the sole contributor in the securitization.
−Removed: We 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.
−Removed: In May 2025, we and other affiliated entities participated in a securitization transaction of a pool of residential mortgage loans, approximately 17% of which were mortgage loans originated by our affiliated mortgage origination companies, secured primarily by first liens on one‑to‑four family residential properties.
−Removed: In the transaction, AOMT 2025-6 issued approximately $349.7 million in face value of bonds.
−Removed: Our proportionate share of 24.94% of the retained bonds and investments in MOAs was approximately $8.1 million, including a retained premium on issuance of approximately $2.7 million.
−Removed: We used the proceeds of the securitization transaction to repay outstanding debt of approximately $73.1 million and retained cash of $9.2 million, which was used for operational purposes.
−Removed: In April 2025, we were the sole contributor in a securitization transaction of a pool of residential mortgage loans, secured exclusively by first liens on one‑to‑four family residential properties.
−Removed: In the transaction, AOMT 2025-4 issued approximately $284.3 million in face value of bonds.
−Removed: We used the proceeds of the securitization transaction to repay outstanding debt of approximately $242.4 million and retained cash of $24.7 million, which was used for new loan purchases and operational purposes.
−Removed: In December 2024, we and other affiliated entities participated in a securitization transaction of a pool of residential mortgage loans, approximately 36% of which were mortgage loans originated by our affiliated mortgage origination companies, secured primarily by first liens on one‑to‑four family residential properties.
+Added: In March 2026, we were the sole participant in a securitization transaction of a pool of residential mortgage loans secured exclusively by first liens on one‑to‑four family residential properties.
In the transaction, AOMT 2026-2 issued approximately 272.3 million in face value of bonds.
−Removed: Our proportionate share of 57.92% of the retained bonds and investments in MOAs was approximately $15.1 million, including a retained premium on issuance of approximately $4.4 million.
−Removed: We used the proceeds of the securitization transaction to repay outstanding debt of approximately $141.5 million and retained cash of $15.6 million, which was used for operational purposes.
−Removed: We derecognized the mortgage loans sold in AOMT 2024-13 and recorded investments in RMBS and majority-owned affiliates (which is located within “other assets” on our consolidated balance sheet) as of September 30, 2025.
−Removed: In October 2024, we were the sole contributor in a securitization transaction of a pool of residential mortgage loans, approximately 42% of which were mortgage loans originated by our affiliated mortgage origination companies, secured exclusively by first liens on one‑to‑four family residential properties.
+Added: We used the proceeds to repay outstanding debt of approximately $234.1 million and retained cash of $23.9 million, which was used for new loan purchases and operational purposes.
+Added: We are the sole member of the depositor and also own and hold the call rights on the XS tranche of bonds, which is the “controlling class” of the bonds.
+Added: We have consolidated the AOMT 2026-2 securitization on our consolidated balance sheet, maintaining the residential mortgage loans held in the securitization trust and the related financing obligation thereto on our consolidated balance sheets as of March 31, 2026.
+Added: In December 2025, we and other affiliated entities participated in a securitization transaction of a pool of residential mortgage loans secured by second lien HELOCs (an open or closed end home equity revolving line of credit, secured by a mortgage, deed of trust or other instrument creating a first or junior lien on a residential property, which lien secures the related line of credit) on one‑to‑four family residential properties.
+Added: In the transaction, AOMT 2025-HB2 issued approximately $281.4 million in face value of bonds.
+Added: Our proportionate share of 21.03% of the retained bonds and investments in MOAs was approximately $7.0 million, including a retained discount on issuance of approximately $0.2 million.
+Added: We used the proceeds of the securitization transaction to repay outstanding debt of approximately $43.4 million and released cash of $12.4 million, which was used for new loan purchases and operational purposes.
+Added: We derecognized the mortgage loans sold in AOMT 2025-HB2 and recorded investments in RMBS and majority-owned affiliates (which is located within “other assets” on our consolidated balance sheet) as of March 31, 2026.
+Added: In October 2025, we were the sole participant in a securitization transaction of a pool of residential mortgage loans secured exclusively by first liens on one‑to‑four family residential properties.
In the transaction, AOMT 2025-10 issued approximately $274.3 million in face value of bonds.
−Removed: We used the proceeds of the securitization transaction to repay outstanding debt of approximately $260.4 million and retained cash of $39.4 million, which was used for new loan purchases and operational purposes.
+Added: We used the proceeds to repay outstanding debt of approximately $237.4 million and retained cash of $22.1 million, which was used for new loan purchases and operational purposes.
We are the sole member of the depositor and also own and hold the call rights on the XS tranche of bonds, which is the “controlling class” of the bonds.
−Removed: We have consolidated the AOMT 2024-10 securitization on our consolidated balance sheet, maintaining the residential mortgage loans held in the securitization trust and the related financing obligation thereto on our consolidated balance sheets as of September 30, 2025.
−Removed: In June 2024, we and other affiliated entities participated in a securitization transaction of a pool of residential mortgage loans, approximately 62% of which were mortgage loans originated by our affiliated mortgage origination companies, secured primarily by first liens on one‑to‑four family residential properties.
+Added: We have consolidated the AOMT 2025-10 securitization on our consolidated balance sheet, maintaining the residential mortgage loans held in the securitization trust and the related financing obligation thereto on our consolidated balance sheets as of March 31, 2026.
+Added: In May 2025, we and other affiliated entities participated in a securitization transaction of a pool of residential mortgage loans secured primarily by first liens on one‑to‑four family residential properties.
In the transaction, AOMT 2025-6 issued approximately $349.7 million in face value of bonds.
−Removed: Our proportionate share of 4.51% of the retained bonds and investments in MOAs was approximately $2.7 million, including a retained discount on issuance of approximately $0.8 million.
+Added: Our proportionate share of 24.94% of the retained bonds was approximately $8.1 million, including a retained premium on issuance of approximately $2.7 million.
We used the proceeds of the securitization transaction to repay outstanding debt of approximately $73.1 million and retained cash of $9.2 million, which was used for operational purposes.
−Removed: We derecognized the mortgage loans sold in AOMT 2024-6 and recorded investments in RMBS and majority-owned affiliates (which is located within “other assets” on our consolidated balance sheet) as of September 30, 2025.
−Removed: In April 2024, we were the sole contributor in a securitization transaction of a pool of residential mortgage loans, approximately 79% of which were mortgage loans originated by our affiliated mortgage origination companies, secured exclusively by first liens on one‑to‑four family residential properties.
+Added: We derecognized the mortgage loans sold in AOMT 2025-6 and recorded investments in RMBS and majority-owned affiliates (which is located within “other assets” on our consolidated balance sheet) as of March 31, 2026.
+Added: In April 2025, we were the sole participant in a securitization transaction of a pool of residential mortgage loans secured exclusively by first liens on one‑to‑four family residential properties.
In the transaction, AOMT 2025-4 issued approximately $284.3 million in face value of bonds.
1 unchanged sentence
We are the sole member of the depositor and also own and hold the call rights on the XS tranche of bonds, which is the “controlling class” of the bonds.
−Removed: We have consolidated the AOMT 2024-4 securitization on our consolidated balance sheet, maintaining the residential mortgage loans held in the securitization trust and the related financing obligation thereto on our consolidated balance sheets as of September 30, 2025.
−Removed: In March 2024, we and other affiliated entities participated in a securitization transaction of a pool of residential mortgage loans, approximately 60% of which were mortgage loans originated by our affiliated mortgage origination companies, secured primarily by first liens on one‑to‑four family residential properties.
−Removed: In the transaction, AOMT 2024-3 issued approximately $439.6 million in face value of bonds.
−Removed: Our proportionate share of 10.98% of the retained bonds and investments in MOAs was approximately $5.3 million, including a retained discount on issuance of approximately $1.6 million.
−Removed: We used the proceeds of the securitization transaction to repay outstanding debt of approximately $35.9 million and retained cash of $4.6 million, which was used for operational purposes.
−Removed: We derecognized the mortgage loans sold in AOMT 2024-3 and recorded investments in RMBS and majority-owned affiliates (which is located within “other assets” on our consolidated balance sheet) as of September 30, 2025.
−Removed: Notes Offerings
−Removed: The Company’s Senior Unsecured Notes consist of $42.5 million principal amount of our 2030 Notes and $50.0 million principal amount of our 2029 Notes.
+Added: We have consolidated the AOMT 2025-4 securitization on our consolidated balance sheet, maintaining the residential mortgage loans held in the securitization trust and the related financing obligation thereto on our consolidated balance sheets as of March 31, 2026.
+Added: Notes Offering
+Added: The Company’s Senior Unsecured Notes consist of $42.5 million principal amount of its 2030 Notes and $50.0 million principal amount of its 9.500% Senior Notes due July 2029 (the “2029 Notes” and, together with the 2030 Notes, the “Senior Unsecured Notes”).
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 $47.5 million.
−Removed: The below table provides a summary of the Senior Unsecured Notes as of September 30, 2025 ($ in thousands).
−Removed: Senior Unsecured Notes (1) Principal Amount
−Removed: Carrying Value Maturity Date (2)
+Added: The below table provides a summary of the Senior Unsecured Notes as of March 31, 2026 ($ in thousands).
+Added: Carrying Value
+Added: Senior Unsecured Notes (1)
+Added: Principal Amount March 31, 2026 December 31, 2025 Maturity Date (2)
Redemption Date (3)
1 unchanged sentence
July 2029 Senior Unsecured Notes 50,000 48,363 48,239 July 2029 July 2026 9.50 %
+Added: $ 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.
2 unchanged sentences
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.
−Removed: (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, beginning on September 1, 2025.
+Added: (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.
−Removed: 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.
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
+Added: 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.
+Added: March 31, 2026 March 31, 2025
Coupon interest expense $ 2,230 $ 1,187
1 unchanged sentence
Total interest expense $ 2,451 $ 1,312
−Removed: 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.
−Removed: At September 30, 2025 and September 30, 2024, the unamortized deferred debt issuance cost was $1.3 million and $0.9 million, respectively.
+Added: 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.
+Added: 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.
−Removed: On August 8, 2024, the Company entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) to sell shares of the Company’s common stock from time to time having an aggregate gross sales price of up to $75 million, through an “at the market” equity offering program (the “ATM Program”).
−Removed: 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 the ATM Program resulting in proceeds of $10.1 million and $12.3 million, respectively, net of commissions and fees.
+Added: Supplemental Guarantor Information
+Added: The Senior Unsecured Notes were issued in SEC-registered transactions under an effective registration statement.
+Added: 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.
+Added: Pursuant to Rule 3-10 of Regulation S-X, subsidiary guarantors of a parent company’s obligations are not required to provide separate financial statements, provided that the subsidiary obligor is consolidated into the parent company’s consolidated financial statements, the parent company issues the security and, subject to certain exceptions as set forth below, the alternative disclosure required by Rule 13-01 of Regulation S-X is provided, which includes narrative disclosure and summarized financial information.
+Added: Accordingly, separate consolidated financial statements of the Operating Partnership have not been presented.
+Added: Furthermore, as permitted under Rule 13-01(a)(4)(vi) of Regulation S-X, we have excluded the summarized financial information for the Operating Partnership because the assets, liabilities and results of operations of Angel Oak Mortgage REIT, Inc.
+Added: and the Operating Partnership are not materially different than the corresponding amounts in Angel Oak Mortgage REIT, Inc.’s consolidated financial statements, and management believes such summarized financial information would be repetitive and would not provide incremental value to investors.
+Added: On August 8, 2024, the Company entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) to sell shares of the Company’s common stock from time to time having an aggregate gross sales price of up to $75.0 million, of which $60.2 million remains available as of March 31, 2026, through an “at the market” equity offering program (the “ATM Program”).
+Added: During the year ended December 31, 2025, the Company issued and sold 1,277,812 shares of its common stock through its ATM Program resulting in proceeds of $12.3 million, net of commissions and fees.
These shares of common stock were issued in SEC registered transactions off the Company’s shelf registration statement.
−Removed: As of September 30, 2025, the Company had approximately $60.2 million of gross proceeds available for issuance under the ATM Program and Sales Agreement.
+Added: The Company did not issue any shares under the ATM Program during the quarter ended March 31, 2026.
Leverage and Hedging Strategies
1 unchanged sentence
Subject to maintaining our qualification as a REIT and maintaining our exclusion from regulation as an investment company under the Investment Company Act, we expect to utilize various derivative instruments and other hedging instruments to mitigate interest rate risk, credit risk and other risks.
−Removed: For example, we may enter into hedging transactions with respect to interest rate exposure on one or more of our
−Removed: assets or liabilities.
+Added: For example, we may enter into hedging transactions with respect to interest rate exposure on one or more of our assets or liabilities.
Any such hedging transactions could take a variety of forms, including the use of derivative instruments such as interest rate swap contracts, index swap contracts, interest rate cap or floor contracts, futures or forward contracts, and options.
1 unchanged sentence
Cash and cash equivalents
−Removed: Our cash balance as of September 30, 2025 was sufficient to meet our liquidity covenants under our financing facilities and the 2029 Notes and 2030 Notes.
+Added: Our cash balance as of March 31, 2026 was sufficient to meet our liquidity covenants under our financing facilities and the Senior Unsecured Notes.
We believe that we maintain sufficient cash to continue to meet margin calls on our financing facilities, should such margin calls occur.
−Removed: There was no margin collateral required as of September 30, 2025 or December 31,2024.
+Added: There was no margin collateral required as of March 31, 2026 or December 31, 2025.
We may also participate in upcoming securitizations either solely or with other Angel Oak entities.
1 unchanged sentence
Restricted Cash
−Removed: Restricted cash of approximately $1.8 million as of September 30, 2025 was comprised of:
+Added: Restricted cash of approximately $1.7 million as of March 31, 2026 was comprised of:
$0.5 million in interest rate futures margin collateral for the interest rate futures under our sole control;
4 unchanged sentences
Our counterparties did not require any margin collateral for TBAs as of December 31, 2025.
−Removed: Nine Months Ended
−Removed: September 30, 2025 September 30, 2024
+Added: Three Months Ended
+Added: March 31, 2026 March 31, 2025
(in thousands)
1 unchanged sentence
Cash flows provided by (used in) investing activities $ 403 $ (75,867)
−Removed: Cash flows provided by financing activities 344,107 110,575
−Removed: Net increase in cash and restricted cash $ 10,538 $ 235
−Removed: The cash used in operating activities of $354.5 million for the nine months ended September 30, 2025 as compared to the cash used in operating activities of $196.4 million for the nine months ended September 30, 2024 was primarily due to the volume of residential mortgage loans purchased during the first nine months of 2024, as compared to the first nine months of 2025.
−Removed: Cash flows provided by investing activities of $20.9 million for the nine months ended September 30, 2025 as compared to cash flows provided by investing activities of $86.0 million for the nine months ended September 30, 2024 were primarily due to the timing of purchases and maturities of U.S.
+Added: Cash flows provided by (used in)financing activities $ 141,672 $ 278,192
+Added: Net increase (decrease) in cash and restricted cash $ (1,640) $ 577
+Added: The cash used in operating activities of $143.7 million for the three months ended March 31, 2026 as compared to the cash used in operating activities of $201.7 million for the three months ended March 31, 2025 was primarily due to the volume of residential mortgage loans purchased during the first three months of 2026, as compared to the first three months of 2025.
+Added: Cash provided by investing activities of $0.4 million for the three months ended March 31, 2026 as compared to cash used by investing activities of $75.9 million for the three months ended March 31, 2025 were primarily due to the timing of purchases and maturities of U.S.
Treasury securities in the comparative period of 2025.
−Removed: Financing cash flows provided $344.1 million for the nine months ended September 30, 2025 as compared to $110.6 million in the nine months ended September 30, 2024 were primarily due to the activity within net borrowings under repurchase agreements and notes payable for the comparative periods.
+Added: Financing cash flows provided $141.7 million for the three months ended March 31, 2026 as compared to $278.2 million provided by financing activities for the three months ended March 31, 2025 were primarily due to the activity within net borrowings under repurchase agreements and notes payable during the first three months of 2026.
Cash Flows - Residential and Commercial Loan Classification
5 unchanged sentences
A discussion of critical accounting policies and estimates is included in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates” section in the Annual Report on Form 10-K.
−Removed: Our critical accounting policies and estimates have not materially
−Removed: changed since December 31, 2024.
+Added: Our critical accounting policies and estimates have not materially changed since December 31, 2025.
Management discusses the ongoing development and selection of these critical accounting policies and estimates with the Audit Committee of our Board of Directors.
7 unchanged sentences
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.